General Motors Is Headed For Bankruptcy -- Again - Forbes

General Motors Is Headed For Bankruptcy -- Again - Forbes ;..  Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company.  It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday.  This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.

Leadership, Not Another Bailout, Will Fix GM (And No, It Is Not Going Bankrupt)Joann MullerForbes Staff

For GM, Bankruptcy Talk Is Its Own FaultMicheline MaynardContributor

Chicken Little's Second GM Bankruptcy: The Gold Medal For Silly Op-Ed PiecesBob LutzContributor

Play That Tax Hike Music, Euro BoyLouis WoodhillContributor

Right now, the government’s GM stock is worth about 39% less than it was on November 17, 2010, when the company went public at $33.00/share.  However, during the intervening time, the Dow Jones Industrial Average has risen by almost 20%, so GM shares have lost 49% of their value relative to the Dow.

It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling.  It would be too embarrassing politically.  Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.