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.

Tax-cheat Tim And The Pension Scandal

Bookmark and Share  With the release of damaging internal emails, suddenly there’s a new scandal developing in Washington. At the heart of the matter is the Delphi employee pension plans affected by the General Motors bailout. Delphi is an auto parts manufacturing company.

It’s a breaking scandal and the information is somewhat patchwork at this point but apparently, as part of the GM bailout deal, the government allowed union workers’ pensions to remain whole while it chopped the pensions of non-union workers — some 20,000 non-union Delphi workers had their pensions slashed by almost half.

Further, there are hints that the decision was not only made for political purposes (Democrats doing the bump and grind with unions) but that the U.S. Treasury Department, led by confirmed tax cheat Timothy Geithner, was the driving force behind it all.

If true, this presents several problems for the administration. The Pension Benefit Guaranty Corporation (PBGC) is the federal agency charged with independent administration of private-sector benefit issues, not the Treasury. According to 29 U.S.C. §1342, the PBGC is the only government agency legally empowered to initiate pension termination.

Thus, by federal law it should have been the PBGC that made the pension decisions, not Tax-cheat Tim and the Treasury. The White House and Treasury have consistently denied they were involved claiming it was strictly a PBGC decision. Which bring us to the next obstacle for the administration.

Obama bureaucrats have given sworn testimony before Congress and in federal court claiming the administration had nothing to do with the pension decisions. The recently obtained emails contradict this testimony hinting that Tax-cheat Tim was the driving force and that White House bumblecrats were in the loop. If true, then the Obama administration willfully mislead Congress and the court.

And sacrificed the pensions of 20,000 America citizens to demonstrate their allegiance to unions.

Follow I.M. Citizen at IMCitizen.net

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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.

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