Government Motors Pays Obama Back For Bailout: Channel Stuffing Reaches Absurd Levels, Inflates U.S. Economic Numbers…
Unbelievable.
Via the amazing Zero Hedge:
In the past two months, everyone has been scratching their heads just how it is possible that the US manufacturing base continues to chug along at pre-recession levels even as the world all around America burns? Today, GM may have given the answer, courtesy of its monthly disclosure of car sales which at the top line is completely irrelevant as the funding for these purchases comes almost entirely from subprime loans handed out by the government to NINJAs. What is interesting is the little blurb in every monthly report discussing the amount of dealer inventory, a topic well-known to frequent readers of Zero Hedge which has discussed GM’s pervasive channel stuffing in the past, and which subsequently went quite mainstream. So how does November channel stuffing stack up? As the chart below shows, at 623,666 cars, it is an all time absolute record, and represents about 3.5 times the total GM vehicles sold in November! It is also a 31k increase in the past month, and 85k cars more in inventory than in July. Because when economic growth at all costs is needed to demonstrate just how viable America is, and a semi-nationalized car marker is one of the only conduits to “generate” economic growth, it does not matter if the end product is actually demanded or will simply corrode and rust in some dealer showroom in perpetuity. After all it is the act of building the car that matters for various monthly PMI, CMI, regional Fed and GDP purposes. Pretty much exactly like in China’s goal seeked “economy.” So the next time someone asks just how is it that the miraculous US decoupling continues, please point them to this chart.
HT: sb
Posted by ZIP on Thursday, December 1, 2011, at 10:51 pm | 
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Is there any malfesance that is too low for this corrupt criminal gangster administration?
“I don’t build in order to have clients. I have clients in order to build.”
- Ayn Rand
They can produce ten million.
If you can’t sell that dog turd, it’s not worth a penny.
Sounds like perfect transportation for China’s ghost cities.
“The supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number — for example, have people dig holes and then fill them up again, or perform other useless tasks. Work is sometimes its own reward. Mostly, however, it is the price we pay to get the things we want. Our real objective is not just jobs but productive jobs — jobs that will mean more goods and services to consume.”
- Milton Friedman
Part of Obama’s 5 year plan. Just like in Soviet Russia, where the workers were busy making warehouses full of unneeded boots while the country starved to death.
That picture of Obama when he was in that Volt is iconic. Kind of like Douchekakis in that tank.
GM needs to fail.
I think something needs to be done about about the transfer of jobs and wealth to China. Tariffs don’t have to target every country. If a country (like China) keeps its currency artificially devalued and keeps its workers in slave like conditions, then they deserve to be penalized until they bring in fairer practices.
Suprise, suprise…deception continues to be the Obama “new” normal
Buck Ofama, and the goat he rode in on!
Isn’t it nice that we get to buy Volt’s back again from worried owners? Although I guess that might be cheaper in the long run than paying claims for burnt down garages and houses. What a goat screw.
So Government Motors made about 30,000 extra cars in the past two months. I am not finding how much this contributes to manufacturing indices. Any help?
Any losers buy a GM car on here in the last few years? Should be ashamed of yourself, no matter what the deal was. Traitors.
Didn’t use that same excuse to kill off a bunch of dealerships – too many dealers??? Maybe they need to increase the number of dealerships and spread the excess inventory around?? Yeah, that’s the ticket…create phantom jobs.. isnt what this admin do best??
Fuck ‘em. They will never – EVER – see another penny from me as long as I draw breath. Same with Chrysler.
VOTE – 2012
This is the infamous email that has gone viral and the GOP had better start growing a set and state the obvious about this avowed Marxist/Communist tyrant
It needs to be updated every day because he is a gangster and will do as he pleases
http://iowntheworld.com/blog/?p=107181
Thanks for the story, we heard about the so called boom in auto sales and went “huh?”
I stopped believing any statistics that this administration issues a long time ago.
Fake sales, fake jobs, and fake profits, the only thing that’s real is the inventory that’s going nowhere. Before bankruptcy in February 2007 GM had a 60 day inventory on the lots and that was considered dangerously high. Now the GM chairman is out boasting about their profitability while ignoring a 105 day inventory. This is a company that is building itself out of business. They should be closing plants and cutting back on production. I guess they no longer teach inventory management in business school.
Does GM management (and the UAW) think that the taxpayers will bail them out again? I don’t think we can afford to. What is Stalin’s bat eared son going to do now, bring back tariffs? Or will it be another buyer “incentive” program paid for with tax dollars?
So Obama gave the unions control of GM and now they’re running the company further into the ground by making cars with no market for them and stacking the lots. All this is being done to make the manufacturing numbers look better so Obama can use it as a talking point.
November can’t come soon enough.
Gee, the plaintiff bar seems to be overwhelmingly democrat, and they sue businesses all the time for deceptive business practices like this. So where is the big lawsuit against GM?
crickets………….
Buy your next car or truck from a non-union factory, most are located in the South………they are just as American as any piece of crap that rolls out of Detroit, where workers drink and smoke pot on the job and build cars that people transport their families in…..
Thanks for the Potempkin economy, President Stutters!
And thanks for voting this embarrassing ignoramus into office, moron 52%!
Lead in for Cash for Hoopties Redux.
Get ready for a year’s worth of “great” economic news from the mainstream press. Too bad it is entirely false.
The unemployment / jobs numbers comeout this morning.
Does anyone really believe them anymore?
They screw with the Birth/Death adjustments, with the overall worker numbers and I suspect, they absolutely lie about the Unemployment figures.
This whole administration is a lie.
This is why socialism and communism are failed behaviors and will always lead to failures…because these are economic and social systems that are ALWAYS based on lies…
No doubt, this administration is an illusion and as corrupt as it gets, but still the general public seems clueless. I can’t tell you how many people we know who simply aren’t paying attention, who think the Tea Party is racist because MSM said so, who think Obama “hasn’t had enough time” etc. We keep preaching to the choir…what is our best route to getting the word outside the choir? Time grows short.
@Texmom:
Sad but true,esp here in New England. Always been that way tho, they complain about a lot of the same things that concern us yet deny it has anything to do with the actual cause. Weird.
This is no way to run an economy.. churning out a product nobody wants just to keep unions employed.. paid for with tax money in perpetuity around and around.. new models shuffled in the front and old models shuffled out the back in the dark of night to be deconstructed into raw materials and reconstructed into shiny new models that noone ever buys..
Obama’s Volt……….cars for the 1%…………….
When I sold cars a few yrs ago the local dealer was sent cars by GM according to the national sales figures needed to outdo Ford. Even tho the local couldn’t sell them he had to pay a monthly flooring cost back to GM. This was tough on small dealers. I would think that this cost is going to bankrupt a lot of dealers. Unless GM’s hero the great BO saves them with our money.