This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How GM Proves the Tea Party Wrong

GM/Tea Party story updated with more information on the government's shares.

DETROIT (TheStreet) -- What could have happened is that today, General Motors would be in the 15th month of its bankruptcy, no end in sight, with consumers shying away from its products and tens of thousands of automobile industry workers either laid off or despairing for their futures.

Instead we have an IPO that is the talk of Wall Street, loans being repaid with stock sale proceeds, an auto company that makes money at the bottom of a cycle and new products that are widely applauded.

GM

So it's a simple call. The Tea Party and its predecessors, who eschewed federal loans to GM, simply got it wrong, failing to perceive that a "bailout" can just as easily be called an "investment."

What we have is not perfect, but it's far better than what might have been.

It's not hard to find critics, though. One is Texas governor Rick Perry, elected this month to a third term, who said in a recent interview with Newsweek that the Troubled Asset Relief Program, used to fund GM, was a mistake.

"I think you allow the market to work its way through it," Perry said. "The idea that we own an automobile company today is staggering in its proportions." When his interviewer suggested that TARP saved jobs and the banking system, Perry responded: "I don't necessarily buy into the premise that somehow or another, those measures saved jobs."

His predecessor, the one who actually had to make a decision on this question, saw it differently. In his new book "Decision Points," former President George Bush writes that he decided to save GM and Chrysler because he "had to safeguard American workers and families," according to The Detroit News.

Bush said he wanted to avoid the massive economic impact of a collapse of the auto industry and did not want to saddle President-elect Barack Obama with a "mess," the newspaper reported.

In December 2008, Bush agreed to a $17.4 billion bailout for the two companies using TARP.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs