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Government Motors...US May Take Huge Stake In New GM

I honestly never thought I'd see this in my life time.

With the United Auto Workers agreeing Tuesday to take a much smaller stake in GM than originally expected, the automaker has about 19 percent of its equity with which it could potentially sweeten the pot for bondholders. But the Treasury is reportedly planning to fork over as much as $50 billion in debtor-in-possession financing to help the cash-bleeding company through its restructuring, The Wall Street Journal said late Tuesday. In return, the government could demand up to 70 percent of GM's equity, the paper said, citing people familiar with the matter.

All of this is still being negotiated and bond holders aren't happy with the proposed debt for equity swap, so this process is a long way from done.

GM says it needs 90% of bondholders (who unlike in the case of Chrysler are unsecured) to approve the plan and avoid going Chapter 11.

"It's nowhere near 90 percent," said Kip Penniman, analyst for KDP Investment Advisors. "If GM announced they got low single-digit participation, it would be a slap to GM and the absolute response to the Treasury-mandated offer. ... A cynical person would say that the offer was set up to ensure GM would go into Chapter 11 and provide the government a scapegoat."

Always have an enemy to blame, it's the Obama way.

Frighteningly related...Gabe blogged earlier about possible political considerations in the Chrysler dealership closings. Well, here's more, including a Chrysler dealer on FNC who says he's in 'the upper 2% of dealers' and is being closed. (via Slublog's Twitter feed)

Posted by: DrewM. at 09:16 PM



Comments

1 I honestly never thought I'd see this in my life time.

Me too, Drew.  I think I'm going to cry.

Capitalism, we miss ye.

Posted by: chemjeff at May 26, 2009 09:22 PM (kw6LA)

2 In the end, there will be only... Messiah owned car companies.

Their cars may suck, but at least they can hover over water.

Posted by: Kratos (on the back of Gaia, scaling Mt Olympus) at May 26, 2009 09:23 PM (otlXg)

3 The worst thing about it is that we all know that this public ownership of GM will never be rolled back.

Posted by: Robert_Paulson at May 26, 2009 09:23 PM (zjgCD)

4 1

agreed and agreed

This was always the plan, and fucking over SECURED creditors in Chrysler like he did makes this GM unsecured bondholder fucking seem like nothing.

Sigh.


Posted by: Anti-Harkonnen Freedom Fighter at May 26, 2009 09:23 PM (5r0Tz)

5 Remember when private citizens owned property and government didn't own or run the means of production?

Those were some good times.  What ever happened to those?

Posted by: Z Ryan at May 26, 2009 09:24 PM (PDeVA)

6 I'm glad the government is taking over GM, because what people want right now is more government in their lives.

And I'm a real Republican.

Posted by: Colin Powell at May 26, 2009 09:26 PM (kw6LA)

7

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Posted by: royalmewigs at May 26, 2009 09:26 PM (aMiUZ)

8

5 Remember when private citizens owned property and government didn't own or run the means of production?

 

i denounce you as an enemy to the state comrade.

Posted by: joan at May 26, 2009 09:26 PM (gEK98)

9 Serious question: what are the chances of a serious "capital strike" in the near future? Like bond holders and investors across many vulnerable industries simply cashing out and pulling up stakes --- possibly redirecting their investment overseas?

Posted by: Robert_Paulson at May 26, 2009 09:27 PM (zjgCD)

10 Well thank God the lace wig industry is still in private hands.

Posted by: chemjeff at May 26, 2009 09:27 PM (kw6LA)

11

>Those were some good times.  What ever happened to those?

the Stupid are winning

Posted by: Jones at May 26, 2009 09:27 PM (KOkrW)

12 And I'm a real Republican.
Posted by: Colin Powell




Mee too, mee too !

Posted by: Meghan McCain at May 26, 2009 09:28 PM (AoS9J)

13 #5

52% of all voters in 2008 decided to make a trade:  economic liberty for the chance of "the 1st black President (omg, lolz!!!)" running day to day business.  I mean, he talks pretty so he must be competent in everything, right?  It didn't help matters that a PBJ and a can of diet Pepsi had more energy than his opponent. 

Granted, the US have been traveling this slope for a long, long time and it was inevitable.  Messiah cannot be completely blamed for this, but he's going to make damned sure that this socialist path is completed by his hand.  Unfortunately, this will only lead to chaos!

Posted by: Kratos (on the back of Gaia, scaling Mt Olympus) at May 26, 2009 09:29 PM (otlXg)

14 Getting Norked by Nuke Korea is looking better and better every day.

Posted by: Blazer at May 26, 2009 09:29 PM (AoS9J)

15 GM says it needs 90% of bondholders (who unlike in the case of Chrysler are unsecured) to approve the plan and avoid going Chapter 11.

    "It's nowhere near 90 percent," said Kip Penniman

Fortunately, when bullies are successful in intimidating people, you can always count on them to quit and not do it anymore.

Posted by: AD at May 26, 2009 09:33 PM (bBOfX)

16 You know what the solution is here?

Give the whole shitheap to the UAW.

I am deadly serious.

Posted by: Circa (Insert Year Here) at May 26, 2009 09:33 PM (0qe2I)

17 Get 50 million folks to take August and September off.


Posted by: eman at May 26, 2009 09:33 PM (Dec0Z)

18 My grandfather worked for GMT, then GMC for his entire adult life. Started at Fisher Body pounding fenders for Cadillacs.

He was the one that brought computer ordering of sales to GMC.

Needless to say, he's rolling in his grave over what's happened to his company.

I noticed his picture on my wall was upside down this afternoon, wonder what that means?

Posted by: UncleFacts at May 26, 2009 09:34 PM (vZVv7)

19 Well, I for one am ready for the bread lines.  Got my state-issued iPod containing inspirational Obama speeches (hardwired in, can't erase them), got my state-issued jacket made of dried rodent fur and has sawdust for a lining, and I got my trusty pair of good ol' American blue jeans, made by Levi, Strauss, Obama & Co.  Now all I need is another state-issued Obama "Yes We Can" T-shirt.  Who knew they were made of papier-mache?

Posted by: chemjeff at May 26, 2009 09:34 PM (kw6LA)

20 who's going to want a car or truck from a company owned by the US GOVT and run by the UAW?

Posted by: Jones at May 26, 2009 09:35 PM (KOkrW)

21 In return, the government could demand up to 70 percent of GM's equity, the paper said, citing people familiar with the matter.



What makes this anymore secure than those who held secure bonds in Chrysler? Why is the government allowed to insist on something, security and priority of investment, when it denies the same for private individuals in Chrysler?

Posted by: Rocks at May 26, 2009 09:35 PM (3RHzM)

22 Hey, let's all welcome American Leyland.  Know why the Yanks like warm beer?  Cause they keep 'em in Delphi refrigerators.

Posted by: Skookumchuk at May 26, 2009 09:35 PM (8fmXu)

23 "The worst thing about it is that we all know that this public ownership of GM will never be rolled back."

Wrong.  I predict it will be the first big symbolic chop the next Republican president carries out.

Posted by: someone at May 26, 2009 09:35 PM (1wXl7)

24

Russia breaks "wall" into U.S. nuclear market

Tue May 26, 2009
MOSCOW (Reuters) - Russia signed a landmark deal to supply nuclear fuel directly to U.S. companies on Tuesday, setting itself up to control 20 percent of the U.S. uranium market and extending its global reach in the nuclear sector.

WTF???

Posted by: Robert_Paulson at May 26, 2009 09:36 PM (zjgCD)

25 You know what the solution is here?

Give the whole shitheap to the UAW.

I am deadly serious.



Isn't that what's going on ?

Posted by: Bill D. Cat at May 26, 2009 09:36 PM (d0YiG)

26

Gotta admit, I'm feeling a little depressed.  No, maybe more just resigned to our fate.  Everyday there's a new ration of shit from this administration.  I honest to God would rather see Chrysler and GM dissapear than be taken over by the Government. 

There's enough folks here that remembered the late seventies.  After Vietnam, the whole fucking nation was depressed. I called it wearing a hair shirt.  Stagnant economy, inflation, our congress said fuck the dead 55,000, we don't want to win this war after all. Draft Dodgers, come on back.  Oil shortage, sugar shortage, you name it the Dems fucked it up. 

Well we are back in the seventies and the Dems are on steroids.  Its Bizzarro World and the MSM thinks its just fucking great.  The Intelligencia, and I use the term loosely, think its just great.  They and the press are the first to go when totalitarians take over and use regular folks are the ones who die getting things back from the darkside. 

When guys like me, relatively sane, feel the pressure, the wingnuts go off the reservation and you get the McVeigh types doing even more stupid shit.

I know self preservation will finally kick in for the nation but just how much stupid shit does it take for the assholes to wake up?

Posted by: Dan at May 26, 2009 09:37 PM (qfb86)

27 19% of Yugo Motors for the bondholders? Yeah, that sweetens the pot. Do you hear that rustling sound? That's all the private capital leaving the country.

Posted by: Larsen E. Whipsnade at May 26, 2009 09:37 PM (15+Kr)

28

it would be funny as shit if, after taking US bailout money and handing the whole operation to Obama/UAW, the whole thing just collapsed because no one bought their piece of shit socialist product.

highly ironical

Posted by: Jones at May 26, 2009 09:38 PM (KOkrW)

29 who's going to want a car or truck from a company owned by the US GOVT and run by the UAW?


Ohhhhh, probably about 52% percent of America, half who can't afford them to begin with.

However don't worry, I'm sure some entitlements will be worked in for first time new car/truck buyers. Worked out swimmingly for Fannie And Freddie.

Posted by: Blazer at May 26, 2009 09:39 PM (AoS9J)

30 #20

"Want" is not a consideration, comrade. The government will somehow mandate that we the taxpayers will keep GM and Chrysler in business. We will have Trabants in the US.  So says the glorious Messiah, and so His will be done.

Posted by: Kratos (on the back of Gaia, scaling Mt Olympus) at May 26, 2009 09:39 PM (otlXg)

31 All of this is still being negotiated and bond holders aren't happy with the proposed debt for equity swap, so this process is a long way from done.

Wasn't this a problem with Chrylser, until the bondholders were reminded that Obama's thugs know where they live and where their kids go to school? After these "vague" threats, the bondholders suddenly decided that they were no longer recalcitrant, and went along with Prez for Life's plan.

Expect to see that again. Either take the deal offered by the Prez or something unpleasant will happen.

Posted by: shibumi at May 26, 2009 09:40 PM (OKZrE)

32

OMG Kratos  you are right

GovernmentMotors will produce the American version of the Trabant

Posted by: Jones at May 26, 2009 09:41 PM (KOkrW)

33 You realize it doesn't end here, right?  You make and sell automobiles as a privately owned company in the U.S.?  The government is now your competitor.

Posted by: AD at May 26, 2009 09:42 PM (bBOfX)

34 We are going to need a super volcanic eruption and an asteroid hit on the same day to fix this mess.

Posted by: eman at May 26, 2009 09:42 PM (Dec0Z)

35 Just think how ballsy O will be when his 2nd 3rd 4th 5th 6th lifetime appointment is approved by congress and upheld by the SCOTObamaS in a 5-4 decision written by Sotomoyar, dissenting opinions by Roberts, Alito, Scalia, Thomas. 

Posted by: The Hammer at May 26, 2009 09:42 PM (YBTwf)

36

>However don't worry, I'm sure some entitlements will be worked in for first time new car/truck buyers.

 

Obama will create a tax deduction for buying the GovernmentMotors Trabant

Posted by: Jones at May 26, 2009 09:43 PM (KOkrW)

37 Ohhhhh, probably about 52% percent of America, half who can't afford them to begin with.

Yeah, you just KNOW what's coming now.  A few years in, when Government Motors doesn't seem to be selling it's brand new Euro-Shoebox Pelosi Hybrid 5000 model, and the economy still mired in recession, the government will come up with the brilliant(!) idea to kill two birds with one stone - why not "stimulate" the economy by giving the needy poor a tax credit, free financing, whatever, for them to purchase a crappy car!  Then we'll have everybody rush out to buy a car they can't afford, it will be a piece of shit and break down, GM will end up losing even more money with repair costs, we'll have a car bubble that will burst, and we'll have bailed out more incompetence and stupidity.

Posted by: chemjeff at May 26, 2009 09:43 PM (kw6LA)

38 Double-digit inflation and interest rates and unemployment will boot Barry out.

Posted by: eman at May 26, 2009 09:44 PM (Dec0Z)

39

>dissenting opinions by Roberts, Alito, Scalia, Thomas. 

 

this assumes they'll avoid the camps

Posted by: Jones at May 26, 2009 09:44 PM (KOkrW)

40 Its Bizzarro World and the MSM thinks its just fucking great

There's this crazy thing called with Webbot project that does what's called "predictive linguistics." It's a prediction program based on language that, like all prediction programs, is iffy at best. Well, one of the key words for this year is "surreal." Kind of fits right now, doesn't it?

/they also predict the "summer of hell." Wonderful.

Posted by: shibumi at May 26, 2009 09:45 PM (OKZrE)

41 33 You realize it doesn't end here, right?  You make and sell automobiles as a privately owned company in the U.S.?  The government is now your competitor

Can't wait to see the what happens when the UAW, as owners of Chrysler and GM, negotiate their union worker contracts with Ford.

Posted by: shibumi at May 26, 2009 09:47 PM (OKZrE)

42 After the government fully owns 2 or 3 car companies...isn't the next logical step for them to eliminate foreign cars in the OS in the name of preserving USofO jobs at Obama Companies? 

Posted by: The Hammer at May 26, 2009 09:47 PM (YBTwf)

43 Ace, you dont want to know what I'm saying right now.  I would get blasted off the site in a heart beat.  The F-bomb is not sufficient to the situation.

Posted by: Dan at May 26, 2009 09:48 PM (qfb86)

44 @33,

Governments do not tolerate competition .

Posted by: Bill D. Cat at May 26, 2009 09:48 PM (d0YiG)

45 Will GovernmentMotors revive the Wagon Queen Family Truckster?

Posted by: Jones at May 26, 2009 09:48 PM (KOkrW)

46 42 After the government fully owns 2 or 3 car companies...isn't the next logical step for them to eliminate foreign cars in the OS in the name of preserving USofO jobs at Obama Companies?

Obama will make sure of that when he (via UAW) "negotiates" with Ford during the next contract.  Something tells me Ford will get an offer it can't refuse.

Posted by: chemjeff at May 26, 2009 09:48 PM (kw6LA)

47 You realize it doesn't end here, right?  You make and sell automobiles as a privately owned company in the U.S.?  The government is now your competitor.

Yea, and with The Chicago Way running GM how long before they take Ford over. The smash and grab takeovers of American companies has just begun.

Toyota, Honda, bye, bye.

Don't bow at the feet of The One and his union buddies?....... go home and get your fuckin' shine boxes.

Posted by: Blazer at May 26, 2009 09:49 PM (AoS9J)

48

Hey Morons!

I have a serious question...Why the fuck is the stock market recovering?  What am I missing here, because between the banks, auto industry, credit card industry, real estate, layoffs,....I CANT SEE THE GOOD NEWS....

So, did the market over-react when it dropped to 6547, and now is compensating, or what?

The news tells me the train just passed CrazyTown, next stop ShitTown, but the market says we're heading back to prosperity.  Help me out here

Posted by: OneEyedJack at May 26, 2009 09:51 PM (Poe30)

49 I have a serious question...Why the fuck is the stock market recovering?


Cause I told em' to,.... get it.

Posted by: Don Barack Corleone at May 26, 2009 09:54 PM (AoS9J)

50 So, did the market over-react when it dropped to 6547, and now is compensating, or what?

That is what my financial planner tells me.  (And don't worry, he is true-blue conservative.  He is genuine Moron material.)

But this is as good as the "recovery" gets, IMO.  Mid-8000's.  Nowhere near the 14,000+ levels of the evil George Bush years.

Posted by: chemjeff at May 26, 2009 09:54 PM (kw6LA)

51

GM will end up losing even more money with repair costs, we'll have a car bubble that will burst,

And all they'll need is a catchy name. Hey, how about the People's Car?

Posted by: andycanuck at May 26, 2009 09:54 PM (MB+jN)

52 You realize it doesn't end here, right?  You make and sell automobiles as a privately owned company in the U.S.?  The government is now your competitor.

The flip side to this is Ford can now make political ads.  Two can play at that game.

"Every time you buy GM, you buy communism.  Ford: Quality cars for a quality America."  Something like that.

Posted by: Guy of Gisbourne at May 26, 2009 09:56 PM (Zu4+j)

53

48...and my serious question is where is the tipping point to more legitimate tea parties? 

My second serious question is who is the first leftists to suggest O needs more than 2 terms and when is it suggested?  You know, prepping the ground, as it were.

 

Posted by: The Hammer at May 26, 2009 09:56 PM (YBTwf)

54

As a side note, I took a look at Furmburger's scary blog.

The only fucking commenters he has are lefties, and they are basically just taking little potshots at him and arguing amongst themselves of how best to smart, tough respond to scary Dave..

Too funny.

Yes, he really has stirred us all into accepting the new GOP form of Communism.

Fucking scumbag piece of shit. Go back to Canada you salami smelling sewer dweller.

Posted by: Rev. Dr. E. Joe Buzz Biden-Miller, PhD, DO, MD at May 26, 2009 09:59 PM (XZS9v)

55 We are going to need a super volcanic eruption and an asteroid hit on the same day to fix this mess.

You forgot the alien invasion and Sauron finding the ring.

Posted by: Circa (Insert Year Here) at May 26, 2009 10:00 PM (0qe2I)

56 Looking forward to the new Camaro with the stylish racing pedals.

Bicycle pedals that is.

100 fpc highway, 150 fpc city (feet per calorie)

Posted by: Blazer at May 26, 2009 10:00 PM (AoS9J)

57

>Hey, how about the People's Car?

 

been there: the volkswagen

Posted by: Jones at May 26, 2009 10:01 PM (KOkrW)

58 Obama's putting the "Effed" in Ford!

Posted by: runningrn at May 26, 2009 10:02 PM (aC/SY)

59

>My second serious question is who is the first leftists to suggest O needs more than 2 terms and when is it suggested?  You know, prepping the ground, as it were.

 

a couple more lefties on SCOTUS and it's a done deal-  el presidente

Posted by: Jones at May 26, 2009 10:03 PM (KOkrW)

60 I honestly never thought I'd see this in my life time.

Me neither. Now please give us the keys to the liquor cabinet Drew, we promise not to clog the toilets this time.

Posted by: kbdabear at May 26, 2009 10:05 PM (93F13)

61 Getting dizzy ...

Posted by: Adam Smith at May 26, 2009 10:05 PM (7iWfE)

62 Hey, how about the People's Car?
been there: the volkswagen


Now wouldn't that be a real hoot ? A vehicle once manufactured with gratutios amounts of Jewish slave labor. Of course the irony would be totally lost on Obama.

Perhaps not. They'll just build a plant next to every re-education camp.

Posted by: Blazer at May 26, 2009 10:07 PM (AoS9J)

63

Yeah, my retirement fund took a pounding like a Vivid-girl pulling a train last year.  Then my sack shrunk and I got out scared, and now have what's left in a stable asset fund, where it makes very little, but doesn't lose.  However, now the market has been going back up and I've essentially lost another 20%.  I need to get out of this before inflation kicks into high gear, but have no faith in the near or midterm outlook for the market.  To me, this uptick is a mystery.

And canned goods, guns and ammo are not investments.  If they were, I'd be okay.

Posted by: OneEyedJack at May 26, 2009 10:10 PM (Poe30)

64 I have a serious question...Why the fuck is the stock market recovering?  What am I missing here, because between the banks, auto industry, credit card industry, real estate, layoffs,....I CANT SEE THE GOOD NEWS..

For starters, you get these moves on light volume and today was extremely light. The supposed reason was a business survey group which reported that consumer confidence went from 40 to 54 percent positive in May. If 54 percent of the American consumer is that delusional, you can easily see how we got into this mess, and why they think a community organizer with zero business experience or public sector executive experience can magically bring back the late 90s

Posted by: kbdabear at May 26, 2009 10:12 PM (93F13)

65 Just checked the political donations of a Chrysler dealership that stayed open here. President of the company gave entirely to Democrats.

Posted by: Slublog at May 26, 2009 10:13 PM (lG+at)

66 I live in the Detroit area.  I am sick of the slow bleed.  GM and Chrysler are dead, bring on the pain now and let them die now.  Fucking Obama motors has no chance.  The union needs to be broken completely, that was the only hope.  That ain't gonna happen with the current administration so stick a fork in it.

Posted by: ken at May 26, 2009 10:13 PM (9zzk+)

67

>Hey, how about the People's Car?

 

been there: the volkswagen

 

I think that is what he was referring to.

Posted by: capt. crunch at May 26, 2009 10:14 PM (4rBrU)

68 For far too long, America's carmakers have neglected to build the cars that would lead us into the 21st century. Under my plan, Yugo er... GM will once again be profitable in building the kinds of cars that Americans want. And they WILL want them. I won

Posted by: Barack Obama at May 26, 2009 10:17 PM (93F13)

69 :You'll have to really be giving GMs and Chryslers away for me to own one again, so long as the Obamacrats are in charge of the operation.  The way it's being set up to operate, a huge chunk of what anyone pays for the car would go to support more and more union socialist Obamacrap.  Let the f-ing union rock sink until it learns how to swim on it's own... 

Posted by: Seipherd at May 26, 2009 10:20 PM (GM3jU)

70

Wagon Queen Family Truckster?

 

that was a sweet ride.

Posted by: joan at May 26, 2009 10:20 PM (gEK98)

71 The government will somehow mandate that we the taxpayers will keep GM and Chrysler in business.

Yep. Complete with GPS tracking, so we can be taxed for excessive or unnecessary driving. Don't worry though, you can trust your government not to abuse the information.

On the brighter side, the GPS satellites are ready to fall out of the sky, so we've got that working for us.

Posted by: IllTemperedCur at May 26, 2009 10:21 PM (9Lm5R)

72 The Revolution approaches.


Posted by: eman at May 26, 2009 10:21 PM (Dec0Z)

73 70

Wagon Queen Family Truckster?

 

that was a sweet ride.

Posted by: joan at May 26, 2009 10:20 PM (gEK9

 

 

it doesn't hold a candle to the Antarctic Blue SuperSports Wagon

Posted by: Jones at May 26, 2009 10:24 PM (KOkrW)

74 67

>Hey, how about the People's Car?

 

been there: the volkswagen

 

I think that is what he was referring to.

Posted by: capt. crunch at May 26, 2009 10:14 PM (4rBrU)

 

 

why should I listen to a guy whose eyebrows are on his hat?

Posted by: Jones at May 26, 2009 10:25 PM (KOkrW)

75

it doesn't hold a candle to the Antarctic Blue SuperSports Wagon

 

if you get the fun rally pack edition it's pretty cool.

Posted by: joan at May 26, 2009 10:28 PM (gEK98)

76

why should I listen to a guy whose eyebrows are on his hat

 

I don't get soggy in milk. The bitches love me dudes fear me.

Posted by: capt. crunch at May 26, 2009 10:30 PM (4rBrU)

77 Our reign has gone on too long.

Summon the meteors. 

Posted by: Techie at May 26, 2009 10:30 PM (QYuCD)

78 We are going to need a super volcanic eruption and an asteroid hit on the same day to fix this mess.

You forgot the alien invasion and Sauron finding the ring.

Well, the pod people are already here....

Posted by: IllTemperedCur at May 26, 2009 10:32 PM (9Lm5R)

79

Just checked the political donations of a Chrysler dealership that stayed open here. President of the company gave entirely to Democrats.

I'm shocked, SHOCKED!

Posted by: Capt. Louis Renault at May 26, 2009 10:32 PM (UGOcx)

80

I have a serious question...Why the fuck is the stock market recovering?  What am I missing here, because between the banks, auto industry, credit card industry, real estate, layoffs,....I CANT SEE THE GOOD NEWS....

So, did the market over-react when it dropped to 6547, and now is compensating, or what?

The news tells me the train just passed CrazyTown, next stop ShitTown, but the market says we're heading back to prosperity.  Help me out here.

Three words - dead-cat bounce.

Posted by: steveegg at May 26, 2009 10:35 PM (UGOcx)

81 Posted by: eman at May 26, 2009 10:21 PM (Dec0Z)

I think the revolution already happened.

Posted by: DrewM. at May 26, 2009 10:37 PM (PLGGU)

82 Well, before it's all over and it's too late, I'd like to say, "It's been fun while it lasted".  Thanks for the memories.

Posted by: Editor at May 26, 2009 10:38 PM (en7mZ)

83 Stock Market rally --
Guys on Kudlow a week or 2 ago floated the idea that the traders are trying to make whatever profits they can this year because the economy will really go into the shitter once the Bush tax cuts expire at the end of the year.
Just repeating what I heard. I haven't a clue.

Posted by: the real joe at May 26, 2009 10:40 PM (cgltv)

84

The Revolution approaches.

Guess I better pick up that 14.45 LDA.

And they thought Delay was evil with his K-Street project. This punish the opposing car dealers is right outta Hugo Chavez's book. But the story will never see the light of day, because it doesn't fit the narrative.

Say regarding the Fund Managers trying to stop the Chrysler deal, how come our side can never find empathetic judges?

Posted by: Iblis at May 26, 2009 10:41 PM (+tCvM)

85

66 I live in the Detroit area.  I am sick of the slow bleed.  GM and Chrysler are dead, bring on the pain now and let them die now.

I saw some documentary on housing that focused on the Detroit area, where artists and other "bohemian" types were moving into $1.00 homes.  The neighborhoods were absolutely destroyed, the houses, the roads, the cars parked in the yards.  I give those proud new homeowners a year before the women are raped , the men robbed, and any house looking too good gets burned to the ground.

Didn't look like America, but it is....I feel for you.

Posted by: OneEyedJack at May 26, 2009 10:41 PM (Poe30)

86

hey retardicans anybody have a set of balls?

yeah didn't think so.

 

Posted by: evil libertarian at May 26, 2009 10:43 PM (z2yq0)

87 Rush mentioned today how Transportation Secretary LaHood (another RINO) wants to "coerce" people out of their cars. Owning the car companies would play into that.

http://www.cnsnews.com/public/content/article.aspx?RsrcID=48578

Rather than subsidizing them so the poor can buy them, they'll just take another cornerstone of the American dream off the foundation (our ability to move freely, 2 cars in the garage) and force us all into subsidized public mass transit. It's the envrio-wackos dream, as well as those who have told us for years how public transit is everything. Plus it will truly pull us into an urban-Euro lifestyle. Let alone what it means to costs of goods, etc.

Posted by: Doc at May 26, 2009 10:44 PM (AghBu)

88

Three words - dead-cat bounce.

Posted by: steveegg at May 26, 2009 10:35 PM

 

I know the concept, and it probably best explains what's going on.  And that phrase is a good one, I am going to steal it.

Posted by: OneEyedJack at May 26, 2009 10:46 PM (Poe30)

89

been there: the volkswagen

No kidding? Do you have a Wiki link or something for that?

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Posted by: Hugh Jass at May 26, 2009 10:53 PM (Q6pZZ)

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been there: the volkswagen

Stupid me. I bought an actual VW last year. Never thought fascist motors would open in Detroit. Oh well. Live and get Re-Educated.

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I hope he makes America into a third world nation because we'd like, be so cool to be in touch with nature.

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Posted by: Scrapiron at May 26, 2009 11:07 PM (1kwr2)

95 With government control of the domestic automobile manufacturers will we see regulatory and tax favoritism towards the products they produce?  E.g.:

- GM offers "Flexfuel" fleet wide, looks like a stupid idea - until the Federal gas tax gets modified to favor E85 and discourage diesel.  Which, it just so happens to be what the Euros and Ford invested in.

- Federal government mandates significant insurance hikes for those who don't report average speeds using an in car information system, such as that covered by GMs OnStar patents. All in the name of highway safety and intelligent transportation networks to reduce carbon footprint.

- CAFE and safety details are modified to match government produced fleet characteristics; forcing other to incur expensive design changes

- Recapitalization of DoDs non-tactical vehicle fleet becomes a MIPR instead of a competition.

- Non-GMAC auto credit funds will face TARP like restrictions and scrutiny.

The potential "synergy" beyween a government owned vehicle manufacturer and the various government regulators and buyers could get ugly for Ford and Toyota.  The dreams of some of DoT ITS types to embed a control transponder in cars just got a lot closer.

Sweet dreams

Posted by: Jean at May 26, 2009 11:18 PM (xCBQ4)

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I think the bureaucracy is too large to reverse, and the life I remember from 20 years back is dead.  We are now a 'social democracy.'

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Posted by: profligatewaste at May 26, 2009 11:40 PM (pokwq)

98 The article papers over the raw deal that the bondholders were getting, found in this article from Friday:

http://news.yahoo.com/s/ap/us_gm_bankruptcy

Essentially, the government gets 50% stake for forgiving $10 billion of the $19.4 billion it's given to GM, while UAW's health care trust gets 39% for forgiving $10 billion of the $20 billion that GM owes it.

And the bondholders? They would get 10% stake in the company in exchange for giving up all of the $27 billion that GM owes them. Small wonder that only a "small fraction of the holders" were willing to go along with it.

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100 been there: the volkswagen

It was Hitler's pet project to provide cheap cars to the German people.

Do you know who will benefit the most from the nationalization of the American auto industry?

The Japanese automobile industry. Odds are the next car I'll be be buying will be one of theirs.

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Posted by: replica watches at February 07, 2010 11:23 AM (TUJDt)






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