Obama No Longer Laughing about Auto Industry

Hey, Mr. President!

Why are you looking so stern?

Do you have a headache? Is it eye strain? Maybe you should increase the font size on your trusty teleprompters.

Anyway, I think you're going to need some of that gallows humor you were talking about on 60 Minutes.

It was just a week ago when you were giggling with Steve Kroft about the troubled auto industry.

Transcript

ON THE SUBJECT OT THE AILING AUTOMOBILE INDUSTRY THE PRESIDENT SAID HE IS STILL COMMITTED TO HELPING GENERAL MOTORS AND CHRYSLER AVERT BANKRUPTCY, BUT HE SAYS THEY HAVE YET TO DEMONSTRATE THEY CAN REMAIN ECONOMICALLY VIABLE. AND THERE ARE MAJOR POLITICAL OBSTACLES.

PRESIDENT OBAMA: I just want to say that-- the only thing less popular than putting money into banks is putting money (LAUGHS) into the auto industry. So--

STEVE KROFT: 18 percent are in favor.

PRESIDENT OBAMA: (LAUGHS) That's--

STEVE KROFT: Seventy-six percent against.

PRESIDENT OBAMA: It-- it-- it's not a high number.

STEVE KROFT: You're sitting here. And you're-- you are laughing. You are laughing about some of these problems. Are people going to look at this and say, "I mean, he's sitting there just making jokes about (LAUGHTER) money--” How do you deal with-- I mean, wh-- explain -

PRESIDENT OBAMA: Well--

STEVE KROFT: --the mood and your laughter.

PRESIDENT OBAMA: Yeah, I mean, there's got to be--

STEVE KROFT: Are you punch drunk?

PRESIDENT OBAMA: No, no. There's gotta be a little gallows humor to (LAUGHS) get you through the day. You know, sometimes my team-- talks about the fact that if-- if you had said to us a year ago that-- the least of my problems would be Iraq, which is still a pretty serious problem-- I don't think anybody would have believed it. But-- but we've got a lot on our plate. And-- a lot of difficult decisions that we're going to have to make.

So much can change in just a week. Obama's not laughing today, and neither are investors.

From the Washington Post:

In a speech at the White House, Obama blamed the industry's woes on "a failure of leadership -- from Washington to Detroit," and he said problems have been papered over and tough decisions avoided for decades as foreign competitors outpaced U.S. car companies.

"We, as a nation, cannot afford to shirk responsibility any longer," he said. "Now is the time to confront our problems head-on and do what's necessary to solve them."

He added, however, "We cannot, we must not, and we will not let our auto industry simply vanish. . . . It is a pillar of our economy that has held up the dreams of millions of our people. But we also cannot continue to excuse poor decisions. And we cannot make the survival of our auto industry dependent on an unending flow of tax dollars. These companies -- and this industry -- must ultimately stand on their own, not as wards of the state."

Huh? I'm confused. Obama wants us all to be wards of the state. He wants us to be dependent on government. He wants to strip away our liberties.

The method in his bailout madness is very clear.

OBAMA: So let me discuss what measures need to be taken by each of the auto companies requesting taxpayer assistance, starting with General Motors. While GM has made a good faith effort to restructure over the past several months, the plan they have put forward is, in its current form, not strong enough.

However, after broad consultations with a range of industry experts and financial advisors, I'm confident that GM can rise again, provided that it undergoes a fundamental restructuring. As an initial step, GM is announcing today that Rick Wagoner is stepping aside as Chairman and CEO.

Obama makes it sound like the canning of Wagoner was GM's idea. The White House fired Wagoner, not GM.

It's the creepy doublespeak of a dictator.

OBAMA: This is not meant as a condemnation of Mr. Wagoner, who has devoted his life to this company; rather, it's a recognition that it will take a new vision and new direction to create the GM of the future.

In this context, my administration will offer General Motors adequate working capital over the next 60 days. During this time, my team will be working closely with GM to produce a better business plan.

They must ask themselves: have they consolidated enough unprofitable brands? Have they cleaned up their balance sheets or are they still saddled with so much debt that they can't make future investments? And above all, have they created a credible model for how to not only survive, but succeed in this competitive global market?

Let me be clear: the United States government has no interest or intention of running GM. What we are interested in is giving GM an opportunity to finally make those much-needed changes that will let them emerge from this crisis a stronger and more competitive company.

Obama is overseeing the destruction of GM. He's waging war against the private sector.

Let this be a warning to business and industry: DO NOT ACCEPT GOVERNMENT BAILOUT FUNDS.

If a business takes government assistance, it no longer is free to function without government interference.

It's a classic "kiss and slap" routine.

Here. We'll help.

No help for you!

Instead of being buoyed by Obama's announcement, the market plummeted.

...U.S. stock markets plunged on the news. The Dow Jones industrial average was down more than 250 points in early afternoon trading, and GM shares were off more than 21 percent. Shares of Ford, which did not receive federal bailout funds, were down slightly. Chrysler is privately owned by Cerberus Capital and does not trade publicly.

The plunge didn't stop at 250. The Dow is down more than 300 points.

Investors are not buying Obama's "restructuring" and intervention plans. They aren't showing confidence in Obama and government rule.

The timing of this is interesting. Obama's escaping the fallout as he goes off to the G20 summit.

Still, I'm glad Obama's leaving the country for a week. We need some time apart. I want him to go away. I can't take it anymore.
___________________

Watch the video of Obama's remarks on the auto industry. You can tell he's using his giant teleprompter. Although it's centered, his eyes again are cast slightly downward. He still isn't looking into the camera. He still isn't looking into the eyes of the America people.

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