General Motors, an American Institution went bust today,filing for Chapter 11 bankruptcy this morning.
As with Chrysler, the UAW made out like a bandit while the bondholders, including a number of retirees, took a total hosing.The entire bankruptcy and the GM restructuring plan are the product of a secretive, unaccountable Obama Administration task force.
The government now owns 60% of GM in exchange for an additional $30 billion in addition to the $20 billion GM was already given, essentially to keep the UAW afloat. The Canadian government kicked in for an additional 12.5% while the UAW will walk away with 17.5%. The remaining 10% will be owned by existing bondholders.
This is not going to be painless. Just closing of hundreds of GM and Chrysler dealerships (run by GOP donors, no doubt) is expected to cost more than 100,000 jobs.
The biggest hosing, of course, will be taken by the American tax payer and consumer. We'll be footing the bill in more ways than one.
We will see small, boxy little go-karts produced out of GM and Chrysler, stuff Americans would never normally buy but will be forced to..because there's no going to be any choice. That's what Obama's 39 MPG CAFE standards are all about.They'll do it not by making existing cars more fuel efficient but by simply eliminating SUVs and larger, more comfortable vehicles. With $5.00 per gallon gas thanks to cap and trade, no one's going to be able to afford to run a decent size vehicle anyway except the wealthy elites.
Obama will run GM based on politics, and that means the UAW and the various environmentalist groups.
GM will never be profitable again, simply because no executive is going to risk taking on the Unions and risking his job.
Once GM runs through this additional $30 billion ( and believe me, they will)they'll simply come to the taxpayers for more. And Obama and the Democrats in Congress will give it to them, because it's about votes and power, not economic recovery.
Don't like it? Sorry, folks. Those Obama Tickets you bought in November are good until at least 2010..and maybe even longer.
are good until at least 2010..and maybe even longer.oh my.
ReplyDeleteis that a note of pessimism i detect. creeping into ff comment. could it be that ff is starting to sound like LL.
oh my.
what's next?
could ff start sounding as PISSED OFF as LL?
oh my.
At $5.00 per gallon and cars Aemricans don't really want, Obama is unlikely to last until 2010 befire he gets impeached. Even if he does manage to hand on, he won't win reelection with those numbers. The bigger and more important question is can America survive Obama? His economic policies coupled with the bone headed foreign policy decisions he has made to date make even the short range survival of America problematic. I pray God has mercy on us.
ReplyDeleteb.
ReplyDeletewith all due respect.
have you not been reading what ff has been telling us?
the UAW as a voting block belongs to hussein.
they and their electorial votes are his.
period.
no discussion.
they will vote for who he says in 2010 as well.
you want to argue with the union stewards......make sure your life insurance is current.
oh, and there will be no media coverage.
they have their agenda as well.
that 31 year old punk that hussein appointed to dismantle gm has as much experience in the private sector as hussein does. it's just that he worked for george soros longer than hussein has, that's all.
Louie,
ReplyDeleteUnions make up only a small part of the electorate. I don't think they are or will be enough of the electorate to determine the election by themselves. Maybe Mr. Obama plans to stay in power by using the military and the police against the citizens. This has worked in other plances around the world. Can it work here? I don't think so but I don't know.
Right now this is the "Bush economy." All the voters know that Obama inherited a mess. As such, he is getting some leeway right now. At some point, this becomes the "Obama economy." I think this will happen some time around mid 2010. If the economy has not improved markedly by this time, Obama and Democrats are in serious trouble in the next election cycle. Of course if the eocnomy improves then his allies cruise to reelection.
If not, then he probably is looking at huge Republican majoriies after 2010 and will likely face impeachment, as his economic policies are unlikely to work and will probably only make things worse. Time will tell. The point being that while the unions are certainly powerful they are but one small part of the electorate.
Bottom line two things will likely determine whether Obama and his Democrats hold power. These are the economy and national security. Right now the economy trumps among the voters. Unless it improves markedly the Democrats will face serious challenges in the next election cycle.