Obama has claimed that he has no interest in running an auto manufacturing company, yet each move made in conjunction with the bankruptcy of the two companies has shown that running auto manufacturing companies is not only taking place but the intended goal that was accomplished through bankruptcy.
The dissolving of GM into the government owned and run company with a government assigned CEO who of course stands by any move made by the Obama administration in running the company shows that total nationalizing of the company is what has taken place. The bankruptcy is only the means to an end.
Obama has stated that his purpose in doing this was to prevent ,”tax payer money,” from being wasted by loans to the auto maker. Yet the money in loans is minimal to the actual out lay of tax payer money that is being used to purchase 60% of GM holdings by the federal government. To date GM has been loaned $15.4 billion dollars , which is now being forgiven in the bankruptcy. The 60% purchase is costing $62 billion dollars.
I have never been an advocate of loaning GM money even when it first took place during the Bush administration. The company should have been allowed to file bankruptcy then which would have entailed a court designed reorganization that would have been handled by the privately owned company and the courts only. Even with the Bush loans the government was not dictating to GM what it could and could not do allowing the company to continue as a private entity borrowing tax payer funds.
With Obama taking control, the bankruptcy was constructed by his task force and not the courts, which is a Constitutional separation of powers violation since all bankruptcy proceedings are the responsibility of the Judaical Branch and NOT the Executive Branch. Additionally through this bankruptcy, the government now owns 60% 0f GM, the Canadian government another 12.5%, the UAW 17.5% and the legal bondholders who once again are shafted as was the case with Chrysler getting a measly 10%.
For Obama to state that he has no interest in running an auto maker is a blatant falsehood since the bankruptcy itself is being run by his administration and the plan to reorganize is being designed by his people and not the board of the former GM company. Additionally with a 60% stake in the company giving Obama the controlling interest of the automaker anything that takes place in the company will be designed and approved by the Obama administration which means they WILL be running the company.
According to the bankruptcy plan GM will emerge form bankruptcy in 90 days a, “better and stronger,” company but still under government ownership as the 60% stake being purchased with $60 billion dollars of tax payer money will still be an outstanding debt. In fact it has been said that it is not expected that the money will ever be repaid which will keep the government 60% stake in place and the position of the major and controlling entity in the company.
So running an auto maker was and is the goal. Thus the birth of Government Motors, owned and operated by the Obama administration. Deciding which dealerships can remain open. What type of vehicles will be produced. Closing plants and /or re-tooling plants at their discretion. Creating a government entity which in the long run will, as with any other government program, will become an abject failure requiring constant infusion of tax payer money making the $60 billion dollars just a down payment for the continuing operation of a nationalized automotive industry leaving Ford to stand alone making the only privately produced American vehicles.
Ken Taylor http://theliberalslies.blogspot.com