with Obama, the gut hooked MSM will never asked tough questions.

Everyone should ignore what a politician says(as its usually sleight of hand) and focus on what ISN’T said.

Nardelli is departing and said this wasn’t his first choice option. Did he have a choice?

I’m referring to the relationship developing between the government, large industry and the labor union - including giving the union trust funds large or controlling equity interests. For instance, with GM and to some extern Chrysler, we’ll have the unions negotiating with themselves over worker compensation packages - and won’t the taxpayers be on the hook for pension deficiencies.

Not only is this the start of an unprecedented economic alliance among government, busines, and labor - but it would appear to have enormous political implications as they will have mutual interest in preserving the current administration-Democratic party in power so as to keep their alliance in place.

There is also a huge door for financial shenanigans - with the government shoveling in tax dollars to these companies/unions (or their leaders) - and in return these companies can give lots of dollars in political contributions.

And finally, especially with Treasury putting poltical pressure on banks, will this expand until government has a stranglehold on all banks and iinsurance companies and can control their lending activities. Which would become a springboard for gaining control over other companies, such as oil and energy.

The reason for my question of fascism, then, is that we have the government controlling industry behind the scenes while preserving a facade of private ownership and establishing sweetheart deals with favored executive and investment groups.

In particular, the replacement of adversarial relationships between government, industry, and labor that provides some checks and balances - replacing them with a secretive collaborative network of interlocking financial and political power.

And if this is not incipient fascism, what is developing t hen? It’s not classic socalism/communism and it’s certainly antithetical to capitalism.

can the creditors ask for a Chapter 7 liquidation? this would put an end to this Obama/UAW take over.

To point me to the section of the Constitution that allows this.

If I were an investor, I would sue. Since allegedly the corporation will still exist, can you say big target.

Bush should have let these companies fold while he was still President.

Despite how big a failure this new Chrysler will be in the private market, the Democrats will find ways to give Chrysler lavish government contracts so the UAW can keep the checks coming.

Eventually, there WILL be backlash if Obama and the Democrats keeps doing this. My guess is Chrysler will be back in 2 years asking for another $10 billion. When the Democrats no longer control every lever of government, these companies are going to fall HARD.

Again, conservatives should boycott buying from the Big 3 altogether. You can find high-quality, American made, non-UAW cars from Toyota, Honda, Nissan, etc. They also won’t break down as much, and have much higher resale value.

Obama lashes out: (from bloomberg)
A dissident group of 20 investment firms and other lenders turned down administration loan-reduction proposals, leading to a breakdown in talks last night. The firms include OppenheimerFunds Inc., Perella Weinberg Capital Management LP and Stairway Capital Advisors,
Obama said while many of the stakeholders worked constructively, others didn’t. “A group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout,” he said.

So the President calls out companies by name to incite the public against them if they don’t agree with his socialist scam. Someone needs to put this fool back in his box before he destroys our economy.

First hand and let me say this; Francis is right about questions that should be asked and answers that should be sought.

There is a lot more to this story and making it come out in the light might make a lot of people look very, very bad.

Obama, flanked by his cast of thousands, talked this morning about everyone related to Chrysler—-except for the customer. If he had ever worked in the private sector, he’d understand that the businesses that win today are customer-driven. His plan is clearly to have state-sponsored car companies, that produce the preferred cars of the state: “clean, green cars.” Geekmobiles represent a very small segment of the market, not enough for a company to survive on.

Secondly, he can try to protect his union friends all he wants. But a Hyundai plant in Tennessee with labor costs of $45/hour will beat a UAW plant in Michigan any day of the week. Perhaps their plan is to subsidize this new company, because there is no way it can be profitable at low margins, selling a product that people don’t want.

I agree with you that his lashing out at the investor class in his remarks was pretty despicable. He reminded me of Nixon (apologies to our 37th President) as he used the occasion to demonize one segment of the country, while praising others. I almost expected him to tell us that we wouldn’t have the old Chrysler to kick around anymore…. suffice it to say that true leaders try to bring people together, while demagogues attempt to divide and conquer.

They never made a horrendous piece of crap like the Chevy Nova, the AMC Gremlin, or the Ford Pinto.

In fact all mopar engines were well designed, just not very user friendly ( you had to remove the water pump in some engines just to change some of the spark plugs).

I always liked Chrysler products in general, but they never had the kind of brand loyalty of GM or Ford. And they were always overpriced.

Chrysler made most of our M1 Abrams tanks.

“Fiat is giving nothing but access to small-car technology.” And crappy small-car technology at that. This is supposed to help Chrysler?

Normally under a chapter 11, wouldn’t a judge make decisions on the restructuring? If Obama is calling all the shots, isn’t this a violation of the separation of powers? I don’t remember any provisions in the bailout law for this situation.

Bottom line for Chrysler is that they would be better off if they had filed for chapter 11 in the first place instead of taking federal money.

I live in Michigan, today is not a good day….. News is flowing fast, I can get you updated when I have all the facts….. small snag occurred today that was not expected (by the president apparently and his task force that knows everything) Plants closed immediately today as the suppliers will stop shipping to Chrysler in fear they will not get paid. The hopemeister said today that business would carry on as usual. Just another reason he does not have a clue. The Bankruptcy organized through the government is being filed in NY, most of the creditors are in MI / another snag as the laws are different in that state..

Or any foreign vehicle made in the USA. The only entity the president cares about is the UAW, he needs them for his re election. The estimate here is that it would take at least three years for the plants to be ready to take FIAT vehicles. Then there are the United State regulations the government has strangled the auto companies with.

There is a rumor….. again rumor that FORD may pick up saturn

the trains ran on time. Under Obama, the cars just keep getting built.

Never mind that no one is buying them. Did anyone ride the trains?

If the unions members thought the private management was bad, they ain’t seen nothing yet. The pigs have moved into the farmhouse and there will be greater equality.

Mark my words: There will be all sorts of pay cuts, lay-offs and other perks getting slashed that the union members never thought would happen now that profitability * is the only thing keeping the union bosses fat. When it was someone else’s turnip they didn’t mind trying to squeeze a few more drops of blood.

* Of course, that now means profitability by government standards which means anything up to or less than a double-digit loss is “profitable.”

PS: Expect the “jobs saved” rhetoric to now include some multiple of Chrysler jobs.

with Chrysler and Government Motors having an employee pricing sale, buy a car and get a free pension and health care funded by the taxpayers.

I’m only half kidding.

http://newsletters.cii.in/newsletters/russian_newsletter/july07/images/industry_automobile.pdf

And Obama is a hypocrite, criticizing Mopar for not making enough small cars… his last car in Chicago was a Chrysler 300M… with Hemi power, please.

BTW, I spend a lot of time in Europe, and believe it or not, FIAT makes a fantastic car these days. IMO they might put some decent product in Chrysler showrooms. The CEO is an Italian-Canadian, Marchionne, who’s a genius… completely turned FIAT, Alfa, and Lancia around., Nice cars. And their small car tech is impressive, they got a lot of cars that have good power and get 40-50mpg..,. sounds like what Obama is looking for.

Other than those positives, I agree with all you say here, Francis- great piece. The deal isn’t really very good for we the taxpayer, but in this enviroment nobody else is going to pay to take a crack at it.

.[Photo]http://reaganiterepublicanresistance.blogspot.com

Francis, aka Blackhedd,

Can you provide insight on this, please? Was Chrylser’s declaration of bankruptcy expected this soon?

At last night’s prime time presser, Obama said: “I am actually very hopeful, more hopeful than I was 30 days ago, that we can see a resolution that maintains a viable Chrysler auto company out there.”

Did the Obama know this was coming this morning? If not, should he and his advisors have seen it coming (this morning). [Admittedly, the bankruptcy itself is not a surprise.]

I kid.

to own a new Chrobamiat. You’ll marvel at the following specifications:

.75 litre 1 & 1/2 cylinder cylinder engine desighned to return 44 mpg of burnt canola oil.
A zippy 0-60 in 4 minutes, if it could go 60.
Beatufil Cjartreuse Interio appointments selected by Barney Frank and Nancy Pelosi.
Braking Distance determined by what shoes you are wearing.
A sticker price of $ 4,500. (after $97,000 government subsidy).
All backed by a 48 year warranty with a meager 4,700 dollar deductible per occurrance.
But of course, you will have to apply 13 yeasr in advance and submit the proper evidence of your voting habits to qualify.
But then of course, it will be proudly driven by the comrades of the UAW leadership.

Boycott Chrysler and GM as long as The US and UAW are the largest shareholders. Let’’s drive a stake through the heart of Fascism. Do not drive a zerOmobile.

“Not One Red Dime for the NRSC or NRCC till they stop trying to elect liberals”

Join the RedState Strike Force

I just love how the Obamunists keep saying “they don’t want the Government to own or control the auto companies.” So true, why would they bother when they can hand them over to the Unions to own/operate - it’s just like having a Democrat Administration dictating/controlling them! Socialist control without the actual Government meddling!

Union concessions… will be overturned by extortion the time Auto up-turn… Happens every Auto business cycle….

Buy a car and just vote at same time, don’t bother to register!

it could be called Swine Flew,,,,

It seems like Obama made all sorts of arrangements just before he announces the bankruptcy. How is that any different than someone like Madoff or Stanford getting ready to go down and paying off whatever money he’s got to selected friends and family members before going down?

Maybe it’s more limited under Chapter 11 than under Chapter 7, but could a judge with balls throw out these prearranged deals? If I was a bondholder getting completely shafted out of my bond money over and above my tax money while the UAW and Cerberus were protected, I’d be raising holy hell in court.

Heard today on the radio that the reason this is in a New York court is to reduce any influence of the UAW. The finance people who have been pushing against some aspects of this deal were worried that no Michigan judge could be impartial enough about the UAW. Since the finance people are based in NY, they pushed for a NY court. Take this information for what it is worth, but it does sound somewhat hopeful in light of all the other bad things about this situation.