OBAMA'S GM BAILOUT FARCE

Almost from the moment the Democrat Convention slammed its opening gavel on the podium until the final gavel last Thursday night, speaker after speaker and video after video bragged about the great General Motors bailout and how Obama saved 1.5 million jobs and the auto industry single handily by forking over billions of tax payer dollars in 2009 soon after taking office.

I was also amazed to hear Obama and speaker after speaker from Bubba Clinton on down the line of liberal ideologues throw Ford Motor Company into the saved by Obama's massive government bailout mix.  Playing on the short term memory of most American voters who I am quite sure have forgotten that Ford refused the bailout money and stood on their own two feet, restructured the company and in actuality are the ONLY American auto company that is making a profit and selling cars at a rate that is competitive with especially the Japanese and Korean car manufacturers who control the lions share of the car market.

Short term voter memory and lying Democrats also forget just how not only controversial but technically illegal Obama's GM bailout was when is occurred in 2009.  Obama's, "bailout," nationalized GM as the US government through tax payer dollars became the owner of 60% of GM stock which crashed soon after the bailout and has yet to recover more than three years later.

Voters and Democrats forget that Obama violated normal bankruptcy laws and other legal precedents forcing GM share holders to lose almost all of their holdings while turning over most of GM shares to the United Auto Workers Union to protect ridiculous labor contracts that prevented the company from restructuring and downsizing its labor force.  Additionally structured in the the bailout were illegal creatively constructed relief of certain tax laws that allowed GM to be relieved of tens of billions of dollars in tax obligations while the Obama administration was condemning other companies as unpatriotic for using legal means to reduce their tax burden.

The 1.5 million jobs they claim to have saved is also based on their assumption that had GM and Chrysler declared a restructuring bankruptcy that both companies would have closed and taken with them the thousands of parts suppliers etc. who worked with the auto manufacturers. Anyone with the least amount of knowledge about bankruptcy restructuring, INCLUDING, the Democrat liars club, knows that companies DO NOT close during a bankruptcy of this type but continue to operate during financial reconstruction.

Bubba Clinton's claim that the bailout created an additional 250,000 jobs is also an extreme stretch of the truth. While the auto industry as a whole has created 236,000 jobs since the bailout ONLY 4500 are from GM.  This small jobs figure does not even come close to offsetting the 63,000 jobs lost at dealerships who were unilaterally shut down by terms of the Obama bailout. So in reality the Obama bailout LOST 58,500 jobs and added ZERO.

The claim by Joe Biden in his much touted cry that Osama bin Laden is dead and GM is alive is also a major deception. While bin laden is dead GM is barely alive as it is lagging behind its major competitors, Toyota, Kia, Honda and Volkswagen who have shown large sales increases while GM sales are up less than 10 percent with several of its more touted cars having to be scrapped due to the lack of sales.

Most financial analysts still believe GM will have to declare a restructured bankruptcy but all agree that it will not happen until after the election as Obama continues to throw good tax payer money to bad with continued government subsidies for GM to keep it afloat. Its stock shares are still almost junk bonds and its business model is a royal mess. With the government still holding 60% of GM shares and as such primary ownership of the company, Obama will continue to use this as a campaign story of success hiding the real truth so it can help his reelection bid, then soon after the election is over early in 2013 GM will crash once again file for bankruptcy and finally be allowed to restructure and start the road to recovery without the Obama bailout corporate welfare program that has killed what used to be the worlds largest auto maker.

Ken Taylor