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Now THIS is how you bail out GM
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12-04-2008, 10:01 PM
lafinfil wrote: I can't believe we are arguing about a $25 billion bail out and you are hung up on postage. If you don't like it just say it. Since I have not heard a single worthy argument against this proposal (posting pictures of meat does not count)I consider case closed. Stock certificates will go out tomorrow.
12-04-2008, 10:21 PM
How many million do you think it will take to send out all those certificates? Given that they usually do not do that anymore, most issuers of stock certificates charge a fee of $15-25 or more and do not make money on it. For the government in the kind of volume you are talking about they may discount it a bit. You are talking about sending out 100 million or more certificates. They have to be registered to keep track of ownership as well. That is more cost. Then every time a stockholder vote comes up, each holder needs to be notified. More cost. It is not just the cost of postage, but even that is supposed to be higher due to the requirement of using Registered Mail to track them and their delivery.
12-04-2008, 10:22 PM
And I haven't heard a single worthy argument for it - just your opinion
What is the cost to set up and administer the program ? (printing, accounting , letter to tell me that it's coming etc ... ? Will I be taxed on it ? What if I don't want it - am I forced to take it ? How soon can I cash it in ? What is the value if the market is flooded with GM stock ? If the government no longer holds the stock as a block as a major shareholder how to they maintain financial control ? Need a few more facts if you are serious about this being a solution.
12-04-2008, 10:23 PM
If the government buys the stock on the open market, the stock price will spike and continue to rise as the government tries to scoop up the shares. If the government requires the issue of new shares, it will severely dilute and devalue the existing issues. Both sound bad to me.
12-04-2008, 10:34 PM
How about the cost of setting up brokerage accounts for a bunch of people who don't have accounts? Will I be charged a maintenance fee? What if I want nothing to do with GM stock?
I think this is one of those ideas that sounds OK till you start thinking about the details.
12-04-2008, 11:01 PM
Dakota wrote: I can't believe we are arguing about a $25 billion bail out and you are hung up on postage. If you don't like it just say it. Since I have not heard a single worthy argument against this proposal (posting pictures of meat does not count)I consider case closed. Stock certificates will go out tomorrow. We've given plenty of reasons against. You, on the other hand, have offered nothing except your opinion that this idea is "brilliant" with absolutely no explanation of what, exactly, makes it brilliant. It's hilarious that you want people to give you detailed explanations when all you've posted has been complaints that people aren't acting the way you wish they would.
12-04-2008, 11:01 PM
"I think this is one of those ideas that sounds OK till you start thinking about the details."
You mean "half-baked?"
12-04-2008, 11:34 PM
Dennis S wrote: All of this talk about steak and potatoes ! I'm hungry!
12-05-2008, 01:46 AM
Listen guys. I don't claim to know how to administer the program. That is for the bureaucrats. The same ones who can find you and audit you or mail out millions of refund, stimulus and social security checks can find a way to do this too. Why does it have to be any harder than buying stocks online and then getting reimbursed somehow? You think this is a crazy idea. There is a bill in congress to use $300 billion in bail out money to pay for every dime you pay in taxes for 6 months, including payroll tax.
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