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Trump is Right to be “Angry” about GM

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President Barack Obama delivers remarks at General Motors Auto Plant in Hamtramck, Mich., July 30, 2010. (Official White House Photo by Pete Souza)

The drive by media has a lot of heart—giving President Trump a hard time about GM (Government Motors) cutting jobs—running headlines that he’s “Angry” and is “Threatening” the company.

Talk about inheriting a government disaster. It was the Obama administration’s misguided bailout of the autos in 2008 that lead to this mess to begin with. And it was put on Trump’s plate.

An industry reckoning was simply delayed as Obama doled out $11.3 billion to resuscitate—essentially an underfunded pension plan that happens to make cars and trucks—a dying business.

And it was under Obama’s watch that the Bernanke/Yellen Fed created money out of thin air while at the same time nailing interest rates to the floor boards so Wall Street could borrow for nothing, play the markets for free, and basically everyone in America with a driver’s license could get an auto loan for a shiny new truck.

Now, as interest rates rightly increase—and certainly by not nearly as much as they need to—under today’s Fed “Top Gun” Jerome Powell, it turns out the car business is a mess. A sputtering broken down piece of junk (let’s not forget the bond holders that were never bailed out and lost everything).

The business was a loss leader to begin with, and it was the Obama administration that failed to look under the hood and instead put this wreck of company back on the road for Trump to fix. Yet another example of government malfeasance.

Originally posted on Your Survival Guy.

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.