Obama Administration Just Can’t Stop – Another $5 Billion Down Auto-Maker Bailout Rathole – Congressional Approval Bypassed

You may have seen or heard this news snippet:

GM says it doesn’t need more cash in March. General Motors Corp. says its restructuring plan is starting to take hold, improving the automaker’s fortunes at least to the point that it won’t need a US$2 billion U.S. government loan instalment that it had requested for March.”   http://www.autonet.ca/autos/news/2009/03/12/8727786-ap.html

This article goes on to state that,

“Chief financial officer Ray Young said Thursday that GM formally told the Obama administration’s autos task force on Wednesday that it wouldn’t need the money this month. But in an interview with The Associated Press, Young would not say when the struggling automaker would need more government money or whether it will reduce the size of its loan request.  “It seems like our company-wide cost reduction efforts are moving well, as well as we’ve been able to defer spending that we previously anticipated in January and February,” Young said. “I think that’s a positive development.”

So, no additional cash is needed this month. Wow, what a remarkable turn around. 

Wait a minute, when something seems to good to be true, it usually isn’t true. Why, could something “be rotten in Denmark”, or in this case ”Detroit”. Might the Obama Administration be prevaricating again, say like feigning surprise over the AIG bonuses?

Auto suppliers to get $5 billion in aid – Government to provide financing for troubled auto parts suppliers

WASHINGTON (AP) — The Treasury Department, trying to stabilize the battered auto industry, said Thursday it will provide up to $5 billion in financing to troubled auto parts suppliers who are linked to Detroit’s carmakers.

The funds would be made available from the government’s Troubled Assets Relief Program, or TARP, said members of the Obama administration’s auto task force. It would create a financial entity similar to a revolving credit to provide financing for auto parts that large suppliers have shipped to the Big Three automakers but have not yet been paid for.

U.S. automakers — General Motors Corp., Chrysler LLC and Ford Motor Co. — would have the option of using the program and would be required to pay a 5 percent fee of up to $250 million to join. The car makers would designate the parts suppliers who need financing and the suppliers would have to agree to terms of the government-backed protection and pay a small fee for the right to participate.

GM and Chrysler, which have received $17.4 billion in government loans, said they would use the program. Ford, which has not sought the government aid, said in a statement it would not participate “as we remain viable and expect no issue with continued payments to our suppliers.”

Members of the auto task force, who spoke on condition of anonymity because their discussions have been private, said the financing was a first step in restructuring the auto industry. The panel is expected to provide a framework for the revamping of GM and Chrysler by March 31.

The move was intended to help with the cash flow needs and stability of distressed auto suppliers, whose collapse could lead to the disruption of car production by the Big Three and lead to significant job losses.

“The program will provide supply companies with much needed access to liquidity to assist them in meeting payrolls and covering their expenses, while giving the domestic auto companies reliable access to the parts they need,” Treasury Secretary Timothy Geithner said in a statement.  

Officials said foreign automakers with U.S. operations would not be eligible to use the so-called “supplier support program.”  

http://biz.yahoo.com/ap/090319/auto_bailout.html?.v=4

So if you work for one of the foreign owned, but domestically located auto plants, a plant that pays Local, State and Federal taxes in your Community – your employer and the Business that is a valuable member of your Community, will be put at a competitive disadvantage by using your private and that Companies Corporate tax payments to strengthen a competitor who made add nothing to your Community.

In addition, the Government will now make direct payment to the Auto Suppliers while GM & Chrysler will receive direct part shipments. I can’t wait to see the waste and cost control measures gone awry.

So now the Government will now make good on GM & Chrysler parts I.O.U.’s – payments that GM & Chrysler “deferred” so that the Government could make direct payment.

No GM did not need the $2 Billion March Bailout Money –  In it’s place the Government agreed to pay $5 Billion on behalf of GM directly to the GM parts creditors ….

Another payout at taxpayer expense – a plan with no plan – a bailout without an exit strategy – a public expenditure with no reasonable means of repayment ….

Isn’t enough … enough.

So GM doesn’t need any “March Bailout Money” 

What a sham! What a bunch of prevaricators!  

pre⋅var⋅i⋅cate

–verb (used without object), -cat⋅ed, -cat⋅ing.
to speak falsely or misleadingly; deliberately misstate or create an incorrect impression; lie.

evade, shift.

Obama Administration Prevaricates Again – GM/Chrysler Bailout Anti Increases By $5 Billion – Congressional Approval Bypassed Again

You may have seen or heard this news snippet:

GM says it doesn’t need more cash in March. General Motors Corp. says its restructuring plan is starting to take hold, improving the automaker’s fortunes at least to the point that it won’t need a US$2 billion U.S. government loan instalment that it had requested for March.”   http://www.autonet.ca/autos/news/2009/03/12/8727786-ap.html

This article goes on to state that,

“Chief financial officer Ray Young said Thursday that GM formally told the Obama administration’s autos task force on Wednesday that it wouldn’t need the money this month. But in an interview with The Associated Press, Young would not say when the struggling automaker would need more government money or whether it will reduce the size of its loan request.  “It seems like our company-wide cost reduction efforts are moving well, as well as we’ve been able to defer spending that we previously anticipated in January and February,” Young said. “I think that’s a positive development.”

So, no additional cash is needed this month. Wow, what a remarkable turn around. 

Wait a minute, when something seems to good to be true, it usually isn’t true. Why, could something “be rotten in Denmark”, or in this case “Detroit”. Might the Obama Administration be prevaricating again, say like feigning surprise over the AIG bonuses?

Auto suppliers to get $5 billion in aid – Government to provide financing for troubled auto parts suppliers

WASHINGTON (AP) — The Treasury Department, trying to stabilize the battered auto industry, said Thursday it will provide up to $5 billion in financing to troubled auto parts suppliers who are linked to Detroit’s carmakers.

The funds would be made available from the government’s Troubled Assets Relief Program, or TARP, said members of the Obama administration’s auto task force. It would create a financial entity similar to a revolving credit to provide financing for auto parts that large suppliers have shipped to the Big Three automakers but have not yet been paid for.

U.S. automakers — General Motors Corp., Chrysler LLC and Ford Motor Co. — would have the option of using the program and would be required to pay a 5 percent fee of up to $250 million to join. The car makers would designate the parts suppliers who need financing and the suppliers would have to agree to terms of the government-backed protection and pay a small fee for the right to participate.

GM and Chrysler, which have received $17.4 billion in government loans, said they would use the program. Ford, which has not sought the government aid, said in a statement it would not participate “as we remain viable and expect no issue with continued payments to our suppliers.”

Members of the auto task force, who spoke on condition of anonymity because their discussions have been private, said the financing was a first step in restructuring the auto industry. The panel is expected to provide a framework for the revamping of GM and Chrysler by March 31.

The move was intended to help with the cash flow needs and stability of distressed auto suppliers, whose collapse could lead to the disruption of car production by the Big Three and lead to significant job losses.

“The program will provide supply companies with much needed access to liquidity to assist them in meeting payrolls and covering their expenses, while giving the domestic auto companies reliable access to the parts they need,” Treasury Secretary Timothy Geithner said in a statement.  

Officials said foreign automakers with U.S. operations would not be eligible to use the so-called “supplier support program.”  

http://biz.yahoo.com/ap/090319/auto_bailout.html?.v=4

So if you work for one of the foreign owned, but domestically located auto plants, a plant that pays Local, State and Federal taxes in your Community – your employer and the Business that is a valuable member of your Community, will be put at a competitive disadvantage by using your private and that Companies Corporate tax payments to strengthen a competitor who made add nothing to your Community.

In addition, the Government will now make direct payment to the Auto Suppliers while GM & Chrysler will receive direct part shipments. I can’t wait to see the waste and cost control measures gone awry.

So now the Government will now make good on GM & Chrysler parts I.O.U.’s – payments that GM & Chrysler “deferred” so that the Government could make direct payment.

No GM did not need the $2 Billion March Bailout Money –  In it’s place the Government agreed to pay $5 Billion on behalf of GM directly to the GM parts creditors ….

Another payout at taxpayer expense – a plan with no plan – a bailout without an exit strategy – a public expenditure with no reasonable means of repayment ….

Isn’t enough … enough.

So GM doesn’t need any “March Bailout Money” 

What a sham! What a bunch of prevaricators!  

pre⋅var⋅i⋅cate

–verb (used without object), -cat⋅ed, -cat⋅ing.
to speak falsely or misleadingly; deliberately misstate or create an incorrect impression; lie.

evade, shift.

UAW GOLF COURSE TO BE SUPPORTED WITH BAILOUT CASH

Make UAW Sell its Championship Golf Course Before a Bailout

By EXAMINER EDITORIAL HOT ZONE
12/16/08


A view of the finely groomed Black Lake golf course owned by the UAW. (Michigan Golf)
What do UAW executives and workers do to relax? They play golf at the union’s highly touted championship caliber Black Lake Golf Club, designed by Rees Jones. The UAW golf club is in secluded Onaway, MI, as part of the union’s Walter and Mary Reuther Family Education Center. Also part of Black Lake are a learning center, a practice facility with practice bunkers, chipping and putting greens, and a small, nine-hole par-three Little Course.Golf Digest named Black Lake as one of top “upscale public courses.” And Michigan Golf described the course as a “classic” that includes “wide, well-groomed fairways [that] provide ample room for big hitters.” But some big hitters get special privileges at Black Lake. Tee times can be reserved up to two weeks in advance by UAW execs, compared to only three days for non-UAW duffers. Cost to play Black Lake is $95 per round.

Remember all the much-deserved bad press Detroit’s high-paid Big Three executives received last month when they flew in their corporate jets to beg Washington for a tax-paid bailout? Has anybody in Congress or the media bothered to ask UAW head Ron Gettelfinger about his union’s assets and perks like Black Lake Golf Club?

As head of one of the nation’s most powerful unions, Gettelfinger doesn’t earn nearly as much as Detroit’s top CEOs. GM’s Rick Wagoner, for example, made more than $14 million last year. But Gettelfinger’s total compensation of nearly $160,000 annually far exceeds the U.S. median gross family income of $61,500 and puts him among the top five percent of all tax filers, according to U.S. Census Bureau and IRS data.

And the UAW is anything but poor, with net assets reportedly worth an estimated $1.23 billion. UAW membership has been declining for years, as it has for most major unions, but annual income from member dues, interest and other revenues exceeded $300 million in 2006.  

UPDATE:

Michelle Malkin does some digging and comes up with a bunch more information, including a Detroit News investigation that found the Black Lake course is a big money loser for the UAW.

http://www.dcexaminer.com/opinion/Should_UAW_Sell_its_Championship_Golf_Course.html

LET YOUR CONGRESSPERSON KNOW WHAT YOU THINK – IS THIS WHAT CONGRESS PROMISED TO SPEND THE BAILOUT CASH ON?

http://www.usa.gov/Contact/Elected.shtml

Your Bailout Tax Dollars At Work – The UAW’s Gold Plated Golf Course

Money pit: The UAW’s gold-plated golf course

By Michelle Malkin  •  December 16, 2008 06:58 PM

President Bush and the Democrats are happily hammering out the final details of the UAW bailout. The union fatcats are laughing all the way to the…golf course. Their gold-plated golf course. Oh, wait, President Bush forgot to mention it.

And while everyone’s blabbering about “concessions,” here’s a question: If the auto CEOs have to give up their jets, what about the UAW brass and their posh resort?

Here:

Black Lake Golf Course

“Owned and operated by the United Auto Workers union, Black Lake is a public course that provides UAW members and retirees substantial discounts from the regular greens fees. But even at regular rates of up to $95 per round, Black Lake is worth the price. Tee time reservations are accepted up to 14 days in advance for UAW members, and three days in advance for public play.”

More:

Black Lake Golf Club is the newest addition to the UAW’s Walter and May Reuther Family Education Center, situated on 1,000 heavily forested acres along the southeast side of Black Lake, one of Michigan’s largest inland lakes near Onaway, Michigan.

Black Lake Golf Club complements the Center’s recreational facilities, which now include a beautiful gym with two full-sized basketball courts, an Olympic-size indoor pool, and exercise and weight room, table-tennis and pool tables, a sauna, beaches, walking and bike trails, softball and soccer fields and a boat launch ramp.

The UAW selected one of golf’s most acclaimed course architects, Rees Jones, to design an environmentally responsible, championship caliber course. It was a challenge eagerly embraced by Jones, Golf World Magazine’s “Architect of the Year” in 1995.

Like everything else we’re subsidizing, it’s a money pit:

Down a lonely country road far from the interstate hangs a banner at the UAW’s golf course: “Public welcome.” But a review of the golf course and adjacent education center’s financial statements indicate that not enough people have been visiting.

The UAW International’s golf course and education center operations on 1,000 acres near Onaway have together lost $23 million over the past five years, independent audits obtained by the Free Press show. Both are run as for-profit corporations, according to paperwork filed with the U.S. Department of Labor, and the UAW has been propping them up with loans.

“There’s a lot of debate over what to do,” said Arthur Wheaton, a union expert from Cornell University. “They’ve been having trouble there trying to get enough people to go through there to justify the expense,” he added.

…While the UAW International has a huge reserve of money, the union filed financial records with the federal government stating that it spent about $2.7 million more than it took in during 2007 — the third time over the past five years that the union spending exceeded receipts, records show.

“All you have to do is look at the membership trends and realize that there was a golden age when they could easily support the education center,” said Hal Stack, director of the Labor Studies Center at Wayne State University.

“It could be that either things turn around or they sell it,” he added.

From a peak of 1.5 million members in the 1970s, the UAW ranks have dropped to just 465,000 regular members, according to its most recent federal filings.

In 2007 the UAW had receipts — union dues, fees and other income — of $327.6 million and it spent $330.3 million. While losing members, the UAW International, since at least 2000, has been able to hold fairly steady in the amount of money it brings in and spends, according to federal records. It has $1.2 billion in net assets.

Gregg Shotwell, a UAW activist, is not troubled to learn that the education center is losing money. “When you are educating and training union members, that’s the business of the union. That’s never a loss,” Shotwell said.

But the golf course is a different story to Shotwell. “We should be running a union — not a country club,” he said.

The DC Examiner lambastes the UAW and its enablers: Make UAW Sell its Championship Golf Course Before a Bailout

http://michellemalkin.com/2008/12/16/money-pit-the-uaws-gold-plated-golf-course/

LET YOUR CONGRESSPERSON KNOW WHAT YOU THINK! – WAS THIS WHAT CONGRESS PROMISED TO SPEND THE “TROUBLED ASSET RELIEF PROGRAM” MONEY ON?  

http://www.usa.gov/Contact/Elected.shtml

END THE BAILOUTS NOW!

YOUR TAX DOLLARS AT WORK – THE AUTO BAILOUT – 30 DAYS PAID VACATION

$17 Billion Dollars of Taxpayor Money for Two of the “Detroit 3” – General Motors and Chrysler are to receive $17 Billi0n Dollars in Taxpayor money. Ford Motor Company, Toyota Motor Company of American, Hundai USA, KIA USA, Honda of America, Volkswagon of America, nor any of the other Automobile Manufacturing Companies in the United States will, as a group, receive nothing in support of their activities in this Country.

What are GM and Chrysler doing for this $17 Billion Dollars?

Here is what they are not doing: They are not scheduling meetings with the UAW to work out a “NEW BUSINESS PLAN” that will allow the Companies to survive and prosper. They are not scheduling discussions with their supplier chain or sales and distrubution networks. They are NOT USING THE TIME TO FINALIZE THE SHUT DOWN OF THE “JOBS BANK PROGRAM” – THE PROGRAM THAT PAYS WORKERS NOT TO WORK, FOR UP TO 4 YEARS.

What are General Motors and Chrysler doing with your tax dollars – they a re closing their plants and shutting down production for 30 days – USING YOUIR TAX DOLLARS TO PROVIDE THEIR EMPLOYEES A 30 DAY PAID VACATION AT TAX PAYOR EXPENSE.

I wonder if you cab double dip – collect your “Job Bank Pay” not to work and get your 30 day paid vacation at the same time. I’m sure the UAW would consider that reasonable.    

Let your Congressperson know how you feel about this use of taxpayor dollars.

http://www.usa.gov/Contact/Elected.shtml

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