Osama is dead, and GM is alive!
So declared Joey B, our most senior foreign relations expert next to BO himself. Of course the full import of his comment depends a lot on what your definition of “dead” is:
Of course “GM is alive” also depends on what your definition of “alive” is:
“Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.”
Butt thanks to the application of government mathemagicals to the formerly free market of auto production, GM is still able to post some pretty impressive quarterly statistics! Not as impressive as our unemployment rate, butt pretty good nevertheless.
And they’re doing it the old fashioned way: by losing a little bit on every sale and making it up in volume. At least that’s the plan. And heck, it must be working because GM’s bond ratings are nearly as good as the US Treasury’s now!
So it’s no wonder Big Guy’s government “is reluctant” to divest of its remaining 27% share of GM: they’re doing better than the Fed.
That, and the fact that – even with government accounting standards – the Fed would have to book a huge loss on their “investment” if we let GM buy back their shares. Right before the election? What do they think we are, Amateurs?
Besides, if we ever let GM get their company back, we have it on good authority they would stop making those electric albatrosses that are losing $49,000 per-car. And how would that make Big Guy look? After all, he was the first American President who vowed to put a fossil fuel industry out of business. Dropping the Volt might make him look weak, right before the election. And we can’t have that.
Butt don’t worry, if giving the Volts away doesn’t work, we’ve got another plan up our sleeve to ensure death to Big Oil and Big Coal:
The Volt is like a rolling lesson in the utter folly of command economics. Government, at both state and federal levels, is flagrantly abusing its power to incentivize purchases, in a manner that would have anti-business liberals howling at the Moon if it were employed to push a product that doesn’t meet their ideological approval. And it’s still not enough – GM can’t sell enough Volts to keep the factory running year-round. What’s left? Well, how about a nice “tax penalty” for everyone who refuses to buy a Volt? Thanks to the John Roberts ObamaCare decision, the government can do that.
So let that serve as a further reminder: Never send an Amateur to do a pro’s job. Because things can go to hell pretty fast once you undermine all the rules designed to maintain order.
Butt don’t take my word for it:
Ask Jimmy Carter.
NOTE: Oh dear! How could I have forgotten? Lady M was keynote speaker at the Phoenix Dinner at the Congressional Black Caucus Foundation 42nd Annual Legislative Conference last night.
Butt seriously, how many pictures of MO’s fabulously toned guns in a one-shouldered full length gown with a boob belt do you need to see?
And BTW, tickets still available if you’re anywhere in the vicinity of Princeton this morning! We’ve had some unexpected cancellations so you can still get a reasonably priced ticket ($2,000 -10,000) for which you’ll get to see Lady M from afar and enjoy all the juice, coffee and bagels you want. Just thought you’d like to know.