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Posts Tagged ‘General Motors Bankruptcy’

You have to hand it to Obama to never miss an opportunity to get in front of a teleprompter.  General Motors in filing bankruptcy today will officially become Government Motors.  President Obama will hold an 11:30 a.m. event to discuss it even though last night the White House released this fact sheet fact sheet (.doc file) also available at http://www.autonews.com/assets/DOC/CA61689531.DOC.  Thank God it is not during Prime Time TV.

His blathering and this document lay out the Obama Administrations details of its plan for General Motors to help it emerge from restructuring quickly.  The automaker will get $30.1 billion of additional taxpayer money to restructure a smaller-company- a New GM and in return the Treasury Department has the right to appoint the initial directors.  Another $9.5 billion will come from Canada.

“In addition, the U.S. Treasury’s ability to prevent any change in control of us could also have an adverse effect on the market price of our common stock. The U.S. Treasury may also, subject to applicable securities laws, transfer all or any of its portion of our common stock to another person or entity and, in the event of such a transfer, that person or entity could become the controlling stockholder.” http://www.thetruthaboutcars.com/editorial-between-the-lines-gm-does-not-welcome-its-new-governmental-overlords/ The Treasury could conceivably transfer the stock to China to pay off debts!   

Dealscape lists the GM Bankruptcy petition filing June 1, 2009 at 7:57 am in its entirety here http://www.thedeal.com/dealscape/2009/06/gm_files_chapter_11.php

The nature of the claims and claim debts amounts are staggering.

1.  Wilmington Trust $22.7 Billion

2.  UAW $20.5 Billion

3.  Deutche Bank  $4.4  Billion 

4.  IUE $2.6 Billion

GM’s Total Assets on a consolidated basis $82.2 Billion

GM’s Total Debt on a consolidated basis $172.8 Billion

GM was world’s largest automaker for years.  It has been a technological marvel pushing the limits of technology, and marketing the fact that it’s brands were a mark of status.  Quality suffered over the years giving the Japanese auto giant, Toyota Motor Corp., the perfect opportunity to win the trophy as the world’s largest automaker, but it too has been beaten down by a sagging economy and credit crisis.  On May 8, 2009, Toyota reported a record annual net loss of $4.4 billion. An ad for the newest Prius feature the American Icon Superman standing next to the car in front of a photo of the globe.  http://toyota.jp/  Even superman could not have saved GM. 

In total disgust, Michael Moore had this to say; ” So here we are at the deathbed of General Motors. The company’s body not yet cold, and I find myself filled with — dare I say it — joy. It is not the joy of revenge against a corporation that ruined my hometown and brought misery, divorce, alcoholism, homelessness, physical and mental debilitation, and drug addiction to the people I grew up with.”  http://www.dailykos.com/story/2009/6/1/737485/-Goodbye,-GM  Dare I say, my joy would having never have to hear or read anything you have to say again you ignoramus.  Thousands are loosing their jobs, the government is buying a car company, and Moore has the balls to have joy?  Normally I would hope he gets a lump of coal in his Christmas stocking. Even that would be too good for him, as some coal miner had to dig it up to provide fuel for his country and to help run the factory that Moore is so joyfully ecstatic over. 

GM president and CEO Fritz Henderson said, “From day one, the New GM will be well-positioned to capitalize on the award-winning vehicles we have developed and launched during the past few years, and on our investments in exciting new technologies like the Chevy Volt.”  Henderson will host a press conference right after Obama’s spiel.  Toyota is already laughing! http://www.thetruthaboutcars.com/volt-birth-watch-141-toyota-laughs-at-the-volt-indirectly/ ” There’s no way the expensive, non-“rent-paying” Volt helps GM make money – at least in the short term. So, it’s a good idea to ditch it.” wrote http://www.autobloggreen.com/2009/05/29/wsj-keeping-the-chevy-volt-alive-doesnt-make-sense-for-governm/.

If  GM was a 500 lb gorilla with “misguided marketing, poor product direction, spotty quality control, random product cycles–simply not working.”, after Ch. 11 they will be a 200 lb gorilla with “misguided marketing, poor product direction, spotty quality control, random product cycles–simply not working.”  now led by the Automotive Task force and President Obama!  

Wall Street almost killed Detroit the first time with the credit crunch writes http://www.thebigmoney.com/blogs/shifting-gears/2009/05/31/how-wall-street-almost-killed-detroit.  Can GM, the government and the tax payer kiss and make up?  Hardly, kissing is only foreplay to getting fu#$%d yet again. After 83 years on the New York Stock Exchange, GM has been de-listed. “The parlous state of GM has left us with no choice but to remove it from the Dow,” said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones. ”A bankruptcy filing immediately disqualifies a stock regardless of a company’s history or its role as a cultural icon.”  Tough shit for stockholders, eh? 

Oh, just kiss me you fool, and hurry before the gas tax and the VAT tax take effect.

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 buick

dodgenitro

The Obama administration is steering the wheels of not only General Motors and Chrysler into bankruptcy, but the FDIC- Federal Insurance Corporation in the new world order.

General Motors Corp. president and Chief Executive Officer Fritz Henderson has scheduled a news conference in New York on Monday, when the Detroit automaker is expected to file Chapter 11 bankruptcy.  Having propped up the failing automaker with billions of our tax dollars already, the government will take somewhere around a 70% ownership role. 

Perhaps the automakers should have been allowed to sink or swim in a free market economy months ago, none-the-less they are sinking now and fast.  So much innovation has come from the auto industry from safety, better fuel management, satellite tracking, etc. GM filed more than 300 patents last year alone and there in lies the money honey. 

Patents are the single most important asset class upon which economic recovery and sustainable prosperity now depend, especially in light of  the collapse of traditional asset-based markets says The Automaker Patent Assets Intelligence Report APA-Intel Report 2009, Comparative Quantitative Analysis Automaker Innovation and US Patent Portfolio Quality is here: http://www.ipfrontline.com/downloads/apa-intel-09.pdf

“Beyond the auto industry, the veracity of statistical patent asset measurement applies equally to every other industry core to our economy: computers, semiconductors, biotech, pharmaceuticals, software, medical devices, and oil and gas, to name a few. ”  writes http://www.cafezine.com/depts/article.asp?id=22652&deptid=8 

Andy Gibbs, Chairman and Chief Executive Officer of PatentCafe, said: “The APA-Intel Report on patents is the first of its kind that provides an in-depth comparison of the quality of patent portfolios owned by Chrysler, Ford, and General Motors, against their largest Japanese and European counterparts. High quality patents provide huge revenue opportunities, and low quality patents increase operational risk.”  The report notes that Green Tech” replacing “EnviroTech” as a more contemporary term has the most to gain, backing Obama’s policy that a greener world will cure all that ails us.  Except maybe Swine Flu.

Reinforcing Obama’s environmental policy and getting her to shut up about CIA memos, Nancy Pelosi was in China spewing that we must all take inventory and that a clean environment should be a basic right.  This, as markets are in the shitter, North Korea is launching missiles and testing nukes, and we are at war in Iran and Afghanistan. “The impact of climate change is a tremendous risk to the security and well-being of our countries.” http://www.huffingtonpost.com/2009/05/28/pelosis-new-tactic-tellin_n_208488.html.  If I vomit on the grass instead of the toilet- does that count as recycling?

The Republican National Committee slammed  Barack and Michelle Obama’s date night  an “RNC Research Piece”: “As President Obama prepares to wing into Manhattan’s theater district on Air Force One to take in a Broadway show, GM is preparing to file bankruptcy and families across America continue to struggle to pay their bills. … Have a great Saturday evening – even if you’re not jetting off somewhere at taxpayer expense. … PUTTING ON A SHOW: Obama’s Wing Into The City For An Evening Out While Another Iconic American Company Prepares For Bankruptcy. http://www.politico.com/news/stories/0509/23122.html

Making a habit of dining out, Obama ate at Five Guys on Friday and while waiting for his order, President Obama appears to have learned of the existence of a Defense Department intelligence arm, the National Geo spacial Intelligence Agency- NGA-an agency employee also at the burger restaurant.  Too bad it wasn’t some one from the FDIC who could have told him that that the fund is is at an all time low of just $13 billion as of march 31st  or 0.27% of $4.8 trillion in insured deposits! </span

While depositors have been seeking a safe haven from the stock market, and banks continue to falter, insured deposits have hit all time highs.  The FDIC is all but insolvent. " http://zerohedge.blogspot.com/2009/03/bailoutspotting-or-search-for-great.html writes “At its heart, the FDIC is an insurer of deposits. It does this not so much with actual cash which would pay off depositors if there were a global run on the bank (which is negligible when compared to the total size of roughly $5 trillion in deposits), but by being a symbol of the U.S. guarantee to protect its depositors.” </span

The inclusion of "In God We Trust" on all currency was required by law in 1955.  The Federal Reserve guarantees those dollars for now, but for how long?  Even the big 3 have warranty programs, but again for how long?  The car I drive has a rosary on it to protect our family while we drive and that invisible trust in my gas guzzling SUV and God remains, but faith in Obama to restore the automotive and the banking industry?  

Novus Ordo Seclorum is shown on a ribbon below the pyramid and translated as "a new order of the ages."  President Obama has been very open about his global agenda and as the world debates rescinding the dollar as the global currency, he is steering us away from national sovereignty and capitalism.

Photo taken on May 29, 2009 shows a 1908 Buick Model 10 in the GM Heritage Center in Sterling Heights, Michigan, the United States Xinhua/Gu Xinrong

A Dodge Nitro vehicle is seen in front of the General Motors Corp world headquarters in downtown in Detroit, May 28, 2009. (Xinhua/Reuters Photo)  {A Dodge in front of GM – there’s your new world order alright!}

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