In a time not so long ago, the U.S. government bailed out one of the world's largest automakers, General Motors. It was a considerably controversial move and it definitely raised eyebrows internationally. One question remained in the eyes of the U.S. taxpayer -- How LONG would we be stuck helping this ailing company?
Well, it appears sooner than you may have thought.
GM is planning to buyback 200 million shares before the end of the year. This will leave the government with 300 million shares that will be released in the equity market.
That said, this could leave GM stock in a pretty vulnerable spot. If you played your cards right and snapped some equity up in the summer time you would definitely be in the money; however, if you've been holding on since the IPO you'd still lose your shirt.
What say YOU, Spies?
Is NOW the right time to take some profits?
The federal government, fresh from exiting AIG, said Wednesday that perhaps as early as next month, it sell off its remaining stake in General Motors Co., wrapping up another chapter of the Bailout Era...
...What was never clear, however, was how much of this the government could recoup from GM, and how much would fall on the backs of taxpayers. The rough calculation, given GM's current share price, is that taxpayers are on the hook for about $12.6 billion....
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