PRO AND CON

One reason I like living in America is the truth of bargains at thrift stores; one reason I dislike being here is hearing the lies about the bailout of GM.

How can GM report the highest annual profit ( $7.59 billion) in its 103 year history? This 62% increase means it earned $4.7 BILLION in 2010. GM credits sales of cars and trucks, but in truth a bailout at taxpayers expense took them out of the red into the black in the first place and a second expense incurred from purchases of their vehicles.

How can GM claim little debt and $38.8 billion in liquidity? Well, it was ‘bailed’ out with billions of taxpayers dollars and it will pay few U.S. taxes for years to come as a result of the government’s rescue at taxpayers’ expense.

What are the concessions, cost cutting measures or new procedures to reduce expenses? GM will stick to its labor agreements and prohibit further plant closings through 2014. GM workers will keep their existing pensions ( a $24.5 billion shortfall).

Profit margins at GM are stalled at 2.9% of sales. The present stock price of $27.00 would need to exceed $50 a share for the U.S. government to break even on the rescue, yet the Treasure would consider selling out at $30. Why?

GM tries to blame a $747 million dollar loss on the European debt crisis, never looking into their back lot of overspending. Their Chief Executive Dan Akerson says sales will grow in 2012 but he could not predict whether GM will make more money this year. Where then will come any future profits?

Now to the kicker… a profit-sharing bonus check of $7,000 will be given to 47,500 United Auto Workers. In addition to which they will receive $250 each person meeting quality targets. Why? Do the math to learn that this totals $332,500,000 million dollars at taxpayers’ expense.

No real profit exists, only lies. GM still operates at the taxpayers’ expense.

No bargain at a thrift store will compensate for this outrage, this theft of my freedom and the freedoms of my fellow Americans.