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Obama touts success of auto industry bailout

By Michael D. Shear
President Obama touted the success of his bailouts of the auto industry in his weekly radio and Internet address on Saturday, saying the public's investment in the once-shaky companies is returning positive dividends.

Fresh off the news that General Motors had paid back its taxpayer-backed loans five years ahead of schedule, Obama said the decision to help the companies as proven to be less costly than the alternative.

"It wasn't an easy call," he recalled. "But we decided that while providing additional assistance was a risk, the far greater risk to families and communities across our country was to do nothing.  ... I knew this wasn't a popular decision. But it was the right one."

The George W. Bush administration offered loans to the failing auto industry before Obama became president. But it was the Obama administration that was accused of trying to nationalize the car business.

Obama was repeatedly put on the defensive, saying in news conferences and in speeches that his administration had no interest in running car companies.

The political gamble for the West Wing was that those accusations would be less damaging than the long-term pain of allowing the auto industry in the U.S. to collapse, bringing down as many as one million jobs in the process.

In the address, Obama said General Motors and Chrysler both appear to be on more solid financial footing, having cut jobs but survived.

Obama sought to connect the troubles in the auto industry to the broader concerns about the collapse of the financial industry, saying the Democrats' financial regulatory overhaul attempts to put in place new regulations for firms that helped to spark the downturn that drove the car companies to the brink of insolvency.

"In the absence of common-sense rules, Wall Street firms took enormous, irresponsible risks that imperiled our financial system - and hurt just about every sector of our economy," Obama said. "Some people simply forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement."

By Michael D. Shear  |  April 24, 2010; 6:00 AM ET
Categories:  44 The Obama Presidency  
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Comments

Continuously bashing TOYOTA by manipulating political appointees to other Federal Agencies weaken them against GM, who despite vastly inferior cars, wasn't subject to repeated govt. attacks; will only come back to haunt us.

Shell game...lift up stimulus shell and take money to put under bailout loan shell?

Posted by: Common_Cents1 | April 26, 2010 10:49 AM | Report abuse

WaPo journalists have gone from "watchdog" to "lapdog". Why didn't you tell the complete story? Our taxes paid that loan. Is this what was "suggested" when you got the call on your direct line to the WH?

Posted by: bethg1841 | April 25, 2010 2:13 PM | Report abuse

Meanwhile, at the grassroots, democracy and civil liberties are being stolen from American citizens...

OBAMA; TAKE DOWN FUSION CENTER GESTAPO, FIRE SECRET SERVICE BOSS

• Extrajudicial shadow government run out of America's 70-some multi-agency "fusion centers" decimates democracy, constitutional rights, personal liberty.

Rogues and scoundrels appear to be running a multi-agency Homeland Security- administered fusion center cabal, in partnership with corporate and municipal officials across America.

These agencies, commands and corporations have constructed an extrajudicial, unconstitutional and morally bankrupt shadow government, run out of the nation's 70-some fusion centers, that pulls the power strings in this nation in a breathtakingly arrogant grassroots bypass of the civilian chain of command, the judicial system, and Congress.

FOR THE REST OF THE STORY:

http://nowpublic.com/world/obama-take-down-fusion-center-gestapo-fire-secret-service-boss OR
http://NowPublic.com/scrivener

Posted by: scrivener50 | April 25, 2010 10:49 AM | Report abuse

I would have thought that Mr. Shear would have mentioned the fact that the money was paid back with more TARP money but heck there is not always truth in reporting is there?

I am led to think the "main stream media" wants it to look real rosy for Mr. Obama as he stated.

Mr. Shear if you were a real reporter you would have told the "rest of the story"

Posted by: Yooper53 | April 24, 2010 10:08 PM | Report abuse

well, it is obvious that bam1969 is a leftist loon.

Posted by: madmike272 | April 24, 2010 10:02 PM | Report abuse

If you own a GM vehicle and they have your email address, you’ve gotten a nice email in the past few days that they paid back their bailout loan from the federal government.

A lie. Well, technically true, but a lie.

Turns out they took money out of one pocket and put it into the other. More precisely, GM took TARP money to pay off the auto bailout money and now must pay off the TARP money.

Pfffft.

GM, since being taken over by Obama, is now acting like the Obama administration.

Posted by: corebanks1940 | April 24, 2010 9:59 PM | Report abuse

taxpayers loaned GM money.

GM paid the loan back early....with other money we had loaned them.

Gm now owes us more money....

Michael D. Shear
President Obama touted the success of his bailouts of the auto industry in his weekly radio and Internet address on Saturday, saying the public's investment in the once-shaky companies is returning positive dividends.

Fresh off the news that General Motors had paid back its taxpayer-backed loans five years ahead of schedule,

Posted by: corebanks1940 | April 24, 2010 9:47 PM | Report abuse

Obama's affirmative action education is showing its ugly head. Now I know why he doesn't release his grades or papers.

Posted by: cschotta1 | April 24, 2010 9:41 PM | Report abuse

How much government (tax payer's) loan money was used by GM to 'pay back' the original loan?

Did GM do a 'loan consolidation' at taxpayer's expense?

How can you lose BILLIONS, then claim you have paid back billions in loans -- WITH INTEREST??

Anyone else smell one of Emanuel's dead fish??

Posted by: wheeljc | April 24, 2010 8:32 PM | Report abuse


I heard GM is in "hot water" with the Federal Trade Commission over its "truth in advertising" law because GM is misleading the consumers/taxpayers with the TV ad.

Also, the Inspector General for Bailouts says that GM paid the money back from a separate bailout escrow fund which is a different account than the original bailout funds.

GM still owes billions to the government.

I think Obama put him up to this because of his Financial Reform Bill. To make it look good for Obama.

First the SEC investigation, then the Financial Reform Bill, now the GM faux payback.

The GM payback was all smoke and mirrors, folks.

Posted by: janet8 | April 24, 2010 7:57 PM | Report abuse

The Government owned fleet is being purchased by the Government using your wallet....how is that good for the people????

Posted by: dottydo | April 24, 2010 7:07 PM | Report abuse


Stock Market (and my portfolio) is up
Home sales are up
Job losses are down
Financial sector has recovered
Auto sector is recovering
Health care reform has passed
Financial reform will pass
Bi-partisan, industry supported energy legislation will pass.

Sorry 'pubbies, but I just don't buy the conspiracy, gloom and doom. Given where we were at in Jan 2009 things have gotten a LOT better. So far this President has done about as well as I could have hoped. The only thing his detractors have is "slippery-slope" arguments or chicken-little predictions.

Funny thing is this - the last time I liked a President this much, it was....wait for it... Reagan. :)

Posted by: mikem1 | April 24, 2010 9:27 AM | Report abuse
-------
I love it and the God continues to bless Obama despite all the repukin. It will only get better and by 2012 the T-baggers will be T-baggin him!

Posted by: bam1969 | April 24, 2010 6:46 PM | Report abuse

saying the public's investment in the once-shaky companies is returning positive dividends.


TO WHO !!!!!!!!!!!!!!! BAMBI WHO !!!!!!!!!!!!!!!!!!!!!!! YOUR GOLDMAN SACHS BUDDIES !!!!!

SHOW YOUR BIRTH CERTIFICATE !!!!!!!!!!!!!!!!!!

Posted by: yourmomscalling | April 24, 2010 6:21 PM | Report abuse

Obama is right.

Posted by: BOBSTERII | April 24, 2010 5:31 PM | Report abuse

Pure horse sheit, right from where it usually comes.
The horse's as$.

Posted by: LarryG62 | April 24, 2010 5:26 PM | Report abuse

A moonbat writes: "Thank God we have a President with a brain."

Any idea when he might start using it? If it's okay by you, I think I'll wait and give thanks then.

Posted by: thebump | April 24, 2010 4:11 PM | Report abuse

Another interesting note on the real GM situation. Kudos to Forbes for telling the whole story.

""Sean McAlinden, chief economist at the Ann Arbor-based Center for Automotive Research, points out that the company has applied to the Department of Energy for $10 billion in low (5%) interest loan to retool its plants to meet the government's tougher new CAFÉ (Corporate Average Fuel Economy) standards. However, giving GM more taxpayer money on top of the existing bailout would have been a political disaster for the Obama administration and a PR debacle for the company. ""

Posted by: Cryos | April 24, 2010 3:56 PM | Report abuse

This is a blog so I suppose the author can mislead and lie all he wants so my earlier statement is overblown.

Michael I would recommend you tell your paper to run with the true GM story though. It is all over the blogosphere and the MSM purposely omitting information is only beneficial if it is unknown.

The WaPo and other MSM outlets credibility will be hurting even more if they don't reveal what a lot of people already know.

Is it worth pimping yourself out to try to bully in financial regulations?

Posted by: Cryos | April 24, 2010 3:43 PM | Report abuse

More lies from the government. GM recieved several installments of money. Some of it was directly deposited in their accounts and some was sitting in an escrow account. It was this money that was used to payback the taxpayer with taxpayer money.

Posted by: Wisconsin1 | April 24, 2010 2:14 PM | Report abuse

Thank God we have a President with a brain.

Posted by: onifadee | April 24, 2010 2:08 PM | Report abuse

""The George W. Bush administration offered loans to the failing auto industry before Obama became president. But it was the Obama administration that was accused of trying to nationalize the car business.""
====================
Another piece of your horrible journalism. At least I know for sure Michael Shear is in the tank and never take your articles on their merit.

Obama was accused of trying to nationalize the car business because he made a shady bankruptcy deal.

Screw the secured creditors and allow the UAW to invest a 5.5 billion health care investment into stock. Now with national health care that stock will transfer into $ for democrats' campaigns as the public pays their health care.

The government also fired the CEO and half of the board of directors when they disagreed with the corrupt plan.

Do yourself a favor and get into a different field. You don't have the objectivity for journalism.

Posted by: Cryos | April 24, 2010 1:57 PM | Report abuse

Horrible journalism. You are a disgrace to your profession.

Print this garbage not admitting the fact that GM PAID ONE BAILOUT FUND WITH ANOTHER.

Hopefully some real news agencies actually publicize this and show Obama and lapdog journalists like yourself for the deceptive people you are.

Posted by: Cryos | April 24, 2010 1:48 PM | Report abuse

Why do American citizens put up with being lied to by our so called representatives and major media outlets? I know damn well that GM hasn't been turned around in this economy and they are all playing games with us the citizens. Please tell the public the truth! There are plenty of citizens who degrade Fox News but that is the only news web site where you can find the truth on this so called GM debt repayment.

Posted by: AForgottenMan | April 24, 2010 12:47 PM | Report abuse

Richard18, if you seek to impress with erudition, you might start by learning the difference between cajones and cojones.

The fact remains that Oboobma is lying. If taxpayers are eventually made whole, that's much better than the alternative, but it would hardly mean that this boondoggle gift to the unions was an appropriate or efficient use of money that belongs to taxpayers.

Posted by: thebump | April 24, 2010 12:31 PM | Report abuse

Here is a link to explain the BS that is being passed off as a successful pay back of government loans. This is why nearly 80% of the people distrust our government:

http://hotair.com/archives/2010/04/23/how-did-gm-pay-off-its-bailout-loans/

Posted by: DL13 | April 24, 2010 12:25 PM | Report abuse

Big Brother just increased the chocolate ration from 30 grams to 25 grams.

Posted by: jeff20 | April 24, 2010 12:25 PM | Report abuse

GM paid back about 10% of the money that the government put into the Company, most of it in the form of equity. GM has only lost money since the bailout, not a single quarter of profits. If it has paid back the money, it is only because the feds gave the Company more than it now finds it needs. Better than nothing, but 90% still to go! Let's not celebrate yet.

Posted by: tagas | April 24, 2010 12:10 PM | Report abuse

Excuse me but GM "Paid Back" their bailout with TARP money! Don't you fools understand that they just paid back their bailout with our credit card?!

Posted by: sandynh | April 24, 2010 11:50 AM | Report abuse

Tell it to all the folks who lost their rightful claims so Obama could give their money to the labor unions and prop up GM & Chrysler for another few years.

Nothing like declaring victory to make a nice sound bite.

How's that hopey, changey thing working for you folks?

Posted by: JCM-51 | April 24, 2010 11:36 AM | Report abuse

Oboobma is lying through his teeth. Taxpayers are still on the hook for the vast majority of the $50 billion we forked over, because we still own 60% of a lemon. And the loan that was repaid -- was repaid with our own money!

Goddamn liar.
---------
GM will do an IPO sometime within the next year. The warrants owned by the US will be sold after the IPO, meaning the government will get their money back and probably a handsome profit. You will eat your words, but I don't you'll have the cajones to admit you were wrong.

Posted by: Richard18 | April 24, 2010 11:29 AM | Report abuse

While you folks were crying in your beer over GM paying back 5 years early you might have missed this one ....

Sales of new homes rocketed up 27 percent in March

By Dina ElBoghdady
Washington Post Staff Writer
Saturday, April 24, 2010

Sales of newly built homes shot up 27 percent in March -- the largest monthly gain in nearly five decades -- as mild weather and a lucrative tax credit pumped up demand for homes in all four regions of the country, according to federal data released Friday.

The Commerce Department reported that new-home sales jumped to a seasonally adjusted annual rate of 411,000, reversing February's record low and far exceeding the expectations of many experts who track the industry.

"We needed a grand slam . . . and we got it," Patrick Newport, an economist at IHS Global Insight, wrote in a note to clients. ....

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042305180.html?hpid=sec-business

BTW. He isn't talking about a Denny's Grand Slam Breakfast special.

Is the Worst over for Real Estate?
Ron DeLegge
April 12, 2010

SAN DIEGO (ETFguide.com) – Where’s the long-awaited crisis in commercial real estate and when will it arrive?

During the first quarter, U.S. based real estate investment trusts (REITs) roared ahead by 9.57% easily outperforming the S&P 500 (NYSEArca: SPY) which posted a 5.39% gain. ....

--------------

Not shabby.

Posted by: James10 | April 24, 2010 11:24 AM | Report abuse

Conservatives are so bumbed out that GM paid back the loan 5 years ahead of schedule.

I'll bet you folks shorted the market over all this "socialism" stuff. Didn't Fox News / Fox Business tell you folks the market was going to crash if the health reform bill passed? You must have made big money on that advice.

You all enjoy the recovery. Bush gave us the worst decade for equities investment in history. That's something to be proud of.

http://www.hud.gov/offices/cpd/affordablehousing/programs/home/addi/

http://www.hud.gov/news/release.cfm?content=pr04-006.cfm

Posted by: James10 | April 24, 2010 11:17 AM | Report abuse

Odumbo lies so much he makes Clinton and Baghdad Bob look honest.
What a disgusting slug he is.

Posted by: LarryG62 | April 24, 2010 10:59 AM | Report abuse

Well here is the thing about smoke and mirrors and obama. They paid back the loan using TARP funds. This places the presidents credibility at about zero. As I always tell my kids if his lips are moving he is lying.

Posted by: gava2 | April 24, 2010 10:35 AM | Report abuse

Oboobma is lying through his teeth. Taxpayers are still on the hook for the vast majority of the $50 billion we forked over, because we still own 60% of a lemon. And the loan that was repaid -- was repaid with our own money!

Goddamn liar.

Posted by: thebump | April 24, 2010 10:08 AM | Report abuse

The racist hatred against Obama just show how backwards and ignorant many Americans appear to be. Republicans hate unions yet the cost of a new auto is mainly due to management and not labor. Labor gets 5% of a new car sale while management gets 33%. If our auto industry wants to avoid another bailout, they have to get rid of all the middle managers.

Posted by: blarsen1 | April 24, 2010 10:06 AM | Report abuse

The George W. Bush administration offered loans to the failing auto industry before Obama became president. But it was the Obama administration that was accused of trying to nationalize the car business.

"I knew this wasn't a popular decision. But it was the right one."

So if it were to have been a mistake then the blame would be on Bush? But, if it's a success the credit is Obama's?

Liberals ha! Cry about the "Last 8 years" but when credit is due for Bush, they take it as their own. Hipocrites!

Posted by: JBfromFL | April 24, 2010 9:35 AM | Report abuse

someone wrote:
"Oboobma: Worst. President. EVER!"

HA, ha, har, har, har, cough, har, cough,

cheney/bush has that title nailed down!
bush added $5+ trillion dollar to the debt, used lies to invade Iraq, responsible for 6500+ military deaths, 30,000 maimed and wounded, $8+ Trillion in projected deficits, tanked the economy, destroyed the middle class, 8+ MILLION lost jobs, could not spell "VETO!", borrowed and spent, borrowed and spent, borrowed and spent, borrowed and spent, destroyed the middle class
See ya in November republicans!

Posted by: The-Historian | April 24, 2010 9:32 AM | Report abuse

Stock Market (and my portfolio) is up
Home sales are up
Job losses are down
Financial sector has recovered
Auto sector is recovering
Health care reform has passed
Financial reform will pass
Bi-partisan, industry supported energy legislation will pass.

Sorry 'pubbies, but I just don't buy the conspiracy, gloom and doom. Given where we were at in Jan 2009 things have gotten a LOT better. So far this President has done about as well as I could have hoped. The only thing his detractors have is "slippery-slope" arguments or chicken-little predictions.

Funny thing is this - the last time I liked a President this much, it was....wait for it... Reagan. :)

Posted by: mikem1 | April 24, 2010 9:27 AM | Report abuse

Interesting to note that WaPo forgot to mention GM repaid their loan with other bailout money. This reminds me of three card monte!!!!

If only they were a REAL newspaper their circulation might increase instead of decline.

Posted by: Jimbo77 | April 24, 2010 9:26 AM | Report abuse

Was this a bail-out or a shift in power from private sector control to UAW control paid for by a government grant?????
You cannot trust these guys!!!
I'll wait for the elections in 2010 and follow-on investigations!!

Posted by: thornegp2626 | April 24, 2010 9:19 AM | Report abuse

Osamma bin Obama DIRECTED the use of taxpayer money to repay the loan to the UMW. This is fraud. GM is being run by crooks from the White House.
If we will wait a while, we will discover that the money given to pay back the money will have been a government grant - no repayment necessary.

Posted by: Tony27 | April 24, 2010 8:32 AM | Report abuse

Osamma bin Obama DIRECTED the use of taxpayer money to repay the loan to GM (really the UMW.)
This is fraud. GM is being run by crooks from the White House.
If we will wait a while, we will discover that the money given to pay back the money will have been a government grant - no repayment necessary.

Posted by: Tony27 | April 24, 2010 8:30 AM | Report abuse

Oboobma??? Are you serious?

Tea Party Birthers are obviously not the same without their morning caffeine.

I guess the return of the stock market is a socialist plot as well. Where are the conservative viewpoints that at least try to hide their vitriole while they make their points.

I am not an Obama-ite but the childish criticisms and negativity promoted by the right are a testament of their own demise. Just ask Steele and Crist and the lady who cares more about reality TV than governing Alaska.

Posted by: brojsmith | April 24, 2010 8:22 AM | Report abuse

Republicans lack the character to praise Pres. Obama for successful decisions.

Posted by: angie12106 | April 24, 2010 8:06 AM | Report abuse

The auto bailout is only successful in the sense Barry has trained GM to lie and obfuscate as well as he does. Why no mention of how the payback was financed? Because it doesn't fit Barry's fairy tale? The TARP inspector general is raising red flags because GM used other TARP funds to repay their loan and the FTC is on GM's case about their deceptive advertising regarding the payback. It is apparent GM has become just another deceitful government agency, recruited to foster Barry's socialist agenda to the detriment of the Republic.

Posted by: jpost1 | April 24, 2010 7:56 AM | Report abuse

Bush deserves his share of blame, but it was the idiot Oboobma who turned this boondoggle into a monstrous taxpayer-funded bonanza for his corrupt and wicked UAW overlords. In doing so the messiah earned himself a special place of shame in the annals of taxpayer ripoffs. Congratulations!

Oboobma: Worst. President. EVER!

Posted by: thebump | April 24, 2010 7:50 AM | Report abuse

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