Obama SAYS: "A New Vision Of An America In Which Prosperity Is Shared" Meanwhile he seems to have forgotten about GM-- Treasury: U.S. to lose $25 billion on auto bailout. YUP Obama is sharing the prosperity.. as median household income drops.
iamnothere
2012/08/13 20:00:09
August 13, 2012 at 2:32 pm
Treasury: U.S. to lose $25 billion on auto bailout
By David Shepardson -- Detroit News Washington Bureau
Washington -The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That's 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM's stock price was $22.20 a share.
On Monday, GM stock was trading down 6 cents, or 0.2 percent, to $20.49. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
Treasury spokesman Matt Anderson said the costs were still far less than some predicted.
"The auto industry rescue helped save more than one million jobs throughout our nation's industrial heartland and is expected to cost far less than many had feared during the height of the crisis," Anderson said.
The Obama administration initially estimated it would lose $44 billion on the bailout but reduced the forecast to $30 billion in December 2009.
Republican presidential candidate Mitt Romney has decried the losses on the auto bailout and insisted that forcing GM and Chrysler Group LLC to go through bankruptcy first would have saved taxpayers money.
But President George W. Bush — who gave the automakers and their finance arms about $25 billion in his final weeks in office in bailout funds — said there wasn't time.
Taxpayers incurred a $1.3 billion loss on the $12.5 billion bailout of Chrysler.
The Treasury also has put on hold an initial public offering initially planned for last year in Ally Financial Inc. because of market weakness. The government holds a 74 percent majority stake in the Detroit auto finance company as part of its $17.2 billion bailout and has recovered $5.7 billion.
GM CEO Dan Akerson told employees at a town hall meeting Thursday that the company was working to take actions to boost the automaker's sagging price.
From The Detroit News: http://www.detroitnews.com/article/20120813/AUTO01/208130392#...
===========================================
Obama: "A New Vision Of An America In Which Prosperity Is Shared"
"Too many folks still don't have a sense that tomorrow will be better than today. And so, the question in this election is which way do we go?" President Obama asked at a fundraiser in Chicago on Sunday.
"Do we go forward towards a new vision of an America in which prosperity is shared?" Obama asked. "Or do we go backward to the same policies that got us in the mess in the first place?"
"I believe we have to go forward," Obama said. "I believe we have to keep working to create an America where no matter who you are, no matter what you look like, no matter where you come from, no matter what your last name is, no matter who you love, you can make it here if you try. That's what's at stake in November. That's what is why I am running for a second term as president of the United States of America."
==============================================================
New York, NY (PRWEB) August 06, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, real median household income is currently at the same level it was at back in 1995. Lombardi asserts that under these circumstances, economic recovery is unlikely.
In the article “American Real Incomes Fall to 1995 Levels,” Lombardi highlights that it is crucial that real disposable income grow in order for consumer spending to take place. Real disposable income, he explains, measures the average American’s income after adjusting for inflation (as reported by the government) and taxes.
“Seventy percent of GDP growth here in the U.S. is dependant upon consumer spending,” says Lombardi. “With jobs scarce and almost 50% of all Americans on some form of government subsidy, it is hard to imagine how confidence can be created in consumer spending to create GDP growth.”
Lombardi notes that costs for education since 1995 have increased by hundreds of percentage points, along with a significant rise in commodity prices, increasing foods cost and the price of goods.
What Lombardi thinks is worse is that, with weak employment growth in the U.S., wages in general have not grown.
“This is natural,” he reasons, “because companies do not feel pressure to raise wages to attract employees when there are so many looking for a job.”
Ultimately, Lombardi asks, “How is consumer spending going to pull the U.S. into an economic recovery with strong GDP growth under these circumstances?”
Treasury: U.S. to lose $25 billion on auto bailout
By David Shepardson -- Detroit News Washington Bureau
Washington -The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That's 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM's stock price was $22.20 a share.
On Monday, GM stock was trading down 6 cents, or 0.2 percent, to $20.49. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
Treasury spokesman Matt Anderson said the costs were still far less than some predicted.
"The auto industry rescue helped save more than one million jobs throughout our nation's industrial heartland and is expected to cost far less than many had feared during the height of the crisis," Anderson said.
The Obama administration initially estimated it would lose $44 billion on the bailout but reduced the forecast to $30 billion in December 2009.
Republican presidential candidate Mitt Romney has decried the losses on the auto bailout and insisted that forcing GM and Chrysler Group LLC to go through bankruptcy first would have saved taxpayers money.
But President George W. Bush — who gave the automakers and their finance arms about $25 billion in his final weeks in office in bailout funds — said there wasn't time.
Taxpayers incurred a $1.3 billion loss on the $12.5 billion bailout of Chrysler.
The Treasury also has put on hold an initial public offering initially planned for last year in Ally Financial Inc. because of market weakness. The government holds a 74 percent majority stake in the Detroit auto finance company as part of its $17.2 billion bailout and has recovered $5.7 billion.
GM CEO Dan Akerson told employees at a town hall meeting Thursday that the company was working to take actions to boost the automaker's sagging price.
From The Detroit News: http://www.detroitnews.com/article/20120813/AUTO01/208130392#...
===========================================
Obama: "A New Vision Of An America In Which Prosperity Is Shared"
"Too many folks still don't have a sense that tomorrow will be better than today. And so, the question in this election is which way do we go?" President Obama asked at a fundraiser in Chicago on Sunday.
"Do we go forward towards a new vision of an America in which prosperity is shared?" Obama asked. "Or do we go backward to the same policies that got us in the mess in the first place?"
"I believe we have to go forward," Obama said. "I believe we have to keep working to create an America where no matter who you are, no matter what you look like, no matter where you come from, no matter what your last name is, no matter who you love, you can make it here if you try. That's what's at stake in November. That's what is why I am running for a second term as president of the United States of America."
==============================================================
New York, NY (PRWEB) August 06, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, real median household income is currently at the same level it was at back in 1995. Lombardi asserts that under these circumstances, economic recovery is unlikely.
In the article “American Real Incomes Fall to 1995 Levels,” Lombardi highlights that it is crucial that real disposable income grow in order for consumer spending to take place. Real disposable income, he explains, measures the average American’s income after adjusting for inflation (as reported by the government) and taxes.
“Seventy percent of GDP growth here in the U.S. is dependant upon consumer spending,” says Lombardi. “With jobs scarce and almost 50% of all Americans on some form of government subsidy, it is hard to imagine how confidence can be created in consumer spending to create GDP growth.”
Lombardi notes that costs for education since 1995 have increased by hundreds of percentage points, along with a significant rise in commodity prices, increasing foods cost and the price of goods.
What Lombardi thinks is worse is that, with weak employment growth in the U.S., wages in general have not grown.
“This is natural,” he reasons, “because companies do not feel pressure to raise wages to attract employees when there are so many looking for a job.”
Ultimately, Lombardi asks, “How is consumer spending going to pull the U.S. into an economic recovery with strong GDP growth under these circumstances?”
Top Opinion
-
RTHTGakaRoland 2012/08/13 20:05:14
I am sure the owner of that Co is not a Multi-Billionair, yet, because he only has offices in three States, but he is working his way there. He has stayed completely SOLVENT through all of the Recession.
This is the part which middle-class morons who vote dem-flavored statist don't realize. They're voting for their own destruction. They're voting for neofeudalism. They live in one of the ONLY places on earth where the little guy can, if s/he works hard/smart enough, get a piece of the pie--and they're destroying it!
they are the reason people are up in arms about the spending by this country.. these are the people who have a brain and know that these bills will never be paid if we continue to spend 40 cents for debt ... that you have no clue about who and why the tea party exists.. is a horrible commentary about you
1) I'm a libertarian and conscientious abstainer. I'm not a tea partier.
2) the 3 trillion dollars of which you speak belongs to the people who produced it--not Obummer.
3) I blame the current president ONLY for his contribution in turning this country into a socialist hell hole.
4) I've been homeless and long-term-unemployed before, so spare me your speech.
5) Businesses 'outsource' because labor unions have priced themselves out of a global marketplace.
6) I *loathe* talk radio!
NOW, would you like to offer a rebuttal which DOESN'T include prejudicial statements about people you don't fekking know?