{"id":13595,"date":"2010-11-11T11:12:53","date_gmt":"2010-11-11T18:12:53","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=13595"},"modified":"2010-11-11T11:12:53","modified_gmt":"2010-11-11T18:12:53","slug":"new-math-or-an-old-game","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13595\/new-math-or-an-old-game\/","title":{"rendered":"New Math… or An Old Game?"},"content":{"rendered":"

General Motors is preparing a public stock offering…\u00a0you know, because it’s primarily owned by the government and unions\u00a0right now.\u00a0\u00a0\u00a0 The sale is expected to raise $10.6 billion, most of which is\u00a0going to\u00a0the government\u00a0against the $50 billion bailout last year.\u00a0 Since government<\/em> is literally\u00a0us<\/em> (I mean, the $50 billion didn’t come from some savings account the Fed has\u00a0from working nights and weekends as a pizza delivery boy, right?), that means we<\/em> are selling an asset we<\/em> purchased with bail out money… back to ourselves<\/em>… and then putting the money we took from our left pocket into our right and claiming to have paid ourselves<\/em> back.\u00a0\u00a0Not sure, but I think there’s a nice big dollop of irony in there somewhere.\u00a0<\/p>\n

This is all well and good so far as socialist, potato-passing goes.\u00a0 I’m sure I’m not alone when I say that, while I don’t speak<\/em> political gobbley-gook, I understand it just fine.<\/p>\n

What bothers me here is the math.\u00a0\u00a0 The plan is to sell about 365 million shares at between $26 and $29 each, raising an estimated $10.6 billion.\u00a0 This will value the company at around $48 billion which, surprise, surprise, is Ford’s capitalization.\u00a0 As a matter of fact, if the shares sell near the high end of the range, GM’s capitalization will be closer to $60 billion – which means bigger and, ostensibly,\u00a0better than Ford.\u00a0 (Side note: Ford saw the problems ahead of time, made the difficult choices, accepted no public welfare, didn’t forever alter the bond market and our basic understanding of risk\/reward investing, came through the worst economic times the auto industry had ever seen and recently reported record profits… but they’re market capitalization is the same as or less<\/em> than GM’s? I suppose that’s the price you pay for actually thinking the rules of the market place should apply to everyone equally.\u00a0 Makes one wonder though, how happy Ford’s stock holders would be – and how much money they might be spending right now\u00a0– if Ford’s efforts had been properly rewarded in the free market and they were not in competition with the US Government.)<\/p>\n

Back to the math.\u00a0 Most of this\u00a0($10 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

General Motors is preparing a public stock offering…\u00a0you know, because it’s primarily owned by the government and unions\u00a0right now.\u00a0\u00a0\u00a0 The sale is expected to raise $10.6 billion, most of which is\u00a0going to\u00a0the government\u00a0against the $50 billion bailout last year.\u00a0 Since government is literally\u00a0us (I mean, the $50 billion didn’t come from some savings account the […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[251],"tags":[],"class_list":{"0":"post-13595","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":13762,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13762\/when-the-grasshoppers-vote-to-enslave-the-ants-the-ants-vote-with-their-feet-i-opt-out-of-california\/","url_meta":{"origin":13595,"position":0},"title":"When the grasshoppers vote to enslave the ants, the ants vote with their feet: “I opt-out of California.”","author":"Greg Swann","date":"December 7, 2010","format":false,"excerpt":"From newgeography.com:So, in protest to the insensitive indulgent big-spenders that run Sacramento, I say, \u201cDon\u2019t touch my junk!!!\u201d My beautiful California home is now on the market for $2,000,000. My next home will be in a no state income tax state like Texas or Nevada. I will not buy that\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3648,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3648\/mortgage-market-week-in-review-4\/","url_meta":{"origin":13595,"position":1},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"August 1, 2008","format":false,"excerpt":"Is it just me, or do Fridays keep coming around faster and faster? Maybe it\u2019s because I\u2019m so young! Any way, it\u2019s time for our \u201cMortgage Market Week in Review.\u201d We\u2019re going to focus on a couple of main topics for today: Jobs - the ADP report came out on\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6950,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6950\/the-bad-news-obamas-housing-relief-plan-is-a-giveaway-to-lenders-not-homeowners-the-worse-news-it-wont-work-anyway\/","url_meta":{"origin":13595,"position":2},"title":"The bad news: Obama’s housing relief plan is a giveaway to lenders, not homeowners. 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To the\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11317,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11317\/the-only-thing-we-have-to-fear-is-ourselves\/","url_meta":{"origin":13595,"position":3},"title":"The Only Thing We Have to Fear, is Ourselves","author":"Sean Purcell","date":"February 16, 2010","format":false,"excerpt":"In the field of real estate, your beliefs about yourself are just as important to your ultimate success as your knowledge and expertise. Listen to that little voice and face your fears. Not only will this open the door to a flourishing career, it will lead to a greater understanding\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10279,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10279\/the-1-obstacle-in-real-estate\/","url_meta":{"origin":13595,"position":4},"title":"The #1 Obstacle in Real Estate","author":"Sean Purcell","date":"November 12, 2009","format":false,"excerpt":"Would you like to know what the #1 obstacle is to achieving success in the real estate profession?\u00a0 If you did know, would you create a marketing campaign around it and start knocking the ball out of the park?\u00a0 I love marketing campaigns.\u00a0 I love creating them and prodding them\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13113,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13113\/a-kinder-gentler-jeff-brown-challenge-catch-yourself-doing-something-worthwhile-for-every-day-in-september\/","url_meta":{"origin":13595,"position":5},"title":"A kinder, gentler Jeff Brown challenge: Catch yourself doing something worthwhile — for every day in September.","author":"Greg Swann","date":"August 31, 2010","format":false,"excerpt":"It's hard not to love Jeff Brown's prospecting challenge. But it's kind of easy to note that most of us have not raised our hands to submit ourselves to its arduous benefits. It goes for me, too: If I have six hours to spare on any given day, I'm going\u2026","rel":"","context":"In "Egoism in Action"","block_context":{"text":"Egoism in Action","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/egoism-in-action\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=13595"}],"version-history":[{"count":4,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13595\/revisions"}],"predecessor-version":[{"id":13599,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/13595\/revisions\/13599"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=13595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=13595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=13595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}