Well, one of the first ‘quick’ and proactive steps taken by the Obama Administration on assuming its office, was to bail out the leading US company Auto makers! Whew! About $50 billion tab ( tax payer money!) was used to bail out the poorly managed General Motors with the main ‘objective’ to go for an IPO (Initial Public Offer in the stock markets) to raise more funds to support a ‘better-run’ GM under Obama administration, in the coming months.
Good News! GM turned a profit in the first quarter! But, it was the same GM that incurred a loss of $88 billion from the years 2005 to 2009, thereby wiping out the equity investors’ interest and money when it declared bankruptcy during the last spring ( Feb 2010) .
With the GM IPO slated at $20 billion, expected to be raised mid- August 2010 – it has been delayed – because there are concerns regarding the success of IPO.Will the tax payers of America help again? My prima-facie interest is to ‘begin’ the efforts to rebuild and reach the US to a state – as it was before George Bush became the President! I am quite sure, the trouble started then, but, it took eight long ‘blind’ years for the US electorate to realise this and finally vote Bush out!
This is going to be the ‘CHANGE’ – Obama is talking about frequently. The manufacturing base has to ‘stand up’ in America and get the positive and profitable results. Mind you, these organisations that closed down – are of large size. They should turn around!! I can very well empathise with Obama – the task laid out for him to do is not easy at all – he got an economy that was on the verge of collapse and the the worst is, when republicans say – now, it is Obama’s economy! Hopefully, some of the Clinton’s guys who are in his team will help Obama to find a solution sooner. Earlier, the US gets out of the hole, better it is for other countries too!
I am sure, Bill Clinton will help his fellow democrat! “Clintonomics” – its strategy and methods – and its implementation – succeeded during the ‘Clinton’ Presidency and the US Economy did very well…