Government to Sell GM Shares at a Loss's
The federal government invested in GM in order to save the corporate giant from collapse under it's own debt. GM had been allowed to go bankrupt without actually going to bankruptcy court. In the deal the USA purchased shares of GM stock in order to infuse cash into the debt ridden enterprise.
President Obama's reelection campaign often used the following phrase to indicate how wonderful his administration had been: "GM is Back, Osama bin Laden is Dead".
So now we know that trade, saving GM and killing OBL cost $8.5B. That is how much we lost in the GM venture. We'll soon enough learn if GM can continue on it's own.
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