We are little late to the party on this but last week, the President was in Pueblo, Colorado calling for what we can only assume a blanket nationalization of all U.S. industries:
President Obama, while villifying Mitt Romney for opposing the auto industry bailout, bragged about the success of his decision to provide government assistance and said he now wants to see every manufacturing industry come roaring back.
“I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he said. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.
“I don’t want those jobs taking root in places like China, I want those jobs taking root in places like Pueblo,” Obama told a crowd gathered for a campaign rally at the Palace of Agriculture at the Colorado State Fairgrounds here.
(He's letting his Peronism show and we don't think he cares because that's who he is. Apparently, green loan programs for not-yet-market-ready technology isn't nearly enough, these days.)
We think we get it: The President wants to sink tens of billions of tax-payer dollars into the manufacturing sector with scant hope of ever seeing it returned dollar-for-dollar while giving the shaft to non-union pensioners as he did to the Delphi retirees who are in process of suing his administration's ass for their trouble. That's kind of the playbook, right?
And we're glad we held off on blogging about this because we are seeing more evidence of the "success" of the General Motors bailout as the Treasury Department released some rather impolite news on Friday:
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 fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.
GM stock would need to get to $53/share for the U.S. tax-payer to break even. That's not happening. As it stands now, if the government were to dump all of its shares at the current price, the tax-payer would lose more than $16 billion on the GM bailout. Obviously, not 3 months in front of the election, that's not happening either, so not only are we're stuck with this turkey of an "investment", we have the economic illiterate currently in the White House doubling down on the same stupidity.
Last line of linked article:
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.
Gee, can't wait to see what that's going to be and more importantly, how much it's going to cost us.