Today, Government Motors will issue an "initial" public offering of taxpayer-owned GM stock. While the taxpayers and shafted secured debt holders of GM paid for GM's bailout, the taxpayers took about a half interest in Government Motors and Obama gave the other half to the UAW, which invested nothing. Obama's justification that the labor of the UAW workers on the line amounts to corporate capital is straight out of Karl Marx's Das Kaptial.
Today's Government Motors stock firesale means that the taxpayers will see a permanent loss of over 9 billion dollars on the GM bailout. Furthermore, it will make the UAW the largest single shareholder and corporate controller of Government Motors.
In their wildest dreams the union thugs in this country would never have imagined that a president would transfer the ownership of GM to the unions, but it has indeed occurred -- and financed by the taxpayers and secured debt holders of GM to boot!
The transfer of taxpayer wealth to unions continues unabated, and more generosity to Government Motors new union owners is forthcoming. Wait until Obama and the Democrats forgive the loans to Government Motors Ed Whiteacre lied about repaying.
Showing posts with label Ed Whitacre. Show all posts
Showing posts with label Ed Whitacre. Show all posts
Thursday, November 18, 2010
Thursday, July 22, 2010
GM Continues to Rob Taxpayers
GM announced today that it is taking $3,100,000,000.00 of the taxpayer money it has lying around (and lied about repaying "in full") and using this taxpayer money for purchasing a sub-prime lending firm. Recall that GM jettisoned their own dying credit arm GMAC (now the ironically named "Ally" Bank) into the TARP bailout fund.
The Obama Administration has used your hard-earned tax dollars to enrich his union enablers the UAW as surely as if he personally put their hands in your wallet. While GM is still overbloated and losing money, they are spending your tax dollars to take a profitable business down with them.
In what world turned upside down does this make any economic, financial, business, or political sense?
The Obama Administration has used your hard-earned tax dollars to enrich his union enablers the UAW as surely as if he personally put their hands in your wallet. While GM is still overbloated and losing money, they are spending your tax dollars to take a profitable business down with them.
In what world turned upside down does this make any economic, financial, business, or political sense?
Friday, April 23, 2010
Open Letter to Ed Whitacre
Dear Ed,
I've just seen Government Motor's (GM) new television advertisement (bought with taxpayer funds) where you claim "...we have repaid our government loan, in full, with interest..."
This announcement comes after GM paid less than 7 billion dollars to the U.S. Treasury.
Your commercial implies GM only had one loan from the US Government, that it was less than 7 billion dollars, and that you are now free and clear of taxpayer bailout funds. One might even reasonably imply from your commercial that the funds you paid were out of earnings from GM since the loan.
You and I both know that this is not the case at all. The "loan" does not even begin to cover the amount of taxpayer-funded bailout.
Off the top of my head, I can demonstrate that GM received all of the following taxpayer bailout funding for GM's "second chance":
Auto Supplier Support Program: GM received not less than 2.5 Billion dollars of taxpayer money
Automotive Industry Financing Program: GM received not less than 49 Billion dollars of taxpayer money
This does not even include the 13+ Billion dollars of taxpayer money received by GMAC, GM's financing arm.
Let's also be honest about where the "loan repayment" money came from: you have paid off taxpayer loans with other taxpayer "investment" dollars, not earnings from car sales. I can read your SEC filings.
As to your remarks about paying the "loan" back "with interest", after hearing of your statements, even the White House had to issue a statement saying that the taxpayers will almost certainly LOSE MONEY on the GM investments. That is not interest; it's a loss.
I also recall that one of the lynchpin arguments in support of the Automotive Industry Financing Program was that it was necessary to save American jobs. Yet since the socialization of GM, 65,000 jobs were cut by GM. It seems redundant to point out that GM could have accomplished the same thing in bankruptcy restructuring without requiring the taxpayers to foot the bill.
This commercial of yours will go down in history as one of the most disingenuous commercials ever to be aired on American television. I could not even characterize your statements has half truths - the lies by omission in this ad are monumental and inexcusable.
I challenge you, Ed Whitacre, to immediately pull this ad and replace it with an ad that correctly lays out what GM has received from the American taxpayers, what has been returned to the taxpayers due to actual profits generated by GM, and together with the UAW beneficiaries of all this American taxpayer largesse, thank all the taxpayers for the help and beg us to be merciful on your failing, disingenuous welfare case of a corporation.
I've just seen Government Motor's (GM) new television advertisement (bought with taxpayer funds) where you claim "...we have repaid our government loan, in full, with interest..."
This announcement comes after GM paid less than 7 billion dollars to the U.S. Treasury.
Your commercial implies GM only had one loan from the US Government, that it was less than 7 billion dollars, and that you are now free and clear of taxpayer bailout funds. One might even reasonably imply from your commercial that the funds you paid were out of earnings from GM since the loan.
You and I both know that this is not the case at all. The "loan" does not even begin to cover the amount of taxpayer-funded bailout.
Off the top of my head, I can demonstrate that GM received all of the following taxpayer bailout funding for GM's "second chance":
Auto Supplier Support Program: GM received not less than 2.5 Billion dollars of taxpayer money
Automotive Industry Financing Program: GM received not less than 49 Billion dollars of taxpayer money
This does not even include the 13+ Billion dollars of taxpayer money received by GMAC, GM's financing arm.
Let's also be honest about where the "loan repayment" money came from: you have paid off taxpayer loans with other taxpayer "investment" dollars, not earnings from car sales. I can read your SEC filings.
As to your remarks about paying the "loan" back "with interest", after hearing of your statements, even the White House had to issue a statement saying that the taxpayers will almost certainly LOSE MONEY on the GM investments. That is not interest; it's a loss.
I also recall that one of the lynchpin arguments in support of the Automotive Industry Financing Program was that it was necessary to save American jobs. Yet since the socialization of GM, 65,000 jobs were cut by GM. It seems redundant to point out that GM could have accomplished the same thing in bankruptcy restructuring without requiring the taxpayers to foot the bill.
This commercial of yours will go down in history as one of the most disingenuous commercials ever to be aired on American television. I could not even characterize your statements has half truths - the lies by omission in this ad are monumental and inexcusable.
I challenge you, Ed Whitacre, to immediately pull this ad and replace it with an ad that correctly lays out what GM has received from the American taxpayers, what has been returned to the taxpayers due to actual profits generated by GM, and together with the UAW beneficiaries of all this American taxpayer largesse, thank all the taxpayers for the help and beg us to be merciful on your failing, disingenuous welfare case of a corporation.
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