Welcome to the Finger Lakes! Our theme song:

In a town this size, there's no place to hide
Everywhere you go, you meet someone you know...
In a smokey bar, in the backseat of your car
In your own little house, someone's sure to find you out
What you do and what you think
What you eat and what you drink...

(Kieran Kane)

Saturday, March 10, 2012

Its official: you're subsidizing Peugeot

The joke's on you

As we predicted, the Obama administration is giving hundreds of millions of your tax dollars to failing French automaker Peugeot.
Attention U.S. taxpayers:  You now own a piece of a French car company that is drowning in red ink.
That’s right.  In a move little noticed outside of the business pages, General Motors last week bought more than $400 million in shares of PSA Peugeot Citroen – a 7 percent stake in the company.
Because U.S. taxpayers still own roughly one-quarter of GM, they now own a piece of Peugeot.
Peugeot can undoubtedly use the cash.  Last year, Peugeot’s auto making division lost $123 million.  And on March 1 – just a day after the deal with GM was announced – Moody’s downgraded Peugeot’s credit rating to junk status with a negative outlook, citing “severe deterioration” of its finances.
In other words, General Motors essentially just dumped more than $400 million of taxpayer assets on junk bonds.
"“severe deterioration” of its finances," indeed.  Next time your local Democrat-friendly congressman comes to town, be sure to ask him about this.

No comments:

Post a Comment