How will legit companies like Ford; who didn’t take a handout, be able to compete fairly with bailed out GM and Chrysler, who have the backing of big government? Sure wish anit-trust laws applied on this. Not that it would matter, look what BHO did to corporate bankruptcy law.

Of course this is payback to the UAW and the rest of the unions. The UAW even got a concession, GM will not be allowed to sell any foreign built cars in the US. We are looking at hundreds of billions of tax dollars shoved down this rat hole. The cars will be a joke, but there is no stopping “government motors” now.

Just look at how the government has run Amtrak; good money after bad for how many years now?

it can be argued pro or con on this issue. However lets not get ridiculous like Rodger did.

In trying to come up with arguments why this should not be done he sights that this will impact, in a negative way, GM’s efficiency and creativity. If this company had shown either then they would not be in bankruptcy.

Now the right wing, through Rodger, is bemoaning the loss of wages and benefits. Yet how many times have they screamed about over paid workers who did not deserve the benefits. How many times did they scream about how all this was holding GM down. Yet now evidently they are ready to scream that the workers deserved every penny that just weeks ago the right wanted taken away.

When a company goes into bankruptcy the creditors are offered a portion of what they are owed, if the company had enough to pay everything they would not be in bankruptcy. This applies to whether they go into it themselves or the government takes them into bankruptcy.

A side note here. Bud… what did BHO do to corporate bankruptcy? The government/Chrysler tried to renegotiate a contract with the creditors. That is their right. The creditors turned them down, which was their right. At that point the bankruptcy laws go into effect.

Because Rodger went off the deep end it hurts all of his argument.

Bob,
The bond holders got the royal screw. There is now way that the fed didn’t put pressure on, with federal dollars, to push this through. The fact that unsecured debt holders got paid before secured debt holders is offensive. When Obama said this was done in accordance with precident, he was lying. There is no precident for this. Unless we count Chysler, which hardly sets a precidence. Just my opinion.

Budb…

Are you talking about unsecured bond holders getting paid for GM or Chrysler?

GM just went into bankruptcy this morning so any action taken prior to that is not the bankruptcy law. But you specifically mention the bankruptcy law in your posting. If you are talking about GM, is it not true that bankruptcy law was not in effect for GM until this morning? Once again if you are talking about bankruptcy law and GM, when did the corporate bankruptcy law go into effect? As far as I know until the laws are in effect a company is free to pay any bill they wish has long has they are not violating any contract.

Bob,
Chyrsler! I and think you know what I was referring to. If you are happy with the government stomping all over capitolism and the private market, Obama dictating policy with his Czars, and now running two of the three major US car companies, fine. I am not. Again, my opinion. I hope Ford continues to do the right thing. They should come out well. I only hope that they can fairly compete.

Budb….

Believe it or not I was not sure which one you were talking about. Most of the talk is about GM. Then you said ”the bond holders go the royal screw. Unless you count Chrysler”. So I was unsure if you talked about Chrysler or if you were using Chrysler as an example to support your point about GM.

I also hope the Ford does well. As for Chrysler, when they come out of bankruptcy will they not be owned by Fiat? So will not Fiat be calling the shots? Is not Chrysler due to be out of bankruptcy any day?

Also is the short term debt not the unsecured debt while secured debt is long term? Also is not most unsecured debt the suppliers? So short of liquidation would not the short term debt be paid prior to the secured debt? If they were going to liquidate then the secured debt would have priority, but otherwise they would need to pay their suppliers in order to get their next shipment of supplies.

The long term debt for both companies they tried to renegotiate the terms. The secured debt holders said no, once again their right, and the company went into bankruptcy. The court then listened to the majority of the debt holders.

So let me see, the government can’t do much of anything right except print money and now they are telling GM how to run their company. I thought this was in the comic section. I wish the libs would please point out what part of government they run so well. That means efficient too.

I wonder now just how many of the union sheeple who voted for Obama are thinking twice about it now. This would be hilarious if it wasnt so serious. Our politicians have put so many private sector jobs to extinction and now the government is hiring. Hmmmmmm, sounds like socialism to me!

Dave who is not super

If you checked, the GM was not doing much correctly. So why are we to expect that they would have done any better? Rodger talked about GM would bot be able to be efficient or creative yet if they had been then they probably would not have turned to the government for help.

As I stated earlier the right wing really seems to be worried about the pay and benefits of the union workers. After so many months of blaming all of GM’s problems on the workers.