Good thing he’s not a socialist….

May 23, 2009

A round up of stories about The One’s takeover of the means of production from the past few weeks:

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General Motors, facing the almost certain prospect of a bankruptcy filing, said Friday that it had drawn another $4 billion from the Treasury Department, raising its total from the government to $19.4 billion.

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Unemployment in the United States has risen to European averages, and seems likely to pass them when international data for April is calculated.

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What we now face is a nationalized car maker [GM], with the government owning 51 percent of the company and the United Auto Workers (UAW) union holding a stunning 38 percent of shares. Bondholders, who normally have first claim on a company’s assets, receive only 10 percent instead, and the current stockholders get the remaining 1 percent.

The UAW, acting for its members who are former workers and GM pensioners, did indeed represent something like $20 billion worth of GM’s liabilities. So the idea that the union should get an equity stake in return for that is fair enough. However, the UAW is getting three times as much as the bondholders, who represent $28 billion of GM’s outstanding liability. When the bondholders protested, the administration refused to meet with them.

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The Treasury Department is preparing to announce as early as today that it will invest an additional $7.5 billion in GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company.

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A report Friday said federal officials are pressuring Bank of America Corp. to revamp its board and bring in directors with more banking experience.

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Obama cuts Chrysler advertising budget in half.

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The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates.

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Just imagine how bad things would be if Obama were a socialist?!?!!

Update  – USA could lose AAA rating! It’s almost like the government is acting as irresponsibly as those nasty speculators Obama keeps talking about…

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One Response to “Good thing he’s not a socialist….”


  1. […] 24, 2009 Update on my earlier post about The One’s takeover of the means of production […]


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