Could it be Obama was RIGHT about GM?

Discussion in 'Economy' started by rdean, Apr 12, 2010.

  1. rdean
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    rdean rddean

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    SHANGHAI (AP) -- General Motors Co. said Monday demand in China is so strong that the company's annual sales may top 2 million vehicles this year -- four years ahead of schedule -- and could exceed 3 million by 2015.

    GM is counting on robust growth in China, India and other emerging markets to help offset weakness in its home U.S. market as the Detroit automaker struggles to return to health after its near-collapse in 2009.

    The company, which reported a $3.4 billion loss in the last quarter of 2009, plans to pay off billions of dollars in loans from the U.S. government by June, five years ahead of schedule, and says it could report a profit as early as this year.

    GM China Sales May Exceed 3M Units By 2015

    If we had listened to the Republicans, General Motors would be dead and gone. So many more people out of work. Not just those that work at General Motors, but also all the suppliers, engineers. Plus the people who work in any community around GM.

    I wonder how much interest the US is getting from GM loans?

    You have to admit, so far, Republicans have a "perfect" score. Wrong about everything.

    Wrong about Iraq

    Wrong about Afghanistan

    Wrong about the economy

    Wrong about health care

    Just, well, "wrong".
     
  2. rdean
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    rdean rddean

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    Still waiting for Republicants to explain why Obama was wrong to help GM.
     
  3. dilloduck
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    dilloduck Diamond Member

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    Stay right here and don't move---one will be with you shortly.
     
  4. rdean
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    rdean rddean

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    OK, I'm still here.

    Do Republicans feel it would have better for all those people to lose their jobs?
     
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    I'm a Democrat, but so far have not seen any justification for Obama's destruction of GM and sell out of Chrysler to the Italians. All we have from GM is projections of profitability some time in the future. Chrysler?
     
    Last edited: Apr 12, 2010
  6. Sofus
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    Sofus Member

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    I almost fainted, you don't see the words Obama and right together to often in print! Thanks for the article
     
  7. rdean
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    rdean rddean

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    This:

    GM's China sales jumped 68 percent in March over a year earlier to a monthly record of 230,048 vehicles, propelling a 71 percent surge in first quarter sales to 623,546 units.

    is obviously more than a "projection".

    Just saying.
     
  8. rdean
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    rdean rddean

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    Conservatards will never admit Obama was right.
     
  9. Neubarth
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    Neubarth At the Ballpark July 30th

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    You are totally out of touch with reality. This is not a product of fantastic GM engineering or sales related to a newer superior product. This is a direct reflection of the Chinese stimulus package and the fact that the upperclass Chinese are using their home value appreciation to finance car purchases. (Oh my gosh, where have we seen this before???)

    Now, the question remains, are sales up by a great degree globally?

    Or, are we looking at projections for increased car sales if the present trend continues in China?
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    There were other remedies for GM.

    If the business prospects are so good for China, there is no reason why private investors could not have restructured the company, and moved forward with better designed operations (and union comp plans and benefit packages).

    Instead, Obama violated the property rights of the bond holders (debt has first claim on assets) by cramming them down - and rewarded the union with the spoils. That was the point after all.

    Bond holders will remember this. The U.S. has a ton of debt which will need to be rolled over. As Obama was willing to disregard the valid claims of the GM bond holders and is engaged on structurally damaging spending binge, the market will see higher interest rates to compensate for the risk. It's already happening - and in the forseeable future, the higher debt and interest rates will cause the annual interest payments to be approximately $1T (and overwhelming burden on the economy).
     

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