Obama saved the Auto Industry?

So I'm REALLY tired of this lie. OBAMA HAD EXACTLY ZERO TO DO WITH SAVING THE AUTO INDUSTRY.

The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

So let me get this straight? TARP was a George W. Bush thing? Interesting.

The Congressional Budget Office released a report in January 2009, reviewing the transactions enacted through the TARP. The CBO found that through December 31, 2008, transactions under the TARP totaled $247 billion. According to the CBO's report, the Treasury had purchased $178 billion in shares of preferred stock and warrants from 214 U.S. financial institutions through its Capital Purchase Program (CPP). This included the purchase of $40 billion of preferred stock in AIG, $25 billion of preferred stock in Citigroup, and $15 billion of preferred stock in Bank of America. The Treasury also agreed to lend $18.4 billion to General Motors and Chrysler. The Treasury, the FDIC and the Federal Reserve have also agreed to guarantee a $306 billion portfolio of assets owned by Citigroup.[3]

Ford is asking for access to a line of credit of up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan.

So they also agreed to loan money to General Motors and Chrysler all before Obama took office at the end of January 2009? Ford even got a "line of credit"? So how exactly did Obama's policies save the Auto industry?

Source
Source other than Wiki
Source on Ford

So the remaining question is what did Obama pass and save? Well I leave that to ya'll. Obama passed the "American Recovery and Reinvestment Act of 2009", but it didn't help the Auto Industry.

Read about the ARRA 2009 here

Sure he did he ensured that the executives and ceos all got their xmas bonus... Imagine what kinda of xmas the ceo of gm who makes 300 million a year , if he never was entitled to his bonus ... We should praise Obama for his sacrifice of the tax payers dollar .... ( note sarcasm )

The banks were bailed out with no strings attached

In order for the autos to be bailed out they had to reduce their pensions, wages, and benefits.

What a joke.

Originally posted by RealSpoke
The banks were bailed out with no strings attached

In order for the autos to be bailed out they had to reduce their pensions, wages, and benefits.

What a joke.

But the OP is right...

The auto bailout was already in flight before Obama came into office. Bush signed off on it, and Obama is taking credit for it after blaming Bush for everything.

Different puppets, same puppeteer, but still, the OP is right.

~Namaste

Obama provided the GM and Chrysler bailouts in 2009 that prevented those two companies from collapsing. The Republicans at the time were calling for them to be liquidated.

The Unpopular, Successful Auto Bailout

In late 2008, Chrysler and General Motors told America that they were in danger of folding. George W. Bush agreed to a temporary bailout, but handed the auto companies' long-term future over to his successor, President-Elect Barack Obama. Obama then shepherded a comprehensive bailout of the two companies that allowed them to stay in business but imposed numerous conditions that, it was hoped, would secure their viability and allow the companies to eventually return to profitability.

How you saw this series of events depended a lot on where you stood politically. If you were a progressive, you saw that Obama selected the best of unattractive options. While he didn't particularly want the government running car companies, the alternative was to let them go out of business right at the moment when the economy was reeling from the worst downturn since the Great Depression. At stake were not only the jobs of all of GM and Chrysler's employees, but the jobs of people who worked for hundreds of suppliers, from stereo manufacturers to steel and rubber producers. Estimates of the potential job losses topped one million. So he did what had to be done.

If you're a conservative, on the other hand, the auto bailout was part of Obama's government power grab. Eager to amass power and increase the federal government's control of the economy, he took the opportunity to take over the auto industry, serving his thirst for centralized control.

This was not part of TARP.

When Chrysler dropped all those Dealers, those Dealers switched over and were going to start selling Mahindra trucks and SUVs that just received all their approvals to be sold in America.

Obama stopped India from exporting their Mahindra trucks and SUVs to America. So yes, Obama HAS helped save the auto industry. Detroit is still making JUNK.

Brand new Dodges were shipped out with no nuts on the front wheel spindles to hold them on. They drove them off the assembly line with the brake caliper holding the rotor/wheel assembly on......total carnage of destruction. Brand new engines being assembled with metal shavings in them.....another massive recall.

Obama forced Iraq to buy those junkers....ha ha ha....take that Iraq. The big Lefty push now is removing the dipsticks and tubes from engines and transmissions to force everyone to take their Detroit specials to Stealerships only for service......ending more jobs by shutting down all the lube businesses. Detroit is dead.

reply to post by Blackmarketeer


Wow...

On your source you should click the agreed. It takes you here. Article which says:

The emergency bailout of General Motors and Chrysler announced by President Bush on Friday gives the companies a few months to get their businesses in order, but hands off to President-elect Barack Obama the difficult political task of ruling on their future.
The plan pumps $13.4 billion by mid-January into the companies from the fund that Congress authorized to rescue the financial industry. But the two companies have until March 31 to produce a plan for long-term profitability, including concessions from unions, creditors, suppliers and dealers.
In February, another $4 billion will be available for G.M. if the rest of the $700 billion bailout package has been released.
Even before the March 31 deadline, it might fall to the Obama administration to persuade Congress to release the second $350 billion of the Treasury Department’s huge financial system stabilization program — a request that the Bush administration is reluctant to make.
The auto bailout plan sets “targets” rather than concrete requirements about what those concessions may be, meaning that Mr. Obama and his advisers have enormous latitude to decide how to define long-term viability.

So who bailed out what now?

Originally posted by Blackmarketeer

This was not part of TARP.

Due diligence my friend.... having an agenda that sides with a political party doesn't help....

Published 12/29/2008:

The plan pumps $13.4 billion by mid-January into the companies from the fund that Congress authorized to rescue the financial industry. But the two companies have until March 31 to produce a plan for long-term profitability, including concessions from unions, creditors, suppliers and dealers.

In February, another $4 billion will be available for G.M. if the rest of the $700 billion bailout package has been released.

Source

Bush dished out the bulk of it with a $13.4 billion bailout first, then put Obama in charge of the other $4 billion.

It was most certainly part of TARP.

~Namaste

reply to post by thesungod


You beat me to it...

~Namaste

reply to post by SonOfTheLawOfOne


That I did. My bad yo.

Great minds though, great minds.

Originally posted by RealSpoke
The banks were bailed out with no strings attached

In order for the autos to be bailed out they had to reduce their pensions, wages, and benefits.

What a joke.

Alternately they could have done all of those things under bankruptcy and emerging without Obama as the new CEO.

Was this just Obama fulfilling a dream of his surrogate father Frank Marshall Davis?

I didn't say Bush didn't money to the auto companies, but that money didn't stop those two companies from going into bankruptcy. The money Bush used was from TARP.

When Obama was in office he made both companies (GM and Chrysler) restructure, and then bailed them out, this was not part of TARP. The Republicans were calling for them to be let go - to be liquidated.

That is why Republicans have for the past 3 years been accusing Obama of orchestrating a "government takeover" of the auto industry. It's why others say Obama "saved" the auto industry. The money Bush allocated was too little and didn't prevent them from insolvency.

Seems now, with the recognition that saving the auto industry was a good idea, some posters are trying to say it was a republican plan all along. Doesn't quite jibe with the rhetoric coming from the right though.

Originally posted by Blackmarketeer
I didn't say Bush didn't money to the auto companies, but that money didn't stop those two companies from going into bankruptcy. The money Bush used was from TARP.

When Obama was in office he made both companies (GM and Chrysler) restructure, and then bailed them out, this was not part of TARP. The Republicans were calling for them to be let go - to be liquidated.

That is why Republicans have for the past 3 years been accusing Obama of orchestrating a "government takeover" of the auto industry. It's why others say Obama "saved" the auto industry. The money Bush allocated was too little and didn't prevent them from insolvency.

Seems now, with the recognition that saving the auto industry was a good idea, some posters are trying to say it was a republican plan all along. Doesn't quite jibe with the rhetoric coming from the right though.

Actually the money and power Obama used to bail them out was from TARP, even that back up money. Find me ANYWHERE that says that ARRA money was used to help any Auto company, please. If you can, I'll let it go and admit fault with a smile. But unfortunately you can't, cause fact is fact. Get some sources or move on.

Oh and let's get a little something else straight. The reason my line of reasoning doesn't match either the left or right is because I'm neither. I'm a jaded army vet with a huge chip on my shoulder. I hate all politicians equally. This ranges from Ron Paul to the Bushs to the Obamas, Mitt included. I hate them all, they are all liars, cheats and thieves. I think ALL the bail outs were bad. TARP and ARRA, the QEs, etc. They perpetuate failure, not prosperity.

reply to post by 11235813213455


Maybe, but I don't think Obama's anti-colonialist views affected the bail outs started by Bush though. Nice "Obama 2016" reference though.

reply to post by Blackmarketeer


Yanno, I'll even help you out.

ARRA 2009 came with a nice little website. You may remember it. Recovery.gov

This site supposedly tracks ALL of the spending done under the ARRA.

Find where in there funds were allocated for auto bail outs for me?

All I'm finding is individual projects like this-

GM

construction and validation of the first U.S. manufacturing capability for electric motor components, which was planned for outside the U.S. based on standalone project financials. Bringing the motor manufacturing to the U.S. and co-locating with the GRE manufacturing will establish a Center of Electric Drive Manufacturing in the Baltimore area. GM will have the capacity to produce 40,000 Global Rear-Wheel Drive Electric (GRE) drive units, creating core manufacturing capabilities.

Not a bail out for GM, but a new electric motor factory? Not a bail out, a stimulus.


Chrysler

Chrysler objectives align with DOE objectives. Chrysler aims to demonstrate a 25% improvement in combined City FTP and Highway fuel economy for the award-winning Chrysler minivan. This fuel economy improvement is intended to be demonstrated while maintaining comparable vehicle performance to the state-of-the-art gasoline port fuel-injected 4.0L V6 baseline reference engine. Chrysler can accelerate the development of engine and powertrain systems for light-duty vehicles capable of attaining breakthrough thermal efficiencies while meeting future emissions standards.

Again not a bail out, but stimulus funds for attempting to reduce emissions for a light-duty minivan.

I can't find anywhere where ARRA funds were used to bail out the auto industry at all, just expand the band-aided ones in an attempt to limp it along.

I mean even Ford got some stimulus and they haven't even paid back all of that "line of credit" they borrowed from, something like 5 or 6 billion dollars if I remember correctly.