For years the Obama Administration maintained that they had no significant involvement in the day to day operations at General Motors as the company was guided through a taxpayer-funded bankruptcy process. A report from the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) now sheds light on the process and confirms that the Administration did, in fact, drive decisions at GM. One such decision saw GM provide taxpayer funds to "top-off" pensions for politically-favored UAW retirees at Delphi while non-union retirees lost the majority of their benefits. Treasury officials previously denied any involvement in the actions.
The Chevy Volt madness continued this week with General Motors announcing that consumers will see a $5,000 decrease in the price of President Obama's favorite green wonder-car. Sales of the Volt have been dismal, with most consumers refusing to be as smitten with the car as the President and the few enthusiastic green ideologues who seemed to believe that spending approximately $20,000 more for a car (over a gas-powered rival) that can save them about $3 a day in gas makes sense. What seems to go unrecognized is the fact that the price cut comes at the expense of GM shareholders, not to mention the costs to American taxpayers.
President Obama's former head of the Auto Task Force, Steven Rattner, helped orchestrate the auto bailouts that saw billions of taxpayer dollars spent to save General Motors and Chrysler in a rigged bankruptcy proceeding favorable to political allies (i.e., the UAW). Rattner is now calling for taxpayers to come to the rescue of Detroit as the city struggles to restructure through a bankruptcy process without federal handouts.
For nearly five years, Fannie Mae and Freddie Mac have operated under federal conservatorship. A number of observers, including lawmakers on Capitol Hill, think that's too long. What's more, they want to pull the plug on the mortgage giants' existence. On June 25, Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., introduced a bill, the Housing Finance Reform and Taxpayer Protection Act of 2013 (S. 1217), that would replace these companies with a new insurance-based system. Supporters champion the legislation as a way to protect the public from future bailouts and promote more home mortgage lending.
The US Chamber of Commerce's "On the Road with Free Enterprise" tour has quietly entered its second month. The main story currently on the "Free Enterprise" website is a piece titled "First Ever Sushi Tech Combats Fish Fraud." The fact that General Motors is hypocritically co-sponsoring a free enterprise tour might bring to mind the words fishy and fraud as well.
"Beneath the deep purple cuts of healthy tuna and the smell of fresh wasabi, there lies a sushi underbelly in America that will make your stomach turn," reads the first line of the all-important "fish fraud" story. Likewise, GM's anti-free enterprise bailout process exhibited an underbelly of political cronyism that turned the stomach of those (like GM bondholders and Delphi non-union retirees) who saw there rights subordinated to the politically-favored UAW.
A retirement plan supposedly is an excellent reason for joining a union. Yet a March report by the U.S. Government Accountability Office reveals chronic underfunding and potential insolvency of pension plans involving a union and two or more private-sector employers within the same industry. The insurance fund covering these "multiemployer" plans, run by a federal agency, Pension Benefit Guaranty Corporation (PBGC), "would be exhausted in about two to three years if projected insolvencies of either of two large plans occur in the next 10 to 20 years." The study follows a January PBGC report projecting "current premiums ultimately will be inadequate to maintain benefit guarantee levels."
The Free Enterprise site chronicles the "Free Enterprise Tour," which would be a welcome undertaking if not for the sponsorship of bailed-out General Motors. According to NLPC President Peter Flaherty, "I don't know who looks worse, the Chamber for not appreciating that the GM sponsorship looks silly to many people, or GM for acting like it's a competitive company operating in a real marketplace."
It appears that there is no end in sight to the Obama Administration's costly quest to electrify America's auto fleet, despite the recent flurry of reports that continue to confirm that the benefits of electric vehicles (EVs) are practically nonexistent in comparison to the costs. One of these reports even came from Obama's own NHTSA (National Highway Traffic Safety Administration) panel which downplayed the importance of EVs and claimed that electric cars will only need to account for between one and three percent of car manufacturer's product portfolios by 2025 for lofty government EPA requirements to be met.