Wednesday, September 09, 2009

Spin This, Obama: Taxpayers Face Heavy Losses on Auto Bailout

Maybe The Great Orator can preface his 113th speech on health care tonight by explaining how we're all going to see the economic benefits, especially when confronted by this wonderful news.
Taxpayers face losses on a significant portion of the $81 billion in government aid provided to the auto industry, an oversight panel said in a report to be released Wednesday.

The Congressional Oversight Panel did not provide an estimate of the projected loss in its latest monthly report on the $700 billion Troubled Asset Relief Program. But it said most of the $23 billion initially provided to General Motors Corp. and Chrysler LLC late last year is unlikely to be repaid.

"I think they drove a very hard bargain," said Elizabeth Warren, the panel's chairwoman and a law professor at Harvard University, referring to the Obama administration's Treasury Department. "But it may not be enough."

The prospect of recovering the government's assistance to GM and Chrysler is heavily dependent on shares of the two companies rising to unprecedented levels, the report said. The government owns 10 percent of Chrysler and 61 percent of GM. The two companies are currently private but are expected to issue stock, in GM's case by next year.

The shares "will have to appreciate sharply" for taxpayers to get their money back, the report said.
Good luck with that.

Meanwhile, support for ObamaCare continues to tank.
Public disapproval of President Barack Obama's handling of health care has jumped to 52 percent, according to an Associated Press-GfK poll released hours before he makes his case for overhaul in a prime-time address to Congress.

With his health revamp moving slowly and unemployment edging ever higher, Obama's overall approval rating has also suffered a blow. The survey showed that 49 percent now disapprove of how he is handling his job as president, up from 42 percent who disapproved in July.

The grade people give Obama on health care also has worsened since July, when just 43 percent disapproved of his work on the issue.
Unemployment is edging higher? If Bush were still around, that would read skyrocketing.

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