Exxxon, Romney, GM and Fiat

Headlines: Yahoo today is an article reporting on the Romney campaign bashing Union Auto Workers in Michigan. The failed Romney logic follows with Obama bailed out GM to gather votes for his reelection. This logic can be applied to any issue in government. People will migrate to or from issues that affect them. Quite naturally they will vote in the same manner. This is politics and being on the right side of dominate voters equals election to office.
If President Obama's push to bailout Banks, AIG, GE, and Auto Czars could be seen as politics but, doubtful.

Mitoosense agrees with Romney GM/Fiat should have been taken to the Bankruptcy or Auction Block with all the 2big2fail banks, not mentioned in the report. Similar to the Lehman Bros. Studebaker, Packard and American Motors and on and on and on who vanished without fanfare in American capitalism.

The insinuation that the Union Auto Workers forced GM/Fiat into unprofitable bottom line. The obvious is GW Bush bailed out GM/Fiat before Obama took office. Not to overlook that American Ford stood tall through the entire spectacle without a whimper of Union Pressures or Government Handouts. Ford kept their long pants on and returned to black ink on their own. This glaring fact should dispel thoughts the Unions brought down the Auto Industry. There was no mention in the article of gross mismanagement of GM or Fiat. Rick Wagoner drove GM to bailouts building giant gas hogs Hummer and unprofitable buyouts of Saab and Hummer nameplates and the foolish ground up creation of Saturn. Rick and company earning 21 million dollars annual CEO compensation destroyed GM, not the UAW. Rick and company also managed the destruction of Pontiac and Oldsmobile nameplates that were profitable for many years.

Fiat is another story who began as The Dodge Bros. then Chrysler, then Daimler Benz, then Cerberus Capital Management LLP and now Tony and Fiat. Lee Iaccoca was the only guy who could run Chrysler. They have been ripe for bankruptcy for many years regardless of UAW associations.

This editorial is about the GOP election in Michigan. If Romney runs on the platform the Banks and Auto Czars should have not been bailed out and taken to bankruptcy he wins Michigan. Conversely, if Romney runs a campaign against the UAW saying they caused the meltdown then Romney will lose to either Paul, Santorum or the RINO. It's interesting the Romney Campaign has not tied the demise of AIG or BoA, Citi and Chase to the UAW since their input in management decisions are the same in both industries.

Evidence is found in another Yahoo article this morning. GM reports the highest profits in recorded history of either old General Motors or new Government Motors at a whopping $7.6 billion income. Indications of how powerful the government influence can be in synthetic capitalism. Is this the model of American Capitalism and Free Markets? Can the GOP support Corporate bailouts and handouts on a conservative platform? Will the GOP ultimately lay blame to the entire meltdown on the UAW. The GOP platform is cloudy and blurs the Democratic perceived success of GM. Is GM a story of successful capitalism and free markets for the Liberal Obama?

Also reported on Yahoo this morning is Exxxon reported increased profits despite lower production output. Seems Exxxon has realized the Enron business model. If you control supply the demand will cause costs to rise creating higher profits. The key being you must have control over the supply. This ties into our editorial three ways. First why would anyone buy a car when gasoline supply and costs rise and fall in the 4 year election cycles. The second is why would anyone buy a car that is regulated by the Government Supported Insurance Underwriters who charge for mandatory coverage in conspiracy with government license and auto tags? The third is why do we as a nation subsidize the Petroleum Industry with taxpayer funding?

Romney has not attacked Obama for supporting gas and oil subsidy. Maybe this will be the narrative for Texas and Alaska who are oil rich states. Or maybe it's just politics and political theatre in Michigan!!!