Touting Success Or A Flim Flam?
More Redefining Success - "I Saved The Auto Industry"
Just the other day out in Ohio and Michigan Obama was once again beating his chicken chest about how he saved the American automobile industry. What he saved General Motors from is going through the necessary reorganization to actually become profitable once again. He also probably saved some over priced union jobs while at the same time costing the investors in the company to take a bath. Have to make those trade offs you know.
This is just another "story," as he likes to tell it, about how the auto bailouts have been such a success. His latest line has the auto industry "roaring back." This is what he said at a rally in Oakland, “I refused to turn my back on a great industry and American workers. I bet on American workers. I bet on American manufacturing. Three years later, the American auto industry has come roaring back.” I'm confused about whether he was talking about Government Motors or some other company, maybe Finnish automaker Fisker? The facts speak otherwise if he's talking about GM.
At one point it was contended that GM has repaid its bailout debt. That is far from the case. Even farther from the case than that is the spin that GM is roaring back. Lets talk facts once again rather than spin. General Motors still owes the US tax payer $27 billion dollars. $50 billion was extended and it has yet to repay 50% of the loan. It is paying bonuses as part of its roaring back having not repaid the US tax payer first? Ally Bank, it's financing arm, still owes $14.7 million for the tax payer bailout it received. The amount extended was $17.2 billion so do the math. If these are examples of a roaring back success then they need to take their foot off of the gas pedal. Ally was formerly known as GMAC.
The truth is that GM has been moving backwards. The proof is in the plummeting price of the stock, of which the US tax payer owns 32% of this company even to this date. It recently traded for $18.80 a share. In January of 2011 it was selling for $38.90 a share. That is quite a devaluation in short order for a company that is roaring back.
Doing all the tabulations places the US tax payer still on the hook for $42 billion three years later. Just to recoup our initial investment ($27 billion) the stock that we continue to hold would have to sell for $53.98. Now I'm not a math major but it seems to me that we're a long way from recouping our money as tax payers. Things seem to be moving in reverse and have nothing to do with an industry roaring back. It's all about context I'm sure.
"I Saved The Auto Industry" What A Joke!
This administration has been lying to the American tax payer for 3 years now. We already lost $2.9 billion on Chrysler though Obama promised that all of our money would be recovered, not just some of it. Maybe you don't remember the campaign video this administration had Tom Hanks star in entitled The Road We've Traveled. Hanks claimed in that video that both GM and Chrysler had repaid their loans. That is a totally false claim and a lie.
It seems much easier for the Flim-Flammer-In-Chief to parade around the country right now selling the false snake oil than to level with the US tax payer. For three years they've been lying to us and now he wants to tell us about roaring back. What I just stated can be verified. What Obama is spinning with the help of the Lames Stream Media cannot be.
How about the truth for a change we can believe in? You won't get it from Obama. I don't care who is doing the lying, what party they are from or who they "think" they are. We hire them and send them there and we can fire them if they can't do their jobs and do them honestly and truthfully. The lying to the American people needs to stop.
The Frog Prince