It is readily apparent that President Barack Obama is going to try to make his patently absurd claims of success with the General Motors and Chrysler bailouts a theme for his 2012 reelection campaign.
So it becomes increasingly important that the truth about these boondoggles – that they have been illegal union-funding pet projects and otherwise abysmal failures – become widespread public knowledge.
Obama was again yesterday slinging the male cow at what already was I believe his thirtieth fundraiser of 2011.
Obama again touts GM, Chrysler aid as success
The problem is – as it is routinely with this Administration – that what is being said has absolutely nothing to do with reality. And as we know, President Obama doesn’t allow the facts to get in the way of a good campaign yarn.
(Bailout m)oney Obama once upon a time told us would return us a profit.
A fairy tale Obama has now amended to:
“The government will lose less than 20 percent of the $80 billion used to bail out the U.S. automobile industry.”
Obama’s National Economic Council had the audacity to add:
“The losses are less than the administration originally expected.”
Again – as we just cited – the Administration was seven months earlier claiming we would make money.
Yet another fact-free, here’s-hoping-you-don’t-remember-things-or-pay-attention Obama Administration “success” story.
Barry The Weasel once again runs down the truth behind the wheel of his Government Motors K(orrupt) car.
If you take a heavily indebted company and illegally wipe out all of it’s debts of course it will start making money. There is no rocket science here. Even the US could become solvent for another few years if you cancel all of bond debt.
The only way GM could show the results they have was by “channel-stuffing” — parking excess inventory on showroom lots across the country.
Subtract that, and they’re still falling down the rathole.
Not to mention the 45 Billion dollar tax break that the Obama regime gave them by allowing them to carry forward their pre-bankruptcy loss of 45 billion dollars. Well I did mention it.
I’ll buy a Ford or a made in USA Toyota next time!
This is just a partisan hit job! There is a lot to criticize about the union favoritism evident in the Obama administration’s handling of the details, but new GM is certainly a success story with five successive profitable quarters, including over $3Billion just last quarter.
GM, Chrysler, and very nearly Ford were overcome by the tsunami of the financial crisis of ’08 hot on the heels of the first $4 gas spike.
Today, GM is once again, by far, the largest car maker in the world, as well as #1 in the two largest markets, the U.S. and China.
The whole domestic industry was saved by the “bailouts”. Our government holds 500 million shares which would have to sell for $53 to “break even”. If the stock was sold at today’s depressed price, taxpayers would lose about $11 Billion on the deal, a few days interest on the debt and less than $5 for the average taxpayer. That is a very small price to pay for maintaining a domestic capability to operate by far the most complex, costly and strategically important industry that exists. As a matter of fact, Ford stock is down more than GM since the GM IPO, proving the lower stock price is reflective of the whole auto sector, not just GM.
Meanwhile, GM & Chrysler are hiring engineers, and GM alone is investing over $5Billion in capital improvements in America just in 2010 & 2011.This is not taxpayer money, it is free cash generated by the business. The GM bailout truly is a GREAT success, whether you like the politics of the deal or not.