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Early Reviews of Obama's GM 'Gamble' Don't Look Good

By Ben Pershing
Scan the coverage today of GM's bankruptcy and you'll see a wide range of reaction, from predictions of certain doom to sheer uncertainty about the company's eventual fate. The word "gambling" comes up a lot in reference to President Obama's plan, never a good thing when you're talking about amounts of money ending in 10 zeroes. What you don't see this morning are predictions of success.

It's difficult to find more than a handful of analysts or commentators in the mainstream media (outside of Detroit) who believe that this blueprint is likely to work. Not that it might work, but likely to work. And that is worrying news for the White House, which is working desperately to forestall the company's complete collapse -- and the subsequent economic shock wave -- but may instead be fostering the public perception that it is throwing good money after bad without a clear endgame in mind.

A Rasmussen poll released Sunday pegged support for the GM plan at just 21 percent, with 67 percent opposed. A clear majority of respondents would rather let the company go out of business than provide any more government funding. All of which helps explain why the Washington Times reports Republicans think Obama's actions on this front may help them in 2010. As the Los Angeles Times puts it, "there was increased criticism Monday that President Obama had committed far too many taxpayer dollars, most of which may never get repaid, to a company lacking an answer to its most profound problem: how to get more car buyers to choose its cars and trucks."

Continue reading at Political Browser »

By Ben Pershing  |  June 2, 2009; 8:20 AM ET
Categories:  The Rundown  
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Comments

UBOOBS - United for Barack Obama On-line Banking System. Deposit your hard-earned money, watch him spread the wealth!

The economy? If Obama is elected, I won't have to worry about paying for any of the things I’m entitled to, like that great pair of designer suede boots I was ogling yesterday. I won't even have to walk in them. I'll have a chauffer take me around, just like Barack does.

How will this work? Come Tuesday, everyone will deposit their money into the Central Bank of Obama, via patented "United for Barack Obama On-line Banking System", or "UBOOBS". We like acronyms in the government!

Now all I have to do is take my fair share. I can't believe no one thought of this before. Although, I do recall something similar over in Russia. But they must not have had as good a system, because people were always on long lines, waiting for rations, and drinking vodka to kill time until they got their handout. Handout? Did I say handout? No, UBOOBS is not about handouts. It's all about spreading the wealth.

Now watch your mail for your UBOOBS ID number and PIN. Some places don't take American Express, but every place will take your UBOOBS card. It's universal! Except in China. That's just until we convince them we don't really owe them 3 trillion dollars that we can't pay back.

So relax, and know your country is finally working for you!

Easy Street, man, this is Easy Street!!!

Posted by: CMcK-Troiano | June 3, 2009 9:06 AM | Report abuse

I think their rank should be lowered to Lt .General .Motors. If after two years of success we can consider restoring them to full rank

Before they close all their plants how about tanks and armored cars for our troops.I am sure we need more of other things. Let us not be hasty, Since we are part owners we should use part of our stimulus money for our needs as well.

Posted by: lengyson1 | June 2, 2009 11:24 PM | Report abuse

Reality Check!:

In handling the process the way the Socialist did, Obasama KILLED Government Motors!

Chrysler and the Airlines all went into bankruptcy before, and emerged better for it!

What Biden and Barry pulled was ripping Private investors off and rewarding the UAW!

While using OUR Money to do it!

Now, the only question is:

How long are Americans going to let UAW rip us off?

Please People;

Do NOT buy a Government Motors Vehicle!

Thanks to the CRIMINAL Actions of the Socialist Stooges in that White House;

GM MUST DIE!

QUICKLY!

Posted by: SAINT---The | June 2, 2009 6:22 PM | Report abuse

So the Hummer is going to be owned now by the Chinese. I was very much hoping the brand would get a Viking burial. How to reconcile becoming "greener" when these Brinks cars are rolling aggressively down the highway, cell phones blaring? Since it is the Chinese, leave us hope that the Congress will nix the deal (sorry, Shreveport; go clean up after those hurricanes now, ya hear?). Just as it did when the Chinese tried to buy UnoCal. Or are we inconsistent on the Hill? How's that go again? "The fool on the hill . . . see the world spinning 'round . . ." Mediocrity, here we come! Told ya we should be learning Mandarin!!

Posted by: MouthSore | June 2, 2009 4:16 PM | Report abuse

Beginning of the end or a new beginning for GM?

http://www.youpolls.com/details.asp?pid=5419


.

Posted by: usadblake | June 2, 2009 12:26 PM | Report abuse

This is not really a gamble. Do you call an emergency surgery a dying patient a "gamble?"

Posted by: spadeAce | June 2, 2009 12:01 PM | Report abuse

If the union members do not like the new structure, and I'm sure they don't, the demands and protests for better pay and benefits will start quickly. These are people that in the past have been loyal to themselves and to the union and not to GM.
==============================
My understanding is their salary and benefits are largely untouched.

People try saying the failure is due to "making too many SUVs" but the fact is GM loses money on economy cars, and regardless of reality have the ingrained notion "honda and toyota are better" in that market.

Without changes to the salary and benefits I don't see GM as being any more feasible. They are downsizing so don't need to make as many cars to break even but it doesn't change their cost per unit.

Posted by: Cryos | June 2, 2009 11:32 AM | Report abuse

Too many folks brainwashed by Fox News.

This had to be done to save GM, and the president's plan looks very comprehensive and cautious. Cuts were made and accountability ensured, but millions of jobs are now safe because of Obama's "gamble."

http://www.political-buzz.com/

Posted by: parkerfl1 | June 2, 2009 10:26 AM | Report abuse

We all know that NOTHING this administration can do will satisfy the naysayers in this nation. Oh, if that had only been so during the last 8 years of the Cheney administration, things would be so much better now.

Posted by: GrannyAnnie | June 2, 2009 10:22 AM | Report abuse

If you look at the the schema thing, Boss Obama's choice to deal with GM/Chrysler crisis can not be more clear. There really two options: Do you want to be remembered as a president that let GM/Chrysler die within 100 days on the job or the one that protected them under his wings until they are healthy again?

People are scared about the word "nationalization" like "communism" in the 60's. The difference is though, "nationalization" is not the objective of the policy. Rather, it is a consequence of massive rescue effort. It provides a protective shield in an adverse economic condition and allows the business to transform into a new platform. Eventually, the government will remove the shield and sell the ownership to investors.
Boss Obama has been quite even handed with Unions, management, and bond holders. This is an extremely difficult balance but I think he has been doing very well.

Posted by: spadeAce | June 2, 2009 10:18 AM | Report abuse

Dasvidanya comrade Obama. Nationalizing the auto industry does not go down well with the American people.

Posted by: BubbaRight | June 2, 2009 9:45 AM | Report abuse

If the union members do not like the new structure, and I'm sure they don't, the demands and protests for better pay and benefits will start quickly. These are people that in the past have been loyal to themselves and to the union and not to GM. Years ago I worked as a supervisor on a Ford assembly line in California. Worker-management relations were adversarial and confrontational. Perhaps things have changed since, but I witnessed the power of the union and the results when they wanted to use their considerable power to slow or stop production. By the way, the plant where I worked eventually closed in part because of poor workmanship on the part of the workers.

Posted by: saelij | June 2, 2009 9:04 AM | Report abuse

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