Skip to comments.The auto industry lives. Can we admit that government intervention worked?
Posted on 08/02/2010 9:07:10 AM PDT by Nachum
Who could have imagined that the bailout of the auto industry, one of the single most unpopular moves by the Obama administration, would become one of its best talking points?
But don't for an instant imagine that the comeback of the nation's rescued car companies, particularly General Motors, will change the way we debate government's role in the economy. When it comes to almost anything the government does, ideology trumps facts, slogans trump reality, and loaded words ("socialism") trump data.
Let there be no mistake: Rescuing GM and Chrysler took political courage, and I want to put in a good word not only for President Obama but also for George W. Bush.
True, Bush's electoral career was over in December 2008 when he extended $17.4 billion of Troubled Assets Relief Program money to keep the companies alive long enough to give Obama a chance to act. Still, it took guts for Bush to decide not to "leave the next president to confront the demise of a major American industry in his first days of office." Yet it was Obama who put in the bulk of the cash -- in all, Bush's input had grown to $25 billion before he left office, while Obama put up an additional $60 billion -- and created the tough restructuring plan.
(Excerpt) Read more at washingtonpost.com ...
Uh, give the company to the unions. Screw the stockholders. Screw the dealerships. Take ownership of 60% of the company. $85 billion spent.... so far.
Um...How much profit did we make again?
Anything will give the impression it lives with that kind of cash infusion. Too bad they won’t be able to pay it back and nobody in their right mind will ever lend them money again. So, yeah, its fixed alright.
You forgot one: "Screw the bondholders."
Yeah...tell that to all the retirees who had GM Bonds and got screwed.....baawwaahhhhhhhh
Of COURSE it lives ! It’s subsidized by the government ! It can’t go out of business ! AMTRAK Redux !
If it were ALLOWED to die, then people who used to work the assembly line would go home, and start to build their OWN car design. Those designs would compete in the market place until the best rose to the top, and that one-time assembly worker would be head of his or her OWN car company !
REO stands for “Ransom E Olds” ! That’s not a coincidence !
May I suggest more coffee? You forgot the ‘barf’. ;)
It’s not dead yet, so that constitutes a policy that “works” ??
Lesee, the new “exciting” vehicle Government Motors has produced is the “Volt.” Its expense is such that its probably cheaper to buy and operate an SUV than to purchase this boondoggle.
GM survived. So did Ford. Which one is doing better today?
Which one, EJ, hmmmm?????
“The auto industry lives. Can we admit that government intervention worked?”
No, we can’t . .because it didn’t.
But we can admit you’re an idiot.
The foreign car makers received no bailout money and they survived. GM and Chrysler could have declared bankruptcy and survived.
Nationalizing the bulk of America’s auto industry was the SINGLE MOST TOXIC and WASTEFUL thing that that ass-clown Obama has done in office. Except for all the other toxic and waster things, LOL
GM Motors is now the biggest welfare scheme in history. And the Volt is going to be a disaster
Dionne is a demented know-nothing cheerleader.
Did China buy Detroit? Soros in charge of this propaganda also?
They are also dumping tons of GM and Chrysler cars on cities, Fed govt, etc. I bet Ford has not sold one vehicles to a city or govt entity.
GM is talking about an IPO this year or next year so the UAW members and O’s cronies will get rich off the assets they stole from bondholders.
So the future of General Motors (and the $50 billion taxpayer investment in it) now depends on a vehicle that costs $41,000 but offers the performance and interior space of a $15,000 economy car. The company is moving forward on a second generation of Volts aimed at eliminating the initial models considerable shortcomings. (In truth, the first-generation Volt was as good as written off inside G.M., which decided to cut its 2011 production volume to a mere 10,000 units rather than the initial plan for 60,000.) Yet G.M. seemingly has no plan for turning its low-volume eco-flagship into a mass-market icon like the Prius.
I know a divorced single woman in her late 50’s, with a bad back, who now works at a shop on her feet all day. She was a bondholder with GM as her major investment and protection for her later years. My understanding is that they really hurt the regular bondholders (traditionally blue chip bondholders are widows and orphan types), while they gave sweetheart deals to the big institutional bondholders. Horrible, horrible, cruel actions, that really underline that this is a government for the elites and is dedicated to hurting working Americans to help the elites.
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I knew there was something I forgot!
Don’t forget the GM bond holders who were wiped out.
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