One Year After the GM IPO…How is Our $50 Billion Investment Looking?
- Posted on November 20, 2011 at 11:20am by
Mike Opelka
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In 2009, the Obama administration invested $50 billion (taxpayer) dollars in the failing American car maker General Motors. The president told the country that this investment (and the additional $30 billion to Chrysler and $5 billion to various parts manufacturers) was needed to save the economy from a total collapse.
Obama also predicted that the money would be paid back.
Let’s review the history of the $50 billion dollar GM bailout.
2008 – GM celebrates 100 years in business (earlier this month Chevrolet turned 100). Two months after the party, GM told the government that they needed billions of dollars in loans or the company was going under.
June 2009 – The administration says it will provide GM with the needed funds ($50 billion) but bankruptcy and cuts are required.
June 2009 – GM files for bankruptcy.
July 2009 – GM emerges from bankruptcy.
April of 2010 – GM’s Ed Whiteacre announces that GM has paid back loans made to the company by the US and Canadian governments.
Whiteacre was not lying. LOANS were paid back. Loans…not the $50 billion dollar investment. There is a difference.
The loans Whiteacre was speaking of were just a small portion of the $50 billion dollar bailout. In fact, they were less than 10 percent of the total package. And the sources of the money used to pay off those loans is also an important story.
Reason.tv provides a simple and graphic explanation of the facts of this reported payback of the loan.
November 18, 2010 – The NYSE is abuzz with talk of the new General Motors (GM) initial public offering. The old stock symbol GM would be back on the “Big Board” as the American auto giant tries to reinvent itself on the backs of the American taxpayer.
GM stock relaunched at a price of $33 per share. And President Obama announced that his grand plan is a success and that America will get back all of its investment.
On the day of the GM IPO, America did cash in some 400 million shares of GM stock, leaving us (the government) with just 500 million shares. Our stake in the ownership of the car company has now fallen from over 60 percent to 26 percent. And we (the government) have recouped $23.1 billion of the $50 spent. That was the good news.
This past week the Treasury Department released the news that losses from the auto industry bailouts are expected to INCREASE from $14.3 billion to $26.6 billion. The blame for this increased loss is placed squarely on the large drop in GM’s stock price.
On January 7th of this year, GM’s stock peaked at $38.98. As of Friday’s close, GM’s stock price had fallen to $21.67… a 35 percent drop from the IPO price.
In order for the American taxpayer to be made whole on the investment we made in just GM, the share price for the automaker needs to climb to $53, more than double the current price. Can GM’s stock rebound and jump from $21 to $53, providing the government a chance to “take a few chips off the table?” Most analysts will give you a simple two-word answer to that question: It’s doubtful.
What is standing in the way of GM’s stock price increasing and the government getting paid back for its investment? The government.
Industry experts cite the Obama administration’s aggressive push to increase the Corporate Average Fuel Economy Standards (CAFE Standards) from current levels of 30mpg to 55.4mpg by 2025. The government mandated increase would add an estimated $2000 to $2500 to the cost of every car in America. And automakers would also be saddled with huge spikes in costs to engineer their cars to meet the requirements.
The administration argues that increased costs to consumers will be offset by fuel savings over the long run. But the government numbers are based on the average cost of gasoline in 2011, with no projected increase in gas prices for 2025. It should be noted that the average price of a gallon of regular gasoline has increased from about $1.65 per gallon in Jan. 2009 to current levels near $3.50 per gallon.
Obama’s required increase in mileage for cars may provide some savings due to decreased fuel consumption, but fuel costs almost never decrease over a 10-15 year period. Therefore, it is highly unlikely that the increased cost per car can be recouped or offset by savings realized by increased fuel economy.
There are some positive signs in the car business and GM’s sales figures are showing progress. But is it enough?
Based on the economic data and analysis from many experts, the jury is still out.
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Comments (99)
slr4528
Posted on November 20, 2011 at 2:17pmRomney’s criticism of Bush and Obama was completely correct in stating that the government should not bail out the auto industry. He stated this in an Op Ed in the Wallstreet journal at the time that these events were unfolding so it was not Monday morning quarterbacking. Romney also believes we should not bail out mortgage companies. The government has no business spending tax payer dollars to pick the winners and losers.
Report Post »turkey13
Posted on November 20, 2011 at 3:59pmI wonder if the money owed to us taxpayers(26 Billion) includes the 2.7 $ billion dollars GM is going to spend on supplying Chevrolet badged motors to the Indy racing leage. Honda has been trying to get out since they took it over. This is a vast black hole that just sucks up money as if our Congress were spending it. This 2.7 billion a year will double after GM and the unions take control.
Report Post »Gold Coin & Economic News
Posted on November 20, 2011 at 4:45pmFraud, deception and just outright lying, what else do you expect from the Obama administration and the thugs they give money to? Our government and the industries it is beginning to confiscate are run by crooks. It’s all part of the decline of the west, run by Barack Obama.
Report Post »PGMike
Posted on November 20, 2011 at 7:05pm@SLR
Report Post »Very true. Mitt Romney opposed the bailout and offered a different vision for the auto industry. Had we followed his plan the US would not have lost any money in the process and the unions would not own a significant portion of GM.
Just another reason to take a good look at Mitt Romney. The Blaze-ites love to dog on Romney but he is a proven leader with not only the ideas but the experience and vision to accomplish them.
Chuck Stein
Posted on November 21, 2011 at 1:02amGood point. Also, I noticed these 2 lines:
June 2009 – GM files for bankruptcy.
and
July 2009 – GM emerges from bankruptcy.
So, GM actually DID NOT get “saved” from bankruptcy — it went into Chapter 11 and came out and then it continued making cars. Was bankruptcy so much better as an option in mid-2009 instead of late 2008? The answer is clearly “yes” — but only if you are a UAW boss.
Report Post »tcvegas
Posted on November 21, 2011 at 2:18pm@Turkey13…There is no such thing as the Indy racing league….Honda didn’t try hard enough to “get out” I suppose, since they are one of three engine suppliers (along with Lotus and Chevrolet) for the next generation car in the IndyCar Series begining 2012. “2.7 billion dollars”?? I read in the Indianapolis Business Journal that the costs to GM were estimated to be $25-50 million. The value of advertising and the testbed is substantial. You can read GM ‘s philosophy quite easily with a few clicks of the mouse….that said, I will never own a GM vehicle again…..nor any vehicle assembled by the UAW unless they go through some sort of epiphany in my lifetime…..the members are dupes but that is still no excuse to support them financially, and thats just a sad reality.
Report Post »Mike777
Posted on November 20, 2011 at 2:06pmBecause of unions I will only buy cars made in Right to Work states. Toyota makes some fine products.
Report Post »imsteph
Posted on November 20, 2011 at 2:31pmOur family too!
Report Post »LastingLiberty
Posted on November 20, 2011 at 4:02pmYea buddy! My ‘99 4runner has over 400k on that tac. Only had to swap a trannie and clutch, plus usual maintenance.
Report Post »JohnTwoFeathers
Posted on November 20, 2011 at 4:17pmI worked in a unionized company for 38 years. In that span of time I witnessed 50% of the workforce actually working aproxamately three hours out of the scheduled eight they were required. Also, in that span I went aginst the union to try to keep a young boy who was either drunk or high most of the working day from occupying a position on a high speed production line. I failed to do this and was the brunt of many jokes for almost a year. Sadly the young man was crushed by a hoist crippling him almost one year from the hearing with the union. The union rep appoligized to me and told me he knew the young man was not qualified to even be in the company but he was forced to back him on the grievance. The stories about the auto workers drinking on the job (and I bet they still do) brought back memories of that tragic accident.
Report Post »Unions are blind.
Tea
ZZBlueComet
Posted on November 20, 2011 at 5:00pmI bought Ford for years and had a few GM’s until Obama and his Union Thugs took our taxpayer money and took it over (so done with Government Motors forever). I just bought a 4×4 Tacoma Double Cab – gets about 17mpg around town, with a good V6 (236 hp), lots of room, big tires and great quality, I’m sold.
Report Post »SilverBlaze
Posted on November 20, 2011 at 5:10pmI bought an F-250 instead of a GM. Ford survives without a government bail out.
Report Post »Itchee Dryback
Posted on November 20, 2011 at 6:22pmGood idea.
Report Post »Is there ANY industry that unions have not either sunk or are in the process of turning into a financial gaping, sucking wound?
Can’t really think of any on my own…help would be appreciated.
DELTAJOHN
Posted on November 22, 2011 at 7:51amNot according to my son who is a Toyota Technician……………how many years did you work wrenching on them? You get a real good working knowledge of how a car is made by repairing them. I worked and trained GM technicians…………..I won’t own them either!
My family and I own FORDS. My other son, a state trooper, will tell you in Police work, the only vehicle that holds up to Police trouncing is the CROWN VIC. I wish they used Camry’s as police vehicles, I’d speed with impunity!!!!!!!!!!
Report Post »4X4in
Posted on November 20, 2011 at 1:55pm05 honda civic, 45 mpg if im nice. oh by the way it is an ULEV.
Report Post »Americans still can’t build one of those, SAD, if they could I would buy one!
lukerw
Posted on November 20, 2011 at 2:01pmAmericans can do and build anything… it is Government Regulation (thereby Cost) that prevents US!
Report Post »4X4in
Posted on November 20, 2011 at 4:09pmSo goverment regulation stopped them from building the kinds of cars honda and toyota have been building for 20-30years… ????????
Report Post »Itchee Dryback
Posted on November 20, 2011 at 6:31pm4X4in
Posted on November 20, 2011 at 4:09pm
So goverment regulation stopped them from building the kinds of cars honda and toyota have been building for 20-30years… ????????
____________________________________
Mostly the unions.
Report Post »US car companies could not compete with the non union poofter car producers..who had no line of larger cars, so the US companies needed to make maximize the profit on the larger car and SUV market.
Go Glenn
Posted on November 21, 2011 at 12:02pm@4X4IN
“So goverment regulation stopped them from building the kinds of cars honda and toyota have been building for 20-30years… ????????”
Ever heard of CAFE Standards? Basically, the average fuel economy of all the autos that a company builds has to be at the rate set by the government. The last time I looked, Honda didn’t sell a truck and Toyota sold only a few. Ford sells the cars and trucks that the people actually want to buy but those vehicles cost more than they should because the technology and innovation required to produce smaller cars that will raise their average, is expensive and must be subsidized by the more popular trucks and SUV’s.
Without the government intervention, trucks would cost much less than they do now. And, of course, Toyota and Honda would be way behind…..until they too developed trucks and SUV’s to compete.
Report Post »Amazingoly
Posted on November 20, 2011 at 1:45pmI just wonder how the Obamas would feel if the taxpayers removed 10 million dollars of their money and invested it in a boondoggle that went belly up? That is exactly what happened to our money in the car business and the so-called Green investments. One term and out the door.
Report Post »The-Monk
Posted on November 20, 2011 at 1:54pmThat should be a “B” for billion and don’t forget Solynda and the other solar panel companies!
Report Post »RodT82721
Posted on November 20, 2011 at 1:33pmIf the true believers of ‘Hope & Change’ ever wondered why progressives were so intent on taking over the education in this county, Barry is showing us their purpose.
Only the brain dead, heads full of mush, government educated would ever believe the crap this administration, Congress and the media feeds us today. They are lucky that a large majority of voters are now well indoctrinated and believe whatever someone tells them. Most get their news from late night comedians!
Everyone of Barry’s failed policies, from TARP right on thru to his current ‘JOBS’ program are all sold on the pretense that if we don’t do, hadn’t done, what our administration wanted we would really be in the soup!
Not just $15 Trillion in debt and sinking $1.5 Trillion a year, but really in trouble ( whatever that means). Just ask any leftist pundit and they will tell you how much better off you are today because of Barry’s wonderful policies. There historic memory does not extend back before 2008.
So now the media issue these polls that keep the faithful in line and waiting to vote for their hero and our savior, Barry the magnificent.
We have a ‘Super Committee’! The media is now pushing the news that if these supers don’t agree to cut the increase in projected spending by 10%, it will just be terrible!
Report Post »No one seems to mention that we must cut spending by 43%, today, to get back to living within our means, not 5% over 10 years.
The-Monk
Posted on November 20, 2011 at 1:52pmThe President should have the first 55.4 MPG car for his ride. Bullet proof, of course.
Report Post »Turtleman
Posted on November 20, 2011 at 1:27pm55.4 mpg average? Are you kidding me? Right now the tiniest cars from Fiat (Chrysler) are advertising 40 mpg. The only way for a fleet to average 55 mpg is if the vast majority of the cars sold are straight electric, like the Chevy Volt. OK, what does that mean to the American driver? You pay over $40K for a car that can only go 50 miles on a charge. That’s 25 out and 25 back home. What does that do to the mobility and freedom of movement we American’s have enjoyed for years. Take a trip across the country? It will take 6 years. Drive to Florida, only 3 years round trip.
Report Post »Add this to the fact that the TSA is now performing random traffic stops and another freedom lost.
After a few years we will all tell our grandchildren about the times that we were able to drive from state to state without showing papers and submitting to invasive cavity searches.
lukerw
Posted on November 20, 2011 at 1:34pmI have a 93 Ford Escort that gets 40 mpg! The Government… hinders, not helps!
Report Post »turkey13
Posted on November 20, 2011 at 3:50pmThis 50 miles round trip is an improvment! Just think that in the good old days – before cars, a good horse could go 20 miles per day and a covered wagon could only go about 12 miles.
Report Post »Fuelproof
Posted on November 20, 2011 at 4:40pmHow far can the car go if you use the heater?
Report Post »ramburner
Posted on November 20, 2011 at 5:04pmIf our Progressive “friends” would just allow HHO generation we could increase gas mileage of even V8 vehicles to 50 or more miles per gallon. Better yet, replace gas with water and run 100% HHO! This is NOT a joke. Technology is here already, look up HHO on YouTube. However, the government is NOT on our side and never has been! The government must fight the Oil lobby in order to get HHO production in every vehicle. There is NO REASON why we cannot have the comfort of the large cars and trucks and still enjoy either HUGE gas mileage benefits or 100% replacement of gasoline with water. That is; water from rain, the kitchen sink, distilled water, water from a drainage ditch and even water from the ocean! It takes approximately 27 gallons of water to travel on 100% water from the west coast to the east coast. For questions about this and other technology such as whole house electric generation from a single small nearly silent magnetic driven motor/generator, contact: AlternativeEnergy.Innovations@gmail.com
Report Post »ramburner
Posted on November 20, 2011 at 5:12pmEnvironmentalists claim they want cleaner air, so do the oil companies. Aren’t we warming the earth with auto emissions? Well, Al Gore; who is making all the money while technology fools around with emission testing and generates NO Benefit? If we convert to HHO, emissions go to nearly ZERO! HHO works on either gasoline or diesel engines. Trucks hauling our food can double their mileage easily, thus reducing the cost to get to market for ALL products. People; Do YOUR Homework, or contact AlternativeEnergy.Innovations@gmail.com and ask for a solution that meets your needs. Be specific with what you want to do.
Report Post »Thevoice
Posted on November 20, 2011 at 1:20pmAgain and again and again…..There would be no GM in this country without the bailout and the open window to the fed for GMAC..Don’t forget GMAC also had home and credit card lending that blew up .To the tune of billions ….Of course we can’t ask or really know ..No not the ..commonor….Alll their ailments covered up by the electronic magic of Ben Bernanke and his magic fingers of adding 1‘s and 0’s when needed. Please we have only a handful of industries that run on the free market principles in this country anymore.Outside of the Saturday garage sale and a few others what you have is aquasize interconnection of government and business. Subsidies and government regulation . Because we as a nation were lead into this “New age Progressive communism” ..We have now become slaves of political …non failure…What ? a political ideology …on saving something having failure …Will never happen. So today from Health care , auto manufacturing, farming, homes, transportation and on and on …each and every industry is or has to be plugged in to the government life line directly or indirectly..And this will be our undoing at some point….Because at this point again the answer to the debate is they can no longer leave go of the power and control they have acquired…And we pay and pay and pay….
Report Post »awakened09
Posted on November 20, 2011 at 1:17pmThis is exactly why Herman Cain would be a great replacement. His “in-the-trenches” experience is what this economy needs. Why do we allow most of these politicians to make so many decisions affecting businesses—WITHOUT business degrees AND experience running successful businesses? Makes no sense. Hmmm….what could possibly go wrong?! Herman, stay strong and determined–your country needs you!
Report Post »gmoneytx
Posted on November 20, 2011 at 1:08pmTo quote Mark Levin….Fecal Head!
Report Post »Jeff1000
Posted on November 20, 2011 at 1:00pmTo quote the great Mark Levin: “Everything Obama touches turns to crap. He’s a human wrecking ball.” I love Mark Levin LOL.
Report Post »FNTM
Posted on November 20, 2011 at 2:47pmIf you can put yoru head around the idea that Obama is doing everything he is doing on purpose you begin to see how successful he really is.
Report Post »JohnTwoFeathers
Posted on November 20, 2011 at 4:24pm@FNTM
Report Post »You are exactly right. He has ruined the American Dream. Hope and Change. What a hypocrate this clown is.
Tea
ThomasUSA
Posted on November 20, 2011 at 12:56pmI refuse to buy any product produced by a union that is headed by communist/socialist/ marxist union leaders. Wise up Americans in Unions… Your dues are supporting the downfall of this nation and ultimately your own livelihood. Al Gore would have ALL car companies closed.. and you are supporting all these clowns who’s real intent is to shut you and this nation down.
Report Post »paulusmaximus
Posted on November 20, 2011 at 12:54pmJust wondering, can the U.S. be named co-defendant in the next bankruptcy?
Report Post »Mikev5
Posted on November 20, 2011 at 12:53pmClassic good long lasting old Dodge Dakota truck these are long lasting dependable trucks not the slickest or most refined of trucks but very dependable and long lasting 200K to 300K and up what do you think?
http://dodgeforum.com/forum/2nd-gen-dakota/72866-highest-miles-on-a-dd-3.html
Report Post »lvjohn
Posted on November 20, 2011 at 12:47pmDon’t buy GM or Chrysler, Ford is the only true US automobile company left.
Report Post »firenate
Posted on November 20, 2011 at 1:08pmI am not a FAN of FORD (although I drive a MAZDA PU truck which is a “Closit Ford Ranger”lol) I don’t care for their styling, their prices/financing, or their reliability BUT I would buy one meerly on principle! FORD is a model of successful corporate capitalism and they are an example of the American Dream! They are true american patriots!
Report Post »Outlaw_Josey_Wales
Posted on November 20, 2011 at 2:31pmI bought GM cars and trucks for forty years. I‘m going to be buying Ford’s from now on.
Report Post »hauschild
Posted on November 20, 2011 at 12:37pmGM is a sham.
I‘ll question anybody’s motives that purchased a GM product after 2008 because not only are their offerings inferior, but they embody a corrupted political system that makes its primary living off feeding propaganda to complete idiots.
I get a kick out of all the people on this board that claim they want change, and then support something so anti-American like GM.
I’m now completely convinced that it will take yet another election cycle for the vast majority to get their heads screwed on straight.
Report Post »oldguy49
Posted on November 20, 2011 at 12:44pmone word……..FORD
Report Post »FNTM
Posted on November 20, 2011 at 2:45pmTwo more words: Hyundai and Kia. Made in Alabama and South Georgia. The Kia plant is amazing with how they build their vehicles. Several of the parts manufacturers are on-site with parts being conveyor belted into the auto assembly plant on an as-need basis.
And just think of all the US workers.
Report Post »dylan
Posted on November 20, 2011 at 12:26pmThank God I purchased a Toyota LC before the horror of the nuclear disaster happened–I’m over 60 and will use it until forever!
Report Post »positive1
Posted on November 20, 2011 at 12:35pmWhat I find Amazing in a “FREE MARKET” Is the close relationship between MPG and the price of gas. Why is it that since the 1980′s all new vehicles, and their MPG (national average) year after year, seem to always reflect the same cost per mile WHICH IS .10 cents for fuel?
This makes older models in years past unaffordable due to the fuel costs? We are force by our government and car manufacturers to buy new vehicles because of the cost of fuel (cost per mile). the oil market, our food prices, and the price of gas are all now being manipulated & controlled with QE1,2,AND SOON 3. LIKE INSIDER TRADING. in a so called, free market.
Report Post »Snowleopard {gallery of cat folks}
Posted on November 20, 2011 at 12:21pmNotice how Mr Obama used such phrases as the fact of the taxpayers having gotten the money back invested (i.e. shoved into) Government Motors? So only for a political figure sees a net LOSS of over half the investment as a win…and for one good reason, if I recall most of the stocks and such actually went to the auto workers unions first…and all debts were paid to the unions first in the usual level of political cronism of the administration.
Report Post »Proud Stray Dog
Posted on November 20, 2011 at 12:10pmIf we were still in a true free-market capitalistic society, GM and Chryco would have went bust long time ago. GM cars have steadilly gone downhill since the 70′s, and Chryco after Iaccoca left when Chryco sold to Daimler-Benz(who admitted they only wanted Chryco for the tax write-off, and almost buried the company with crappy cars in the 90′s). Now they come out with new fuel standards? Reminds me of the Yugo in the 80′s. This is the future of American cars under the new regs.
Most of those pencil-necked idiots in DC have never driven in real world conditions. Case in point, the Volt. Here in the NW, temps are below zero in places already. My neighbor has a Volt, and guess what? It’s a nice lawn ornament right now. The batteries are too cold to function. He doesn’t have a garage, and now he’s looking at possibly having to replace them when it warms up next spring. His wife had a Smart-4-2 last winter. It ended up sliding off the icy roads and flipped in the ditch. She since bought a 4×4 SUV for the winter, and drives the Smart in the summer.
Government Motors: We build it, and eventually you will be forced to buy it.
Report Post »truthseekerusa
Posted on November 20, 2011 at 11:57amObama can fool some of the people some of the times but not all of the people all of the time. Suckers who bought GM stock based on their confidence in Obama have now lost 35 percent of their investment. Smart investors who knew the score dumped GM stock when it peaked, dummies held on to it exactly the way they hang onto Obama.
Report Post »Al J Zira
Posted on November 20, 2011 at 12:25pmObama only has to fool the right amount of people at the right time in order to keep this fiasco going.
Report Post »georgeisn6
Posted on November 20, 2011 at 11:56amWhat is standing in the way of GM makeing us all rich? The answer too that is that those poor little UAW workers are now limited too one beer and maijuana lunch brake per shift, now if they could just double there lunch time, then maby they could double production of those great autos that cant be controled when on the highway and burst into flames when parked:
Report Post »Mikev5
Posted on November 20, 2011 at 11:44amSmoke and mirrors that’s all GM is move the money around hide the bills pump up the stock with these hidden figures and hope the stupid people buy into it with stock offerings.
Talk about Ponzi scam GM is a big one
Report Post »Unix
Posted on November 20, 2011 at 12:06pmIndeed, the game is rigged right now, too much free money floating bad debt and investments. The canary in the coalmine was MF Global, look out bondholders, actually, every investment class is over leveraged, and the bubble is close to popping. EU will have an influence – as Italy is the 3rd largest bondholder in the world. Greece, not as big, but equally dangerous, in a different way, they are flat broke, bankrupt, and kaput. Spain is brewing up nicely now…dominoes my friends.
USA is in the same stinking boat, but we are still the worlds reserve currency, but I say that status is in danger too. Whenever a country has Debt to GDP ratio of 100%, it fails.
The thin Venire of our economy and safety is about to be severely tested, are you prepared? Truly prepared?
I don’t think even new leaders will be able to fix these things, with gridlock in DC, and a $15 trillion debt, default and bankruptsy looms larger than ever, or STAGFLATION. Either way, a bad scenario, my bet is stagflation, we are basically in that now, cronic high unemployment, stagnant wages, what we are lacking is hyperinflation, but with the printing presses going full steam ahead, shouldn’t be long now. We have an effect inflation rate of between 8-10% right now, the goofballs in Gov’t and the Fed feed you lies. Unemployment is at 16%+, yet they tell you it is 9%? Inflation at 2%? What baldface lies…they should ALL be impeached, but I’ll go along with voting them out…for now!
V
Report Post »Maidoff101
Posted on November 20, 2011 at 12:09pmAs is Obamacare, Stimulus 1,and 2 The “Jobs bill” The Super Duper un elected Commitee, Qe1 Qe2, and Political “Insider Trading” Chicago comes to Washington!
Report Post »The-Monk
Posted on November 20, 2011 at 1:57pm@Maidoff101
The United States of Chicago is Obama’s dream.
Report Post »progressiveslayer
Posted on November 20, 2011 at 11:42amYa gotta love that central planning,worked great for tho old Soviet Union didn’t it?Come on Barry you can waste more of our money I’m sure,you Marxist POS.Look at GM’s stock performance,billions wasted and so much more to waste before you’re fired.
Report Post »CatB
Posted on November 20, 2011 at 12:01pmAgreed .. government has NO business bailing out any private business … it doesn’t “end” well .. for the TAXPAYERS….. and we are also the investors who get screwed over by the unions and the company also .. double whammy.
TEA!
Report Post »Mikev5
Posted on November 20, 2011 at 1:36pmcentral planning means those on top with power get everything the rest of us pesents get nothing
Report Post »Mikev5
Posted on November 20, 2011 at 10:56pmHave we all forgotten the food lines that were so common in Russia the lack of food choices and amount you could buy, no gas for your car if you could afford a car NOT life in Communist Russia was a nightmare at best why would anyone with a brain want something like that???
A Country that controls your life is no life at all its slavery these people that want our Government to control and direct out life have no clue what they are getting into.
Report Post »FNTM
Posted on November 20, 2011 at 11:39amI don‘t know about the others here but I can’t stand half the truth or BS lies. Ed Whitacre knew precisely what he was lying about when he said loans were paid off. I did the same kind of half-truth lies when I was reporting results. But the author of this story, Mike used the same kind of BS lying when he was referring to the savings on gas from the CAFE increases. If I save 2/3 of the price of gas if it is $10 a gallon or $3 a gallon I am saving considerable money. I am definitely not saving less as he alludes to if the price of gas increases to $10 a gallon using any alternatives. Mike is doing BS half truth lying too!
It would be so nice if executives, politicains and article writers (used to be journalists) would stop BS lying. Way too many of us are wise to what these people are doing and do not appreciate being treated as though we are bumpkins.
Report Post »13th Imam
Posted on November 20, 2011 at 12:25pmWas the actual article correct regarding the Bailout and payback?? That is the crux of the story, not Cafe Standards. Seems to me if 30 mpg is ok, 55 mpg would be twice as good, might as well make it 1000 mpg. It works much like the Minimum Wage Scam
Report Post »Mike Opelka
Posted on November 20, 2011 at 2:32pmNo lies… Do the math with me. If the average driver travels 20,000 miles / year… and his/her car gets 25mpg… they would require 800 gallons of gas @ $3.50 / gallon… or $2800 a year.
Fast forward to 2025… 20,000 miles / year… at 50mpg… it would require 400 gallons of gas… and properly estimating gas at $10.00/gallon – the cost would be $4000 a year.
Report Post »FNTM
Posted on November 20, 2011 at 2:37pmMike – you are right but looking at the problem in the worng way. Fast forward to 2025 – 20K per year. You are driving a car that gets 15MPG, the old non-upgraded standard. Or you could be driving a car with the upgraded standard. Save a lot of money no matter what the price of gas owudl be as the price is one of the constants in the equation. You set the mileage per year as a constant. That leaves MFG as the variable. Do the math again.
Report Post »joleary
Posted on November 20, 2011 at 11:38amYou would think that with all that manure he would be able to grow anything, even an economy. Baaa, Baaa, Baaa!!!
Report Post »NOBALONEY
Posted on November 20, 2011 at 11:26amIn His Weekly Address President Obama lauded the GM bailout!
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