As General Motors Goes So Goes the Nation—We Are Screwed! (UPDATED)

What is good for GM is good for America is the mis-quoted distillation of the real quote of former GM CEO Charles Wilson’s “because for years I thought what was good for the country was good for General Motors and vice versa.”
It’s truer than the real one which is why it outlives it.
Never before has it been truer.
For this we are screwed.
 
GM and Chrysler were infamously bailed out by you and me last year.
As goes GM so goes America.
 
GM was another too big to fail failure propped up by us dupes—well, we are not dupes, dupes respond to emails from Kenyan Generals requesting funds to release frozen assets—we are victims of a mugging by armed assailants from the government.
 
And GM still failed and filed bankruptcy.
As goes GM so goes America.
 
But wait, the mess of this economy is getting cleaner.  I was reminded of this because this morning I sifted through the scoop-able cat litter.  Cleaning the litter boxes is a fascinating chore to do while pondering politics and Obama.
 
A few weeks ago, the current Obama-Emanuel approved GM CEO Ed Whitacre (you know there is a God because He gives us people with such names; I see Whitacre and think Wise-acres or With-out-a-care) wrote in the Wall Street Journal that—ta da—GM is paying back its bailout loans ahead of time with full interest repayment:   The GM Bailout: Paid Back in Full
 
Light the cigar! Obama-nomics works!
As goes GM so goes America!
 
Let’s return to the litter-box cleaning.   Resting on the sifting scooper is a clump of…what Mr. Whitacre was dropping.
I wouldn’t call him a liar without an army of attorneys present.  Let me put it this way:  he’s as forthright about his bailout repayment as Treasury Secretary Tim Geithner is about paying his taxes or President Obama is about anything he says.
 
GM got $49.5 billion from the U.S. Government in the bailout.  GM paid back only $6.7 billion (and interest) that was the loan portion.  The remainder of the bailout was the government’s equity stake as a major shareholder or owner in the corporation.   The bailout bought us GM and that new government owned GM is paying back the loan from its newly earned profits.  But there aren’t any profits.
Now follow me.
GM paid back the government loan from an escrow account funded by the government!
That’s right.  We taxpayers funded an escrow account that GM is using to pay back the loan we taxpayers made to GM.
The ENRON folks and Bernie Madoff went to prison for their schemes; GM and Whitacre boast about theirs in the Wall Street Journal.   And Obama takes a bow.
As goes GM so goes America.
 
You talk about Cash for Clunkers.
This is one perpetual bailout machine.   Obama has created what can only be called a bailout bubble that is too big to burst with too big of a burst when it does burst to not be bailed out and repaid with a re-bailedout bailedout loan bailout escrow account bailout bailout.
It’s the Monty Python Spam Song with bail out substituting for spam.
 
As we watch the growth of endless deficits and more government takeover and control of health care, banking, brokerages, automotive….remember this:
As GM goes so goes America.

We are screwed—and without the benefit of a reach around!
 
 
Sources:

GM’s Phony Bailout Payback 

Did General Motors Really Repay Its Taxpayer Bailout? 

Reason, NYT agree: GM repaid your money with your money 

Oh Please, The GM Bailout Was A Failure, And No The Taxpayer Hasn’t Made Money 

Rep. Darrell Issa (R-CA) to GM on bailout shell game: “dangerously close to committing fraud,” “you might have colluded with the U.S. Treasury to deceive the American public”

UPDATE:  Today GM reported a profit.  GM posts $865-million profit for first quarter

General Motors this morning announced an $865-million net profit for the first three months of the year, the first time the Detroit automaker has posted positive quarterly results since 2007 and a major victory coming out of bankruptcy reorganization last summer.

See also: GM posts first-quarter profit

GM received $50 billion of U.S. government financing for its restructuring in bankruptcy and has been aiming to launch an initial public offering that would allow the U.S. government to reduce its majority stake in the automaker later this year.

Under the terms of GM’s restructuring, almost 61 percent of the automaker is owned by the U.S. government. Canada and the province of Ontario own nearly 12 percent.

We tax-payers are still on the hook for billions.  And the government (meaning us again) owns over 60% of this company.   That $865 million looks as important to GM as Obama’s “cutting” billions from a deficit in the trillions.

As GM goes…well you know.

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  1. #1 by Steve Wainstead on May 16th, 2010 - 1:02 pm

    Oh my gosh, a corporation lied to the people? I’m shocked!

  2. #2 by Gene Dodaro on May 16th, 2010 - 1:04 pm

    The Liberals’ Canon:
    “You can fool some of the people all of the time,
    and all of the people some of the time …
    and – that’s all that counts!”

  3. #3 by georgia maresh on May 16th, 2010 - 7:59 pm

    Have you ever submitted your writings to a newspaper as a guest columnist? I’m thinking USA Today or WSJ or maybe one of the syndication publishers. I think you should.

  4. #4 by Al on May 17th, 2010 - 12:12 am

    It’s worse than just a corporation lying. It is the merging of corporatism with statism creating something very ugly in our system.
    Remember the Dems floated the idea of ‘bail-outs’ for mainsteam media newspapers. If we think the media is biased toward Liberals, wait until the government owns them.

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