You already lost most of your GM share value, due to the global contraction etc. Why don't you sell all your GM stock tomorrow, and preserve the remaining capital? If you do, you will not lose wealth due to a GM bankruptcy. You're not, are you. That's because like every other common stock investor, you're willing to take a risk that the stock will gain someday. Or... it might be zero. That's the way stocks are... and that's why some people invest in gold instead.

 

You are missing my point completely. The point here is that I'm a regular guy. A regular guy, who just like tens of thousands of other regular guys, invested in an auto company. I'm not a large, faceless, Wall street brokerage firm - but I may have used a broker to buy GM stocks and bonds.
Thousands or tens of thousands of regular guys like me, will take a cumulative several billion dollar hit one way or the other. So when Josh or BHO or anyone else, tries to frame this simply as a rich, greedy bank or brokerage firm vs the UAW, that's just plain wrong. There are LOTS of people with skin in this game - not just "Wall street" (which really is all of us) and the UAW.


This morning, GM's creditors offered to exchange their debt for GM stock - $27 billion worth. I sort of think that to be a good idea -- you know ---actually have business people familiar with making money being an influence on the other shareholders who are clueless on making money, namely the government and union. And maybe if all get a fair shake, when it's time to sell these shares publicly, institutions won't be afraid to buy them.

 

I understand the face of your claim (that regular folk lose out too). But it's the logic underpinning it that I differ with. EVERY shareholder is free at any time to sell. Thus, NO shareholders are required to lose wealth upon a GM CH 11 event. It's totally their choice. And if they stay in, well too bad - they knew the risks.

 

Charlie I never said the "you and i's" are the ones to blame. I, too happen to be a GM shareholder, I also happen to be a Union supporter. The major shareholders botched this and it was a small group that did.

I support the equity offer put on the table today because it keeps the White House out of GM. But I also support the UAW having a hand in how GM is ran and contrary to your belief, the UAW does know how to generate a profit. Their "war chest" is worth nearly a Billion, or at least was a few years ago.

 

There are some good and fair points made in this thread, so I'm not going to delete it. However, it was made political from the get-go and there's no way to clean it up. It ends here.

If anyone wants to start another thread to discuss the pros and cons of unions, feel free. Keep the parties, politics, and politicians out and I'll let it continue.