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President Obama’s phony accounting on the auto industry bailout
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What we found is one of the most misleading collections of assertions we have seen in a short presidential speech. Virtually every claim by the president regarding the auto industry needs an asterisk, just like the fine print in that too-good-to-be-true car loan.
Well, that's basically true of ALL his statements...and they come with an expiration date too.
Quote:
The president is straining too hard. If the auto industry bailout is really a success, there should be no need to resort to trumped-up rhetoric and phony accounting to make your case.
That's about all he has to point to as an accomplishment, but when the FACTS come out, like they paid back the loans with borrowed money, I doubt the hype will go over well with the American people.
Obama doesn't understand - it's HOW he went about forcing an unconventional bankruptcy...so his union goons could benefit from the deal and the original investors could get screwed.
A very good piece, detailing all the nasty details obama doesn't want you to know.
The problem with this happy story is that neither of its parts is accurate. Commandeering the bankruptcy process was not, as apologists for the bailouts claim, the only hope for GM and Chrysler. And the long-term costs of the bailouts will be enormous.
By your own link Obama made money on his loan to Chrysler.
So much so, it almost made up for Bush's loan to Chrysler.
So all in all Chrysler paid back 11.2 Bil on the 12.5 Bil in loans.
your link
the U.S. government will receive $11.2 billion back from Chrysler, far more than the $8.5 billion Obama extended.
the White House can conveniently ignore Bush’s loan, but even the Treasury Department admits that U.S. taxpayers will not recoup about $1.3 billion of the entire $12.5 billion investment when all is said and done."
By your own link Obama made money on his loan to Chrysler.
So much so, it almost made up for Bush's loan to Chrysler.
So all in all Chrysler paid back 11.2 Bil on the 12.5 Bil in loans.
your link
the U.S. government will receive $11.2 billion back from Chrysler, far more than the $8.5 billion Obama extended.
the White House can conveniently ignore Bush’s loan, but even the Treasury Department admits that U.S. taxpayers will not recoup about $1.3 billion of the entire $12.5 billion investment when all is said and done."
Can you read your own post?
Quote:
but even the Treasury Department admits that U.S. taxpayers will not recoup about $1.3 billion of the entire $12.5 billion investment when all is said and done
Doesn't count the "loan" that Chrysler got to "payback" another loan. Or GM - same thing - borrowed money to pay back a loan.
GM DOES NOT want obama touting the partnership in the campaign.
Govt to lose $14B of auto bailout funds - Yahoo! News (http://news.yahoo.com/s/ap/20110601/ap_on_re_us/us_obama_autos_2 - broken link)
General Motors was a perfectly viable company that could have been restructured under the ordinary reorganization process.
Um....
.....the failure of GM would likely trigger the bankruptcy of hundreds of suppliers and other companies that rely upon GM. Auto parts supplier Delphi filed for Chapter 11 in October 2005, and still languishes there. (Six years later.....)
President Obama’s phony accounting on the auto industry bailout
Well, that's basically true of ALL his statements...and they come with an expiration date too.
That's about all he has to point to as an accomplishment, but when the FACTS come out, like they paid back the loans with borrowed money, I doubt the hype will go over well with the American people.
Obama doesn't understand - it's HOW he went about forcing an unconventional bankruptcy...so his union goons could benefit from the deal and the original investors could get screwed.
A very good piece, detailing all the nasty details obama doesn't want you to know.
General Motors was a perfectly viable company that could have been restructured under the ordinary reorganization process.
Um....
.....the failure of GM would likely trigger the bankruptcy of hundreds of suppliers and other companies that rely upon GM. Auto parts supplier Delphi filed for Chapter 11 in October 2005, and still languishes there. (Six years later.....)
So? That is why bankruptcy protection was created to protect companies while they reorganize. Under your assertion we should never have ended World War Two because the jobs were needed to keep the country from returning back to the Great Depression.
General Motors was a perfectly viable company that could have been restructured under the ordinary reorganization process.
Um....
.....the failure of GM would likely trigger the bankruptcy of hundreds of suppliers and other companies that rely upon GM. Auto parts supplier Delphi filed for Chapter 11 in October 2005, and still languishes there. (Six years later.....)
So it's the government's responsibility to bail out and restructure financially unsound businesses for the sake of "jobs" ?
Ford did not need nor take any bailout and they are doing better today than either of the bailout babies.
You also have Honda and Toyota which had to make do all on their own.
General Motors was a perfectly viable company that could have been restructured under the ordinary reorganization process.
Um....
.....the failure of GM would likely trigger the bankruptcy of hundreds of suppliers and other companies that rely upon GM. Auto parts supplier Delphi filed for Chapter 11 in October 2005, and still languishes there. (Six years later.....)
The NORMAL bankruptcy process would have allowed both companies to get out from under the labor cost burden that was killing them and will continue to kill them.
Obama screwed the original investors and GAVE almost 50% of the company to the unions.
He SAVED the union pensions and prime salaries/benefits...that's all.
Now if only factchecker will review his statements about his health care plan. Let's start with- you can't keep your doctor, you can keep your plan, your premiums will go down.
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