Scam Alert! Cramer Rages On About the GM IPO

Fool me once, shame on you. Fool me twice, shame on me.

I opened for my beloved, but my beloved had turned away and was gone.
—Song of Solomon

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When General Motors recently bought sub-prime lender AmeriCredit, anyone with a functioning brain cell could gather the game at the new GM is no different than the old. To wit GM still is not a car company. Rather it is an asset-backed casino. Shares in this company should be no more valuable now than they were before they went to zero. So, what is Cramer thinking?




Were GM to return to an industrial mission worthy of the 21st century — one whose operations were being financed by a Bank of the United States at 1-2% — then an equity IPO might be appealing. However, absent any attempt to transform the company into an industrial powerhouse once again, all forms of financing backing this company are at risk. You would be a sucker to buy into this.

—Tom Chechatka