| The U.S. government is taking advantage of the recent run-up in General Motors stock to sell off 30 million more shares in the auto giant that it acquired in a bailout. (David Goldman / Associated Press / January 10, 2013) |
On June 5, 2013, Jerry Hirsch writes in the Los Angeles Times:
The U.S. Treasury said it plans to sell 30 million additional shares of General Motors Co. stock that it acquired as part of the 2009 bailout of the automaker.
The stock will be sold later this month in a public offering in conjunction with GM’s inclusion to the S&P 500 index effective as of the close of trading on Thursday.
The automaker has been profitable since its bailout and restructuring and earlier this week,Standard & Poor’s said it would include GM in its index, which is an important investment tool. The move is seen as supporting GM’s share price, because investment funds that follow the index will now be buying the automaker’s stock.
Oh, the shame of government economist who will enrich those who have “past savings” and are in a position to “invest” with their savings to purchase stock issues of GM.
Instead the government economists should insist that an Employee Stock Ownership Plan (ESOP) trust be established so that the employees of GM can purchase this stock, representing productive capital assets of the company, and pay for their acquisition out of the full pre-tax earnings of the respective company assets without having to devalue their labor wages and salaries or use “savings,” which, for the most part they do not have because they need every dollar they earn to support their livelihood and their families.
See http://www.cesj.org/homestead/creditvehicles/cha-esop.htm.
http://www.latimes.com/business/autos/la-fi-hy-treasury-sells-gm-stock-20130605,0,6943394.story
