Government won’t let go of GM

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This morning, Glenn told listeners the story of how he made the decision to cancel his advertising contract with General Motors – the biggest contract he had at the time – because of the auto bailout.

“My word to you is worth more,” he explained.

Glenn recounted this story because of news that broke earlier these week about the auto company. The feds are refusing to sell their shares of GM.

TheBlaze reported that:

General Motors Co. executives want the Treasury Department to sell its almost 27 percent stake in the company because, they say, the feds are hurting their image and government pay restrictions are chasing away top talent.

But Treasury officials aren’t interested in selling because it would mean posting a multibillion dollar loss during an election year, the Wall Street Journal reports.

GM officials offered to repurchase 200 million of the 500 million shares the feds hold with “the balance being sold via a public offering,” MarketWatch notes.

Government officials weren’t interested in the deal.

Glenn noted that the last thing he said to the people he negotiated with at GM was, “You ever get out this thing, you call me up. I do believe in GM,  but I can’t do it when you’re in bed with the government.”

What was their response?

“Mr. Beck, we are going to get out of bed with the government.” 

Apparently not.

What did GM end up with as a result of the bailout? They’re not allowed to buy out the government stakes. They’re stuck in this deal now, and chances are, if they hadn’t gone through bankruptcy in the first place, they would probably have made it to the other end by now.

“I can guarantee that those stocks would be worth more,” Glenn said.  

This isn’t the first time this has happened in our history – the banks went through a similar situation during their bailout. There were banks who didn’t want the bailout, but they weren’t given a choice.

“Are they better off? No you know why?  Because they don’t own themselves anymore,” Glenn said. “They are controlled.”

Glenn compared the situation to going on food stamps. It should be a last resort. Go to your family, your church, your town, before you go to the federal government.

“But get out of that system as soon as as you possibly can,” he added. “Find another way.  Get out because they will control you.” 

Americans are giving up their freedom one welfare check at a time – willingly giving up control of their decision making for a handout.

“I contend that anybody who is telling you now how could they possibly tell you we are better off as a country than we were four years ago.  How could they possibly tell you that we’re on the road to recovery when things aren’t working?” Glenn asked. “When you see the roles of people who’re living off the government teat, not only expand but in some cases double six months ago 36 million were on food stamps.  Now it’s 49 million – that’s crazy.  How are we better off?  How is this working unless this is your plan to enslave people.  It crushes the American spirit.  It crushes the individual.  And they control you.  This is a debate we should have. 47% of the American population? We’re not talking about poverty, we’re talking slavery.  And if you don’t believe me, maybe you should read Booker T Washington and Frederick Douglas, and what they said about government handouts.”

  • snowleopard (cat folk gallery)

    The government owns it, and recall that Obama wants to do the same to all industries as he did with the auto manufacturers. This is a system of nationalization of all industries under the Federal system; they alone will determine winners and losers, which will be in the end the unions first, foremost, and always.

    In the end, they made the deal with the devil and now have to stick with it; I have high respect for FORD going it alone. The industries should either make it on their own or go into bankruptcy to be replaced by something better; that is the way America works and not with the massive intervention of the Fed’s.

    • MarsBarsTru7

      If we could ever get a decent group of people in office to clear-cut deregulate our economy you’d see a huge burgeoning of automobile companies and Ford wouldn’t be so alone in the market.

      GM and Chrysler will never see a penny from me that is not forced from my hand through taxation. Both companies need to be left to die a natural free economy death.

      • Anonymous

        There was a radio program years ago when I was quite young. The slogan they used every broadcast: The more the government does for you, the more it can do to you.

        Truer words were never spoken and this GM news confirms it.

        • Anonymous

          The more free stuff you get from the government, the less freedom you will have.

      • Anonymous

        Mars, Those companies found out in a very painful manner what happens when you turn to gov’t to ”help” you out. Don’t know if they will ever be able to wiggle free from the gov’t grip or not. Because of what they did, I made sure the last car I purchased was a Ford, though we had driven both Chevs and Chryslers before.

  • Stefano

    Government owned company are very bad for
    consumers, workers, innovation, and for the Gov too.
    I know as in Italy we use to have a lot of this kind of firm.
    X example Alitalia, or ENEL. a complete disaster for the nation.
    Guys, You are going to become European with Obama…
    And it’s not a good situation, trust me

    • greywolfrs

      I disagree. We have something the Europeans do not have, it’s called the Second Amendment.

  • Rahm Kota

    What the big deal they make government cars now comrade.

    • Anonymous

      I love this! It’s so funny!

  • MarsBarsTru7

    GM represents America’s Volkswagen. This is socialist fascism. Forget the race issues. Forget the antisemitism. Look at the rise of the Nazi party in Germany and look at how they “reformed” the auto-industry and labor problems.

    GM 2009 = Volkswagen 1937

    • Anonymous


  • Anonymous

    At last count, if the gov’t sold out today, they’d lose less than $16B dollars (and heck, they can just print that in QE-unlimited). The only ones who got any benefit from this is the UAW … and that was by design. This is a microcosm of a horrible economic situation. Right now, it is honorable to want more of other people’s money, and villanous to want to keep more of what you’ve earned. BHO is well on the way to bringing us beyond economic recovery … sadly Romney/Ryan’s solution is only marginally better. The patient (the economy) has stage 4 cancer, and our solution is as it has been for decades … more morphine. Have a nice day y’all.

  • Jerry Cullymore

    and on the other hand, had the government sold their stock back at a loss, we would all be up in arms saying “SEE! We told you it was a bad idea” GM is in no-win situation. Should’ev taken the bankruptcy

  • new2la

    Let this be a lesson: This is what happens when you sell your soul to the devil! This is what happens when you borrow, knowing you can and should do without. When you owe someone, whether it be money or favors, you risk being in debt to evil forces.

  • Anonymous

    I thought that the bailout of GM was along the same lines that it was for AIG etc. The gov’t had NO business buying into GM with the bailout. The best lesson to teach the sheeple and its gov’t is to stop buying GM products.

  • Barry Levy

    don’t understand the big deal, He invested our money in GM the same as in the Green energy, and this is his idea of spread the wealth. So when the wealth is spread we will all be poorer, have less people working, less people wanting to work, and that means more supporters for obozo. Perfect.

    When do we kick this unpatriotic failure out of office, and when to people wake up to the disaster this spread the wealth, unpatriotic failure and economic dunce is doing to this country.

    • Anonymous

      Sadly, this is not because he is a dunce. It is because it is his plan. He is not a true American at heart and I don’t believe he is a Christian as he says. His actions speak louder than his words. Pay attention.

    • Anonymous

      Only problem with that, Barry. If you are one who is receiving ”free” gov’t money, would you want to vote out the man heading the administration who is giving you this ”free” money? Doesn’t look like there are many who think like that. Looks like all this ”free” stuff is the gov’t’s way of buying votes?

      • Sandie

        It is.

  • greywolfrs

    When has the government ever given up anything? When has the government ever put their sticky fingers into anything and given it back? Why would anyone think that would be case with GM? It will never happen, the government never gets rid of anything.

  • Draxx

    Success and Failure are a part of everyday life, we win some we lose some…

    That is what helps spawn creativity, and the desire to accel. Whatever happened to true sportsmanship? Whether you win or lose, enjoy playing and respect others that landed on the other side of the coin!
    Back in the 70’s during my little league years, the Director of Activities had kids my age and a little older. Everytime their kids won there were trophies and big pizza parties on the Leagues Budget. But, when other teams without their children were handed this BS, “Sorry there won’t be any trophies because there is a shortfall in the Budget, but we do have these lovely ribbons and paper awards.” Also, the league was setup with insider trading (the preferred coaches ended up with 80% of the Talent, but occassionally an unknown natural would upset their plans and take the season). I hated that man as a kid, but it taught me at a young age that life wasn’t always fair. A lesson that has been with me a long time, another lesson I learned is how crappy it feels to be ripped off by cheaters, and thus I try not to repeat their errors! It sucked, but I never became suicidal, mentally incompetent, held it against others, or never gave up/in…

    Whatever happened to things that don’t kill us makes us stronger?

    • Anonymous

      I guess it’s because nowaday, Draxx, EVERYBODY wins! Can’t hurt the feelings of those who aren’t really that good, can we? Competition is so over-rated, any way, huh? Except maybe in political races. (Good for you, that you were one who seems to have come out stronger.)

      • Anonymous

        You are right everybody gets a trophy. There are no winners and losers,we are now too thin skinned.They do not realize that only the strong survive, but the circle is coming around, it only took 4 years.

  • Anonymous

    Since GM paid some of its debt to the government with stock, we should expect our dividend checks to arrive any day now. Right? RIGHT?!?

  • Anonymous

    Well, GM, you made a deal with the devil and now he wants his due. You should have known better.

  • Ron Rose Isn’t it a conflict of interest for the Federal government buying vehicles essentially from itself? Isn’t there ethic laws restricting this. Does not the Government have to go by competitive bidding?

    • Ron Rose

      That’s a good reason NOT to sell off stock if you can buy vehicles for the whole Federal Government at rock bottom prices. Wonder what all his friends drive?

    • Anonymous

      Ethics? Ethics? Hey, Ron! You’re talking about the Obama administration here! Guess if they feel they own the company, might as well use their product.

  • Anonymous

    Oh. Oh. Gotcha, GM! Wouldn’t it have been better to file for bankruptcy or just belly-up and start over again? I’m not in business, so really don’t know if things would have worked out favorably if that was tried. Right now, it seems that the gov’t has you, as husband would say, by the short hairs. Sorta like making a pact with the Devil?
    GM has probably realized that they ticked off a lot of would-be customers by taking the bailout. Too bad. They may still stay away under present circumstances.

  • landofaahs

    This lifes dim windows of the, soul distort the heavens from pole to pole, and leads you to believe a lie when you see with and not through the eye.—Blake
    If you trust govt., you’re an idiot.
    My fealty towards my govt. is equally matched by it’s fealty to my personal rights.

  • Anonymous

    I think no reasonable persons wants to see GM go under. However, that is what bankruptcy provisions were designed to help struggling businesses. A time to restructure and correct some fundemental flaws and non-productive and non-profitable operations. Now we see our adminstration thinking they are corporate wizzes, and understand and can correct foundational problems in a major corporation…. Move over and let companies like Bain Capital do this…. they for one have the experience and the track record to correct issues like these !!

    • Sandie

      That is the obvious reason why Romney would be great for straightening out the waste in DC and getting the government streamlined, while building up the economy. He actually knows what he’s doing while Obama does not. Obama and the Dems are afraid of Romney winning, turning things around and making Obama look like an idiot.

      • Anonymous

        Obama is already an idiot. If I remember correctly, Romney said GM should have gone into bankruptcy and everyone jumped all over him for saying that. Now GM wants away from the government, and as one person put it “they have them by the short hairs.” GM will not be productive as long as the government is telling them what to do. The Chevy Volt is a prime example. Obama couldn’t even run a lemonade stand, why should he think he can run GM. Because he gave them the money, and now they regret it.

        • Sandie

          Yes, and people couldn’t understand it because they probably never bothered to look into it or listen to the situation explained by some at the time.

        • Anonymous

          You hit that nail on the head…..

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