The Flight of the Money – Where Has It Gone?
Obama’s policies terrify business community; capital is leaving, cash is being hoarded.
By Dan Kennedy
Business & Media Institute
7/14/2010 2:02:24 PM
Two months ago, the “new” General Motors made possible by government bailouts, theft of shareholders’ equity for forced re-distribution to unions, and managerial change at government’s gunpoint, was held up as shining example of success – it was even repaying its debt to Uncle Sam early.
But the week of the Independence Day, GM announced its urgent need to borrow five billion dollars, to use in re-paying debt (ie. paying its VISA bill with a new MasterCard) and as cash reserves to counter anticipated slumping sales.
As Arte Johnson used to say on “Laugh-In:” v-e-r-y interesting.
If you go to a movie set, you will see perfect-looking streets, each building front rich in detail, looking as real as real can be. Yet its only façade. One thin piece of painted sheetrock propped up. Walk around behind it, there’s nothing there.
That’s GM. State pension funds in 30-plus states people are counting on, upside down in toto by trillions. Obama’s stimulus. There are signs stuck here or there with his logo on them, proclaiming the dirt mound or torn up street his “stimulus at work.” The sign-maker was stimulated. Who else? That’s this entire economy. A façade. Walk around behind it: there’s nothing there. No real job creation, no business investment, no real estate investment, nothing much happening but very un-hopeful hoarding. Where has all the money gone?