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GM shares too risky for own employees?

Posted Nov 26 2008, 10:33 AM by Kim Peterson
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General Motors shares are so risky that even its own employees are discouraged from buying them.

Workers have been blocked from buying GM shares through company 401(k) plans. The reason? GM's "financial difficulty," a spokeswoman told the Pensions & Investments newspaper.

GM wanted to register more shares of stock for 401(k) participants to buy. But the bank in charge of 401(k) plans refused to approve the move.

A spokeswoman said the bank must "focus exclusively on the best interests" of the 401(k) participants.

"It is almost too surreal for words," said CNBC analyst Paul Kedrosky. "Next up, I'm guessing, is that American Airlines employees won't be allowed to fly on AA planes -- too damn dangerous."

GM shares are up 17% today to $4.17, even though Goldman Sachs cut its auto sales outlook today.

Comments

 

Does anyone know where the import taxes have went from when all the imports came from overseas. Does anybody remember when union members would look at the BUILT IN AMERICA TAG? I remember not being able to sell a Toyota to a UAW member because they wasn't allowed to buy an import. So we let the imports come overseas and buy buildings to build vehicles just so they dont have to pay an import tax. Those taxes are part of government spending. Everyone says that the big three need to cut back. Great plan more unemployed people looking for jobs, collecting state and government money so we can all sit back and pay more taxes. Why isnt one of the other auto makers buying out the big 3. And take a big look at technologies that the big 3 have provided to the other manufacturers. 15 years ago a monroney label on a domestic vehicle would say assembled in America. Parts from mexico. People would still buy them. But if we move our plants to mexico or canada for cheaper labor people get mad for taking away American jobs unioned or non. Toyota gets praised in all these blogs because they moved into our country for cheaper labor and no taxes. What we truly need in America is to regain consumer confidence in true American products. Consumer confidence is going to be hard to regain if you look at all the negative media in this nation. Just look at all the negatives in the blogs daily!

The company's need to get cost under control! The Big three with the help from the government need to CRUSH THE UNION and run there own company's. For too long the union has ran the company's and bled them dry. Pay the bolt installers what there worth, make them pay for a majority of there health care just like the rest of the HARD WORKING AMERICAN"S. I moved to Detroit 4 years ago and was shocked to see the attude here. The SILVER SPOON, EVERY BODY OWES ME AND I OWE NOBODY!!!!!!!  Needless to say I will be leaving Detroit it is a VERY twisted place.

I know there are many unhappy people out there who think we either should help U.S Auto makers or let them fall?  But how many of these critics were out there actually buying domestic or foreign?  We as a whole determine what they are going to produce by what is in demand!  And I am sure most of you bought foreign cars that are fuel efficient.  However a lot of people were buying GAS GUZZELING vehicles.  That is what the market called for! Right?  These auto makers therefore produced what the PEOPLE wanted and were buying.  There were too many of the PEOPLE buying inefficient vehicles at the time but showing to the US automakers that is where the bling is!  As for the Unions these people have been blessed with being in an industry that has been in the  USA for a long time.  They were only watching out for themselves.  Which is good because CORPORATE AMERICA is not going too!  Most of the comments  I have heard sound like JEALOUS kids from across the tracks!  Lets make the auto industry sound again so we can have a blue collar worker make a living!  HAVE YOU PRODUCED A WHITE  COLLAR CHILD?  We are a country that needs many INDUSTRIES to survive and and prosper!  Think about you, your neighbor, the state next door, the state across the Country, the kid in Somalia, the parent in Iran, the young adult in Iraq, the alienated Muslim in Indonesia?  Have you done your part?  Are you thankful on this Thanksgiving for everything you have at your disposal?  Probably not!  Either am I!  But at least I know I am ungrateful!

i work hard  to  get where i  am  why do i have to  bail out someone who makes 3 times what i do. drop the unions and make a normal wage

The U.S. was first hit by oil(made zillions), next home loans(hoped to make zillions). These 2 factors brought a nation to its knees.Quit the blame game and get to the facts.WE THE PEOPLE must not point fingers at each other. The BIG 3 is not the problem, Joe the plumber is not the problem. Government , Big oil and money hungry executives THATS THE PROBLEM!!!!!!!!( Oh and Insurance Companies)

Well I guess you could crush the unions and work at McDonald's for the rest of your life and see what you have to retire on.The unions have and are giving up wage cuts and benefit cuts.The main reason GM is in this mess today along with Ford is mnagement.They just kept making the wrong kind of cars.If you work for the goverement or state I don't hear anybody complaing about their pension  or benefits.

HEY!! JDOE

YOU MUST BE ONE OF THOSE KIND!!

I CAN TELL YOU HAVE ONE!!!!

hmmm lets see anyone remember the bailout of chrysler 79=80  i bought there stocks for pennys sold for a few hundred thousand. now bought gm at about 1.75 already up 180000  bucks lol remember who makes the hummer hmmm and dont these get used in wars hmm the markets a gamble folks buy low sell hgh gm will survive just as the banks did and there stock will go i say above 60 will see.  

Well I think that the Fed's should just let GM shut down & maybe someone else would buy them up and run the company the right way.

So whats the problem ?

Here we are throwing stones, conplaining of others imperfections in writing. For all we know HE may be fluent in 9 languages.

Seems we want to blame others for lifes imperfections, rather than to look in the mirror

Twits !?X

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