Obama Administration Files Bankruptcy For General Motors

Proof • June 1, 2009

Everyone is saying that “General Motors has filed for bankruptcy today,” but let’s be honest. Obama is calling the shots.
So long General Motors. Hello Government Motors.

Under the proposed restructuring, about 60 percent of the new GM would be owned by the United States, about 12 percent by the governments of Canada and Ontario, a union health trust would own 17.5 percent, and the company’s current bondholders would get 10 percent.
The United States will invest another $30 billion during and after the GM bankruptcy process, officials said last night, bringing the U.S. commitment to $50 billion.
Following that infusion, “the U.S. Treasury does not believe or anticipate that any additional assistance to GM will be required,” a senior administration official said last night, calling the restructuring a “permanent” solution.

So, much as with Chrysler, the federal government and Obama’s political supporters at the UAW get a bigger chunk of the pie than the bondholders even though the bondholders had a greater portion of GM’s debt. Wonderful.
The question that nobody seems to be asking, though, is why General Motors had to be “guided” into bankruptcy by the federal government. Back when the auto industry bailouts were first being debated, weren’t we told that we had to save these companies from bankruptcy? That they were “too big to fail?” Now, suddenly, the government gets involved and it’s ok for General Motors to be restructured?
General Motors was never in danger of ceasing to exist, I think. The company could have filed bankruptcy and restructured on its own without any need to burden the taxpayers. What was in danger of happening, though, was the UAW having its labor contracts with General Motors seriously diminished should the company have restructured on its own.
Thus the extra-special, government-guided bankruptcy. Not for the good of the country or the economy or even General Motors, but rather the good of Obama and his political supporters.

Tags: Asshats, Domestic Issues, Politics

http://Array robert108

Obama’s fascist takeover continues…
Bat One

Most annalists [sic] say that GM would be liquidated with the bond holders getting nothing.

Which analysts are those, Buzz? Surely not someone who knows what they’re talking about. What the bondholders would or would not get in a liquidation would depend entirely on what sorts of bonds they are holding, how those bond contracts are written, and what legal arguments were made on their behalf before the bankruptcy judge overseeing the liquidation.
Buzz

General Motors was never in danger of ceasing to exist, I think.

Really, then what is your plan for GM to secure Billions in cash to stay in operation after a bankruptcy, or during it? Most annalists say that GM would be liquidated with the bond holders getting nothing. At least now they are getting a stake in the company.
http://sayanythingblog.com/ likwidshoe

Buzz spews, Now I know that you would rather see the Million or so Union workers thrown out in the streets, being you are the hating fuck that you are.

Why so angry? And why are you targeting Bat One? It wasn’t his fault that GM is in such dire straits.

Maybe you should sit down and ask yourself why you’re so angry at people who had nothing to do with the failures of your ideology. Your anger is misplaced.
Bat One

I would still like to know by what legal or constitutional authority Obama is directing the terms of this bankruptcy.

The authority to re-organize a corporation and to abrogate its legally binding contracts, which is what this amounts to, rests with the judiciary, and specifically the bankruptcy courts… not the executive branch. Obama’s actions constitute the “taking” of private property in violation of the 5th Amendment.
Buzz

But administration officials say that the bondholders would receive even less for their investments if GM were liquidated. In that case, the company’s other creditors, such as the government, would be paid off first, they note. Yesterday, it was announced that 54 percent of bondholders had approved the deal.

“By the time you finished liquidating GM, there would be nothing for them,” an administration official said yesterday.
Sally

An end of an era for sure. Too bad we couldn’t have ended it last September before dumping billions of our dollars into this obvious black hole this was then and now before power-hungry politicians got a hold of this. Too bad taxpayers will now be subsidizing crappy cars produced by our friendly Government Motors for years to come through tax subsidies and GM consumer tax credits. Too bad we the people have allowed our elitist leaders in D.C. to run over us, our liberties, and our freedoms the last several years (Bush) and months (Obama). An end of an era to be sure.

At least liquidation deals abound. Sigh.
sc

I am one of those greedy bondholders. I have held GM bonds for years. GM lost 30 billion last year and now because of that, bondholders (which hold 27 billion) are being asked to make up for the 30 billion loss. GM will not survive. Nobody will invest in the new GM except the government and that can’t go on forever.
Stan

HERE’S WHAT I DON’T GET: Do you mean to tell me that this company couldn’t forecast ahead 2 months and see that they would still be going bankrupt after taking 20 BILLION DOLLARS in taxpayer money? Give me a break. Even my pothead loser brother has a better grasp on his finances 2 months into the future. This was some sort of scam all along. Now they want ANOTHER 30 BILLION DOLLARS so that they can restructure under BANKRUPTCY?!?! Hell, maybe I should “go broke”… Doesn’t sound like a bad deal at all.

I’ll never buy a GM again…. EVER.
Buzz

First, they note that the terms of the proposed GM restructuring echo the terms laid out by the Bush administration in December, when it extended $13.4 billion in loans to GM.

The Bush administration’s loan agreement required a 50 percent reduction or “haircut” for the union trust, but a 66 percent cut for the bondholders. The Obama deal requires larger cuts for both sides.

Was bush in bed with the UAW also?
Buzz

I would still like to know by what legal or constitutional authority Obama is directing the terms of this bankruptcy.

Says bat for the 26th time about this subject.

“The only difference here is that you have the government playing the role of the vulture investor,” Ross added. “They are the only ones willing to make this investment, so they’re calling the shots.”

Well there you have it. Because they can.

Now I know that you would rather see the Million or so Union workers thrown out in the streets, being you are the hating fuck that you are. But Obama has seen fit to rescue the 100 year old company from liquidation and save most of those jobs. Another feather in the cap of the Great One.

Maybe there will be a great hurricane that you can blame Obama for this year, until then keep your head up.
bill-tb

Obama Motors … builder of quality suicide clown cars.
Bat One

Because they can.

Just what one would expect from semi-literate, union dumbass thug! As long as we can get away with it, then its okay. Can’t answer no legal or constitutional question anyway, but as long as its your boy doin’ the getting away with, then it don’t much matter… right, Buzz?

Now I know that you would rather see the Million or so Union workers thrown out in the streets, being you are the hating fuck that you are. But Obama has seen fit to rescue the 100 year old company from liquidation and save most of those jobs. Another feather in the cap of the Great One.

More, utterly predictable, union horseshit. Completely overlooking the fact that GM is in this situation because American consumers just aren’t much interested in buying what all those over-paid union “workers” have been manufacturing. But we’re all gonna jump at the chance to run out and buy an Obama-inspired Smart-car clone that couldn’t survive a crash with rhododendron. Right???

Right!
sayanything-4625

Now I know that you would rather see the Million or so Union workers thrown out in the streets, being you are the hating fuck that you are. But Obama has seen fit to rescue the 100 year old company from liquidation and save most of those jobs. Another feather in the cap of the Great One.

You called them “factory slugs” not too long ago. Make up your mind.
Buzz

I am one of those greedy bondholders.

You should of sold when you could of gotten .58 on the dollar. But your greed to make even more stopped you. When you invest in a company that has such a poor rating you get the benefits of higher yields, but also the risk of losing your initial investment. You knew the risks when you bought, why cry now?

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Obama Administration Files Bankruptcy For General Motors

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