The GM IPO

It's a great lesson on how modern markets work. I'm referring to the GM Initial Public Offering. You saw it happen, but you might not have picked up on this latest micro mega-scam.

Think about it. Share prices world wide were forced lower every day for a week prior to the date of this giant IPO extravaganza. Then yesterday, as GM shares burst onto the scene, markets suddenly soared. No Virginia, the market marvel yesterday was not an accident.

GM bond holders are still in the courts, and the GM pension fund is still under water, but it was all sweetness and light anywhere you turned as the new issue came forth.

Today, the GM deed is done and markets are back to drifting as if nothing at all had gone down.

GM was bankrupt not long ago. In my view, GM is still bankrupt. But what's $20 billion down the drain when the subprime looters have stolen tens of trillions in worthless U.S. dollars?

The GM IPO? Just pocket change. The subprime looters are laughing, and they're laughing at us.