The day after Scott Walker demonstrated the sheer might of the conservative vote over the power of public unions, media outlets are doing everything they can to find something else to talk about. For example, Ross Tucker at The Exchange writes “Republicans Bungle the Battle Over Light Bulbs”. His article is all about how Republicans are preventing Americans from saving money by preventing Democrats from making incandescent light bulbs illegal. Apparently, the only way Americans know how to buy economically is if the government eliminates all non-economical options as determined by bureaucrats in DC.
In other news, MSNBC tried to say that the Walker win was a great thing for Obama because the exit polls that showed Walker barely surviving also showed Obama winning in Wisconsin. Of course, Walker didn’t barely survive, but instead creamed his opponent by a 7 point margin. If you adjust exit polling by the actual results of the election, Romney will have the distinction of being the first Republican President to win Wisconsin since Ronald Reagan.
AP highlighted Elizabeth Warren tweeting about Scott Brown’s no vote the Democrat equal pay bill that would unintentionally make more women unemployable. I’m not sure why Warren needs an equal pay bill for women; she already got her affirmative action benefits for being a “Cherokee”.
But the best hit piece was a headline from Rick Newman at US News & World Report stating that Mitt Romney’s desire to sell the government owned GM stock would cost taxpayers $15 billion. Or as his headline put it, “Mitt Romney’s Stance on GM Sale Would Cost Taxpayers Dearly”. What a headline.
Newman himself reviews the reason we have GM stock in the first place, but can’t seem to make the connection that the losses to taxpayers from GM might actually be Obama’s fault. When GM was faltering and heading into bankruptcy, instead of selling GM to Italy like he did with Chrysler or allowing them to go through the legal bankruptcy protection process, Obama funneled about $25 billion dollars into GM making the US taxpayer a Wall Street shareholder. He did the same thing with AIG and Citigroup.
When it comes to playing Wall Street fund manager with our tax dollars, Obama sucks. I wonder what Occupy Wall Street thinks about our Wall Street fund manager-in-chief?
When GM re-emerged on the market at $35 a share, Obama did not cut our losses and sell. Instead he held on to GM with our tax dollars. GM has now dropped to $21 a share according to Newman’s article. Newman admits that GM would have to reach $52 a share in order for taxpayers to recover the original money Obama invested in GM.
The premise of Newman’s article is that we don’t need any of our money back and can wait to see if GM makes it back to $52 a share. Of course, at this point GM would have to more than double in value. Newman thinks this could happen by the end of 2013. I’d like to know what he is smoking and where I can get some.
Large cap stocks rarely double in a year. Large cap stocks freshly out of bankruptcy with 60% of their common stock shares owned by a government who is just itching to sell may never double in price. Romney is wise to cut our losses.
By Newman’s own math, Obama cost taxpayers $8.7 billion by not selling when GM peaked at $39.
Newman was trying to use fuzzy math to make Romney the bad guy for cleaning up the President’s taxpayer funded investment. Instead, he unintentionally presents a clear indictment of one more foolish Wall Street fund manager: Barack Obama.
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