Does Market Capitalization Even Matter?
How in the world is it possible for a company (General Motors) that the market has valued at less than $3 billion (which is shockingly low, historically) -- is asking for approximately a third of a $25 billion handout from the government?
I know these two things aren't equal, but if I'm paying 300% of the value of a company as a "loan," I'm basically buying the company and then some.
As they say, I'm just sayin.
Heh. The company that built our house posted losses this quarter -- this quarter, mind you -- of twelve bucks a share. Said shares are trading for a buck and a half. And said company is responsible for plowing our street for the next five years. I will now go and sacrifice a pound of ground pork to the meatloaf gods.
ReplyDeleteIndeed, the best thing for the feds to do is let the car companies fail, spend a lot of money to hire Japanese car company execs, step in with the new guys and takeover the Big 3. Let them renogotiate EVERYTHING, I mean from suppliers, partners, vendors, and the unions. And go from there.
ReplyDeleteThat, of course, is the best thing for the feds to do. Being that the feds are the feds, however, expect some horribly ineffective "solution" that will leave most of us with less money and aching hind ends.
Totally agree with Sweeper.
ReplyDeleteLet's change this shit up yo!