Our Investment in Government Motors

[JimJones]

This Monday, General Motors will file bankruptcy and we (all of us that pay our taxes) will become shareholders in the car industry. The problem is, no one ever called me and asked if I would be interested in this type of investment. I checked my email 2 or 3 times and still nothing. So what gives?

As it stands, President Obama is going to lead us in to purchasing 72% of GM with 18% going towards the United Auto Workers Union, and the other 12% going to the majority investors. This company has already drained about $20.0 billion from us in just a few months and with the restructuring we might be looking between $50.0B and $75.0B or more by time it’s all said and done. So how is this not breaking our constitution? If we the people wanted to keep GM, we all could have went out months ago and bought their stock. Since we didn’t, perhaps Obama should have taken the hint.

Since we will own GM via our ever spending government, who’s going to run it? Now if Obama can let Chris Dodd run the finances, perhaps he can get us a ‘sweet heart’ deal like what he got from Countrywide for his mortgage. The well spoken Barney Franks could run marketing and communications, as we all know he likes to hear himself speak. We could even let Pelosi and Reed designing cars. That would be the cars that the American people want to buy. I Sorry Obama, but there is only a small amount of the U.S. that wants to buy those little cars. We want Hummers, Corvettes, Mustangs, and F-150 trucks, not Mini’s.

I think we all knew that GM would end up filing for bankruptcy at some point or another. If I knew this and you knew this, why didn’t someone tell Obama? He must have been out of the loop again, just like the time they used his plane to take some pictures over New York City. If we knew GM was going to file for bankruptcy, why couldn’t we just let them do it at the beginning and save us $20.0 Billion dollars? We all know Obama wants to spend his way out of this mess. Instead of bailing out these big old out dated companies, why doesn’t he invest in bailing out small business? After all, small business represents 70% to 72% of all U.S. jobs.

Agriculture, manufacturers, commerce, and navigation, the four pillars of our prosperity, are then most thriving when left most free to individual enterprise. –Thomas Jefferson

-JimJones
www.BorderlineIQ.com
Jim Jones (BorderlineIQ) on Twitter

 

[WillowTree]

How many billionaires does it take to make 3.6 trillion dollars???

 

[JimJones]

To many to count.

 

[Oddball]

Looks like it's only a matter of time before the The 2012 Pelosi GTxi SS/RT Sport Edition hits the showrooms!!

[youtube]rAqPMJFaEdY[/youtube]

 

[Epsilon Delta]

You know what you should do, Jim? Next election, vote for the party that was against bailouts.

IF YOU CAN FIND ONE!

AHAHA!!!

 

[Metternich]

I believe this also raises a very worrisome condition of politics and corporate management. More explicitly, having to do with bonds and bondholders of companies of 'politically sensitive' companies. By which, using recent examples, General Motors and Chrysler, I mean the horrid way in which their holdings were considered. For in both motor companies, their unions will (GM) and have (Chrysler) been paid off nicely, the government second and finally the preferred - then not so - bondholders havebeen left with chump-change (literally). Which really, to most of the ignorant seem like an okay thing; it's just the rich who are getting minimal cents on the dollar (about 10 cents on the dollar, is one price that has been floated in GM); as was the case in Chrysler's bankruptcy, whether they like it or not. It's the labor that really "needs" the money. So screw those fat cats.

The problem is, however, that if the government continues its policy of taking over companies not because of rational, understandable, specific reasons but only when they look unstable in conjuction with the subjective term they are 'politically viable' - i.e. union votes - then as a bondholder (basically, someone who loans the company credit [money] - in the most laymen of terms) one would just be on the lookout to dumb bonds in companies that A: are unionized and/or B: are looking a little pale in the financial solubility sense. Because when the government goes into town, you will not be able to negotiate with your most fearsome weapon (liquidation) and in essence, will just have to accept your money and walk away. Exactly the last thing anyone wants, holding their debt, and thus... Avoiding the whole proccess looks like a fantastic position.

 

[JimJones]

Metternich...you are so correct. My grandfather has his retirement coming from the state of Indiana, which he thought he lost. At 81 years old that would be hard to recover. Lucky for him his retirement was invested elsewhere. The 'fat cats' are not always wealthy elites. Sometimes they are just like the regular 'joe the plumber' type trying to earn a buck on an investment only to have the money stripped away from the gov. is just wrong. When a company enters into a bankruptcy it's the labor that usually gets cought between a rock and a hard place. In the case of both auto companies the labor unions already recieved their fair share through high wages and great bennies. When did the BK rules change? I guess a contract isn't worth anything since they voided AIG's employment agreements.

Dude...that was funny ieelosi!

 

[midcan5]

Rather sad really that some take joy in the failure of a great American company that the times and the buying habits of Americans has helped kill. The cheap foreign cars and the sheer variety hurt our companies; the tax incentives, lack of pensions and healthcare, helped the foreign cars, as well subsidizes from their own nations. Cheap sells in America look only at Walmart. Sad. Something I wrote a week ago or so.

Join me, please.

I was riding home today after a middle distance bicycle ride, tired and a bit out of shape when I started counting cars, America - foreign, American - foreign. It occurred to me if only a small percentage of these people, the people who can afford more than a used clunker, bought American there would be no problems in one of our largest industries today. And lots of people would have a job and lots of businesses would be OK. It may even help those incompetent bankers.

So I started giving thumbs up for American and thumbs down for foreign. Hard to distinguish which foreign car is made here, but no need I am a bit of a hard core American when it comes to cars. My '55' Chevy was my first love.

I'm sure the people thought me spastic, as my left hand thumb pointed up, then down, then up as cars drove by. Did anyone figure it out I wondered. Who is this nut! So if the whiners who lost the election can out of the blue, protest taxes, can we not protest something that has been going on for years due to cheaper prices, support structures, and no pensions, but still is having an insidious affect on our industrial base?

So if you own foreign go to you nearest mirror and give yourself a thumbs down and if you own American and thus support all of us and America, a thumbs up is due and thank you. Take to the streets and express yourself. The bankers thank you too.

Oh, and my bicycle is made in America too.

http://bumperstickers.cafepress.com/made-in-usa Made in America Sticker.

 

[DavidS]

This Monday, General Motors will file bankruptcy and we (all of us that pay our taxes) will become shareholders in the car industry. The problem is, no one ever called me and asked if I would be interested in this type of investment. I checked my email 2 or 3 times and still nothing. So what gives?

As it stands, President Obama is going to lead us in to purchasing 72% of GM with 18% going towards the United Auto Workers Union, and the other 12% going to the majority investors. This company has already drained about $20.0 billion from us in just a few months and with the restructuring we might be looking between $50.0B and $75.0B or more by time it’s all said and done. So how is this not breaking our constitution? If we the people wanted to keep GM, we all could have went out months ago and bought their stock. Since we didn’t, perhaps Obama should have taken the hint.

Since we will own GM via our ever spending government, who’s going to run it? Now if Obama can let Chris Dodd run the finances, perhaps he can get us a ‘sweet heart’ deal like what he got from Countrywide for his mortgage. The well spoken Barney Franks could run marketing and communications, as we all know he likes to hear himself speak. We could even let Pelosi and Reed designing cars. That would be the cars that the American people want to buy. I Sorry Obama, but there is only a small amount of the U.S. that wants to buy those little cars. We want Hummers, Corvettes, Mustangs, and F-150 trucks, not Mini’s.

I think we all knew that GM would end up filing for bankruptcy at some point or another. If I knew this and you knew this, why didn’t someone tell Obama? He must have been out of the loop again, just like the time they used his plane to take some pictures over New York City. If we knew GM was going to file for bankruptcy, why couldn’t we just let them do it at the beginning and save us $20.0 Billion dollars? We all know Obama wants to spend his way out of this mess. Instead of bailing out these big old out dated companies, why doesn’t he invest in bailing out small business? After all, small business represents 70% to 72% of all U.S. jobs.

Agriculture, manufacturers, commerce, and navigation, the four pillars of our prosperity, are then most thriving when left most free to individual enterprise. –Thomas Jefferson

-JimJones
www.BorderlineIQ.com
Jim Jones (BorderlineIQ) on Twitter

Funny, no one called me and asked me if it was OK to invade Iraq either and spend a trillion dollars on an unnecessary war. Stop your bitching.

 

[Kevin_Kennedy]

You know what you should do, Jim? Next election, vote for the party that was against bailouts.

IF YOU CAN FIND ONE!

AHAHA!!!

The Libertarian Party and the Constitution Party were against the bailouts.

 

[Metternich]

Funny, no one called me and asked me if it was OK to invade Iraq either and spend a trillion dollars on an unnecessary war. Stop your bitching.

A trillion, even two trillion, is now and days - statistically insignificant.

 

[alan1]

This Monday, General Motors will file bankruptcy and we (all of us that pay our taxes) will become shareholders in the car industry. The problem is, no one ever called me and asked if I would be interested in this type of investment. I checked my email 2 or 3 times and still nothing. So what gives?

As it stands, President Obama is going to lead us in to purchasing 72% of GM with 18% going towards the United Auto Workers Union, and the other 12% going to the majority investors. This company has already drained about $20.0 billion from us in just a few months and with the restructuring we might be looking between $50.0B and $75.0B or more by time it’s all said and done. So how is this not breaking our constitution? If we the people wanted to keep GM, we all could have went out months ago and bought their stock. Since we didn’t, perhaps Obama should have taken the hint.

Since we will own GM via our ever spending government, who’s going to run it? Now if Obama can let Chris Dodd run the finances, perhaps he can get us a ‘sweet heart’ deal like what he got from Countrywide for his mortgage. The well spoken Barney Franks could run marketing and communications, as we all know he likes to hear himself speak. We could even let Pelosi and Reed designing cars. That would be the cars that the American people want to buy. I Sorry Obama, but there is only a small amount of the U.S. that wants to buy those little cars. We want Hummers, Corvettes, Mustangs, and F-150 trucks, not Mini’s.

I think we all knew that GM would end up filing for bankruptcy at some point or another. If I knew this and you knew this, why didn’t someone tell Obama? He must have been out of the loop again, just like the time they used his plane to take some pictures over New York City. If we knew GM was going to file for bankruptcy, why couldn’t we just let them do it at the beginning and save us $20.0 Billion dollars? We all know Obama wants to spend his way out of this mess. Instead of bailing out these big old out dated companies, why doesn’t he invest in bailing out small business? After all, small business represents 70% to 72% of all U.S. jobs.

Agriculture, manufacturers, commerce, and navigation, the four pillars of our prosperity, are then most thriving when left most free to individual enterprise. –Thomas Jefferson

-JimJones
www.BorderlineIQ.com
Jim Jones (BorderlineIQ) on Twitter

Don't hold your breath waiting for a dividend check.

 

[Oddball]

Funny, no one called me and asked me if it was OK to invade Iraq either and spend a trillion dollars on an unnecessary war. Stop your bitching.

Non Sequitur Theater Presents......

 

[JimJones]

I believe this also raises a very worrisome condition of politics and corporate management. More explicitly, having to do with bonds and bondholders of companies of 'politically sensitive' companies. By which, using recent examples, General Motors and Chrysler, I mean the horrid way in which their holdings were considered. For in both motor companies, their unions will (GM) and have (Chrysler) been paid off nicely, the government second and finally the preferred - then not so - bondholders havebeen left with chump-change (literally). Which really, to most of the ignorant seem like an okay thing; it's just the rich who are getting minimal cents on the dollar (about 10 cents on the dollar, is one price that has been floated in GM); as was the case in Chrysler's bankruptcy, whether they like it or not. It's the labor that really "needs" the money. So screw those fat cats.

The problem is, however, that if the government continues its policy of taking over companies not because of rational, understandable, specific reasons but only when they look unstable in conjuction with the subjective term they are 'politically viable' - i.e. union votes - then as a bondholder (basically, someone who loans the company credit [money] - in the most laymen of terms) one would just be on the lookout to dumb bonds in companies that A: are unionized and/or B: are looking a little pale in the financial solubility sense. Because when the government goes into town, you will not be able to negotiate with your most fearsome weapon (liquidation) and in essence, will just have to accept your money and walk away. Exactly the last thing anyone wants, holding their debt, and thus... Avoiding the whole proccess looks like a fantastic position.

This Monday, General Motors will file bankruptcy and we (all of us that pay our taxes) will become shareholders in the car industry. The problem is, no one ever called me and asked if I would be interested in this type of investment. I checked my email 2 or 3 times and still nothing. So what gives?

As it stands, President Obama is going to lead us in to purchasing 72% of GM with 18% going towards the United Auto Workers Union, and the other 12% going to the majority investors. This company has already drained about $20.0 billion from us in just a few months and with the restructuring we might be looking between $50.0B and $75.0B or more by time it’s all said and done. So how is this not breaking our constitution? If we the people wanted to keep GM, we all could have went out months ago and bought their stock. Since we didn’t, perhaps Obama should have taken the hint.

Since we will own GM via our ever spending government, who’s going to run it? Now if Obama can let Chris Dodd run the finances, perhaps he can get us a ‘sweet heart’ deal like what he got from Countrywide for his mortgage. The well spoken Barney Franks could run marketing and communications, as we all know he likes to hear himself speak. We could even let Pelosi and Reed designing cars. That would be the cars that the American people want to buy. I Sorry Obama, but there is only a small amount of the U.S. that wants to buy those little cars. We want Hummers, Corvettes, Mustangs, and F-150 trucks, not Mini’s.

I think we all knew that GM would end up filing for bankruptcy at some point or another. If I knew this and you knew this, why didn’t someone tell Obama? He must have been out of the loop again, just like the time they used his plane to take some pictures over New York City. If we knew GM was going to file for bankruptcy, why couldn’t we just let them do it at the beginning and save us $20.0 Billion dollars? We all know Obama wants to spend his way out of this mess. Instead of bailing out these big old out dated companies, why doesn’t he invest in bailing out small business? After all, small business represents 70% to 72% of all U.S. jobs.

Agriculture, manufacturers, commerce, and navigation, the four pillars of our prosperity, are then most thriving when left most free to individual enterprise. –Thomas Jefferson

-JimJones
www.BorderlineIQ.com
Jim Jones (BorderlineIQ) on Twitter

Funny, no one called me and asked me if it was OK to invade Iraq either and spend a trillion dollars on an unnecessary war. Stop your bitching.

Our U.S. constitution is being broken every year by every president and I should stop bitching? Perhaps, you should start!

 

[Annie]

Considering what they did with Chrysler, I'm looking for more of the same, writ large.

 

[NOBama]

Considering what they did with Chrysler, I'm looking for more of the same, writ large.

The reality is: We (the government) will probably make money on these deals, but we aren't going to see a penny of it, nor are we going to get our "investment" money back. We (the government) will grow the government and give the bill to our kids. It’s generational theft and it’s happening on our watch.

 

[oreo]

If it's Federal Government run--for GOD'S sake don't put a dime into it.

It's a total LOOSER!

There hasn't been anything run by the Federal Government in the last 70 years that hasn't needed a bail-out.


"Government is not the solution--it's the problem" Ronald Reagan

 

[Meister]

The government has a vested interest in seeing GMAC, GM and Chrysler succeed, in order to recoup the billions in aid it has doled out to the companies. General Motors has received $15.4 billion in federal loans and Chrysler has received $5.8 billion. GM is currently negotiating to give the government a 50 percent equity stake in exchange for wiping out a portion of its debt as the company faces a June 1 deadline to restructure or head into Chapter 11 bankruptcy reorganization. It has requested up to $30 billion in additional loans from the Treasury Department to sustain its turnaround effort.
Government gives auto lender GMAC more money to shore up capital, loan to Chrysler car buyers -- chicagotribune.com

Wow, there is something just wrong with this. Under what other administration has anything like this happened? We are shelling a lot of money out, that may never be recouped. We have a government that will be dictating policy to GM, a once private company. The only winner is the UAW pension plans...it certainly isn't going to be the people flipping the bill for this.

 

[JimJones]

The government has a vested interest in seeing GMAC, GM and Chrysler succeed, in order to recoup the billions in aid it has doled out to the companies. General Motors has received $15.4 billion in federal loans and Chrysler has received $5.8 billion. GM is currently negotiating to give the government a 50 percent equity stake in exchange for wiping out a portion of its debt as the company faces a June 1 deadline to restructure or head into Chapter 11 bankruptcy reorganization. It has requested up to $30 billion in additional loans from the Treasury Department to sustain its turnaround effort.
Government gives auto lender GMAC more money to shore up capital, loan to Chrysler car buyers -- chicagotribune.com

Wow, there is something just wrong with this. Under what other administration has anything like this happened? We are shelling a lot of money out, that may never be recouped. We have a government that will be dictating policy to GM, a once private company. The only winner is the UAW pension plans...it certainly isn't going to be the people flipping the bill for this.

Meister ...I saw you list 15.4B, which is totally correct. I was including the $7.5B to GMAC Financial, which put's it around $20.B which is where I got the number for my posting.. Thanks for the reply to my last few posts ..gr8 info!