The retiring CEO stated that GM should not pay back the $10 billion loss incurred by the American Taxpayer.
Mr. Akerson’s reasoning is that any investment in stock is risky and that the Treasury Department knew that when they made the stock purchase.
Actually…. That’s disingenuous at the very least… and really an outright lie…. EVERYBODY knew that GM was a very bad investment because it was bloated and inefficient and is saddled long-term with the same problem the United States Government has… paying for Union retirement…. That’s why no private or institutional investors bought GM stocks or bonds. GM attempted to raise capital through the normal means… and couldn’t… because they were too big of a risk… and didn’t want to do what was necessary to do things the right way: discount the stock to a level that appropriately rewarded risks in such a risky business, or go into bankruptcy and reorganize….. Renegotiate Union contracts so that the future debt would be manageable… just like Congress and the Senate just did to Veterans with the Budget…
The reason the Treasury Department bought stock was so they could essentially increase leverage to make GM do what they wanted. Enough stock buys you control of the company. So… the government could dictate the agenda…. Which was saving the Unions….
That’s an outlandish statement, I know. So… I should present some evidence…. The Union workers retained their retirement… and remained fully vested…. Non-Union pensions were sacked…. And an e-mail chain showed that the decision was made in the White House…. Here’s the evidence….
But… that’s not all…. GM and Chrysler also closed down profitable dealerships…. Dealerships franchises in which private citizens invested their own money and lives….
Of course, there were lay-offs of Union workers, too. But I wonder if the dealerships and the non-Union workers were a voucher for $25,000 towards a new car and up to $115,000 in severance….
Here is an article about the Federal purchases of automobiles by Bloomberg.
GM sold more cars to the government than Ford for most of the years and sold them cheaper. And injection of capital drops a companies operating cost and they SHOULD be able to make and sell cars cheaper. That’s the Chinese model….
The bottom line is that the GM stock purchase and sale was a very bad deal for American Taxpayers and a very good deal for Unions and GM executives. You can bet the two CEOs who chose to retire since 2008 have both been very handsomely rewarded. More handsomely than I was for bailing them out….
What did the people in power in government get for their investment of American Taxpayer money…? Here is a Guardian story about Union workers going on leave to campaign for Obama… and the political contributions of Unions…. I wonder who paid this guy…? And is he a Union official? Because if he is… he will be compensated disproportionately through his Retirement… which American Taxpayers are funding….
Well… it’s legal for corporations and Unions to compel workers to campaign for a particular party or candidate….
Interesting. The United Auto Workers Union made $11.4 million in political contributions in the 2012 cycle. All but $4000 went to Democrats…. Here’s the breakdown….
This is an interesting perspective on how Unions establish monopoly power….
Earlier I wrote about the German system in which Industry and Labor Unions cooperate…. Methinks the German Executives misunderstand radical Unions who traditionally have provoked confrontation and polarization with Industry in an attempt to create brand loyalty….
I suspect many will blame George W. Bush for the bailout of Detroit. Obama had already been elected before Bush did anything to bailout Detroit… so he was a lame duck… and the writing was on the wall…. Democrats already held both the House and the Senate…. And… Bush sent Detroit $17.4 billion… and that was a loan…. Which required repayment with interest….
How does President Obama handle things differently? He makes campaign speeches… and claims that they aren’t….
He uses taxpayer funded events to push Volkswagen employees towards Unionization….
Here’s what the Union wants in return….
The ability to force ALL Union workers to contribute to the Union… whether they want to or not…. A friend recently told me that even in Right to Work States the Federal Government Union only allows opt out every 15 years…. The rest of the time… you are FORCED to make political contributions…. Can you imagine the uproar if everyone who worked at an Abortion Clinic was force to make political donations to Right to Life organizations…? That would certainly be all over the headlines!
The House and Senate just passed a budget. First in Obama’s tenure as President, I believe. And that budget guarantees the Pensions of Federal Union employees at current levels…. And slashes the Pensions of our Military… who were no less employees of the Federal Government than the Union members…. The only difference is Military men and women are considered essential… and therefore not allowed the benefits of protection by forming a Union…. So… they can get screwed… for risking their lives… and protecting the money flowing to the Unions….
Anyone who is not wearing political blinders can clearly see that Obama is in the pocket of the Unions. What I have just shown clearly demonstrates the cronyism, which in this particular instance is clearly corruption: money being stolen from the American Taxpayer and being passed back and forth between Obama and the Union through political contributions through forced payment of Union dues and repayment through fallacious stock purchases and budget deals…. I have previously discussed the negative Economic Impact of corruption and the Keynesian Economic Model that is predicated on Service and Imports and does not seek to improve worker productivity. Today I am highlighting the basic injustice and unfairness that is inherent in such blatant political corruption. Non-Union workers, Franchisees, our Military and the American Middle Class have all been fleeced by Obama and the Union and 1% like the CEOs of GM… and the Wall Street Bankers… all of whom have made out like bandits… at our expense….
The Republicans certainly participated as well….
Despite what Saul Alinsky states in Rules for Radicals… you can never make a country or political system more just by institutionalizing Social injustice through political corruption…. The people in power may get what they want…. But the populous will never obtain justice. The most that can be accomplished is redirecting the targeting of injustice…. And that’s just plain wrong…. Nothing more than adding momentum to the pendulum… and setting everyone up for ever-increasing injustice….
One last thought…. Iraq….
I never believed America should have fought that war. Not because Saddam Hussein was a nice guy: he systematically murdered everyone in his nations government and usurped power. He systematically repressed the Shi’ite majority and committed numerous atrocities against the Kurds, who rebelled not only in Iraq, but Turkey as well. The CIA Fact Sheet before the invasion explicitly stated that Iraq had chemical and possibly biological weapons, and Saddam made very visible efforts to obtain nuclear weapons and long-range attack capabilities through technology he bought from Germany and France and others…. He certainly deserved what he got….
But… we had no end game…. No exit strategy…. Iraq had no history of Democracy… and no recent and significant experience with self-governance…. And Iran was the real issue the whole time…. Better to let Iran and Iraq keep fighting….
I have no issue with the claims that Iraq had Weapons of Mass Destruction. Saddam Hussein claimed he had them….
But… the cronyism involved in many of the contracts… and the political contributions likely involved… seem to be consistent with corruption…. And they set a bad president….
Last point…. Once we got into Iraq and Afghanistan…. We needed to do a much better job getting out…. Including paying the Retirement of our men and women who served…. ESPECIALLY taking care of our Military….
Jettisoning our Military… treating them with suspicion because they have a different set of values… treating them with suspicion because they value honor and have a moral conscience… is unconscionable….
America’s leaders and many of our young people are being taught a Liberal Progressive Socialist Amorality that follows Secular Humanism. The Pleasure Principle is the highest moral authority. Everyone should get whatever they want without working for it… and the political system should provide it for them. No one is responsible for themselves. Society is to blame. And Society cannot be held accountable. So no one is ever held accountable. So… change is impossible….
The Military doesn’t work that way. Cannot work that way. Individual accountability and responsibility and discipline are necessary for effective operations and security. The Pleasure Principle is antithetical to Military Discipline….
Secular Humanists and Liberal Progressive Socialists seem to absolutely convinced that they are RIGHT. They brook no discussion. They do not seem capable of understanding anyone who does not seek to live through via the tenets of the Pleasure Principle. Thus… they treat everyone who isn’t a clone with suspicion….