Green Room

Democrats Double Down on Auto Bailout, but Michael Moore Says Obama Didn’t Save Detroit

posted at 3:47 pm on September 7, 2012 by

Good Ole’ Shackle and Chains At It Again…

Bin Laden is dead and GM is alive. That was the theme that permeated the Democratic National Convention – especially during Vice President Biden’s acceptance speech last night.  However, it’s a false narrative.   As I’ve mentioned previously, Obama and the Democrats need to stop saying “I am GM, hear me roar” because the facts simply don’t add up.  Yes, GM’s doors maybe open, but the company is drowning in debt.  It’s trading in the low 20s on the Dow Jones, which is indicative that the bailout from American taxpayers hasn’t been paid back in full.

Investors Business Daily wrote back in April that:

GM… still owes more than half the $50 billion in federal funds it received when the combination of the recession and its costly union contracts drove it into bankruptcy. And its lending arm, GMAC (now Ally Financial), still owes $14.5 billion.

What’s worse, it’s not clear that GM actually repaid what it’s gotten credit for repaying. Check out this note buried in the inspector’s report: “As part of a credit agreement with Treasury, $16.4 billion in TARP funds were placed in an escrow account that GM could access only with Treasury’s permission.”

As it turns out, GM got Treasury’s OK to “repay” more than $6.7 billion “using a portion of the escrow account that had been funded with TARP funds.” So GM is merely paying the government back with government money, not money GM is earning selling cars, as the administration has claimed.

Worse, GM in effect is still borrowing money. Consider this item from the report: ‘What remained in escrow was released to GM.’ Bottom line: Taxpayers have not been paid back and are still on the hook as GM continues to require government help. Yet Obama has hailed the GM bailout as the signature achievement of his big government programs.

 

former Gov. Jennifer Granhom (D-Michigan)

So, again to say that GM, and the auto bailout in general, was a smashing success is a frivolous statement.  However, that didn’t stop liberals last night from repeating this blatant lie.  In fact, Jennifer Granholm, former Governor of Michigan, was in rare form when she delivered a rather animated speech last night claiming:

The entire auto industry, and the lives of over 1 million hard-working Americans, teetered on the edge of collapse; and with it, the whole manufacturing sector. We looked everywhere for help. Almost nobody had the guts to help us — not the banks, not the private investors and not Bain capital. Then, in 2009, the cavalry arrived: our new president, Barack Obama!

He organized a rescue, made the tough calls and saved the American auto industry. Mitt Romney saw the same crisis and you know what he said: “Let Detroit go bankrupt.” Sure, Mitt Romney loves our lakes and trees.

First of all, Governor Granholm is mistaken.  If “Detroit went bankrupt,”  GM and Chrysler would have had zero problems hiring new folks for those entry-level positions, but at a reduced rate of pay – which would have been a draconian $47 an hour. Even Michael Moore, the lefty from Flint, wrote this morning in The Huffington (re)Post that Obama didn’t save Detroit.

Didn’t Obama save Detroit?

No, he didn’tHe saved General Motors and Chrysler. ”Detroit” (and Flint and Pontiac and Saginaw) are not defined by the global corporations who suck our towns dry and then split town to make more money elsewhere (except, of course, they continued to design and built crap cars, so eventually they didn’t make the money at all). These cities in Michigan are about the people who live here, and in the process of “saving Detroit,” Mr. Obama had to fire thousands of these people, and reduce the benefits and pensions of those who were left. There’s a lot of pissed off people in Michigan (and Wisconsin and Ohio), people who weren’t saved even though the corporation was. I’m just stating a fact, and those of you who don’t live here should know this.

Granted, Moore is still in line with his liberal roots, but he at least called out Granholm and the Democratic Party on their inaccurate statement that they “saved Detroit.”  They saved their union buddies.

Oh, No You Didn’t!

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Paul Ryan voted for the auto bailout.

Dante on September 7, 2012 at 3:56 PM

Paul Ryan voted for the auto bailout.

So did a lot of folks, Dem and Repub alike. But Ryan’s not running for President, Mitt Romney is. What has he said on the topic, if you don’t mind? Oh right:

‘LET DETROIT GO BANKRUPT’

Alas, GM is, in fact, headed for bankruptcy anyway and the bailout money you and I paid in taxes will be up in smoke.

GoodSamaritan on September 7, 2012 at 4:56 PM

GM did go through bankruptcy. It was just a ‘special’ bankruptcy which favored the union employees at the expense of non-union employees and bondholders. One of the special privileges afforded GM is they get to carry-forward their losses for income tax purposes so they won’t even be sending any tax revenues to the government for many, many years. This privilege is not afforded under normal bankruptcies. More favoritism by Obama to his cronies and union buddies. The next time around, GM won’t be so lucky.

HoosierStateofMind on September 7, 2012 at 5:30 PM

Brian Terry is dead and Chrysler is Italian.

malclave on September 7, 2012 at 5:57 PM

Dang it, is Michael Moore still using up more than his fair share of air?

Phooey.

Mary in LA on September 7, 2012 at 6:13 PM

Granholm musta had a lot of work done in California.

clnurnberg on September 7, 2012 at 6:55 PM

So did a lot of folks, Dem and Repub alike. .

GoodSamaritan on September 7, 2012 at 4:56 PM

Oh, well that makes it ok, then.

Dante on September 7, 2012 at 9:50 PM

Gm wasn’t “saved”. It died on the bankruptcy court’s docket.
The assets were stolen from the creditors and issued to a new corporation that was allowed to change to use the old name but without any of the previous debts and obligations except those owed to the unions.

The previous stockholders that actually owned the company got bupkiss, and orders to “like” it or else.

jhnone on September 8, 2012 at 2:06 AM

The assets were stolen from the creditors and issued to a new corporation that was allowed to change to use the old name but without any of the previous debts and obligations except those owed to the unions.

And the UAW was “gifted” a large ownership position in the new GM corporation, courtesy of U.S. taxpayers.

Unfortunately for the UAW, the new GM is just as poorly-run as the old GM, and has the same problem with overpaid union workers, underfunded pensions, and lousy products. Industry analysts says it’s just a matter of time before the new GM is back in bankruptcy court. But by the time that happens, GM’s divine “savior” Barry Obama will be living large in his $35 million ocean-front mansion in Oahu, and he won’t care that he screwed U.S. taxpayers out of tens of billions of dollars with his ill-conceived “rescue” of GM and Chrysler (which has already been sold off to foreigners).

Mitt Romney was right. GM and Chrysler should have been allowed to go through a lawful bankrupcy. The jobs that the bailout “saved” would still have been “saved” in a bankruptcy proceeding, but those jobs would have paid a more competitive rate and benefits — which would have made the new GM more competitive in the long run.

AZCoyote on September 8, 2012 at 12:07 PM

Tens of billions of dollars from the US taxpayer to rescue 200,000 jobs at GM. $20B to save 200K jobs comes to $100 Million for each job preserved. How inefficient can gummint really be? How many of those poor union workers would have taken $10 million cash to walk away? Every last one of them would have been set for life, GM could have died peacefully and it would have cost 10% of what we paid.
Chrysler bondholders were illegally sent to the back of the line when they had five hundred years of legal precedent to back them up, and Prezzy O still can’t figure out why investments have stalled and companies won’t hire and why bidness doesn’t trust him?

DublOh7 on September 8, 2012 at 5:37 PM

Paul Ryan voted for the auto bailout.

Dante on September 7, 2012 at 3:56 PM

…you always have to find some place to piss don’t you?

KOOLAID2 on September 8, 2012 at 6:36 PM

Paul Ryan voted for the auto bailout.

Dante on September 7, 2012 at 3:56 PM

Oh my goodness! You mean, he’s not perfect?!? The shame! I thought for sure we had found the first absolutely perfect, spotless person that NOBODY could find a fault in.

Do I need it? Yeah: /sarc

Seriously, he voted for the auto bailout to try to prevent TARP. It was a time when the American people where watching almost every “news person” on almost every network running around like Chicken Little claiming the sky was falling.

You know what, Dante, your “pure” candidate will only be pure to you and a few thousand others, just like Ryan is. But his IQ is quadruple Obama’s and 10 times Biden’s and his plans for our country a million times better.

PastorJon on September 10, 2012 at 11:29 AM

GM did go bankrupt and Obama saved the unions and screwed the rest of the us.

tommer74 on September 10, 2012 at 11:52 AM