Obama Promises More Bailouts

Think Obama saved Chrysler and GM?  Look out, he wants to do the same thing for every American business.  In Colorado today, Obama touted the GM recovery and then said he wants to do the same thing for every industry.  Obama repeated the claim that GM is #1 again because of him.  Of course, that isn’t true anymore, but when did truth ever stop Obama?  Obama, who invested billions in taxpayer stimulus dollars on foreign countries, claimed that Romney didn’t have private sector experience.  He said instead that Romney had only invested in companies, some of which were pioneers of outsourcing.  Of course, Obama is referring to his previous campaign lie that Bain companies outsourced jobs while Romney was still there, a claim that has been debunked by The Washington Post and others.

government motors

Obama: Let’s do it again

So what was so great about what Obama did for GM?  Do we really want him doing that for every industry?  For example, do we really want him taking taxpayer dollars to buy stock in major corporations in every industry?  In order for the US to break even on the GM bailout, Obama would need to sell the government owned GM stock at $53 per shareIt is currently at about $20.  I don’t know about you, but if I had a choice I would fire Obama as my financial adviser.  In fact, Obama’s “success” with GM translates to GM’s market share being at a 90 year low.

Despite Obama throwing billions of taxpayer dollars at GM to produce what he calls a miraculous recovery, they still went into bankruptcy.  In fact, GM’s unavoidable bankruptcy may have had more to do with their survival than Obama’s foolhardy stock purchase with our tax dollars.  So what would the difference between Obama’s plan and Romney’s plan have been?  Billions of dollars in taxpayer money.

GM’s recovery has resulted in the loss of 1/3rd of their brands, 900 dealerships, 13 plants, and 22,500 jobs.  Obama wants to repeat this “success” with every other American industry.

Throw in the emerging retirement scandal where the administration stole 20,000 pensions in order to pay off union supporters, and GM is a perfect example of exactly what we DON’T want for every other industry in America.  In fact, all other things being equal, Obama’s promise to repeat the GM fiasco with every other industry in America is a perfect reason to make sure he never has the chance.

If you want Obama to take your tax dollars and invest them in stocks that you personally wouldn’t buy, then by all means re-elect him.  The too big to fail industries in corporate America could use the help.  Unfortunately, Obama’s only options for a bailout of every American industry are more China debt or higher taxes on every level of income.

At least he’s not promising to do what he did with Chrysler to every American Industry.

No Silver Lining – Obamacare Taxes the Poor

We passed the bill, and even now we are still finding out what is in it.  When Nancy Pelosi said we had to pass the 2,700 page healthcare bill to find out what was in it, that’s because nobody really knew.  Turns out they missed something big.  If a state can’t pay the $2 billion to set up a state run health insurance exchange and passes on that portion of the law, the federal government cannot provide the poor in that state with health insurance tax credits.  In other words, if states spend their limited resources on teachers, roads, police, firemen, and libraries instead of building one of Obama’s bureaucratic insurance exchanges, the poor not only don’t get help buying health insurance, but then have to pay the penalty tax for not buying health insurance.

If $695 in penalty taxes is enough to bankrupt a homeless person, than you can count Obama’s claim that no one would ever face bankruptcy for medical reasons again as one more broken promise.

There is a provision for the federal government to set up a national exchange for states who don’t or can’t spend the money to build their own.  However, a simple mistake in the law, or possibly an intentional penalty, only allows for federal tax credits to individuals in states with state run exchanges.  Perhaps Obama thought that by the time the law was implemented states would be able to shell out an additional $2 billion to pay for it.

Personally, I support Governor Scott’s decision to use that $2 billion to keep Florida from having to lay off teachers in our already hurting school districts.

Add this unforced error to Obamacare and there are few silver linings left for most Americans. Families can keep their kids on their health insurance up to age 26, but in many cases these “kids” are either old enough to be out on their own or are still students and could actually get student health insurance plans for far cheaper than the cost of being added on to their parent’s plan.  At the same time, the cost of adding 25 year olds to family plans has helped raise rates for everyone.  There is the tax credit for small businesses, but a tax credit for businesses with 15 or fewer employees who make less than $50,000 but can still afford to provide health insurance and pay an accountant who knows how to figure the credit are few and far in between.

When the health insurance taxes are fully implemented and the price of health insurance shoots high enough, no one will get health insurance until they get sick.  In states that can’t afford exchanges, the poor won’t get insurance either.  The very problem Obamacare sought to fix, that of middle class and poor “free-loaders” who either can’t afford insurance or decide not to buy it, will be made infinitely worse by Obamacare.

One more thing to add to this mess is that many states can’t afford the Medicaid expansion either.  Liberals are scratching their heads trying to figure out why states would forgo more Medicaid money.  But it’s like this: picture if someone with a million dollars in debt invited you to have steak dinner with him at the most expensive restaurant in town.  The two stipulations are this, first you have to pay half, second you have to then do the same thing for every dinner for the rest of your life.  And if this man with a million dollars of debt can no longer afford his half, you’re stuck with it.  Would you accept the offer of “free” steak?  State’s can’t afford their half of the Medicaid expansion, and they certainly know Uncle Sam can’t afford his share either.

In the end, Obamacare is bad news for the majority of Americans.

Hit Piece Misses

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.

Conservative Formula Plays Out

Imagine if you single-handedly picked Presidents.  The choice is up to you.  No need to consider electability, lesser of two evils, third parties, spoilers, or anything else.  Your choice is it.  Now, imagine you live in Montana, Minnesota, or Colorado and delegates aren’t rewarded based on your primary vote.  It’s pretty much the same situation.

The result?  Ron Paul got his standard 10-20% of libertarians and conservatives seeking radical constitutionalism, Romney got his standard 30-40% of fiscal conservatives who want a strong businessman, and the social conservatives split the rest.  Except in states where electability, lesser of two evils, third parties, and spoilers don’t matter, Newt Gingrich barely registered.  Instead, Rick Santorum, deemed unelectable from day one, swept bigtime.  It’s like “What’s My Line” where the points don’t matter.

Social Conservatives demonstrated what they really want, and it ain’t Mitt or Newt.  Mitt Romney is striking out with Conservatives, first with support of increasing labor price floors, then with information about his imposing abortion coverage on private companies like Obama is doing now.  Both of these are huge question marks on Romney’s record.

But Newt hasn’t done much better, with most of the country now thinking he was Freddie Mac’s number one lobbyist and had more sex partners than your average Mormon.  Romney has succeeded in dragging Newt down, and Newt hasn’t helped himself.

So does Santorum have a shot?  Probably not, but he does have something Iowa didn’t really give him: momentum.

Now Santorum can face the Romney attack machine for a while.  It started with the Donald saying that since Santorum lost in Pennsylvania he can’t possibly win the Presidency. Of course, that is a pretty funny standard to be judged by when it comes from a multi-billionaire business-owner who has declared bankruptcy four times.  I would think Trump would be able to relate to Santorum’s tenacity.

The problem with Santorum is that he doesn’t have that Presidentiality  that stupid, ignorant, and independent voters look for in a President.  He doesn’t have the hair or the chin.  Oh, and as Scarlett Johannson pointed out, he is unelectable because he wears sweater vests.  What Johannson underestimates is how many people out there who would take a bag of rocks wrapped in a sweater vest over our current President.

I pick on independents, but social conservatives aren’t much better.  When delegates are back on the table, don’t hold your breath for another Santorum sweep.  That would require conservatives looking themselves in the mirror and asking what they actually want in a President, not just who can beat Obama.  Tuesday’s message was loud and clear.

Pawlenty Advocates Bankruptcy For States


Bookmark and Share In a move that puts him at odds with the bulk of his own party, Former Minnesota Governor and 2012 Presidential hopeful Tim Pawlenty has stated that it would be worth considering to let states file for bankruptcy to avoid more costly pension liabilities. Citing the fact that cities can declare bankruptcy, Pawlenty speaking at a county GOP dinner in the early primary state of New Hampshire, said he would prefer that voters keep pressure on lawmakers to curb spending and obligations that lead to bankruptcy in a story originally reported by the AP.
This puts the Minnesota Republican hopeful at odds with the Constitutional voters in the GOP who see the move as a loss of state sovereignty and those fiscal conservatives who see the move as irresponsible governing getting a pass. The positive side of the debate is that many conservatives see the restructuring of state labor union agreements as a result of a bankruptcy declaration a step in the right direction in helping the states future financial outlook.

As the debate rages on regarding states declaring bankruptcy one thing is certain, Tim Pawlenty is not afraid to draw a conclusion and draw it in the first in the country primary state of New Hampshire.
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