You the U.S. taxpayer lent General Motors a whole lot of cash a few years back. Well, maybe not you in particular since only about 50% of us pay federal income taxes, but half of you lent that American automaker some pretty heavy funds not too long ago. Wouldn’t you like it back? I know this writer sure would.
What’s Needed: $53 Per Share
But, there is a chance we just won’t be repaid. For us to break even on our loan to GM, the car company’s stock price has to hit 53 bucks a share. And, unfortunately, it just fell to $19. Since January 2011, GM’s stock price has plunged more than 52% to lose more than $30 billion in market capitalization. It is now worth less than what it has lost in the past 18 months.
The Asset Relief Program’s special inspector general has recently said GM still owes U.S. taxpayers close to $27 billion, or $2 billion less than what the company in total is worth.