Right Thinking From The Left Coast
Adventure is worthwhile - Aesop

Another One Bites the Dust
by

This will probably end up being subsumed in the press by the Tiller murder, but it appears that GM is going to join Chrysler in the bankruptcy line:

May 31 (Bloomberg)—General Motors Corp. plans to name Al Koch as the automaker’s chief restructuring officer tomorrow when GM is expected to file for bankruptcy protection at 8 a.m. New York time, the Wall Street Journal reported, citing unidentified people familiar with the matter.

Wonderful.  Simply fucking wonderful.  Chrysler got $7 billion in taxpayer money for a “bailout” and declared bankruptcy.  GM recieved $19.4 billion, with the same result.  And to add insult to fucking injury, the cherry on top of this shit sundae?  Chrysler won’t be paying the loan back:

NEW YORK (CNNMoney.com)—Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler’s bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company’s key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler’s operations during bankruptcy.

I’m sorry, but I simply cannot control my language here.  This is fucking abominable, and Bush, Obama, and every Congressperson that approved this should be kicked in the goddamn crotch for approving this.  $30 billion down the fucking drain, and for absolutely nothing.

I was watching CNN during my weekly Saturday lunch at Mickey D’s, and they were doing a bit with all the union autoworkers for GM giving their sob stories on how worried they were about their jobs, how they were going to pay for their kids’ college (here’s an idea, the kid saves up or takes out student loans to pay for it his own damn self), and all the typical “appeal to sympathy” misdirection bullshit that leftists pull when the actions they supported blow up in their face.  Remember how pundits were crying that by declaring bankruptcy, the auto industry would have a “waterfall effect” on the economy because they wouldn’t be able to get parts from suppliers, it would be harder to sell vehicles, etc., and that these bailouts were NECESSARY to prevent the bankruptcies and keep the economy from imploding?  How many of these same assholes will be singing the same tune tomorrow?

Christ, I’m so pissed off I can barely see straight right now. 

Update: Man, this just keeps getting better and better! More below the fold:

The government-orchestrated shrinkage will cost taxpayers $30 billion, on top of $20 billion in U.S. funds already put into the company. In exchange, the U.S. will own 60% of the new GM. In all, the rescue of the car industry could cost taxpayers close to $100 billion.

But that’s not the best part--oh no:

President Obama defended his decision to take a majority stake in GM, saying it was unavoidable and temporary. “We are acting as reluctant shareholders,” he said in a televised address.

Does anyone other than a partisan leftist believe Obama when he says this?

Posted by on 05/31/09 at 07:10 PM (Discuss this in the forums)

Comments


Posted by on 05/31/09 at 09:42 PM from United States

Plus Ford now gets to compete with the government. Not that the government is necessarily a worthy competitor, it’s just that Ford doesn’t have the printing press. It actually has to accomplish something.

Posted by West Virginia Rebel on 05/31/09 at 10:07 PM from United States

So...when nobody buys the dinky little golf carts GM is now going to be putting out, and even more plants are moved to Mexico and China, and the unions want somebody to blame...who are they going to find?

Posted by Hal_10000 on 06/01/09 at 03:12 AM from United States

Oh, it can get worse. Just wait until we have to pick up the tab for the union retirement plans.

Posted by on 06/01/09 at 07:48 AM from United States

Oh, it can get worse. Just wait until we have to pick up the tab for the union retirement plans.

Yep. I wonder if the majority shareholder after restructuring will be GM’s retirement plan? I would have to say hell and yes.

Because it’s now a retirement fund that happens to make cars on the side, we are all going to have to prop up one of the most inefficient companys in America.

The stupid, it burns

Posted by on 06/01/09 at 08:41 AM from United States

As I’ve commented before, just wait until the Oministration gives steep tax breaks for buying a GM or Chrysler vehicle. That is a fine line from turning into a penalty for not buying one.

One way or the other, the feds will twist the citizenry’s arm to sell these vehicles.

$30 billion down the fucking drain, and for absolutely nothing.

It wasn’t for nothing. That money kept the union afloat for 8 months.

Posted by AlexinCT on 06/01/09 at 11:37 AM from United States

You and I are investors in this company now without the ability to divest ourselves of the shares if we do not like the way things are going nor the ability to walk away and minimize our losses to what we have already given away. Anyeone that’s under the illusion that even a streamlined GM owned and driven by the government and the unions is going to be anything but a money pit needs to have their heads examined.

Posted by on 06/01/09 at 11:47 AM from United States

I think Wiserbud has hit the nail on the head, with possible tax incentives for buying a GM/Chrysler product. I’m also sure that every goverment purchase of a automobile will be the GM/Chrysler brand. I think if it will result in a huge antitrust lawsuit, one I think could easily be won.

But what will suck the hardest is watching these once great American companys collapse under the supervision of the government. Once Chrysler/GM comes out of bankruptcy and the public has a chance to invest their dollars, buy buying Chrysler/Gm shares.. It just won’t happen.

Posted by on 06/01/09 at 11:52 AM from United States

As I’ve commented before, just wait until the Oministration gives steep tax breaks for buying a GM or Chrysler vehicle. That is a fine line from turning into a penalty for not buying one.

Most likely this will be in the form of duties and fees for imports.  Of course, many “Japanese” vehicles are made domestically, so I wonder how they’ll work that out short of mandating UAW membership for them.

Posted by on 06/01/09 at 12:25 PM from United States

mandating UAW membership for them.

With “card check” becoming an issue in many states, I think it’s safe to say it’s coming.

Posted by on 06/01/09 at 12:45 PM from United States

So about that bailout we gave them that was absolutely essential in preventing a bankruptcy . . . ?

This actually concerns me more than alot of what our president has been doing lately.  Because, despite assurances to the contrary, once our government takes up some new responsibility it will fiercely hold on to it at all costs.  So I don’t foresee the massive increase in the governments involvement in the economy going away any time soon.  And once the precedent has been set it’s going to be that much harder to stop in the future.

Atlas shrugged may have been a bit heavy handed but it seems that we’re headed in that direction.  What will be the next industry deemed to big to fail, and too poorly run to be left in private hands?

Posted by on 06/01/09 at 01:07 PM from United States

What will be the next industry deemed to big to fail, and too poorly run to be left in private hands?

Umm, how about newspapers for starters? Or the media in general. It’s clear that the liberals do not want to lose their PR outlets. That’s why they are so concerned with Fox and talk radio. They are the only two media outlets that don’t regurgitate left talking points and don’t support left causes and issues.

Thank god for the British media.

Posted by Sean Galbraith on 06/01/09 at 01:13 PM from Canada

I wonder if international lenders consider the United States’ itself too big to fail yet?

Posted by on 06/01/09 at 01:13 PM from United States

Wiser: I do halfway suspect that that will come up at some point.  The media can’t be allowed to fail, so it must be propped up.  And it just so happens that the institutions being funded will be left leaning.  And any right leaning media will be on their own to compete, with no help, against everyone else getting billions pumped in to them every year regardless of whether anyone is buying their papers. 

But of course government funding is the only way to guarantee an unbiased presentation of the facts.

Posted by on 06/01/09 at 01:41 PM from United States

But of course government funding is the only way to guarantee an unbiased presentation of the facts.

We know this because NPR is totally unbiased in its leftist opinions being presented as facts…

Posted by on 06/01/09 at 02:10 PM from United States

Plus Ford now gets to compete with the government.

We haven’t even touched on two other issues.

One: Not only does Ford have to compete with the government, they have to compete with their own workforce which now owns a considerable chunk of their competition, GM and Chrysler. Someone please tell me how that one will shake out?

Two: What happens when GM and Chrysler workers (specifically Chrysler workers because the UAW owns such a large share) want to organize against their own union. If the union owns the company, they are now management. Right? So will the UAW allow workers to organize against itself? In other words, will the union allow a union? My money is on no.

Posted by on 06/01/09 at 02:32 PM from United States

This may explain a lot ...

http://tinyurl.com/ksn8o5

An inexperienced greenhorn making policy. Par for the course.

Posted by on 06/01/09 at 03:39 PM from United States

Because, despite assurances to the contrary, once our government takes up some new responsibility it will fiercely hold on to it at all costs.  So I don’t foresee the massive increase in the governments involvement in the economy going away any time soon.  And once the precedent has been set it’s going to be that much harder to stop in the future.

I am sure you are mistaken.  I mean, the government has successfully removed itself from so many other programs that were originally set up as temporary programs.  I mean, just look at Social Security ... err, I mean just take a gander at Welfare ... uhmm, well, you’ve got to hand it to them on Affirmative Actio ... uh ...

nevermind.

Posted by on 06/01/09 at 03:53 PM from United States

In the case of Chrysler, the actual UAW doesn’t own the company shares, the UAW’s retirement fund does. It’s a seperate entity. Basically the UAW better hope the retirement fund is more diversified so not to allow their “golden years” be ruined for the fact, the Chrysler shares aren’t worth shit.

Posted by on 06/01/09 at 09:26 PM from United States

It would be nice if someone in the press would ask the president to name one large corporation, anywhere in the world, that recovered or improved after being nationalized.  Hmm they could take a look a the British auto industry for example.  I guess if a reporter did that, they’d be barred in the future from wrapping their lips around Obama’s pole and that seem to be the primary function of the press at the moment.

Posted by on 06/02/09 at 08:43 AM from United States

It would be nice if someone in the press would ask the president to name one large corporation, anywhere in the world, that recovered or improved after being nationalized.  Hmm they could take a look a the British auto industry for example.

I believe chavez has some experience in that regard. 

Whether or not this will be a success depends on what your long term goals are.  If you want a vibrant market that can compete well on the global stage against nations like China, all the while producing what the people want at a reasonable price, then I have to say no, this won’t be very successful.  If however, you want to provide a way to buy future elections, massive expand the size and scope of government and be able to proclaim yourself as a countries savior, the embodiment of all that is good and right, then this will be a smashing success.

Posted by Miguelito on 06/02/09 at 12:23 PM from United States

With “card check” becoming an issue in many states, I think it’s safe to say it’s coming.

There’s been this absolutely disgusting commercial getting radio play at least here in San Diego, trying to play off on veterans for pro union BS.  It talks about how veterans serve for all of us, then return and there are only non-union, minimum wage jobs for them.  It’s insulting in that it basically says anyone coming from the military is so stupid they can only get a minimum wage job without union support.  It then goes on to equate the pro-union open voting (or whatever it is) in re: to openly signing up for a union as the same as trusting a person to sign themselves up for military service in the first place.

Any time I hear it, it makes me want to punch the asshole that came up with the ad.

<< Back to main