Obama Screws Tax Payer $11 Billion in Failed GM Bailout

Obama bailed out GM for $50 billion. In return, Obama screwed the American people $11 billion in a failed bailout of an auto manufacturer. Obama accepts the loss in order to cut ties from GM. Its purpose is to run for the 2012 presidential race without an association of a failed bailout. Well, the American people aren't quick to forget.

(AFP) NEW YORK — A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday.

After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59.

The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper.

The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share.

At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.

Bailout to Banks Produce Big Profits But at a Cost

In the article, financial firms and banks made a record profit for 2010. Also, new regulations will make it difficult for the financial system to continue bouncing back from the worst financial crisis since the Great Depression. Not mentioned here is the repercussion in bailing out the financial system. Even though financial firms and banks made a handsome profit, they still owe the government billions in dollars from the bailout. Unless you are a shareholder to one of these financial firms or banks, majority of Americans are not benefiting for it. Actually, the bailout is causing the national debt to balloon and devaluation of the dollar. The combination is bringing the country close to bankruptcy. The outcome will cause countries to stop financing our debt. In addition, our government will continue to print money from thin-air causing inflation to sky-rocket. Currently, we are seeing the ugly reality unfolding in front of us. Therefore, on the surface, the government saved the banking system, but at a price to the American people.

(Bloomberg) Wall Street’s biggest banks, rebounding after a government bailout, are set to complete their best two years in investment banking and trading, buoyed by 2010 results likely to be the second-highest ever.

The surge has come after the five banks took a combined $135 billion from the Treasury Department’s Troubled Asset Relief Program and borrowed billions more from the Federal Reserve’s emergency-lending facilities in late 2008 and early 2009 following the collapse of Lehman Brothers Holdings Inc. Since then, the firms have benefited from low interest rates and the Fed’s purchases of fixed-income securities.

“This is a once-in-a-lifetime opportunity for most of these banks, and I think they’ve recognized it as that,” said Charles Geisst, a finance professor at Manhattan College in Riverdale, New York, who has written about Wall Street’s history. “The profits they’re making now will allow them to replenish their capital and take care of the other things they need to do.”