Joe Biden's Speech at the DNC tonight - will he say "GM is alive and OBL is dead?"

LadyEagle · Sep 6, 2012

Joe came up with a famous bumper sticker line:

"GM is alive and Osama bin Laden is dead."

So, a few pesky facts to keep in mind about GM. (Granted, Bush had his hands in this fine mess for the auto bailouts, as well, but it went down under obama.)

FACT: Not everyone was a winner in the auto bailout, common share stockholders and especially tax payers lost big time.

This is a great read that covers all the details:

Common-share stock holders were completely wiped out, when GM emerged from bankruptcy, all shares in the "old" GM were worthless since the "old" GM didn't exist anymore.

<snipped>

GM was allowed to retain a $45 billion business-loss tax credit, carried forth from the "old" GM to the "New" GM - a practice unheard of in bankruptcy proceedings, essentially adding a $45 billion "gift" to off-set tax liabilities of the new company.

GM did not payback the TARP loans as their <Obama administration - LE> announcement appeared to say. They only paid back one particular loan package of $6.7 billion - not the $49.5 billion the announcement implied. Even worse was that GM also did not repay the loan with monies and profits from the newly invigorated company - they paid it back with more TARP funds from another TARP escrow account, none of the repayment funds came from GM monies.

And Obama's administration knew this, and as shown above, actually helped compose and orchestrate the public announcements that deceived the public.

The Obama administration also took to the airwaves, proclaiming GM's announcement of 2011 1st quarter profits of $3.7 billion dollars, as proof of the success of their bailout efforts in saving the auto industry. President Obama even held a press conference to proclaim this as a sign of of the success of his administrations bailout efforts.

But, it wasn't true. $1.5 billion of that $3.7 billion came directly from the spin-off sale of GM's Delphi group, and a couple other smaller business units, and had nothing to do with sales and operational profits.. Leaving a real operational profit of only $1.2 billion, which was less than Ford's "non-government" assisted profits for the same quarter. The $1.2 billion number was even more misleading because it did not include any tax costs, (but Ford's numbers did), due to the $45 billion tax-loss "gift" the bankruptcy court allowed GM to carry forward onto the new company's books.
Click to expand...

http://gaanderson.hubpages.com/hub/Obama-General-Motors-GM-Tarp-Bailout-Untold-Details

Letter to the Editor at USA Today:

.....As a former GM stockholder I was, and am, against government intervention before letting the market system run its course. The government has no business trying to run a business when it can't even run itself, and now it is going to tell the health insurance companies what they will and will not cover. What's next on the Obama administration's list?

I disagree with your editorial's premise that the auto bailout worked because it certainly didn't work for me. I and many other former GM stockholders got absolutely nothing for our shares of stock (and, yes, this probably would have been the same result had they gone through bankruptcy without government financing).

The bailout worked best for President Obama, who took care of the unions, thus ensuring their continued financial support and votes for his re-election. To borrow words from an old country tune: He got the gold mine, and we got the shaft.

Jack W. Maxwell; Jefferson City, Mo.
Click to expand...

http://www.usatoday.com/news/opinion/letters/story/2012-02-27/auto-bailout-gm-chrysler/53275464/1

Arbo · Sep 6, 2012

Facts don't matter. Bumper sticker slogans do.

saturneptune · Sep 6, 2012

One wonders if he can get his foot out of his mouth long enough to deliever the speech.

InTheLight · Sep 6, 2012

GM stock price about 18 months ago--mid $30's a share.

GM stock price now-$22 a share.

poncho · Sep 6, 2012

I'm still waiting for the delivery of the GM automobile I was forced to pay for.

LadyEagle · Sep 7, 2012

Looks like I was right - Joe's speech was about GM and OBL!! I ask - Where is the plan to put American's back to work? Why, Joe, should Obama get 4 more years to live up to the promises he made 4 years ago. And, Joe, GM still owes taxpayers money and the common stock holders got zero. And OBL? Our special forces would have gotten him eventually anyway. Any President would have given the order. That's hardly unique to Obama.

saturneptune · Sep 7, 2012

The only thing unique about Biden's speech is that it was slightly better than Obama's. The bottom line is, everyone tune into the VP debate. It is the number one show until election day.

Joe Biden's Speech at the DNC tonight - will he say "GM is alive and OBL is dead?"

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