Obama wants to treat every industry like the auto industry
Nobama is campaigning on the success of the GM bailout. He went so far as to say he wants to do the same for every industry. Success?
A new Treasury report said it now expects to lose $25 billion on the bailout, $3.3 billion more than forecast earlier. As the Detroit News reported, this loss was based on GM’s stock price at the time of the report, which was 15% higher than the previous report. Because the stock price has fallen since then, the latest report likely understates taxpayers’ real losses.
The monthly report sent to Congress last Friday covers predicted losses through May 31, when GM’s stock price was $22.20 a share.
On Tuesday, GM fell $0.26, or 1.3%, to $20.21.
At that price, the government would lose another $995 million on its GM bailout.
As bad as losing $25B of tax payer money is – and it is – the story is actually much worse.
Worse yet, the entire financial loss suffered by taxpayers is the result of a massive and planned redistribution of wealth from them to the auto unions that form a key part of Obama’s base and re-election drive. In its analysis, the Heritage Foundation says all the taxpayer losses occurred because the administration manipulated bankruptcy law to shelter the United Auto Workers’ compensation. “We estimate that the administration redistributed $26.5 billion more to the UAW than it would have received had it been treated as it usually would in bankruptcy proceedings. … Thus, the entire loss to the taxpayers from the auto bailout comes from the funds diverted to the UAW,” Heritage reckons.
Read that and let it sink in. Nobama and the Dems run around trying to claim the moral high ground on every conversation. In the end, everything they do is a means to an end. One more bribe to a key voting block. One more step towards the Peoples Republic of America.