Hello everyone. I know that I have not made a post in over a month and I apologize for that. I have been handling a number of groups and special services and has taken up a considerable amount of my free time. So, being this my first post back, I think that the best topic of discussion is GM.
I think that finally, by putting GM into bankruptcy, the situation is going to get worked out. I however do not support 100% of the decisions. Taxpayer money has now been thrown down the toilet by GM declaring bankruptcy. That's why many supported bankruptcy in December before the government gave the struggling automaker any money, however it is what it is.
What I truly disagree with is the situation with the dealers. It seems that like always, it's who you know. Dealers all across the country who are making money and hitting their sales targets are getting shut down, while some who can call in favors are staying open for business. My thought is that dealers should not be shut down. Instead, when GM exits bankruptcy, let the dealers fight it out to see who can stay open with less supply from GM and a declining car market in the United States. But of course in this new command, pseudo-fascist economy, that won't happen.
Moreover, what makes me even more sick is the ownership percentage of the proposed new Government Motors. Unions getting 44% of the new company, while secured debt holders get only 17% is abominable. These investors (read individual investors, mutual funds, hedge funds, pension funds, retirement funds, etc.) are getting less that what they were promised not only by GM, but by contract law in bankruptcy courts. Bondholders are entitled to largest share of capital from and bankrupt company. That's how it works. However, it seems that contract law now means what is in the best interest of the controlling party in Washington law (Republicans and Dems alike). I am sure GW and TJ are rolling over in their graves.
The funniest part is that you hear President Obama speaking about these people who are unwilling to settle for the best interest of the country. However, he does not mention that these investors represent clients as referenced in the previous paragraph: retirees, pension funds, everyday Americans. These people have put their money in the hands of experienced brokers to invest for retirement, and for a long time, GM secured debt has been some of the safest bonds next to Treasuries. So, by these brokers accepting less that what they are entitled to, they are actually not helping America when a Vermont schoolteacher's retirement account loses value because President Obama commanded the investors take less. Plain rediculous.