Cramer Likes GM
NEW YORK ( TheStreet) -- Debra Borchardt: Well, we can't call them "government motors" anymore can we? So Jim, they're buying back a lot of stock from the Treasury. The Treasury also said whatever they got left that GM (GM) isn't buying, they're putting out on the market. They're getting out of the auto stock business, but it's at a big loss to the tax payer and not such a bad price for General Motors.
Jim Cramer: Well look, Tim Massad is in charge of the TARP disposal program, has done a remarkable job, a friend of mine from law school. He is trying to get the best prices. He did get GM to pay up. He had hoped to never break the price of the IPO, but there was the time to wrap up TARP, the wrapping up all the banks that are lost and they still have, and I think the way Tim looks at it, we interviewed him this morning for Squawk On The Street is basically look, you've got to take a look at a mosaic, we got a lot back. AIG (AIG) did well.
This one had to go to $70 to really break even. GM was the worst of these and I think a lot of people feel like, well they still didn't even clean up the labor situation. In GM the bond holders did horrendously and that that's unfair. I always felt that, that was unfair. My colleague Matt Horween writes for The Street, has pointed out endlessly to me that GM was one where labor did well and capital did badly and the government did badly. In the context of where the stock was, you know high teens, the government did well.
It played the market and it did better and then it got the last prices good and remember they're going to dribble it out and I think get that big chunk gone, the stock could go up ala what happened with Citigroup (C) and their dribbling. So GM seems to me, I was asked by Melissa Lee do I like it, and yes, it is behind in terms of its restructuring your Ford (F) , a lot of people went on Toyota (TM) here, the auto stocks are very strong. I was talking with Stephanie about the parts makers, maybe they could be right - Johnson Controls (JCI) pre announced good number. So, I mean, it's kind of a feel good story. Yes, I wish the government had been able to offer more at the IPO price, be able to get out, but still effect is GM paid up and that's a win for everybody.
Debra Borchardt: Right, and as you mentioned if you look at the overall TARP picture, they will come out ahead when you put the banks in there, put AIG in there, so while they did lose money on this one, in the overall scheme of things they did okay, and they did a lot of good.