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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Diamonds and Dogs

US Government Gets Paid Back

US Government Gets Paid Back

This week the big news was the IPO of the "new" GM which became the largest IPO in history as it was priced after the close on the 17th. "Old" GM shareholders and bondholders can be allowed to be disgusted by this turn of events and fanfare. With disregard to business law, the government and unions were put ahead of bondholders as they were the preferred benefactors of the ultimate bankruptcy and re-issued shares of this old line company. With shades of Russia, ownership was taken from some and given to those in political power. As the administration talked about the success of the offering, we can't forget that unlike any other bankruptcy, $48 billion in loss carryovers will be honored by the government. What this means to shareholders is that the "new" GM has been scrubbed clean of debts and has losses to buffer any taxes in the years ahead. The stock is a buy for that reason. For those with a conscience, well that is a different story.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.