>Men Make Such Bad Decisions When Under Duress
Now that the Barak Obama Administration owns General Motors and Chrysler — or at least with their naming of the board and a president it looks like they’re in control — or should I say totally out of control — what about ongoing losses and expenses?
GM and Chrysler are losing entities. Here are some of the continuing expenses Obama lifted from these two auto makers by inserting us taxpayers in their place.
1. Warranties — who will pay for all the warranty work that will need to be done to satisfy current new car owners, and owners of cars still under warranty that aren’t new?
2. What about other loans and outflow of funds that these giants have accumulated?
I mean suppliers. They probably owe suppliers millions of dollars. Anyone bother to do an audit to determine the possible maximum outflow to be swollowed by the American taxpayer? NO!
3. How about pensions? That includes union and non-union workers and 401k programs. Most of them are written so that if the insurance carriers default, the company is on it for the full value of the pension. What about retirement money promised to officers and board members? They are valid contracts, even the gold and silver parachutes.
These American auto makers likely still owe millions to people and companies all over the globe. Who will stand behind these guarantees? Who will pay these moneys? GM and Chrysler were not allowed to go into bankruptcy, remember, so they can’t stiff their creditors. Or can they? Maybe Congress will pass a law — unconstitutional, at least — that will allow Obama to bypass these creditors. He already bypassed Congress when he decided to start running these car companies.
When you do one illegal thing, it begats more illegalities, Barak. It was illegal for Hank Paulsen to lock GM and Chrysler in a room and tell them he wouldn’t let them out until they signed over their companies to the government and promised not to take their firms into regular bankruptcy. That was illegality number one.
Isn’t it interesting that Paulsen, Larry Summers (Obama’s chief financial advisor), and Timmothy Gaithner, treasury secretary, all were working together at CityBank before they were called into government service. Yet CityBank, no matter what crummy condition they were in, was one of the banks that was “too large to fail.” That’s because all three have their own personal 401k plans with City Bank. If it were allowed to fail it would result in a loss of millions of dollars of retirement funds for these three chosen ones. This evil man Hank Paulsen did this same trick to AIG and Bank of America. AIG was told it couldn’t take out bankruptcy, it had to take the money. They didn’t elaborate, however, on how the government would be running AIG henceforth.
As for Bank of America, I wrote a story in Angst Blogger yesterday that AIG would like to repay the $48 billion they got from the government, sometime soon. But the Obama people won’t let them pay it back. They’ve gotten used to the power and they don’t want to give it up, not just yet. Remember that Bank of America took over Countrywide Mortgage and CityBank as part of the deal to give them this money. What a tangled mess we have. We the taxpayers also paid $180 billion to AIG and are running that company, too. All of it was a mistake. All of them should have been allowed to take out bankruptcy. Some day someone will untangle all of this and find that the unholy troika of bad people, Gaithner, Pattersen, and Summers, should go to jail. Have your fun fellas, but sooner or later the bubble will burst and you’ll get caught. As I said, one bad mistake begats another, and another, and another.
It’s like running the stop sign where the cop is hiding. You see flashing red and blue lights in your rear view mirror and you decide to outrun the cop. A long, high-speed chase ensues with both cars going over 100 mph and other cop cars are called in. A barracade is set up, but the stop sign-runner blasts his way through that and goes down the road.
Two cop cars finally catch up and come alongside, banging their cars into his. One of the cop cars overturns and the driver is killed. The other pulls out a gun and tries to shoot the tires of the speeding perp car. But the perp’s passenger shoots back and kills the pursuing cop.
Now the perp is wanted for murder in four states and is going out of his mind. See what I mean, when one thing goes bad it all goes bad? That’s number eight hundred seventy four on Murphey’s list of bad things to expect to happen when one thing goes wrong.This same driver now is going 120 mph to avert capture and suddenly his car goes off a cliff, killing him and his passenger. We make such terrible decisions under duress.
3. What about the other car manufacturers GM and Chrysler own? Who will manage them? I mean Volvo and Saturn for GM and how many others for Chrysler I’m not aware. By the way, whatever happened to that “forced marriage” of Chrysler and Fiat? Chrysler was given an ultimatum by the government, “take their
money or bankruptcy!” That’s the only good piece of advice anyone has given.
My take: I believe we have gangsters running the government. The biggest three of late were Hank Paulsen, former treasury secretary; Ben Bernanke of the Fed, and the biggest of all, Timothy Geithner, current treasury secretary. How can they get away with strong arming these banks and car companies? Some of the leaders of GM and Chrysler — if they had an ounce of guts and money to pursue the government at this point — ought to band together and sue the government. If that doesn’t happen, there will be mahem on the streets because sooner or later the word will get out and people like me and you, the American taxpayer who is getting stuck for all of this baloney, just won’t stand it any longer.