5 min chart of GM stock for 6-1-2012

More behind GM stock reaction to pension buyout plan

If this new news is so good, then why did General Motors Company (NYSE: GM) stock pop upward then fall back? Does this portend a change in trend in America that will result in confiscation of IRA and 401-k wealth, too?

Any news that reduces burden and costs to General Motors Company (NYSE: GM) should be viewed as great news to GM stock holders. Problem is, looking at the 5-minute intraday chart, the market didn’t quite see it that way, as GM stock popped up on the news, but fell back later in the day. Question is: why? And what does this move portray for the country?

For the record, I am one of those retirees who may receive the lump-sum offer as the letter arrived in today’s mail; wonderful timing I might add. According to the GM news release (which I read later), the retirement plan actions will result in an expected $26 billion reduction of GM’s U.S. salaried pension obligation.

Furthermore, not every retiree will get the offer. I would have paid to be a fly on the wall for those meetings which determined the criteria.

Also according to the news release and the letter, select U.S. salaried retirees will receive a lump-sum payment offer and other retirees will receive a continued monthly pension payment securely administered and paid by The Prudential Insurance Company of America, a Prudential Financial, Inc. company. Again, what criteria determines who gets on the select list? No surprise, GM never reveals those kind of details.

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Comments

Boo hoo, my fat retirement bennies from the auto union are going to get cut because they were not sustainable in the first place. Boo hoo, they are going to send me a big f-ing check to pay me instead. Boo hoo.
Dear Boo Hoo Suthy: Better info coming from a person on the inside like me than an outsider who only knows what the news releases are touting. Besides, I was salaried, not union; they still have their full medical. Sure, the check is fine; the complaint I'm hearing is that more time is needed to work with annuity companies than what's being given. Imagine a possible stop or gap in your fixed income cash flow. Regarding your logic, SSI is not sustainable either; so I want to hear your reaction when you are told your retirement age is raised to 82. Likewise, when the government attempts the takeover of your IRA and 401-k to pay benefits for those who do not work because they entered the country illegally. If you think this is not under consideration by Congress and the Senate, then you best wake up. Boo Hoo Hoo!!!
June 1 brought an announcement from General Motors on their plan to lessen pension liability by a predicted 26 billion dollars. The plan will offer a number of U.S. salaried retirees a lump-sum payment and other retirees a continued monthly payment. The decision-making process is complex; it is recommended to seek the counsel of an experienced financial advisor. The decision deadline is set for July 20, 2012. Go to gm-pension-buyout.com to read a free white paper and more information on the General Motors (NYSE:GM) Pension Buyout.

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