I awoke this Sunday morning earlier than expected so I put on some coffee and picked up the paper outside. I noticed that this morning the cool temperatures, fog, and dew that are benefits of living on the coast were on full display. It felt good to take a few deep, controlled breaths and enjoy the calm of an early dominicus.
- $20 billion of TARP dollars already in GM, another $50 billion on it's way. TARP dollars never intended to 'bail-out' car companies. Big government rule-changing at it's finest.
- Taxpayers won't see their dollars returned as the pols are promising until the company hits 14 million in car sales. The current sales? 9 million. Ostensibly, we will never 'see our money back.' I would bet my life savings on it.
- Pols using their new power to force the greenie agenda on GM and thereby the taxpayer, UAW huckster mafioso chief Ron Gettelfinger has expressed that Obamanation greenie cars will be manufactured only in high union-cost US facilities, not in competitive overseas plants, therefore taxpayers could be forced to prop up unprofitable production into perpetuity.
- Socialization of unprofitable businesses spells doom for American capitalism, they should have been allowed to go bankrupt without government intrusion, thank you Bush administration for kicking the can down the road, thus giving us this.
- Feds agreement to 'back up GM warranties', endless taxpayer liability as such.
- Reminiscent of crony-capitalism in countries such as Russia, in bankruptcy, bondholders get a smidgen of control and slice of the pie while the Union, (UAW), due to cronyism, gets a far bigger stake Likewise the Federal government. Read a real-life story of a GM bondholder named Jim Modica here at New Conservative Generation. Real-life stories like this ignored by the press because they are only interested in the plight of the Leftist Union mentality.
- Government intervention, secret or not, in closing GM dealerships in the future may hinge on cronyism and political interests. Case in point, recent stories in a similar vein re: Chrysler dealerships. Check here, here, and here for stories that confirm this. Hat tip to Eric at Libertarian Republican for leading on the Chrysler dealership closing cronyism story.
Did I miss anything? Feel free to add your thoughts in the comment section and I will take good points from the readers and update this post with them. Free Market RIP.
Update 1 :
In a note to the Left Coast Rebel, Conservative Generation offered up the following -
"People incorrectly assume the UAW and the workers are one and the same. They are not. The UAW gets dues, part of the worker's salary in exchange for the UAW to represent them in labor decisions. In this deal the job bank is gone, some of their sick/vacation time, and new employees start at competitive vs. inflated salaries. Also, in moving the pension into GM stock, (completely undiversified...much like Enron), the pension funds are both less valuable and riskier. As noted by the paper you read the autoworkers actually gave up quite a lot here. Who sold them out? The UAW of course. The UAW will lose some union due funds because of the plants that are shutting down, but they also get to run Chrysler and GM. Before they only were representing workers, but now they get to do that plus they get the keys to the company."