Here are some quotes that really deserve to be shared:
And:This [backing GM warranties] is great news — for fans of the DMV. Vehicle owners can expect the same kind of efficiency and expertise they receive there in handling warranty issues with their vehicles. Instead of working with dealers on the warranties, the government will now have to get involved, which will mean extensive paperwork for every warranty claim as the Directorate of Auto Warranties will have to account for every single penny, or at least those pennies that don't get earmarked for Auto Warranty Bike Paths by Rep. Jim Oberstar.
And let's not forget what this will do for Detroit's competitiveness. Now that warranties will get funded by Uncle Sam, what do you suppose will happen to them? They'll get shortened, and if they become uncompetitive, it will literally take an act of Congress to get longer warranties offered by Detroit. But that's not what will really happen. If the Directorate of Auto Warranties discovers that the competition offers longer and more robust warranties, the Directorate will simply get Congress to pass laws outlawing them. After all, we can't have a bunch of furriners undercutting Uncle Sam, can we? Why, that would be downright unpatriotic!
Government does not belong in the business of offering auto warranties. Two years ago, that would have been so obvious as to elicit derisive laughter for even mentioning it. But when we get a bunch of used-car salesmen in the White House and Congress, this is the result.
The Obama administration has it figured out.
What the country really needs, apparently, is an automobile industry that is rolling out highly fuel-efficient cars, from the cleanest, safest, unionized factories in the world, made by highly paid workers with excellent health and retirement benefits. Of course, the production process needs to be inexpensive and efficient, too, so that the cars are competitively priced and can attract consumers who might otherwise gravitate toward bigger and heavier vehicles.
Gee, why didn't Rick Wagoner think of that?
The president and his team are suffering from the same conceit which has afflicted many other activist governments in many other settings. They believe a central government can find a way to induce reluctant consumers to buy products they don't want from inefficient suppliers without asking anyone, anywhere — save for corporate hot-shots — to make an economic sacrifice. Certainly, the unions aren't to blame. Therefore, the problem must be poor "leadership." And if the companies can't manage themselves well, then by golly, the government will help them do it.
A helpful translation: help = force. This scenario always plays out the same way: people will put up with it for a while to try to let the government succeed, but when it becomes painfully obvious that they're even worse than the previous ownership, everyone walks away from the companies and the go under anyway. The only difference, of course, is the fact that a crapload of taxpayer money has been thrown down the drain in the process.
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Sure, he might have to boot a CEO now and then, but it's not like R&D will be running the specs on the new hybrid by Geithner for approval, right? This reminds me of Steinbrenner's infamous announcement after he bought the Yankees that he wouldn't be involved in the day-to-day operations of the team. Before you knew it, he was firing managers left and right. Just think of Wagoner as Obama's Billy Martin.
You know what's always helpful, too, when trying to scare a failing industry into reforming itself? Promising that "we cannot, we must not, and we will not let our auto industry simply vanish."
The industry won't vanish, you idiot! This company might fold, but its pieces will not simply disappear; they'll be divided and sold off to other companies who have sound operating policies. Obama is playing up the fear card again here.
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With the way SNL has been hand-holding Obama, I'm sure if they do anything it will show a clean maintenance bay with NASA quality engineers changing your oil. It will be done in 5 seconds flat and it will only cost 3.99.
Of course we all know in reality if the government ran GM's shop it would take 6 people to consult with each other on whether it is left loosey or righty tighty to remove the oil drain plug, the oil change would take a week and the government cost would be around $1000.00
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As great of a lawyer, community activist, and law professor as President Obama may have been, when has he ever run any company or come up with a single business plan. Now he's running General Motors? But Obama didn't stop at auto company CEO:
No one can deny that our auto industry has made meaningful progress in recent years. Some of the cars made by American workers are now outperforming the best cars made abroad. In 2008, the North American Car of the Year was a GM. … just in case there are still nagging doubts, let me say it as plainly as I can –- if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warranty will be safe. In fact, it will be safer than it's ever been. Because starting today, the United States government will stand behind your warranty.
Did we elect a president or a car salesman? Problem is, when we let the government become a market participant, there is no difference. Hence the slew of other incentives Obama threw at the auto industry.
Back in November we argued that bankruptcy was the best option for General Motors. But others argued that General Motors needed more time to prepare for a filing. Its now four months later and the Obama Administration is now claiming GM should have another 60 days. This political charade must end. No President of the United States should be selling cars out of the Grand Foyer of the White House. It's embarrassing. Bankruptcy is still the best policy for General Motors and Chrysler.
So, let's summarize. GM and Chrysler have decades-old business models that are fundamentally broken due to union strangleholds on profitability. They're about to go under, which would lead to bankruptcy proceedings to revamp contracts, sell of assets, and generally change things around so the company would emerge as profitable. However, Obama decided that GM and Chrysler were 'too big to fail'. He threw them some bailout money, they took it, and he now owns them. He demanded a new plan, they provided one, and he rejected it. Now he's dictating policy to major private companies, predicting doom and gloom if he doesn't get his way.
Got it?
Is it just me, or is there something wrong with the fact that the U.S. government has just taken over a private company? This is America, last I checked. Of course, if Obama continues to get his way, you can count on many more companies taken over by the government. It's a sign of just how far we've gone down the road to true socialism. This is everything that America is NOT.
As a result of the Obama's continued bludgeoning of the private sector, the stock market found new legs on its downward spiral, ending over 250 points lower.
You've read here before what is the suspected interest in auto manufacturing on the part of government: to force green-ness on vehicles. They're going to take over the auto companies and then force them to make 'green' cars that no one wants to buy. It'll be political rather than economic winds that drive the industry, and that spells certain disaster. You think jobs are being shed in the auto industry now? Just wait till that happens...
Rush Limbaugh proposed another interesting theory several months ago that is certainly worth consideration. Obama has been bought and paid for by unions. They spent loads of cash on his campaign, and sent their thugs to intimidate voters wherever necessary. Limbaugh suggested that this is payback for their efforts to get him elected, and that the eventual outcome is union ownership of these companies. It's not at all far-fetched when you think about it. Wagoner is gone, but how about the head of the UAW? Haven't heard a peep about him. Last fall before the bailouts, the unions refused to make any meaningful concessions to save the company, even in the face of bankruptcy (I guess they knew they had friends in high places, huh?). It is obvious and proven that the unions are a tremendous drag on these companies through programs like job banks -- where people literally get paid to do nothing -- and lifetime benefits. I heard the other day that GM has about 100,000 people on payroll, but provides comprehensive benefits to over 1 million people. These companies aren't run by car guys, they're run by financial guys because they are in reality a giant financing and HR organization with a small (unprofitable) auto manufacturing division on the side. It has been documented that all these costs incurred by the union drag add thousands of dollars to every vehicle made, thus forcing the company to either sacrifice quality or sit at a higher price point. That's the problem, but it's the one thing Obama is refusing to fix. Thus, Limbaugh's suggestion.
Time will tell if Limbaugh is correct or not, but things are falling suspiciously in line with his prediction.
What's the bottom line? Obama is taking more and larger steps down the road of socializing America. Today it's GM, tomorrow it will be Chrysler and AIG. Who's next? I have absolutely no doubt that he'll continue - he's already broadcasted it.
As we've said many times before, it is critical to understand that Barack Obama is a socialist, and he genuinely feels that he is doing the right thing in leveling the playing field and making things 'fair'. Unfortunately, what that means in reality is destroying the wealth and prosperity of this country. He has launched an all out assault on capitalism, free markets, and anyone associated with wealth, and is going to continue until he thinks we're all equally miserable. I think another component of this is that he is a globalist, meaning he sees no special place for America. Remember his speech in Germany where he apologized on behalf of America? Remember the Global Poverty Act? Many of his actions are anti-American, and have been for a very long time; many of his mentors and associates are devoted America-haters.
He's got a ways to go yet, but he's laying the groundwork for what he calls the 're-making' of America. It is, in reality, the destruction of a free and prosperous America, and the introduction of a mediocre (at best) and socialist America. Sadly, he's made substantial progress in just two months; what do you think he'll accomplish in the next 22 if he proceeds unchecked?
America will be unrecognizable.
There's my two cents.
Sources and Related Reading
http://michellemalkin.com/2009/03/30/here-we-go-again-2/
http://hotair.com/archives/2009/03/30/unveiling-the-government-car-warranty/
http://apnews.myway.com/article/20090330/D978CUSG0.html
http://finance.yahoo.com/news/Stocks-fall-as-automaker-apf-14783522.html
http://hotair.com/archives/2009/03/30/wagoner-cries-all-the-way-to-the-bank/
http://corner.nationalreview.com/post/?q=NWYxMmZiNWM1YTY2MjM1NTVhZjgzNzY0NmZmZWRlYmM=
http://hotair.com/archives/2009/03/30/new-owner-of-gm-im-pretty-sure-were-not-going-to-run-gm/
http://online.wsj.com/article/SB123841609048669495.html
http://www.nytimes.com/2009/03/31/business/31markets.html?_r=2&hp
http://corner.nationalreview.com/post/?q=NmUwNDE1YmRmY2UyOTdkMzNlY2ZiZjg4ZGExYzEyYTU=
http://blog.heritage.org/2009/03/31/morning-bell-car-salesman-in-chief/
http://www.theresmytwocents.com/2008/11/mother-of-all-election-posts.html
http://theresmytwocents.blogspot.com/2008/02/legislative-alert.html
http://www.theresmytwocents.com/2009/03/obama-economic-policy-economic-war.html
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