General Motors Corp.
I had the pleasure of traveling with 45 friends and acquaintenances this past weekend to watch the Milwaukee Brewers play two games at Miller Park. Fun was had by all and the home team won both games. The only negative aspect of the annual excursion is when my alarm clock goes off on Monday morning. My body tells me I am not 22 years young, but rather 44 years old.
In my slightly groggy state this past Monday, I was not surprised at the news reminding me that I am now a part-owner of General Motors Corp
. I never thought I could own part of a car company, let alone an American icon. I tried to be excited by the revelation, but my headache never subsided. As a result, I thought it may be in my best interest to learn more about my new business venture as the week progressed.
I came to the early conclusion that President Obama and his staff of deep thinkers probably had no choice but to take a 60 percent ownership of GM
(now known as the Old GM) as the company explores its options while under protection from the bankruptcy code. However, like many of my individual stock picks over the past two years, I am coming to the realization that this investment in the New GM (or whatever name it acquires) will not be a break-even deal for a long time.
Although the Obama Administration tells us that we will be out of the automobile industry soon, I found out that taxpayers may spend as much as $60 billion before this whole mess gets some better definition. Consequently, the New GM will have to be worth about $100 billion so that the government's investment gives us a chance to break even. I can't see how my personal investment will pay any dividends. Keep in mind, the federal government's bailout of Chrysler in 1980 only cost taxpayers $1.5 billion, but technically, the government came out on the positive side of that bold move.
Twenty years ago, when I could withstand obstacles that now impede my ability to be at my professional best, I was not concerned about how the Black Monday stock crash would affect my non-existent portfolio or wonder whether I could find a stable job. In fact, as bad as things were in 1987, I don't remember anyone bailing out me or any other business.
Let's hope this plan works, since I really do not want it to be another 20 years from now that I finally have a chance to celebrate an investment I really never wanted to make in the first place.