Double The Record Bailout, Double The Criminality

Franklin Raines, Barney Frank, Maxine Waters, and all the rest of these thieving Democrat criminals should be made to forfeit of every last penny’s worth of their personal property and then be thrown in Federal prison for the rest of their lives. They’ve done immeasurable damage to the U.S. economy, the U.S. taxpayers, and everyone who own a house or a retirement account. And it’s not over yet and it’s only going to get worse.

Fannie and Freddie support may reach $363 billion by 2013

Mortgage finance giants Fannie Mae and Freddie Mac could need as much as $363 billion in government payments by 2013, regulators said Thursday.

The Treasury Department has pumped $148 billion into the agencies since the government took them over in 2008.

The new projections by the Federal Housing Finance Agency, based on a series of assumptions about home prices, indicate that Fannie and Freddie will require an additional $73 billion to $215 billion before 2013.

Read the projections:

Projections of the Enterprises’ Financial Performance

See also:

Fannie, Freddie May Draw $363 Billion, FHFA Says
Fannie/Freddie Bailout Could Total $363 Billion
Fannie, Freddie May Need $215 Billion More in Aid
Fannie & Freddie ‘could cost US $363bn’
Fannie Mae, Freddie Mac bailouts could hit $363 billion, report says
Fannie, Freddie bailout could hit $363 billion
US taxpayers warned Fannie Mae and Freddie Mac may need $363bn bailouts
Fannie Mae and Freddie Mac deep in the hole
Fannie Mae, Freddie Mac Bailout Costs Could Soar
Fannie and Freddie May Need Infusion
Fannie, Freddie Rise Despite Giant Potential Tab With U.S Treasury

Yes folks, the Fannie and Freddie bailout is going to end up costing more than the AIG and Auto bailouts combined, by an order of magnitude, and the U.S. taxpayers are going to get stuck with the bill.

/why do the known criminals who obviously caused this 1/3 of a trillion dollar mess remain unpunished?

We Spent More Than $50 Billion And All We Got Was This Lousy Perfume

Unbelievable.

New GM to launch fragrance line

It’s not the smell of the interior of a new luxury model, the whiff of gasoline or even the aroma of burning rubber.

It’s much more. It’s the luminous fresh scent from grapefruit and camomile and a mix of geranium, tarragon and cinnamon – plus sweet spice and incense.

Think of “Cadillac, the new fragrance for men.”

Sputtering General Motors Co., just out of a quick drive through bankruptcy court, will soon be using its iconic Cadillac brand to sell a line of fragrance for men.

Beauty Contact Inc., a Dubai-based cosmetic company and holder of the fragrance licence, said yesterday it will launch the Cadillac line in stores this fall to mark the brand’s 100th anniversary.

“Cadillac, the new fragrance for men is part of the recent Cadillac renaissance: Hot new products and redesigns that capture the mantra of life, liberty and the pursuit,” said Alwyn Stephen, a Beauty Contact director.

“Our fragrance is a relevant extension of the Cadillac lifestyle.”

The line includes a spray, aftershave lotion, deodorant stick, hair and body wash. Some products will come in translucent glass bottles with sleek metal caps. The retail price for a 100 millilitre bottle of the eau de toilette fragrance will be $73.

“The design pays tribute to the opulence and extravagance of past eras, as well as the luxury and ease of today,” the firm added.

But marketing expert Alan Middleton, a York University professor, said it’s a bad example of brand extension and indicative of a troubled company. In the past, GM has licensed fragrances for Hummer, Chevrolet and Corvette.

“Anybody who knows anything much about branding would know this is about as bad an idea as when Roots tried to brand an airline,” Middleton said.

“Neither Porsche nor BMW nor any other transportation brand that has tried this silliness has been very successful.”

This is what we paid tens of billions of dollars for? This is how Obama runs a car company? They can’t even make the damn perfume in the United States! Oh yeah, remember Chrysler, the car company that Fiat bought and that the American taxpayer owns a chunk of?

Fiat 2nd-Quarter Net Loss EU168 Million; Analyst Est EU158.4 Mln

Fiat SpA, the Italian carmaker that took control of Chrysler LLC, reported a net loss of 168 million euros in the three months ended June 30, compared with net income of 604 million euros a year earlier, it said in a statement today.

That was higher than the average estimate of five analysts compiled by Bloomberg, which showed a 158.4 million-euro loss.

See also:
Fiat swings to loss as demand suffers
Fiat Reports Second Consecutive Loss on Truck Sales
Fiat CEO Says Chrysler Listing Will Take Time, Maybe 2.5 Yrs
Fiat’s Issue Is Debt, Not Profit

All in all, I think our ridiculously large investment in bailing out Chrysler and GM is being managed quite well and will turn out to be the best money taxpayers have ever spent, don’t you?

/it probably won’t even end up costing us much more than $100 billion or so, give or a take a few billion here or a few billion there

Not So Fast There Obama

Supreme Court Delays Chrysler’s Swift Sale

The U.S. Supreme Court yesterday held up the sale of Chrysler’s assets to Italian automaker Fiat, at least temporarily interrupting the Obama administration’s massive and speedy restructuring of the U.S. auto industry.

Justice Ruth Bader Ginsburg’s 53-word order did not hint at what she thought of an appeal led by a group of Indiana pension and construction funds, which stand to see their investments in Chrysler reduced with no say in the process. Instead, she instructed simply that the transaction is “stayed pending further notice.”

The decision buys the court time to consider objections filed over the weekend, and it comes as the clock is ticking. Fiat can back out of the deal if it is not finalized by Monday, and the government has warned that the only alternative would be to force the nation’s third-largest automaker into liquidation, throwing the industry in turmoil and leaving tens of thousands of people without jobs.

The stakes may be higher for the Obama administration: If the court backs some of the claims, it could disrupt plans to rescue General Motors and weaken the government’s hand in stabilizing the troubled economy.

“Every day that Chrysler remains in bankruptcy without consummating the sale threatens to postpone the resumption of production even further and to prolong the period of $100-million-per-day losses” financed by taxpayers, Elena Kagan, the U.S. solicitor general, said in a 26-page filing with the high court.

A host of business and conservative groups applauded Ginsburg for standing up to what one called the Obama administration steamroller. And Congress is beginning to stir. Legislation is being drafted to reverse decisions by Chrysler and GM to close thousands of dealerships. The Senate Banking Committee, meanwhile, is preparing to hold a hearing this week on the government’s role in the auto rescue.

The significance of the court’s action remains to be seen. The language Ginsburg used in her order usually signals a delay of short duration.

There could be several explanations, not the least of which is that the justices may not have had time to fully consider the request. Court filings from those opposing the deal began arriving over the weekend and into Sunday. The government’s response in opposition did not arrive at the court until shortly before justices convened yesterday at 10 a.m.

The petitions are directed at Ginsburg because she is the justice responsible for the circuit that includes New York, where the suit was filed. She may decide the stay issue on her own or refer the question to the full court. If it’s the latter, that could explain the need for more time. The full court would have to vote on whether to hear the merits of the case.

See also:
High court blocks Chrysler sale to Fiat
Supreme Court delays Chrysler sale
Chrysler sale on hold, but for how long?
Supreme Court asked to block Chrysler sale to Fiat
Supreme Court Asked to Block Chrysler Sale to Fiat

Of course Ginsburg’s stay doesn’t mean that the Supreme Court will take up the case, it only means that she wanted more time to decide. However, the Supreme Court should take on this case and take a good long look at the legality of the Chrysler/Fiat deal that Obama’s Car Task Force is trying to ram down the taxpayers’ throats. What’s the rush, are they trying to hide something?

The government’s first argument as to why this shotgun wedding must be rushed through is that the deal with Fiat is necessary to stop Chrysler’s “$100-million-per-day losses”. Well, gee, let me get this straight, Fiat gets Chrysler’s assets and suddenly Chrysler miraculously stops losing money. How does that work, exactly, magic?

The government’s other equally bogus argument for steamrolling the Chrysler bondholders is that “the clock is ticking, Fiat can back out of the deal if it is not finalized by Monday, and the government has warned that the only alternative would be to force the nation’s third-largest automaker into liquidation, throwing the industry in turmoil and leaving tens of thousands of people without jobs.”

Really, are they sure Fiat will back out? That’s not what the Fiat CEO said earlier today.

Fiat Will ‘Never’ Walk Away From Chrysler, CEO Says (Update1)

Fiat SpA will “never” walk away from its deal with Chrysler LLC, Fiat Chief Executive Officer Sergio Marchionne said in an interview.

“We should just be patient and let the system work,” Marchionne said by telephone today moments after Justice Ruth Bader Ginsburg ordered a delay of Chrysler’s planned sale to the Italian carmaker while the U.S. Supreme Court considers a request for a longer postponement that might scuttle the deal.

A federal appeals court in New York last week allowed the sale, while putting its decision on hold until 4 p.m. today to let opponents, including Indiana pension funds, seek Supreme Court intervention. The Indiana pension funds hold $42.5 million of $6.9 billion in Chrysler’s secured loans.

“We would never walk away,” Marchionne said in response to a question about whether Fiat would pull out of the deal if it isn’t completed by the June 15 deadline. “Never.”

So, there’s no good excuse not to slow this deal down and let the Supreme Court take a careful look at the legality of it. The real reason the Obama administration wants to cram this down the taxpayers’ throats, without any meaningful scrutiny, is to cover up their abhorrent, thuggish behavior, motivated by the single minded purpose of protecting the UAW, whatever cost to the taxpayers be damned. The Obama Auto Task Force wants to get this deal done because the unseemly details concerning their extremely questionable tactics and purpose are starting to see the light of day and honest people are starting to ask some hard, honest questions.

U.S. Pushed Fiat Deal on Chrysler

The Obama administration rushed an alliance between Chrysler LLC and Fiat SpA despite Chrysler’s worries about Fiat’s financial health and its willingness to share technology, according to internal company emails.

The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were “in bed with a shady partner.” In another note, an official referred to the Treasury Department as “God.”

The documents, filed in the Southern District of New York as part of Chrysler’s bankruptcy proceedings, provide a glimpse at the tense debates that shaped Chrysler’s final days as it raced to find a suitor.

On Friday, a federal appeals court upheld Chrysler’s Fiat deal, dismissing a challenge by dissident Chrysler debt holders. But the court also issued a stay until 4 p.m. Monday — leaving a small window for Thomas Lauria, the lawyer pursuing the case, to appeal to the Supreme Court. One judge on the three-judge panel suggested the Supreme Court should have “a swing at this ball.”

Mr. Lauria’s persistence led one government lawyer in the Chrysler case to dub him a “terrorist” in an email to a Chrysler adviser.

See also:
Obama’s man called shots on bankruptcy
Chrysler-Fiat Deal: U.S. Government as “God”

UPDATE: Indiana vs. Chrysler: Was TARP Used Illegally?

A quick scan of the 169-page legislation detailing the purpose of the Troubled Asset Relief Fund doesn’t say anything about automobile companies. Nor does it say anything about using the government’s money to bail out nonfinancial institutions generally.

On its face then, it might appear the Indiana pension funds have a solid argument in challenging the U.S. Treasury Department’s use of TARP funds to finance Chrysler’s restructuring. That point is at the heart of the pension funds’ effort to persuade the Supreme Court to issue a stay the Chrysler-Fiat deal. The stay asks for a temporary hold on the deal until the Justices can decide whether to hear the case.

See also:
Why the Legality of the Chrysler Bailout Won’t Matter
Senate panel to question Obama auto task force

Like a dead, flattened skunk on a hot asphalt road at high noon on a sunny 950 day, this Chrysler/Fiat deal stinks to high heaven. Just a few of the serious problems with it include the government coercion of a private corporation, the trammeling of first lien secured creditors’ legal rights in favor of unsecured creditors, the abrogation of well settled bakruptcy law and established capital structure, and the possible illegal use of and wasteful spending of taxpayer money. And these same legal concerns are also cropping up in the GM banruptcy.

/all I can say is that if the U.S. Supreme Court doesn’t take on this case and sort through these very important legal issues threatening the existing rule of law in this country, they’ll be shirking their duty as a coequal branch of government and shame on them

He’s Melting!

Ever since Obama won the Democrat nomination, the mainstream media has been totally in the tank for him and working hard day to day to prop him up as the best U.S. President of all time. Here’s the latest tongue bath.

Newsweek’s Evan Thomas: Obama Is ‘Sort of God’

Newsweek editor Evan Thomas brought adulation over President Obama’s Cairo speech to a whole new level on Friday, declaring on MSNBC: “I mean in a way Obama’s standing above the country, above – above the world, he’s sort of God.”

Thomas, appearing on Hardball with Chris Matthews, was reacting to a preceding monologue in which Matthews praised Obama’s speech: “I think the President’s speech yesterday was the reason we Americans elected him. It was grand. It was positive. Hopeful…But what I liked about the President’s speech in Cairo was that it showed a complete humility…The question now is whether the President we elected and spoke for us so grandly yesterday can carry out the great vision he gave us and to the world.”

Barf.

See also:
Newsweek Editor Evan Thomas: Obama Is “Sort Of God”

Well, the American public has a decidedly different opinion of the Obama god. The more they see of him, the less they are liking him and his policies. That new president smell is wearing off. He’s losing ground every week.

Daily Presidential Tracking Poll

The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 34% of the nation’s voters now Strongly Approve of the way that Barack Obama is performing his role as President. Thirty-four percent (34%) Strongly Disapprove giving Obama a Presidential Approval Index rating of 0. That’s the highest level of strong disapproval and the lowest overall rating yet recorded (see trends).

The President’s ratings have slipped since General Motors filed for bankruptcy to initiate a new government bailout and takeover. Just 26% of Americans believe the GM bailout was a good idea and nearly as many support a boycott of GM products. It remains to be seen whether the dip in the President’s numbers is a temporary reaction to recent news or something more substantive.

The Presidential Approval Index is calculated by subtracting the number who Strongly Disapprove from the number who Strongly Approve. It is updated daily at 9:30 a.m. Eastern (sign up for free daily e-mail update). Updates also available on Twitter.

Overall, 54% of voters say they at least somewhat approve of the President’s performance so far. Forty-six percent (46%) disapprove. For more Presidential barometers, see Obama By the Numbers and recent demographic highlights.

See also:
Obama’s approval index hits zero

And Obama’s not the only prominent Democrat who’s popularity is flagging.

Cheney is More Popular with Public Then Pelosi

Nancy Pelosi has to hate these new numbers from Gallup. The Speaker of the House is less popular with the American people then one of her biggest enemies and political rivals: Dick Cheney. Gallup shows that 37% of Americans have a positive opinion of of Cheney, while only 34% have a positive opinion of Speaker Pelosi.

The former Vice President has been an active voice for the past administration and their anti-terror policies lately, calling many of the moves that Obama has made dangerous to our country’s safety. Cheney’s chief complaint has been Obama’s criticism of the Bush administration’s use of enhanced interrogation techniques, tactics which Cheney asserts, kept our country safe over the last seven years of their administration. Pelosi has been an ardent opponent of the enhanced interrogation techniques, recently being at the heart of a scandal over her accusations that the CIA lied to Congress about the use of these techniques even though proof from the intelligence organization and other committee members says otherwise.

Vice President Cheney does still have slightly higher unfavorable ratings then the Speaker, but his popularity is treading up and hers is trending down in recent months, a sign that Pelosi’s harsh style of management, and recent scandals may be wearing on the American public. Republicans may and should use Pelosi as a campaign lightning rod in 2010 just as Democrats used Cheney and Bush as motivators for their voters in the 2006 and 2008 election cycles. In fact, her greatest contribution in the next two years may not be her work on Capitol Hill but her use as a central punching bag for the GOP to focus Americans attention on the perils of one party rule in our nation’s capital.

That’s gotta hurt!

See also:
Cheney and Pelosi Have Poor Ratings in Common
A race to the bottom – Cheney versus Pelosi
Cheney, Pelosi, Obama: A Tale of Three Ratings

Of course, to break through the pervasive media bias and Democrat talking points working in tandem to label Republicans as the “Party of No“, the GOP is going to have to work hard to advance alternatives and make sure the American people are aware of their efforts. It won’t be easy because the Democrats and the media are working against them. Remember when Obama and the Democrats taunted Republicans to offer an alternative to Obama’s obscene budget? Well, the Republicans did offer an alternative budget proposal, even though, as the minority party, it wasn’t their responsibility to do so.

See also:
The GOP’s Alternative Budget
Two Budgets: A Comparison
Graphs and Charts on the Republican Alternative

So, after having their bluff called, did the Democrats seriously consider the Republican alternative? Hell no, the same day the Republicans proposed their alternative, the Democrats totally ignored it, gave it no consideration, and proceeded to ram the abomination that is Obama’s budget through Congress unchanged, without a single Republican vote. So much for bipartisanship.

However, to their credit, the Republicans aren’t giving up.

House Republicans offer up a $23 billion list of spending cuts

Responding to a challenge from President Barack Obama, House GOP leaders are offering up a roster of more than $23 billion in specific spending cuts over the next five years.

The proposed cuts, which were to be sent to the White House on Thursday, bear little resemblance to the dramatic proposals Republicans unfurled when they took over Congress 14 years ago.

Rather than proposing, for example, the elimination of the Education Department, as they have in the past, Republicans are suggesting killing a program that pays for building sidewalks, bike paths and crossing guards as part of the Safe Routes to Schools program. That would save $183 million a year.

The Associated Press was provided a look at the plan, which flows from a White House tiff between Obama and House GOP Whip Eric Cantor of Virginia.

In April, Cantor praised Obama for instructing Cabinet secretaries to produce $100 million worth of commonsense cuts this year. Obama’s cuts were met with a lot of derision for being merely a drop in the bucket as the government faces extraordinarily large deficits, and Cantor said the president could do a lot better. Obama told him to come up with suggestions.

The result is a list of 37 specific program cuts that would save taxpayers more than $23 billion over the next five years and more than $5 billion in the first year alone.

Granted, $23 billion in specific spending cuts isn’t going to save us from Obama’s $3.6 trillion “Bankrupt America” budget, but at least it’s a substantial savings compared to Obama’s laughable $100 million in cost cuts. In any case it’s a start, the “Party of No” is at least trying to save the taxpayers some money.

Will the mainstream media report on this new Republican proposal to reduce spending, will Obama and the Democrats ignore it and sweep it under the rug, like the Republican budget alternative?

/stay tuned, hopefully, between Obama’s weak foreign policy and his out of control deficit spending, the American electorate will eventually figure out that they made a mistake, it seems the polls are already starting to point in that direction

GM Goes Bankrupt, Sun Rises In East, Sky Doesn’t Fall

As widely predicted and telegraphed, the once unthinkable finally became reality today.

GM Files Bankruptcy to Spin Off More Competitive Firm

General Motors Corp., the largest manufacturer to go bankrupt, filed for court protection with a government-financed plan intended to create a viable company that can compete in world markets.

The U.S. government will extend $50 billion of loans to the 100-year-old automaker and plans to convert that into a 60 percent stake in the reorganized company, according to a filing in U.S. Bankruptcy Court in New York. GM today missed a deadline to show that it could reorganize outside of court and reported debt of $172.8 billion, more than twice its assets.

“GM and its stakeholders have produced a viable, achievable plan that will give this iconic American company a chance to rise again,” U.S. President Barack Obama said today. The government was becoming a “reluctant” owner of the automaker, Obama said, adding that his goal was to “take a hands-off approach and get out quickly.”

GM, the largest carmaker until its 77-year reign ended last year, surpassed Chrysler LLC as the largest manufacturer to file for bankruptcy. Detroit-based GM plans to launch a new company in 60 to 90 days, armed with vehicles from its Cadillac, Chevrolet, Buick and GMC units for the U.S. market. The court will supervise the sale or liquidation of unprofitable brands, such as Saturn and Hummer, and at least 11 unwanted factories.

Interim Loan

The automaker won approval of a plan to auction its assets and interim approval of a $15 billion loan from the U.S. and Canada to keep the company going until it can complete the sale, which it plans to do in July.

GM said it has more than 100,000 creditors, and that unsecured creditors will recover some assets in the reorganization. Company operations outside the U.S. weren’t included in the petition.

The case was assigned to U.S. Bankruptcy Judge Robert Gerber in Manhattan, who also presides over the bankruptcies of Lyondell Chemical Co. and BearingPoint Inc. He presided over the bankruptcy of Adelphia Communications Corp. as well.

“Today marks a defining moment in the reinvention of GM,” said company President and Chief Executive Officer Fritz Henderson. “The economic crisis has caused enormous disruption in the auto industry.”

GM listed in its petition as top creditors Wilmington Trust Co., representing bondholders owed $22.8 billion; International Union, the United Automobile, Aerospace and Agricultural Implement Workers of America, owed $20.6 billion; and Deutsche Bank AG, representing bondholders owed $4.44 billion. The Unofficial GM Dealers Committee, which said it represents more than 6,000 GM dealers in the U.S., filed a notice that it will take part in the bankruptcy litigation.

A Matter Of Law

Economy: With General Motors’ long-awaited “pre-packaged bankruptcy” finally here, America is on the verge of a new era — one where government, not investors and consumers, is the final arbiter of success.

GM’s bankruptcy pushes bondholders aside in favor of the U.S. government and the UAW. Though bondholders hold $27 billion in debt, they’ll get just 10% of stock.

How’s that compare with the other “stakeholders?” For spending $50 billion to bail out GM, the government will get 60% of the equity in the new GM; the UAW, which along with other unions gave millions to Democrats, will be repaid for its loyalty with 17.5% of the stock for $10 billion of unsecured debts.

So the government, with roughly two times what private bondholders have on the table, gets a stake five times bigger. And the union, with about a third as much “invested,” gets a 70% bigger stake. Even the Canadian government, with its $9.5 billion “invested,” ends up with 12%.

They call it “restructuring.” We call it theft. Never in our memory has there been a more thorough, systematic effort to disenfranchise the shareholders and bondholders of a major American firm.

It will make investors — domestic and foreign alike — think twice about investing in an American stock or bond in the coming years. Why invest if your money and rights as an investor can be arbitrarily stripped from you, as they were in GM’s case?

But our real issue with this isn’t that people will lose money. It’s that we don’t believe the government’s actions are even legal.

The White House has basically been manipulating GM into bankruptcy since early this year, putting 31-year-old Brian Deese, a Yale law student, in charge of GM’s restructuring. “It is not every 31-year-old who, in a first government job, finds himself dismantling General Motors and rewriting the rules of American capitalism,” the New York Times said with tongue in cheek (we think).

It used to be that the “rules of American capitalism” came from 200 years of U.S. case law, the Constitution and legitimate federal regulation. But no more. Instead, the job’s been given to someone not yet out of law school. This shows shocking contempt for GM, once the world’s pre-eminent industrial company, for American capitalism and the rule of law.

We don’t think this travesty passes constitutional muster and hope to see it vigorously challenged in federal court soon.

Our Constitution is very specific. It limits the executive branch’s rights to those enumerated therein. The rest it grants to the people and the states. It also requires due process under the law, especially when government “takings” are involved.

That’s why in 1952, when President Harry S. Truman tried to seize control of the U.S. steel industry during a debilitating strike, the Supreme Court made him back down. And Truman had a real emergency on his hands: the Korean War.

We pored over Article II of the Constitution, known as the Executive Powers Clause. Nowhere is the White House granted the right to override the time-tested bankruptcy process, to use Treasury money raised by taxing Americans to buy or bail out companies, to fire CEOs, to micromanage corporate policy, or to abrogate lawful contracts made by private parties.

Yet, our government has done these things and more — leading to a corrupt GM bankruptcy. The damage to our system of corporate capitalism and the rule of law is severe. Next stop: Federal court?

See also:
GM Collapses Into Government’s Arms
General Motors files for bankruptcy
GM declares chapter 11 bankruptcy
World’s Largest Company Files For Bankruptcy Protection As GM Makes It Official
General Motors may follow Chrysler’s path to quick exit from bankruptcy

So, this travesty of a probably illegal boondoggle taxpayer funded GM bankruptcy, alarmingly prophesied as the loosing of the seventh seal of the Apocalypse, was filed in U.S. Bankruptcy Court in New York today. What were the dire and scary consequences? Did the economy fall off a cliff into the abyss? Was there panic in the streets? Did dogs and cats start living together, was there mass hysteria?

Hell no! Wall Street and the equities markets not only totally ignored the GM bankruptcy, all the major stock market indices soared, tacking on gains of 2 1/2-3% each, having their best session in months! Personally, I had a great day!

/so, once again, all the Chicken Littles were wrong, GM should have been put into bankruptcy six months ago, it would have saved the taxpayers $20 billion that has all since been flushed down the GM/UAW toilet, never to be seen again

If It’s Friday It Must Be Time To Transfer More Taxpayer Money To The UAW

Oh yeah, it’s late Friday afternoon of the Memorial Day weekend, time to tell the taxpayers how much more money Obama just flushed down the auto bankruptcy toilet, hoping you won’t notice.

U.S. Lends Additional $4 Billion to Ailing GM as Bankruptcy Looms
GM says it received 4 bln dlrs more from US Treasury

General Motors Corp. said Friday that it has borrowed an additional $4 billion from the Treasury Department, meaning the automaker has now accepted $19.4 billion in loans from the U.S. government.

GM started taking government money in December and said it intended to borrow $2.6 billion more by June 1 and an additional $9 billion after that. But in a regulatory filing Friday, GM said it needed $1.4 billion sooner than originally forecast.

The company didn’t publicly disclose how it will use the money but said it provided the information to Treasury officials, and they considered the loan acceptable.

“We appreciate President Obama’s and his administration’s ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company,” the company said in a written statement.

And remember, the plan is to forgive these “loans” in bankruptcy, which GM will most likely declare next week. The UAW thanks you for the direct transfer payments, have a nice long Memorial Day weekend!

See also:
GM borrows another $4 billion from Treasury
GM borrows additional $4 billion from government
GM gets $4B in new federal aid
GM Bankruptcy Filing Moves Closer Amid Sale Plans, Union Deals
Report: General Motors bankruptcy expected as early as next week
GM bondholders dig in, gird for bankruptcy
UPDATE:GM Bondholders Lobby US Lawmakers To Oppose Treasury Backed Deal
GOP Lawmakers Push Geithner on GM ‘Main Street’ Bondholders’ Behalf
UPDATE:GOP Lawmaker Presses For More Oversight Of Auto Bailout
Auto Task Force Wages ‘War on Capital,’ Lawmakers Say (Update2)
Lawmakers want Obama to slow down on GM, Chrysler
Lawmakers urge Obama to slow auto task force
Lawmakers worry about auto job losses…GM borrows more money…New…
Lawmakers want Obama to slow down on GM, Chrysler
UPDATE 2-Fiat already concerned for ‘deteriorating’ Chrysler
The UAW Says Thanks Taxpayers!

/anyone else think these government sponsored “auto bailouts/bankruptcies” were a really bad idea, aren’t going to go well, will cost taxpayers more than they could ever imagine, and it’s all a criminal waste of money because Chrysler and General Motors will never be able to survive anyway?

It’s Deja Vu All Over Again

Gee, for someone who says he doesn’t want to run car companies, Obama sure seems to like to collect them.

GM bankruptcy plan eyes quick sale to government

If General Motors Corp files for bankruptcy, as widely expected, its healthy assets will be quickly sold to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who was not cleared to speak with the media and would not be identified, said the U.S. government would pay for the assets by assuming the automaker’s $6 billion of secured debt and forgiving the bulk of the $15.4 billion of emergency loans that the U.S. Treasury has provided to GM.

The government is negotiating the terms on which it will assume GM’s secured debt and might make an the offer to holders of the debt that is far superior to the one made to Chrysler LLC’s secured lenders, the source said.

Chrysler filed for bankruptcy in April and has proposed paying its secured lenders about 28 cents on the dollar.

The new GM is likely to distribute stock in the company to GM’s unions in return for concessions on wages and benefits, the source said.

The percentage of stock given to the unions, bondholders and other creditors whose debt is not repaid by new GM has not been determined, the source said.

In addition, the government would extend a credit line to the new company, the source said.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs as sales have plummeted in recent years.

See also:
GM shows signs that bankruptcy filing is coming
GM says still hasn’t made deals with Treasury, UAW
GM bankruptcy would be complex, painful

So, to recap, the U.S. government is going to buy GM, turn a large ownership stake over to the UAW, the taxpayers are going to take it in the shorts for the $15.4 billion of loans already made to GM, and then, to add insult to injury, we’re going to loan the new government/union owned company even more money. Can you say Chrysler redux, only on a much larger scale? Did anyone ask you if you wanted to spend tens of billions of your tax dollars to buy and run two of the three major U.S. car companies just so the UAW can keep their overpaid jobs and gold plated health care and pensions as payback for supporting Obama?

/this isn’t Venezuela, is this Venezuela?

Auto Bailouts In A Nutshell

Dennis Sevakis sums it up succinctly.

Bye-bye sanctity of contracts

As property rights are flushed, you can fuggedaboutwhat’s in your contract. After all, you wouldn’t want to be a”hold-out” member of a “cabal” of “dissident lenders” now, would you? A Saturday Washington Times article includes some terribly prejudiced phrasing (perhaps tongue-in-cheek?), but is a good summary of the structure of the Chrysler bankruptcy “deal” that included the collapse of the secured lenders.

The hold-out lenders charged that Mr. Obama, who had called them “speculators” and questioned their patriotism as well as blamed them for the bankruptcy, used undue political pressure, even though they were pursuing their legal rights in bankruptcy court, where the claims of such secured lenders normally prevail.

“After a great deal of soul-searching and quite frankly agony, they concluded they just don’t have critical mass to withstand the enormous pressure and machinery of the U.S. government,” said Thomas Lauria, the group’s lead attorney.

The White House’s auto task force asked the lenders to accept about 33 cents on the dollar for $6.9 billion of loans and offered them no equity in the company, while unions were given a 55 percent majority stake in exchange for expunging $4.6 billion of debt to a retirement fund.

Oh, what wonders one can accomplish by having a friendly, (sym)pathetic judge! And, when you’ve got ’em by the cajones, their hearts and minds are sure to follow! IMHO this is just about the most egregious abuse of government power of all time. How long before the Obamachine just takes dissidents out back and threatens to shoot them? Nah, they’ll never dispense with all the legal formalities, will they?

But do keep in mind, that we have no dollars for more F-22s and such. Must tighten our defense belt, folks. But there’s billions available to “save” Chrysler — now and in the future. And Obama is only just getting started.

Praise the Prez and pass the subsidies!

/couldn’t have said it better myself

More Taxpayer Money Down The Drain

And you thought the Chrysler bailout was a bad deal for taxpayers. Watch Obama crow about how proud he is of himself for cutting a drop in the bucket $17 billion from his $3.5 trillion budget.

See also:
Obama touts $17 billion ‘lot of money’ budget cuts
Obama seeks $17 billion in U.S. budget savings

But wait, what about General Motors, the too big to fail company that we’ve already shoveled $15.4 billion into, how is our taxpayer investment in that going? The answer is, not good. We could have let GM go bankrupt back in November, but no, that was unthinkable! Well, guess what, GM will be in bankruptcy by the end of the month and if you think we’re ever going to get our $15.4 billion back you’re crazy.

GM Posts $5.98 Billion Loss Amid Steep Drop in Revenue

General Motors, facing the prospect of bankruptcy, posted a loss of $5.98 billion for the first three months of this year as revenue continued to slide because of the economic crisis and slumping auto sales.

GM’s losses were offset somewhat by the company’s restructuring efforts and by an infusion of loans from the federal government, the automaker said yesterday.

GM has until the end of the month to cut costs further and win stakeholder concessions. If it fails, the government will likely force it into bankruptcy protection.

GM lost $9.78 per share, compared with a loss of $5.80 per share, or $3.28 billion, a year earlier. Cash on hand totaled $11.6 billion — approaching the minimum reserves needed to continue operations.

Revenue fell 47 percent to $22.4 billion, compared with revenue of $42.4 billion in the same quarter last year, as GM cut production. Ray Young, GM’s chief financial officer, warned that such a drop could be dangerous.

“Once you start losing revenue, you get yourself into a vicious circle in which you cannot recover,” he said. Talk about bankruptcy has pushed customers even further away from dealerships, Young said.

See also:
G.M., Leaking Cash, Faces Bigger Chance of Bankruptcy
US would facilitate GM bankruptcy, if needed -Geithner

And just what is soon to be bankrupt GM doing with our $15.4 billion in taxpayer money, besides paying for gold plated UAW retirement and health care benefits? Can you say insult to injury?

GM hosts fleet buyers at spa in scaled back event; critics unmoved

Just weeks before a deadline that could send it into bankruptcy, General Motors is entertaining 500 of its biggest customers at a luxury spa and golf course in Arizona.

GM, (GM) which has borrowed $15.4 billion from the U.S. government in the past six months, shipped in 150 cars and trucks to the event this week at the Sheraton Wild Horse Pass Resort & Spa, and paid for airfare and hotel lodging for 90% of the guests.

The affair is scaled back from previous years, says GM spokesman Terry Rhadigan. Guests have to pay for their own golf outings, he says, and most of the days are packed with informational sessions on GM’s 2010 product line. The guests are GM’s fleet and corporate customers, which accounted for 27.6% of GM’s business in 2008. Fleet customers can buy dozens of vehicles at a time.

Well, hey, at least they made the taxpayer funded junket bingers pay for their own golf. And now look at what GM is planning to do after we finish paying for their bankruptcy.

Under Restructuring, GM To Build More Cars Overseas

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.

As a result, the long-simmering argument over U.S. manufacturers expanding production overseas — normally arising between unions and private companies — is about to engage the Obama administration.

Essentially in control of the company, the president’s autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations.

“It’s an almost impossible dilemma,” said former labor secretary Robert B. Reich, now a professor at the University of California-Berkeley. “GM is a global company — so for that matter is AIG and the biggest Wall Street banks. That means that bailing them out doesn’t necessarily redound to the benefit of the U.S. or American workers.

“More significantly, it raises fundamental questions about the purpose of bailing out these big companies. If GM is going to do more of its production overseas, then why exactly are we saving GM?”

That’s exactly the ~$30 billion dollar question, why are we bailing out these two car companies that bleed money like hemophiliacs? The answer to that is easy, so Obama can protect the UAW as much as possible. You can already see that from the progress of the Chrysler bankruptcy. The Obama car czar Steven Rattner, is literally bullying a deal throgh bankruptcy court that heavily favors the UAW interests by trampling the Constitutional rights of more senior lien holding creditors. It’s a big, disgusting sham so far, expect the General Motors bankruptcy to be just as bad and probably much worse.

/and remember, while, on one hand, Obama brags about cutting $17 billion, much of it cuts in defense programs, less than 1/2% of his stupeniously bloated $3.5 trillion budget, the largest in American history by a wide margin, keep in mind that, on the other hand, he’s going to flush about $30 billion down the road to bankruptcy toilet bailing out his UAW buddies at Chrysler and GM and you’re paying for it

The UAW Says Thanks Taxpayers!

Surprise, surprise!

Chrysler Won’t Pay Back U.S. Loans

Taxpayers may never get back billions of dollars lent to Chrysler, according to various reports.

Testifying in bankruptcy court on Monday, one of the top financial advisers overseeing Chrysler’s restructuring said the U.S. government may never get back its loans to the company.

“They’re offering financing with a low likelihood of being repaid,” said Robert Manzo, an executive director for Capstone Advisory Group LLC, according to the Associated Press.

Manzo’s comments mirror the assumptions he listed in Chrysler’s bankruptcy filings last week, CNN Money reports. As part of its Chapter 11 reorganization, Manzo wrote Chrysler expects the U.S. Treasury to forgive a $4 billion bridge loan the automaker received during the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing the Obama administration approved last week to help the company stay afloat while it is in bankruptcy.

The Obama administration confirmed to CNN on Tuesday that it does not expect Chrylser to repay the loans.

See also:
REPORT: Chrysler unlikely to pay back most recent $4.5 billion gov’t loan
Chrysler won’t repay bailout money

What a scam. This amounts to a direct transfer payment to the UAW, nothing more. You should be getting your taxpayer thank you note from them any day now. The government should have just burned the money in a massive bonfire for all the good we’re getting out of it. Chrysler should have gone bankrupt in November. Remember when all the politicians were adamant that bankruptcy wasn’t an option because allowing Chrysler to go bankrupt would plunge the U.S. economy into a deep depression and basically the world would come to an end? Well, here we are, six months and billions of taxpayer dollars later, and Chrysler is bankrupt and the economy didn’t even so much as flinch.

/with all the billions of taxpayer money we wasted on Chrysler, we could have built the rest of the, now on the chopping block, F-22 Rapror fleet the Air Force wants and restored all the proposed cuts to missile defense