Remember when the talk about the stimulus bail out money was all about “preventing” the auto makers from going into bankruptcy? We were told that by shelling out billions of dollars, maybe trillions, of OUR money . . . would insure that those companies would not have to file bankruptcy. Yet, we are seeing the filings anyway. Of course, we all know that the U. S. Government has no right to hold any kind of stakes in matters that do not fit within the Constitution.
Now, on Monday, June 1st, 2009 – General Motors is expected to file bankruptcy in U. S. Court along with the announcement of closing up to 14 of its plants. But do not fear! GM bondholders have agreed to a new deal that will leave them with 25% of ownership and the U. S. Government will walk away with 72.5% ownership, in a United States Auto Maker. The deal was made when GM asked for, and will receive, ANOTHER $30.1 billion of funds.
Chrysler, is working hard to convince the Government that by selling their assets to Fiat will be “best for everyone.” Chrysler, also is in bankruptcy. So far, the Government is not so sure. I would imagine the Government would think it’s best to sell to the Government!
So, here we are sitting back and watching this Administration taking over whatever they can. It doesn’t matter that the U. S. Constitution says it’s wrong . . . they are doing it anyway. Of course, all for the good of the “people.” Our Government now holds high stakes in the auto industry, the home mortgage industry and they are trying hard for the health insurance industry.
Bringing back the railroad system, as I’ve mentioned in prior posts, will bring about a loss in the trucking industry . . . even though 3800 trucking companies went out of business in 2008. I wonder what they have planned for trucking companies? What further “disaster” may be looming in the future that will give this Administration the maneuver they need to “buy out” trucking companies? Hey, we may all be drivers for the U. S. Government someday!
Sure, I’m being facetious, but is there anything you can say that would assure me otherwise? Only time will tell . . . but the way things are going right now, I would be willing to bet the possibilities are closer than we think. This is just the beginning . . . now, auto parts makers Visteon and Metaldyne filed for Chapter 11 protection for their U.S. operations.
“Power to the People” has become “Power to the Government.”
At least there is Ford . . . the one auto maker that REFUSED to take ANY of the stimulus package bail out. Now, that’s American!
© 2009, Allen Smith. All rights reserved.