obama's treasury department has quietly released GM from its bailout requirement to boost US production.
Instead GM is boosting production in China making cars there for export here.
Examiner Editorial: GM got bailout, now ships jobs to China | WashingtonExaminer.com
Saving General Motors from bankruptcy was among President Obamas most frequently cited achievements when he ran for re-election last year. Democrats everywhere touted the companys revival as proof of the 2009 bailouts wisdom. That was then. Now, Obama has quietly released the auto manufacturer from a bailout requirement that it increase its production in the U.S. Instead, GM is spending billions of dollars building up its production capacity in ... China.
This is happening despite the fact that the Treasury Department has to date recovered just $36 billion of its original $51 billion loan to GM. By most analysts predictions, American taxpayers will be out approximately $10 billion when the remaining stock is sold off. Which is a long way of saying that it now appears that taxpayers paid $10 billion to make it easier for GM to accelerate its foreign outsourcing and send more manufacturing jobs to China.
It is yet more proof that Mitt Romney was right in the 2012 presidential campaign: GM should have gone through a traditional bankruptcy instead of the politicized farce of a taxpayer-funded bailout and government managed bankruptcy. The TARP funds involved could have instead been used to provide liquidity for a managed sale to a private buyer that minimized the opportunities for political interference in the new GMs operations.
Instead GM is boosting production in China making cars there for export here.
Examiner Editorial: GM got bailout, now ships jobs to China | WashingtonExaminer.com
Saving General Motors from bankruptcy was among President Obamas most frequently cited achievements when he ran for re-election last year. Democrats everywhere touted the companys revival as proof of the 2009 bailouts wisdom. That was then. Now, Obama has quietly released the auto manufacturer from a bailout requirement that it increase its production in the U.S. Instead, GM is spending billions of dollars building up its production capacity in ... China.
This is happening despite the fact that the Treasury Department has to date recovered just $36 billion of its original $51 billion loan to GM. By most analysts predictions, American taxpayers will be out approximately $10 billion when the remaining stock is sold off. Which is a long way of saying that it now appears that taxpayers paid $10 billion to make it easier for GM to accelerate its foreign outsourcing and send more manufacturing jobs to China.
It is yet more proof that Mitt Romney was right in the 2012 presidential campaign: GM should have gone through a traditional bankruptcy instead of the politicized farce of a taxpayer-funded bailout and government managed bankruptcy. The TARP funds involved could have instead been used to provide liquidity for a managed sale to a private buyer that minimized the opportunities for political interference in the new GMs operations.
