Is GM already on track to go bankrupt, again?



“When the American auto industry was on the brink of collapse, more than one million jobs at stake, Gov. Romney said, ‘let’s let Detroit go bankrupt.’ I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back. And GM’s number one…”

That was just last week, during one of President Obama’s campaign stops in Colorado. President Obama can often be heard these days touting the ostensible success of his auto-industry bailouts in rescuing the industry, while scolding Mitt Romney for his oh-so-callous prescription to merely allow Detroit to go bankrupt. Yes, because quelle horreur that any company that employs a relatively large number of people should be forced to compete based on free-market signals rather than being coddled by the political whimsy of federal assistance. Federal bailouts are a product of short-term thinking that rewards and perpetuates poor decision-making — allowing a company to go bankrupt might cause pain in the short-term, but in the long-term leads to economic growth and efficiency.

President Obama claims he’d like to do the same in every manufacturing industry, not just the auto industry — because GM is number one again! …Apparently, under Obamanomics, this is what “success” looks like, reports Forbes:


President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion. …

In the 1960s, GM averaged a 48.3% share of the U.S. car and truck market. For the first 7 months of 2012, their market share was 18.0%, down from 20.0% for the same period in 2011. With a loss of market share comes a loss of relative cost-competitiveness. There is only so much market share that GM can lose before it would no longer have the resources to attempt to recover.

And unexpectedly, of course, this is all costing the taxpayer quite a bit more than the Obama administration originally thought. Unusual, right?


But, in a report sent to Congress, the White House raised to $25.1 billion the amount it said it cannot now expect to recover – primarily by selling off the remaining 26% stake it still holds in GM. The previous quarterly estimate was $21.7 billion. On the other hand, the latest figure is about 45% less than the $44 billion the Obama Administration had once predicted.

But hey, who could’ve seen this coming? No, really, I mean it — who?


If General Motors, Ford and Chrysler get the bailout that their chief executives asked for on Tuesday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. …

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course – the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check. …

The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs.

http://hotair.com/archives/2012/08/16/is-gm-already-on-track-to-go-bankrupt-again/

ya know, youd have actual CREDIBILITY if you just showed what the other guy does right, if anything.

Negative campaigns just turn off voters. Any real politico would know that, but a nosy ninny, well, might not be bright enough to think that far into the future.

You would have some credibility as well if u bothered to help a single handicapped person on the webpage..but we both know u havent..Ive had to step in on several occasions to do what you clownshoes wont...



So do negative threads....and you, sticky icky's personal hate thread towards mr. Hand and timJ's "repuke" threads are an excellent example of that.

You are just as dumb as Hand. I don't trust either side, and have stated that publicly for over 30 years. I've voted more for republicans than democrats in that 30 years. You are just another excuser of bad behavior by people you should know better than to trust.

Unless of course, they pay your bills Mr Anonymous.

We have just seen Obamas 3.5 year track record of socialist crap economics. One thing is for sure, he won't be having the keys to the bus next year.

So you think another non-driver Rep. will do better? Look at their budget it adds 5 Trillion dollars to the debt.

Obama hasn't even posted a budget let alone crystal ball Romney's.
Your info comes from clowns like Rachel Maddow and Ed Schults.

Everyone knows the Congress creates and approves the budget. Anyone who remembers the "first 100 days of the Republican Congress" knows that Clinton shut down the US govt(partially) when the congress refused to submit the budget bill he wanted to see, for signing in 1995, after he vetoed the bill congress submitted.

Best year of my life. Shut it all down.

LOL hand my info is based on what happens when you cut social spending but increase military spending more than you cut plus you cut tax's. OOPS! I guess would be Rep. response in 2014.

Miracle in the Midwest: how Ohio balanced her budget
JULY 30, 2011 BY CAROL GREENBERG
Thanks to out of control spending and irresponsible budgeting, credit agencies are preparing to downgrade the credit rating of the United States.
Meanwhile, thanks to how Governor Kasich balanced the Ohio budget, S&P just recently upgraded Ohio’s credit outlook.
For Ohio, the rating was revised from “negative” to “stable” after Gov. John Kasich signed a new budget the ratings agency says will essentially balance the state’s finances for the next two years. S&P also said Ohio is experiencing a modest economic recovery which has stabilized revenue.
So how did Ohio eliminate the largest budget shortfall in its history; all the while eliminating the estate tax and maintaining an 800 million income tax cut?
In the following video, Gov. Kasich explains how he did what he does best – fix budgets:

http://conservative-outlooks.com/2011/07/30/miracle-in-the-midwest-how-ohio-balanced-her-budget/
-----------------------------------------------------Since President Obama took office, more than 50 major weapons programs at a value of more than $300 billion were cut or delayed. On top of this, the Administration told the military to cut almost $600 billion more over the next 15 years. And that’s before any cuts under the Budget Control Act take place.
Get the facts on defense spending in our fact sheet: Defense Budget is Being Cut: By Any Way You Look at It.http://blog.heritage.org/2012/05/02/in-pictures-defense-spending-plummets-under-obamas-budget/