GM & Chrysler Bankruptcy

G.M., Leaking Cash, Faces Bigger Chance of Bankruptcy

Even after receiving $15.4 billion in federal loans, General Motors is once again on the brink of financial collapse.

The automaker’s first-quarter earnings released Thursday showed that G.M. was losing more money and sales than it was in late December, when the government began its bailout…………..

This is occurring as Chrysler is in Bankruptcy

Chrysler Files to Seek Bankruptcy Protection

President Obama forced Chrysler into federal bankruptcy protection on Thursday so it could pursue a lifesaving alliance with the Italian automaker Fiat, in yet another extraordinary intervention into private industry by the federal government.
Flanked by his automobile task force of cabinet secretaries and business advisers in the White House’s grand entranceway, Mr. Obama announced a plan that would allow the United Automobile Workers, through their retirement plan, to take control of Chrysler, with Fiat and the United States as junior partners. The government would lend about $8 billion more to the company, on top of the $4 billion it had already provided……

If this is the good things that comes out of companies being to big to fail and then being supported by a federal government which is to big to fail.

This just proves that the US federal government is to bg and needs to be dismantled and let the states try to run things since the feds have screwed things up so badly.

GM will move jobs out of US using Taxpayer Money

This is our wonderfully brilliant central government planning that was started by Bush and is being completed by Obama.

Under Restructuring, GM To Build More Cars Overseas

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.
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Everyone needs to call their congressman (woman) and tell them thanks for letting the executive branch of the federal government spend out tax dollars to send jobs out of this country.

Just the normal expected result of the government helping out.

1st 100 Days & the future failure of America

I thought after the 1st 50 days that things could only get better, lots of new people making new people mistakes, these people really have pride in America just not reacting to well to the new power and environment.

It has just gotten worse except for the distraction game, the Obama administration has gotten very, very good at distraction while the real agenda of the government take over of a majority of American business marches forward.

Some of the highlights/lowlights
1) The American Apology tour through Europe. I thought only look at how important I am, self-indulgent Hollywood types (Penn, Glover, Bellafonte) and ex-presidents (Carter) went around the world saying America is evil. Now the sitting president is apologizing to the world because American Capitalism over the last century and a half has brought an improved standard of living to a large segment of the world population.

2) Cut 100 million dollars from federal budget, same as a family making $45000 a year taking a $1.22 annual pay cut. I wonder what will be cut in the family budget to make up for the income loss, need to drink water instead of the bottle of soda at today’s lunch. savings achieved, no more cutting needed.

3) Media lapdog to the president – ignores hundreds of thousands of protesters who think that government is overstepping its bounds and government intervention into private society needs to be curtailed.

4) Continue to ignore friends and prop up enemies. (Iran, Cuba, Venezuela, North Korea) And listen to them speak while they rant about how evil America is.

5) Politicize the security of America by releasing CIA memos

All of these are a distraction as they push through a universal health insurance and energy cap and trade plan.

Universal health care will result in limiting access, it is the only way to decrease costs is to limit access. See Charles Krauthammer collumn. The government has convinced a majority of the people that the America Health Care industry is broken and can only be “fixed” by the federal government.

The federal government is going to do the same thing with the energy industry under Cap & Trade. Cap & Trade will result in significant 300 to 400% increases in energy prices which will raise the prices for each American household about $3900 dollars more a year. This will result in American’s becoming enraged against energy companies and utilities giving the government the support to price cap and nationalize the energy industry. This will result in less energy for everyone to use.

It is called hidden taxes on business which gives those in power the ability to create a crisis and then solve the crisis by taking more power.

America is on a road to rapid failure and lower standards of living for the good of everyone.

POWER CORRUPTS, ABSOLUTE POWER CORRUPT ABSOLUTELY!!!!!!!!!!

Why Bank’s should Not have taken Gov’t Money

US to put conditions on Tarp repayment

Strong banks will be allowed to repay bail-out funds they received from the US government but only if such a move passes a test to determine whether it is in the national economic interest, a senior administration official has told the Financial Times.
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The official said former Treasury Secretary Hank Paulson was right to treat all the banks the same way in late 2008 at the peak of the crisis but it was now necessary to differentiate more between institutions.
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I hope the banks will learn from this, never trust government, they took the government’s money when some did not want it, now that they want to give it back since they never really did much with it to begin with, the government will not take it back until certain tests are passed.

All Businesses, if you want to be independent, do not take government “loans”. The strings will never be gone and if they want the government will take over your business from you. ( New GM CEO ring a bell.)

Now since the public has gotten more vocal about stopping the insane spending, Congress wants to back out. The government solution is not to let the banks figure it out for themselves. The government will just buy the banks by taking over the bank’s stocks and destroy an individuals common stock value.

U.S. may convert banks’ bailouts to equity share

President Obama’s top economic advisers have determined that they can shore up the nation’s banking system without having to ask Congress for more money any time soon, according to administration officials.

In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

Remember, the government will change the rules whenever it wants to keep control.

Stopping this type of government behavior is the real root of the tea parties last weak. The government needs to get out of the way and stop trying to prevent some failures and preventing all from succeeding.

Obama Runs General Motors

This is such a terrible precedent but what does a private business expect when it looks to government to help.

GM Chief to Resign at White House’s Behest

The Obama administration has forced the longtime head of General Motors to resign and said yesterday that it would withhold additional federal aid to the auto industry unless the ailing companies undertake changes they so far have been unwilling or unable to make.

As badly as GM has been run over the last 30 years this is a horrendous event for those of us who want a limited government. As I have stated before GM should have gone into bankruptcy protection to change its long term prospect for success.

This is a sad day in America and is the culmination of decades of effort by communist/socialists to destroy the free markers. Welcome to the inefficient government run unionized auto company that will cost tax payers untold trillions of dollars.

Welcome to the Socialist States of America dominated by a strong federal government, week state and local governments, the end of personnel liberty which is exactly the opposite of the principals on which America was founded.

Good-Bye Capitalism, welcome socialism comrade.

Saturday’s cartoons – politics

from townhall.com

policial cartoons

From IBDEditorials.com


From Townhall.com

Economy – Flushing down the toilet

Started surfing a little at lunch time today and I think we are watching the collapse of America state by state as to much government spending runs themselves out of money and finally some are taking a stance over to much government.

California about to implode and Kansas not able to pay its bills as the Dow drops 3+% again today.

As the stock market looks to the future it sees nothing but failure and losses. Since Obama was elected the Dow has gone down over 2000 points. If the market felt there was hope in the next year or two the market would be flat to rising despite the reports of what has occurred in the past.

As Obama’s reverend stated, America’s Chickens have come home to roost. We are reaping the rewards of government excesses of the last 50-70 years as the bills are coming due. People and businesses have followed the government’s example, living above one’s means for the last 20+ years.

Evolution it reality, even for humans, the heard needs to be thinned, the weak do not survive and are taken by the predators. The correction is inevitable and necessary for survival of the species. Evolution and nature are cruel. It is the reality of life.

US Government spending will bankrupt the world

The US federal government is in the process of bankrupting the world as accounting practices that the federal government does not allow private companies to use are used to hide the real government debt. This cuts across party lines and the end of liberty and personnel freedom in the world.

The total economic of the world based on the ponzi scheme known as government spending is close (if not already beyond) the tipping point. Paper currency will be virtually worthless since the governments that print them have no possible way to back their value.

Government spending is the problem and drastic government spending cuts (real cuts not decreasing the rate of increase) of 50 to 90+% in some cases are required.

Federal obligations exceed world GDP, Does $65.5 trillion terrify anyone yet?

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the “2008 Financial Report of the United States Government” as released by the U.S. Department of Treasury
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“The federal government is bankrupt,” Williams told WND. “In a post-Enron world, if the federal government were a corporation such as General Motors, the president and senior Treasury officers would be in federal penitentiary.”

Assuming 330 million Americans, 65.6 trillion debt is equal to $198,484 per American. This is on top of any state, local or personnel debt.

If you want to really understand the what the future holds and the consequences read the A Citizen’s Guide published by the treasury department.
It would be nice if government would live by this motto in the report.

Using the government accounting methods that if any private business used, the CEO, CFO and board of directors would be in jail, here are some tables from the report on future predictions.

These projects do not take into account the money spent since Oct 1, 2008. TARP and the new stimulus plan are on top of this staggering debt.

Americans need to hold our employees the elected government officials responsible. New blood is needed.

Thoughts on 1st Obama Press Conference

I did not want to write what I was thinking during the press conference because I wanted to think about the questions and answers taken in their entirety instead of one piece at a time. I also did not watch any of the pundits analysis of the press conference.

My impression of the Obama answers to the questions:

1) I will negotiate with Iran who has leaders that publicly espouses that America needs to be destroyed because it is the great Satan.

2) I will not negotiate with Republicans who believe that government is not the total solution to America’s issues and that private business is at fault for all that is wrong with America.

3) I will talk about partisanship and blame the republicans for not agreeing with me and praising me since I agreed to listen to their ideas. I will not mention that the democratic leadership of the congress totally ignores the republican ideas for which I am bragging about listening.

4) If I do not get what I want America will be a catastrophe and anyone who disagrees is ignorant.

5) I will not look into the camera as I answer the questions giving the impression that I am above the common man since I do not need to look them in the eye. I also will tilt my head to one side while responding to questions which is a body language sign for begin uncomfortable and lying.

6) Republicans and the Bush administration are totally at fault for everything that is wrong in America and I am the savior who will right their wrongs.

7) Even though 0% down and interest only mortgages caused this crisis in the short term more of this needs to be done and in the future sometime we will fix the problems caused by the short term fixes.

8 ) Even though Social Security (entitlements) will be paying out more than is collected on a monthly basis is 6 to 7 years I am going to ignore that since I think any crisis is 10 to 20 years away.

9) Elimination of the current health care industry is a necessity and being rebuilt as I see fit it required for America to go forward.

I tried very hard to find something positive from the press conference. I wish I could have found something positive but the body language, repeating of campaign talking points and failure to look at the camera (the American people) while talking leads me to believe that Obama is hiding his true beliefs or he is lying.