Open Thread: Taxpayers Still Stand to Lose a Bundle on GM Stock
By NB Staff | August 05, 2011 | 10:50
Despite the media hype, American taxpayers still stand to lose a bundle from the government takeover of General Motors, thanks in large measure to the lack of credibility the company's Obama-mandated obsession with the unpopular Chevrolet Volt:
GM announced earnings this morning and the numbers appeared to be good on the surface. Media friends of GM trumpeted the good news but the celebration did not last long. The festive mood was replaced with GM apologists trying to explain the negative share price reaction.The obvious overhang of UAW obligations seemed to be ignored, as did the lack of management credibility. One TV commentator known for his defense of GM attributed the sell-off to "bankruptcy fatigue", claiming that investors are still punishing GM for its trip through bankruptcy. Nonsense.
The people who control the big money on Wall Street are not concerned with the past actions of a corporation as much as they are with actions that give an indicator of what the future holds. The problem with GM is not that it suffers from "bankruptcy fatigue", but rather "credibility fatigue."
Current management has claimed that future growth would be driven by China and the Chevy Volt. China is a small portion of GM's profitability and the Volt loses money for GM. Recent statements out of GM that dismal sales of the Volt were due to the fact that dealerships had "virtually" no inventory have been exposed as dishonest. Another comment by CEO, Dan Akerson, about cash on the balance sheet of 35 to 40 billion dollars is also inaccurate. Cash and cash equivalents are about 20 billion dollars. Of course GM might claim that it all depends upon your definition of "cash."
And speaking of losing money, the government-owned mortgage bundler Fannie Mae has put in for even more taxpayer funds, putting itself over the $100 billion mark:
Government-controlled mortgage company Fannie Mae said Friday that its second-quarter loss widened as it continues to seek loan modifications to help reduce defaults amid the ongoing difficulties in the housing and mortgage markets.
Fannie Mae also made $2.3 billion in dividend payments to the U.S. Treasury during the period, which reduces the amount it will be asking taxpayers for to $2.8 billion from $5.1 billion.
Fannie's rescue has been one of the most expensive government bailouts. The amount of money it has received from the Treasury to stay afloat is set to rise to $104.8 billion when accounting for the latest request. Fannie has paid back $14.7 billion to the Treasury in dividends as of the end of June.
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Comments
F'ing Strikes Again
Submitted by Blonde on Fri, 08/05/2011 - 10:58am.
What a maroon.
Sen. John Kerry (D-MA) told MSNBC's "Morning Joe" on Friday that the media has the responsibility to not give equal time or credence to the Tea Party's views:
SEN. JOHN KERRY: "And I have to tell you, I say this to you politely. The media in America has a bigger responsibility than it's exercising today. The media has got to begin to not give equal time or equal balance to an absolutely absurd notion just because somebody asserts it or simply because somebody says something which everybody knows is not factual."
"It doesn't deserve the same credit as a legitimate idea about what you do. And the problem is everything is put into this tit-for-tat equal battle and America is losing any sense of what's real, of who's accountable, of who is not accountable, of who's real, who isn't, who's serious, who isn't?"
HALP US JON KARRY WE R STUK IN IRAK!
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
But if the media stops reporting on the Tea Party,
Submitted by lsudolemite on Fri, 08/05/2011 - 11:10am.
then how will Kerry, Biden and the boys be able to smear them as terrorists that are "holding (insert random thing here) hostage"?
Thanks a bunch, Blonde.
Submitted by Newsbubba on Fri, 08/05/2011 - 11:11am.
I went to your link, and when Gin-Jus Khan started blabbing his moronic nonsense, I ruined my computer screen and keyboard. It may take all day to clean it!
You need to post a warning with that stuff!
Bubba, you didn't have to click "play"
Submitted by Blonde on Fri, 08/05/2011 - 11:26am.
It was bad enough reading that idiot's blathering.
Nothing is ever enough for a democrat, is it? They have the media running cover for them 24/7/365, and now F'ing is whining that the Tea Party gets (mostly bad) media coverage.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
The devil made me click "play."
Submitted by Newsbubba on Fri, 08/05/2011 - 11:41am.
I have turned into a political masochist lately. It seems to be the only way that I can read or watch the news nowadays.
I really need to get back to Paradise and get my mind right. I've missed too many happy hours!
Wow
Submitted by jon_torlin on Fri, 08/05/2011 - 11:49am.
The TEA party people are bigger believers in the Constitution than these Demo-RATS or these National Socialists. But then again, they hate the Constitution which provides freedom of expression in which the TEA party is expressing their extreme disgust at these career politicians in Congress.
That's where I would call them Extreme, but these career politicians are the real extremists trying to get rid of the Constitution the way they have been. Yeah, on both sides even like the RINOs.
God, what a frelling mess.
-Jon
Hey, Blondie, he served in
Submitted by Roger the Shrubber on Fri, 08/05/2011 - 11:42am.
Hey, Blondie, he served in Vietnam, ya know...
Oh ho! It's the Shrubmeister!
Submitted by Blonde on Fri, 08/05/2011 - 12:17pm.
Long time, no see.
We miss your august presence here, Roger.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
Easy Solution
Submitted by scottyusmc on Fri, 08/05/2011 - 11:00am.
All BOB needs to do is mandate that everyone is required to go out and buy a Volt. Just like healthcare insurance - problem solved...
That's coming soon, scotty.
Submitted by Newsbubba on Fri, 08/05/2011 - 11:08am.
I think that Bambi and F'ing should order GM and Hendrick Motorsports to enter a Chevy Volt team in the next NASCAR season. That should show all of us racist rednecks what a "real" car can do!!!
Of course all the gas powered cars will have new restricter plates that will only allow two drops of fuel a minute to come through the system.
Take from the fast and give to the slow.
Good Thing I Just Joined the Tea Party
Submitted by scottyusmc on Fri, 08/05/2011 - 11:16am.
Had been watching from the side, but all this has finally pushed me to activist action.
Ha! Can't wait for the
Submitted by ex buff e-dub on Fri, 08/05/2011 - 2:19pm.
Ha! Can't wait for the "Indianapolis 5"
The Obama regime’s recent
Submitted by Reaver on Fri, 08/05/2011 - 11:29am.
The Obama regime’s recent doubling of CAFÉ standards amounts to a defacto hybrid and electric vehicle mandate. They will get there one way or another.
What it means is the death of the new vehicle market
Submitted by c5then on Fri, 08/05/2011 - 11:44am.
Many people now will not be able to afford a new vehicle. They will keep their old one for much longer.
On the upside, maybe Tesla Motors will be able to pick up some cheap factories in the GM liquidation auctions. That might enable them to produce a whole lot more of their Model "S" for a lot less than the $51,000 they are targeting now. They should have been already doing that if our communist governemnt didn't try to "help".
Out of the ashes of the old behemoths that entered the depression will arrise the pheonix's of the new economy. If only we stop bailing out the old behemoths and let them die.
Part time Congress with term limits! - No more professional politicians. Let's start rebuilding the Republic!
So, I go to cars.com, input
Submitted by ex buff e-dub on Fri, 08/05/2011 - 2:40pm.
So, I go to cars.com, input my zip code, find there are 3 Volts within 30 miles. Only 1 result with a price. $45,000!
I go back, and input $45,000 top price as the only search criterion. 4,938 results within 30 miles, including GMC Yukons, Lincolns, Ford 350's, MB, Audi Quattro, Suburbans, Silverados, Expedition, Chrysler 300's, etc etc.
I would buy a volt, why?
Then BOB will have to Mandate
Submitted by Comrade Jim on Fri, 08/05/2011 - 11:37am.
More windmills to the power grid. Being inefficient BOB will have to mandate that Wind will have to be supplemented by solar farms. Being also inefficient, BOB will have to mandate coal-fired plants to supplement solar. To mitigate the carbon footprint of coal BOB will have to mandate plants for sequestration of the carbon. To power these new sequestration plants BOB will have to mandate a reduction in the number of Chevy Volts on the highways and the addition of bicycles.
Nice, Comrade!
Submitted by Newsbubba on Fri, 08/05/2011 - 11:44am.
Now you're thinking like a liberal!!!
And the unintended consequences...
Submitted by c5then on Fri, 08/05/2011 - 11:46am.
Is that we all starve because the farm land is being used up for the wind farms and the solar farms. No more room for the food farms.
Part time Congress with term limits! - No more professional politicians. Let's start rebuilding the Republic!
Heard a new term yesterday.
Submitted by Newsbubba on Fri, 08/05/2011 - 11:17am.
I be started flippin' over to duh Rev Al's Ebonic fo' Moe-rons Hour durring da ads on Fox to keep up wit da latest in propersom anglish grammer.
One o' his guestes said dat da United States popularation is now "minority majority." Hmmmmmmmm? Now what da hell do dat mean, Kingfish?
You aughten to watch dis shiite, cause you will leard a whole bunch, yo?
You got....
Submitted by Prester John on Fri, 08/05/2011 - 11:22am.
....me laughin' pretty good with that.
Oh, John ...
Submitted by Newsbubba on Fri, 08/05/2011 - 11:51am.
... do yourself a favor and actually watch the Ebonics for Morons Hour one night, if you can stand it. I do not exaggerate! It is a comedy show.
Where MSNBC comes up with their hosts is amazing. I mean, da Rev is illiterate! I guess we have to cut him some slack because there is a difference between "stupid" and "ignorant."
Da Rev is ignorant and stupid, while the rest of the hosts are just stupid. Of course if Al did become literate he who then just be stupid.
But dat ain't likely to happen.
He was on Morning Smoe this
Submitted by ricklail on Fri, 08/05/2011 - 12:37pm.
He was on Morning Smoe this morning. I turned it when they were going to interview Lurch. Couldn't take both of them in the same day.
I bet the unreverand Al won't talk about this on his show.
Submitted by ricklail on Fri, 08/05/2011 - 3:52pm.
Several years ago Crystal Mangum was the apple of Al and Jesse's eye when she accused the DOOK lacrosse team of rape. Now she sits in the Durham County jail waiting to tried for murder of her boyfriend. The autopsy report came out and it is not pretty.
We can thank the UAW for
Submitted by jessieH on Fri, 08/05/2011 - 11:20am.
We can thank the UAW for their hand in the complete destruction of General Motors. When Government Motors goes belly-up, where these fools going to work? Not that I care, but the only ones going to have a job is the union leaders. The workers will be just a bunch of speed bumps.
Might I suggest a mine in Chile?
Submitted by Blonde on Fri, 08/05/2011 - 11:29am.
Greedy buggers.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
Meanwhile, FNMA apparently has its hand out....
Submitted by Prester John on Fri, 08/05/2011 - 11:25am.
...for another $5 billion or so of taxpayer money.
Ya think they might ask Franklin Raines for a few of those 10s of millions of dollars he put in his pocket while he was the head of it?
(crickets chirping)
http://www.cnbc.com/id/44032122/
"Stupid people are ruining America"
Herman Cain 2012
Open Thread...
Submitted by Roger the Shrubber on Fri, 08/05/2011 - 11:49am.
A certain ruggedly handsome and quite manly shrubber who frequents Newsbusters will be prowling for autographs tonight at a training camp of a certain NFL football team.
Hopefully the opportunity will arise where this shrubber might ask Hines Ward if he's still banging his dance partner, or if that was just a fling?
Rog
Submitted by ricklail on Fri, 08/05/2011 - 12:38pm.
Where have you been? It is almost time for football. You need to make your presence known a little more often.
Hines should be more
Submitted by stratman on Fri, 08/05/2011 - 1:22pm.
Hines should be more concerned about banging street curbs and denying DUI arrests that are irrefutable.
Sorry Shrubby. I'm a Browns fan, and you know it ain't easy looking at our record against Pittsburgh.
More fast and furious
Submitted by jon_torlin on Fri, 08/05/2011 - 12:06pm.
Good grief, I can't believe there aren't any criminal charges being leveled yet to the US Government over this. Only reason I can think of why it's not happening is because the Republicans investigating this aren't that concerned about it as we were led to believe.
US cuts deal with Cartels?
This situation is getting more and more ridiculous. Gov Perry needs to somehow level charges against the US Government for this since Texas is getting invaded by these bastards.
-Jon
I saw that, jon
Submitted by Blonde on Fri, 08/05/2011 - 12:20pm.
We need a special prosecutor. Right now.
Holder is obstructing justice (how's that for an oxymoron?).
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
Jon, Blonde
Submitted by ricklail on Fri, 08/05/2011 - 12:50pm.
The Korean Times has chimed in on this. As you know the intent was really to get more gun control. The NRA has filed suit in DC, TX and NM against the rule that Obama approved making the federal firearms licensees file more paperwork on multiple sales of long guns. What was done is unconstitutional.
Troops forced to observe Ramadan
Submitted by ricklail on Fri, 08/05/2011 - 12:24pm.
I've about how it with this politically correct military. This is BS. Come Monday I am going to walk through all the housing areas where I know the Muslims bunk eating a candy bar or something. I have no respect for this stupid celebration. I see the wannabe towel heads chowing down on things from the canteen when they are supposed to be fasting. Our kitchen staff has to feed these fools before sunrise and then again at sunset. There is not another group that is mollycoddle like they do the religion of hate.
The troops may have to refrain from eating in public,
Submitted by SickofLibs on Fri, 08/05/2011 - 12:36pm.
but at least they'll be allowed to wantonly murder for a month or so.
The Obama bus tour
Submitted by bkeyser on Fri, 08/05/2011 - 12:31pm.
bus is all lettered up and ready to go. The backdrop is a fake though- they're not in the midwest yet.
BK & other NB'ers
Submitted by Blonde on Fri, 08/05/2011 - 1:04pm.
Our friend MOTUS (she of the classic "More Boob Belt vid) has an excellent post up today, in which she mentions the grand tour and other goings on at the WH.
The lady has a sharp pen:
They seem to be having a Big Guy bounce. And Big Guy’s poll numbers? They’re at least 10 years younger than he is now. In fact, the only thing “waxing” around here lately have been unemployment numbers and the number of houses “under water.” And yes, I know: the Labor Department said unemployment fell from 9.2 to 9.1% in July. What did you expect them to report? This is our second summer of recovery. They have the entire rest of the year to issue a “restatement.”
I think her readers might enjoy some of your excellent work, BK. Particulary that bus, which would fit right in on that blog post.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 138 (and Counting)
Dingy Harry caught in a lie. So why is that news?
Submitted by ricklail on Fri, 08/05/2011 - 3:41pm.
It would not normally make news but this time it was a BIG WHOOPER. I don't think you'll hear about from the MSM
HuffPo is not happy with Obama
Submitted by bkeyser on Fri, 08/05/2011 - 4:10pm.
and his latest pivot to job creation.
Hillary send a little money HuffPo's way?
More leftist (in)tolerance
Submitted by Model850 on Fri, 08/05/2011 - 4:48pm.
It ain't just Kerry.
That storied "tolerance" of those on the left is on proud display for all to see at the University of Tennessee, courtesy of another moonbat Democrat.
Officials were forced to pull the product after Democratic state Rep Joe Armstrong visited the bookstore and told the manager he found the mints offensive.
Folks, you just can't make this stuff up.
Blessed are those who expect nothing, for they shall not be disappointed.
I saw that on Fox this
Submitted by ricklail on Fri, 08/05/2011 - 5:15pm.
I saw that on Fox this morning. I saw this link. Mr. Bean wrecks his car at 240 MPH
I'm sure there are more
Submitted by Jer on Fri, 08/05/2011 - 5:35pm.
I'm sure there are more biased websites than NLPC likewise lurking behind a paper-thin veneer of objectivity, but probably not many. In the meantime, Ford stock tanks and gets downgraded by Goldman while GM recaptures the #1 spot in the world for sales. One would never guess it from reading this incredibly slanted blogged item however.
Tapper shows outrageous bias
Submitted by bkeyser on Fri, 08/05/2011 - 5:57pm.
The next time someone claims Jake Tapper to be one of the few non-biased reporters in the WH Press Corps, they might want to re-read this mess:
Pretty sad display.