America, You Asked For It!

Political News and Commentary from the Right

Congratulations American Taxpayer

You’re now the proud owner of yet another failed corporation!

The week between Christmas and New Year’s Day is usually a week when Americans slow down and take some time off.  Kids are out of school, many companies are shut down or slowed down, and quite a few families are on vacation.  Congress is even on vacation, minimizing the damage they typically inflict on the wallet of the American taxpayer.

This year the Obama administration took advantage of the holiday distractions to seize control of GMAC, the financing arm of General Government Motors Corp.  This third bailout of the company that writes loans for Government Motors and Chrysler Corp. vehicles resulted in the US government increasing its ownership share of the company to 56.3%.  This, of course, once more gives the Obama administration controlling interest in what had been a privately owned company.

When the Bush administration signed off on the first $6 billion GMAC received from the US taxpayer, officials in the former President’s Treasury Department considered it “part of a broader program to assist the domestic automotive industry in becoming financially viable.”  But in May 2009, the Obama administration handed over another $7 billion in taxpayer wages to the beleaguered finance arm of what was soon to become the first US government owned auto maker.

The second bailout netted the Obama Treasury Department a 35.8% stake in the corporation, and an agreement GMAC would take on the additional liability of financing customers of Chrysler Corp.  This followed almost immediately after the President took an 8% stake in Chrysler for the US taxpayer and handed over a 55% controlling interest to the unions.

Much of the initial money will go to help GMAC shoulder new lending responsibilities for Chrysler dealers and consumers after Chrysler’s government-orchestrated Chapter 11 bankruptcy filing last month. As part of the Chrysler reorganization, the government in effect dissolved Chrysler Financial and handed its business to GMAC, creating one big auto-financing arm that would service both companies.–WSJ, May 21, 2009

President Obama had already invested billions in Chrysler and plans to secure US government ownership of General Motors were in the works. Bailing out GMAC became an easy way to launder even more bailout cash to the President’s experiment with union and government ownership of former US industrial icons.  As with other stones forming the foundation of Obama’s economic policies, funneling money to the automakers through loans to their customers didn’t prove too solid.

But that’s not something the President is willing to admit yet–that his policies for stimulating the economy have failed.  No, his newest plan is to throw good money after bad and pile another $3.8 billion of YOUR money onto the still smoldering pile of waste known as GMAC.

The first $6 billion wasn’t enough to rescue the financial firm and its now-nationalized benefactors of its bad loans.  The next $7 billion couldn’t save it, but did put Obama in control of 35.8% of the company.  The second bailout also allowed the President to twist the arm of the company and force it to agree to loan more money to customers of GM, which Obama would soon nationalize, and Chrysler, which the President had recently handed over to his union backers.

Though neither of these bailouts accomplished their (supposed) goal, our omnipotent, omniscient oracle Obama, in his infinite wisdom, has determined the solution to the problem is to pour more of your hard-earned tax dollars into the bankrupt corporation,  $3.8 billion more.  But don’t worry!  The President who brought us $1.4 trillion deficits and a $12 trillion national debt has traded our greenbacks for a controlling interest in the company.

That’s right.  We now own 56.3% of a company that can’t attract private capital because it can’t manage to stem the flow of red ink from its books.  A company that cannot, on its own merits, attract private capital.  President Obama is forcing all American taxpayers to borrow money to purchase a portfolio of profitless companies controlled by politicians and bureaucrats.

So congratulations taxpayers!  Like it or not, you own yet another failed corporation run by Chairman Obama.

January 1, 2010 Posted by | Bailout, Socialism | , , , , , , , , | 5 Comments

Witness to inefficiency of 3 Little Piggies slams bailouts


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Thanks to my father for alerting me to the existence of this letter from Gregory Knox, President of Knox Machinery, Inc. to Troy Clarke, President of General Motors.  Mr. Knox claims to have observed first-hand what those of us who’ve been against the bailout of the auto industry from the start.  He also makes great points (that many of us have been making) against ALL the bailouts.

Snopes has already verified the legitimacy of the letter.

From Gregory Knox, President Knox Machinery, Inc., Franklin, Ohio 45005

In response to your request to call legislators and ask for a bailout for the United States automakers please consider the following, and please also pass this onto Troy Clark, the president of General Motors North America for me. You are both infected with the same entitlement mentality that has bred like cancerous germs in UAW halls for the last countless decades, and whose plague is now sweeping the nation, awaiting our new “messiah” to wave his magical wand and make all our problems go away, while at the same time allowing our once great nation to keep “living the dream”.

The dream is over!

The dream that we can ignore the consumer for years while management myopically focuses on its personal rewards packages at the same time that our factories have been filled with the world¢s most overpaid, arrogant, ignorant and laziest entitlement minded “laborers” without paying the price for these atrocities. and that still the masses will line up to buy our products.

Don’t tell me I’m wrong. Don’t accuse me of not knowing of what I speak.. I have called on Ford, GM, Chrysler, TRW, Delphi, Kelsey Hayes, American Axle and countless other automotive OEM’s and Tier ones for 3 decades now throughout the Midwest and what I’ve seen over the years in these union shops can only be described as disgusting.

Mr. Clark, the president of General Motors, states: There is widespread sentiment in this country, our government and especially in the media that the current crisis is completely the result of bad management, it is not.

You’re right – it’s not JUST management. How about the electricians who walk around the plants like lords in feudal times, making people wait on them for countless hours while they drag ass so they can come in on the weekend and make double and triple time for a job they easily could have done within their normal 40 hour week.

How about the line workers who threaten newbies with all kinds of scare tactics for putting out too many parts on a shift. and for being too productive (mustn’t expose the lazy bums who have been getting overpaid for decades for their horrific underproduction, must we?) Do you really not know about this stuff?!?

How about this great sentiment abridged from Mr. Clarke’s sad plea: over the last few years .we have closed the quality and efficiency gaps with our competitors.

What the hell has Detroit been doing for the last 40 years? Did we really JUST wake up to the gaps in quality and efficiency between us and them?

The K car vs. the Accord? The Pinto vs. the Civic? Do I need to go on?

We are living through the inevitable outcome of the actions of the United States auto industry for decades. Time to pay for your sins, Detroit.

I attended an economic summit last week where a brilliant economist, Alan Beaulieu surprised the crowd when he said he would not have given the banks a penny of “bailout money”. Yes, he said, this would cause short term problems, but despite what people like George Bush and Troy Clark would have us believe, the sun would in fact rise the next day, and something else would happen. where there had been greedy and sloppy banks new efficient ones would pop up. that is how a free market system works. It does work, if we would let it work.

But for some reason we are now deciding that the rest of the world is right and that capitalism doesn’t work – that we need the government to step in and “save us”. Save us, hell – we’re nationalizing. and unfortunately too many of this once fine nation’s citizens don’t even have a clue that this is what’s really happening. But they sure can tell you the stats on their favorite sports teams. Yeah – THAT’S important.

Does it occur to ANYONE that the “competition” has been producing vehicles, EXTREMELY PROFITABLY, for decades now in this country?…

How can that be? Let’s see.

Fuel efficient. Listening to customers. Investing in the proper tooling and automation for the long haul. Not being too complacent or arrogant to listen to Dr W Edwards Deming four decades ago. Ever increased productivity through quality, lean and six sigma plans. Treating vendors like strategic partners, rather than like “the enemy”. Efficient front and back offices. Non union environment.

Again, I could go on and on, but I really wouldn’t be telling anyone anything they really don’t already know in their hearts.

I have six children, so I am not unfamiliar with the concept of wanting someone to bail you out of a mess that you have gotten yourself into – my children do this on a weekly, if not daily basis, as I did at their age. I do for them what my parents did for me (one of their greatest gifts, by the way) – I make them stand on their own two feet and accept the co nsequences of their actions and work them through. Radical concept, huh?

Am I there for them in the wings? Of course – but only until such time as they need to be fully on their own as adults. I don’t want to over simplify a complex situation, but there certainly are unmistakable parallels here between the proper role of parenting and government. Detroit and the United States need to pay for their sins.

Bad news people – it’s coming whether we like it or not. The newly elected Messiah really DOESN’T have a magic wand big enough to “make it all go away”. I laughed as I heard Obama “reeling it back in” almost immediately after the vote count was tallied.” We might not do it in a year or in four.” where was that kind of talk when he was RUNNING for the office? Stop trying to put off the inevitable.

That house in Florida really isn’t worth $750,000.

People who jump across a border really don’t deserve free health care benefits.

That job driving that forklift for the big 3 really isn’t worth $85,000 a year. We really shouldn’t allow Wal-Mart to stock their shelves with products acquired from a country that unfairly manipulates their currency and has the most atrocious human rights infractions on the face of the globe.

That couple whose combined income is less than $50,000 really shouldn’t be living in that $485,000 home.

Let the market correct itself people – it will. Yes it will be painful, but it’s gonna be painful either way. The bright side of my proposal is that on the other side of it is a nation that appreciates what it has, and doesn’t live beyond its means. and gets back to basics. and redevelops=2 0the work ethic that made it the greatest nation in the history of the world.. and probably turns back to God.

Sorry – don’t cut my head off, I’m just the messenger sharing with you the “bad news.”

Gregory J Knox
President Knox Machinery, Inc.
Franklin, Ohio 45005

Bravo, Mr. Knox!


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January 4, 2009 Posted by | Bailout | , , , , , , , , , , , , | 1 Comment