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has GM's stock dropped as result of the Cobalt?
When the Treasury Department sold all it's GM stock in December I thought it was strange they would take that big of a haircut instead of waiting and selling it for more...This Cobalt recall thing is getting to be a HUGE deal...Was it insider trading? The Justice Department would have had to know this recall lawsuit was coming....
has GM's stock dropped as result of the Cobalt?
CC's spidey-sense: tingling continuously since January 21, 2009.
Yup. Probably short term tho.
http://buzz.money.cnn.com/2014/04/01/gm-stock-oversold/
the more elegant hypothesis is that the Obama Administration wanted to get shed of the appearance that it was controlling, propping up or otherwise nationalizing GM.
which appearance, naturally, caused CC's spidey sense to tingle.
Mock me if you want but I thought it was interesting timing, especially taking a 10 Billion plus loss.
as TB points out, GM's fundamentals appear to be solid. may be in the tank now, but unlikely to remain there. had the government held on to GM stock longer and made money you'd find something to criticize about that too.
Actually I wouldn't have WH. The fundamentals were solid in December when they lost 10 Billion, too. I thought they sold too soon.
fair enough
if GM stock is still a good bet, that undercuts your hypothesis. the likely effect of the recall on GM stock is a temporary dip.
My hypothesis was that it was a political decision to dump the stock at a loss and distance themselves from GM before the hit the fan.
ah, here it is: http://www.spurstalk.com/forums/show...=1#post4749266
your estimate of damage to the brand is highly speculative, given the small number of people injured/killed, GM's cash in hand and demand in growing markets.
I was talking political damage, not financial damage. Why else dump the stock in December?
what political damage? if the government was helping GM hide the ball they hardly stood to minimize the fallout by selling off when they did.
hard to imagine that the USG was quaking in its boots over a dip in the stock price when it was willing to take such a big loss in the first place.
"President Obama...as the largest stockholder in GM what do you plan to do about these poor peoples deaths and the management malfeasance at GM?"
Quit quibbling about the money WH. They clearly don't give a about the money.
a very plausible question. a skilled politician might turn it to his advantage, ride in on a white horse to get to the bottom of GM's management problems and pressure it to settle fairly with claimants ... though, that would be fraught with political problems too."President Obama...as the largest stockholder in GM what do you plan to do about these poor peoples deaths and the management malfeasance at GM?"
self-regulation NEVER works, as we see YET AGAIN with GM killing people.
Fear of govt regulation, enforcement, and stiff penalties do work to make the regulated act responsibly.
Toyota to Recall 6.4 Million Vehicles
http://mobile.nytimes.com/2014/04/10...?from=homepage
Repugs prefer corporate/capitalist profits and their own self-enrichment (contributions) over dead, maimed people and a screwed up environment over regulations.
How's that non-regulation and hatin on govt workin out for ya, West TX?
has it become fashionable to taunt West, TX in Left-Blogostan, or is that an idiosyncracy?
no taunting, just reminding willful forgetters and hate/kill govt anti-regulators what no effective regulation and a cowboy culture of (no) safety has done, and will do.
http://www.spurstalk.com/forums/show...=1#post7169583
boutons is picky about he graves he dances on. The redder the better. After all they're only "a bunch of ing farmers and ranchers".
yeah, the low wage, low info rural Rugged Individualists who don't need no steenkin govt, don't no steenkin regulations. Let's pop a beer and blow the place up.
Thx for making my point
slapping the wrist:
http://america.aljazeera.com/article...on-recall.htmlGeneral Motors is being fined $7,000 a day for missing an April 3 deadline to provide information about itsrecall of 2.6 million cars for defective ignition switches, the National Highway Traffic Safety Administration said on Tuesday.
In a letter to GM, NHTSA said the automaker had been fined $28,000 so far and would be subject to daily fines until it answers all 107 questions the agency asked in its investigation.
The agency is probing why the automaker waited until February to order a recall despite first learning of the defect more than 10 years ago.
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