The GM “Government Motors” Recovery Myth

As the Obama Administration, and sycophants in the Media, continue to spin the General Motors bailout as a success it is important to take a look at the facts. The first important fact is that General Motors would be bankrupt again without additional government intervention and other facts such as:

1. GM continues to fall short of sales goals despite “channel stuffing” (forcing dealers to take inventory they don’t need).

2. A high percentage of vehicles sold currently is being sold to the Government.

3. September sales fell 50% below estimates.

Much has been made of GM paying back the stimulus. Fact is:

1. GM paid back only the portion of stimulus that was a loan. $6.7 billion.

2. The Taxpayer is still on the hook for $25 billion in stock ownership that will most likely never be recovered.

3. The taxpayer is still on the hook for an additional $59 billion in tax breaks that is never mentioned.

And the human toll is too often forgotten:

1. 2,200 dealerships closed which cost 120,000 jobs.

2. Delphi retirees screwed to protect UAW cronies.

3. Bond holders screwed to protect UAW cronies.

Next time you hear President Obama extoll the success of the GM bailout remember the above.