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

Obama Administration Trashes Contract Law In Chrysler Bankruptcy – DIRE WARNING FOR EQUITY INVESTORS

U.S. court seen clearing Chrysler sale to Fiat

At the end of 2008 FIAT had a “Market Cap”  of 15 Billion dallars. FIAT is currently worth 6 Billion and on the verge of bankruptcy in Europe – Why the rush through the American Court system – who is making Billions on the back of American Tax payers? Why “push” a “politically spun” Bankruptcy through the Courts to the advantage of Obama’s “Big Dollar Contributors” and at the expense of pension funds and workers across this country? 

NEW YORK (Reuters) – Chrysler looks set to clear its last major hurdle in its sprint through bankruptcy court as soon as Thursday, when a judge is expected to overrule more than 340 objections and approve its sale to a group that includes Fiat.

Less than 30 days after it filed for bankruptcy, the automaker seeks approval to sell its stronger operations to a “New Chrysler” owned by Italy‘s Fiat (FIA.MI), labor and the U.S. and Canadian governments, in exchange for $2 billion paid to its lenders.

Ten hours of hearings on Wednesday centered on cross-examining Chrysler’s former president and vice chairman, Tom Lasorda; financial advisor Robert Manzo of Capstone Advisory Group; and Alfredo Altavilla, the chief executive of Fiat’s powertrain business.

That testimony will be used in Thursday’s hearing, when hundreds of objections to the sale will be heard. The judge said the hearings might stretch into Friday.

Those opposing the sale include the nearly 800 dealers Chrysler wants to shutter, as well as debtholders and retirees. Suppliers, which are owed more than $5 billion, have also objected.

The sale will complete the White House’s goal of reorganizing the automaker in 30 to 60 days, largely thanks to government financing of the bankruptcy and Fiat’s role as a buyer. Chrysler shut its operations when it filed for bankruptcy, which lent weight to the argument that the sale needed to be approved quickly.

The compressed time frame has forced the court to accelerate hearings and cut notice periods short. Lawyers trying to block the sale were scrambling to gather complete depositions on Tuesday as the hearing approached and to dig through hundreds of thousands of documents.

Why have the time frames been cut short? Why is the Obama Administration preventing a proper review of the documents and a normal examination of the records and competing claims? At what cost to Taxpayers and investors? At who’s cost and who will benefit?  

The sale would free the automaker of $6.9 billion in loans and cumbersome retiree benefits that it blamed for its struggles against more nimble competitors. By teaming up with Fiat, Chrysler could expand beyond the U.S. market and diversify a product line now heavily weighted toward trucks and SUVs. Please! FIAT is near Bankruptcy and has never had a market for it’s cars in the US – How is this transfer of US Tax Payer money going to change these facts? Why is the Obama Administration giving FIAT Chrysler and shipping Billions in taxpayer dollars to Italy? Why isn’t FIAT putting up any cash in this deal? Why are US Taxpayers baing asked to fund a delay in FIAT’s bankruptcy? 

Much of the questioning focused on whether Chrysler explored alliances with automakers aside from Fiat and the role of the U.S. Treasury.

The government provided more than $8 billion in emergency loans to Chrysler before the bankruptcy and nearly $5 billion financing to carry it through the Chapter 11 reorganization, which has proven contentious. That is right, $13 Billion in taxpayer money to a priavtely owned company worth less than $1 Billion! (Market Cap = Outstanding Shares Of Company Stock x price per share = Market Cap. GM’s market “cap” is under $1 Billion, Chrysler “net worth” is less than 1/2 that amount!.http://www.thetruthaboutcars.com/ford-market-cap-4x-gm/   What type of common sense or business acumen is being applied here? Who is stealing this money from the American Taxpayer?

Manzo testified that banks rejected an offer from Chrysler prior to bankruptcy to swap their secured debt for half the equity in a restructured Chrysler. The banks chose instead to negotiate only with the government.

Glenn Kurtz, an attorney for White and Case which is representing Indiana pension funds opposed the sale to Fiat, read a March email in which Manzo appeared to cheer a proposal from the government to eliminate the banks secured debt after they rejected Chrysler’s offer of an equity stake.

The hearings started with Gonzalez rejecting a request to postpone the hearings to give more time to opponents, including the Indiana funds, to review the “hundreds of thousands” of documents received in the last few days as part of the discovery process.

That discovery process turned up one email that seemed to show Chrysler’s attorneys from the Jones Day firm questioning the government’s demand for a tight schedule for the sale process. The email called the accelerated schedule a mistake that risked the loss of credibility and threatened to “stuff the judge.”

http://news.yahoo.com/s/nm/20090528/bs_nm/us_chrysler_4

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