Note: This first appeared in the PJ Tatler.
And a General Motors (GM) hemorrhaging our cash via its plummeting stock price.
We the Taxpayers are still stuck with 500+ million shares of GM stock. For us to break even, they must be sold at $54 per. They debuted post-bankruptcy at $33 per share and are now around $24 per share. This sets us up for an almost $15 billion loss – just on the stock.
And the government and Government Motors are joined together at our wallet – in pathetic matrimony. So which of these linked losers will first seek to get out from under the other?
So GM is filing for divorce. But…
…(Barack Obama Administration) Treasury officials aren’t interested in selling because it would mean posting a multibillion dollar loss during an election year….
Obviously “Bin Laden is Dead – and General Motors is on Life Support” doesn’t have quite the same rhetorical flourish.
GM has already gone through one Obama Administration-corrupted bankruptcy.
President Obama illegally carried forward through the bankruptcy the ridiculously exorbitant United Auto Worker contracts. Which were a hay-yuge contributing factor to GM going under in the first place – and are again, predictably, helping to wreck the bottom line…..
During the bankruptcy process, President Obama illegally paid off the UAW first and in full – before secured bondholders who should have been made whole before anyone else got a dime. Which was incredibly disruptive and destructive of the entire bond market. Economic uncertainty, anyone?
And – shocking – it appears not to have taken.
I wonder why?
90+% of GM auto loans are now of the Freddie Mac-Fannie Mae-esque subprime variety – made to people whom GM and everyone else know can’t pay them back.
In fact, no company registered more (non-)green (non-)energy patents in 2010 than GM.
And then there’s the phenomenal Chevy Volt.
Which actually makes the following good news.
Don’t misunderstand – GM still wants all the extra cushions to prop it up that the Obama administration has been thus far providing.
And for harmonic convergence…
Fiscal woes in Washington have not prevented the federal government from buying 29,000 new vehicles over the past six years. That brings the federal government’s fleet of cars to 449,000, nearly one for every seven federal employees….
GM’s profits fell 41 percent in the second quarter, with an operating loss of $361 million in Europe. In North America, GM’s profits fell from $2.25 billion to $1.97 billion.
So the federal government and Government Motors continue to fiddle with our money – while our wallet burns.
And when GM finally asks the feds to make a rational move – the Obama administration refuses. So as to prop up its re-elect efforts.
There’s only so much of this Obama “saving” General Motors that We the Taxpayers can afford to take.