Bailout Bull

Pontiac GXP

Few have been bigger supporters of General Motors over the years than yours truly. I have driven Chevrolet SUVs for decades and have had a racy Pontiac ever since I got my drivers license. The products have been outstanding, and I have until recently been a longtime cheerleader for Chevrolet and Pontiac over the years.

But my relationship with GM has soured considerably due to their relationship with President Obama, under whose direction came the closure of the Pontiac division.  Obama and GM are joined at the hip with the unions, not the shareholders, the benefactor of the bailout.

Regrettably, it was President Bush who got the ball running on the auto bailout. Chrysler, which took the bailout, is now owned by Fiat.  Ford, (F:NYSE), did not accept bailout money and is doing fine.

Under the bailout, President Obama did not follow protocol and left the preferred shareholders with nothing while funneling cash to the unions.  Obama's team punished dealerships who were republican donors while keeping open those who donated to Democrats.  With GM under foot, Obama forced them to focus on developing vehicles designed to accommodate green energy sources, rather than seeking a profit producing vehicles the market wants.

The auto bailout has become a significant topic of discussion during the campaign, and its very relevant in Michigan and the key swing state of Ohio.  Although the facts differ from the rhetoric President Obama has been delivering on the campaign trail, the issue has been favorable to Obama rather than Mitt Romney, whose father George Romney was formerly chairman and president of American Motors Corporation.

Obama touts General Motors (GM:NYSE) as bailed out and saved, but the stock price of GM would have to moue than double for the company to stand on its own with the taxpayers to be made whole.

There are many more troubling facts that those in Ohio, and across the nation, are likely not aware of.  Glenn Beck did an outstanding job covering the topic recently on his radio program.  This is important, so please take the time to listen in the entirety.



Sadly, the campaign rhetoric Obama is soaring with, on both the fronts of GM being solvent and who is actually shifting jobs to China, is alarmingly false. 

On the campaign stump recently, Obama says we know him, and can trust him.  Indeed, we know him as a liar on numerous issues and note we can always trust him to be not trustworthy.