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Sounds great, GM is finally off the government dime, we can go about our business. But sadly, this is not the case.
After tomorrow, the government will still own 33 percent of the company. Taxpayers have yet to be paid back for bailing out the auto giant, yet the company is dancing for joy as they set up for their re-launch into the public trading market and the $13.6 billion the government will make, won't be turned around in check form and sent to taxpayers, nor will taxpayers be given stock in the company.
The initial bailout cost $50 billion, GM has only paid back $9.5 billion.
Here's the message: YOU STILL OWE US.
From AP:
Most of the new stock will go to institutional investors, not to everyday investors, following a Wall Street system that rewards investment banks' big customers. GM will set aside 5 percent of its new stock for employees, retirees and car dealers to buy at the offering price.
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