Nice event put on at Kokomo , IN at an auto plant touting the success of the stimulus funds and the bailout of GM and Chrysler. Obama and Biden were there tooting all the horns they could as to how fortunate it was that the firms accepted government/your money. Sounds good even if reality says otherwise. Funny how Ford, which was also in horrible financial shape did not take any bail out money and still managed to make just as good as a comeback as the other two auto makers without being hamstrung by government interference from people who know as much about making cars as they do making a good pastrami sandwich.
In reality, GM could have gone bankrupt, reorganized under legal protection and continue operating all the while under a new plan to “go green” profit wise. Instead of a clean recovery, we have a path muddled by government interference that has cost Americans billions. Even now the government owns 37% of stock and still dictates what GM can and cannot do; this belies Obama’s claim that he “doesn’t want to” own a car company. This is by design because unions got a good deal especially a controlling interest in Chrysler and Obama paid off some political debt for himself. How nice.
GM shareholders and creditors were all screwed in a deal that left them out in the cold. When they protested they were told that it was for the greater good. Whose good? Even now the GM stock price is depressed due to investor realization that the Feds still call the shots. We need to government to divest and do it quickly. Future tax breaks and other goodies will still cost us billions more. How can we pay down the debt? Get rid of bad deals like these and it will add up. The stimulus cost us a trillion, health care laws will cost us many billions, TARP (Toxic Asset Recovery Plan) is costing us billions to keep alive (what it was not supposed to do).
Now compare this to Greece and Portugal . Greece is doing what we should be doing and cutting costs despite public protests. Portugal just today, the day after Thanksgiving, opted out of the bailout option offered to them and instead will work to cut costs to pay down their massive debt. Instead of us leading the way, the sheep are leading the shepherd. Obama’s Far East tour ended with China lecturing us and nations again telling us that printing dollars and increasing debt is not the way go. When will Obama learn? Good thing this is the guy that “gets it.” I would like “it” defined for me.