Good morning, the market has responded positively to the new General Motors Initial Public Offering (IPO). Originally the price talk was $26 to $29 and was boosted on 11/16 to $32 - $33. It is currently trading at $35.22.
This better than expected trading range means that the Obama administration decision to intervene and save GM not only prevented a deeper U.S. economic recession, it also happened in a way that allowed the bankruptcy to be quick and effective.
As The Economist puts it:
“An apology is due to Barack Obama: his takeover of GM could have gone horribly wrong, but it has not…Saving GM was a harder call, but, with the benefit of hindsight, the right one. The lesson for governments is that for a bail-out to work, it must be brutal and temporary. The lesson for American voters is that their president, for all his flaws, has no desire to own the commanding heights of industry.”
More information of today’s economic releases below (see previous post).
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