Will President Obama by the next CEO of GM? Ap Photo/Scott Applewhite
General Motors has already received around 20 billion dollars of federal loans to keep itself going. In that time the Obama administration has repeatedly given the company a failing grade in its efforts to right itself. In fact they were so displeased with their turn around plan that they fired GM CEO Rick Wagoner.
Now after all these liberal do gooders wasted, say that again wasted, billions of dollars in Federal Tax payer money GM will end up in bankruptcy court after all. I hate to say I told you so, but bankruptcy court is where this company belonged in the first place. If only that was the end of the outrage.
Now the government is about to pay 30 billion more dollars to buy 50% of the company.
WHAT?
It is now Obama’s plan to pay 50 billion dollars for a company that is essentially worthless. Excuse me Mr. President but how is a company owned by the government going to repay the loans we the taxpayers gave them?
The answer to that is they are not. GM will never be a strong enough company to repay the money they borrowed for the US taxpayer. This is a company losing millions of dollars each and every day. Wall Street has no confidence in this company, and even their own board members are dumping their stocks at little more then a dollar a share.
What sense does it make for the Government to step in with 30 billion dollars to own half of a worthless company? On top of that once GM sells off a few of its healthier assets, like Saturn, what will remain?
This has been said over and over again; while the Government artificially props up GM it limits the ingenuity of the American work place to form another company to take its place. This is the sad reality, GM and its board of directors and employees the world over are not entitled to stay in business or keep their jobs. That is the natural order, and messing with the natural order will have severe consequences.
The first and foremost of these will be the political price Obama pays for this failure. The Democrat party will try to insure that the public at large continues to blame the Bush administration for this mess. However it is the Obama administration laying out big bucks for a worthless company. If this company continues to fail, and that seems likely, it is the fault of Obama and his team.
While Obama, the person, remains extremely popular, his policies are not that popular. He may be able to ride his personal popularity to a second term, but his incumbent buddies in the House and Senate will face a voter revolt due to these socialist policies.
This would make a second Obama term, or even the second half of his first term a lot uglier that it has been so far.
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Comments
Maybe he's (Obama) is looking out for the millions of americans who depend on Auto Industry to make a living. These are the Americans who pay their taxes and their hospital bills, the kind that need to stay employeed to keep this country going.
It is the fault of General Motors for the situation they are now in. Not Bush or Obama's. Stop playing the political party crap and blame who's truly responsible. They were too late in switching their business model to adapt to the current times, plain and simple. That being said I am a mill worker myself and GM needs to survive. Too many people depend on this company for income whether it be the UAW, suppliers, steel mills, truck drivers, etc... If this company disappears it will be catastrophi
This is America, companies compete in the market. If a company cannot survive then it wasn't good enough. Millions of American entrepreneurs fail, many succeed. Let the best "man" win. Let the people decide who should stay in business by their spending choices. We cannot keep a company afloat just because they've been around forever, or they have millions of people depending on them. That is life. They should have seen this coming YEARS ago. There's no way any company can stay profitable forever
Take the pain NOW! America, your children will thank you! Keep trying to save what's not worth saving will destroy the last thing we still have control - the US dollar.
I think if the Government owns a a car company it can structure it the best way it can for the American people LONG TERM. It will be a company that will put others out of business due to the fact it will be sized well and not to make a profit off of the people, but FOR the people. I would love a free car that my taxes paid for and will last forever. i do not need much, a radio that can be upgraded at my expense, a car that gets 100miles to the gallon and maybe say 80MPH. that would be a grea
Hey guys guess where I hid the 10 Trillion dollars?
I feel that it is messing with the natural order of the business model, in which only the healthiest companies survive. But at the same time by attempting to save GM you are also saving a huge employer within the United States.
I would like to quote one success in which a government entity (England) took over a failing company and rebuilt it and that was BMW.
Saw a bumper sticker on a Hummer the other day said..."Obama never had a Hummer"
I didn't vote for "uncle barry" and i'm glad i didn't... he's a smart guy, and likeable, but he lacks experience... plus the liberal model of bailing ppl out has gotten us here in the first place.
Businesses must be allowed to undergo creative destruction. Allow GM to go through bankruptcy ASAP. The assets will be bought for cents on the dollar by entrepreneurs that can do better things with them. The car making won't go away. It will be retooled and reinvented into something that is better for everyone. Keeping zombies alive for fear of change only hurts all of us.
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