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EDITORIAL: Government recalls GM stock (Good read)
The Washington Times ^ | December 26, 2012 | Editorial

Posted on 12/26/2012 8:48:45 AM PST by jazusamo

Administration puts an expensive end to a disgraceful episode

General Motors will no longer be “Government Motors.” The Treasury Department on Wednesday announced its intention to liquidate federal holdings in the automobile company over the next 15 months. The final tally will show this policy has been a disaster for taxpayers.

Under the best case scenario, the public will wind up shelling out more than $13 billion by the close of this unfortunate episode. Though President Obama has portrayed the GM bailout as saving Detroit, it was really a reward for the auto unions. It was a celebration of bad management that steamrolled the rights of creditors. It was precisely the sort of thing that ought never happen in an economy based on free exchange.

In the aftermath of the financial meltdown four years ago, Congress created the Troubled Asset Relief Program (TARP) to bail out several of the big-name Wall Street firms. Uncle Sam created a similar program to funnel almost $50 billion to “save” GM. This allowed GM to bypass much of the traditional bankruptcy process, which is designed to permit a struggling business to reorganize in an orderly fashion. Avoiding bankruptcy preserved the lavish union contracts largely responsible for sending the company over the edge in the first place. As part of the bailout deal, Uncle Sam grabbed a 60 percent ownership stake in GM...

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Government
KEYWORDS: bailout; cultureofcorruption; democratscandals; gm; gmbailout; governmentmotors; missionaccomplished; obama; obamalegacy; organizedlabor; pensionbailout; uaw; unions

1 posted on 12/26/2012 8:48:53 AM PST by jazusamo
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To: jazusamo

The company is still in need of Chapter 11 process, in order to trim off all of the union fat and junk that keep it from competing.

Will Obama allow nature to take its course in order for GM to cleanse itself?


2 posted on 12/26/2012 8:59:55 AM PST by lurk
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To: jazusamo

won’t be long and GM will be back in bankruptcy again anyways.

I won’t touch their stocks at a penny a share.


3 posted on 12/26/2012 9:00:05 AM PST by cableguymn (The founding fathers would be shooting by now..)
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To: jazusamo

If just one person who thinks he’s smarter than everyone else would admit “I was wrong. I thought GM paid off the loans. But they didn’t. So, obama’s NOT the greatest president in history after all”, I’d have some hope. But that won’t happen because all liberals will never admit they were wrong.


4 posted on 12/26/2012 9:04:35 AM PST by Terry Mross (I'm here for the entertainment....and I know there are people I don't like who are reading my posts.)
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To: jazusamo

Yep, it’s been “a disaster” for taxpayers indeed. And as well for stockholders, ( I lost 2,000 shares which was a lot of money for me) bond holders, nonunion GM employees, dealerships, all Delphi employees and other suppliers. UAW employees were the only ones to come out good on this caper.


5 posted on 12/26/2012 9:04:40 AM PST by snoringbear (Government is the Pimp,)
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To: cableguymn; lurk
Another bankruptcy is a real possibility. It'll be interesting to see what Obama will do if it indeed happens again and on his watch, it may be very difficult for him to pull off that stunt again.
6 posted on 12/26/2012 9:05:31 AM PST by jazusamo ("Mercy to the guilty is cruelty to the innocent." -- Adam Smith)
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To: jazusamo

The only problem is the Bankruptcy Judge is on the verge of UNWINDING this whole fiasco for being LIED to by GM and the Government Lawyers. It aint over yet. I hope he does and then IMPRISONS ALL THE LAWYERS in this case.


7 posted on 12/26/2012 9:07:18 AM PST by eyeamok
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To: snoringbear
UAW employees were the only ones to come out good on this caper.

Exactly, and Obama backed them all the way.

8 posted on 12/26/2012 9:08:03 AM PST by jazusamo ("Mercy to the guilty is cruelty to the innocent." -- Adam Smith)
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To: jazusamo

Well written article, but it is a re-hash of old news. Re-distributing wealth means “ cash for my buddies”.


9 posted on 12/26/2012 9:08:10 AM PST by VRW Conspirator (We were the tea party before there was a tea party. - Jim Robinson)
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To: eyeamok

It would be beautiful if the judge reverses his ruling.

He should be making that decision soon but I don’t have high hopes for a reversal.


10 posted on 12/26/2012 9:11:21 AM PST by jazusamo ("Mercy to the guilty is cruelty to the innocent." -- Adam Smith)
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To: cableguymn

Are you recommending a short or put options?
It’s trading at 27 now with about $20 in cash per sh on hand.


11 posted on 12/26/2012 9:11:45 AM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: jazusamo

If Baraq and the Chicago mob can roll SC justices, don’t expect any independence in bankruptcy court.


12 posted on 12/26/2012 9:13:11 AM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: jazusamo

“General Motors will no longer be “Government Motors.””

I believe General Motors will ALWAYS be “Government Motors” heretofore. A name they will never shake.


13 posted on 12/26/2012 9:14:18 AM PST by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: nascarnation

I don’t follow GM stock. So I am not the guy to ask.


14 posted on 12/26/2012 9:17:43 AM PST by cableguymn (The founding fathers would be shooting by now..)
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To: rockinqsranch

Agreed...It’ll sure always be “Government Motors” to me.


15 posted on 12/26/2012 9:18:07 AM PST by jazusamo ("Mercy to the guilty is cruelty to the innocent." -- Adam Smith)
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To: jazusamo

And like everything else in the ObamaDORK administration, they lost us a lot of money with absolutely nothing to show for it.

We should learn...keep liberals away from 1) science, 2) social issues, 3) economics, 4) the military.....er...belay that-—keep them in cages where they belong and re-feed them the bull-Obama they’ve been shoving down our throats.

Oh, and legislate that Obama”care” goes ONLY to them....I will enjoy watching them die in pain.


16 posted on 12/26/2012 9:21:14 AM PST by Da Coyote
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To: eyeamok
The only problem is the Bankruptcy Judge is on the verge of UNWINDING this whole fiasco for being LIED to by GM and the Government Lawyers. It aint over yet. I hope he does and then IMPRISONS ALL THE LAWYERS in this case.

As with assigning John F-in' Kerry to State, millions of homes on the banks books, real unemployment > 16%, bazillions now on food stamps, Medicare and Disability, Obama's 2nd term maybe one crisis after another with no viable solution for any of them. At some-point even his sycophant press cannot carry his water, especially if things come unglued internationally with J. F-in' Kerry in control and we potentially devolve into some financial crisis.

As GWB said, this guy ain't got the chops for the job, and unless they pull a Justice Roberts on this Judge, and he rules the whole GM new-bankruptcy paradigm of the total destruction of contract law cannot stand, one may ask is this the tipping point for Obama as people start feeling the hangover from all his free drinks that his very bad bartending has foisted on all of us...

17 posted on 12/26/2012 9:38:16 AM PST by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: jazusamo

Ping for later.


18 posted on 12/26/2012 9:54:31 AM PST by Parmy
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To: jazusamo
Under the best case scenario, the public will wind up shelling out more than $13 billion by the close of this unfortunate episode.

has to be more than that.
oh wait...the "others" - 17+ billion was to GMAC, er, I mean Ally. 2.5 billion for GM supplier receivables and about a half billion for GM warranty. Not really GM at all <*S/off>
19 posted on 12/26/2012 10:06:50 AM PST by stylin19a (obama -> Fredo smart)
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To: jazusamo
At least half of Americans think this con artist King Obama is a hero. He is their savior and they are proud of what this ass gets away with. Just shows how smart this con man is.
20 posted on 12/26/2012 10:15:04 AM PST by Logical me
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To: jazusamo

It will always be Government Motors because it will always be first in line for government handouts/subsidies. If it can go though a proper bankruptcy and get rid of the unions altogether, then, maybe, they can earn a place in the free market, what’s left of it, again. Even if/when the Gummint no longer owns any shares GM will still be the government’s first best hope to get a respectable number of electric cars on the road and it will have to be done with lots of government money. Other entities may come to own the official shares of GM but the government will be pulling GM’s strings for a long time to come.


21 posted on 12/26/2012 10:29:48 AM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
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To: jazusamo
Under the best case scenario, the public will wind up shelling out more than $13 billion by the close of this unfortunate episode.

But . . but . . but . . how can this be!!??? The president and his sock puppet, Ed Whitaker, went on TV to inform us that Government Motors has repaid "every dollar" of the government loan. And, that was over a year ago!!

Don't tell me that these people LIED!!!



(I'm SO disappointed!)

22 posted on 12/26/2012 10:40:06 AM PST by DustyMoment (Congress - another name for anti-American criminals!!)
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To: jazusamo

bump


23 posted on 12/26/2012 10:49:47 AM PST by lowbridge (Joe Biden: "Look, the Taliban per se is not our enemy.")
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To: DustyMoment

Yep, am wondering if the turkey intends to just once tell the truth. Nah, it won’t happen.


24 posted on 12/26/2012 10:56:58 AM PST by jazusamo ("Mercy to the guilty is cruelty to the innocent." -- Adam Smith)
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To: jazusamo

BTT


25 posted on 12/26/2012 12:08:02 PM PST by AuntB (Illegal immigration is simply more "share the wealth" socialism and a CRIME not a race!)
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To: snoringbear; arthurus; jazusamo

More crony-unionism, break down of Rule of Law (contract).

Grifters don’t enforce market contracts. They peel off mob rent (make you pay a Rat tax campaign contribution) as a pre-condition for briefly leaving you alone.

Too bad GM bondholders... good luck with the cat food.


26 posted on 12/26/2012 3:03:52 PM PST by 4Liberty (Some on our "Roads & Bridges" head to the beach. Others head to their offices, farms, libraries....)
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