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Obama Will Send GM Into Bankruptcy

From an elated Washington Post:

U.S. to Steer GM Toward Bankruptcy

By David Cho, Peter Whoriskey and Kendra Marr
Friday, May 22, 2009

The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said.

The move comes as the administration prepares to lift the nation’s other faltering car company, Chrysler, from bankruptcy protection as soon as next week, industry sources said.

The shifts into and out of bankruptcy are landmarks in the Obama administration’s attempt to broker a historic restructuring of the American auto industry in the space of months.

The legal tactic is viewed by some as the best means of reviving the companies. But the speed of the government-led transformation has triggered complaints that the rights of investors and dealers are being trampled. Meanwhile, fears that a bankruptcy could lead to cascading business failures are spreading throughout GM’s vast chain of suppliers.

Under the GM draft bankruptcy plan, the company would receive just short of $30 billion in additional federal loans, a source said…

The government previously indicated that it planned to take at least 50 percent of the restructured company, and likely would take the right to name members to its board of directors, as it has at Chrysler, where the government will control four of nine seats.

The United Auto Workers retiree health fund is set to own as much as 39 percent of the restructured GM, in exchange for giving up its claim to at least $10 billion that the company owes it

[The administration] is drafting the paperwork for a $4.7 billion loan to sustain Chrysler after it emerges from bankruptcy

What a laugh:

But the speed of the government-led transformation has triggered complaints that the rights of investors and dealers are being trampled.

It isn’t the “speed” of the transformation that is the problem. It is the fact that investors and dealers are being cheated – at any speed.

But apart from the simply thievery involved, what was the reasoning behind not letting General Motors and Chrysler seek Chapter 11 protection in the first place?

Why did Obama have to spend untold billions of taxpayer dollar on what was obviously a doomed (non) plan?

Did Mr. Obama waste those billions of taxpayer dollars just so that he could protect his union constituents and re-make the two companies in his own image?

Of course he did.

This article was posted by Steve on Friday, May 22nd, 2009. Comments are currently closed.

16 Responses to “Obama Will Send GM Into Bankruptcy”

  1. proreason says:

    “Did Mr. Obama waste those billions of taxpayer dollars ”

    In his mind, no.

    Every dollar taken from the taxpayer is one less dollar the taxpayer has to resist the all-knowing government, particularly when the dollar is owned by a white person who might use it to expand his influence via a business, church, or charitable organization.

    In other words, taxes are a good thing, even if the money is just flushed down the toilet.

    After all, everybody knows that you can’t really enslave a person until you break him.

    • pdsand says:

      Wasn’t it no less than the conscience of the Senate, Mr. Edward Kennedy who said this same thing back in 1994? White people in America must pay high taxes to the federal government to fund welfare and social spending even if every single dollar gets wasted, just to make up for the sins of the past.

  2. Rmy-mac-was-here says:

    I just googled searched it. At one time, UAW had over 6 BILLION in the health care fund (just that one fund alone). Sorry folks but this is why I can’t stand unions. Maybe 80 years ago they were NEEDED, but now they are just corrupt. How much training do you really need to work on an assembly line. Its not like you are going to run into something youve never dealt with. You go on strike to get a pay raise from in the over twenty dollars and hour wage bracket? Dang it MY STATE’S annual budget is much less than their Health Fund!

  3. MinnesotaRush says:

    “.. historic restructuring of the American auto industry ..”

    MSM, Dem/Liberal wordspeak for the unexperienced, foolhardy, illegal, invasive, and fatal destruction of American industry and enterprise.

    I have to admit, I’m in stunned amazement that this is being accomplished with so little push back (of any sort).

    • proreason says:

      “I’m in stunned amazement that this is being accomplished with so little push back ”

      It’s the payoff from the decades they invested in programming the media and the educators.

      Conservatives have always operated under the assumption that effective policies were enough to stay in power. We were wrong.

      The Fascists and the Communists were effectively using propaganda 80 years ago. The masterstroke was when radicals decided to take over the information delivery channels at the cortex level of our culture.

      Now the puppet propagandists for the criminal oligarchy don’t even know they are mouthing a script. They simply repeat what has been implanted in their brains by people who also aren’t even aware that they are tools themselves. It’s much deeper than their consciuousness.

      It’s a lot like the functioning of your body. You think you are in total control, but 98% of what you do is biological. Your muscles need fuel, you get hungry. You see something threatening, your body gets ready to fight or flee before your mind knows the threat exists. Without your conscious mind even being aware of it, the cortex is operating your heart and lungs, etc.

      And without the msm even knowing it, they repeat the messages they have been taught to say through generations of revolutionaries hammering the doctrine into the brains of the fools who preceded THEM.

      They aren’t going to be defeated through logic. It’s beyond logic.

      It will only end because of an undeniable calamity or violence.

  4. Reality Bytes says:

    “Object in Mirror Appeared Bigger Before Obama”

  5. Petronius says:

    Pro: “They simply repeat what has been implanted in their brains by people who also aren’t even aware that they are tools themselves. It’s much deeper than their consciousness.”

    I always enjoy your posts, Pro, and you’re seldom better than when nailing this topic. In 1946, George Orwell wrote an essay called “Politics and the English Language” in which he described political writing and speeches that mechanically repeat familiar phrases. Sometimes, he says, you have a feeling that you are not watching a live human being but a robot or dummy that makes appropriate noises that issue from its larynx but the brain is not engaged. Orwell talks about pretentious diction that is used to dress up a statement and give it an air of scientific impartiality or intellectual authority (words like effective, basic, phenomenon, element, objective, and foreign words and phrases, especially words rooted in Latin or Greek), about adjectives that are employed to dignify sordid political maneuvers (words such as inevitable, historic, epoch-making, epic, crisis, etc.), about meaningless words (e.g., democracy, fascism, socialism, freedom, justice, equality, progressive, reactionary, etc.), about euphemisms, question-begging, and cloudy vagueness.

    Given time and constant repetition, these ready-made phrases, slogans, and words become embedded in the popular subconscious. The result, Orwell says, is that language, including mass media and education in particular, can be used to reinforce ideology, and ideology can be used to reinforce power. A side-effect is that the language becomes degraded and the culture is debased. Presently the need arises for privileged interpreters (like Nerobama) who can “explain” to us aspects of our Constitution, morality, or culture that have become buried beneath the layers of muck, the way that critics explain modern art or drama.

    In recent years we have seen a lot of this jargon and euphemisms used in connection with the debate over immigration––e.g., “undocumented workers,” “melting pot,” “nation of immigrants,” “comprehensive reform,” “doing the jobs Americans won’t do,” ad nausea. But the phrase that really gets my goat is “giving back to the community.” Hardly a day goes by that I do not hear some idiot mouthing this meaningless gibberish. I have a visceral reaction every time I hear it. Just who is this “community”? And why do I owe them anything?

    Maybe a Liberal trust-fund baby can explain this one to me? Because like most conservatives, I had to work hard for every dime, fighting the blood sucking vampires at the IRS every step of the way, and swimming upstream against affirmative action, too. When our public schools became the nightmare-from-hell and we had to move our daughter into private school––not a moment too soon––the community did not come around and offer to pick up the tuition bill. When the paramedics robbed my dying father, the community didn’t come around to return my father’s money. But I digress. Anyway, Orwell’s point is that language corrupts thought, and it takes an effort of will to break out of this muck that surrounds us, and that kind of will is something that most people simply don’t possess.

    • proreason says:

      “The result, Orwell says, is that language, including mass media and education in particular, can be used to reinforce ideology, and ideology can be used to reinforce power.”

      Absolutely Petro. Language manipulation is a big big part of their strategy. That and shameless lying are the only things The Moron is good at.

      For the most part normal people aren’t event aware of the level of manipulation we are subjected to through the language. It catches our attention when it is laughably ridiculous, like “man caused disaster”, or when the conservative phrase is so much more powerful that it gives the libwits hives, like “pro life”.

      The deeper theme, though, is that it’s now clear that the revolutionaries dedicate their lives to this stuff. This has been a revelation to me. Alinsky wasn’t a part-time rabble rouser. Obamy has been a committed blood-sucker and thug since he was in his teens. They are thousands of people like them, funded by demagogues like Soros and foreign countries, working 48×7 to reverse the freedoms that their hynotized brains have been programmed to hate. And this has been going on for decades.

      Once we take this country back and lock the criminals up who live through it, we have to start taking the preservation of liberty more seriously and create a framework and political structures to keep the leeches in their swamps.

    • Rusty Shackleford says:

      Petronius,

      Very, very well stated. I agree 100%.

  6. mybrotherkeeper says:

    Why did Bush play Obama’s stooge? I e-mailed the White House, practically begging Bush to save his legacy and not bail out the US car companies. Now the common people have to pay for it, while he hopes to remain insulated. Way to go!
    I am so frustrated, ‘cuz I knew it was all a ploy to save the UAW at our expense, guys who never cared a whit about George. But did he listen?

    • proreason says:

      I think Bush was exhausted from 8 years of fighting on two fronts…Al Queda, and more insidiously, the domestic terrosists in the Democratic party.

      When they manufactured the “crisis” in September 2008, he didn’t have the will to fight any more.

      I’m not making an excuse for him, because he shouldn’t have quit, but just explaining why I think it happened.

      A human can only do so much, particularly when he is under attack every minute of every day for 8 years.

  7. BigOil says:

    How can this be characterized by anything other than a money laundering scheme? 15 billion dollars of TARP money, supposedly money to protect failing banks, is passed on to GM and Chrysler in the form of a loan. Said loan is then converted into an ownership stake in the company for the UAW. Next, the loan is tranformed into a gift by a President with no constitutional authority to do so. The final act – or spin cycle of the laundering scheme – is the UAW selling its stake for cash direct depositted into UAW members retirement fund.

    While the rest of us have lost 40-50% of our 401K’s, UAW has parlayed their 4.9 million dollar investment in Obama into at least 15 billion dollars. A 3000% return on their investment – which should make even Hillary envious.

    • proreason says:

      Good point BigOil. But is it money laundering or payola?

    • BigOil says:

      Ultimately it is payola for the massive campaign contribution. I believe laundering of the TARP money in the form of a pseudo loan was the process devised by the Obama administration to cover their tracks. If a check had been cut directly to the UAW, even the msm sycophants may have been forced to question it.

  8. proreason says:

    In depth analysis of Obama’s new CAFE standards to demolish individual transportation in this country:

    http://keithhennessey.com/2009/05/19/understanding-the-presidents-cafe-announcement/

    Money quote:

    “The heads of several auto manufacturing firms stood with the President today and smiled. They lost this fight. They pushed incredibly hard during the 2007 legislative battle, and during the subsequent regulatory process, for a fuel economy standard that rose about 2% per year. They dug in hard against a growth rate greater than 3% per year, and told us that 4% per year would destroy them. …. The Obama rule averages about 5.8% per year.”

    To summarize, the people who know the automobile business said that encreasing mileage standards 4% would ruin them.

    Obamy dictated 5.7%.

    Got it?

    • Rusty Shackleford says:

      Another thought: What Blammo isn’t thinking about (yet?) is that Americans will simply vote with their money, again, and buy foreign. This, of course, prior to the heavy import taxes on foreign cars when the idiot realizes that’s what’s happening.


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