More Smoke And Mirrors From The Obama Adminstration – Executive Compensation – What’s Up Now!

From The Obama Administration Just Days Ago:

All Bow to the Pay Czar

Fri Jun 5, 2009 1:08pm EDT

Masters of the universe, prepare to meet your special master. The Wall Street Journal reports that Obama has decided to appoint a pay czar to regulate executive compensation at federally bailed out companies. The appointment of Kenneth Feinberg as the “special master for compensation” is expected to happen next week. The official announcement should coincide with the release of executive compensation guidelines for firms that have received TARP money. According to the Journal, Feinberg will help these companies to understand the rules of paying their executives, as well discipline those who screw up. In other words, he should act like a strict teacher or a police man. But, in order to make his job sound a lot more intimidating than those commonplace occupations, he shall be called a master, a special one at that. Or, for short, the pay czar (which does not have the same zing as the “car czar” but still sounds pretty cool.)

http://www.reuters.com/article/bigMoney/idUS380322681620090605

Today The Obama Adminstration Announces –

Geithner: No caps on pay for corporate executives

Geithner says administration will not seek to cap compensation of corporate executives

WASHINGTON (AP) — Treasury Secretary Timothy Geithner says the Obama administration doesn’t want to place caps on executives’ pay.

Geithner said the shareholder measures, as well as legislation to keep corporate compensation committees independent from boards of directors, will reinforce pay guidelines that the administration released Wednesday. Those principles encourage corporate boards to adopt pay packages that reward long-term performance rather than short-term gains.

With the economy spinning out of control, millions out of work and homeless …. the best you can do is this double talk …….

Fawning Over Obama’s Mid East Trip, American Press Insults America’s Arab Allies

Please, enough already. World history did not start with the Obama inauguration.

Obama is not the first US President to visit the region referred to in the West as ‘The Middle East” and contrary to what may be printed by the intellectual bimbo’s running  the American Press, The United States of America enjoys very warm relations with billions of muslims around the world and has long standing partnerships and relationships with their Governments.

First, to those in the American Press who insist on displaying their ignorance, please do so without insulting b0th Foreign dignitaries and the billions of the Muslims that you write about and feign interest in.

The King of Saudi Arbia has a proper name and Title; King Abdallah bin Abd al-Aziz Al Saud. https://www.cia.gov/library/publications/world-leaders-1/world-leaders-s/saudi-arabia.html

The current Saudi King assumed leadership in 2005 upon the death of his half brother, Faud.

The Kingdom of Saudi Arbia, is ruled by a monachy and is, as is obvious, named for the ruling family; Saud – Saudi Arbia. The given names “Faud” and “Abdullah” are first names and not family, or surnames as they are called in the west. First names,  frequently referred to as “Christian” names in the West, are not, in fact, a proper form of address when you refer to the Saudi Monarch or a member of the Royal family.

Refering to the King as King Abdullah is as direspectful as refering to the American President as President Barack. An individual may be invited to address a ruler by his first name, however, that informal manner of address is both personal and private. To do otherwise is disrespectful.

The press should note that the most recent “Saudi Dynatsy” can trace its history back to 1744 and Muhhamad ibn Saud. That is right 1744, or 20 some years before the US claimed independence from Britian. The earliest history of the Saud family is centuries older. http://en.wikipedia.org/wiki/Saudi_Arabia 

As to the remainder of the articles by the  “Main Stream Media”, hyping the Obama visit to the “Middle-East”, the relationship between the Kingdom of Saudi Arbia the Saudi people and the United States of America is not dependent upon the “Obama Personality” as the press seems to imply.

Obama needs to stop reading his own press clippings and take advantage of this important opportunity to build on a decades old freindship between Saudi Arabia and the US, a relationship that did not start with Obama’s bow to King Saud at the G-20 meeting a few weeks back.

While the US press may have amensia when it comes to the inflamatory, anti-Saudi, anti-Middle East, Anti- OPEC, comments made by the inexperienced Presidential Candidate  Obama, the rest of the world and the Anti-American press does not.    

Obama had better shift to a tactic other than his well practiced “Obama Apology Tour” seen todate. Contrary to the liberal and leftist ideoology embraced by the American press, Muslim leaders and Muslim people around the world embrace the American presence and the ideology which this Country has represented for 200 years.  

In 2001, while addressing the United Nations, the present Saudi King,  Abdallah bin Abd al-Aziz Al Saud (then a Crowned Price and Deputy Prime Minister) said the following;

“Mr. President: The phenomenon of terrorism is still widespread in all parts of the world, although fluctuating considerably, and still requires greater effort from our organization in order to contain and combat it. The Government of the Kingdom of Saudi Arabia has always denounced all forms and shapes of terrorism, and added its efforts to those of the international community to address this serious phenomenon. What should be emphasized in this respect is that extremism, violence, and terrorism are global phenomena, not restricted to any people, race, or religion. In view of the internationalism and comprehensiveness of this phenomenon, addressing and combating it effectively can only come through agreed-upon international action within the framework of the United Nations, that ensures the elimination of terrorism, conservation of innocent life, and preservation of the supremacy and stability of the State.”

“Combating terrorism also requires international cooperation in not harboring terrorist elements and groups, and preventing their ability to exploit the territories and laws of the states in which they reside, and to make use of them as a springboard for their destructive activities, irrespective of the pretext or justification.”

King Saud’s speach is quite remarkable and I encourage readers to read the entire speech here:  http://www.un.org/millennium/webcast/statements/saudi.htm

I wonder what King Saud thinks about the current American President’s “political spin” on the war on terror.

King Abdallah bin Abd al-Aziz Al Saud has also spoken to the U.N. on the topic of religious tolerance. http://www.alarabiya.net/articles/2008/11/12/59950.html , http://www.alarabiya.net/articles/2008/03/25/47417.html , http://www.gulfnews.com/news/gulf/saudi_arabia/10259004.html .

The King has repeatedly noted that the key to world peace lies down the path of religious tolerance.

President Obama’s current trip to Saudi Arabia does not take place in a vacuum. Saudi Arabia, like the US, has been, and continues to be, a target of “terrorist activities” by extremists the world over. In June 1996, 19 American soldiers were killed in Alkhobar, Saudi Arabia. More than 500 were wounded. http://www.saudi-us-relations.org/articles/2003/ioi/030515-terrorist-targets.html                Five short years ago, on December 6, 2004, a group of terrorists staged a ground attack on the US Consulate in Jeddeh, Saudi Arbia, killing 5 employees of the Consulate. Later that month two vehicle borne improvised exposive devices (VBIEDS) were detonated in the Capital City of Riyadh. 

“Since it has become clear that the terrorists are targeting not only foreign interests, but the house of Saud as well, the government of Saudi Arabia has been leading an aggressive and increasingly successful counter assault on extremist elements in the country. The host government has acknowledged that this battle will not be concluded quickly.” http://www.ediplomat.com/np/post_reports/pr_sa.htm .

Two years earlier on May 12, 2003, Al- Qaeda homicide bombers killed 34 foriegners, including 2 Americans, at a housing complex in Riyadh.  On May 29, 2004, 24 oil company workers were killed by terrorists in Riyadh. During the week of June 11, 2004, 3 Americans and a BBC Journalist were killed. http://en.wikipedia.org/wiki/List_of_terrorist_attacks_in_Saudi_Arabia

The Saudi Government issued the following statement, ”

“…The attack was an attack on humanity. We reject the terrorists who express their hatred for our people and our friends through such cowardly actions. These terrorists have turned their backs on our people and they have perverted our faith; they do not in any way represent Islam. They only represent hatred towards all of humanity…”                                                                                                     

http://www.saudi-us-relations.org/articles/2003/ioi/030515-terrorist-targets.html

For a brief history (1979 – 2008) of terrorist attacks inside Saudi Arabia and the Saudi Government response see: http://en.wikipedia.org/wiki/List_of_terrorist_attacks_in_Saudi_Arabia 

This history is of particular importance if one wants a “fair” understanding of the complex relationship between the US and Saudi Arabia rather than the hastily cobbled “press releases” currently flooding the air waves.

Example: On November 20, 1979, hundreds of terrorists seized the “Grand Mosque” or “Masjid al-Haram” in Mecca, Saudi Arabia. The terrorists were extremely well organized and armed and were successful in withstanding attempts by the Saudi National Guard to retake the Mosque. Eventually, the Saudi’s requested and received assistance from the French GIGN (French Commandos) and together with Saudi Special Forces, the Mosque was retaken. Later 63 of the 67 surving “terrorists” were tried and sentenced to death. The total number of Islamic worshippers killed by the terrorists was estimated at more than 250. On November 21, 1979, Ruholla Khomeini of Iran made a radio address falsely attributing the Mosque attack to US forces. This false claim resulted in attacks against US Embassies and Consulates throughout the Muslim World. http://en.wikipedia.org/wiki/List_of_terrorist_attacks_in_Saudi_Arabia 

The US Embassy in Iran had been seized by Militants less than 3 weeks earlier on November 4, 1979.   

Faslehoods about the history of  US-Islamic realtionships abound.

President Obama cannot strength existing relationships by ignoring this fact. Vague apologies for acts that did not happen do not strength the positive relationships that do exist.

THE PRESS’ FAILURE TO UNDERSTAND THAT ISLAM DOES NOT EQUATE TO ISLAMIC TERRORISM IS DEPLORABLE. Muslim’s know this, so do American’s.

The US is not the lone target of these terrorists – speech making will not change that fact. The people of the MIddle East are not our enemies and they never have been … This is a fact that is well understood, despite whatever differences may remain.

 Most of Saudi Arbia’s neighbors, Jordan, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman, enjoy long standing, complex and  mutually respectful relationships with the US. These countries, like Saudi Arabia Arabic are also Muslim countries. 

I’m just amazed at the US press. Radical Islam is not confined to the Middle East. In fact only 20%, or 1 out of 5, of the Muslims in the world are “arabic” people. http://en.wikipedia.org/wiki/Islam_by_country

India has a history of a long and mutually prosperous relationship with the US. Islam is India’s second larget religion, with over 150 million Muslims in India. http://en.wikipedia.org/wiki/Islam_in_India 

Turkey, a long time US ally, is a non-arabic but majority muslim country. There are 71 million Muslims in Turkey. For those that are interested in a “factual context” of the global Islamic world, see : http://en.wikipedia.org/wiki/Islam_by_country

The Saudi King, Abdallah bin Abd al-Aziz Al Saud, has repeatedly spoken out against militant extremists in Iraq, Syria and Iran. “Saudi Arabia has told Iran not to count on the kingdom’s help if the international community imposes harsher measures on Tehran because of its refusal to abide by international requirements on the nuclear issue.” At a meeting in Riyadh last month (2007), King Abdullah told visiting Iranian President Mahmoud Ahmadinejad that Iran will have to “bear the consequences” of its actions, and should not underestimate the power, capabilities or will of the United States and the rest of the international community, according to a Saudi official. “We told him, ‘Don’t come back to us and say you wish somebody had told you that,'” the official said. “Don’t come back and ask for help.” The king was equally blunt with Syrian President Bashar Assad, whom he met in Riyadh on the sidelines of the Arab summit last month. Abdullah told Assad that if he wants to improve relations with Saudi Arabia — which are at an all-time low — he first has to prove his good intentions in Lebanon, according to the official, who spoke on condition of anonymity because of the sensitivity of the issues. http://www.beirutbeltway.com/beirutbeltway/2007/04/saudi_arabias_w.html

The American people and the World at large would be better served if the Press “reported” on world events and stopped “spinning” political events. Neither Islam nor the world hates America or Americans. President Obama’s “Middle Eastern” trip is not taking place in a vacuum nor is it taking place without substantial historical background.

President Obama needs to stop issuing senseless apologies and do something constructive to build on the work of not only his predecessors but of other world leaders.

The fact that the American President comes from an Islamic family is not new ‘news”, despite the President’s claims to the contrary during the election cycle. To imply that a non-muslim, from a muslim family, will “change” how “militant terrorists” view the US is simply ridiculous. The “militants” or “terrorists” target all of those who disagree with their narrow interpretation of the world, Muslim and Non-Muslim alike.

All of the political spin the media can muster will not change that fact.

The Saudi King is correct, the path to peace lies through religious tolerance, not political correctness or Jihad or “Holy War”.

Ask the American Troops who gave their lives on behalf of  Muslims Kosovo, Afgahistan, Iraq, Somalia. Morroco, Tunsia and Indonesia over the last 70 plus years.

If you are ignorant of history you are doomed to repeat it. If your ego is so large you believe history begins with yourself, you qualify as a megalomaniac.

Megalomania (from the Greek word μεγαλομανία) is a historical term for behavior characterized by delusional fantasies of wealth, power, genius, or omnipotence – often generally termed as delusions of grandeur or grandiose delusions. It’s a Greek word ,”megalo” meaning “very large”, “great”, or “exaggerated” and “mania” meaning obsession thus combining to denote an obsession with, either in the form of irrational perceived need for or preoccupation with in one’s own estimation having and/or obtaining, grandiosity and extravagance (especially in the form of great fame and popularity, material wealth, social influence or political power, or more than one or even all of the aforesaid) and accompanying complete desirous and bombastic abandon; a common symptom if not the key diagnostic feature of megalomania. It may be a symptom of manic or paranoid disorders. However it is not considered a distinct mental disorder of itself according to the Diagnostic and Statistical Manual of Mental Disorders.

http://www.reference.com/search?q=Megalomaniac

Also See: NARCISSISM or Narcissistic personality disorder

Obama’s Economic Programs Bog Down – Hollow Political Slogans Leave Empty Political Promises

The Obama Presdiency is now 6 months old – his election took place 7 months ago. He is 1/8 of the way through his presdeincy. Time for his Freshman Year mid-term grades ………..  

THE STIMULUS PACKAGE AND UNEMPLOYMENT 

Obama promises more than 600,000 stimulus jobs

WASHINGTON – President Barack Obama is promising to deliver more than 600,000 jobs through his $787 billion stimulus plan this summer, repackaging a pledge the administration made weeks earlier as the economy continues to lose hundreds of thousands of jobs each month. (THE LARGEST SPENDING PROPOSAL IN THE HISTORY OF THE WORLD – COSTING EVERY AMERICAN, MAN, WOMAN AND CHILD, THOUSANDS OF DOLLARS EACH. Even if  the Obama promise is kept it will cost the American Taxpayer $1.3 million dollars for every job created – WOW – what a success – a part time, make work, Government C ontsrtuction job that will pay a worker $20,000, true a much needed $20,000, but at what cost ! $1.3 Million per job? For those that doubt the math 787 Billion is written this way $787,000,000,000,. Divide that by the 600,000 and you get $1,331,000 per job.

Obama’s promise to create large numbers of jobs — a vow that Vice President Joe Biden made last month — quickly drew criticism from oponents and economists who have argued his stimulus plan thus far hasn’t delivered.

“I think these estimates are overly optimistic,” said Arpitha Bykere, a senior analyst with RGE Monitor.

The government reported last week that the number of unemployed continues to rise; the unemployment rate now sits at 9.4 percent, the highest in more than 25 years. Hundreds of thousands of Americans continue to lose jobs each month.

Just how much of an impact Obama’s recovery program had on the pace of job losses is up for debate. Obama has claimed as many as 150,000 jobs saved or created by his stimulus plan so far, even as government reports have shown the economy has lost more than 1.6 million jobs since Congress approved funding for the program in February. ( 3 million jobs have been lost since Obama was elected – more jobs have been lost since Obama’s election than during the enitire 8 years of the Bush presidency)

Republicans remain critical of the stimulus spending, slamming it as a big government program that ultimately will do little for recovery. With only a fraction of the federal money actually spent thus far, it’s premature to give the stimulus plan credit for economic trends, congressional Republicans said last week.

“I think the economy is just as likely to begin to recover on its own, wholly aside from this, before much of this has an impact. So I’m very skeptical that this massive sort of spending binge that we’ve engaged in is going to have much of an impact,” said Senate Minority Leader Mitch McConnell, R-Ky, in March 2009.

Obama initially offered his stimulus plan as a way to put people back to work, a promise that 3.5 million jobs would be saved or created. The administration’s predictions that unemployment would rise no higher than 8 percent already have been shattered. Unemployment stands at 9.4% and is rising. The Obama Adminstration’s projection at a worse case secnario for unemployment, 8.0%, has been crushed. Unemployment is already 25% percent higher and is rising.  http://finance.yahoo.com/news/Obama-repackages-stimulus-apf-15470798.html

OBAMA’S MORTGAGE ASSISTANCE PROGRAM 

NEW YORK (AP) — The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.

But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.

That’s the Catch-22 threatening to make an awful housing market potentially worse and keep the economy stuck in a funk. Kick-starting the economy requires higher spending, but rising rates mean fewer Americans will be able to refinance their home loans. And some potential buyers will be shut out of the market by higher monthly payments they won’t be able to afford.

Yields on 10-year Treasury notes, a benchmark for home mortgages and other consumers loans, jumped from 2.5 percent in March around the time of the Fed announcement to as high as 3.7 percent in recent days. 30-year mortgage rates jumped more than a quarter-point this week to 5.29 percent, the highest level since December, Freddie Mac reported.

“If the meltdown continues in the bond market, then mortgage yields will soon be at levels that choke off refinancing activity,” said economist Ed Yardeni, who runs his own investment firm. “Even worse, they could abort any necessary recovery in home sales and prices.”

One explanation is that bond investors anticipate a greater supply of government debt being sold to fund federal spending. Investors are also increasingly fearful that the trillions of dollars the government will need to borrow in the coming years to finance the various stimulus programs will lead to a new bout of inflation.

The White House estimates that the government will rack up an unprecedented $1.8 trillion budget deficit this year — more than four times last year’s all-time high. (THAT IS RIGHT THE OBAMA WHITEHOUSE ADMITS THEY HAVE INCREASED DEFICIT SPENDING 400% MORE THAN IN THE BUSH WHITE HOUSE)

“The bond market is calling the Federal Reserve out,” said Mike Larson, a real estate analyst at Weiss Research Inc. in Jupiter, Fla. “Investors are saying that the Fed can’t just print money out of thin air to finance a massive deficit.”

Fed Chairman Ben Bernanke acknowledged Wednesday in congressional testimony that large budget deficits could threaten financial stability by eventually eroding investor confidence and endangering the economy’s prospects for long-term health.

For a brief period of a few weeks sales of new and existing homes began to trend higher. Mortgage refinancings also jumped, allowing borrowers to lock in lower rates. Fee income from this activity helped lift profits at many battered banks and gave consumers more disposable income to spend, which helped lift their confidence about the economy’s prospects. All that was good for the nation’s businesses.But now, surging mortgage rates are threatening to undermine all that. Seventy percent of refinancing activity could be knocked out as rates close in on 5.5 percent, according to Mark Hanson, a managing director at the independent research firm Field Check Group of Menlo Park, Calif. (At the time of this posting rates have already climbed to 5.79 percent for those with “excellant credit”). Also, many homeowners who wanted to refinance didn’t lock in the super-low rates in April when the refi boom took off. “Half the deals in the pipeline are dead,” Hanson said. “People were applying to refinance to improve their situation, but now they are seeing it won’t be much improved.” All this means that even though mortgage rates are still low by historical standards, many of the trends that seem to be pointing to economic recovery in recent months could be undone fast.

http://finance.yahoo.com/news/ALL-BUSINESS-Bondmarket-rout-apf-15457158.html

12 percent are behind on mortgage or in foreclosure

AP

NEW YORK – A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. And the wave of foreclosures isn’t expected to crest until the end of next year, the Mortgage Bankers Association said Thursday.

The foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.

At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure. There were no signs of improvement.

The pain, however, is spreading throughout the country as job losses take their toll. The number of newly laid off people requesting jobless benefits fell last week, the government said Thursday, but the number of people receiving unemployment benefits was the highest on record. These borrowers are harder for lenders to help with loan modifications.

“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”

Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.

“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”

Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.

Mortgage rates above 5 pct for 1st time in 3 months

http://news.yahoo.com/s/ap/20090528/ap_on_bi_ge/us_foreclosures

In February Obama stood before a crowd of 50,000 in Phoneix Arizona and outlined his program – now, 4 months later here are rthe facts:

Under a program announced in February by the Obama administration, the government is to spend $75 billion on incentives for mortgage servicing companies that reduce payments for troubled homeowners. [The Obama Administration claimed the program would help 4 million home owners]. But three months after the program was announced, a Treasury spokeswoman, Jenni Engebretsen, estimated the number of loans that have been modified at “more than 10,000 but fewer than 55,000.” [Why can’t the Government be more exact than this – a 45,000 mortgage gap between 10,000 and 55,000. Where is the $75 Billion in Taxpayer money going? If the “true number” of modified mortagges is 10,000,  the Obama program cost taxpayers $7.5 million per mortgage. Who is kidding who? Someone is robbing the US Taxpayer blind, fewer people have been helped NATIONALLY than attented the speech in Phoenix] 

In the first two months of the year alone, another 313,000 mortgages landed in foreclosure or became delinquent at least 90 days, according to First American CoreLogic.

“I don’t think there’s any chance of government measures making more than a small dent,” said Alan Ruskin, chief international strategist at RBS Greenwich Capital.

Last year, foreclosures expanded sharply as the economy shed an average of 256,000 jobs each month. Since then, the job market has deteriorated further, with an average of 665,000 jobs vanishing each month.

http://www.nytimes.com/2009/05/25/business/economy/25foreclose.html?pagewanted=1&sq=May%2025,%202009%

OBAMA’S ENERGY PROGRAM.

Candidiate Obama and the Democrats, including Nanacy Pelosi, promised the American Publci to prusue and “all avalaible means” energy policy when it came to making America Independent. The promises included and increase in the exploration and development of domestic America’s gas and oil reserves. Democrats joinmed Republicans and echoed the chant or working Americans across this Country in a chant of “Drill Baby Drill”. Since agining office Obama and Speaker of the House Pelosi have blocked this development at every turn. Did you know that American Oil Companies offered to pay the State of California $45 Billion Dollars a year to develop off shore oil resources and the democrats refused. $45 Billion dollars, enough money to balance the budget of the State of California at the time. What have we received instead, empty promises. The price of a barrel of oil has topped $70 a barrel, thanks mainly to the activities of oil speculators, not to a sudden surge in the US economy, and gasoline prices are headed to $4.50 a gallon, manipulated by an Administration that wants artifically high gasoline prices to support the economic agenda of its finanical backers in the “Green Inustries”. How will $5.00 a gallon gasoline help the unemployed?

OBAMA ON FOREIGN POLICY

North Korea, Iran, the U.S. as apology central

Yes We Can, Yes We Can, Yes We Can ……… The question is “yes you can” what?

Obama’s First Term Freshman Grades: What do you think? Should they be higher or lower than what he earned at Columbia in his Freshman Year?  What were Obama’s grades at Columbia? No one knows, he won’t release the transcripts.

Obama’s Court Completes Gift Of Chrysler To Fiat; Chrysler and its workers will be history in 24 months.

Myth #1 – Fiat bought Chrysler.

Fiat paid nothing for Chrysler’s assets – so nothing was purhcased. As every consumer knows, in order to have a purchase “cash” or something of “value” must change hands. Nothing “left” Fiats hands, nothing of value was transferred from the Fiat balance sheet to the Chrysler balance sheet. You will read the following statement in Obama’s fawning main street media news accounts “The Italian automaker won’t put any money into the deal but will give Chrysler billions worth of small car and engine technology.” http://news.yahoo.com/s/ap/20090610/ap_on_bi_ge/us_chrysler_bankruptcy

This is simply a dishonest spin on the facts – there is no Chrysler – it is gone and the secured debt holders, including 100’000’s of retireees whose pension funds disppeared as part of this “gifting” are the ones who are paying the price. Fiat transferred nothing to anyone. Fiat already owned this “small engine technology”, Fiat is keeping this technology all to itself. CHRYSLER IS GONE, FIAT NOW OWNS ALL OF THE NOW DEFUNCT CHRSYLER’S GOOD ASSETS – for free. Thank you American Taxpayer. What a plan – What politics. What BS.

In his rush to “gift” Chryslere to Fiat, Obama has trampled American contract law and the Constitution, all at taxpayer expense. Wait till his supporters, the Teachers Unions and the like, who find out their retirement investments, placed in “secured Chrysler Bonds” are now worthless. $100s of millions of doillars of of hard working american’s lifetime savings, gone, in what is now worthless paper. Paper that was, until the Obama administration, a secure or “secured investmant”.  He talks about “sticking the rich” all the time – but anyone who thinks its OK to stick the “rich” will stick the middle class too ……… Your hard earned money is the nothing more than a “revenue stream” to the Democrats –

Myth #2.

Fiat has the small car technology that will save Chrysler.

Unlikely, Fiat is having problems saving Fiat.

Oh, you didn’t know Fiat is on the way to it’s own bankruptcy? Thank the American press for your ignorance.

There was a business reason Fiat had no presence in the US and had beed eclipsed by Hundai, Kia and Honda and Toyota all the other car companies of the world.

They have bad product. Very bad product.

Chrysler is gone. There is nothing to save. The question is “Will Fiat small engine technology save Fiat and provide work to former Chrysler workers?”. The answer, probably not and if it does the work won’t last long, but the gift of Chrslers remaining assets, which Fiat can liquiidate to pay it’s own bills, may buy Fiat some additional time for Fiat’s Italian workers at American taxpayer expense. 

That is how the European stock market is betting. Untilmately, the additional time Obama’s “gifting”  buys Fiat will be wasted because Fiat, like Chrysler, refuses to change its business model.

In August 2008 Fiat was worth $18.9 Billion US dollars, or $10.63 per share (euros/share) http://www.bloomberg.com/apps/news?pid=20601085&sid=a8rWnBvh8pvM&refer=europe .

In March 2009, before Obama announced his plan to gift Chrysler’s assets to Fiat’s value had fallen 75%, the creditors were at the door adn bankruptcy loomed in the immediate future. Prior to Obama’s announcemnent to “gift Fiat” Chrsyler’s good assets, Fiat was worth had fallen to a total of 2.5 Billion or  $3.75 (euros) per share. http://www.advfn.com/quote_Fiat_BIT_F.html 

Fiat’s auto sales have not rebounded, nor has Fiat’s business future brightened. The short term spike in Fiat stock price is due solely to Obama’s unprecendented gift of Chrysler’s good assets. Fiat will, in the not too distant future, begin to liquidate those assests to pay Fiat bills while those holding the original Chrysler debt go unpaid. In a way it reminds me of the mortgage mess, give something away for free, fraudlently call it an investment and stick the taxpayers with the bill.   

Myth #4

With the completion of the “gifting” of Chrysler to Fiat, Fiat will need to follow US Government Guidelines on executive compensation!

You are kidding right? Why are you stilling buying into these Obama scams?  Read, “Fiat planning to avoid cap on executive pay by Justin Hyde and Greg Gardner,The Associated Press. http://www.mlive.com/business/index.ssf/2009/05/chrysler_fiat_planning_to_avoi.html

Myth

The UAW got a good deal – they Own 55% of the “New Chrysler”

Well the UAW did better than US law would have allowed without the Obama Administration interference in the bankruptcy proceeding, moving unsecured creditors ahead of secured creditors in a bankruptcy proceeding, however, the UAW didn’t receive any “real assets”, they will only receive “stock” in the new Fiat controlled entity. Fiat is still free to liquidate the remaining “good assets” from the old Chrysler and leave the UAW holding wortless paper, the same way the secured creditors good screwed by Obama in the just concluded Chrysler Bankruptcy.

Welcome to the new world where contract law amd bankruptcy law are meaningless …….. where “prepackaged” means “we make up the rules as we go along” ……

Oh, are your asking how I came up with the 24 months before Chrysler disappears completely? Simple, check out Fiat’s cash burn to cash reserves, without adding in any operating expenses for the continuation of the Chrysler operations ………. then add 6 months of deficit spending by Fiat management. You can count on one thing – the Italian Government won’t sepnd a cent on the American component of Fiat and the American public will not allow the bailout of an Italian Car company…..  24 months and counting – do you want to bet the under or the over ………. 

What will happen to the 100 Billion Dollars of American Taxpayer money thrown down the rathole on this deal – over $3500 for every American alive today, man, women and child, old and young alike ………… $3,500

Say Ciao, Saluto, Arreviderchi baby …. it’s gone, the money is long gone  ….. and soon the the last of the Chrysler jobs will follow.

Smile, it’s just politics baby. You know CHANGE …. the CHANGE you voted for ………… YES WE CAN … YES WE CAN …. YES WE CAN

%d bloggers like this: