SUCKERS!!!

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Posted on 10th May 2013 by Administrator in Economy |Politics |Social Issues

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It’s called corporate fascism. Bankers, mega-corporations, billionaires and captured politicians rule this country. They will cheat, steal and loot at will because they can. You are the sucker, in case you were wondering.

 

Thanks For The Bailout, Suckers! GM Builds A New Plant In China

Written By : John Hawkins
May 9, 2013

As a general rule, corporations should be able to build plants where they want, whether it’s in America or elsewhere. Moreover, if they choose to go overseas, we should be asking, “Why is that?” Are our corporate taxes too high? Do we have too many regulations? Is there something else that we can do as a nation to be more business-friendly, to keep building plants here in America, so that we can employ more people and rake in more taxes?

GM in China

However, it’s a little different with a company like General Motors.

Taxpayers lost more than 10 billion bailing out GM because Obama thinks it’s fine for his corporate allies to embrace capitalism on the way up and socialism on the way down. Now, GM’s taking some of that money that it pilfered from us and it’s building a plant in China with it.

General Motors Co. GM +1.36% said its Shanghai GM joint venture received permission from Chinese authorities to build an eight billion yuan ($1.3 billion) factory to manufacture its Cadillac brand, boosting the auto maker’s ambition of becoming a larger player in China’s booming luxury-car market.

“We’ve decided that the luxury market is going to grow and we want a bigger share,” said Dayna Hart, a spokeswoman for GM in China.

Barack Obama’s union pals did great and China’s doing great, but how did American taxpayers make out? We got looted. Here’s an idea: To hell with the new plant in China, how about paying that money to taxpayers to cover some of what we lost?

CONSUMER REVOLVING CREDIT AT 2005 LEVELS

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Posted on 7th May 2013 by Administrator in Economy |Politics |Social Issues

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I find it fascinating that the horrible consumer credit data was released at 3:00 pm by the Federal Reserve and the “journalists” at the Wall Street Journal owned Marketwatch did not feel it warranted a headline on their site. You see the stock market is above 15,000 and they need to convince the sheep that this is great news for them. Therefore, they wouldn’t want any negative news to derail their 15,000 Dow storyline.

The blatant manipulation of our financial markets by Wall Street and their cronies in Washington DC is completely revealed by the data reported today. Revolving credit card debt tells the story. We already know that real wages have been falling since the mid 2000′s. We know there are 2 million less full-time jobs than there were in 2007. We know that payroll tax increases and Obamacare premium increases have sucked the life out of the consumer. Not only is credit card debt lower than it was 6 months ago, but it is lower than it was in May 2005. It isn’t lower because consumers are paying it down. It is lower because they can’t take on any more debt.

So riddle me this. If they aren’t buying Chinese shit with credit cards and their disposable income is declining, how does a country that depends on consumers to generate 71% of its GDP by spending on shit happen to be in an economic recovery?

Government sanctioned fraud, financed by you the taxpayer. Total consumer credit did hit a new all-time high in March. Since 2009, credit card debt has declined by $71 billion. Over this same time frame non-revolving debt has increased by $458 billion. That sure sounds like a disconnect to me. Using your credit card is a personal choice and can be restricted by the credit card issuer through reduced credit lines. Why would consumers be cutting back on credit card debt by 8% and increasing their use of non-revolving credit by 30%?

Easy answer – Obama and his government minions. They have doled out hundreds of billions in student loans to dullards going to the University of Phoenix to keep the unemployment rate on a downward track and they happen to still own 80% of Ally Financial (GMAC, Ditech, Rescap). Obama and his minions have used Ally Financial as their little engine of growth for GM and the rest of the auto industry. While automaker profits continue to fall, Ally Financial is giving auto loans to deadbeat subprime borrowers accounting for 45% of all vehicle sales in the country. 

When has subprime lending created problems in the past? Is there a more subprime borrower than a University of Phoenix dropout or a Cadillac Escalade owner in West Philly? The economy is in the shitter. The average person can’t afford a pot to piss in. The government is using your money to create the illusion of recovery. There will be hundreds of billions in loan writeoffs for this government sanctioned fraud. You will foot the bill, so work harder and pay more taxes. It’s your duty to comrade Obama.  

March Consumer Credit Increase Driven Entirely (And Then Some) By Student And Car Loans

 
Tyler Durden's picture

Submitted by Tyler Durden on 05/07/2013 15:18 -0400

The March consumer credit headline was a disappointment, increasing by just $7.97 billion, on expectations of a $15.6 billion increase, with the February total revised lower to $18.14 billion. So far so bad. It gets worse when one peeks beneath the surface and finds that discretionary consumer credit in the form of credit card and other revolving loans posted its first decline of 2013, dropping by $1.7 billion, the biggest decline since December’s 2.1 billion. So what rose: why debt for purchases of Government Motors and student loans of course, which increased by $9.676 billion in March. In other words: the student bubble keeps getting bigger, more and more GM cars are being bought on subprime credit, while the vast majority of Americans can’t even afford to charge toilet paper purchases as the discretionary deleveraging continues.

In the last year, of the $157 billion in total debt issued, $152.6 billion, or 97.5%, is in the form of non-revolving credit. Consumer credit created? A whopping 2.5% of the total or $4 billion.

Finally, who is the primary source of all this free credit? Why Uncle Sam of course (and all US taxpayers by implication, when the student and second subprime car bubble pops of course).

IF AUTO SALES ARE BOOMING WHY ARE GM PROFITS PLUNGING?

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Posted on 2nd May 2013 by Administrator in Economy |Politics |Social Issues

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Yesterday all of the automakers reported April auto sales to great fanfare. GM sales were up 11% over  last year. Their YTD unit sales are up 10%. The MSM has been touting the “strong” auto sales as proof the economy is recovering and consumers are flush with cash again from those non-existent jobs. If auto sales at GM are booming at double digit rates, why did their profit plunge by 14% in the 1st quarter? Inquiring minds want to know. Something doesn’t pass the smell test.

Here is a link to the results GM reported today:

http://media.gm.com/content/dam/Media/gmcom/investor/2013/q1/2013-Q1-Financial-Highlights.pdf

Here are my comments/questions:

  • How pitiful is it that a company with $36.3 billion in sales can only manage a $865 million profit? A 2.4% profit margin is a joke, especially after the American taxpayer ate their debt in their illegal reorganization.
  • If their reported unit sales are up 10%, how did they manage to report 3% less revenue?
  • Even though the MSM is reporting an auto recovery, GM managed to make $139 million less profit than 2012. This couldn’t be due to channel stuffing.
  • Evidently GM is selling more cars for a lot less money. So let me get this straight. GM is stuffing inventory down the throats of its dealers. It is offering massive incentives to move its trucks. It is using Ally Financial to dole out subprime auto loans to 45% of the “purchasers” of their vehicles. And this constitutes an auto recovery.
  • The good old balance sheet tells an interesting story. Even though revenue is falling, Accounts receivable surged by 20% in three months. GM wouldn’t be helping its dealers finance their bloated inventory, would they?
  • The supposedly strong GM has $34 BILLION of pension and benefit liabilities on its books and only $38 billion of equity. Yeah, that will work out just fine.

GM’s results reveals that the MSM bullshit about a strong auto market is just another tired propaganda storyline. The auto sales are being generated by bad loans to deadbeats and huge incentives by the automakers that guarantee a loss on just about every car sold. Sounds like a great business plan.

 

GM Reports First Quarter Net Income of $0.9 Billion

DETROIT – General Motors Co. (NYSE: GM) today announced first quarter net income attributable to common stockholders of $0.9 billion, or $0.58 per fully diluted share. These results include a net loss from special items that reduced net income by $0.2 billion, or $0.09 per fully diluted share.

In the first quarter of 2012, GM’s net income attributable to common stockholders was $1.0 billion, or $0.60 per fully diluted share, including a net loss from special items of $0.6 billion or $0.33 per share.

Net revenue in the first quarter of 2013 was $36.9 billion, compared to $37.8 billion in the first quarter of 2012. Earnings before interest and tax (EBIT) adjusted was $1.8 billion, compared to $2.2 billion the first quarter of 2012. First quarter EBIT-adjusted results for 2013 include the impact of $0.1 billion in restructuring costs.

“The year is off to a solid start as we increased our global share with strong new products that are attracting customers around the world,” said Dan Akerson, GM chairman and CEO. “In addition, we saw progress in Europe thanks to strong cost actions and great vehicles like the Opel Adam and Mokka.”

GM Results Overview (in billions except for per share amounts)

  Q1 2013 Q1 2012
Revenue $36.9    $37.8   
Net income attributable to common stockholders $0.9    $1.0   
Earnings per share (EPS) fully diluted $0.58  $0.60 
Impact of special items on EPS fully diluted $(0.09) $(0.33)
     
EBIT-adjusted $1.8    $2.2   
     
Automotive net cash flow from operating activities $0.5    $2.3   
Adjusted automotive free cash flow $(1.3)   $0.3   

 

Segment Results

Beginning this quarter, the company will report segment revenues and profits based on the geographic region in which a vehicle is sold. Previously, segment results included the impacts of inter-segment sales and profits. Prior year segment results have been reclassified so all information is shown on a comparable basis. Financial results for Chevrolet Europe continue to be recorded in GM International Operations. Consolidated results are unaffected by this change.

  • GM North America reported EBIT-adjusted of $1.4 billion, compared with $1.6 billion in the first quarter of 2012.
  • GM Europe reported an EBIT-adjusted of $(0.2) billion, compared with $(0.3) billion in the first quarter of 2012.
  • GM International Operations reported EBIT-adjusted of $0.5 billion, compared with $0.5 billion in the first quarter of 2012.
  • GM South America broke even on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.2 billion in the first quarter of 2012.
  • GM Financial earnings before tax was $0.2 billion for the quarter, compared to $0.2 billion in the first quarter of 2012.

Cash Flow and Liquidity

For the quarter, automotive cash flow from operating activities was $0.5 billion and automotive free cash flow adjusted was $(1.3) billion. The change in year-over-year cash flow was primarily the result of lower earnings and a series of timing-related items that GM expects to reverse during the balance of the year.

OBAMA VOLT SALES PLUNGE

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Posted on 3rd April 2013 by Administrator in Economy |Politics |Social Issues

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You have subsidized this piece of shit and the other ridiculous electric car Obama green government disasters to the tune of $7.5 billion. But at least Obama has taken a $20,000 pay cut while he golfs. This is a joke, but it’s not funny. GM and Obama – a match made in heaven. There are 15 million vehicles being sold per year in the U.S. The government is subsidizing this piece of shit to the tune of $7,500 per Volt and they are selling less than 20,000 per year.

Chevy Volt Sales Plunge – Obama’s Flagship EV a Failure

 Submitted by Mark Modica on Wed, 04/03/2013

Obama and Volt 

The Chevy Volt has inarguably been the poster child for President Obama’s push to electrify America’s auto fleet. Billions of taxpayer dollars have been spent to produce and subsidize the plug-in electric car. For years we have heard about the supposedly amazing technology for the Volt which would lead America to energy independence, be a “game-changer” for General Motors and provide a multitude of new green jobs. Proclamations were made that supply for the wonder-car could not keep up with the demand. Well, March’s sales figures are in and give further confirmation that the lofty claims were all lies.

March’s sales for the Chevy Volt plunged over 35% from last year to a paltry 1,478 units. To put that in perspective, that’s about one Volt sold every two months per dealership. The number is also down from an only slightly less paltry 1,626 sales in February. GM’s excuses for the poor performance seem to be drying up as quickly as the demand for the Volt. During GM’s sales conference call, management claimed that sales are “stable” and that they are “feeling good about the trend.” Such dishonesty brings into question GM’s credibility.

In the past, GM claimed that lack of supply was the reason for low Volt sales. In addition, GM indignantly blamed a Republican conspiracy to hurt Volt sales as a contributing factor to the dismal sales figures for the car. Regarding supply, a recent search on cars.com showed that 6,804 new Chevy Volts are available nationwide. That’s about a five months supply! The problem is obviously a lack of demand as GM produced 2,722 Volts in March; over a thousand more than needed.

GM and the Obama Administration have done what they can to prop up sales of the Volt and give the false appearance of success. Lease terms were manipulated to manufacture demand, as GM even admitted. Crony Corporation General Electric (supplier of charging stations) agreed to purchase 15,000 of the vehicles. Localities, and even the military, used taxpayer dollars to purchase Volts. And worst of all, wealthy buyers of the Volt receive a federal tax credit of $7,500 each to purchase (or lease) the vehicles.

So, now we have one more indicator that the Chevy Volt hype has all been a farce. Yet there is still no admission nor is there any accountability for the hoax that cost taxpayers billions of dollars. The lie lives on as few will criticize the politically-sensitive green failure. The Congressional Budget Office reported that electric vehicle subsidies will cost taxpayers about $7.5 billion over a few years for little benefit. Nissan and Toyota have admitted that lithium-ion based, plug-in electric cars are not a viable alternative to gas-powered vehicles. Still, the folly continues.

GM has doubled down on the failed technology of the Volt, now offering a plug-in Chevy Spark while working on plug-in Chevy Cruzes and Cadillacs. The business strategy seems to be politically-driven, since there is no economic reason to pursue a technology that has been a proven failure in the free market, despite taxpayer subsidization. Billions of taxpayer dollars will continue to be lost on a green pipe dream which has no logical basis. When will it be time to say that enough is enough?

Mark Modica is an NLPC Associate Fellow.

IF AUTO SALES ARE BOOMING THEN WHY……..

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Posted on 2nd April 2013 by Administrator in Economy |Politics |Social Issues

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GM and Ford reported “strong” sales for March, up 6.4% and 5.7% respectively. The current annual rate of auto sales has “surged” to 15.2 million. Last year sales rose to 14.5 million from only 12.7 million in 2011. This sure sounds like a tremendous recovery led by great new models from our “saved” GM and wonderful iconic Ford Motors. The MSM was crowing about the results today, except the details tell a different story. GM’s car sales FELL 3% in March. The surge in sales was due to fleet sales going up 12%. It couldn’t possibly be the Federal government buying vehicles, could it? Cadillac sales surged as subprime loans in West Philly to the FSA reached record levels. There were 1,478 Volts sold in the whole country – so there will be 15.2 million vehicles sold in the country and the Obama Volt will account for less than 20,000 of these sales or .0013 of all car sales. Ford car sales FELL 0.2%. Their increase was also driven by fleet sales and truck sales. How dense is the average American? Gasoline prices are above $4.00 per gallon in many cities and they continue to buy low gas mileage trucks and SUVs.

The auto market is completely dependent upon 7 year 0% financing for good credits and subprime lending for 45% of sales and this is all they can achieve?

If sales have been so awesome for the last two years, why are their stocks and their profits in decline? Inquiring minds want to know.

If auto sales were 12.7 million in 2011 and they are pacing at 15.2 million in 2013, why has GM stock dropped from $38 to $28, a 26% decline? I thought Obama saved GM and they were doing awesome. Vehicle sales are up 20% since 2011 and GM still managed to earn $3 billion less in 2012 than they earned in 2011. This doesn’t even take into account the massive channel stuffing that has artificially boosted their sales figures.

It seems that selling vehicles to your dealers and to deadbeats through Ally Financial doesn’t generate profits. But who needs profits when a storyline will do.

 

Chart forGeneral Motors Company (GM)

 

If Ford Motor is doing so well why is their stock at $13 today when it was at $19 in 2011? For the math challenged, that is a 32% drop when auto sales are up 20% since 2011. Is the MSM reporting that Ford sales dropped by $2 billion in 2012 and their net income from operations dropped by $1 billion? Are we really having a strong auto recovery if the two biggest US automakers are making significantly less profit?

Chart forFord Motor Co. (F)

The MSM is not in the truth business. They are in the propaganda business. The storyline of auto recovery is false. The reported sales increases are due to channel stuffing and easy money from Bennie. The 45% of sales from subprime loans will bite the taxpayer in the ass when Ally Financial reports billions in losses over the next few years. You own Ally Financial. So it goes.

 

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