Now that Barack Obama is safely ensconced in the White House for another four years, several items which should have been noticed or revealed before Election Day have come to the fore. Collectively, they tell us two things: that the pre-election economy was worse than voters were led to believe, and that the prospects for meaningful improvement under the current regime are bleak at best. Additionally, in at least one instance, economic activity itself was likely manipulated.
The probable gamesmanship occurred at Government/General Motors, which is still effectively under Obama administration control, still on track to saddle U.S. taxpayers with a loss of $25 billion or more, and still losing market share.
Despite already-bloated inventories at its dealers, GM’s production lines ran full throttle during September and October. Thanks to that ramp-up and unimpressive sales growth, retail inventories grew by an astonishing 99,000 in October and November. Dealers received five vehicles for every four they sold during those two months, bringing their on-hand stocks from an already unsustainable 689,000 in September to an absolutely ridiculous 788,000. GM estimates that its dealers have a 4-1/2 month supply of full-size pickups — if the economy doesn’t tank….