Buy Your People's Car with a Loan from the People's Bank!

When you thought it couldn't any worse, President Teleprompter is going to take over GMAC, thus vertically integrating the manufacture, sale, and financing of cars in the United States. It is hard to believe this is actually happening.

In previous posts, "Killing Chrysler," "The Rule of Law is an Absolute Priority," and "Goodbye GM, Hello People's Car," I wrote about the gross aggregation of financial power by President Teleprompter, and his control over a large portion of the U.S. economy. By the way, nationalizing health care is next (socialized medicine), but I digress. Executives & Professionals: Changing Jobs?

The Wall Street Journal reports in the May 21 edition:

"The Treasury Department is poised to inject more than $7 billion into GMAC LLC, the first installment of a new government aid package that could reach $14 billion,... The GM plan being devised by President Barack Obama's auto task force calls for the government to emerge with a majority stake."

This move vertically integrates the production, marketing, sales, and financing of cars in the United States. This is a frightening thought. The government is using a large portion of industrial productive capacity to promote a political agenda, pay back union backers, and hope to modify consumer behavior. Guard against ID Theft with 15 Points of Protection from TrustedID, including our $1,000,000 Warranty. Click Here!

What makes this behavior worse is:

"Many of the loans to GM and Chrysler are likely to be written off, administration officials say. Other programs, such as the government aid to auto suppliers, are essentially a revolving credit line that is meant to be replenished."

In other words, this becomes a state-run, money-losing, union payback, with little hope of returning to private hands. While this may sound hyperbolic, I can't help but coming to the conclusion, based on the evidence.

Good Bye GM, Hello People's Car!

**Be sure to read the follow up articles here and here.**

"Let me be clear. The United States government has no interest in running GM. We have no intention of running GM" - President Teleprompter, March 30, 2009.

Nobody ever accused President Teleprompter of truthfulness, or accuracy. However, his fits of reverse psychology are beginning to create a pattern. Whether the issue is nationalizing Chrysler and GM, or so-called "torture photos," the President says the opposite of what he truly means. Executives & Professionals: Changing Jobs?

Reuters reports on 19 May 2009 the following:

"NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday."

Huh, not wanting to run GM, right... So, President Teleprompter has made it clear for months that Americans should drive the cars that he wants us to drive, not what we want. To realize his dream of econobox hybrids for everyone, he has nationalized GM with over $15.4 billion of U.S. taxpayer money! Includes 300 FREE Fax Pages per month

To add insult to injury, Reuters continues:

"The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans."

Great, another union give away, just like Chrysler. Americans, are you starting to see a trend?? The rule of law is being destroyed before our very eyes! President Teleprompter has created the largest patronage system in modern history, all using taxpayer money. Protect your Medical Identity with TrustedID. $1,000,000 Warranty & Great Customer Service

If you are a GM bond holder, you better be screaming louder than you have ever screamed to stop this madness. Bankruptcy laws in this country, especially the principal of absolute priority, make large-scale commercial lending possible. I warned you about this in "Killing Chrysler."

Americans, open your eyes to the trend! Whether banks, health care, or cars, President Teleprompter and his cronies in Congress want there hands on everything. This country can not continue to exist unless this madness stops. Exercise your legal rights in bankruptcy courts, voting booths, and writing your Senators and Representatives. American capitalism is truly on the verge of collapse.

The Rule of Law is an Absolute Priority

**Be sure to read the follow up post, "Good Bye GM, Hello People's Car!"**

I thought all was well with the world when the senior creditors told President Teleprompter to see them in court. What I should have remembered was that Chicago bare-knuckle politics now rules the day.

In my two posts, "Killing Chrysler" and "He Who Has the Gold Makes the Rules, Or So He Thinks," I wrote how bankruptcy law would win the day. Boy, was I wrong.



It appears that President Teleprompter's goons strong-armed the TARP-compromised creditors, then demonized the hedge funds and others. When that didn't work, the threats started rolling in about audits, etc. I fear we are becoming a banana republic, and not the store with expensive khakis. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

In the Wall Street Journal, Todd Zywicki writes an editorial about this mess and how the Contracts Clause of the U.S. Constitution and the principle of Absolute Priority should have prevailed. Instead, the senior creditors were muscled into taking $0.30 on the dollar, while the junior creditor, the UAW (surprise surprise), ended up getting $0.50 on the dollar, which is 55% of the company.

Constitutionally, what President Teleprompter did was violate the contracts between the senior creditors and Chrysler as well as casting bankruptcy law into confusion (from Professor Zywicki's article),

The Contracts Clause of Article V of the Constitution, which prohibited states from interfering with the obligation to pay debts. Hence also the Bankruptcy Clause of Article I, Section 8, which delegated to the federal government the sole authority to enact "uniform laws on the subject of bankruptcies."

Regarding Absolute Priority,

The absolute priority rule is a linchpin of bankruptcy law. By preserving the substantive property and contract rights of creditors, it ensures that bankruptcy is used primarily as a procedural mechanism for the efficient resolution of financial distress... Violating absolute priority undermines this commitment by introducing questions of redistribution into the process. It enables the rights of senior creditors to be plundered in order to benefit the rights of junior creditors.

In other words, the "orderly bankruptcy plan" was really just a ploy to take from the senior creditors and give to the politically-connected UAW. This risk of government interference and confiscation is going to have a negative effect on ALL business in need of credit, especially those who have politically-favored unions. If you are a senior creditor of GM, you should be afraid, very afraid. Guard against ID Theft with 15 Points of Protection from TrustedID, including our $1,000,000 Warranty. Click Here!

America, consider very carefully if this type of government interference and control is the hope and change you voted for. Consider if you want drastic government control over business. Consider if you want to see the world's largest economy collapse under the weight of uncertainty. If you don't, call your representatives and demand the U.S. Constitution be upheld, and the rule of law maintained. If not, expect the worst!

He Who Has the Gold Makes the Rules, Or So He Thinks

As I wrote in my most recent post, "Killing Chrysler," bankruptcy might be the best thing for debt holders. While I generally don't care for bankruptcy, it does happen, and the rights of both parties should be respected by law. However, with President Teleprompter and his union goons in office, what should be and are vary greatly.

The Wall Street Journal reports indirectly, in a piece titled, "Chrysler Pushed Into Fiat's Arms" (May 1, 2009), that TARP-backed banks were pressured to encourage other debt holders to accept the government's deal. People who switched to Allstate saved an average of $396 per year. Quote Now!

What becomes clear, as the story reports:

"The administration had repeatedly said it has no plans to run Chrysler or dictate its business plans. ... The pact allows the government and UAW to reorganize the company's top management."

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Interesting, President Teleprompter wants to reward the UAW goons with control over the third largest automaker, and then tell them what cars to make. Sounds crazy? Also from the article:

"Moreover, the government said it would use the agreement with Fiat and Chrysler to encourage fuel-efficient cars."

Didn't it seem strange to anybody that the President of the United States was announcing the bankruptcy of a publicly traded company? Have you wondered why the federal government is getting its nose and your money into these businesses and not just letting them fail naturally, under existing bankruptcy law?

Clearly, this is about political power, and the socializing of the U.S economy. Consider how President Teleprompter speaks about the debt holders seeking enforcement of their contractual rights and relief from the courts:

They "decided to hold out for the prospect of an unjustified, taxpayer-funded bailout," Mr. Obama charged. Were that not enough demonization, Cogressman for Life, Rep. Dingell (D. MI) calls the debt holders, "...'rogue hedge fund' and 'vultures' and said in a statement that they 'will now be dealt with accordingly in court.'

Wow, name calling, threats of court? This is just business, right? Not really, as this is really just a push to control as much industry as possible. Guess what GM, you're next!

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In less than 100 days, the federal government now owns 85% of one of the world's top insurance companies (AIG), and has its claws in the top banks via TARP. GM is next, and after that, health care. If this isn't stirring just a bit of worry in your mind, it better!!

My sincerest hope is that when the debt holders get to court, they plead their case, and the judge pays the secured debt holders their due. Further, I hope the judge pays each aggrieved party all they are entitled to under the law, and leaves President Teleprompter's dreams of industrial domination in the dirt.

Killing Chrysler

Make sure to read the follow up article, "He Who Has the Gold Makes the Rules, or So He Thinks."

While it is clear to everyone that Chrysler, owned by Cerberus Capital Management and Daimler is heading head long into financial ruin, its future isn't as clear.

In an article in the Wall Street Journal (April 29, 2009) titled "Key Lenders Agree to Chrysler Debt Swap," if the proposed debt swap goes through, the UAW will end up owning 55% of Chrysler. This assumes that bank-debt holders, due $6.9 billion will take $2 billion in cash.

If the deal goes through, Fiat will then "...finalize an alliance that would meet U.S. requirements to release $6 billion in new bailout loans." Oh, and this all has to be done by 30 April or Chrysler goes into bankruptcy. Shop DriveTime First! Bad credit, no credit, no problem. Apply on-line.


On the surface, this looks like a bad deal for bank-debt holders. Why should they just take $.27 on the dollar? Why not fight it out in bankruptcy court, as they and secured bond holders are the first to be paid? Also, the large lenders who have agreed thus far, J.P. Morgan Chase and Citigroup, just need the cash, and fast.

Perhaps the bond and debt holders recognize that company majority-owned by a union is a disaster waiting to happen, and they just want to cut their losses. People who switched to Allstate saved an average of $396 per year. Quote Now!

Further, with interference from President Teleprompter and his "czar", Ron Bloom, who knows what Chrysler will look like?

Personally, I think Chrysler is on the verge of becoming another British Leyland. There is one benefit though, watching the UAW strike against itself. The irony would just be too much. Free Shipping on orders over $100

Another reason bank-debt and bond holders should take this to bankruptcy court is that citizens of the U.S., through its elected (poorly) representatives, are going to provide additional billions to Chrysler. You think union corruption at the local level is bad, give them $6 billion of your hard earned dollars and see what happens!

Although I am not in a position to know all of the risk analysis of the various bank-debt holders, it does seem to be quite a quandary. Do you accept $.27 on the dollar now, in cash, or do you risk it, hoping that you will get your monthly or quarterly bond payments?

Finally, what will a union, majority-owned company mean for the rest of the U.S. auto industry? Its end? Or will it mean, at least under President Teleprompter, an endless supply of tax payer money to the UAW. Hmmm, what do you think?? GM, you know you are next!

Robot Attacks Man in Sweden

I couldn't resist not sharing this story, its too funny on so many levels.

This is directly from "The Local," out of Sweden. All credit to the author.

Robot attacked Swedish factory worker

Published: 28 Apr 09 10:12 CET

A Swedish company has been fined 25,000 kronor ($3,000) after a malfunctioning robot attacked and almost killed one of its workers at a factory north of Stockholm.

The incident took place in June 2007 at a factory in Bålsta, north of Stockholm, when the industrial worker was trying to carry out maintenance on a defective machine generally used to lift heavy rocks. Thinking he had cut off the power supply, the man approached the robot with no sense of trepidation.

But the robot suddenly came to life and grabbed a tight hold of the victim's head. The man succeeded in defending himself but not before suffering serious injuries.

"The man was very lucky. He broke four ribs and came close to losing his life," said Leif Johansson.

Prosecutor Johansson chastised the company for its inadequate safety procedures but he also placed part of the blame on the injured worker.

What can I say? The story says it all. However, where was Al Gore during the event in question?? He was in Norway getting the Nobel Prize in 2007, so he had the opportunity, but what would have been the motive....? Perhaps he misunderstood maintenance for horseplay and just didn't like being touched? I don't know...

The Value of Human Life

As reported in many news outlets, David Kellermann, the acting CFO of Freddie Mac was found dead in his home on 22 April 2009. Initial reports indicate suicide.

Although I have been a serious critic of Fannie Mae, Freddie Mac, and the congressional enablers like Barney Frank, Kellermann's death highlights a point often missed in the study of economics, the value of human life.

When discussing human life and its value, I am not speak in terms of actuarial tables or life insurance, but rather the unmeasurable value of each human being.

Each person is a unique a being, unrepeatable and significant. They change the world, often in ways only felt by their loved ones and those closest to them. However, the spotlight shines on a few, and often that light is blinding and unbearable.

As the world continues to deal with the financial crisis of 2008-2009, it is easy to understand the significant stress many are under, as the consequences are great. However, no consequence, no matter how significant in appearance or fact is greater than the loss of a parent, spouse or child.

As each of us views the difficulty we are under, never believe that your life or the life of another is no longer worth living. While the stress appears crushing, it can be managed. Help can be had and the choice to live should be made.

While I didn't know David Kellermann, or his family, I remember them in my thoughts and prayers, and ask you to do the same. If you know someone who is suffering, offer them any help you can. Take all signs or warnings of suicide seriously and get help! This, like all crisis can be weathered. It won't be easy, but it can be done. Life is worth living and protecting!

President Pwnd by Pesky Pirates

Since the founding of the Republic, the United States has been fighting pirates. The U.S. Navy was founded in 1794, just a few short years from the successful conclusion of the American revolution. As such, the U.S. was suffering from an enormous debt load and didn't have a fighting navy to speak of.

From 1784 until 1804, the U.S. Congress paid the Barbary pirates to not attack ships and take hostages. While not an abysmal failure, the tribute only encouraged the Pasha (Basha) of Tripoli to demand more money. In 1804, under the leadership of President Thomas Jefferson, the U.S. refused to pay tribute any longer and began a military campaign on both land and sea. The campaign was successful and attacks against U.S. ships stopped.

Fast forward to 08 April 2009. The Maersk-Alabama was hijacked by Somali pirates. Ultimately the mostly-American crew repelled the boarders, however, the Captain, Richard Phillips was taken hostage. In what could have been a foreign policy coup for President Teleprompter, turned into a failure. Emergency Radios

While President Teleprompter could have ordered the near immediate retaking of Captain Phillips, he didn't. He dithered until he had signed two different orders to allow the U.S. Navy to protect and defend her citizens. President Teleprompter also failed to retaliate in a manner to further dissuade the pirates from ever attacking U.S. citizens. He could have ordered the USS Bainbridge to attack the land positions of the pirates. He could have ordered an immediate blockade of the port of Mogadishu. He could have ordered the immediate boarding of all non-commercial vessels and seizure of all weapons. He didn't. He is bringing the lone pirate back for trial.

Why is this a failure? Because of instead of taking immediate and forceful action, he sat back and watched. Instead of ordering the military to act without haste, the situation was prolonged at the risk of the life of Captain Phillips. Instead of clearly demonstrating overwhelming force and determination, President Teleprompter has now encouraged the pirates to act more vigorously against U.S. interests. Protect your Medical Identity with TrustedID. $1,000,000 Warranty & Great Customer Service


Joe Biden in his stopped clock moment, said that President Teleprompter would be tested within 6 months of his inauguration. He has, first by North Korea, which fired its missile brazenly and now by the Somali pirates. In each case, his lack of forceful action has shown him the neophyte, instead of the leader of the most powerful nation in the world. It should come as no surprise that he spent his week in Europe apologizing for America's greatness, and bowing to King Abdullah of Saudi Arabia. President Teleprompter, you got pwnd.

Allow me to express gratitude and praise to the men and women of our Armed Forces, most especially the United States Navy SEALS. You have proven again your courage and warrior spirit. May you continue to strike fear into the hearts of our enemies and be strengthened by the appreciation of the nation. As a former military officer, I salute you!

Fannie and Freddie Bonus Bonanza!

Well, well, well, it looks like the winners at Fannie Mae and Freddie Mac are due $210 million in bonuses. Do you hear the hue and cry from the likes of Barney "I had a sexual relationship with a senior Fannie Mae executive Herb Moses" Frank (D-MA), or Rahm "I was a Freddie Mac Director during the scandal" Emmanuel? I didn't think so.

Despite the utterly stupid comment of Chuck Grassley (R-IA), that AIG bonus takers should commit suicide, at least he is consistent in that he considers these bonuses "an insult." Protect your Medical Identity with TrustedID. $1,000,000 Warranty & Great Customer Service

As I have written previously in my post titled "Bonus Indignation," the chorus line of crooks, Barney Frank and Chris "Sweetheart Mortgage" Dodd (D-CT) were aghast at the $156 million in bonuses to the folks at AIG. How about now? Not a peep.

You may or may not know that Fannie Mae and Freddie Mac have been havens for the cronies of the political left since the time of Bill Clinton. Here are two names: Franklin "$50 million" Raines, and Jamie "$26 million" Gorelick. Of course, Barney Frank was on the committee that was supposed to overseeing the actions of Fannie Mae and Freddie Mac.

While you may have enjoyed this trip down memory lane, the point of this post is to point out the utter hypocrisy that Barney Frank is trying to set the pay of all employees of companies the federal government has bailed out, under the guise of a bill titled "The Pay for Performance Act of 2009" yet he finds no problem with Fannie and Freddie folks getting bonuses. Will ACORN show up with a bus load of people at the Fannie and Freddie houses and hassle them? Don't hold you breath. A good credit score can save money! See your CREDIT SCORE in Seconds - $0

The veneer of concern for taxpayers money is so thin, it is ridiculous. Instead of focusing on bonus, why doesn't Congress quit spending money America doesn't have? Oh, because tax and spend was the hope and change Americans voted for.

American citizen, Mickey Mouse and dead Chicago gold fish, you, yes you, voted for President Teleprompter and the inmates running the asylum formerly known as the US Congress. When mid-term elections come up, consider voting in some responsible adults, and voting out crooks like Barney Frank, Chris Dodd, and Nancy Pelosi. Then maybe, maybe, some fiscal sanity can be restored to this country, financial system, and regulatory environment.

For reference, read Congress Declares Contracts Null and Void, and The Unconstitutional Congress.