Obama's great deal: buy GM at $49.50 a share & sell for $27.50

To the editor,

MERRY CHRISTMAS from Obama. Open your stocking wide, the head grinch has a gift to stuff in it. Several lumps of black coal from his sack of GM "election buying" exploits. Taxpayers coughed up 75 BILLION DOLLARS to save GM's WORK FOR MORE, inefficient unions that had bankrupted the company, making it uncompetitive in the global car business. At the same time Obama stiffed every stockholder, bond holder and debt holder with hundreds of billions losses that cut the value of pension accounts for tens of millions of working Americans. The "Government Motors" saga of failure just won't end.

Here is the latest stocking stuffer from Obama and the Democrats. The U.S. treasury still owns 500 million shares of GM stock which it paid $49.50 each for. It is now doing a quick deal to sell 200 million of those shares back to GM. For HOW MUCH you ask? Answer: $27.50 each or a LOSS of almost FIFTY PERCENT on every share. The treasury says it will sell its remaining 300 million shares over the next 15 months. Expect more gigantic losses. the stock is already down 20 percent since it's rescue. The total REAL LOSS for taxpayers will be in the billions. It will be made up with higher taxes on all. The illegal bailout did purchase every UNION VOTE for Obama four weeks ago. Idiots, Like Veverka suggest the Koch brothers do their best to influence election outcomes. Golly gee, here in the BRIGHT LIGHT OF DAY we have Obama NOT INFLUENCE an election outcome but BUY ONE right in front of your very eyes and mine. Not with his money, but YOURS.

I save the grinch's best and biggest gift for last. The box is big and once again has a "for union members" gift card attached. Hold your holiday shorts for this little gem. This is the gift that never stops giving. Under NORMAL bankruptcy, which is what should have happened at GM, any company's financial records become ancient history. A new buyer starts with his own clean slate. But Barack Obama is to union interests what Bill Clinton was to Monica Lewinsky. It was not enough for Obama to harm GM creditors of every type for hundreds of billions while handing a huge chunk of the company over to unions at everyone else's expense, Barack had to go the further, like election buying with an INSURANCE rider.

The old GM had $48 BILLION in LOSS CARRY FORWARDS. A loss carry forward allows any company to offset current and future profits against those previous losses. In a normal bankruptcy those losses are expunged. If The new buyer makes a PROFIT in year one he pays corporate income taxes. Not this GM deal. The OBAMA "we need to buy the election team" demanded the $48 BILLION in loss carry forwards remain on the books. Result? If OBAMA GM makes $2.4 BILLION in profits this year it pays not ONE DOLLAR in taxes..... nor a dollar in TAXES on the next $45.4 billion in profits either. It could be 20 years before the OBAMA CREATED GENERAL MOTORS pays a single dollar in income taxes to the treasury. All while this country drowns in Obama's debt.

Tony Boutin

Gilford