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Media Fail: Government Motors Inflates Sales by Selling to...the Government

zbacku 2012/07/10 16:29:32
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Media Fail: Government Motors Inflates Sales by Selling to...the Government

By Seton Motley


The Jurassic Press was in full-throated ObamaChorus mode in reporting on General Motors (GM)’s allegedly strong June sales.

Very few failed to receive the sheet music.

General Motors June US Car Sales Rocket 16%

GM's June sales up 16%, show broad-based growth

GM June U.S. Sales Up 16%

Mentioned was that We the Taxpayers were conscripted to bailout GM to the tune of $50 billion.

General Motors' US sales up 16% in June

General Motors (GM) Shifts Gears on Strong US and China Sales

GM June Sales Up 16%

The Jurassic Press mentioned the bailout so as to allow President Barack Obama to continue to campaign for reelection on its titanically-failed “success."

GM speed(s) to strong June

GM (NYSE:GM) Announces Record Strong Sales

General Motors' US sales up 16 pct in June

Not mentioned was the auto bailout will lose us about $30 billion.

General Motors (NYSE:GM) Cheers to Reports US Sales Surges 16%

General Motors (NYSE:GM) Beats Analysts Sales Forecasts

GM Sees Highest Sales Since September

Almost all of this $30 billion Taxpayer loss was in fact a gi-normous payoff of the Obama-Democrat stalwart United Autoworkers Union.

GM Races Higher on Sales Report

GM Sales Rise 16%

GM June US Sales Rose 16%

While the Union was thoroughly bailed out, We the Taxpayers are still stuck holding 500+ million shares of GM stock. Which we need to sell at $53 per. Which debuted post-bankruptcy at $33 per. And which is currently trading at just over $20 per. Meaning we’ll lose about $15 billion. How’s that for “success?”

GM Calls June Highest Sales Month Since 2008

General Motors (GM) June Sales Highest Since September 2008

GM June 2012 Sales Climb 15.5 Percent to Highest Month Since September 2008

And in all this Hosanna-reporting, nowhere to be found is the inconvenient truth that these huge June sales were mostly fueled by...government purchases.

We now learn that government purchases of GM vehicles rose a whopping 79% in June.

Meaning Barack Obama is now campaigning on the “success” of - the government buying cars from...the government’s car company. With our money.

That’s like you setting up a lemonade stand for your kids. You buy them the lemons, sugar, cups and pitchers - and then buy most of the lemonade yourself.

Except you are President Obama. Your kids are the United Autoworkers Union. And the lemonade cost $50 billion.

At least you get to tax your neighbors for the $50 billion.

Again - in what Bizarro-world is this auto bailout the “success” the Jurassic Press incessantly reports it is?




Read More: http://newsbusters.org/blogs/seton-motley/2012/07/...

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Top Opinion

  • UGH...LIBS ~ PWCM ~ JLA ~ 2012/07/10 17:10:35
    What Do You Think?
    UGH...LIBS ~ PWCM ~ JLA ~
    +8
    I think Obama must be furious that someone in the government forgot to buy Solyndra's solar panels, to keep them in business at least until November.

    That could have been touted as another great "success."

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  • HOMBRE 2012/07/19 01:21:23
    What Do You Think?
    HOMBRE
    It sound like something Obama would do.
  • jeane 2012/07/14 01:07:38
    Care To Comment?
    jeane
    +1
    I am shocked - just shocked I tell you..NOT!
  • Striker 2012/07/13 17:02:34
    Care To Comment?
    Striker
    +1
    Not so good, but to be expected.
  • ☆stillthe12c☆ 2012/07/13 16:54:27
    Care To Comment?
    ☆stillthe12c☆
    We need to get out of the auto business.
  • Aqua Surf BTO-t-BCRA-F 2012/07/11 06:06:54
    What Do You Think?
    Aqua Surf BTO-t-BCRA-F
    +2
    I knew something fishy was going on. How can the unemployed buy new cars? They can't, but the government can. Obama has once again been exposed for the sneaky little prick that he is.
  • ed 2012/07/10 23:12:02
    Journalism Is Dead In America.
    ed
    +2
    THE LIES keep coming from the media and this administration.
  • Temlakos~POTL~PWCM~JLA~☆ 2012/07/10 22:29:30
    Care To Comment?
    Temlakos~POTL~PWCM~JLA~☆
    +3
    The easiest thing in the world: keep a company going by buying all their products, with someone else's money. The Chevrolet Caprice became the car of choice for police departments everywhere, and that's the only thing that keeps that line going. Now all GM models are part of the government fleet!
  • sbtbill 2012/07/10 20:04:00
    What Do You Think?
    sbtbill
    +1
    Most big businesses sell to the government. Heck a lot of small business sells to the government. Let's see Boeing does it, General Mills does it, Remington does it, Honda does it, China does it. Just about every business does it. Heck when I had a small business in New Mexico I did it.

    Bet the only ones complaining about GM sales to the government are Ford, Chrysler, Honda, BMW and the rest of the auto companies. Their complaint - They didn't make the sale.
  • mich52 2012/07/10 19:00:23
  • HOMBRE mich52 2012/07/10 19:10:36
    HOMBRE
    +3
    government vehicles werent needed. Wasted tax payers money
  • mich52 HOMBRE 2012/07/10 19:55:52
  • HOMBRE mich52 2012/07/10 21:15:05
    HOMBRE
    +2
    It easy enough to see what Obama goon squad did.Like your in a position to know that they didn't do it.I bet most the vehicles sold where that dodge electric car to .Make the sales look good on that piece of crap car.
  • mich52 HOMBRE 2012/07/10 22:03:02
  • HOMBRE mich52 2012/07/10 22:11:19
    HOMBRE
    Ya Just couldnt think of it at the time
  • Jimbo 2012/07/10 18:52:17
    What Do You Think?
    Jimbo
    +4
    Most of those cars were made in China too.

  • Concern... Jimbo 2012/07/10 18:55:49
    Concerned Citizen
    +2
    You nailed it!!!!!

    you nailed it
  • stevmackey 2012/07/10 18:47:51
    Obama = Failure.
    stevmackey
    +2
    He probably had a clause that made them provide cars to the government ,at reduced rates, in the requirements for their bailout money.
  • sbtbill stevmackey 2012/07/10 20:04:44
    sbtbill
    That would have been a good idea.
  • Sheila 2012/07/10 18:45:37
    Journalism Is Dead In America.
    Sheila
    +2
    "Well see here is how this will go you guys...first we will spend a TON bailing them out, then we will send a shipload of jobs overseas due to money concerns and then FINALLY we will buy all the products made with our money overseas so we can call it a success!! this is BRILLIANT mwa ha ha ha. that is IF the people don't catch on. Good thing we can count on the media to back us right??"---Barack Obama.
  • Walt 2012/07/10 18:42:47
    Obama = Failure.
    Walt
    +4
    Government Motors selling taxpayer subsidized cars to the government after Government Motors moved operations overseas is similar to this:

    0bama tax plan
  • voice_matters 2012/07/10 18:39:22
    What Do You Think?
    voice_matters
    if cars are being bought then then there is nothing inflated.
  • Kane Fernau 2012/07/10 18:26:32
    Obama = Failure.
    Kane Fernau
    +3
    We will remain in a recession as long as the government tries to manage the economy!
  • Beat Magnum True Hero 2012/07/10 17:20:22
    What Do You Think?
    Beat Magnum True Hero
    +2
    Government agencies are buying American cars for their fleets and yet somehow this is turned into a negative. Of course, if they were buying Toyotas, you'd complain about that too.
  • Philo® ~PWCM~JLA ✩ 2012/07/10 17:17:35
    Obama = Failure.
    Philo® ~PWCM~JLA ✩
  • UGH...LIBS ~ PWCM ~ JLA ~ 2012/07/10 17:10:35
    What Do You Think?
    UGH...LIBS ~ PWCM ~ JLA ~
    +8
    I think Obama must be furious that someone in the government forgot to buy Solyndra's solar panels, to keep them in business at least until November.

    That could have been touted as another great "success."
  • ProudProgressive 2012/07/10 17:08:37
    Care To Comment?
    ProudProgressive
    +3
    First off, the "Government Motors" nonsense was stale three years ago. I didn't know there were still Right Wingers who don't know the difference between a handout (i.e., AIG's bailout) and a loan (i.e., General Motors). Loans get paid back, as GM has already done. It was not a bailout and it did not cost taxpayers $30 billion dollars. It also saved over half a million US jobs.

    Second, I think it's great that the government is finally taking the phrase "Buy American" more seriously. Are you trying to suggest that the government should buy BMWs instead? Do you not think that if they did NOT buy government vehicles from a US automaker that the Right Wing wouldn't be all over Obama for "selling out our sovereignty" or "seeking to create a new world order" the way they do over just about everything already? Where would YOU like to see the Federal government obtain its vehicles?

    Third, I don't know if the author of this piece is ignorant or just deliberately trying to be obtuse, but the suggestion that buying cars from GM is some sort of "secret union payback" is absurd. He seems to believe that none of these purchases were necessary and that the government bough vehicles just to "funnel" money into the company. That's ridiculous. The Federal government purchases thousa...
    First off, the "Government Motors" nonsense was stale three years ago. I didn't know there were still Right Wingers who don't know the difference between a handout (i.e., AIG's bailout) and a loan (i.e., General Motors). Loans get paid back, as GM has already done. It was not a bailout and it did not cost taxpayers $30 billion dollars. It also saved over half a million US jobs.

    Second, I think it's great that the government is finally taking the phrase "Buy American" more seriously. Are you trying to suggest that the government should buy BMWs instead? Do you not think that if they did NOT buy government vehicles from a US automaker that the Right Wing wouldn't be all over Obama for "selling out our sovereignty" or "seeking to create a new world order" the way they do over just about everything already? Where would YOU like to see the Federal government obtain its vehicles?

    Third, I don't know if the author of this piece is ignorant or just deliberately trying to be obtuse, but the suggestion that buying cars from GM is some sort of "secret union payback" is absurd. He seems to believe that none of these purchases were necessary and that the government bough vehicles just to "funnel" money into the company. That's ridiculous. The Federal government purchases thousands of vehicles EVERY year. If they weren't buying them from GM, Ford or Chrysler they would be buying them from foreign manufacturers, but either way, they would be buying the cars anyway. To suggest otherwise is dishonest and wildly contrary to reality.
    (more)
  • Beat Ma... ProudPr... 2012/07/10 17:21:35
    Beat Magnum True Hero
    +1
    This is the RWNJ playbook: If it happens under Obama, it must be bad.
  • zbacku ProudPr... 2012/07/10 17:28:19
    zbacku
    +4
    I have a question. Why did the government save the Union worker's pensions and not the workers of Delphi Motors?

    http://turner.house.gov/Legis...


    We both know that answer. Obama was ONLY concerned with the Union Workers of GM. Nothing else. GM could have gone through the bankruptcy courts and come out in better shape. The ONLY reason Obama helped the Union was for their votes.

    And you know I have been a UAW Member of 18 years.
  • ProudPr... zbacku 2012/07/10 19:03:32
    ProudProgressive
    +1
    That's bullsh*t, z. If President Obama had not acted and GM had gone into Chapter 7 they would never have come out. The banks refused to give GM the loans it needed to continue operating through a bankruptcy, and without government loans they would have closed up shop entirely.

    And I still don't get why so many people view the GM bailout as "designed to reward" the unions. The reward they got was that their employer stayed in business and has now become profitable again. That's about all. The reward the country got is that we still have a thriving auto industry that sustains over a million American jobs (including all of the vendors and suppliers that feed into GM and the others). And yes, of course there was an overall "cost" to the Federal government, but that cost is balanced by the fact that a million Americans have jobs who wouldn't have them otherwise - and if you're a UAW member then that would include you.

    You folks also always seem to overlook the fact that the Bush Administration extended smaller loans to the auto industry before the 2008 elections. Certainly George Bush would never be called a friend of unions, would he? This seems to be example #1,462,473 of criticizing President Obama for doing the same thing that other Presidents have done without criticism.
  • ProudPr... ProudPr... 2012/07/10 19:13:39
    ProudProgressive
    +1
    PS - I've got a question for you, Z. If it's so horrible that the government affected the pensions of some people at Delphi unfairly, why don't you have a problem with the thousands of pensions that Mitt Romney wiped out completely while he ran Bain Capital? If the claims against the government are true regarding Delphi, at least these actions weren't taken for individual profit. Everything Romney did WAS done entirely for his own profit. Why doesn't that bother you?

    [And PS - How many tax dollars is Darrell Issa spending to produce YouTube videos anyway?]
  • zbacku ProudPr... 2012/07/11 02:13:01
    zbacku
    Bain Capital went in to try to save companies that were falling apart. Some didn't make it. Period.
    You do remember that Delphi 'was' GM at one time. These people worked side by side the Union workers. And yet the government decided that their pensions could be stolen. That, my friend, is more than OUTRAGEOUS. There is absolutely NO excuse for that.

    Issa isn't spending near what Obama has spent with his propaganda invested 'Whitehouse.gov'

    http://www.whitehouse.gov/
    Lovely picture of the Narcissist president isn't it.
  • zbacku ProudPr... 2012/07/11 02:03:24
    zbacku
    GM would have come out of bankruptcy minus the outrageous Union contracts.
    Would have been in much better shape.

    Bush gave loans. Obama took over the company.
  • Sport_G... ProudPr... 2012/07/10 17:42:04
    Sport_Geoff
    +3
    As usual you are wrong. The taxpayers got stuck for 30 billion dollars on the GM bailout and bankruptcy.........common knowledge....widely reported. At least your consistent with your Obama worship however.
  • ProudPr... Sport_G... 2012/07/10 19:08:29
    ProudProgressive
    +1
    The estimated cost of the loan program is based on the value of stock that the government is now holding. For one thing, that 30 billion estimate included both Chrysler and GM; GM's share is about 75% of the overall amount. For another, that estimate was made at the time of the program, and now that two and a half years have passed the dividends on those shares has reduced the overall government cost significantly.

    Bottom line is, if you want your money back, buy a GM car LOL.
  • Sport_G... ProudPr... 2012/07/10 19:44:43
    Sport_Geoff
    There's so much more involved in the the over-all picture. According to you...if the government owns the stock and they receive dividends from the stock then they are getting taxpayer money back. Only one problem with that.....they are boosting the dividends by buying the cars which are over priced pieces of junk. BTW, you are aware that many of the cars purchased are just sitting in a parking lot collecting dust arent you? Here's a simple math lesson for you........if you have $20.00 total in your pockets and $10.00 is in your left pocket and the other $10.00 is in your right pocket taking the $10.00 from one pocket and putting it in the other does not give you more money and thats all that Obama has done and it was done so that ill-informed people will believe he has done something miraculous.

    GM paid back part of it's loan with money from a second bailout after bankrupting the first company and sticking it to the taxpayers..

    GM took 500 million of taxpayer money and is building a plant in Mexico (not here) so taxpayer money just went to provide another country with jobs.......just like much of the Obamabucks program has.
  • Sheila ProudPr... 2012/07/10 18:50:56
    Sheila
    +1
    Many readers have asked us about the White House-touted news that General Motors, and Chrysler, repaid loan money from the Treasury Department, with interest, ahead of schedule. GM launched an ad boasting of the news, and President Obama talked about it in his weekly address on April 24.

    We wrote about this, too, on April 26 in a review of the Sunday political talk shows. Here’s the deal for those who missed that post:

    ■Yes, it’s true that GM paid back its loan from the Treasury Department, in full, ahead of schedule.
    ■But the debt was only part of the automaker bailout package. Through the Troubled Asset Relief Program, the Treasury gave GM $49.5 billion, most of which was converted into an ownership stake in the form of stock. Through this equity stake, the government still owns 61 percent of GM.
    ■Some Republicans, including Sen. Chuck Grassley of Iowa have pointed out that GM used TARP money to pay back its TARP debt. That’s true, but GM simply handed back TARP money it had been lent and hadn’t used. Those funds had been sitting in an escrow account, should the automaker need them. (The company didn’t borrow new money to pay back an older loan.)
    Grassley has argued that this wasn’t a "meaningful" repayment of a loan, since it didn’t come from earnings. That’s an opin...























    Many readers have asked us about the White House-touted news that General Motors, and Chrysler, repaid loan money from the Treasury Department, with interest, ahead of schedule. GM launched an ad boasting of the news, and President Obama talked about it in his weekly address on April 24.

    We wrote about this, too, on April 26 in a review of the Sunday political talk shows. Here’s the deal for those who missed that post:

    ■Yes, it’s true that GM paid back its loan from the Treasury Department, in full, ahead of schedule.
    ■But the debt was only part of the automaker bailout package. Through the Troubled Asset Relief Program, the Treasury gave GM $49.5 billion, most of which was converted into an ownership stake in the form of stock. Through this equity stake, the government still owns 61 percent of GM.
    ■Some Republicans, including Sen. Chuck Grassley of Iowa have pointed out that GM used TARP money to pay back its TARP debt. That’s true, but GM simply handed back TARP money it had been lent and hadn’t used. Those funds had been sitting in an escrow account, should the automaker need them. (The company didn’t borrow new money to pay back an older loan.)
    Grassley has argued that this wasn’t a "meaningful" repayment of a loan, since it didn’t come from earnings. That’s an opinion, and we’ll leave it to readers to agree or disagree with the senator. The TARP special inspector general, Neil Barofsky, has said the repayment was "good news," since it meant the automaker didn’t need to use those funds held in escrow. In testimony before the Senate Finance Committee on April 20, Barofksy made it clear GM still was operating with government help:

    Barofsky, April 20: G.M. has paid $1 billion, and I think they’ve announced that they’re going to be paying back the debt portion, which is about — I think there’s about $6 billion left in its entirety very shortly. But we should be a little — we need to be a little bit cautious about that because the way that that payment’s going to be made is drawing down an equity facility of other TARP money.

    So it’s good news in that they’re reducing their debt, but they’re using it by taking other available TARP money to repay the TARP. It’s good news because it means that money, which was going to be available for future problems with G.M., that there’s a determination that they don’t need it, but we should caution that it’s not necessarily being generated out of earnings, but out of other TARP funds.

    In an April 21 interview with Fox News’ Neil Cavuto, Barofsky repeated his assessment that the repayment was "good news" but should be taken with a grain of salt. "I mean, the good news is, that money — they already have that money that’s in that escrow account, so it does lower the total amount of money that they owe to the government, so that’s somewhat good news," Barofsky said. "But I don’t think we should exaggerate it too much, when we remember where — the source of this money is just other TARP money."

    The president’s and GM’s statements may have given some the false impression that taxpayers have gotten back all the bailout money loaned to or invested in GM. Strictly speaking, Obama was accurate when he said: "GM announced that it paid back its loans to taxpayers with interest, fully five years ahead of schedule." But he alluded only vaguely to other bailout money, which taxpayers may never get back, adding: "It won’t be too long before the stock the Treasury is holding in GM can be sold, helping to reimburse the American people for their investment." Those statements might have confused anyone who wasn’t familiar with the details of GM’s stock-and-loan debt to the Treasury.

    As for Treasury’s equity stake, worth $40 billion-plus, the nonpartisan Congressional Budget Office has said the Treasury won’t fully recoup that money. The total automaker bailout, including TARP money given to Chrysler, CBO estimates, will cost taxpayers about $34 billion.

    – Lori Robertson

    Update, May 3: The CBO doesn’t give a breakdown of how much of its $34 billion cost estimate for the bailout would have gone to General Motors. But most of the automaker bailout funds went to GM. While the Treasury has a 61 percent equity stake in GM, its stake in Chrysler is 9.9 percent.
    -----------------------------...
    IMPORTANT PART OF POST!!! REPOSTED AND CLEARLY MARKED

    The president’s and GM’s statements may have given some the false impression that taxpayers have gotten back all the bailout money loaned to or invested in GM. Strictly speaking, Obama was accurate when he said: "GM announced that it paid back its loans to taxpayers with interest, fully five years ahead of schedule." But he alluded only vaguely to other bailout money, which taxpayers may never get back, adding: "It won’t be too long before the stock the Treasury is holding in GM can be sold, helping to reimburse the American people for their investment." Those statements might have confused anyone who wasn’t familiar with the details of GM’s stock-and-loan debt to the Treasury.

    As for Treasury’s equity stake, worth $40 billion-plus, the nonpartisan Congressional Budget Office has said the Treasury won’t fully recoup that money. The total automaker bailout, including TARP money given to Chrysler, CBO estimates, will cost taxpayers about $34 billion.

    – Lori Robertson

    http://factcheck.org/2010/05/...
    (more)
  • ProudPr... Sheila 2012/07/10 19:06:46
    ProudProgressive
    +1
    Problem with that cut and paste is that it's two and a half years old and doesn't take into account the progress that GM has made since the article was written. The estimated government cost of the loan program is based on stock prices that fluctuate, and doesn't take into account that those shares have now received nine (or ten?) quarters of dividends, among other things.
  • Sheila ProudPr... 2012/07/10 19:09:09
    Sheila
    +2
    Does not change the fact that ALL the MONEY WAS NOT REPAID. Then or now.
  • BUCCANEER~POTL~PWCM~JLA 2012/07/10 17:06:36
    Care To Comment?
    BUCCANEER~POTL~PWCM~JLA
    +8
    Lib/Dem thinking and socialist math united in disasterous action
  • Theresa 2012/07/10 17:04:55
    Journalism Is Dead In America.
    Theresa
    +4
    Too funny! what you expect in a fascism system?

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