Jun 01 2009
GM Dies – Atlas Shrugged Becomes One Step Closer to Reality
“General Motors filed for Chapter 11 bankruptcy protection Monday as part of a plan under which the government will pump another $30 billion (On top of the $20 billion already infused by the taxpayers) into the company with the aim of re-creating the troubled automaker.”
Translation: The government will continue to to waste taxpayer money into a failing business model. GM represents a financial black hole that is being fueled by inept government officials. To put $50 billion in perspective – 56% of students belong to 4 year universities that cost less than $9,000 per year in tuition and fees. Approximately 1.4 million student could have received a free college education (all four years) with that money. Instead it will be wasted into oblivion.
“Senior administration officials, who declined to speak for attribution, said the U.S. government will be a “passive” investor but will oversee operations at the new GM because “the taxpayer will want us to.” Not one of President Obama’s senior economic advisers could or would venture a guess as to when taxpayers would see a return on the massive, White House-engineered investment. “We’re not here to predict,” a senior official said when asked about any timeline for taxpayer payback.”
Translation: More evidence that the government has absolutely no idea what it’s doing. How could you be a “passive” investor and oversee operations at the same time? That doesn’t make sense to me. If they are “not here to predict” and have no idea when (or if) the taxpayers will see a return on their investment then why do it in the first place?
“The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.”
Translation: This is a scene right out of Atlas Shrugged. The U.S government, the Canadian government, and the UAW will own 90% of GM. This is a recipe for disaster.
“Obama is scheduled to speak about GM’s future at midday from Washington, and GM CEO Fritz Henderson is to follow him with a news conference in New York”
May Rand help us all….
Any predictions on how long it will take before the U.S. government forces American’s to purchase GM cars?
Toyota – $18,750 Sticker, $1000 dollar tax for purchasing a foreign good.
GM – $18,000 Sticker, $2,000 operating loss (subtly paid for by the taxpayer)
Stupid American Public – “Wow… A GM vehicle is cheaper than a Toyota!”