This morning, I will provide a simple lesson about why Socialists, Marxists, or Statists should not be trusted with your money at any time.
Before bankruptcy, there were 610 million shares of outstanding GM stock. The stock was trading at about a dollar a share, meaning GM had a total market value of about 610 Million Dollars. Even arguing the sum of all its parts exceeded the market value of the corporation, GM could not possibly be worth more than 2 Billion, and that is being very, very generous.
Yesterday, B. Hussein Obama agreed to purchase only a 70% stake in a corporation for $50 Billion. In what economic universe was this even arguably a rational deal for taxpayers?
This purchase is intellectually defensible only in two situations:
1. Because a Statist wishes to place a large corporation under government control; and/or
2. Because it is a political payoff to the UAW from the UAW's candidate of choice.
Under what concept of governance is this Administration operating? These actions are completely foreign to the written compacts establishing the United States. The United States are being torn asunder by current government right before our eyes.
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This is why governments should not "own" businesses. There is no need to evaluate the value of what you are purchasing because you are not beholden to anyone for value, you do not have to work within a capitol limit, or maintain cash flow. It’s all monopoly money to these guys. Actually its worse than that, because even in Monopoly you can’t just print more money.
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