GM Spinning the Facts....

From Gary Bauer of American Values:

The spin is not right. Where to begin…

For starters, GM bondholders, including many retirees, were wiped out. Under the usual rules, bondholders are supposed to be first in line in any bankruptcy. But Obama wiped them out in order to bailout the United Auto Workers union, which is a major source of support for Obama.

Second, according to one report, the government is taking a $9 billion loss on this sale of new GM stock. GM still owes taxpayers roughly $40 billion, and one analysis suggests that the stock will have to increase roughly 60% just for the government to break even.

Additionally, think about this situation from the standpoint of Ford. It was responsible in its borrowing and it thrived without taxpayer money. GM was reckless and got into huge problems. Taxpayer money was used to bail it out and now "Government Motors" is emerging with a debt-free balance sheet. How many future car sales will Ford lose because the Obama administration treated GM more favorably for its bad business practices?

This is a lot like the mortgage fiasco. Two guys buy into the same neighborhood. One does so only after years of savings and careful planning, while the other gets in over his head with a no-money down loan. The second guy gets a bailout or mortgage modification, while the responsible man looks out his window and sees his neighbor with new patio furniture thanks to the money he has just saved.

GM should have been held to the same standard and played by the same rules that apply to you and to me and to every other business. Bankruptcies take place all the time. There are laws and procedures designed to handle such cases. Instead, the unions called up the White House, and Obama put up $50 billion of your money.

By the way, the same administration that accused Republican candidates of sending jobs overseas rigged this IPO so that the Chinese and Saudi investors got major stakes in the new Government Motors. So much for this administration's "America first" investment policies.