Some $13.4 billion or so taxpayer dollars later (NOT counting whatever has gone to GMAC), I get this CNN headline e-mail:
GM files annual report, says: “There is substantial doubt about our ability to continue as a going concern.”
From the initial AP story:
…. its auditors cited recurring losses from operations, stockholders’ deficit and an inability to generate enough cash to meet its obligations in raising substantial doubts about its ability to continue as a going concern.
Bailout approver Bush and bailout cheerleader Obama didn’t figure in the high probability, which the numbers show came to pass in both January and February, of refusal by enough potential customers to matter to buy from taxpayer bailed-out companies.
As I pointed out shortly after the original deal was done, not buying GM or Chrysler vehicles is “the only …. action the average person (opposed to bailouts) has available that is practical, and will be quickly understood by the powers that be.”
The bailout money thrown at GM and Chrysler has, as predicted, only made things worse. It must stop.
UPDATE, 10:30 a.m.: CNN’s related story says nothing about how GM’s falloff from the comparable year-ago period has steadily deteriorated since receiving its bailout money. Instead, it limply notes:
GM said Thursday auto sales, which have plunged more than 40% in recent months, must rebound by next year if it is to survive.
Readers can make the call about whether “more than 40% in recent months” fully accurately characterizes this (see graphic at this link — also at Update 4 below):
- December 2008 (last [mostly] pre-bailout month) — down 31.2%
- January 2009 (first full bailout month) — down 48.9%
- February 2009 (second full bailout month — down 53.1%
If you went into your boss and told him that sales were down more than 40% in recent months, and the numbers were really as they are for GM in the past two months, there would be one word to describe your situation once the boss learned the real numbers: Fired.
UPDATE 2: Welcome Instapunditeers!
UPDATE 3: I’ve done a post at NewsBusters on how the press is totally ignoring GM’s post-bailout sales dive.
UPDATE 4: Okay, so there’s no lack of clarity, here are the results for Dec. 2008, Jan. 2009, and Feb. 2009 for the “Big Six”: