Automotive News [sub] reports that Uncle Sam is set to transfer $4b worth of taxpayer funds to GM and Chrysler. Each. The e-checks were due to be signed by close of play today, but got hung-up on “technical issues.” So, tomorrow then. This is, of course, only the first installment. GM scarfs another $9.4b early next year, $4b of which will require congressional approval. “The automakers must file plans by Feb. 17 describing how they will restructure to become viable for the long term. Unless the agreement is changed by the Obama administration, a president’s designee, or car czar, is to decide by March 31 if an automaker’s restructuring plan is sufficient. If not, the first loans will be called in, possibly forcing the company into bankruptcy.” Possibly? Anyway, I am disgusted that this deal went down without public scrutiny of GM or Chrysler’s books– or a call for the MSM for same. While our duly elected representatives supposedly saw the “real” books– but couldn’t reveal the information for “commercial reasons”– last week’s Wall Street Journal story on Cerberus’ ownership of ChryCo’s HQ indicates that there’s ample reason to believe there’s something rotten in the fortress of Detroit. You know, other than President’s Bush bald-faced usurpation of Congressional power and federal funds to prop-up two dying commercial (non-banking) enterprises. The Bailout Watch continues.
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Has there been any public scrutiny of any bailout funds for the finance industry? Do we know exactly what the big banks are doing with taxpayer bailout funds? Do we see how much of that money is being spent to free up credit markets or pay executive bonuses? No.
It is the same case with the bailed out automakers. The US government is throwing out billions of dollars at distressed firms, applying band-aids to remedy cancers.
This systemic failure of the government to put into place public checks and balances solves nothing. These firms require either dying or intensive chemotherapy to attack the root problems. Without this razor sharp focus, I’m afraid we’re nowhere near solving the problems.
CellMan, you are correct…this (the Bank and Auto and soon-to-be State Government) “Bailout” is probably THE greatest fleecing of the American Tax Payer there has ever been in recorded history.
If you really wish to get to the “root” of the problem, maybe you’ll call up your Congressman/woman and insist he/she support H.R. 2755.
This man (Paul) has the courage to stand up to this theft, the least you as a citizen can do is support his back.
http://www.cnsnews.com/Public/Content/Article.aspx?rsrcid=40181
http://nationalexpositor.com/News/1421.html
Paul has introduced legislation I believe each and every YEAR for the past decade to eliminate “The Fed”. Maybe the American public is starting to take notice of the absolute and sheer magnitude of the (as Sweet Pete would say) “unmitigated” THEFT of the matter.
…and I quote:
“Wall Street Journal financial editor Steven Moore is asking, ‘Who elected Ben Bernanke? Who Elected Alan Greenspan?’ ”
The answer is Nobody! This “process” in place is dictatorial in nature and is the antithesis of a free and Democratic society.
Thank you for waking up CellMan, I can see your gears are in motion :)
President’s Bush bald-faced usurpation of Congressial power and federal funds to prop-up two dying commercial (non-banking) enterprises.
I’m not aware of the slightest debate regarding the “usurpation of Congressional power.” If anyone else knows, I’d like to know the sources and logic behind this argument.
Bush pulled it off with the powers at his disposal. Like it or not, that’s what happened, and it appears to be legal, if somewhat novel and unprecedented.
As for “dying […] enterprises,” I would add that not everyone who gets sick dies. We wouldn’t need doctors otherwise! :-)
PS, CellMan,
This article below should “explain” the ultimate objective. People ridicule the messenger when they truly fail to see that this so-called “crisis” is not a crisis at all…assuming you are the one creating it…because, as mentioned before, “they” come in with a so-called “solution”…one they were jonesing for all along and which is in full alignment with their objectives.
When you see such phraseology as “move toward a borderless world where national interests are outweighed by global necessities.”…you’d better be concerned…sincerely.
http://www.nationalexpositor.com/News/1540.html
Why? Because the “destruction” is all in line with their “borderless society”…ie, a global government.
You think the total disrespect for Constitutional law is bad, …look to the EU where the “representatives” who tax and regulate are not even elected, but appointed. That’s what they are targeting with here in North America. Couple that with the “fear” of terrorism, and they just may have a shot of ramroding this corruption through.
Have a good evening.
So I would assume the “No taxation without representation” was just a cover up for limited Communism as it appears now?
You know, other than President’s Bush bald-faced usurpation of Congressial power and federal funds to prop-up two dying commercial (non-banking) enterprises.
Robert,
During the congressional hearings, both in the Senate and in the House, members of congress expressed displeasure that Bush had dropped it into their hands saying that the Federal Reserve and the President already had statutory power to loan money to the auto industry through the Fed’s own powers or under the “136” Energy Plan $25B, or under the TARP. None of the Republicans who opposed congressional action like Corker and Shelby have said that the President didn’t have the constitutional power to act. Maybe some fringey doctrinaire Libertarians or Paulians have said so, but that’s about all.
My question to you RF is now that the $14-17B is a fait accompli (oops, just broke one of Orwell’s rules for writing, oh well), what can GM do to make itself a viable company? If the GM BOD gave Wagoner his walking papers or powerless emeritus status and said they want Bob Farago to turn the company around, would you take the job and if you would, what would you do with GM to make it first survive and then thrive when the economic cycle swings up?
You have 90 days to turn around General Motors, what do you do?
@Ronnie,
GM has been bankrupt for years. Not one of their BOD members or C level executives has had the stones to do what needed to be done (cut divisions – meaning more than Olds – and tell the UAW to sit and spin).
My bet is that whatever unrealistic, fantasy based plan Rick trots out will be heralded as the second coming (again) of GM. It will all be bogus, because the company as is cannot be sustained.
They’re spending money like a ‘millionaire’ on a $40,000/yr salary.
In the meantime, the rest of us are getting bent over a bicycle rack to pay for this crap.
“Has there been any public scrutiny of any bailout funds for the finance industry?”
The Federal Reserve has bank examiners stationed full time at all of the major banks. Their knowledge of that industry is much deeper than any outsiders knowledge of the automobile business.
“Who elected Ben Bernanke? Who Elected Alan Greenspan?”
The seven members of the Board of Governors are appointed by the President and confirmed by the Senate to serve 14-year terms of office. Members may serve only one full term … The President designates, and the Senate confirms, two members of the Board to be Chairman and Vice Chairman, for four-year terms.
The Structure of the Federal Reserve System
The current Chairman, Ben Bernanke, was appointed by the President to a term that began on February 1, 2006 and will end on January 31, 2010. Alan Greenspan was his predecessor, and was likewise nominated and confirmed. Greenspan served several terms as chairman and was nominated by both Republican and Democrat Presidents and confirmed by both Republican and Democrat Senates.
This is just to tide things over till the new administration provides the big payoff. Don’t take it so serious, Bush is following Obama’s request and scurrying out of Washington faster than you can say Herbert Hoover.
Why? Because the “destruction” is all in line with their “borderless society”…ie, a global government.
Let me guess. It’s a shadowy conspiracy of the U.N., the Federal Reserve, the Council on Foreign Relations, the Bilderbergers, the Joos, and Oliver Stone who have been plotting for years to enslave humanity under the banner of socialism. As soon as they get into power, they will ban V8s and force us all to drive Smart cars.
Anyway, I am disgusted that this deal went down without public scrutiny of GM or Chrysler’s books– or a call for the MSM for same.
The MSM had no time. There’s new mid-east war brewing and Obama’s pecs to chat about.
I would tell all of you exactly what is going on here, but the black helicopters are presently scanning the neighborhood. Maybe later, if they don’t come to get me in the meantime.
Anyhow, not to start another conspiracy theory, but why hasn’t the SEC ended mark to market. Hasn’t it been pretty much shown to be a loser?
“I am disgusted that this deal went down without public scrutiny of GM or Chrysler’s books…”
Get use to being disgusted RF especially after 20 January when the children will be in charge of the FedGov candy store…These “Bailout Watches” are going to become infuriating and comical all at once…Like what is was in the old Soviet Union.