Monday - June 01, 2009

GM: the takeover begins

What was that bit about “controlling the means of production”?

General Motors filed for Chapter 11 bankruptcy protection Monday as part of a plan under which the government will pump another $30 billion into the company with the aim of re-creating the troubled automaker.

GM’s bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

Under the plan, GM would eventually have 50 percent fewer liabilities and far fewer product lines. The $30 billion government infusion is on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.

Senior administration officials, who declined to speak for attribution, said the U.S. government will be a “passive” investor but will oversee operations at the new GM because “the taxpayer will want us to.”

Not one of President Obama’s senior economic advisers could or would venture a guess as to when taxpayers would see a return on their massive and White House-engineered investment.

“We’re not here to predict,” a senior official said when asked about any timeline for taxpayer payback.

The White House was more certain about GM’s future access to the taxpayer till—it’s over.

“One never says never, but this is it in terms of support for GM,” a senior official said.

GM will follow a similar course taken by Chrysler LLC, which filed for Chapter 11 protection in April and hopes to emerge from its government-sponsored bankruptcy this week.

The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.

One of the 5 greatest companies the world has ever seen, run into the ground by poor management, greed, excessive government regulation and unionism. And the tens of millions of investors ... get nothing. With the government(s) now owning absolute controlling interest in the corporation.

“We’re not here to predict” how long it will take for the gov to turn the company around and start paying back some of that nearly infinite amount of taxpayer investment. Yeah? Well I will. It’s called the Twelfth of Never. As in : No Business Run By The Government Will EVER SHOW A PROFIT, EVER.

I fully expect Ocommie to come up with a new law REQUIRING all citizens to purchase their next vehicle from either branch of Government Motors. Which will put Ford out of business pretty soon.

Now, let’s add to the bullshit. Let’s add another dozen sheep to the amount of wool being pulled over the citizen’s eyes. You want to know how CNN is covering this story? Like this:

How’s that for effective misdirection? Oh sure, in t h e o r y it’s correct, because of that whole “government of the people, by the people” thing. But the reality is that you, me, and everyone else will not have as much as a whisper’s worth of input.

This is an outrageous act of Socialism. Communism. Fascism. The label doesn’t really matter. It’s the government taking over business and dictating terms. It’s a total loss of freedom, a death knell rung on the golden bell of Capitalism, a usurpation of everything that America is supposed to stand for. Better for GM and Chrysler to go out of business.

And what does the Communist Newspeak Network see it? They are GLEEFUL. It’s Pop The Champagne Time over there. Here’s the link.

Note how the article has not one but TWO sidebar links to “GM’s junk heap” which list a dozen or so less than classic vehicles the company has made over the years. Like the “unsafe at any speed” Corvair, which had balance issues when the owners removed the front fender weights, and the Vega, which sold by the millions when America wanted a cheap little car that got good mpg [and let’s ignore the underlying theory of assembly line sabotage because this was one of the first American cars built with lots of robotized automation], and the Aztek, which was an odd looking but actually highly practical crossover vehicle. All of these vehicles were attempts to open up new market areas for GM. They were all about risk taking, which is what Capitalism is all about. Sure, in the long run they may not have all been the best ideas. That’s what “risk” means: sometimes you don’t get it right.

Notice that there are also two links to the other sidebar on “GM’s declining market share”. Yes, GM has lost market share for ages now. How much of that was due to the media I wonder?

PS - the price of gas is soaring, as if you didn’t already know that. Almost 20 cents in 2 weeks. Expect it to get worse, far worse. $3.50/gal by August. This cycle will continue until the new Obamamobile hits the market, with it’s 3 cylinder 40hp engine and a top speed of 48mph, which will get you around just fine on the 5 gallons of gas per week you are rationed for.

Posted by Drew458     on 06/01/2009 at 09:07 AM   
Filed Under: • Big Business • Commies • Corruption and Greed •  
• Comments (4) • Trackbacks(0)  Permalink •  

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