Freedom of BLEEP

Now the Obama administration is allegedly issuing threats to anyone that stands in their way. Hedge fund managers are challenging the administration’s bankruptcy plan for Chrysler and negotiations have been somewhat hostile. A leading bankruptcy attorney said his client “was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight.”

Is this any surprise? Obama did the same thing during his campaign. Remember the “truth squads” of policemen and prosecutors?

And despite the White House denial that such threats were made, they have already begun attempts to soil the reputation of the hedge fund managers. The Obama administration and other Democrats have been calling them vultures and greedy speculators. Obama even blamed them for Chrysler’s bankruptcy!

Those of us that live on earth know that those hedge fund managers lent Chrysler money when no else would. They took a risk and the money grubbing union workers got to keep their jobs for a while longer. As it turns out, you can’t have $3,000 of legacy union prices on every car and expect to be profitable. Poor management and unreasonable unions are responsible for the job loss. But Obama says the investors are to blame.

So what’s the big deal about Obama’s Chrysler bankruptcy plan? In the proceedings, the Obama administration has decided that the union will be paid off prior to those who held secured investments in the company. This means the UAW gets more than what their shares are worth and the investors get less. This preferential treatment has resulted in the UAW getting 55% of the company, while secured lenders received only 29 cents on the dollar for debt they hold.

But if SECURED lenders are not paid first - as standard legal practice usually ensures, then who in their right mind would ever invest in American companies again? And just think where these companies would be today without investors…

Instead of developing a plan to save their company, the brainiacs at GM spent their last resources on a huge ad campaign to increase support for their initial bailout. And they are already asking for more money!

If you checked your Gmail or AOL account prior to the first bailout, you might have see ads that looks like this:

In the end, their efforts only served as another reminder that this company is a sinking ship, and the first 17 billion they received only delayed the inevitable. Now they want a second bailout for twice that amount - another $39 billion!

How is GM losing so much money? Well for one thing, their workers currently make about 44 percent more than Toyota workers in the United States. The average worker wages at GM amount to $69 per hour, while American-based Toyota facilities average only $48 per hour. Toyota doesn’t allow unionized labor.

While bailout bargaining, the United Auto Workers have repeatedly said they would be willing to renegotiate their current contracts. But truth be told, all concessions the unions have made are trivial. They’ve only agreed to reduce medical benefits for retired workers by less than 10 percent, and temporarily suspend pay to laid off workers (who previously got 95% of their pay indefinitely). This policy was muscled in by the union and basically made it impossible for GM to cut their payroll. Now the company finally won’t have to pay for workers that aren’t working… Yeah, those union leaders are really bending over backwards.

Fearing that they will lose their power, the unions have also propagated a myth that filing for bankruptcy won’t help GM. In reality, chapter 11 allows companies to restructure their contracts and internal organization. GM would no longer be obligated to provide extravagant benefits to their overpaid employees, and they would not have to fulfill supplier contracts they can’t afford to meet. Just look at United Airlines - they emerged to be an even stronger company after filing for bankruptcy.

Bankruptcy would probably help GM even more than the measly $17 billion band-aid, especially since they lost $39 billion in a single quarter last year.

Still, many are worried about what could happen if GM goes completely out of business. People seem to love bad news, and so the media has been reporting that a total of 2.5 million jobs will be lost if GM disappears. These projections are greatly exaggerated, however. First of all, the derivations assume that all of The Big Three go out of business (not just GM), which is unlikely since Ford has enough cash to last a year and a half.

Additionally, several innovative American car companies have been able to rise in the wake of The Big Three Failures. Carbon Motors, for instance, will have their E7 on production lines this year. This vehicle is essentially a ready-made police car that’s loaded with features and offered at a price that beats the competition. For years, state governments have been purchasing Big Three models only to transform them into police cars and emergency vehicles. So why didn’t GM, Ford, or Chrysler come up with this idea?

In her conquest to nationalize every corporation in America, Nazi Pelosi is now pushing a massive bailout for General Motors.

Here’s a news flash: GM stock has been dropping for more than 10 years!

This company is not a victim of an economic crisis; GM is a failing enterprise that has proven it can’t compete with the market. Okay, so they had a huge loss this quarter. It’s not the first time. What about the $21 billion loss in first quarter 1992? What about the $10 billion loss in 2005? What about the $4.8 billion loss in forth quarter 2006? What about the $39 billion loss in the third quarter last year? Did the government consider buying them out then?

Let’s consider why GM consistently performs poorly in the market. A huge contributing factor is the outrageous healthcare and benefits package they offer to employees, which hikes up the price of their vehicles. GM is a company that spends more than $17 million on erectile-dysfunction drugs such as Viagra and Cialis every year. This is just a small part of their $5.8 billion dollar a year luxury healthcare plan. There are plenty of other reasons why GM is nose diving, but I’ll let you look into that on your own. This company doesn’t need a bailout… They need to get their act together!

But why is the government even considering this bailout when labor unions contracts have not been revised? There is no reason that American tax dollars should pay for Viagra. It’s pretty obvious that the union organizers just want to screw us.

“GM has many hard workers.”