Union wins, investors lose in bailouts

One of the problems with the on-going negotiations involving the automobile companies, government and the union that helped destroy General Motors and Chrysler is that, when it’s all over, the union ends up in the driver’s seat.

The United Auto Workers, an extension of the Democratic Party, will wind up with a controlling stake in Chrysler.  General Motors bankruptcy filing is imminent and expectations are that the UAW will wind up with as much as 20 percent of the surviving company in exchange for wiping out $10 billion of the $20 billion that GM owes the union’s health care trust.  Bond-holders, meanwhile, are being asked to swap the $27 billion they’re owed for 10 percent of the company.  The government would get 50 percent for wiping out half of the $19.4 billion GM has gotten in bail-out money.  Shareholders would be left with 1 percent.

Bond-holders understandably balk, pushing GM to bankruptcy.  In the future, investors should and will be extraordinarily leery of investing in struggling businesses in competitive industries.  Government is, in effect, confiscating investors’ money and transferring it to the union and to government.   In the case of Chrysler, it confiscated money from teachers and policemen in Indiana and transferred it to the UAW.

Lawyers for the Indiana pension funds argued in court Tuesday that their rights were being trampled by the federal government in the Chrysler bankruptcy. The pension funds paid about 43 cents on the dollar when they bought Chrysler’s senior secured debt last August.  The government offered holders of $6.9 billion in senior secured debt 29 cents on the dollar, while giving creditors with a lesser claim — the UAW — bigger payouts.  The UAW, which is at least equally responsible for the auto industry’s plight, will end up with a 55 percent ownership stake.

The federal judge in Manhattan on Tuesday rejected the pension funds’ effort to delay today’s bankruptcy court hearing on Chrysler’s proposed sale.  Pension fund lawyers had argued that the federal government doesn’t have authority to provide Chrysler money for a sale, a point that the judge said could be argued after the bankruptcy court acts. Chrysler filed for bankruptcy on April 30 and a sale is expected to close by June 15.

120 comments Add your comment

Ray

May 27th, 2009
8:24 am

Those blasted workers! They ought be grateful we don’t count them as three-fifths of a person anymore!

Things always go south when people forget that some were born to serve!

Copyleft

May 27th, 2009
8:27 am

Jim, I realize this runs counter to everything the supply-siders chant at their weekly worship services, but…

Maybe the workers matter MORE than the investors do, hmmm? Maybe the idiotic supply-side, laissez-faire mentality is OVER because it was a proven failure. And maybe the new administration is focusing its attention where it belongs: on the working class, not the wealthy.

Rush Leader of the GOP

May 27th, 2009
8:46 am

Conservative radio host Rush Limbaugh blasted President Barack Obama on Tuesday for picking a “reverse racist” and “hack” in Judge Sonia Sotomayor for the Supreme Court.

“Here you have a racist — you might want to soften that, and you might want to say a reverse racist,” Limbaugh said of Sotomayor on his show, alluding to the New York federal appeals court judge’s past statement that a “wise Latina woman with the richness of her experience would more often than not reach a better conclusion than a white male who hasn’t lived that life.”

Liberals, “of course, say that minorities cannot be racists because they don’t have the power to implement their racism,” Limbaugh said according to a transcript on his website. “Well, those days are gone, because reverse racists certainly do have the power. … Obama is the greatest living example of a reverse racist, and now he’s appointed one.”

Asked about Sotomayor’s remark Tuesday, White House press secretary Robert Gibbs said that “if you look at the context of the longer speech that she makes, I think what she says is very much common sense in terms of different experiences, different people.”

Limbaugh used the line to accuse Sotomayor of being a “party hack,” though the radio host conceded that she will likely be confirmed.

“The odds that she could be stopped are long,” Limbaugh said, before turning fire on moderate Republicans who he thinks will be “completely useless” in opposing Obama’s pick.

“When the rubber hits the road, such as in this nomination, where are these moderate Republican groups on the nomination? Where are the moderate senators? Where is Colin Powell? Where is Tom Ridge?” Limbaugh asked.

“I’m the one doing the heavy lifting. Colin Powell panders to moderate Republicans,” he said. “If the moderates in the Republican Party offer no way to address this danger, then they are useless.”

Ga Values

May 27th, 2009
8:57 am

I am not pro union in fact I made my living buying & putting companies into bankrupcy. Your headline should read Workers, taxpayers, bondholders and stockholders lose, lawyers win. Our current bankrupcy law is a way that much of the cost, pension guarentees & unemployment , are shifted to the taxpayer to the benefit of the vulture investor. Personally I would like to see the law changed so that secured creditors are seperated by their investment value. For example a bond hlder that bought $1,000,000.00 face value for $1,000,000.00 should be treated differently than a vulture investor who bought the same face for only $1,000.00. This won’t happen but I can tell you that there are going to be fortunes made by Lawyers in this mess. I have seen estimates that the total GM legal cost will be over $100,000,000.00 most of it coming out of the taxpayer’s pocket.

Peter

May 27th, 2009
9:13 am

Jim where do you get off with this comment………”The United Auto Workers, an extension of the Democratic Party”………

Today you showed you are a HACK……..a sad old worn Out REPUBLICAN….just like your party of thieves, that ripped off the country for WAR ! Cost Plus contracts you never said a thing about.

HA HA HA……… HA HA HA………..as your party become less relevant, you cry more and more !

Too bad Bush didn’t force the auto makers to create better cars through tougher emissions, and how about the tax credit for buying a huge SUV ?…..but hey you would say let the markets work it out, and of course the Bush family oil business was MORE important than America………. Now you are CRYING like a baby !

HA HA HA…….. HA HA HA…….HACK !

Is America better after 8 years of BUSH ?………answer NO……..are the American People better off with Republican’s in the White House ?……. answer NO……..

Go cry to mama Jim !!!!!!!!

Davo

May 27th, 2009
9:14 am

I get it JW….your anti-union. That’s fine…however I’m not much concerned with your average Joe getting ahead in his union job whereas you think that it is the root of the problem. But hey; if you want to try to stir up votes for the GOP by turning whats left of the middle class on each other… more power to you. The sooner we throw the last shovel of dirt on the republican party the better. Get some Libertarians in office folks.

jt

May 27th, 2009
9:19 am

Copyleft wrote-
“And maybe the new administration is focusing its attention where it belongs: on the working class, not the wealthy.”

The working class better hold on to their wallets since the fed is focusing on them.

Redneck Convert

May 27th, 2009
9:21 am

Well, it figures Free Innerprize would get the shaft. The poor guy with only a few million bucks loaned to the co. gets next to nothing, while the UnPatriotic Unions make out like bandits. These union thugs caused all the problems and now they’re going to own a big chunk of the co. Meanwhile, the guys that loaned all the money to keep the co. above water will probly have to buy a real small yacht or cut back in other ways. It just ain’t fair.

Have a good day everybody.

Churchill's MOM

May 27th, 2009
9:25 am

Your link from the home page is screwed up AGAIN..time to retire.

Big Bucks GOP doing the Lords work

May 27th, 2009
9:27 am

Government officials in Britain and Germany indicated that they may
pony up emergency funding for Vauxhall and Opel, two General Motors
units currently on the block.

Big Bucks GOP doing the Lords work

May 27th, 2009
9:28 am

An affiliate of Harbinger Capital Partners won court permission on
Tuesday to try to reorganize the bankrupt copper miner Asarco, making
the hedge fund manager the third party trying to take control of the
company.

Big Bucks GOP doing the Lords work

May 27th, 2009
9:29 am

Following a plan unveiled by Morgan Stanley last week, Citigroup and
Bank of America are likely to soon raise base salaries for investment
bankers to compensate for limits on annual bonuses,

Big Bucks GOP doing the Lords work

May 27th, 2009
9:30 am

JPMorgan Chase stands to gain $29 billion windfall as a result of an
accounting rule that allows it to transform the bad loans that it
purchased from Washington Mutual into income,

Big Bucks GOP doing the Lords work

May 27th, 2009
9:31 am

Banco Santander, which funneled $3 billion of its clients’ money to
Bernard L. Madoff, agreed Tuesday to pay $235 million to settle
potential legal claims by the trustee liquidating Mr. Madoff’s
now-defunct brokerage firm.

Big Bucks GOP doing the Lords work

May 27th, 2009
9:32 am

Lawyers for Fiat argued Tuesday that in taking over a bankrupt
Chrysler, it would be an unfair burden if Fiat had to be responsible
for product-liability lawsuits filed over vehicles built by the old
Chrysler.

Lefty

May 27th, 2009
9:39 am

Peter…….

We all know who Jim W…. is.
Who are you with all your expertise?

Peter

May 27th, 2009
9:47 am

Hey Lefty……… What is Jim W’s Expertise ? A Right wing hack ? Like Rush ?

Ben

May 27th, 2009
9:54 am

All I can say is that I hope all you people who think this is such a great deal for America enjoy the times ahead when Obama’s decisions mean that NO ONE will give you credit. You won’t be able to get a credit card or a mortgage without paying HUGE interest rates, because no one in their right mind would lend money knowing that Obama might randomly decide someone else is more important and give your investment away.

Besides which, how can you people not give the union any culpability when their pay+benefits makes it far more expensive to build a GM car than a Honda? There are two sides to every negotiation, and the UAW is every bit as responsible as management. The only folks not responsible are the investors, and they are the ones gstting screwed over. Even the government shares the blame for the fall of Detroit, with shortsighted regulations, and overly favorable union laws.

D. Sanchez

May 27th, 2009
10:01 am

Bailout 2008 by David Jeffrey

Like a bloodied warrior,
laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,
the color of money.

And the soldier is an economy,
and it is anything but funny.

Broken are it’s people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.

Ward

May 27th, 2009
10:15 am

Government is taking over private corporations. That’s socialism, no matter how you spin it.

Kimba

May 27th, 2009
10:15 am

I love this David Jeffrey poem!!

Lefty

May 27th, 2009
10:16 am

Peter….

I do not read Jay Bookman or Cynthia Tucker. I do not agree with their point of view.
If Jim Wooten’s point of view bothers you so much that you get irritated, why don’t
you give it a rest and read other columnist that you agree with?

Peter

May 27th, 2009
10:20 am

Hey Lefty you have an opinion great……so do others………

ncgreybr

May 27th, 2009
10:20 am

Would someone please break down and get Jim an adding machine. This “fingers and toes” thing just doesn’t work with him.

Let’s see:
UAW- 20%
Bondholders- 10%
Gov.- 50%
Investors- 1%
——————-
81%

Who get’s the other 19%?

ncgreybr

May 27th, 2009
10:25 am

Ward: General Motors is NOT a private corporation. It is a publicly held corporation that WE, as taxpayers, are funneling BILLIONS of dollars in TAXPAYER money into, to keep it afloat. Maybe YOU don’t want something back for your investment but I sure do!

Glenn

May 27th, 2009
10:51 am

Jim Wooten,

This I think is the substance of the new socialism. It’s the sludge that will drag us down comfortably. It’s Italy.

Tell me about it, Jim. I’m heavily invested in G.E. and therefore am scewed. All those of us who put our faith and credit into American industrial might are screwed. These no longer are agile companies in search of the next profit; rather, they are looking sluggishly not to offend Washington, DC. It’s written.

ncgreybr

May 27th, 2009
10:53 am

“Ward”: General Motors is NOT a “private” corporation. It is a “publicly held” corporation that the US government is pouring BILLIONS of dollars into so it will not go under, taking the ecomnomy with it. Since some of those dollars are MY tax dollars, YES, I want the government to have some stake in it so they will have some say in how it is run. And (another) YES! I think my grandmother could run that place better than the people that have been running it! The whole world is churning out hybrids and other fuel efficient cars and GM is churning out SUVs.

Glenn

May 27th, 2009
10:55 am

but still, mcgeybr,

You prove yourself a true socialist at heart.

Pig.

Peter

May 27th, 2009
10:59 am

HA HA HA ……… Glen……..” This I think is the substance of the new socialism.”……. sure it is……but more likely the results of the last 8 years of terrible money management and made up WARS by Republican’s in the White House !

Who was the last Republican President to balanced a Budget ?

Leon

May 27th, 2009
11:05 am

Ward. That’s actually fascism, no matter how you spin it. Give Rush Beck a call and he can help you with your ism’s.

Road Scholar

May 27th, 2009
11:12 am

Limbaugh is in the same class as Colin Powell. Limbaugh resides under a rock.

Ward:”Government is taking over private corporations. That’s socialism, no matter how you spin it.” No, it’s crappy management by the Corp’s. Let GM fail; maybe Rush with his $100 million contract will support the workers?

Jim: Don’t like unions? No more OT, paid vacation days, health benefits, paid holidays… Oh you are retiring…You’ll only get health care if you pay for the ever increasing premiums! Do you think business gave those benefits because they are nice guys?

Joe

May 27th, 2009
11:22 am

It is a true shame that history is neither taught to/for nor understood by those who so gleefully, proudly and angrily advocate the demise of the capitalist investors. This is a pure and simple repeat of what happened during the last century. For the exact script, check Russia in the early 1900’s thru 1940’s, then Eastern Europe from the 40’s through the 70’s, from there creeping into Western Europe, and as our final prelude South America from the 70’s to the present.

All of you who favor the union’s getting favoritism, ask one question “just how many opportunities that lead to real jobs will the unions create?” The unions do not create real opportunity or real work that requires real labor – the core ingredients necessary for real jobs and the ability to sustain a respectable livelihood. Rather, the unions purely suck parasitically from those who create the jobs by investing capital and taking risk. Those who are such strong proponents of ‘workers rights’ eventually have one of two positions – well back in the bread line or trembling in the corrupt political ‘old comrade’ system of ‘toe the party line to get yourself taken care of, or be tossed out for the slightest misstatement.’

These are sad days and foretelling days. If the investors are not treated fairly by the rule of law – the law that says secured creditors come before unsecured creditors – then look out, your home is next. Make no mistake about this, comrade Obama will do to you whatever is necessary for the good of his state – the state that will create poor service, poor products, mediocrity and shortages.

After you get your way today, I suggest you start studying Chinese (multiple dialects). You will want to converse well with your supervisor and “boss” so you understand how he/she likes the toilets cleaned.

Slavery is a repugnant and distasteful term, heavily laden with historical and political significance in this country. Warm up to it. You are on the track to absolute subservience to the State.

Joe
Atlanta

oldtimer

May 27th, 2009
11:40 am

Some of those “evil, greedy” investors are members of state employees, teachers, and police retirement systems. Many made much less than the “poor” union employee. In many states state retirees do not get any medical benefits ect….only a small pension. Secured debt means when you invest money you should be paid first. That is why you invest it. This is called capitalism and it does work well if the government whould just back off.

William

May 27th, 2009
11:41 am

Would GM and Chrysler be in this mess if they made quality reliable cars that got great gas mileage? Nooooo blame the unions, the government, and Obama. Face it domestic cars suck.

Atlanta Native

May 27th, 2009
11:46 am

Regardless of your political leaning, the SECURED investors have a right to first dibs, because they are secured investors. That is the law. period.

Without the expectation of getting their rights as secured investors, lending will slow. When lending slows, workers get laid off.

Ignoring the rule of law may seem like a good idea at the time, but the law of unintended consequences will hurt across the board. Feel good regulation and legislation never turns out like one thinks.

@@

May 27th, 2009
11:53 am

Socialist Workers of America STAND UP and count the blessings handed you by your
power-hungry prophet. Selective abortion rules.

HT, RW.

~~~~~~~~OO~~~~~~~~

This piece reminds me…..there’s an interesting series being run at Stratfor. All about Putin and “His” oligarchs.

Phil Dolan

May 27th, 2009
11:53 am

Wooten’s not retiring.

Munch

May 27th, 2009
11:58 am

Thanks for the great post Joe. I haven’t laughed so hard in months. I’ve just caught my breath.

It really is a great satire of the extremist wingnutter view, and excellent parody. Are you really Captain Freedom under a new name?

Welcome back Glenn. Guess you couldn’t stay away.

Road Scholar

May 27th, 2009
11:59 am

Phil, Why? You don’t suppose Bush’s deficit spending and tax cuts took too large a toll on Wooten’s retirement investments, do you?

Jackie

May 27th, 2009
12:00 pm

The unions lost a contractual obligation and assumed the health care administration for its members to help both companies remain viable.

They agreed to lower pay scale and few worker protections.

I wish the media would have the courage to ask the Southern Senators in states where the automakers have moved en mass, what financial enumeration and investment strategies they have employed personally. Ask those same Senators what the average wage of the workers in those auto assembly operations what benefits the workers?

Road Scholar

May 27th, 2009
12:03 pm

Jackie, while you are asking, let’s ask what financial bribes, oh… I mean enticements did they make to attract those businesses? Or is it that southerners can be herded into jobs regardless of their benefits?

Algonquin J. Calhoun

May 27th, 2009
12:07 pm

Jim, the unions are here to stay! The automotive companies will become profitable again but no thanks to you. I bet you drive a Japanese car and hate American workers for having the intelligence to unionize. If you aren’t driving an American made automobile you are a traitor to the nation!

Fred

May 27th, 2009
12:18 pm

Economically ignorant sluts like CopyLeft and ncygaybeard are just scary. GayBeard thinks “publicly held” implies it’s held by the government. Well it is now but it aint supposed to be. It sure would be nice if their IRA’s were 100% in GM. Put their (lack of) money where their mouth is. Heil Obama! Right, you pathetic POS’s.

Dusty

May 27th, 2009
12:23 pm

There is something so basicly unfair here that it stands out like a sore thumb.

Workers who got paid for their work in a company now claim to own part of it?

If you buy material and pay someone to build a house for you, does the man who did the building now own part of it? I don’t think so.

Labor unions were good when they worked to improve the circumstances of the workers. Now it seems, they want to run the company, not work for improvement.

You cannot have two managerial groups running a company. GM has proved that point. Foreign companies know that the owners run the company, not the workers. They are not going bankrupt.

I do not know how a judge came to the decision of giving away parts of a company to those that do not own it. I guess he had EMPATHY, a word we hear frequently these days. It is begining to sound strangely like”Take from the rich and give to the poor.” Maybe we should call that the CHANGE of America from a republic to a regime of empathic socialism.

Koz

May 27th, 2009
12:25 pm

Algonquin J. Calhoun said: “If you aren’t driving an American made automobile you are a traitor to the nation!”

Does this only apply to automobiles? Am I not given traitor status for my Japanese tv? my Swiss watch? my Cuban cigars (shh)?

JLK

May 27th, 2009
12:29 pm

Okay, help me get the language straight now. It’s “socialism” when unregulated CEOs run large corporations into the ground with bad decisions and personal greed, and beg the government to bail them out — in the interest of the working people — so the government does, with stipulations, in the interest of the working people.

So, what do we call it when CEOs whose best buddies ARE the government, get open-ended, un-audited, cost-plus big gub’mint contracts for years on end, emptying our national treasury into private pockets and offshore accounts, and then those CEOs move their HQs overseas to avoid taxes, and if you so much as say, “Wait just a darn minute, now…” you are called a TRAITOR and a lover of terr’ists? What’s the correct word for that?

hryder

May 27th, 2009
12:32 pm

When one group of individuals is given preference over another group, when the law states otherwise, it is obvious that anarchy and total collapse of modern life could follow.

clyde

May 27th, 2009
12:36 pm

dave

May 27th, 2009
12:37 pm

Copyleft – I know this NEVER would occur to you, but maybe those investors are middle class folks, who actually thought about setting up a retirement plan and saved their money instead of counting on the government to take care them… silly people.

Glenn

May 27th, 2009
12:44 pm

I happen to like this spunky column. In fact, I defy anyone to name a sentence in it that’s not true and to-the-point.

Dusty

May 27th, 2009
12:46 pm

Road Scholar..not a scholar..ignorant about the South.

Southerners work for a livng and reject handouts. At one time, it was a disgrace to be on “relief”, a sign of “neer-do-wells”. But many came here from other parts of the country because it was so much better in the South. They started the “handout” business. Soon they demanded “handouts” as a right.

That was never a Southern trait. Southerners have long know the meaning of independence. They welcome the independent ones but will not claim the handout crowd of losers no matter how long they stay.

Be gone, Off the Road “Scholar”

Peter

May 27th, 2009
12:51 pm

Hey Dusty…our current Governor I guess is NOT a Southerner in your estimation ?

Heck he changed the law to save himself personally thousands of dollars alone in Taxes…..

He created his own Personal Hand out !

Glenn

May 27th, 2009
12:53 pm

Lordy, Dusty, is that really you? I’ve never associated you with vicious sectionalism.

RetLTC

May 27th, 2009
12:55 pm

Very very good JLK.

Dusty

May 27th, 2009
12:56 pm

Koz @12:25

Don’t pay any attention to Algonquin J. Calhoun calling foreign car owners “traitors”. He was calling American troops “murderers and rapists” just before Memorial Day. You might say his “judgement” is somewhat impaired.

Cmesmile

May 27th, 2009
1:02 pm

The Obama administration gives control of Chrysler to the unions. The Obama administration cherry picks closing dealerships with a hidden agenda. The Obama administration will tell Chrysler what to build (and *then* the people will come, we have to guess). GM will be next. Better sell your investments in GM now because you as a secured debtor will take an unlawful back seat to the UAW. Ford on the other hand has taken no money and are continuing to do their own thing well. Wait a year or two and I’ll bet those brilliant UAW members at Chrysler and GM will be begging for a job at Ford.

Now, let’s get this Sotomayer issue laid to rest once and for all. Republicans can’t filibuster because they’ll be called sexist AND racist. It was, of course, okay for the liberal/Dems to vote against or even hint at a filibuster for the two below Bush appointments who were of minority status (and later sworn in):

Clarence Thomas – Black

Samuel Alito – Asian

Grill Sotomayer just like the Democrats did to the above two men. Don’t forget to bring up her laughing comment about legislating from the bench (something the liberals were afraid of with the above two). We especially can’t forget her rule in favor of throwing out promotion tests for firefighters (ruling against the white firefighters who claimed discrimination) because minorities didn’t score high enough (and thus wouldn’t get promoted over whites). <== That’s a real keeper there!

Dusty

May 27th, 2009
1:02 pm

Yes, Glenn, honey chile, I get very vicious when bloggers disparage the South. Are you RedNeck Convert?

Glenn

May 27th, 2009
1:07 pm

Why, Heavens and sassafras, Dorlin’! Seems like I ain’t seen you since the Age of Fleas. Where you been, storing up all this hurt?

Jackie

May 27th, 2009
1:13 pm

@Road Scholar

Those jobs that moved South were because state laws are such they are what is known as right-to-work states. This simply means that if a company in that state chooses to fire an employee, for any reason, they can. As for the unions, if they go on strike because of labor issues, the company can replace the workers and violate the contracts signed with that union. The company does not have to negotiate in good faith, all they have to do is send a representative while the union negotiates with itself.

The average wage of most jobs at southern automobile manufacturers is $15 with no benefits or retirement.

Jackie

May 27th, 2009
1:16 pm

@Dusty

You continue to lie about the discussion relative to American troops in combat. If you would take 10 minutes to read and comprehend news reports concerning actions by troops in war, you would see that many of those things happen.

And, as far as I am concerned, you will be challenged by me anytime you speak those LIES!!!!!

Jackie

May 27th, 2009
1:20 pm

@Dusty

Still not telling the truth about what was said relative to acts some troops commit during war. Why do you think they have Leavenworth?

clyde

May 27th, 2009
1:22 pm

Dusty,In the beginning the South had slaves and they’ve just never come to terms about actually paying wages.

Chadworth

May 27th, 2009
1:23 pm

Jackie is not one to listen too around here. She effectively said the other day that we shouldn’t take the North Koreans seriously in their nuclear tests. The Russians are a helluvalot closer to N. Korea, and they damn sure are. You can also bet the Russians have intel on N. Korea that we don’t have as well.

http://in.reuters.com/article/worldNews/idINIndia-39913120090527

You emotion-driven libs need to leave the critical thinking to the adults living in reality..

DB, Gwinnettian

May 27th, 2009
1:24 pm

Leave it to Jim and the Incredible Shrinking Republican Minority to look at working class pensioners on one hand, and well heeled investment speculators on the other, and say “let’s make sure their losses are treated exactly the same! Else it’s just not fair!”

DB, Gwinnettian

May 27th, 2009
1:25 pm

You emotion-driven libs

Gun Control. Death Penalty. Abortion.

Yep, good thing conservatives don’t go injecting that silly emotion-thingie into political debates, huh?

Redneck Convert

May 27th, 2009
1:25 pm

Well, I’m awful glad they let Sister Dusty loose in that lab to say something. Just because you’re a moran don’t mean you ain’t got a right to put in your two cents worth. Even if some things are overpriced.

ncgreybr

May 27th, 2009
1:27 pm

Fred (speaking of pathetic POS’S)…since you don’t know me from Adam…

Yes, I’m one of those economically ignorant people who DO know that “publicly held” companies are companies that are owned by investors and are on the NYSE.

But you are showing everyone what a pathetic POS YOU are when you try slights like “gay” beard. Yes, as a matter of fact, GM IS in my 401K portfolio and I look forward to the day when it is a viable company again.

clyde

May 27th, 2009
1:30 pm

Redneck,
A genteel Southern Redneck would imitate Daffy Duck and say ,Maroon.

DB, Gwinnettian

May 27th, 2009
1:33 pm

A genteel Southern Redneck would imitate Daffy Duck and say ,Maroon.

Yebbut I’m sure RC was thinking of this famous Moran.

Jackie

May 27th, 2009
1:33 pm

@Chadworth

You are not one to listen to around here as the depth of your conversation is without merit.

The North Koreans are posturing, hoping that their bluster will get someone to help them out of their dilemma. Now genius, tell us what they are going to do after they have expended all their missiles and exploded all their nuclear weapons, unleash their million-man Army across the DMZ?

If North Korea is such a threat to the USA, why has it not attacked? Secondly, how would you solve the problem SLOW MOTION?

PeachState.com

May 27th, 2009
1:33 pm

I’m glad to see some of the socialist pretenders on this site have FINALLY come out of the closet. Fortunately, these ignorant Demtards will only be in power long enough for Obama to eff-up the economy. But it’s still informative to watch how they talk like little Castros. At heart, they’re just incompetent communists who want to enslave the productive classes.

Let the battle begin.

Peter

May 27th, 2009
1:36 pm

WOW….look at the REPUBLICAN’S……for generations they have discriminated against everyone….now everyone is a reverse RACIST………

Rush……Gingrich…….. Fat old white guys with BIG Mouths !

HA HA HA……… talk about watching a party come unglued……. makes you wonder if they all now have Alzheimer’s, or forgotten about US History !

The Republican’s have spent years making White folks RICH ! “Cost Plus Contracts”…….now that is some current History !

clyde

May 27th, 2009
1:38 pm

D.B.,
Good one.

Mort Merkel

May 27th, 2009
1:48 pm

The Steam and Pipefitters Union created jobs with their Konocti Vista Resort in NoCal. Lots of folks work there, including fading rock and country stars.

Atlanta Native

May 27th, 2009
1:48 pm

DB Gwinnettian

The rule of law says secured creditors come first. It has nothing to do with “well heeled investors”. You are buying the rhetoric, hook line and sinker.

It reminds me of Congress and the President complaining about the AIG bonuses that they required by law in the rushed through “stimulus package”. Everyone blamed AIG for doing what Congress and the President ordered them to do.

As for Mr. Wooten’s column, he too has bought into the rhetoric. Management designed, marketed and promoted crappy cars and the UAW demanded way too much money to build the pieces of $&*$. Both are at fault. The investors, however, are not at fault. Don’t listen to the left or the right, use your brains.

Mort Merkel

May 27th, 2009
1:49 pm

Sorry, Konocti Harbor. Konocti Vista is a Pomo casino.

Jackie

May 27th, 2009
1:50 pm

@Chadworth,

North Korea THREATENED to attack U.S. and South Korean warships if their ships are stopped and searched for weapons smuggling. Do you think they are going to carry out that threat against our Navy?

Care to respond with astute analysis?

Mort Merkel

May 27th, 2009
1:57 pm

In 1968, the North Koreans captured the USS Pueblo and held its crew, hanging them outside windows in the cold in their underwear and feeding them kim chee as every meal. Yuck.

Mac

May 27th, 2009
1:59 pm

Whaddya expect from a Cardinals fan?

DB, Gwinnettian

May 27th, 2009
2:01 pm

ATL Native wrote of the UAW and their employers: Both are at fault.

To be sure, but not for the reasons you gave, nor for what you usually hear about in the media.

I think it was mostly their unholy alliance that continued to legislate artificial props for vehicles that could be profitable only here in the US–monstrous “light trucks” that enjoyed CAFE breaks and (for the over-6000 pound class) huge tax breaks for businesses. Both parties lobbied for this nonsense for years, and we were left with an industry building stuff that we didn’t need.

And now you have a whole generation, practically, of American drivers who think they “need” to have three tons on four wheels to be safe on the road. It will take years to purge this toxicity out of the system.

Wow

May 27th, 2009
2:07 pm

Wow.. all republicans have, for generations, discriminated against everyone! Hyperbole really doesn’t stamp a statement with credibility, now does it? And, if this statement were true, how does that make discrimination from Democrats alright? And that’s the only logical conclusion one can make with this argument.

This is born from that age old argument used in fourth grade – “Nu-uh. You, too.” Shouldn’t people on this blog be at, at least, a high school level of debate?

ncgreybr

May 27th, 2009
2:16 pm

DB…I agree with you completely.”…monstrous “light trucks” that enjoyed CAFE breaks and (for the over-6000 pound class) huge tax breaks for businesses. Both parties lobbied for this nonsense for years, and we were left with an industry building stuff that we didn’t need.

And now you have a whole generation, practically, of American drivers who think they “need” to have three tons on four wheels to be safe on the road. It will take years to purge this toxicity out of the system.”

My accountant tried to get me to buy an Ford Excursion for the “business” because I could get a tax write-off for it. The origonal intent of the law was for farmers who use large trucks on their farms but that was hijacked by everyone with an inferiority complex that needed to keep up with the Joneses and get something bigger than their neighbor.

God only knows how many times my “little” nimble car has kept me out of accidents with those tanks driving down the road oblivious to everyone else.

ncgreybr

May 27th, 2009
2:19 pm

Sure wish this blog had spell-checccccck!

Munch

May 27th, 2009
2:24 pm

Cmesmile: Alito is of Italian descent, not Asian. I know you wingnuts live in a fact-free zone, but at least pretend to care.

Atlanta Native

May 27th, 2009
2:25 pm

DB,

I agree, though I think we are saying the same thing. However, the old adage “No one ever lost money underestimating the intelligence of the American people” doesn’t really ring true with the automakers anymore does it?

Wow

You just sent those who know how scrambling to find out what this “hyperbole” thing is and whether it as a Democratic handout program or a Republican gift to the rich. How disappointed they will be to find what it means. Fourth grade education level = high school graduate in reading these days.

To the rest

Think when it comes election time in 1 1/2 years – the Executive branch (president) and legislative branch (Congress) need to be from different parties. For 6 years Bush had a Republican Congress and stunk things up. Now Obama has a Democratic Congress and is stinking things up just as bad, if not worse. Clinton (Dem) had a Republican Congress and things went quite well – because they had to compromise and work things out. (And distract the country with fellatio stories, but I digress).

SO if you want the American People to win, not your “side”, make sure we get a Republican Congress for two years in at least one house. Next presidential election cycle, it’ll be up for grabs again.

Peter

May 27th, 2009
2:26 pm

WOW..Jim’s is a stock broker……. amazing comment !

“In the future, investors should and will be extraordinarily leery of investing in struggling businesses in competitive industries.”

Great call Jim……… Duhhhhhhhhhhhhh !

DB, Gwinnettian

May 27th, 2009
2:26 pm

The origonal intent of the law was for farmers who use large trucks on their farms

Well, and tradesmen, but the stupidity behind having a separate light-truck category actually goes back way farther than that, to some ill considered protectionist regs going back to the 60s, to protect Detroit from the scary, can’t-possibly-compete-with-it…

wait for it…

VW pickup truck. Ooh, save us Washington, from the evil German menace!

It really dates back to that, and didn’t get any more rational thereafter.

blondval

May 27th, 2009
2:29 pm

ncgreybr: Don’t you mean “spill chick”?

get out much?

May 27th, 2009
2:33 pm

Funny, I seem to recall a few months back that Mr. Wooten was all for bankruptcy for GM and Chrysler. At that time all he was concerned with was sticking it to the unions. Now, when it looks like he might get his wish, he suddenly realizes that there are other parties involved.

Dusty

May 27th, 2009
2:41 pm

Jackie@1:16

You can take up for your liberal buddy A. J. Calhoun but I wiil not agree with his indictment of American troops in general as “murderers amd rapists”. You are a veteran so what does that make you? Is that what you did in the army?

There are 2,475,967 Americans in our military forces fighting and protecting us. And you think it is OK to brand our troops as “murderers and rapists” because a few misfits out of millions did something wrong?

I have veterans in my family and I think such remarks are disgusting. You can sit around and approve of offensive remarks against the American Military but I won’t. And I don’t lie and neither do the archives of these blogs. Those rotten accusations are right there.

DB, Gwinnettian

May 27th, 2009
2:49 pm

ATL Native, yeah, I didn’t think we were that far apart. As to the investors’ rights, obviously they matter, but Jim is overstating things when he would have us believe that a bunch of schoolteachers banded together to purchase Chrysler stock in august 2008.

And I don’t think the automakers were helped by mass consumer stupidity (maybe that’s not what you meant but that’s kinda how I read it); I think consumers were directed into “light trucks” for a lot of reasons, not all of them irrational. Fact is though, if you’re going to have CAFE standards for passenger vehicles, have them–don’t exempt minivans, don’t call a a P/T Cruiser convertible a light truck, etc.

Actually, it seems painfully clear by now that we all would’ve been better off had we slowly increased gasoline taxes to pay for improved road infrastructure AND mass transit AND encouraged fuel economy, the way most of our competitors already did (Japan levied taxes on large-displacement engines, at least for awhile,w hich encouraged small-engine efficiency… hey, whatever works.)

But instead we went for cheap and easy. Chickens, meet roost.

TW

May 27th, 2009
2:53 pm

Mr. Wooten – while I disagree with much of what you say, I nonetheless have a high respect for your intellect. Yesterday’s pre-emptive strike in the form of leaving the SC appointment alone was the best move for the right. Unfortunately, the blowhards haven’t listened. Rush and Newt will drive the party even deeper into the septic tank with their recent antics. Stupid, stupid move on the part of Newt today.

I guess lay down with dogs, wake with fleas is for real.

Jackie

May 27th, 2009
2:58 pm

@ Dusty

No one said ANYTHING about rapists and murders in general during that conversation.
You are trying to do what you usually do, conflate, obfuscate and extrapolate.

Even some of the so-called conservatives on the blog during that conversation said to you directly, they would not participate in the conversation with you as you tried to disparage veterans. REMEMBER??????

Jackie

May 27th, 2009
2:59 pm

@ Dusty,

Apparently you have a problem recalling your statements or you have lost the ability to comprehend WHAT YOU SAID? Do your own research!!!

Jackie

May 27th, 2009
3:01 pm

@Dusty,

Amazing how my 3 replies to your scurrilous comments have disappeared!

Munch

May 27th, 2009
3:14 pm

Dusty plays the last refuge of the scoundrel card again, drumming up fake outrage over imaginary slights. It’s the Way of the Wingnut. It’s what they do when they have nothing of substance to contribute.

Now, turning again to the problem of allowing “empathetic” judges to impose their sorry personal history on the Sacrosanct Law of the Land, what can one say about an SC nominee as blatantly “empathetic” as this one? Surely this “activist” “empathizer” should be voted down for the good of the Nation!

“Because when a case comes before me involving, let’s say, someone who is an immigrant — and we get an awful lot of immigration cases and naturalization cases — I can’t help but think of my own ancestors, because it wasn’t that long ago when they were in that position.

[...]

When I get a case about discrimination, I have to think about people in my own family who suffered discrimination because of their ethnic background or because of religion or because of gender. And I do take that into account.”

That’s Sam Alito from his own confirmation hearings. What a Dirty Fu(|6ing Hippie.

Peter

May 27th, 2009
3:18 pm

Yes this is a silly statement……………..

“If you aren’t driving an American made automobile you are a traitor to the nation!”.

HA HA HA……….Our trade deficit is huge……..why ?

Because we don’t produce much…….most of the manufacturing jobs went away as Corporate America makes it money from cheap Foreign labor.

It is Corporate America who is the Great American Traitor !

Dusty

May 27th, 2009
3:26 pm

Jackie,

What’s YOUR problem? I know exactly what I said. I also know what A.J. posted.

Do you think I run this blog? Some of my posts have also disappeared. Soooo what? A vast conspiracy of some kind? More like a technical problem.

I hope you can get your mind unraveled soon. In the meantime, I have to leave for the day. Have fun!

Jackie

May 27th, 2009
3:39 pm

@Dusty,

I have told you many times, you are entitled to your opinion, you are not entitled to your own set of facts.

Having a comprehensive debate about anything does not present me with a problem, as I feel that I can hold my own with you and others. However, when you try to disparage veterans to bolster to argument(s), the line is drawn for me.

AJ Calhoun and others were in a combat zone and they saw and heard events that you may not believe. You, being a keyboard warrior, have not idea as to what you are talking about!

Again, my defense of any vet will be just that, as I know what each of us had to endure to come back to “the world.”

Peter

May 27th, 2009
3:52 pm

Jim is really Funny today……….. when did a investor ever WIN, as a company went Bankrupt ?

Dusty

May 27th, 2009
3:52 pm

Munch,

I am leaving but what is small to you is bigger to me because I am not as politically correct as you. When playing cards, a spade is a spade and not the Queen of hearts. I try to see things as they are.

I don’t like insults to our American troops.

I don’t like defenders of the law who believe that empathy is a better basis for law and order than executing the law as written. Empathy should come in the making of the law, not delivering it.

I don’t like skin color or upbringing as a vital issue for selecting a judge in the Supreme Court of our land. They may be an influence but they are not standards for excellency.

As to immigrants, I don’t have to think of ancestors. I can think of my family. We have a much beloved first generation immigrant who is legal and a fine character and a great addition to family and country. If I were a lawyer, should I consider my family experience or should I consider the law? I think the law should be first and foremost. Unless something has changed, illegal is still illegal.

Now, I am really gone for the day. Stay sober and sensible if possible.

AntiRadical

May 27th, 2009
4:47 pm

The right continues to foist the notion that the ‘free market’ can provide for the healthcare needs of our society and that universal coverage is nothing more than veiled socialism. The current plight of the automakers highlights the fallacy of this ‘right’ thinking. Why should it be the responsibility of business/industry to provide for the healthcare needs of American workers; what made it their responsibility? This only places an onerous burden on the business sector which in turn continues to erode its’ ability to compete in a global market where other governments have stepped up to the plate and shouldered this cost without burdening the business sector. Thinking right has never been more wrong.

Munch

May 27th, 2009
5:26 pm

Do you ever get the sense that when Dusty is riding her high horse, she is hanging on by the tail and taking on huge draughts of processed equine food? What ponderous nonsense, what empty umbrage against the imagined slights to her cherished tropes. What an examplar of feeling over thought, of imagination over fact. What utter bullshyte.

Why, some of her best friends are immigrants!

Munch

May 27th, 2009
5:32 pm

What kind of pu$$y minded President even worries about things such as empathy, anyway?

This one:

George HW Bush, July 2, 1991:

“I have followed this man’s career for some time, and he has excelled in everything that he has attempted. He is a delightful and warm, intelligent person, who has great empathy and a wonderful sense of humor. He’s also a fiercely independent thinker with an excellent legal mind who believes passionately in equal opportunity for all Americans.”

What a hippie. And he said it while he was introducing someone who went to an Ivy League school under affirmative action codes. Stupid hippie.

deegee

May 27th, 2009
7:12 pm

Over the last 20 years I have been investing a portion of my hard earned money in a 401K. Because of rampant mismanagement and corruption in the financial sector I have lost 34% of what I invested. Who is crying a river over that, Jim?

Munch

May 27th, 2009
7:22 pm

Another d@mned hippie caterwauling about “empathy”:

Republican Senator John Danforth on Clarence Thomas on July 16, 1991: “His empathy is with the disadvantaged people of this country. He would bring a perspective to the Supreme Court which nobody else brings.”

Fu(|3ing Hippie.

DrinkSlinger

May 28th, 2009
12:35 am

You know who actually won? The people at other car companies; Nissan, Honda, Toyota, etc… They decided a while back to work on the quality and fuel mileage of their vehicles. American motor companies dug the hole for themselves and refused to try and dig their way out. Instead, they relied on the American Taxpayer, who they have been ripping off for years, to bail them out. I say to hell with them, let other up-and-coming automakers take over their places in the market after learning lessons from their demise. The jobs will be transferred to other areas and other automakers…It may take a couple or so years, but it will fix itself. We are to the point that other companies cannot come up because the big companies keep them down… Let them have their chance. If the big 3 really wanted to keep their places in the industry, they would have done whatever they needed to do so… Including bankruptcy.

Caveman

May 28th, 2009
7:07 am

They removed Barr’s link to his anti drug prohibition editorial and replaced it with a second link to Wooter’s whining. I guess freedom is too controversial for the AJC.

Normal

May 28th, 2009
7:35 am

Some random thoughts here (I haven’t had my coffee yet).
Clyde: It was Bugs, not Daffy. I was in a union back in the 70’s
working for Ma Bell. We went on strike for a raise in pay and other
benefits. I lost hundreds of dollars while on strike and when it was
over, I figured it would take me 30 years to get that money back, IF
we never went on strike again. Also I lost more money to the union
because my dues went up because my pay went up! Now, that being said,
the really sad part is that Unions are still necessary because “Big
Business” will not deal fairly with its workers. If honest and fair
negotiations would take place between management and the work force,
no unions would be necessary.
Hmmm, but “Big Business” and fairness…It’s a good thing I believe
in Never, Never Land.

Copyleft

May 28th, 2009
8:24 am

Munch, I’m loving your exposure of the right-wing’s hypocrisy on all the stuff they suddenly find “unacceptable” now that it’s coming from a liberal speaker!

Bubba

May 28th, 2009
8:28 am

Copyleft
where will the workers work if the investors don’t invest??

willie

May 28th, 2009
8:48 am

Can anyone name me a company that has been successful that used Union workers? I can not come up with one. I know union workers get higer pay for less work.

Their quality of work is really never publicized. The only union workers I know bankrupted the business that is near us.

Oh well, why pay a man $18 an hr to hang 80 lights when you can pay a union work $25 an hr to hand 40 lights. Can not work to hard because it is a safety hazard–right.

Buzz G

May 28th, 2009
9:00 am

The real loosers are the taxpayers. The tile should have been: Unions Win, Taxpayers Lose.

Whipkey

May 28th, 2009
9:20 am

Please do more research on this topic and how bankruptcy works in general. You don’t completely understand the topic and your article reflects it.

William H. in Lithonia

June 5th, 2009
10:28 am

Unions were the biggest part of the Golden Age of the American middle class. So was government spending with the GI bill, infrastructure investment and corporate tax rates of 90%. Since the Reagan Religious Bigot revolution, we’ve seen a growth in prisons and national debt while we’ve experienced a deterioration in wages, education and unions.

I guess republican religious bigots just yearn for the good ole days of economic feudalism and religious inquisitions from thier city on a hill, but I don’t.

William H. in Lithonia

June 5th, 2009
10:30 am

60% of bankruptcies are due to health care emergencies. I guess republican religious bigots yearn for the good ole days of leeches and witch doctors where hospitals were places for people to go and die with no hope of getting better.

William H. in Lithonia

June 5th, 2009
10:34 am

I’d say the taxpayers loose when their wages are cut more than when they pay taxes for benificial government services.

Yet republicans not only cut taxes on the rich, they’ve put us in debt when the economy was good, they’ve redirected government spending on counter-productive drug war prisons (50% of your local taxes go to jails – 90 Billion nationally to the drug war). Health care and energy costs have eaten up any raise we may have gained, yet the republican answer is more war and debt.

Republicans are simply traitors to this country, to humanity, and to the god they claim to kill in the name of.

Pubs=Pscych Talk

June 8th, 2009
7:12 pm

Wooten be all confused and Ruthie the G. one of the few Supremes with real litigation experience has done stayed the bankruptcy. That ain’t a bad thing considering how the Republicans at Cerebrus have been screwing you and not the unions.

He also ain’t been listenin’ to his honey the fired Van Sustren on his favorite TV station Faux News.

Bush and Paulson gave a sweetheart deal to Cerberus run by their Repubilcan cronies who are steaing your tax dollars.

To quote blogger Marcy Wheeler who comes armed with a Ph.D. in Poly Sci from the University of Michigan–it ain’t McRae JawJaw or even Athens, but what the hell:

“He did so in two ways. First, in Christmas week negotiations that no one followed, Bush allowed Cerberus–and not Chrysler–to negotiate the terms of the December loan to Chrysler. And then Bush gave Chrysler just $4 billion–much less than Chrysler said it needed to survive those three months (by comparison, Bush gave GM more than they asked for). And even though Cerberus (and not Chrysler) negotiated that loan, Cerberus was barely on the hook to pay any of that money back. Given that Cerberus was trying to dump Chrysler on the UAW and bondholders at the time, the arrangement seems designed to drive Chrysler into liquidation without Cerberus losing much more on the deal.

And while Bush couldn’t find time to negotiate some kind of way forward for Chrysler (which Bush seemed determined to kill) or GM (which we know he was determined to keep alive for 90 days so Obama would have to deal with it), he did find time to negotiate bank status of GMAC in the last days of December last year. Now, Cerberus had to dole out 36% of its ownership stake to its members. And the deal–along with the financing it freed up for GM–did help the company’s sales at the end of last year. But Cerberus got to start sucking the federal teat just before its buddies in the Republican party turned over control of that teat to Democrats.

So it’s not just that Bush left a crisis for Obama to deal with–that I’m not so bummed about, because Obama’s team has proven way more competent to deal with it than Bush’s was. But Bush picked and chose which crises he’d address, and just happened to choose to solve Dan Quayle’s and John Snow’s crisis rather than Main Street’s.”

Uncle Cheney–Wooten can spell Cheney but not Cerberus and neither can ole AJC–stated yesterday that Bush punted the auto crisis as well as every other Rethug screwup to Obama after they gave Cereberus a sweet deal.

CHENEY: Well, I thought that, eventually, the right outcome was going to be bankruptcy. … And the president decided that he did not want to be the one who pulled the plug just before he left office.

VAN SUSTEREN: Why?

CHENEY: Well, I think he felt, you know, these are big issues and he wouldn’t be there through the process of managing it, but in effect, would have sort of pulled the plug on GM and that was one of the first crises the new administration would have to deal with. So he put together a package that tided GM over until the new administration had a chance to look at it, decide what they wanted to do.

VAN SUSTEREN: But it’s cost us billions to get — I mean, you know —

CHENEY: It has. … And now the government owns a big chunk of General Motors. That bothers me. I don’t like having government own those kinds of major financial enterprises. I think it’s — it does damage to our long-term economic prospects when we get government involved in making those kinds of decisions.

The unions hardly control the auto companies at this point in time. That analysis is worthy of a Mac Rae, Georgia middle school student. and Wooten must be wistfully chanelling his youth.

One phrase that hasn’t entered Jim Wooten’s written vocabulary or those of any conservative columnists or bloggers or for that matter the AJC’s now vastly diluted paper although Wooten knows something about them is Cerberus Capital Management. Cerberus Capital Management, an equity holding firm in NYC, is the Republican controlled owner of 80% of Chrysler. Chrysler represents between 7-8% of Cerebrus’ financial holdings. Dan the Quayle is a Director of one of their international units and one of their spokespeople, with the communicative skills of a block of granite.

Like most conservative Rethug organizations, including the murders at Blackwater, they like naming themselves from monsters of mythology. Cerberus was the 3 headed dog who guarded Hades. After extensive research, it’s my information that most dogs have one head, as do most but not all people.

In 2006 Cereberus’ holdings were a little more than your valet parking at midtown or Buckhead for a night; they were $24 billion. Notable Cereberus principles/partners are John Snow, Bush’s 2nd Treasury Secretary, J. Ezra Merken, a major facilitator of Bernie Madoff’s Ponzi scheme shunting hundreds of millions to ole Bern who is now the target of multiple class action suits in the S.D.N.Y. and should have been indicted long ago with Madoff’s wife, brother, sons, and neice by the aces at DOJ.

Summarizing the wiki on ole Cerebrus–

Merkin’s Gabriel fund invested $79 million in Chrysler, $66 million in GMAC and $67 million in Cerberus partnerships, according to year-end statements.

In 2007, Cerberus and about 100 other investors purchased an 80% stake in Chrysler for $7.4 billion. Cereberus has refused to use a penny of its billions to help Chrysler, because rich Republicans have always had their hand out for bailouts while denouncing them out of one side of their mouths.

Currently Cerberus Capital Management will lose its equity stake and ownership in Chrysler as a condition of the Treasury Department’s bailout deal, but Cerberus will maintain a controlling stake in Chrysler’s financing arm, Chrysler Financial. Cerberus will utilize the first $2 billion in proceeds from its Chrysler Financial holding to backstop a $4 billion December 2008 Treasury Department loan given to Chrysler. In exchange for obtaining that loan, it promised many concessions including surrendering equity, foregoing profits, and giving up board seats. Cerberus acquired 51 percent of GMAC, General Motors’ finance arm, in 2006 for $7.4 billion However, on December 29, 2008, the U.S. Treasury gave GMAC (Cereberus owns 51%) $5 billion from its $700 billion Troubled Asset Relief Program (TARP).

Cereberus, one of the most secretive holding companies in the world, recently spent $7million to hire Quayle, John Breaux former Dem Sen from La., and former Bush legislative liaison David Hobbs to get $7.5 billion handout from your bank account from the auto bailout, and they already have gotten an $8.5 billion loan from Obama-Salazar energy.

Henry Paulson handed over billions to Chrysler–can you spell Bush-Cheney?

There are dozens of eliptical well camouflaged connections between Goldman-Sachs (Paulson’s former company) and Cerebus.

In short, you’re being ripped off by Cerebrus courtesy of the Bush administration as well as Dem lobbyist former La. Sen John Breaux, and several Republican lobbyists including the former VP and former Treas. Secretary.

Wooten doesn’t seem to be able to shed light on this connection, nor does the Julia Wallace deteriorating AJC. Ole Bookman is asleep at the switch as to Cerebrus as well, still smarting from being kicked off the editorial board and having his columns cut to 2 per week by Wallace and Cox.

One magazine reporting on Nardelli’s testimony said that Nardelli’s vaguely stupid answers to committees on the Hill where he appeared was “my three-headed dog ate my homework.”

Nardelli, he of the two multimillion dollar homes on Garmen Road in the head of the Buck, is screwing you out of your tax money and you’ll never see it. It is helping to finance his luxury life. Nice going sucker.

Cerebrus’ company Chrysler Financial refused $750 billion in TARP bailout money when they found out their would be limits on exec compensation. They hardly needed that money.

[...] is it that unions win so big, while investors lose so big, in these government [...]

ggstarling

June 18th, 2009
6:05 am

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