A pretty sad thing to wake up today. However, I am sorry to say this, but I knew it was coming. Chrysler never was able to get their act together; unlike G.M. and get a resolution together.
The Report comes via the Washington Post, I won’t quote the whole thing and I kindly ask that you go over and read the whole thing. But rather, I will give some my impressions from the interesting stuff.
My impressions:
The Obama administration last night planned to send Chrysler into bankruptcy, replace chief executive Robert L. Nardelli and pump billions of dollars more into the effort, all in hopes the company can emerge from court proceedings as a reenergized competitor in the global economy.
Government officials clung to 11th-hour hopes last night that bankruptcy could be averted, but talks broke down with Chrysler’s creditors. A bankruptcy filing could happen as soon as today.
The U.S. government’s attempt to save the automaker amounts to another extraordinary intervention in the economy and a landmark event in the history of the American auto industry.
Under the administration’s detailed court strategy, ownership of Chrysler would be dramatically reorganized, the leadership of Italian automaker Fiat would take over company management and the U.S. and Canadian governments would contribute more than $10 billion in additional funding.
Company and government officials had feared that a bankruptcy would stain the brand, shake customer confidence and erode sales, but the administration said it would seek to use the process to create a new Chrysler company. Its ownership would be divided, with the company’s union retiree health fund receiving a 55 percent stake, Fiat would claim as much as a 35 percent share and the United States would take 8 percent. The Canadian government would receive two percent.
Basically this is what General Motors did voluntarily. Minus the Fiat equation, of course. It is a tough break that the creditors, bond holders, and company management could not come together to an agreement. The main and good thing is, that the automaker, itself, will be saved, and that American jobs will be saved.
Now comes the part that will make people like Sean Hannity, Rush Limbaugh, Michelle Malkin, and the rest of the far right wing people howl at the moon:
The automaker’s current majority owner, the private-equity firm Cerberus Capital Management, would have its holdings wiped out.
Now, to be fair; I will report the truth about this holdings company. This company, from what I have read and have been told; is notorious for buying up struggling companies, like Chrysler and shutting them down and selling off the assets to make money. They have done this in past, from what I told. So, while I hate to see anyone lose their money. I actually am glad to see Chrysler being taken away from this company.
Let me also say this. As an Conservative, who believes in “America First”, and believes that business sometimes have to fail; I am not exactly jumping for joy, when it comes to fact that this auto company is having taxpayer dollars being pumped into it. Nor am I happy at the fact, that a US automaker is having a foreign auto company’s management taking over its operations. However, I believe we must be realistic about such matters. We are not living in the 1950’s any longer, we are in a economic recession of monumental proportions, and if we do not drastic measures quickly, we could see a total collapse of the American auto industry. I also know that there is a undeniable truth that “as Detroit goes, so goes America.” Pat Buchanan and I, have been saying this all along; if allow the big three or in this case, the big two to disappear our Nation’s economy would go into free fall. I shudder in absolute horror at the thought of the far reaching implications of such an event.
I will say, as a devout Paleo-Conservative; If we would have rejected the globalism of the Rockefeller-type conservative types and would have imposed strict trade restrictions on Japanese and other such foreign automotive products, these auto companies would not be in the position that they are today. It is because of the Rockefeller-type, Madison Avenue, Neo-Conservatives, whose mantra is “screw the American middle class”, is the reason we are in this position today. Further more, it is the reason that the world is also partaking in our recession as well. Perhaps President Obama will see the state of our globalist economy and will rethink his position on NAFTA and TAFTA and the rest of those toxic free trade agreements that are in place; and impose strict tariffs on imports that are bleeding our economy dry.
Realistically however, I highly doubt that President Obama will do any of that, because he is trying to run as a centrist, or as I like to call it; he is sucking up to the Neo-Conservative right, as they are his biggest supporters, strangely, after trying so very hard to defeat him in the election. Of course, we Paleo-Conservatives know why this is; because the only difference between a Neo-Conservative and a Democrat is the letter next to the name.
The feature that appears unique from GM is bankruptcy. This means the pension funds are lost.
The irony should not be lost. The lobbying of the unions inflated the wages and benefits, and then helped drive the company into bankruptcy. The unions (members of the CFR) also lobbied for more social programs organized by the government that increased the taxation levied upon the workers (ultimately paid by consumers in higher prices)—and helped drive the company into bankruptcy.
Should we note the states that are having the highest levels of unemployment are the ones with the strongest labor laws ?? And the heavily unionized businesses have fled the US ??
Yet the political pundits want to ignore that these factors, along with extensive government punishment/fines (again paid by consumers) of companies by over-regulation, has driven innumerable companies overseas.
And then to “protect” our businesses, we want to increase tariffs. That is another way of saying we want another cost that will be placed upon ALL consumers that will fund more government waste.
All this while we overlook the common factor that has been found in the past economic rescue of Chrysler of decades ago, the Martin Aircraft bailout, the Penn Central bailout, the NYC bailout, the recent Wall Street bailout, the S*L bailout, is that the six largest banks have had directors on the Boards of each who assisted in burdening the company with high debt for economic leverage—and drove the company into insolvency. The taxpayers repeatedly rescued the same six banks—who are too big to allow to fail.
Fiat is a Bilderberg company. Apparently Cerberus Capital Management is not within the CFR circle.
Who is getting screwed here ??
I’d tell you what I think of your little comment about the unions; but I do not want to chase off any new readers here. You’re entitled to your opinions, even if they are stupid.
good day!
Are you suggesting unions have not dramatically increased the wages and costs of labor that directly add to the cost paid by all consumers ?? Or that unions are permitted to exist only as a government protected entity ??? (Be sure you consult with air traffic controllers of 1979 before you answer.)
Is it stupid to observe the heavily unionized companies were the first to offshore ?? The jobs, and the tax base, were lost.
Is it stupid to observe union hierarchy have continually pushed the union membership to expand social programs that result in higher taxation on union members as well as on all taxpayers ?? [Is this a liberal or a conservative agenda ?]
Are you suggesting the union hierarchy are not members of the CFR and have the New World Order and one world government as a prime objective ?? The union membership be damned.
We might recall that Hitler relied upon the union membership in his drive to power and after he was elected, the unions were destroyed to prevent them from resisting Nazi oppression.
I try to be a big boy. Lay it on me.