Thanks, Obama! GM Goes From Bad to Worse Since the Bailout

September 7, 2012

Readers with long memories may recall that Charles E. Wilson, president of General Motors and nominee for secretary of defense, got into trouble when he told a Senate committee, “What is good for the country is good for General Motors, and what’s good for General Motors is good for the country.”


That was in 1953, and Wilson was trying to make the point that General Motors was such a big company — it sold about half the cars in the U.S. back then — that its interests were inevitably aligned with those of the country as a whole.


Things are different now. General Motors’ market share in the U.S. is below 20 percent. It has gone through bankruptcy and exists now thanks to a federal bailout. But Barack Obama seems to think that it’s as closely aligned with the national interest as Wilson did.


“When the American auto industry was on the brink of collapse,” Obama told a campaign event audience in Colorado earlier this month, “I said, let’s bet on America’s workers. And we got management and workers to come together, making cars better than ever, and now GM is No. 1 again and the American auto industry has come roaring back.”


His conclusion: “So now I want to say that what we did with the auto industry, we can do in manufacturing across America. Let’s make sure advanced, high-tech manufacturing jobs take root here, not in China. Let’s have them here in Colorado. And that means supporting investment here.”


Was he calling for a federal bailout of other American manufacturing companies? And what does he mean by “supporting investment”? White House reporters have not asked these obvious questions, for the good reason that the president, who has been attending fundraisers on an average of one every 60 hours, has not held a press conference in something like two months.


Obama talks about the auto bailout frequently, since it’s one of the few things in his record that gets positive responses in the polls. But he’s probably wise to avoid probing questions, since the GM bailout is not at all the success he claims.


GM has been selling cars in the U.S. at deep discount and, while it’s making money in China — and is outsourcing operations there and elsewhere — it’s bleeding losses in Europe. It’s spending billions to ditch its Opel brand there in favor of Chevrolet, including $559 million to put the Chevy logo on Manchester United soccer team uniforms — and just fired the marketing exec who cut that deal.


It botched the launch of its new Chevrolet Malibu by starting with the green-friendly Eco version, which pleased its government shareholders, but which got lousy reviews. And it’s selling only about 10,000 electric-powered Chevy Volts a year, a puny contribution toward Obama’s goal of 1 million electric vehicles on the road by 2015.


“GM is going from bad to worse,” reads the headline on Automotive News Editor in Chief Keith Crain’s analysis. That’s certainly true of its stock price.


The government still owns 500 million shares of GM, 26 percent of the total. It needs to sell them for $53 a share to recover its $49.5 billion bailout. But the stock price is around $20 a share, and the Treasury now estimates that the government will lose more than $25 billion if and when it sells.


That’s in addition to the revenue lost when the Obama administration permitted GM to continue to deduct previous losses from current profits, even though such deductions are ordinarily wiped out in bankruptcy proceedings.


It’s hard to avoid the conclusion that GM is bleeding money because of decisions made by a management eager to please its political masters — and by the terms of the bankruptcy arranged by Obama car czars Ron Bloom and Steven Rattner.


Rattner himself admitted late last year, in a speech to the Detroit Economic Club: “We should have asked the UAW (the United Auto Workers union) to do a bit more. We did not ask any UAW member to take a cut in their pay.” Non-union employees of GM spinoff Delphi lost their pensions. UAW members didn’t.


The UAW got their political payoff. And GM, according to Forbes writer Louis Woodhill, is headed to bankruptcy again.


Is this really what Obama wants to do for all manufacturing across America? Let’s hope not.




Obama-messiah Says We Haven’t Sacrificed Enough (Bend Over…This is Gonna Hurt)….

January 29, 2009

obama-pencil-sharpenerSurely ya’ll remember when Obama-messiah told us he was going to fix everything as soon as he got in office.  How the sun was going to start shining again.  And how goodness and prosperity would pour from the skies like manna from heaven.


Once again, I hate to say I told you so.  But…


— Spencer 


Obama-messiah Says We Haven’t Sacrificed Enough (Bend Over…This is Gonna Hurt)….


Sunday, January 11, 2009


by Mike Adams, the Health Ranger, January 11, 2009



So much for campaign promises. Take everything Obama promised on the campaign trail (including whatever he said that made his supporters scream out, “He’s gonna pay for my home mortgage!”) and scratch a red line through it. Financial reality has suffocated the entitlement dreams of an administration that largely got elected by promising unprecedented government handouts. But guess what? America is broke. And now it’s time for some sacrifice.


That’s the conclusion of Obama himself, who has announced massive cutbacks on the spending he promised during his campaign, emphasizing that “Everybody’s going to have to give.”


So does that mean Obama no longer thinks he can spend his way out of a debt problem? Nope, not exactly: The trillion-dollar deficits are still on the budget. But now Obama is adding a new layer to the plan by demanding that everybody give something for the good of the country.


Well, not everybody everybody.


The rich white banksters on Wall Street don’t have to give. They basically just take.


The incompetent executives running the U.S. auto industry don’t have to give. In fact, the more incompetent they are, the more money they get handed by Washington!


The wealthy, elite politicians don’t have to give. As usual, they’re just taking: Power over the people, control over the people, etc.


So, as usual, the only people that really have to give something are the working class upon whose backs the Treasury and Federal Reserve have already heaped unprecedented levels of new debt in the form of bailout money. Listen to my hip hop / rap song on the bailout money fraud here:


America is now devolving into a nation of two new classes. Nope, I’m not talking about the rich vs. the poor, I’m talking about the Givers vs. the Takers.


The Givers are all the hard-working, tax-paying Americans who somehow manage to keep this nation solvent. The Takers are all the criminals running Washington, stealing money from the people through new debt creation, debasing the currency, spending their money on endless wars and brainless “health care” systems that are fundamentally broken… these are the Takers.


The problem with all this is that the Givers aren’t really Giving voluntarily. They’re only doing so with a gun to their collective heads: If you refuse to give, the IRS throws you in prison. The Takers, in other words, use the threat of violence to get the money and power they want, and then they use it to reward their rich, white friends while socking it to the everyday American workers who are trying to muscle up enough money to pay the rent.


And now Obama says you haven’t sacrificed enough. You’re gonna have to pay more. Is this code language for new taxes? Why don’t they cut spending instead, by starting with a halt to the runaway bailout money fraud?


The funny thing in all this is that Obama is actually right about the issue of sacrifice: America must cut spending on entitlement programs if it hopes to remain financially solvent for even the next four years. Everybody will have to sacrifice something.



I don’t mind sacrificing something to save America (after all, our forefathers and mothers sacrificed plenty…). I just think the sacrifices should be shared by all. If you and I and all the other hard-working, middle-class Americans are breaking our backs to scrape together enough money to get by, why should we be giving thousands of billions of dollars (trillions, in other words) to lazy, incompetent, rich corporate executives, bankers and institutional greed-mongers whose track records prove them to be destroyers of wealth?


I have a prediction to make in all this: If these financial injustices are not corrected, Obama will be pushing this nation towards outright class warfare (of the violent kind), where the over-taxed, under-paid workers of America eventually stage an armed revolt against their oppressors in Washington and Wall Street. It’s not a pretty thought, and I hope it never comes to that, but by examining history, you’ll realize that every popular revolt has always stemmed from a great injustice thrust onto the backs of the People and unresolved by those in power. (The Peons, in other words, will want the King’s head.)


I believe there are many Americans who, when faced with being forced to “sacrifice” yet more of their paycheck while Washington is bailing out the filthy rich, will cross a threshold of outrage and frustration and decide to join a popular revolt against the crooks running America today.


Unless the theft of money from the People ends soon, I would not be surprised at all to see the streets of America becoming bloodied protest zones by 2012.


I want my bailout money, too, after all.


Obama-messiah says Americans must SACRIFICE, SACRIFICE, SACRIFICE

January 29, 2009

obama-botNow you are finally getting to see the true face of the Obama-messiah.


I told you from the start that the theme of the Obama administration would quickly shift from “Yes, we can!” to “No, you can’t.” 


It’s going to get bad, folks. Real bad.


He hasn’t even taken office yet, and he is screaming “sacrifice” from the rooftops.  Not sacrifice from him.  Not from the Wall Street banksters.  Not from GM, Ford or Chrysler, or other bankrupt enterprises.  No.  He wants YOU to pay the price for their profligacy.  He wants you to sacrifice so the crooks can live.


What can I say to the good people of America who voted for this man, but “You asked for it.  You got it.  Toyota.”


— Spencer


Obama-messiah says Americans must SACRIFICE, SACRIFICE, SACRIFICE





Sunday, January 11th 2009, 4:00 AM


Tackling the troubled economy is going to require Americans to sacrifice – and it means some campaign promises will have to be put on hold, President-elect Barack Obama says.


“Everybody’s going to have to give. Everybody’s going to have to have some skin in the game,” Obama said on ABC News’ “This Week with George Stephanopoulos” set to air this morning.


Obama’s comments came as the President-elect, who takes office Jan. 20, responded to a new national unemployment report by saying in his weekly address Saturday that he’ll save or create 3 million to 4 million new jobs.


“Our challenge is going to be identifying what works and putting more money into that, eliminating things that don’t work and making things that we have more efficient,” Obama said on ABC. “I want to be realistic here. Not everything that we talked about during the campaign are we going to be able to do on the pace we had hoped.”


Obama agreed that his administration is going to involve some version of a “grand bargain” – changes in areas like tax reform, Social Security and Medicare will come at a cost.


Addressing the nation as his team released figures on the job situation, Obama said in his weekly radio and video address that 90% of the jobs will be created in the private sector. The remainder are “mainly public sector jobs” such as teachers, cops and firefighters.


The report released by Obama’s team Saturday projected the creation of 678,000 new construction jobs and 408,000 manufacturing jobs by next year under an estimated $775 billion stimulus plan.


Among the sources of the new jobs Obama cited: designing more efficient cars and building solar panels, infrastructure roles such as repairing roads and bridges, and jobs in the health care and education sectors.


Obama said economists predict that if Congress doesn’t agree on a large-scale stimulus plan, the U.S. will shed as many as 4 million jobs before the recession comes to an end.


Obama also vowed to procure “bipartisan extensions of unemployment insurance and health care coverage” and a $1,000 tax cut for 95% of working families.


“Given the magnitude of the challenges we face, none of this will come easy. Recovery won’t happen overnight, and it’s likely that things will get worse before they get better,” Obama warned.