Yesterday, in two separate speeches, the President of the United States of America announced a bold and frightening plan to turn the Obama directed, flaccid economy around. In a second term, the Democrat nominee pledged to further transform this nation by taking extraordinary measures. Referring to his unprecedented action of bailing out, replacing management, and taking an equity position at General Motors and Chrysler he said, “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.”
The former inner city community organizer cited the manufacturing flight to China as a justification for this extreme policy change. In other words, in his opinion it is preferable to nationalize the manufacturing industry to keep them in the U.S.instead of reforming our current inhospitable business environment of over-taxation and over-regulation. This is right out of the Chavez/Castro playbook and it is alarming.
This shouldn’t be surprising coming from the same President who told the successful entrepreneurs that it was the government, not those individuals, that is responsible for that success and achievement. What is surprising is that this announcement comes right after the Office of Special Inspector General charged with safeguarding American taxpayers’ funds, while going after those that are defrauding the U.S. government, announced that Obama’s auto industry bailout resulted in taxpayer losses of $4.3 billion from General Motors Company and $1.3 billion from Chrysler Group LLC. These losses are directly connected to the governments equity position and the poor price performance of the stock. Apparently Wall Street is not as bullish on GM as Obama.