November 22, 2013 Leave a comment
Our government plans to exit the private-equity position it has taken in GM (using taxpayer money) at a $10 billion loss. Oh, well. Seemed like a good trade at a time! They can’t all be winners.
Now, I’m sure there are those who will argue that the trade was a winner in some larger, macro sense. I await their valuation models so that I may validate them. I’m sure they’re not just waving their hands, I’m sure there are hard numbers behind such a conclusion.
But meanwhile, don’t you dare think about the Smart People position on this GM bailout (=directly buying equity in a private company using taxpayer money), and about their ‘Volcker Rule’ attitude that banks must be prevented from ‘prop trading’ because we totally care about putting taxpayer money at risk, simultaneously. Seriously, please don’t, I wouldn’t want you to hurt your head.