By
Angel, on July 12th, 2012
Remember
how obama keeps telling us how he saved GM, and how our economy is getting
better, it seems the car company he bought is being saved by Govt employees
using our tax money to buy new cars. 79% of GM’s sales last month was
government purchased.
GM’s
sales figures for last month were the best since 2008 , up 16% for the month of
June. YIPPEE! Well, wait just a minute. It seems that those rosey sales figures
are due primarily to a 79% increase in fleet sales to the U.S.government in
June. That’s right. Our tax dollars are being used to pump up GM’s sales
figures ahead of next month’s quarterly report so that Dear Leader can point to
Government Motors as a huge success. The incestuous relationship between GM,
the UAW and the Regime has never been more glaringly apparent. I’ve said it
before and I’ll say it again. GM is unsustainable without government subsidies
and will ultimately go bust again, taking billions of taxpayer dollars down
with it.
We
bailed out General Motors to the tune of $50 billion. $30 billion of this is
effectively a loss, mostly sunk into fattening the United Auto Workers
union—fierce Obama supporters—while the actual bondholders were shown the
elevator shaft.
Meanwhile, as NewsBusters reports, “We the Taxpayers are still stuck holding 500+ million shares of GM stock. Which we need to sell at $53 per. Which debuted post-bankruptcy at $33 per. And which is currently trading at just over $20 per. Meaning we’ll lose about $15 billion.”
Meanwhile, as NewsBusters reports, “We the Taxpayers are still stuck holding 500+ million shares of GM stock. Which we need to sell at $53 per. Which debuted post-bankruptcy at $33 per. And which is currently trading at just over $20 per. Meaning we’ll lose about $15 billion.”
But
it gets better. Despite the overwhelming negatives, the tiny bright spot of
positive June sales numbers is being heralded by Obama and the leftist press as
proof the auto bailout was a “success.”
Obama
is now campaigning on the “success” of – the government buying cars from…the
government’s car company. With our money.
Americanvision
says That’s like you setting up a lemonade stand for your kids. You buy
them the lemons, sugar, cups and pitchers – and then buy most of the lemonade
yourself.
The
pressure is on Government Motors to appear financially strong as this may be
the last earnings report before November elections and sets the stage for how
“successful” GM is. One of GM’s past tricks to help fudge earnings numbers has
been to stuff truck inventory channels. Old habits die hard at GM. According to
a Bloomberg report, “GM said inventory of its full-size pickups, which will be
refreshed next year, climbed to 238,194 at the end of June, a 135 days supply,
up from 116 days at the end of May.” 135 days supply is huge, the accepted norm
is a 60 day supply. The trick here is that GM records revenue when vehicles go
into dealership inventories, not when actually sold to consumers.
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