Remember how Obama keeps telling us how he saved GM, and how our economy is
getting better, it seems the car company he bought is being saved by Govt
employees using our tax money to buy new cars. 79% of GM's sales last
month was government purchased.
GM's sales figures for last month were the best since 2008 , up 16% for
the month of June. YIPPEE! Well, wait just a minute. It seems that those
rosey sales figures are due primarily to a 79% increase in fleet sales to
the U.S. government in June. That's right. Our tax dollars are being used
to pump up GM's sales figures ahead of next month's quarterly report so
that Dear Leader can point to Government Motors as a huge success. The
incestuous relationship between GM, the UAW and the Regime has never been
more glaringly apparent. I've said it before and I'll say it again. GM is
unsustainable without government subsidies and will ultimately go bust
again, taking billions of taxpayer dollars down with it.
We bailed out General Motors to the tune of $50 billion. $30 billion of
this is effectively a loss, mostly sunk into fattening the United Auto
Workers union-fierce Obama supporters-while the actual bondholders were
shown the elevator shaft.
Meanwhile, as NewsBusters reports, "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."
But it gets better. Despite the overwhelming negatives, the tiny bright
spot of positive June sales numbers is being heralded by Obama and the
leftist press as proof the auto bailout was a "success."
Obama is now campaigning on the "success" of - the government buying cars
from. the government's car company. With your 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.
The pressure is on Government Motors to appear financially strong as this
may be the last earnings report before November elections and sets the
stage for how "successful" GM is. One of GM's past tricks to help fudge
earnings numbers has been to stuff truck inventory channels. Old habits
die hard at GM. According to a Bloomberg report, "GM said inventory of its
full-size pickups, which will be refreshed next year, climbed to 238,194 at
the end of June, a 135 days' supply, up from 116 days at the end of May."
135 days' supply is huge, the accepted norm has been a 60 day supply. The
trick here is that GM records revenue when vehicles go into dealership.