The Obama administration rigged the bankruptcy to favor the union, rigged the IPO to favor the union, and has purchased much of the inventory unsalable in the free market, again to benefit the union (and the environmentalists). But of course, the unions (and the environmentalists) pumped many millions of dollars into Obama’s campaign. They also and pumped many millions into trying to keep Democratic candidates in office in the last election.

By Gary Jason at American Thinker

EXCERPTS:

Several recent revelations bring home just what a cesspool of crony capitalism the American auto industry has become.

First is the news that the “new” GM walked away from the crony bankruptcy proceedings with a huge tax break — one worth up to $45 billion.

Thus, the new GM will save about $45.4 billion in taxes on future earnings, which may allow it to escape taxes for the next twenty years.

The UAW was given a big chunk of new GM in the crooked bankruptcy settlement. To be precise, the very monster that drove GM off the cliff — the UAW — received 35% of the stock in the new company. With the sale of the stock in the new GM, the UAW earned an immediate $3.4 billion in selling about one third of its shares.

In fact, the Obama administration screwed the taxpayer just as thoroughly as it pampered the UAW. The taxpayer put $49.5 billion into GM in the bankruptcy, not to mention all the funds shoveled at the company prior to that. The Treasury recouped only a wretched $13.7 billion in the IPO, mainly because the Obama administration — in yet another unprecedented gift to the union — announced publicly that it would not sell any more stock for the next six months.

Screwed even worse were the old secured creditors — you know, the ones near the front of the line in bankruptcy filings way back when America was governed by the rule of law.

The U.S. General Services Administration (which handles the federal fleet of cars) bought nearly 15,000 hybrid cars over the last two years, or about 10% of the government cars purchased.  This compares to only 1% of the fleet being hybrids just two years ago.  Even more striking, more than 20% of the hybrids the GSA purchased were bought using “stimulus money” (yes, the GSA got “stimulus money” — $300 million in total!).

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