GM True Lies Redux: A Time to Boycott?

April 23, 2010

In yesterday’s post about GM’s touting of their TARP payback (with interest!), I asked the following question:

“Unless GM is engaging in financial shell games of a kind that would put Bernie Madoff to shame, how is it possible for a company which posted a $4.3-billion loss for the half year after “emerging” from bankruptcy last summer,  lost $30.9 billion in 2008, and has laid off nearly 65,000 workers over the past year expect to a) build good cars that consumers want to buy, b) keep up payments to unions and union healthcare trust funds, and c) pay back their debt to American taxpayers?”

Clearly, I’m in good company, as American Thinker‘s Joseph Ashby arrived at the same “shell game bordering on fraud” conclusion (UPDATE: HotAir calls “shell game” too):

“So how did a recently bankrupt company which is still hemorrhaging money pay back a multi-billion dollar loan five years early? Could it be that the mountain of bailout cash was much more than turned out to be necessary?

“It’s hard to conclude that the repayment is anything other than a political and marketing ploy where the federal government receives “repayment” with the very same loan money handed out starting in 2008…

“Over-lending on a loan to achieve quick initial repayment (and thus inflate the loan’s perceived value), in the private economy, is called fraud. Where did GM come up with the money? It’s a question that merits asking.”

Ashby then links to FoxNews, which splashes cold water all over GM’s initial triumphant “pay-back” announcement in an article outlining Sen. Chuck Grassley’s (R-IA) letter yesterday to tax-cheat Treasury Secretary Tim Geithner:

“It appears to be nothing more than an elaborate TARP money shuffle…”

“The bottom line seems to be that the TARP loans were ‘repaid’ with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials.” [emphasis mine]

TARP watchdog Neil Barofsky supports Sen. Grassley’s conclusion:

“I think the one thing that a lot of people overlook with this is where they got the money to pay back the loan. And it isn’t from earnings. … It’s actually from another pool of TARP money that they’ve already received,” [Barofsky] said Wednesday. “I don’t think we should exaggerate it too much. Remember that the source of this money is just other TARP money.” 

Barofsky told the Senate Finance Committee the same thing Tuesday, and said the main way for the federal government to earn money out of GM would be through “a liquidation of its ownership interest.” 

Grassley criticized this scenario in his letter. 

The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government’s ability to sell GM stock in the future. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity swap is not a repayment.”  [emphasis mine]

I’m torn, here. GM is, at best, deliberately misleading the public; at worst, the company is outright lying to us. I want to suggest a boycott of GM cars (for those who would actually consider buying a GM car in the first place), but if nobody buys their cars, they’ll never pay back the TARP money.

…Hell, they’ll never pay it back anyway. Go ahead and boycott ’em!

Stoutcat


ACORN Offices Raided In Vegas – Will This Be Obama’s Watergate?

October 7, 2008

 

As  I write this, Nevada authorities are, hauling records out of the Las Vegas office of ACORN (Association of Community Organizations for Reform Now) looking for evidence of Voter Fraud.

Acorn is one of the “Community Organizations” that Barack Obama has been championing for years. ACORN has long been suspected of using various and dubious methods of registering voters (translation: Committing voter fraud) and in-your-face community confrontation methods with elected authorities… all using techniques straight from the Saul Alinsky course of community activism. They’re also known for strong-arm methods of getting “corporate contributions” for their community activism. Their methods would make Jessie Jackson blush.

Did I mention that Barack Obama was/is a “Leadership Trainer” in ACORN?

Had this raid come six months ago, it could have uncovered the iceberg that would sink the Titanic of the Obama campaign.  It will take time to gather and absorb the evidence, but what this DOES do is provide yet another spotlight on Obama’s choice of groups the Obama has consistantly (to use his favorite word) aligned himself with.  

Did I mention that ACORN is included in the funding as an add-on piece of pork to the $700 billion bail-out? Gee, I wonder what politician might have seen to it that jackpot of our tax dollars goes to this group? Fortunately, some sharp-eyed bloggers noticed, and by the next round, that little tid-bit was gone.

“Oh-Bama? You Got Some ‘Splaining To Do…”

My hope is the Vegas law enforcement will find enough to justify the call for a federal investigation to dig into ALL of ACORN’s local and national branches. 

ACORN stinks like a rotting fish… and I predict that Barack Obama is going to find it very hard to shake that stink, no matter how he spins this.

Gerry Ashley

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