$865 million in profit for GM during the first three months of 2010, a massive reversal from the $4.4 billion lost in the 4th quarter of 2009. The reasons: $50 billion in government aid; elimination of debt in bankruptcy; improved manufacturing; and fewer cash-back incentives for car buyers. GM cut 70,000 jobs from 2005 up to the time of the forced bankruptsy and take-over by Obama's Administration. Another 100, 000 jobs were lost because of restructuring. In addition to this, another 900,000 jobs were lost nation wide because of the auto industry's calamities.
Understand that Obama spoke at a Michigan GM auto plant, today, and touted the "success" of his industry restructuring. He claimed to have saved a million jobs but never mentioned the million jobs lost and never replaced.
We need to get this in our heads -- Obama math is not typical math. Look, what do you get when you add 1 million saved jobs to 1 million lost jobs ? If you said "zero," you were wrong. The correct answer is "minus one million jobs." If you dig a hole and save the dirt, you still have a hole.
And the alleged profitability of the GM? The Slickmeister had better slow down on this, as well. GM has not been profitable since 2007 . The first quarter of this year saw a $865 million dollar profit, but most of that was, once again, due to government funding, reduced inventory and some small car sales. One should read this article before getting too happy. Or maybe someone should read the 2nd quarter report for GM:
GM Loses $15.5B, Stuns Street
$27.33 per-share loss much worse than analysts predicted
(Newser) - General Motors stunned Wall Street today, reporting a $15.5-billion second-quarter loss—a figure far worse than anything analysts had predicted—as sales collapsed on the company's most profitable products, trucks and SUVs. Prognosticators had estimated the automaker would lose $2.62 per share, excluding items; instead the loss came... More
Ford, which took no money, recorded a 2.1 billion dollar profit margin for the first quarter and 2.6 billion dollars for the 2nth quarter of this year and the fifth consecutive quarter, overall. --- jds
Our question is this: is Obama lying or does he not know what is going on before he speaks? We think the latter.
Point of post: if Wall Street does not believe in GM, what does that mean about the projected material profitability
of the company? A first quarter report of $867 million
averages out to less than $300 million a month -- not good
at all for a company the size of GM. While Obama is bragging about GM, few people who matter (financially)
are buying into his rhetoric -- actually almost no one !!
Ford, which took no money, recorded a 2.1 billion dollar profit margin for the first quarter and 2.6 billion dollars for the 2nth quarter of this year and the fifth consecutive quarter, overall. --- jds
Our question is this: is Obama lying or does he not know what is going on before he speaks? We think the latter.
Point of post: if Wall Street does not believe in GM, what does that mean about the projected material profitability
of the company? A first quarter report of $867 million
averages out to less than $300 million a month -- not good
at all for a company the size of GM. While Obama is bragging about GM, few people who matter (financially)
are buying into his rhetoric -- actually almost no one !!
No comments:
Post a Comment