Digitalics

Rent to Own

Today’s Wall Street Journal reports on GM offering a majority stake to the U.S. Government.   Taxpayers will own a bit of Chrysler as well, although the United Auto Workers will get the lion’s share.

Of course, the government also now has stakes in many of the large banks, e.g. Citigroup (NYSE: C) and Bank of America (NYSE: BAC).   Not to mention AIG (NYSE: AIG).   Or Fannie and Freddie (NYSE: FNM, FRE).  Who’s next, I wonder?  What company or industry in dire straits will turn to the government for aid, in return for preferred stock or something similar?

Somehow I don’t think this is what they meant by the “Ownership Society.”

Disclosure: I hold no position, either long or short, in any stocks mentioned here.

April 28, 2009 at 2:04 pm 3 comments