So Barack Obama ” Saved ” General Motors Huh? Really?

Without getting too much into the specifics of the government bailout/takeover of General Motors – the very act top Democrats are now repeating over and over again as proof of Barack Obama having “saved” the car company, the true facts of how GM is actually doing are troubling at best.  At worst – it appears quite likely taxpayers will never get back the money Obama took from them to give to his union cronies, and yet another requested bailout may be on its way soon.  General Motors is failing – and failing badly.  Just like Barack Obama.

EXCERPT:

The Democrats’ GM Fiction

The Democrats have decided to run in 2012 as the bailout party. It is an odd choice — the 2008–09 bailouts were deeply unpopular among the general public, and even their backers were notably conflicted about the precedent being set and the ensuing moral hazard. But Democrats have nonetheless made one of the most abusive episodes in the entire bailout era their economic cornerstone: the government takeover of General Motors.

…Ugly as the bank bailouts were, the federal government appears set to make its money back on most of them, with the exception of some smaller regional banks and CIT. Even AIG, one of the worst of the financial basket cases, is set to end up being a break-even proposition for U.S. taxpayers. But tens of billions of dollars will be lost on GM. The federal government put up more for a 60 percent interest in the firm than GM is worth today.

…As much as it will pain the hardworking men and women of GM to hear it, it is not worthwhile to save jobs at enterprises that cannot compete on their own merits. So long as the federal government is massively subsidizing the operation, a job at GM is a welfare program with a fairly robust work requirement. (And we all know how the Obama administration feels about work requirements.)

…The GM bailout was a bad deal for GM’s creditors, for U.S. taxpayers, and, in the long run, for the U.S. automobile industry and our overall national competitiveness. No wonder the Democrats are campaigning on a fictionalized account of it.   LINK

______________

GM losing as much as $49,000 per Volt sold

…Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

…The weak sales are forcing GM to idle the Detroit-Hamtramck assembly plant that makes the Chevrolet Volt for four weeks from September 17, according to plant suppliers and union sources. It is the second time GM has had to call a Volt production halt this year.

“I don’t see how General Motors will ever get its money back on that vehicle,”   LINK

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General Motors Is Headed For Bankruptcy — Again

…Right now, the federal government (YOU THE TAXPAYER) owns 500,000,000 shares of GM, or about 26% of the company.  It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday.  This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion.

…It’s doubtful that the Obama administration would attempt to sell off the government’s massive position in GM while the stock price is falling.  It would be too embarrassing politically.  Accordingly, if GM shares continue to decline, it is likely that Obama would ride the stock down to zero.

…Will GM be able to turn itself around, and save American taxpayers from losing $26.5 billion on Obama’s bailout?

…“The game isn’t over until it’s over”, but if President Obama wins reelection, he should probably start giving some serious thought to how he is going to justify bailing out GM, and its unionized UAW workforce, yet again.  And, during the current campaign, Obama might want to be a little more modest about what he actually achieved by bailing out GM the first time.   LINK

 

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Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence. -G. Washington

13 Comments to So Barack Obama ” Saved ” General Motors Huh? Really?
    • NameBM
    • O/T but it has been bugging me since yesterday….

      By now you’ve seen the ridiculous photo of Obama being bearhugged. Never mind we are talking about the President of the US, the leader of the free world. We all know by now in which estime Obama places the image of the United States Presidency…

      Now, once I passed the nervous laugh, and the obvious staging of this ridiculous situation, I was left with the afterthought of the Secret Service being possibly set up for a future “false” attack.

      If the photo op was not an obvious ataged one, the guy would have been shot and neutralized by the Secret Services before he could put his arms around Obama. So they obviously were told beforehand to hold back.

      Is it something they will be told to futher do until such time a stagged “confusion” would leave Obama exposed to a “crazed man” or something like that? And the Secret Services would take the fall.

      I am smelling a rat. I am the only one?

      • TX Boy
      • I was wondering the exact same thing NameBM… how could anyone think that was a spontaneous event? No way in hell… that guy would have been taken down or shot by the Secret Service before ever having a chance to lay a hand on the POTUS. Everything this guy does is calculated and has an agenda behind it.

      • ThroughtheLookingGlass
      • Rats and their stinky cheese are all over that photo-op. Most ridiculous public display of affection I’ve ever seen. Embarassing doesn’t begin to describe it. And to find out the guy has been to the White House and, from what I read on another site, is gay, only makes it worse. Barry was smiling way too big. How very un-Presidential.

    • Essa
    • “Read my lips: no new taxes” submarined George H.W. Bush’s re-election chances, yet here we are with a President campaigning on a platform of raising taxes, touting bailouts for GM, and bailouts for the big banks courtesy of taxpayers which are quickly dwindling bringing us closer to financial collapse.

      I sure hope nobody believes the polls, for the platform Obama is running on is a loser of great magnitude. I doubt the majority of Americans want a country of mediocrity.

    • justawhoaman
    • Are the polling numbers intended to keep us all scratching our heads when the votes come in and Obama wins? Or are the polling numbers exaggerated to keep the Obots from rioting before the election?

      This second possibility is the same rationale used for not exposing the truth about the ineligibility of this fraud that calls himself Obama. This is NOT a case of being a distraction, it is a case of letting a foreign Communist run our country for four years and the ultimate consequences of doing nothing about it.

    • E.A.B.
    • The article says this: “if President Obama wins reelection, he should probably start giving some serious thought to how he is going to justify bailing out GM, and its unionized UAW workforce, yet again.”

      The fact is that if Obama is reelected, he’s not going to bother justifying *anything* to the public for the next four years.

      • werbaz neutronName
      • I understand your context, however, (big) if obama loses both the House and the Senate, he may learn to compromise with Congress, like it or not. Unless he plans to use Nippletaneo, etc., to “harelip the queen” and shut down government as we have known it.

        • Lindandy
        • From what I’ve heard (but don’t recall the sources) Obama is planning to run the show without Congress… he’s been leading up to this in his first term and, I believe, he even commented that he will just have to bypass Congress (or something to that effect). Hopefully, someone here knows the sources and can back me up on this. I’m not just making it up.

          • SallyAl
          • Agree that he fully intends to bypass Congress, however, if the R’s take both the house and the Senate, he could and SHOULD be impeached and then investigated and arrested! Also, wookie and valjar. They would no longer have any valid reason not to.

    • VTX
    • Couldnt get on this site – not even on alternate computers. I thought maybe something was up.

      I seriously thought something was up.

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