America, You Asked For It!

Political News and Commentary from the Right

US Motors just around the corner

President Obama claims he doesn’t want to be in the auto business, but very soon he’ll be the de facto CEO of General US Motors.  GM made the offer late last month, but now Reuters is reporting the government is preparing to accept.

The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.

In other words, the Obama administration plans to purchase the bankrupt, defunct manufacturing Goliath before it really knows what it will do with it. The Reuters source wouldn’t specify a purchase price, which leads one to believe the American people will be infuriated if “the most transparent administration in history” discloses what it’s willing to pay to purchase the ruins of this former pillar of American industry.

You may recall President Bush approved a $13.4 billion emergency loan for GM last December. Sorry, but you loan money only when you expect it to be repaid. At the time, many of us recognized that GM had already fallen too far, that the American taxpayer was forfeiting funds we would never recover. Now, it’s apparent we were correct.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

Imagine that! 

Merriam-Webster’s Online Dictionary gives the following definition for Socialism.

Socialism–any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods

Anyone still denying where we’re headed with Obama’s economic policies?

May 20, 2009 Posted by | Bailout | , , , , , , | 2 Comments

$4 billion down the drain…

…as Chrysler files bankruptcy.

You might recall that in December, we were told bankruptcy of any one of the Big 3 auto companies would take down the entire economy. So then-President Bush shoved the bailouts of GM down the throats of Americans in spite of the fact Congress refused to do so legislatively. The US Treasury made a $4 billion loan to Chrysler along with $13 billion to GM.

Many of us predicted the loans couldn’t cure the auto companies’ ills, and we were slandered and maligned by left-leaning pundits and politicians of both parties. We recognized these loans would simply subsidize failed business models and encourage a continuation of the same failed strategies that put them in this position to begin with.

We said at the time, bankruptcy was the way to go. A court-ordered restructuring would have allowed Chrysler to negotiate concessions with its creditors and unions under the court’s protection and direction. Now, we’re $4 billion poorer and Chrysler’s right where we knew it was headed from the start.

It wasn’t ESP that allowed us to see these months into the future. No crystal ball, no special powers.

The administration, the unions, and management at Chrysler and GM like to blame the current economic crisis for the auto industry’s woes, but it goes so much deeper than that. If the credit crunch was truly the spark that started the fire that burned down the American auto industry, why are foreign companies with manufacturing facilities in the US not closing down too?

The problem with the American giants was smoldering long before the current economic crisis flared up. GM posted record sales in 2007, but also record losses that same year. Figures are harder to come by for Chrysler because it’s not a publicly traded company, but its former owner Daimler has released some figures that show its problems began long before the current downturn. The company lost $3 billion in 2007 and $1.6 billion in 2006. In May of last year, GM was burning cash at a rate of $1 billion a month. All of this before the economy crashed!

Now that our $4 billion have been squandered, the Obama administration is promising another $8 billion in aid in exchange for an 8% stake in the company. The UAW will take a 55% stake in exchange for money owed to its pension plan. So 63% of Chrysler shares will be owned by a partnership of the inefficient UAW and the inefficient US government. Is that likely to result in a streamlined, efficient, and profitable business model. I doubt it.

With the Obama administration preparing to take control of GM, we may need a new bureaucracy (the Department of US Auto Manufacturing?) in DC. Hell, UAW employees may well be integrated into the federal employees’ pension system before it’s all said and done.

This whole ordeal reminds me of a gambler whose lost everything and borrows to “double down” thinking surely he’s due to win. All too often though, the house takes what he’s borrowed as well.

May 2, 2009 Posted by | Socialism | , , , , , , | Leave a comment

Here it comes–USMC

No, not United States Marine Corps. United States Motors Corporation.

That’s right. GM, the former icon of American capitalism, could well be the first icon of American Socialism!

GM is offering over 50% of its stock–a controlling interest–to Uncle Sam to cover the ill-advised multi-billion dollar bailout initiated by Bush and exacerbated by Obama. After all the promises that government loans would save the company, the US government just bought itself a car company!

Let’s see, the same government that’s bankrupting Social Security, hemorrages cash through the USPS, forced FRE and FNM to back bad loans, and forecasts trillion dollar deficits as far as the eye can see is somehow going to bring this manufacturing giant back to profitability? Right!

Oh, but Uncle Sam will have plenty of help running this behemoth even deeper into the ground

The automaker also proposed that the United Auto Workers take GM stock for at least half the $20 billion the company owes to a union-run trust…Combined, the union and government would own 89 percent of the century-old automaker

Though we saw it coming, this is truly a sad, sad day in the USA USSA–United Socialist States of America.

April 28, 2009 Posted by | Socialism | , , , , , , | 2 Comments

GM sending bailout money to Korea


Digg!
#TCOT #diggcons

You would have thought General Motors CEO Rick Wagoner would have learned a little about the value of PR last November.  Flying to DC to beg for taxpayer money aboard a private jet almost cost him and the other little piggies their bailout cash.  Evidently he didn’t learn a thing.

In an announcement at Detroit’s North American International Auto Show today, Little Piggy Wagoner announced that GM would bypass an American supplier to spend our money in Korea.  The battery cells for GM’s long overdue Chevy Volt, will be purchased from LG Chem in Korea.  LG Chem and Massachussetts based A123 Systems/Continental were competing for the contract.  I wonder what Rep. Barney Frank (D-MA) thinks of the bailout now that GM is bypassing a Massachussets company and sending his constituents’ jobs overseas. 

Now, I’m a free market/free trade fan and if these were normal times I wouldn’t raise a fuss about this.  However, these aren’t normal times and last month’s auto company bailout cast off any semblance of GM operating under free market/free trade principles.

Recall, we were told the bailout of GM and Chrysler was essential to save American jobs and prevent an imminent collapse of our economy if these two went under.  In this video, Wagoner claims the bailout will “preserve many jobs, and support the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on our company and our industry.”  The following is a Bush quote from an article in the Dallas Morning News after the bailout was announced.  (emphasis added)

“By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time,” the president said. “And we will give American workers an opportunity to show the world once again that they can meet challenges with ingenuity and determination, and emerge stronger than before.”

This would be understandable if the A123 batteries just couldn’t cut it, but that’s not the case.  GM’s vice-chairman, Bob Lutz says the A123 product was “very good.” 

That’s not the worst part.

Lutz went on to blame the US government for GM’s choice of a foreign supplier, saying Detroit isn’t the problem, Washington is.  His rationale?  The US government hasn’t spent enough money on research to develop battery technology.  He goes on saying this “is part of the penalty we pay in the U.S. for not having a well-funded R&D budget.”

Talk about biting the hand that feeds you!  Can you believe the arrogance of these jerks running GM?

They come begging from us, telling everyone that will listen the US economy is dependent on them and we must fill their coffers to save our jobs, save our economy.  Then, they have the gall to send that money overseas and tell us its our fault!

GM management still doesn’t get it.  They’re dependent on us, the US taxpayers/consumers.  This latest PR boondoggle is going to use up whatever good will the American taxpayer has for this US icon.  I’ve bought nothing but GM vehicles for the past 15 years, and now I’ll probably never buy another.

Congress shouldn’t give the idiots running GM another dime.  The only hope for this American icon’s survival is bankruptcy.  The GM Board of Directors should be ousted for leaving incompetent Little Piggy Wagoner in charge and paying him millions of dollars to lose billions of the company’s money.  Wagoner and the rest of GM’s management should be replaced with a team that understands that without customers, there’s no chance of success.


Digg!

January 13, 2009 Posted by | Economy | , , , , , , , , , , , | 5 Comments

Little Piggies’ Activity 12-19-08

We now know Little Piggy Wagoner was in Detroit yesterday, where he gave a press conference at GM headquarters.  I’m not sure if he took questions from reporters because the only video I can find only shows him reading a prepared statement.

Wagoner thanked everyone at GM, his competitors, Little Piggy Gettelfinger, the President, Congress, etc. for their work in getting Bush to approve the taxpayer bailout “loan”.  He went on to say he is confident GM can meet the requirements laid out by the administration.  (I don’t know if he’s considering Gettelfinger’s threats to challenge the UAW’s part of the requirements.)  He also wants GM to lead the country’s recovery during the economic crisis.  (I don’t know how he can lead it when he’s part of what’s holding it down.)

I wasn’t impressed, but here’s the video so you can judge for yourself.

I still can’t find anything on the whereabouts of Little Piggy Nardelli, but he did send a lengthy letter to Chrysler employees yesterday.  Like I said, it’s lengthy so I won’t clutter this post with it.  You can read the text of the letter here.  It doesn’t do anything to make me feel like Bush’s investment in Socialism was money well spent.  He uses a lot of words to say Chrysler is the victim of a global recession and everyone’s been doing a great job and they should simply keep doing so.  Everything will be fine.

Right.

I haven’t found anything new on Gettelfinger today.  Last word I have on him is still that he plans on pressuring Obama to remove the “unfair conditions” Bush’s Socialist agreement makes on the proletariat.

Remember, at TCOT we’re looking for any info readers may find on the Three Little Piggies.  So if you see them out and about, snap a few pictures or video them (if you can do so without being intrusive) and let us know.

December 21, 2008 Posted by | Bailout | , , , , , , , , , , , , , , | 2 Comments

Senator Graham (R-SC) Statement on Automotive Bailout

Press Releasebush

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made this statement on President Bush’s plan to offer $17.4 billion to General Motors and Chrysler.

Graham said:

“I’m disappointed with President Bush’s decision in many respects. 

“I do not believe it’s appropriate to use the TARP (Troubled Asset Recovery Program) funds to bail out the automotive companies.  These funds were supposed to be used to stabilize financial institutions.  The TARP legislation would certainly not have passed it we had known it was going to be used for this purpose. 

“The plan announced by the President today will not lead to the necessary reforms which will make these companies profitable.  The only viable solution is for them to enter Chapter 11 reorganization. 

“There the companies would be able to renegotiate their labor and health costs to make them competitive in the global marketplace.  It would also allow the reorganization to be accomplished without political considerations.  Presidential or congressional restructuring will end up being a political exercise more so than a business exercise to make these companies profitable. 

“If we continue down this road, I expect this will be the first of many government payments to the Big 3 automotive companies.”

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December 19, 2008 Posted by | Bailout | , , , , , , , , , , | Leave a comment

3 Little Piggies Activity, 12-18-08

I haven’t had any luck pinning down two of the little piggies, GM CEO Rick Wagoner and Chrysler CEO Bob Nardelli, but it seems the third was hanging around Detroit today and did an interview with WXYZ Channel 7 in Detroit.

Here’s a report on Channel 7 that leads saying Gettelfinger has not been directly involved in talks with the White House.  You may have already heard that Bush hinted today that an “ordered bankruptcy” may be the best course of action.  Well, evidently that has Gettlefinger feeling a little nervous because today he began talking like the UAW knows it’s going to have to make concessions.  This is a dramatic reversal from a month ago when he emphatically stated there would be no more concessions from the union.

The UAW chief flatly states he’s not sure what an administration bailout will look like, but hopes it will look like the bill that passed the House of Representatives and subsequently stopped by conservative Republicans in the Senate.  He’s clearly nervous though because he goes on to basically say that he’ll take anything at this point, even if it’s just “a bridge to a bridge,” which means at least give him enough to tide him over until Obama takes office.

Clearly our concerted efforts are making an impact.  We finally have Bush considering bankruptcy for the auto companies and Gettelfinger considering concessions that may well lead to GM and Chrysler once again becoming competitive, eventually.  But now is not the time to pack it in.  Let’s continue to hold their feet to the fire.  Keep the pressure on by contacting the White House and letting them know that you’re against the bailout!

Gettelfingers Bridge to a Bridge

Gettelfinger's Bridge to a Bridge

December 19, 2008 Posted by | Bailout | , , , , , , , , , , , , | Leave a comment