O-MAN’S ‘SUCCESS STORY’ IS COSTING US A BUNDLE, AMERICA
Whenever he gets the chance – which is pretty much all the time – O loves to brag about how he “rescued the American automobile industry” (single-handedly of course) and saved hundred of thousands of jobs – possibly “millions of jobs” – when non-automotive related industries are taken into account. What the spin-meister fails to tell us is that taxpayer losses on General Motors alone currently stand in excess of $36 billion.
Wait, what? Didn’t the GM CEO – and O himself – tell us in 2010 that Government Motors had repaid the taxpayers in full? While it was technically true that GM did in fact pay off its government loans, there was (and is still) a rest of the story.
With GM still in deep trouble in 2010 – and hundreds of thousands of jobs hanging in the balance – the Regime ponied up again; this time through the Troubled Asset Relief Program (TARP) with tens of billions of dollars worth of taxpayer assistance. As of March 31, 2010, the U.S. Treasury had committed an additional $52.4 billion to the still-reeling company.
Only a fraction of the total – $6.7 billion – was in the form of loans. Most of the government’s investment in GM was converted to an ownership stake in “The New GM,” the company that emerged from bankruptcy. As of today, the government still owns 26.5% of GM – 500 million shares. Additionally, taxpayers are out $26.4 billion in direct aid.
So let’s do the math:
GM shares fell to a new 2012 low of $19.57 at Monday’s closing bell – a decline of 40.8% from its 2010 IPO price of $33 – putting taxpayer losses on their shares at $9.8 billion. When combined with the unrepaid direct aid, we’re out in excess of $36 billion, America. And to hear the O-man talk, “saving GM” is one of the greatest success stories of his failed presidency.
While my emotions are mixed as to whether the government should have bailed out the auto industry, the bottom line is this, from a political perspective: The O-man treats the “recovery” of GM much like he treats everything else – with obfuscations, half-truths and self-aggrandizing rhetoric.
Besides, ANY success story involving the Regime qualifies in the “tallest midget” category.
A half-truth is a lie by omission, right?