Note: This first appeared in the PJ Tatler.
We have a federal government that is hemorrhaging our cash.
U.S. Budget Deficit Tops $1 Trillion for 4th Year
National Debt Reaches $16 Trillion as Dems Begin Their Convention
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?
General Motors Pushing U.S. to Sell Stake
So GM is filing for divorce. But…
Feds Refuse to Sell Their Shares of GM — And the ‘Why’ Is Quite Interesting
…(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.
General Motors Is Headed For Bankruptcy — Again
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.
GM in 2010 launched a venture capital division which is investing in fabulously successful things like…solar panel companies.
In fact, no company registered more (non-)green (non-)energy patents in 2010 than GM.
And then there’s the phenomenal Chevy Volt.
Chevy Losing $49,000 Per Volt Produced
Which actually makes the following good news.
GM Shuts Down Chevy Volt Production…For the Third Time this Year
Don’t misunderstand – GM still wants all the extra cushions to prop it up that the Obama administration has been thus far providing.
Government Motors Inflates Sales by Selling to…the Government
Chevy Volt Fleet Sales Rise, Government GM Purchases Increase
Pentagon to Buy 1,500 Chevy Volts
And for harmonic convergence…
Feds Binge on Cars as ‘Government Motors’ Profits Plunge
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.
Comment
Comment by Volunteer Patriot on September 24, 2012 at 6:14pm When GM's had enough of you... you know it's over!!!
Comment by T J Vazquez on September 24, 2012 at 4:19pm I'm a Mechanic with 40 yrs experience, I hold 17 Nationally recognized certifications, I've worked on damn near everything and I can tell you GM should be JM (Junk Motors) I wouldn't have one.
From Cadillac to Chevrolet the toots, bells and whistles change, but quality never leaves the factory.
Comment by Phil McConathy on September 24, 2012 at 4:12pm I know I will NEVER buy another GM car again EVER! GM will eventually go into normal bankruptcy and then may have a chance to actually survive in the future.
Comment by Edward M. Plitt on September 24, 2012 at 3:35pm I am in the market for a new car but would never purchase one from GM (Government Motors) aka: Obama Motors. Obama stole the company from the rightful owners and gave it to the UAW. This is criminal theft. GM will go under leaving the taxpayer holding the bag and leaving a BIG BLACK MARK on Obama's legacy.
Comment by Gene Swank on September 24, 2012 at 3:18pm GM has been in trouble for years in the US. In the 80s they came out with the Cavalier which was a piece of junk, it had many problems, many parts that just broke, IE Clutch throw out bearing, A/C lines that broke off the back of the compressor. They knew these were problems, poor design but when you went to buy the new part it was the same piece of junk they built them with. Oh soorrry we havnt fixed the problem yet. 2000 and up GM security system will fail and it can cost up to $700 to fix. And they fix it with the same exact parts they know will fail. The dealers claim it is the remote start you had installed but it will start with the remote start but not with the key and the factory system. GMC stands for Got A Mechanic Coming!!!!!!!!!!
Comment by susan elizabeth rajchel on September 24, 2012 at 2:33pm Our Communist Commander in Chief
This is the remarkable 2 hour documentary you've been reading about. Save this. Try to watch it. It will change your life.
http://www.ourcommunistcommanderinchief.com/
Comment by Kristin Fecteau on September 24, 2012 at 2:33pm thank you for writing this and providing all the links. Wonderful expose on this total scandal that is touted as a "success."
Comment by John Gearhart on September 24, 2012 at 1:17pm Unions - at one time they were needed to force issues into the public for resolution... Now all they do is destroy a companies ability to compete in the international and national market place....
Semper Fi!
Comment by Jeff Waller on September 24, 2012 at 12:30pm Mike, I heard another one:
A man found out that his wife had been cheating on him.
He turned to religion to help him deal with it.
He became a Muslim.
Her stoning is tomorrow morning!
Comment by Jeff Waller on September 24, 2012 at 12:27pm A quote from the 2012 Chevrolet Volt webpage:
The First Elctric Car That Runs On More Than Electricity
Elctric? They can't even spell it!
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