U.S. Taxpayers About to Buy GM
May 20th, 2009Selling future generations down the river: Made in America.
Via: Reuters:
If General Motors Corp (GM.N) files for bankruptcy, as widely expected, its healthy assets will be quickly sold to a new company owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who was not cleared to speak with the media and would not be identified, said the U.S. government would pay for the assets by assuming the automaker’s $6 billion of secured debt and forgiving the bulk of the $15.4 billion of emergency loans that the U.S. Treasury has provided to GM.
The government is negotiating the terms on which it will assume GM’s secured debt and might make an the offer to holders of the debt that is far superior to the one made to Chrysler LLC’s secured lenders, the source said.
Chrysler filed for bankruptcy in April and has proposed paying its secured lenders about 28 cents on the dollar.
The new GM is likely to distribute stock in the company to GM’s unions in return for concessions on wages and benefits, the source said.
It seems to me that this is what the final stage of the takeover of the military-industrial complex looks like: the complete merging of the military, industry, and government, with “democracy” being a set of powerless rituals we go through for “old times sake”.
And here we are!
This is a very odd situation.
Under the ARRA (American Recovery and Reinvestment Act)the Obama administration has billions authorized for the development of batteries and/or electric vehicles. Must be spent in three years. That is a very SHORT WINDOW for any US government program to obligate that amount of money. If its not obligated in that window its gone.
If we, the US taxpayers now own the car companies, the BO admin can literally “send” taxpayer money to these companies to do what its want to do under the ARRA: electricize the vehicle economy. It’s not a forced takeover like during WWII when companies were forced to produce tanks and what not for the war effort, or is it? I can’t quite wrap my brain axle around what it all means.
I’d prefer that the the oil companies had been nationalized at the same time this is happening to the auto industry. These are the ROBBER BARONS that have caused the world dependency on oil. So many wars paid for by humans everywhere in flesh and blood for oil.
Increases in gasoline prices are a joke. 35 cents per gallon in less than two weeks. Oh sure. There’s always an excuse as to why the price increases. Get out your handkerchiefs and sob for the sad, sorry oil companies.
But the summer months are when people like to get out in the cars. And the cash registers always “seem” to start ringing higher prices.
Its tiring being over a barrel.The end game of oil is getting very tiring to live through.