UAW Wins Big

[ncboman]

The United Auto Workers union would appear to be the big winner in the Chrysler bankruptcy saga, having exercised its considerable political muscle to win a 55 percent stake in the country's third-largest automaker.


web page (http://www.witn.com/home/headlines/44255917.html)

:rolleyes:

ncboman

[venado]

The following is extracted from the latest article, Back to the Future Recession" by John Mauldin whose free newsletter can be received by signing up at http://www.johnmauldin.com/outside_the_box.html (http://www.johnmauldin.com/outside_the_box.html)

This president is taking actions that are completely beyond anything ever done in this country, he is paying off his special interests and buying future votes with your children's money.

BTW, those that have read the article ncboman posted, be aware that the UAW back up plan is that the feds will cover them even if this Chrysler ownership scheme fails. Talk about a win-win for the UAW and a lose-lose for the tax payer..!:eek:


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And before I close, let me make a few comments about the Chrysler and GM issues. I tell my kids all the time that actions have consequences. If I hold senior secured debt of a company and the government tells me I have to take less than unsecured junior debtors, I am not going to be happy. I may have been dumb to make the loans in the first place, but I did it under a very specific contract and the rule of law.
If the Obama administration arbitrarily changes those rules to favor a political class (unions), then that is going to have a chilling effect on future lending to all corporations. As an aside, they are spending $12 billion to save 54,000 Chrysler jobs (at $22,000 per job). With 600,000 jobs a month being lost, why are these 54,000 jobs more special than those of the rest of the unemployed, who get a fraction of that amount in unemployment benefits?
Actions have consequences. The lenders who are forcing the Chrysler deal into bankruptcy court are not all "predatory hedge funds." They are mutual funds, pension funds, and other financial firms with small stakeholders as their investors.
Cerberus, the hedge fund that originally bought Chrysler, deserves to lose their money. They made a bad investment. But those who lent money deserve to be treated in accordance with the contracts they signed.
Demonizing investors and businessmen is hardly helpful. They are precisely the people we need to help get this economy moving. Governments don't create true job growth, businesspeople do, and mostly small businesses. I am not certain why small business owners, the job creation engine of the country, should see their taxes raised in order to protect bond holders of automobile companies or banks, or for union jobs to be preserved in companies that are clearly not competitive. But that is just my final thought late at night, before I hit the send button.
OK, one more thought. If Chrysler couldn't figure out how to make efficient cars from their partnership with Daimler-Benz, are they now going to become viable through a partnership with Fiat, which has been on the verge of bankruptcy for the last decade? Really? GM paid $2 billion in penalties to Fiat in 2005 so as to not be forced to buy them. And Fiat gets 20% for no cash?
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[ncboman]

end result will be military, government, and schools driving pos vehicles we pay for.

ncboman

[Altjaeger]

end result will be military, government, and schools driving pos vehicles we pay for.

ncboman

We did that back in the 1980s and it was a fiasco for military tactical vehicles then. Can you spell D-O-D-G-E / C-H-R-Y-S-L-E-R. Garbage then, garbage now.

[Dennis Keith]

Meanwhile the Chrysler Bond Holders and GM Bond Holders are left out in the COLD while the UAW gets a HUGE FINANCIAL WINDFALL for having supported The OBAMANATOR.

The way this is shaking out scares me to my very center. Stock up on food and ammo it could be a very long winter. Not much surprises me about this SOCIALIST BASTARD and that is what is the scarriest part. It has all happened before, if you take a look at the history books you can see how it worked out for the NAZI (National Socialist Party) in Germany.

[ncboman]

guess the UAW is too big to fail ... :mad:

ncboman