In what must be one of the the most monumentally bad investments in history, the American taxpayers are now the majority owners of General Motors (GM), which presently has a market capitalization of around $480 million. The cost? We bought our 70% stake in GM for a paltry $50 billion. When I last checked, shares of GM were selling at 64 cents each, and GM (now nicknamed “Government Motors”) has filed for bankruptcy protection. I suppose that they’ll tell us that we can “make up for it, on volume.” Not wanting to miss out on a piece of the action in the deal of the Century, “the Canadian and Ontario governments are putting in $9.5 billion for a 12.5% stake.”
Reader HPD mentioned Mish Shedlock’s most recent missive (or should I say “Mishive’?): More Prime Foreclosures; More Re-Defaults
Also from HPD comes this Wall Street Journal piece: Black Swan Fund Makes a Big Bet on Inflation
Fred The Valmetmeister recommended Chris Laird’s latest commentary on the commodities markets posted at the Kitco site.
L.L. sent this: Geithner tells China its dollar assets are safe. L.L.’s comment: “Yes, perhaps they’ll get their money back, but will the dollar be worth anything in five or ten years?”
Also from GG: Elliott Wave Guru Sees Dark Days Ahead
From Florida Guy, a New York Times article: Industry Fears Americans May Quit New Car Habit