Thursday, November 18, 2010

Leap Put Options - BUY BUY BUY

Obama gets to play Capitalist today as GM goes public. Again.

This is a fraud, and if we had any $$ we'd be buying so many put options the SEC would start an investigation.

Let's review:

Obama nationalizes GM. "It is too big to fail."

Obama forces TARP on healthy banks. This provides him the ability to dictate bank behavior.

GM goes private. Some accounting issues. "Nothing to see here."

The Unions take over. A puppet is appointed CEO and lasts a year or so. He said: "I don't know anything about cars."

The puppet says GM paid back its debt to the US government. Neglects to clarify that the debt paid was for a Bush-era loan, not the bailout balance of tens of billions.

Obama does cash for clunkers. Another spending program intended to spike GM sales. Buyers choose Toyota instead.

The puppet unveils the Volt - a reverse hybrid POS that runs on electric, then switches to a gas engine. The only buyers of the Volt are - wait for it - the US government.

Obama grants GM a $45 billion tax break one month before the GM IPO. Purpose - this was the only way GM could post profits after going public.

Obama uses his power over the banks to fund today's IPO.

Oh ya - those accounting issues are still open at GM.

This is make believe. Obama is a make-believe capitalist, GM is a make-believe car company, and GM stock is a make-believe investment.

UPDATE 11.19 John Lott has an article on the GM IPO:

Only the government would consider it a success to buy stock at $43.84 a share and sell it at $33. -- But President Obama and those who supported his bailout of General Motors and Chrysler are claiming just that today.

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