The Dawning of Obamunism… GM is Officially Government Motors
Stalin would be so proud! The Donkey’s are controlling the cars:
There should be no question as to why the auto industry accepting the new CAFE standards today…
General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.
GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.
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 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.
As I have been stating… we will never see our taxpayer dollars for any of this bailout nonsense. These bankruptcies were inevitable and they just threw money down a black hole!
The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.
Not ‘gonna happen!
If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.
My father mentioned yesterday, on his birthday, that he would be finding out whether or not he would have a job today… GM will follow Chrysler, the question is when and how soon this summer?
Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.
The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.
GM could not be immediately reached for comment.
GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)
George Soros – stop buying up GM shares for yourself!
Captain Obvious Moment of the Day: Debt Unsustainable, We Must Stop Borrowing From China
Thank you Captain Obvious… err… I mean Obama!
Ironically enough the debt and the borrowing that Obama is concerned about will mostly come from his irresponsible spending habits within his first 100 days. When Dick Morris mentioned that Obama’s first 100 days would come back to haunt him, he was right!
President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.
“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”
Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
That calls for a big “DUH!” but that is simple common sense, something that is much like an endangered species in the halls of D.C.
The amusing part of all of this is the fact that Obama is just simply unwilling to look in the mirror and realize that he has quadrupled the debt and increased our deficit more than any other president in history. He has spent more in his first 100 days than all presidents throughout history combined – and that includes Bush to all you liberals.
Obama continuously uses the blame Bush rhetoric for having to take “drastic” measures, but as any intelligent human being should realize, when the government and politicians make things out to be a crisis, yet you don’t really feel that way (unlike a physical attack against your country), you should be incredibly wary. Politicians lie, they lie to pass an agenda, and Obama is a genius when it comes to manipulation, deceit, and drama.
Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Two weeks ago, the president proposed $17 billion in budget cuts, with plans to eliminate or reduce 121 federal programs. Republicans ridiculed the amount, saying that it represented one-half of 1 percent of the entire budget. They noted that Obama is seeking an $81 billion increase in other spending.
We are now learning that the supplemental spending for war funding and emergency funding that is sitting in the House and Senate are both over $90 billion at this point. There will most likely be a compromise of some sort between the House and Senate but I believe that the real amount of additional appropriations will most likely stay above the $90 billion threshold.
Let’s not forget that under the Obama administration and this radical left Congress that government is growing and the private sector is shrinking. Entitlement programs are growing because liberals know that the more you can put your thumb over people and oppress them by getting them “hooked” on entitlements and the government, the more they will win votes… that’s just cruel.
The issue is that we are going to go bankrupt quicker by upping the ante on entitlements. Entitlements themselves are already unsustainable.
Baby boomers — that 70-million-strong population lump — begin officially retiring this year. That means the government’s bill for retirees’ pensions and health care has no where to go but up, for decades to come.
Everyone knew this day would come. And virtually every economist and actuary who had run the numbers could tell you, within a few years’ certainty, the system was going bankrupt.
But all this seemed to happen in the distant future. Last year, both political parties virtually ignored the topic during their presidential campaigns. It became a non-issue issue.
Well, thanks to a profligate federal government, which will double the national debt to $11.5 trillion in just four years, and a recession that has weakened federal tax revenues, we can no longer ignore the problem. The day of reckoning is at hand.
The Social Security Board of Trustees reported Tuesday that costs will exceed revenues in 2016 — a full year sooner than expected just last year. And total assets — including more than 70 years of “surpluses” built up in the “trust fund” — will be completely gone by 2037 — four years earlier than in last year’s report.
The deficit over the next 50 years is expected to be about 2% of taxable payrolls — up from 1.7% last year. By the way, changes in the last year alone have added $5.3 trillion in costs to the program.
Long-term, unfunded liabilities for Social Security and Medicare top $53 trillion — about four times the size of current GDP. Taxes must either rise or benefits shrink by that amount to close that gap.
Maybe we could try to work on some issues that really matter, those that could possibly destroy people’s lives? Instead of criticizing private social security accounts, maybe we should revisit the idea and work from there. Many economists argue that private accounts of some sort would be more cost effective and better for everyone.
We also cannot forget that Obama and his lefty contemporaries want to reform health care and create a possible single payer system. Many do not believe that the single payer legislation will get passed, but something that makes the private sector compete with the public sector by providing a choice. The issue that I have/see with this “competition” is how the government can become so forceful and, as it has done in the past, force out of business anything competing with it. Either way, any additional programs provided by the government must come out of taxpayers’ pockets, so medical care will never technically be free – it will only be free to those who don’t work or pay taxes. This is the crux of the problem. Health care provided by the government will just increase our debt to China even more…
Obama is concerned with China? He’s concerned with owing the Chinese more and more? Well, maybe if we took a look at the recent auto industry news regarding GM it would be evident that all we do is take China’s money, give China jobs, and all in all are in the pocket of China.
As thousands of General Motors workers await word on more U.S. plant closures, reports that the company plans to import Chinese-made vehicles to the U.S. have created a political problem for the automaker and the White House.
The reports, which GM will neither confirm nor deny, could mean trouble because GM is supported by $15.4 billion in U.S. government loans, largely due to the Obama administration’s desire to preserve the company’s 90,000 U.S. jobs.
The United Auto Workers charged last week that the Detroit automaker intends to almost double over the next five years the number of vehicles it imports to the U.S. from Mexico, South Korea, China and Japan.
“GM should not be taking taxpayers’ money simply to finance the outsourcing of jobs to other countries,” Alan Reuther, the union’s Washington lobbyist, wrote in a letter to U.S. lawmakers.
Maybe if the Unions were not allowed to lobby on Capitol Hill to force the hands of Democrats and completely crush the auto industry, this would not have been a problem and the outsourcing of jobs would not have been so enticing to the ailing auto giants. But why would Democrats ever put the good of the country or an industry over that of a big donor?
I have an idea for all who read this – let’s attempt to elect someone who is for the people, by the people – not bought and paid for. Let’s elect somebody who is honest and integrity means more to them than politics and agenda… Stop electing these corrupt, pathological liars and maybe we can get our country back on track.
President Bush, Integrity; Barack Obama, Floppy Fish
If there was one thing you could always say about President Bush, it is that he always stood on his principles and values. He had an enormous amount of integrity and did not compromise any of those things for political expediency. He firmly believed every move and decision he made was based on what was best for the American people. He did not rely on polling data or popularity statistics. President Bush’s firmly held beliefs in a post 9/11 world are what guided him.
Now President Obama, on the other hand, stands on his teleprompter. As he has “navigated” his way through the first 100 days in the Oval Office, we have yet to really see the characteristics of integrity or doing what is right by the American People. At least two of his cabinet members should have been tossed; Turbo Tax Tim Geithner and Secretary Napolitano, both of whom have embarrassed the Oval Office and outraged the American people. If he really stood on principle and integrity they would have been gone.
President Obama showed signs of this early in the election cycle when he said he would accept public financing of the campaign, but when the primary season was over and he was the nominee, he opted out of the system and continued to collect just shy of 3/4 of a billion dollars, most of which is untraceable. That in itself goes against the Open Government Act by fully disclosing all donors.
President Bush walked his talk after the campaign. He worked with the Democratic leadership, showing bipartisanship on the budget, FISA, immigration and other issues. The only thing he would not compromise on (thank goodness) was a troop withdrawal time table. Democrats tried in vain to force his hand as the Obama backing MSM flooded the evening news night after night with each road side bomb image they could find. Very little attention was paid to the success we were having, only the carnage. This unwavering stance against a timed withdrawal was significant because he did not want give the emboldened insurgency a window in which to “wait it out”, and to prevent these politicians from micromanaging commanders in the field. True, there was pressures to change strategies in order to combat this issue, and the administration did just that; they initiated the “surge”. And guess what, it worked! Now Mr. Obama on the other hand has shown about as much bipartisanship as Iran has shown cooperation with the UN….Uh that would be none! The GOP has been completely shut out of the administration, being told to basically shut up and sit down because “we” (the Dems) won. So much for a new era of cooperation and open government.
What people fail to realize in Iraq, is that not only did we rid the world of a very evil dictator, who’s atrocities are well documented (so in fact there is you weapon of mass destruction), shut down Dr. Germ Rihab Taha (who was identified by UN weapon inspectors specifically), the mission also brought stability to the region as a whole.
If you look back, Moamar Kadafi quickly and quietly ended their rebellious ways and cracked down on terrorists in Libya. Syria also became much more user friendly, and cooperative. So there were broader positive effects.
Mr. Obama who was not a Senator when the Congress initially authorized action in Iraq, on the campaign trail he waved the “No More War” flag like the checker flag at the end of a car race. The election was soundly anti-Bush, and all the rhetoric that goes with that. ‘When he is elected president, we will be out of Iraq in 16 months at the most. There should be no confusion about that’.
Well as you all know, the mission (and I am not complaining about this) remains on target and is, in fact, in a winding down phase. We have consolidated much of our operations to specific areas in Iraq, handed over control and security operations to the Iraqi Army and Police force in many areas, continue to train and equip those forces so when we do leave, there will be stability and peace inside the borders. Mr. Obama’s rhetoric got him into the White House, but the reality of the situation on the ground in Iraq dictated his actions. And if the people who were so hell bent on completely ditching the quote “Bush Doctrine” (as Charlie Gibson tried to nail Sarah Palin with) they would have realized that this notion of up and run out of Iraq was not plausible in the least.
President Bush was thrust into a situation that day in September, unbeknown to America or our intelligence agencies. We went from a 20 plus year time of relative peace and suddenly thrust into war, against an enemy that does not belong to a nation or state, but operates in the shadows among innocent people whom they will sacrifice without any hesitation. Yes, mistakes were made. But this nation was kept safe, and still is, by those policies President Bush put into place.
Now we have a floppy fish in the White House. Yes he was thrust into an economic situation that has not been pretty. However, Mr. Teleprompter as not shown us anything except he is bent on a socialistic agenda and that he changes his word like we change underwear.
Now Mr. Obama wants to openly (yes there is that word open again) and without preconditions, have talks with these nations that simply hate the United States. Iran, who is pursuing nuclear weapons and calling for the destruction of Israel, North Korea, who has nuclear material but can not build a delivery vehicle, Venezuela, who just yesterday seized American Owned and Operated energy sites and equipment, and Cuba, where money can now flow freely without using a 3rd and 4th party intermediary. Oh yes lets not forget Mexico. Yet, another apology from Mr. Obama and Secretary Clinton for causing the drug war along the boarder.
Mr. Obama and his economic team have showered the coffers with billions and billions of dollars in order to prop up the economy. Thus far, nothing. New jobless filings hover around 600K and overall, 6.5 million people are out of work, and counting. Now that Chrysler and GM are making significant cuts, that is going to go up more this year. Not only does that effect line workers in the auto plants, but spills out to the suppliers and peripheral businesses that support them.
Mr. Obama, first week in office broke the most basic of his campaign pledges, saying that the practice of earmarks and pork spending would immediately come to and end. Say what? The first two things he signs into law are pork laden wasteful bills that did nothing. The Stimulus package, which failed to stimulate the American people, was shoved through the congress by the new Dem Majority in the middle of the night in which no one was even able to read. And what was in there (Mr. Dodd)? Bonuses for the executives at AIG, Fannie Mae, and Freddie Mac!!! Next he signed an Omnibus bill that contained over 9000 earmarks, again pushed through on a Dem freight train in the middle of the night.
Now the administration continues to politicize national security doctrine as the administration stammers on what our evil interrogators did to terror suspects. This emboldens the enemy, teaches them our techniques so now they can prepare for what little we actually do. The September 10th mentality of the administration puts us in jeopardy. Many of the policies that Mr. Obama so vehemently touted against remain in effect. The naval prison at Guantanamo Bay was ordered closed yet remains open as Obama plans where to send its inmates; the president has yet to establish a coherent policy on Iran — following in the Bush administration’s footsteps and while American troops are being removed from Iraq, most will stay in place until 2010.
It is important to note that all the enhanced interrogation tactics that we used actually yielded crucially important intelligence that helped keep this country safe,” with the eight years of safety on the home front since Sept. 11, 2001. Even though congressional leaders claimed to be left out of the loop on these techniques, it was revealed that the same Dem leaders, who bewitched President Bush, were duly informed of those methods. But as Dems, true to color, they pretended to take the moral high road, and were thus outed as hypocrites using this issue for political expediency.
Obama’s own Director of National Intelligence, Dennis Blair, wrote an internal memo last week citing the “high value” information about Al Qaeda’s operations yielded by tactics such as water boarding, but its morality has been called into question by human rights monitors and many others both in and out of the Obama administration.
So therein lays the conflict with this administration. Integrity, direction, political expediency, governing by polling data, and letting Nancy Pelosi write its budget a mere 3 Trillion and some change.
So we as Americans have to wonder, where the transparency, openness, and new era of cooperation is. Yeah, that is right, so sorry, we lost.
