Vulture Capitalism? Try Obama's Version

Discussion in 'Politics' started by Trajan, May 25, 2012.

  1. Trajan
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    Trajan conscientia mille testes

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    Due to copy right the article is heavily truncated; please see the link for continuity’s sake.

    Vulture Capitalism? Try Obama's Version
    A profit-driven economy is preferable to one run by political favoritism.


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    Like Mr. Romney, Mr. Obama has presided over bankruptcies, layoffs, lost pensions, run-ups in debt. Yet unlike Mr. Romney, Mr. Obama's C-suite required billions in taxpayer dollars and subsidies, as well as mandates, regulations, union payoffs and moral hazard. Don't like "vulture" capitalism? Check out the form the president's had on offer these past three years: "crony" capitalism.

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    The Energy Department's nuclear physicists were admittedly a bit flummoxed by the whole P&L thing, but they got their venture-capitalism groove on and in 2009 handed Solyndra a $535 million loan guarantee. Even prior to disbursement, government accountants were warning that Solyndra was a lemon, but the White House didn't worry. After all, the IRS had only recently and conveniently tripled the tax credit (to 30%) for buyers of Solyndra products, which the government figured would help grease their start-up's skids.

    Snip-

    Unable to compete, the firm went bankrupt last year. And, oh, the carnage! It was kind of like . . . GST Steel! Only worse. Solyndra laid off 1,100 employees. It provided no severance, not even back pay due for vacation credits. But a bankruptcy judge would later approve $370,000 in bonuses for 20 employees.

    Snip-

    Speaking of cars, Detroit is the business venture Mr. Obama's team has been most flogging as a success.

    Snip-

    To get to the same place, Mr. Obama's crony capitalism handed $82 billion in taxpayer dollars to the two firms. That bailout money went to make sure the unions that helped drive GM to bankruptcy (and helped elect Mr. Obama) did not have to give up pay or pension benefits for current workers. They were instead rewarded with a share of the new firm. The UAW at GM meanwhile used the government-run bankruptcy to bar some 2,500 nonunion workers who had been laid off from transferring to other plants. How truly vulture-like.

    Contract law was shredded, as unions were given preference over other creditors, such as pension funds for retired teachers and police officers. Congressmen used political sway to keep open their weak auto dealerships, forcing layoffs at stronger ones (vulture . . . vulture . . . vulture). Political masters obliged the industry to pour resources into unpopular green cars. The political masters were obliged to offer $10,000 tax credits to convince Americans to buy them. (They still won't.) And the message to every big industry? Go ahead, run your business into the ground. The Capitalist-in-Chief has your back (especially if you are unionized).

    So, take your pick. Mr. Obama's knock on free enterprise is that it is driven by "profit," and that this experience makes Mr. Romney too heartless to be president. The alternative is an Obama capitalism that is driven by political favoritism, government subsidies, mandates, and billions in taxpayer underwriting—and that really is a path to bankruptcies and layoffs. If the president wants to put all 3,545 green stimulus jobs he's created up against Bain's record, he should feel free.


    Strassel: Vulture Capitalism? Try Obama's Version - WSJ.com
     
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  2. Truthmatters
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    Truthmatters BANNED

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    How many didnt go bankrupt?

    How many are STILL to this day creating jobs?

    do you even know?
     
  3. Truthmatters
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    Truthmatters BANNED

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    BTW bailing out the auto industry was in the Bush plan of bailouts.

    You know the one that was done right after the crash that republican ideas caused and then they had to use Kensyan economics to fix?

    remember when every one was saying "we are now all Kensyeans".
     
  4. Moonglow
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    Moonglow Diamond Member

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    happens everytime a new man is elected president.
     
  5. naturegirl
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    naturegirl Silver Member

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    I guess TDM and the mooning Bart didn't see this:


     
  6. Conservative
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    interesting that you never thought to ask the same questions about Bain.
     
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  7. WillowTree
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    WillowTree Diamond Member

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    Let's talk about solyndra why don't we? we the taxpayers were forced into venture capitalism,, we lost our money but the democrats didn't.
     
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  8. Conservative
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    you obviously don't...

    We are all Keynesians now - Wikipedia, the free encyclopedia
     
  9. CrusaderFrank
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    CrusaderFrank Diamond Member

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    But at least Obama has some campaign contributions from Solyandra affiliates
     
  10. Trajan
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    Trajan conscientia mille testes

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    hey what about those poor slobs from delphi?


    Delphi Retirees Are Among the Human Victims of the Auto Bailout

    Shikha Dalmia | March 8, 2012


    As President Barack Obama takes to the stump and touts his auto bailout as a big success that saved the auto industry, America and civilization itself, it will be important to keep in mind all of the bailout's human victims. These of course include American taxpayers, who stand to lose somewhere between $20 and $30 billion on their GM "investment" alone. Then there are the secured creditors of Chrysler who got back 29 cents on the dollar to UAW’s 40 cents, even though the creditors deserved priority since their loans were backed by actual assets. These creditors, btw, included not Wall Street fat cats, but middle-class folks like teachers whose pension money was invested in Chrysler bonds.

    But the other group that got royally screwed but has not received as much attention is the salaried retirees of Delphi, a GM supplier. When the Obama administration commandeered the bankruptcy process, it invited GM and UAW representatives to the negotiating table. But it left out Delphi’s salaried retirees. The upshot was that the UAW retirees got their full pension and health care benefits. But the benefits of 21,000 Delphi retirees – who had often worked right next to their UAW peers – were determined as per a Pension Benefit Guaranty Corporation (PBGC) formula. Hence, some of them lost up to 70 percent of their pensions and all of their life and health insurance. Bruce Gump, a representative of the Delphi Retirees Association, testified before Congress last year that the Treasury could have covered 93 percent of the benefits of all employees for the same amount that it spent on full union benefits.

    more at-

    Delphi Retirees Are Among the Human Victims of the Auto Bailout - Hit & Run : Reason.com



    yup, sounds like vulture crony capitalism to me....:lol:
     

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