Well, we’ll soon see if all those who advocate big government, government intervention into every aspect of commercial life and the market and crony capitalism are willing to put their money where their mouth is. The GM IPO to offer stock to the public will be coming out soon. They have already filed the paperwork with the SEC. I wonder if all those Hollywood types will be writing big checks for shares to show their support for Government Motors and the whole concept of Government, Inc. I mean Robert Redford and Spielberg by themselves could probably fund the entire offering. George Soros might be willing to throw in a few hundred million.
The lovers of big government and union power were ecstatic with joy when GM got that huge bailout by the Government. Don’t confuse what Bush did what the current gang did. Bush made a relatively modest loan of a few million. It was the gang that can’t shoot straight that upped the ante by scores of billions and opted for a direct government take over of the company. The massive bailout and Chapter 11 and government ownership was the now administration’s doing.
Let’s see, they violated numerous provisions of the criminal sections of the Federal laws regarding bankruptcy; acted like thugs in strong arming certain out of favor creditors for no other reason than they expected their rights to be upheld in a court of law; they bowed down and gave the keys to the safe to the UAW for money for everything, including those very high-end benefits for health care and pensions. Then they dictated who would be on the board of directors and who would fill the top management positions. They also “urged” that building of the Volt for bolster their green agenda credentials. They have propped that up with the tax credit for it; this was after the cash for clunkers program to bribe folks to buy government cars. They have subsidized car loans by taking over GMAC and then allowing it to take over another company with borrowed money from the government.
Of course they toot the horn that GM made a profit last quarter. Well, blow me over with a feather! With no debt anymore, government tax credits the other competitors having to make do own their own, they made a profit. The real question is how could they have lost money. Of course that profit and future profits at least as far as we can see now are completely dependent on government subsidizes of one fashion or another. Will folks actually buy stock in a company whose business plan depends on government money forever?
Naturally, the liars in the Administration, starting at the top, maintain that they had nothing to do with “running” GM and won’t in the future. Well, in the prospectus that GM is required to file with the SEC the facts are laid out a little differently. They have to be forthcoming there are the guys at the top could be sued along with the lawyers and accountants. So they have pretty honestly laid out just how much the government is in charge of matters.
The Prospectus states that the Treasury does have the power to control top management and require changes. Treasury has the right to be involved in the operational decisions of the company including the selection of vehicles it will produce. GM warns that it might have serious problems negotiating with the UAW soon. This in spite of the wails or anguish from the UAW and the white house about all the sacrifices it has made to save GM. No one should be surprised by any of this but it is getting virtually no coverage in the media. Treasury runs the darn company. I can’t imagine a worse business proposition than partnering up with the Feds on anything. It is always their way or the highway. Their way is blown by the political winds not sound business judgment. It will be fascinating to see who really will buy these shares. The prospects for future profits look very slim. Of course Treasury might advance more money to pay dividends to boost the stock worth for a while so the whole thing will look successful and draw in even more suckers when they make their next offering. Private bankers manipulating stock prices that way would be in a heap of criminal trouble. But Treasure with Geithner in charge probably wouldn’t flinch at running close to the edge on the law. It sure wouldn’t be the first time they did it.
Even after the IPO if it is successful Government, Inc. will still be the majority shareholder and in control of the whole shebang. Good luck with that. I think I will watch from the sidelines on this one.
Columbia University in New York city started out with a different name and location. It is now in the Harlem area. Originally, it was in the southern end of Manhattan. It was called King’s College. Several of our Founding Fathers attended it including A. Hamilton. After the Revolution it was decided that it really shouldn’t be called “King’s College” anymore. Later it made the move north. www.olcranky.wordpress.com