What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization.
OK, maybe not Timmay!!! But Uncle Sam,BO, and the bosses of UAW. Unlike Timmay!!!, the car czar is not a known tax-cheat, just a suspected bribery participant in misuse of State of New York pension funds.
Now hat the Gummint and the UAW are going to control GM and Chrysler, how long will it be before the Gummint uses it's power of the pen to severely hamper any competition? How long until Gummint accounting practices replace GAAP (Generally Accepted Accounting Principles)? How long until the only car you can get will be used Gummint vehicles, or maybe the 21st century Trabant?
If they do this quickly enough, with their typical vampire enthusiasm, perhaps some people may take a second look their lust for the cash flowing through the healthcare system. HINT: They aren't really concerned about delivery of healthcare, it's about delivery of their cut (or taste as Tony Soprano would call it).
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