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 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.   

Auto industry bailout plan dies in the Senate

Collapse comes after bipartisan talks break down over union wage cuts

WASHINGTON – A $14-billion emergency bailout for U.S. automakers collapsed in the Senate after the United Auto Workers union refused to accede to Republican demands for swift wage cuts.

The collapse late Thursday came after bipartisan talks on the auto rescue broke down over Republican demands that the union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

“We were about three words away from a deal,” said Sen. Bob Corker of Tennessee, the GOP’s point man in the negotiations, referring to any date in 2009 on which the UAW would accept wage cuts.

http://www.msnbc.msn.com/id/28166218

THE PROPOSED AUTO BAILOUT BILL [With Analysis] Part 1

THE ACTUAL AUTO BAILOUT BILL

To authorize financial assistance to eligible automobile manufacturers, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

Mr. Frank

of Massachusetts introduced the following bill; which was referred to the Committee on

 

A BILL

To authorize financial assistance to eligible automobile manufacturers, and for other purposes. [This bill only addresses 1/2 the US Auto Industry – The “Old” half]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.(a) SHORT TITLE

 

 This Act may be cited as the

‘‘Auto Industry Financing and Restructuring Act’’.

(b) TABLE OF CONTENTS

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purposes.

Sec. 3. Presidential designation.

Sec. 4. Bridge financing.

 Sec. 5. Restructuring progress assessment.

 Sec. 6. Submission of plans.

 

Sec. 7. Financing for restructuring.

Sec. 8. Disapproval and call of loan.

Sec. 9. Allocation.

Sec. 10. Funding.

Sec. 11. Terms and conditions.

Sec. 12. Taxpayer protection.

Sec. 13. Oversight and audits.

Sec. 14. Automobile manufacturers’ study on potential manufacturing of transit vehicles.

Sec. 15. Reporting and monitoring.

Sec. 16. Report to Congress on lack of progress toward achieving an acceptable negotiated plan.

Sec. 17. Submission of plan to Congress by the President’s designee.

Sec. 18. Guarantee of leases of qualified transportation property.

Sec. 19. Coordination with other laws.

Sec. 20. Treatment of restructuring for purposes of applying limitations on net

operating loss carryforwards and certain built-in losses.

Sec. 21. Emergency designation.

 SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS

The Congress finds the following: [So to vote for the Bill, you need to agree with these findings?]

(1) A combination of factors, including errors in the business model of domestic automobile manufacturers, and emergency economic circumstances, has prevented the domestic automobile industry from securing credit from other sources, and has led to

[and the Detroit 3’s loss of over a 150 billion dollars over the past 5 years has prevented banks and investors from loaning money to the Detroit 3 – If it is a bad bet for Professional Investors – isn’t it a bad bet for taxpayers] 

the possibility of the failure of the domestic auto[If they say they will go out of business by month end – haven’t they already failed] mobile industry, which failure would have a systemic adverse effect on the economy. [Won’t throwing 100’s of billions of dollars of taxpayer money away on a failing set of businesses have an adverse effect on the Country]

 (2) Therefore, action in the form of financial aid to the domestic automobile industry is necessary to stabilize the economy. [Auto

[How does throwing good money after bad stabilize the economy? It doesn’t!] 

 (b) PURPOSES

 The purpose of this ACT are

 

 (1) to immediately provide authority and facilities(C) preserves and promotes the jobs of American workers employed directly by the domestic automobile industry and in related industries; [Every expert that testified before Congress and every Ceo to testify before Congress stated that “additional employment cuts” and “plant closings” would be necessary as part of the “restructuring” necessary to make the Detroit 3″ competitive – why isn’t this mentioned]

 (A) results in a viable and competitive domestic automobile industry that minimizes adverse effects on the environment [I’m relieved that we will worry about the environment before wwe worry about the taxpayor];

 (2) to ensure that such authority and such facilities are used in a manner that—ties to restore liquidity and stability to the domestic automobile industry in the United States; and(B) enhances the ability and the capacity of the domestic automobile industry to pursue  the timely and aggressive production of energy efficient advanced technology vehicles;

(D) safeguards the ability of the domestic automobile industry to provide retirement and health care benefits for the industry’s retirees and their dependents;  [these are the exact “costs” that the UAW needs to make concessions on – why does the bill imply they will not be changed? – Even the GM CEO stated that GM currently has 4 retires for every “active worker” – after the projected job cuts in 2009 GM will have 6 retires for every active worker – Are the US taxpayers to pay for the benefits that GM and the UAW c an’t afford?]

 The President shall designate 1 or more officers from the Executive Branch having appropriate expertise in such areas as economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency, and environmental protection (who shall hereinafter in this Act be collectively referred to as the ‘‘President’s designee’’) to carry out the purposes of this Act, including the facilitation of restructuring necessary to achieve the long-term financial viability of domestic automobile manufacturers, who shall serve at the pleasure of the President. [1). Will this Expert be like the “Trobled Asset Relief” Expert, who less than a month after the “TARP” was passed stopped buying “troubled assets” but continues spending taxpayor dollars however he pleases – with no transparency or accountability. 2). “At the pleasure of the President” – What? So the next President can appoint the UAW President to loot the US Treasury and Congress will have no say!]   

(E) stimulates manufacturing and sales of automobiles produced by automobile manufacturers in the United States. [They really mean “less than 1/2 of the autos produced in the US – the “New Auto Industry” isn’t included in this “handout” – some “autos” are considered “American” when the parts are made in Mexico and the cars are assembled in Canada] 

 

(b) ADDITIONAL PERSONS

The President or the President’s designee may also employ, appoint, or contract with additional persons having such expertise as the President or the President’s designee believes will assist the Government in carrying out the purposes of this Act. [Great, a whole new bureaucracy, paid for by taxpayor dollars, when there is already a system in place to do this – THE BANKRUPTCY COURTS – the Taxpayors are already fiunding the Bankruptcy Courts – why create additional expenses for the taxpayors. Does this Congress plan on giving every ailing industry their own “CZAR” so they can go through bankruptcy without calling it Bankruptcy].

(c) PARTICIPATION BY OTHER AGENCY PERSONNEL

Other Federal agencies may provide, at the request of the President’s designee, staff on detail from such agencies for purposes of carrying out this Act.

SEC. 4. BRIDGE FINANCING.

(a) IN GENERAL.—The President’s designee shall authorize and direct the disbursement of bridge loans or [without a restructing plan to make the “Detroit 3” competitive these are “bridge loans to nowhere”] enter into commitments for lines of credit to each autumobile manufacturer that submitted a plan to Congress on December 2, 2008 [WAIT ONE MINUTE – THERE WERE NO “PLANS SUBMITTED” on December 2, 2008. The Detroit 3 were given until the end of March 2009 to submit plans] (hereafter in this Act referred to as an ‘‘eligible automobile manufacturer’’ [So only 1/2 of the US Auto Industry is eligible]), and has submitted a request for such loan or commitment.

(b) AVAILABILITY OF FUNDS

All funds that are available pursuant to section 10 to provide bridge financing or commitments for lines of credit to eligible automobile manufacturers, after taking into account the reservation of funds under section 10(a)(2), shall be used for the purposes described in section 10(a). No new funds shall be available to any eligible automobile manufacturer for the purposes of this section after the date on which the President’s designee has approved restructuring plan under section 6 for such eligible automobile manufacturer. [So this funding could go on forever – there is no specific “stop date” – it is all left to the “CAR CZAR”]

(c) AMOUNT OF ASSISTANCE.—The President’s designee shall authorize bridge loans or commitments for lines of credit to each eligible automobile manufacturer in an amount that is intended to facilitate the continued operations of the eligible automobile manufacturer and to prevent the failure of the eligible automobile manufacturer, consistent with the plan submitted on December 2, 2008, and subject to available funds. [WAIT ONE MINUTE – There were no plans subitted on December 2, as was required – so now we are expected to fund loans while “the plans” are being developed! There has been no change in how they do business – no consessions from the Unions or suppliers, they haven’t identified which new plants will be closed – heck, they haven’t even shut down the “JOB BANKS” or “Full Pay for No Work” programs – enough of the talk, lets see some action]   

(d) ALLOCATION.—The President’s designee shall authorize the disbursements or commitments under this section in accordance with the allocation priorities set forth in subsections (a) and (b) of section 9.

 (a) ESTABLISHMENT OF MEASURES FOR ASSESSINGPROGRESS.—Not later than January 1, 2009, the President’s designee shall determine appropriate measures for assessing the progress of each eligible automobile manufacturer toward transforming the plan submitted by such manufacturer to the 

Congress on December 2, 2008, into the restructuring plan to be submitted under 6(b). to [Read that last paragraph carefully, it is the admission that the “restructuring plans” previously requested by Congress, were, in fact, not submitted on December 2, 2008) 

(b) EVALUATION OF PROGRESS ON BASIS OF RESTRUCTURING PROGRESS ASSESSMENT MEASURES

 (1) IN GENERAL

 

The President’s designee shall evaluate the progress of each eligible automobile manufacturer toward the development of a restructuring plan, on the basis of the restructuring progress assessment measures established under this section for such manufacturer. [What? Are they creating a new set of standards or are the standards used in other “bankruptcies” going to be applied]

(2) TIMING

Each evaluation required under paragraph (1) for any eligible automobile manufacturer shall be conducted at the end of the 45-day period beginning on the date on which the restructuring progress assessment measures were established by the President’s designee for such eligible automobile manufacturer. [THIS SURE REMINDS ME OF THE “TARP” or ‘Troubled Assets Relief Program. 1st, no one has submitted a restructuring plan, 2nd no one has defined how to measure if the plan is working – These issues have already been identified and defined – BY THE BANKRUPTCY COURTS – Why not use what is tried, tested and proven? Remeber, “TARP” authorized 700 Billion, however, the Government has extended 7 Trillion, or 10 times the approved amount, in just 2 months]   

SEC. 6. SUBMISSION OF PLANS.

(a) NEGOTIATED PLANS

(1) FACILITATION

(A) IN GENERAL

Beginning on the date of the enactment of this Act, the President’s designee shall seek to facilitate agreement on any restructuring plan to achieve and sustain the long-term viability, international competitiveness, and energy efficiency of an eligible automobile manufacturer, negotiated and agreed to by representatives of interested parties (in this Act referred to as a ‘‘negotiated plan’’) with respect to any eligible automobile manufacturer. [What? This is exactly what a “Bankruptcy does – with one major difference – In Bankrutcy – Taxpayor funded loans are not required – ZERO TAX PAYOR DOLLARS ARE PLACED AT RISK].

(B) INTERESTED PARTIES

For purposes of this section, the term ‘‘interested party’’ shall be construed broadly so as to include all persons who have a direct financial interest in a particular automobile manufacturer, including—

(i) employees and retirees of the eligible automobile manufacturer;

(ii) trade unions;

 

(iii) creditors;

(iv) suppliers;

(v) automobile dealers; and

 

(vi) shareholders.

[Obviously, a single person, THE CAR CZAR, can’t do this alone. So how many thousands of people will he hired and at what costs? Who will decide who gets hired and why? This is so much like the failed “TARP Plan” it is unbelievable. Why is it the “Detroit 3” can’t file for Bankruptcy Reorganization like every other business? Hasn’t Congress learned anything from TARP? The “TARP” hasn’t even finished setting up its “conflict of interests” protocols. protocols nexessary to make sure people are not just stealing taxpayor dollars]

A) ACTIONS OF THE PRESIDENTS DESIGNEE

(A) IN GENERAL

The purpose of achieving a negotiated plan, the President’s designee may convene, chair, and conduct formal and informal meetings, discussions, and consultations, as appropriate, with interested parties of an eligible automobile manufacturer. [Does this section eliminate the application of “Open Meetings Laws” – Does this section allow “closed doors” meetings?]

(B) CLARIFICATION.—The Federal Advisory Committee Act shall not apply with respect to any of the activities conducted or taken by the President’s designee pursuant to this Act.

 [Just what we need today – less Government transparency – So the public can’t track how its Tax Dollars are being spent. Let the “Detroit 3” use the existing “Bankruptcy Procedures where all transactions are an “open book”] 

(b) RESTRUCTURING PLAN

Not later than March 31, 2009, each eligible automobile manufacturer shall submit to the President’s designee a restructuring plan to achieve and sustain the long-term viability, international competitiveness, and energy efficiency of the eligible automobile manufacturer (in this Act referred to as the ‘‘restructuring plan’’) in accordance with this section. [I get it now – the Plans that were to be submitted on Deecmber 2, 2008 – have not been submitted – so we are going to give them the money anyway and beg them to get the plans turned in by March 31, 2009. I hope the put their dogs in the basement- I’d hate to hear that “the dog eat my plan” in March and have to give the “Detroit 3” another 90 days and Billions of additional dollars] The President’s designee shall approve the restructuring plan if the President’s designee determines that the plan will result in—

 

(1) the repayment of all Government-provided financing, consistent with the terms specified in section 11, or otherwise agreed to;

(2) the ability—

(A) to comply with applicable fuel efficiency and emissions requirements;

(B) to commence domestic manufacturing of advanced technology vehicles, as described in

section 136 of the Energy Independence and Security Act of 2007 (Public Law 110–140; 42

U.S.C. 17013); and

(C) to produce new and existing products and capacity, as described in section 14;

[Is a “Bailout Bill” the appropriate place to address “fuel” issues – I wish Congress, with its past track record, would just try to get one problem addressed at a time] 

(3) the achievement of a positive net present value, using reasonable assumptions and taking into account all existing and projected future costs, including repayment of any financial assistance provided pursuant to this Act; [This is what a Bankruptcy Court does – except, there would be NO taxpayor funds to repay]

(4) efforts to rationalize costs, capitalization, and capacity with respect to the manufacturing workforce, suppliers, and dealerships of the eligible automobile manufacturer;

(5) proposals to restructure existing debt, including, where appropriate, the conversion of debt to equity, to improve the ability of the eligible aumobile manufacturer to raise private capital; and

(6) a product mix and cost structure that is competitive in the United States marketplace.

 

SEC. 7. FINANCING FOR RESTRUCTURING.

 

Upon approval by the President’s designee of a restructuring plan, the President’s designee may provide financial assistance to an eligible automobile manufacturer to implement the restructuring plan.

SEC. 8. DISAPPROVAL AND CALL OF LOAN.

If the President’s designee has not approved the restructuring plan at the expiration of the period provided in section 6 for submission and approval of the restructuring plan, the President’s designee shall call the loan or cancel the commitment within 30 days, unless a restructuring plan is approved within that period. [Let me get this straight. The “Detroit 3” was told to “go home” and draw up “restructing plans” that would specifically identify how they would change the way the do busioness and adopt “new business models” that would allow them to survive and prosper in the future, and then – AFTER THE PLANS WERE DEVELOPED – to come back and ask Congress for money to help implement the “new plans”  – Obviously, the “Detroit 3” has not done what was required of them – This proposed “Act” hands out the money before the “Detroit 3” offers any specific proposals – There has been no substantive changes by the Detroit 3 since the last time they went to Washington to ask for this money. Please direct the “Detroit 3” to the Bankruptcy Court down the street.]

The full Congressional copy of the Bill can be viewed here: http://www.house.gov/apps/list/press/financialsvcs_dem/autobill.pdf

THE PROPOSED AUTO BAILOUT BILL [With Analysis] Part 2 – Here:  https://mcauleysworld.wordpress.com/2008/12/11/the-proposed-auto-bailout-bill-with-analysis-part-2/

CAR CZAR BUREAUCRACY OR “FRESH START” FOR “DETROIT 3” – What is best for America?

“If We Don’t Say Bankrupt” no one will notice the Detroit 3 are broke

I guess it isn’t so anymore ….. maybe the public has grown accustomed to being lied to …. or have we, the public,  just lost all of our common sense …….

The latest lie …… “Oh we can’t ask the “Detroit 3″ to file for Bankruptcy Reorganization, like any other Company or person ….” 

The reason – “No one would buy a car from a “bankrupt company”.

When I was young, a lie of this magnitude would have been called a “whopper” ……

At this point in time their are very few people who do not know the “Detroit 3″ are broke – they are in fact “Bankrupt” in every business sense – that is why they are seeking a “handout” of taxpayer money …….. The “Detroit 3″ owe 10’s of Billions of Dollars they can’t pay …. that is why they want a handout ……

Anyone who is unaware of the fact that the “Detroit 3″ are broke … will probably not notice if the “Detroit 3″ actually file for an official “bankruptcy”. As for the public’s willingness to buy cars from a “bankrupt car company”, I just don’t buy the argument – A funiture store near when I live has been holding “Going out of Business” sales  for 12 years now – the furniture store will pay your sales tax and you won’t pay interest on your purchase for 5 years …… I guess the store may be “going out of business” they are just doing it very slowly.

The American public understands “Bankruptcy Reorganization”. ”Bankruptcy Reorganization” does not mean “going out of business”.

Lets touch on some facts, BANKRUPTCY means that a company does not have the “means” or “money” to meet its financial obligations. If the Detroit 3 could meet their financial obligations (as Ford Motor Co might be able to do) there would be no “pressing argument” to support a “handout” of taxpayer moneys, there would be no need to give the “Detroit 3″ any money at all.

Pretending this is not the case should not “fool” anyone. Reporters, Politicians and the “Detroit 3″ are hoping it will fool the American taxpayor.  

There are 2 Types of Bankruptcy.  The first is Chapter 11 – which proivides a company the opportunity to “reorganize” its operations and continue on in business. The Second, Chapter 7, involves a liquidation or “sell off” of Company assests and the end of the business.  http://encyclopedia.thefreedictionary.com/Chapter+11 

Chapter 11 provides a Company a “fresh start”.  

Definition

When a troubled business is unable to service its debt or pay its creditors, the company or its creditors can file with a federal bankruptcy court for protection under either chapter 7 or chapter 11. In chapter 7, the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors. This is done in accordance with statutory defined priorities.   http://encyclopedia.thefreedictionary.com/Chapter+11

A chapter 11 filing, on the other hand, is usually an attempt to stay in business while a bankruptcy court supervises the “reorganization” of the company’s contractual and debt obligations. The court can grant complete or partial relief from most of the company’s debts and its contracts, so that the company can make a fresh start. Often, if the company’s debts exceed its assets, then at the completion of bankruptcy the company’s owners (stockholders) all end up with nothing; all their rights and interests are terminated and the company’s creditors end up with ownership of the newly reorganized company.     http://encyclopedia.thefreedictionary.com/Chapter+11

Rationale

In enacting chapter 11 of the Bankruptcy code, Congress concluded that it is often the case that the value of a business is greater if sold or reorganized as a going concern than the value of the sum of its parts if the business’s assets were to be sold off individually. It follows that it may be more economically efficient to allow a troubled company to continue running, cancel some of its debts, and give ownership of the newly reorganized company to the creditors whose debts were canceled. Alternatively, the business can be sold as a going concern with the net proceeds of the sale distributed to creditors ratably in accordance with statutory priorities. In this way, jobs may be saved, the engine of profitability which is the business is maintained rather than being dismantled, and, as a proponent of a chapter 11 plan is required to demonstrate as a precursor to plan confirmation, the business’s creditors end up with more money than they would in a chapter 7 liquidation. http://encyclopedia.thefreedictionary.com/Chapter+11

Details

All creditors are entitled to be heard by the court which is responsible for determining whether the plan of reorganization complies with the purposes of the bankruptcy law and provides for fair and equitable treatment of all parties in interest. http://encyclopedia.thefreedictionary.com/Chapter+11

Some contracts, known as executory contracts, may be rejected if canceling them would be financially favorable to the company and its creditors. Such contracts include labor union contracts, supply or operating contracts (with both vendors and customers) and real estate leases. The standard feature of executory contracts is that each party to the contract has duties remaining under the contract. In the event of a rejection, the remaining parties to the contract become unsecured creditors of the debtor. http://encyclopedia.thefreedictionary.com/Chapter+11

Chapter 11 is reorganization, as opposed to liquidation. Debtors may “emerge” from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time. After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be “confirmed” by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed the court may either convert the case to a liquidation under Chapter 7 or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to nonbankruptcy law in order to satisfy their claims. http://encyclopedia.thefreedictionary.com/Chapter+11 

Criticism

Some critics have claimed that Chapter 11 bankruptcy is excessively lenient in giving a needless “escape hatch” to the incompetent management of a failing company, damaging the efficiency of the economy as a whole and allowing poor managers to continue managing. It is unusual for the management of a company in Chapter 11 to be fired, as it is usually assumed that the present management team knows far more about the company and its customers than would a new set of management. [Bankruptcy laws do not prohibit the firing of Management] These critics note that in Europe, bankruptcy law is far less lenient for failing companies. 
http://encyclopedia.thefreedictionary.com/Chapter+11

Whether you call it BANKRUPTCY or not, the “Detroit 3″ are broke and are, in fact, BANKRUPT. 

A “Bailout” or “Handout” doesn’t guarantee the “Detroit 3″ will stay in business, it will simply delay the day of reckoning. THE KEY TO THE SURVIVAL OF THE “DETROIT 3″ IS THEIR SUCCESSFUL REORGANIZATION

Bankruptcy Reoraginzation doesn’t guarantee the survival of the “Detroit 3″ either – but “Bankruptcy Reoragnization” doesn’t gamble  Billions in taxpayor dollars either. Bankruptcy would provide the “Detroit 3″ with a “fresh start”, a “Bailout” just throws money at an “old problem”.

A “Car Czar” is not the answer – A “Czar” will just add layers of beauracracy over the true problems  

Definition: bu·reauc·ra·cy, n. pl. bu·reauc·ra·cies,   1. a). Administration of a government chiefly through bureaus or departments staffed with nonelected officials., 2. a). Management or administration marked by hierarchical authority among numerous offices and by fixed procedures: b). The administrative structure of a large or complex organization:3). An administrative system in which the need or inclination to follow rigid or complex procedures impedes effective action. http://www.thefreedictionary.com/bureaucracy

 The answer to how the ”Detroit 3″ should address their problems  is simple, straightforward, tried and tested ….. seeking other alternatives is just political posturing while individuals pursue “secret agendas” behind the scenes.

I guess that is what we call politics today –

The Politicians and Press who say otherwise are telling you another “whopper”.

THE AMERICAN PUBLIC DOES NOT NEED ANOTHER VERSION OF THE TROUBLED ASSET RELIEF  WHERE

a) Troubled Assets are not purchased

b) There is no transparency – the Government won’t even dilvulge what was purchased

c) An “Executive Oversite Committee” was to be appointed – Not a single appointment has been made todate. 

CONTACT YOUR CONGRESSPERSON – TELL THEM TO VOTE NO ON A BAILOUT AND SAY YES

TO A “FRESH START” FOR THE “DETROIT 3″.

CONTACT YOUR CONGRESSPERSON HERE: http://www.usa.gov/Contact/Elected.shtml

Ask yourself this – Do those who oppose Bankruptcy foolishly believe a “Bailout” will let things

continue as is?

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