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

What Bailout Transparency? Banks Refuse To Disclose Where Money Is Going

IS THE AUTO BAILOUT NEXT?

Where’d the bailout money go? Shhhh, it’s a secret

By MATT APUZZO, Associated Press Writer

 

WASHINGTON – It’s something any bank would demand to know before handing out a loan: Where’s the money going? But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it.

“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,'” said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.”

The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?

None of the banks provided specific answers.

Some banks said they simply didn’t know where the money was going.

“We manage our capital in its aggregate,” said Regions Financial Corp. spokesman Tim Deighton, who said the Birmingham, Ala.-based company is not tracking how it is spending the $3.5 billion it received as part of the financial bailout.

The answers highlight the secrecy surrounding the Troubled Assets Relief Program, which earmarked $700 billion — about the size of the Netherlands’ economy — to help rescue the financial industry. The Treasury Department has been using the money to buy stock in U.S. banks, hoping that the sudden inflow of cash will get banks to start lending money.

There has been no accounting of how banks spend that money. Lawmakers summoned bank executives to Capitol Hill last month and implored them to lend the money — not to hoard it or spend it on corporate bonuses, junkets or to buy other banks. But there is no process in place to make sure that’s happening and there are no consequences for banks who don’t comply.

“It is entirely appropriate for the American people to know how their taxpayer dollars are being spent in private industry,” said Elizabeth Warren, the top congressional watchdog overseeing the financial bailout.

But, at least for now, there’s no way for taxpayers to find that out.

Pressured by the Bush administration to approve the money quickly, Congress attached nearly no strings on the $700 billion bailout in October. And the Treasury Department, which doles out the money, never asked banks how it would be spent.

“Those are legitimate questions that should have been asked on Day One,” said Rep. Scott Garrett, R-N.J., a House Financial Services Committee member who opposed the bailout as it was rushed through Congress. “Where is the money going to go to? How is it going to be spent? When are we going to get a record on it?”

Nearly every bank AP questioned — including Citibank and Bank of America, two of the largest recipients of bailout money — responded with generic public relations statements explaining that the money was being used to strengthen balance sheets and continue making loans to ease the credit crisis.

No bank provided even the most basic accounting for the federal money.

“We’re choosing not to disclose that,” said Kevin Heine, spokesman for Bank of New York Mellon, which received about $3 billion.

Others said the money couldn’t be tracked. Bob Denham, a spokesman for North Carolina-based BB&T Corp., said the bailout money “doesn’t have its own bucket.” But he said taxpayer money wasn’t used in the bank’s recent purchase of a Florida insurance company. Asked how he could be sure, since the money wasn’t being tracked, Denham said the bank would have made that deal regardless.

Others, such as Morgan Stanley spokeswoman Carissa Ramirez, offered to discuss the matter with reporters on condition of anonymity. When AP refused, Ramirez sent an e-mail saying: “We are going to decline to comment on your story.”

Most banks wouldn’t say why they were keeping the details secret.

“We’re not sharing any other details. We’re just not at this time,” said Wendy Walker, a spokeswoman for Dallas-based Comerica Inc., which received $2.25 billion from the government.

Heine, the New York Mellon Corp. spokesman who said he wouldn’t share spending specifics, added: “I just would prefer if you wouldn’t say that we’re not going to discuss those details.”

Lawmakers say they want to tighten restrictions on the remaining, yet-to-be-released $350 billion block of bailout money before more cash is handed out. Treasury Secretary Henry Paulson said the department is trying to step up its monitoring of bank spending.

“What we’ve been doing here is moving, I think, with lightning speed to put necessary programs in place, to develop them, implement them, and then we need to monitor them while we’re doing this,” Paulson said at a recent forum in New York. “So we’re building this organization as we’re going.”

Warren, the congressional watchdog appointed by Democrats, said her oversight panel will try to force the banks to say where they’ve spent the money.

“It would take a lot of nerve not to give answers,” she said.

But Warren said she’s surprised she even has to ask.

“If the appropriate restrictions were put on the money to begin with, if the appropriate transparency was in place, then we wouldn’t be in a position where you’re trying to call every recipient and get the basic information that should already be in public documents,” she said.

Garrett, the New Jersey congressman, said the nation might never get a clear answer on where hundreds of billions of dollars went.

“A year or two ago, when we talked about spending $100 million for a bridge to nowhere, that was considered a scandal,” he said.

___

Associated Press writers Stevenson Jacobs in New York and Christopher S. Rugaber and Daniel Wagner in

WHEN CONGRESS PASSED “TARP” THEY PROMISED THE AMERICAN TAXPAYOR COMPLETE TRANSPARENCY – CONTACT YOUR CONGRESSPERSON AND DEMAND TO KNOW WHERE YOUR TAX MONEY IS GOING !  NO MORE BAILOUT FUNDS !

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

 

Lame Duck Bush Caves In To Auto Bailout / Bush Places His Legacy Ahead Of Country’s Best Interests

Outgoing Presdient Bush sealed his legacy with Republicans and Conervatives today when he caved into his own self impoosed pressure to complete a “bailout” of the “Detroit 3” against the wish of the American Public.

Public opinion polls show resounding opposition to a “Bailout” of the “Detroit 3” and despite this opposition, Bush choose a path he believes will improve his “legacy” with the American people.

Once again, Bush has failed to consider the unintended consequences and ultimate costs his decisions will have for  the American taxpayor.

BUSH HAS PLACED HIS CONCERN FOR HIS OWN LEGACY OVER THE BEST INTERESTS OF THE AMERICAN PEOPLE.

The Political Bull Shit is just unbelievable. The “Bailout” is referred to as a “loan”, yet no one believes the ‘Detroit 3″ can “repay” the loans if the meaningless conditions imposed on the “loans” are not met. The “Auto Bailout” blueprint has been borrowed driectly out of the “TARP” plan and fund – none of the conditions placed on the “TARP” program have been implemented.   http://www.msnbc.msn.com/id/28311743?GT1=43001

Bush promised the “Detroit 3” 17 Billion in Taxpayor money – to be provided from the “Troubled Asset Relief Program” or TARP – a fund never intended to provide such funding. http://www.msnbc.msn.com/id/28311743?GT1=43001  So instead of buying “troubled assets” or mortgages the “TARP” will not be used to pay UAW members 85% of their salaries not to work …. Brillant, just brillant!    

Bush stated that “letting the Auto Companies collapse is not a responsible course of action”.  What a ridiculous proposition. Letting failed companies collapse is exactly what the Government does every day – The US Government does not guarantee the success of failed businesses – nor should it support failed business at the expense of successful businesses as Bush now proposes.

Bush pretends to propose a whole new set of “conditions” for receiving the “loans”, “conditions” which are identical to the unkept promises made by Congress when they passed the “TARP” legislation. The “conditions” are nothing more than “political window dressing” to limit the public criticism of this failed President and his failed Congress.

Treasury Secretary Henry Paulson is to provide the funding from the “TARP”, this despite the fact that Paulson refuses to account for the spending that is being undertaken under the “TARP” program ……

Harvard Law Professor Elizabeth Warren, the Chairwoman of the Congressional Oversight Panel for the “TARP”, continues to express her frustration over Paulson’s failure to account for how he is spending the Billions of dollars of Taxpayor money under  ‘TARP”.   http://www.foxnews.com/politics/2008/12/18/bailout-watchdog-wheres-spending-plan/    

AND THIS IS THE MAN WHO WILL PROVIDE AN ORDERLY “BAILOUT” TO THE “DETROIT 3” – AS OPPOSED TO THE ORDERLY ADMINISTRATION OF THE BANKRUPTCY COURTS.

I DOUBT PAULSON WILL  EVEN BE ABLE TO PROVIDE AN ACCOUNTING OF  WHERE THE MONEY HAS BEEN SPENT.

The Bush “handout” pays “lip service” to the “Detroit 3” completing a “restructuring program” – the same “restructuring programs” Congress demanded from the “Detroit 3” when they returned to Congress on December 2 –

You might recall that the “Detroit 3”  returned “empty handed”  to Congress in December  – that is right, they retruned without any type of plans – just renewed requests for taxpayor money.

The penalty for not having completed a plan to justify the requested loan – nothing – Bush granted $17 Billion in loans without any type of “reorganization plan”. A “take the money first” and come back with a plan later, if you like, approach. No wonder the “Detroit 3” can’t get a loan in the public market place – the Banks want to see the “restructuring plan” upfront.  

This is just incredible. Do you know that the amount loaned to the “Detroit 3”  is equal to every family in the Country making a $5,000 personal loan to the “Detroit 3”. If the professional lenders wouldn’t ake the loan with an “upfront” restructuring plan” why did Bush make that commitment on our behalf.   

I, like the the rest of the overwhelming majority of Americans, are opposed making such a loan.

WHY DOESN’T CONGRESS STEP IN AND STOP THIS?

THE UAW IS ALREADY STATING IT WILL MAKE NO FURTHER CONCESSIONS, GEE WHAT A SURPRISE.

The UAW has idled “Detroit 3” plants with strikes twice in the last 14 months. The UAW lies to its membership when it failes to admit the “true” hourly “all in costs” of its labor contracts. Neither the UAW nor its membership believe that concessions are necessary. It is no wonder that the ‘Detroit 3″ is stuck with a failed business model.  

Don’t you think that if a “voluntary” means of spanning these differences was possible, that path would have already been taken. Throwing $17 Billion down the drain while the Detroit 3/ UAW continue on as usual is a ridiculous path to follow. 

So what happens in 3 months after $17 Billion of “good” taxpayor money has been trown down this rathole – and the “Detroit 3” have produced no restructuring plan …… Does anyone really think the Detroit 3 will suddenly find the money to repay the loans – of course not. Everyone in Washington knows the money will be “lost”. No one is predicting that the economy is going to turn around in 90 days – in fact – the predictions correctly predict a continued worsening of the economy for the next 12 months – maybe longer if the Government continues to prusue the failed “Bailout” and “Loan”  policies.  

Do you think there will be a sudden demand for the product currently being produced by the “Detroit 3”. To imply that will happen is simply fiction. Gee, is the American public lining up to buy a “Volt” –  GM’s electrical car that won’t even come to market for 2 years and then the owners of the Volt can look forward to recharging their vehicle every 30 miles.  Is this is the vehicle that will save GM in the next 90 days?

So what happens in 90 days? Is GM or Chrysler going to be economically viable? NO they won’t! Will the American Taxpayor be robbed of additional funds to continue  to pay UAW members 85% of their salaries not to work? (YES, THE JOB BANKS ARE STILL OPERATING AT FULL STEAM).

Bush’s bailout of the “Detroit 3” is really nothing more than an adoption of the Plan proposed by House Democrats, the same Plan that was rejected by the American People and the Senate Republicans. 

This “Bush Bailout” does nothing to “demand” or require any changes by the ‘Detroit 3″/UAW – changes necessary for the “Detroit 3” to survive and prosper.

Listen closely to what the “Detroit 3/UAW are saying – they don’t really believe fundamental change is required – thus they are doomed to fail – it will jst be a matter time and of how many Taxpayor dollars are spent making “political paybacks” before the American public says enough is enough.

So the curtain comes down on the last term of Bush’s Presidency. As the curtain closed Bush choose a path he thought might improve his legacy, not the path that was best for America or the “Detroit 3”.

When it really mattered most for the American public, Bush placed his concern for how he might be remebered in the short term over what was “right” for America in the long run. A final serving serving act of a failed Presidency.

This “Auto Bailout” will not improve the “Bush legacy”. Unfortunately the “Auto Bailout”, like the “TARP” or “Bank Bailout” will prove to be a failure. By ignoring the American Public’s opposition to this bailout, Bush has succeeded in alienating his last group of supporters.

The “Bush Legacy” is certainly one of his own making.

The Current $17 Billion Dollars Fails to Provide Loan Guarantees for Ford Motor Company – The Proposal Provides An Immediate $9.4 Billion to General Motors (Over 3 times the present value of  GM – The Government could have bought General Motors for 1/3 of  the loan amount). The Plan calls for an immediate  $4 Billion For Chrysler (an amount over 3 1/2 times the current value of Chrysler company – again the Government could have bought the Chrysler for 1/3 the loan amount   

Providing loan amounts in excess of 300% of a Company’s Market Value Would Never Happen In The Private Marketplace.   

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