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Economics and Investing:
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?"
From GG: A Pessimistic Assessment, Especially for Europe; Commentary from
Niall Ferguson, Transatlantic Author and Academic
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
