MICKEY KAUS: If Facebook’s a scandal, what about GM?
Facebook’s IPO launched at $38 a share, and the stock is now trading at $32, and the company and its bankers stand accused of having “hyped up” the stock.** There are lawsuits and hearings.
GM’s post-bailout IPO launched at $33 a share, and the stock is now trading at $22, after being repeatedly touted by the highest officials of the U.S. government. Yet the
suckersinvestors who bought it aren’t having a cow.
It’s different when the government bilks you.
UPDATE: Lanny Davis: Cory Booker Got It Right.
Private equity firms often invest in distressed companies by putting in cash and cutting expenses in order to save a company that is already close to bankruptcy. Sometimes the investment works and the company and jobs are saved. And sometimes, to save the company, jobs need to be cut or wages and benefits reduced.
Does that sound familiar? It should. It’s called the General Motors bailout, widely touted by President Obama and Democrats as a success story.
Hmm. This defense is almost making me change my mind. Lanny, you sneaky bastard . . . .