As of now, I am in control here, in the White House

Obama’s $15.56 Billion Deception

I don’t know. Maybe that’s small by Obama standards.

President Obama traveled to Wayne, Michigan Wednesday to take a “victory lap” in his bailout of the auto industry.

Now, whether Obama’s approach to the automakers’ bankruptcy bailout – designed as a gift to the United Autoworkers union – did any better for Detroit than the more neutral bankruptcy advocated by Republicans like Mitt Romney is anyone’s guess.

We do know it failed to force changes in the unions that could hurt automakers down the line, and that it had the moral hazard of telling other big companies in trouble that the government will step in and help them with their union problems.

But that’s not what I want to complain about. What I want to complain about is this statement Obama made Wednesday, and has made before:

The auto companies have now repaid taxpayers every dime and more of what my administration invested in you.

It really, at heart, is a lie.

Here’s why.

First of all, you have to read the fine print. The clear impression Obama is seeking to convey is that the auto bailout was cost-free. But note he said “what my administration invested.” He is purposely, and deceptively, not including the money Bush handed the automakers. If you do that, there’s billions in losses.

So Obama seems clearly misleading, albeit maybe technically correct. But he’s not really even technically right.

Obama auto

The money is obviously fungible. It’s all part of the same process. If Bush hadn’t handed the auto companies the cash he did, Obama would not have been able to achieve his “rescue.” Or, if the companies somehow survived without the Bush money until Obama was inaugurated, then Obama would have had to lend lend them the “Bush money” that was lost.

You may have heard that the real figure, including the Bush and Obama administrations, is a $9.26 billion loss. But that’s not quite right either.

As the Detroit News points out, that figure counts interest and dividends paid by automakers and their financial arms as offsetting the principal owed to the government. But the government shouldn’t get to count the interest, because it theoretically could have made that return on investment elsewhere. I mean, as the News points out, do you get to count your mortgage interest against your principal payments? Nut uh, they make you pay your interest separately, and much of it up front.

In fact, the government agrees. “Under government accounting rules, the U.S. Treasury actually lost $16.56 billion on paper on the auto bailout,” the News reports.

And that, folks, is the sum total of this latest Obama deception.

Share on FacebookTweet about this on TwitterShare on RedditShare on LinkedInEmail this to someone

17 Responses to Obama’s $15.56 Billion Deception

    • Nicely put.

      Although, to put a really fine point on it, Obama’s administration didn’t invest a penny to save Detroit — that money came from tax payers and bond holders. OTOH, his administration has invested quite a bit in the travel / tourism / photo opp industry.

      Anyone else notice how Obama is decrying the attacks in Paris because they are against journalism and a free press. Seems he’s been attacking those two areas for several years now.

      Speaking of which, here’s some trivia. Back in 1970, Charlie Hebdo ran a satire after a night club fire and the death of President DeGaulle — and were banned for the effort. The tools of censorship have changed over the years.

  1. I can’t figure him out yet. What I mean is, Does he understand the intelligent details that Keith just explained, or is he given a speech to read, but doesn’t understand 90% of what he is saying.
    on the other hand as other readers made a point about. Lie/Liar.
    He may just enjoy telling each and every lie.

    • What is almost comical to me is that Ford did not take a bailout and that plant is either already closed or due to be soon.
      Obama makes no sense evah!!

  2. Where is the media when this professional/pathological liar
    uses public venues to re-write history and bamboozle his way through his fake presidency?

    For the record, the Bush bailout portion of TARP, banks and insurance companies, was completely repaid during the Obama years, including billions in interest. $182B was spent to stabilize AIG and every penny was recovered, plus $22B paid in interest and a profit of $8B when the Treasury sold it’s remaining shares. The banks and insurance companies repaid all of their debt, and then some.

    The parents of Obama’s captive audiences of mushy-brained teenagers ought to keep their kids away from Obama and warn them about his lack of character and propensity for lying. His legacy should begin and end with the caption Liar-in-Chief!

  3. Technically speaking, President Obama is wrong. The Bush loan came first and the Obama Loan was next. So, the Bush Loan was in a Senior a Position to the Obama loan.

    Similar to a property owner having a two mortgages then decides to sell the property. At closing, the first mortgages is paid off first due to its’ Senior Position. After the first is paid then the proceeds go to extinguish the 2nd mortgage. If there isn’t enough then the owner has to cut a check, the bank has to accept what is left or they can start taking foreclosure actions themselves.

    So, if the President is applying all the proceeds to his portion of the debt and not the Bush Debt then that is fraud. I assume the U.S. cosigned a note to debtors both time. Paying someone in
    A junior position without consent and approval of the Senior Debtor is Fraud.

  4. The things that Obama lies about seem endless—the auto bailout, Obamacare, Benghazi, his red line for Syria, ISIS is the JV team, the IRS Scandal….

  5. I heard on teevee tonight (our local CBS affiliate) that the plant where Obama gave his speech is idle. Something due to low gas prices. It just seems odd to take a victory lap in a nonworking factory.

  6. *Blind Sheep Blogroll*

    BadBlue
    Catholic Exchange
    Conservativebyte.com
    Doug Ross @Journal
    Drudge Report
    ExposeTheMedia.com
    Fox Nation
    Free Republic
    Gateway Pundit
    iOwnTheWorld.com
    Iranaware
    Keith Hennessey
    Lucianne.com
    Mark Levin
    MichaelSavage.com
    Michelle Obama’s Mirror
    Minutemennews.com
    Nice Deb
    Patriot Update
    Pewsitter.com
    Playbook by Mike Allen
    Politico Magazine
    Poor Richard’s News
    Rampart Media
    RealClearPolitics
    RedFlag News
    Rush Limbaugh
    The Blaze: The Blog
    The Daily Caller
    The Patriot Update
    Theo Spark
    throughthenet
    Weasel Zippers