Obama Pushes False GM Success Story


 

Investors Business Daily

Comments by Jim Campbell, Citizen Journalist

The video below is frightening not because it is filled with lie after lie, but the average voter in America is not aware enough to have a clue about the deceit delivered by Obama sycophant Tom Hanks in spreading this propaganda.

Think about it, if you spent your days working and had time to catch the news when you got home, receiving your daily dose of brain washing, then this video is sprung on you who would you vote for. If Team Obama would stick to these types of lies instead of his compulsion to lie, attack, demonize, play the race card and blame the “wealthy” and everything

Hank, a great actor and director has his head so far up Obama’s ass they are probably kissing each other right now.

Hanks to Obama: My Fuehrer  where are you?

That’s my story and I’m sticking to it, I’m J.C. and I approve this message.

Politics: The Obama camp can’t stop clucking about how he saved GM and the car industry. But if the GM bailout is such a success story, why can’t it pay back its debt to taxpayers?

The president’s new campaign video narrated by actor Tom Hanks claims GM has “repaid” its loans. But in a revelation by the special inspector general monitoring the TARP bailout program, GM and GMAC together still owe the biggest share of the remaining $119 billion TARP debt.

After viewing this video one must ask themselves who is the bigger fool Tom Hanks or Obama?

Of the top bailout recipients, GM is the biggest laggard, the TARP watchdog says in his latest quarterly report to Congress. Bank of America, Citigroup, Chrysler and Chrysler Financial all have paid off their debt and left the TARP program. Even AIG has paid back more than 75% of what it owes taxpayers. ( More Below)

GM, on the other hand, still owes more than half the $50 billion in federal funds it received when the combination of the recession and its costly union contracts drove it into bankruptcy. And its lending arm, GMAC (now Ally Financial), still owes $14.5 billion.

What’s worse, it’s not clear that GM actually repaid what it’s gotten credit for repaying. Check out this note buried in the inspector’s report: “As part of a credit agreement with Treasury, $16.4 billion in TARP funds were placed in an escrow account that GM could access only with Treasury’s permission.”

As it turns out, GM got Treasury’s OK to “repay” more than $6.7 billion “using a portion of the escrow account that had been funded with TARP funds.” So GM is merely paying the government back with government money, not money GM is earning selling cars, as the administration has claimed.

Worse, GM in effect is still borrowing money. Consider this item from the report: “What remained in escrow was released to GM.” Bottom line: Taxpayers have not been paid back and are still on the hook as GM continues to require government help. Yet Obama has hailed the GM bailout as the signature achievement of his big government programs.

“On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen,” the president said. “Today, General Motors is back on top as the world’s No. 1 automaker.”

 

Even that’s a stretch. GM edged tsunami-crippled Toyota by counting sales at its joint ventures in China, which aren’t wholly owned subsidiaries. And the government is directly subsidizing new GM auto lines like the star-crossed Chevy Volt.

Ford, which didn’t take TARP funds, grabbed market share from GM and is now more profitable. Ironically, Ford for the first time in years has outsold GM in the number of cars bought by the federal government — although Washington still owns a huge stake in GM. Not exactly a vote of confidence.

In North America, Ford just recorded its highest quarterly profit since 2000. GM missed profit estimates in the fourth quarter. And analysts are not sanguine about its first-quarter results due Thursday.

The GM story is hardly what we’re looking for in terms of a recovery. That Obama is touting it as a top economic achievement speaks volumes about his policies.

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4 responses to “Obama Pushes False GM Success Story

  1. Jan 26 ,2013 Would be a good time to Sew the UAW and stop the Tax payer IV

  2. . You choose to say “GM has still owes more than half the 50 billion it took from TARP” I mean you could also say “GM Has paid almost half of its debt back” Just depends on the spin you wish to put on it I guess.

    oh and this line about “In North America, Ford just recorded its highest quarterly profit since 2000. GM missed profit estimates in the fourth quarter. And analysts are not sanguine about its first-quarter results due Thursday.”

    I guess the fact GM Also broke its profit record did not mean anything? Because they “didn’t meet estimates”?

  3. I s till say Obama and the CEO of GM lied about how b roke GM really was.. they thought that by helping with money GN would sail thru ther Debt.. but its not happening.. I wonder what the CEO tells his kids when they ask him about GN and why its still in debt. Does he lie to them like he lied to the ppl of America

  4. How could GM be profitable ? Supposedly, prior to the stimulus and bail -out , the legacy costs at GM exceeded the income – therefore, without eliminating the legacy costs, how could they possibly become profitable?

    The Chevy Volt is a disaster . It requires electricity, which is mostly generated by coal , to recharge the batteries , and OWEbama and his EPA wackos are opposed to fossil fuels.

    Once again – how could GM survive on it’s own ?

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