Right Thinking From The Left Coast
Reality is merely an illusion, albeit a very persistent one. - Albert Einstein

GM thanks you!

In Case you missed it on TV, i have posted GM thanks to YOU, for being so kind as to bail them out.

Now i have to say, the quality of the video is nice, choice of music and pop culture references, make it seem like a well polished and moving piece.
However, i think it needs to be pointed out that GM has NOT paid back the “loan” the FED GOV gave them.

What gets me is that now that the government can say, “SEE here is proof that government knows better, and should be involved in every aspect of corporate matters.”
even if it is not the truth....... Where does it end?

Posted by HARLEY on 11/27/10 at 12:54 PM (Discuss this in the forums)


Posted by on 11/27/10 at 03:28 PM from Germany

Of course, the real winners of GM stock offering was the UAW union, which made a sweet $3.4B profit…

Posted by Hal_10000 on 11/27/10 at 07:51 PM from United States

ANd the real losers were investors who were cleaned out of their old GM stock.  All the old stock-holders were completely fucked over and the bondholders are being told that maybe they can get $0.30 on the dollar.

Posted by Miguelito on 11/28/10 at 12:39 AM from United States

That came on a few times during collge football or something while at my parents house for the family gatherings… Every family member was disgusted by it.  Even my grandfather who’s a lifetime, diehard liberal democrat.

Posted by on 11/28/10 at 04:19 AM from United States

All the old stock-holders were completely fucked over and the bondholders are being told that maybe they can get $0.30 on the dollar.

The stock owners are supposed to get fucked when a company tanks.  So, of course, are the union workers.  The bondholders should have been first in line for an value left in the company.  That is part of the deal and why people invest in corporate bonds. 

When a company I worked for went tits up around 2000, I, and every other stockholder lost 100% of our investment.  Empolyee obligations were flushed down the toilet, too.  The whole company was handed over to its bondholders (they took it in the shorts, too, but they got some value).

Posted by on 11/28/10 at 11:23 AM from United States

I have a hard time being placing much of the blame on GM for these Obama-esque or Democrat-esque accounting tactics. If something had been done with the bailout money that the Democrat overlords in Congress or the White House didn’t like, I think we’d be hearing about it by now.

Besides that, every couple of years when the government changes all of the rules on the auto manufacturers, it costs an ass load of money. As far as I know they cannot make up much of this loss through personnel/payroll in the Big Union states because even personnel/payroll is government controlled there, and it’s really only a matter of time before the government and the unions bankrupt all of them again, including Ford.

Of course, the auto manufacturers also shoot themselves in the dick enough to be problematic on their own right. If they would take a hint from the way the Japanese companies operate in the US, they would move away from the union-owned states in the North to the Right-to-Work states in the South, and stay the fuck out of Canada. If they did a little advertising about how they were helping poor impoverished black people in the South by building all the new plants there the unions couldn’t say much about it lest they be exposed as the greedy bastards they are and racists to boot. This might buy a little time before the US auto manufacturers price themselves out of business in the US.

Posted by on 11/28/10 at 08:39 PM from United States

drunkkus - GM already had non-union plants in right to work states. that’s where Saturns were built.But when they were given the choice between spending their own money or spending ‘We the People’ money they shut down the entire Saturn brand.

Posted by on 11/28/10 at 09:55 PM from United States

Saturn was never really non-union but had a “special” UAW contract, and there is disagreement about whether it was ever actually profitable. However, without doubt, Saturn was completely UAW unionized and completely unprofitable by the time it was shut down. As far as I know, Saturn was victim to the same bullshit bankrupting factors that GM as a whole was, and it was dictation by the Obama administration that led to GM’s brand downsizing in the first place. Of course, we can’t have anyone in the auto industry getting any ideas about “special” labor contracts to save money again.

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