President Obama To Take 69 Percent Ownership Of GM In Bankruptcy
With President Obama’s continued march towards socialism in the United States and continued government intervention in banks and American industry, General Motors looks like it’s going to be the next company to be nationalized by the ever intrusive government. My only question at this point is, what, you didn’t think with all the handouts from Barack Obama, that this wasn’t going to happen?
Whoever thought that a major company such as GM would be facing bankruptcy? In the later part of the 70’s when I was driving classic muscle cars such as the 69 Camaro and the 69 Firebird, GM was the leading car maker in the world and now its stock price is $1.15 when it was over $93 in April of 2000.
The possible bankruptcy now facing GM is being blamed by the media on GM bondholders being unwilling to take a “deal” offer up by the Obama administration giving them approximately 4 cents per dollar they are owed which they soundly rejected. What stories such as this one about the GM bankruptcy fail to mention is that the President is violating bankruptcy law by offering bondholders (read that, “financiers of the company”) such a deal. Granted, everyone loses is a bankruptcy, but there is law that must be followed mandating how a deal of this magnitude is to be handled.
Bondholders are owed $27.2 billion, or 43% of GM’s debt because they financed the company. In other words the money they paid to buy GM bonds allowed the company to run, pensions and salaries to be paid, parts to be purchased and other business activities to be paid for. The Obama administration was then only offering these bondholders a measly 10% of the mostly worthless company stock. Such a deal. The most bizarre thing about the deal being brokered by Obama’s henchmen is that the government may now take as much as 69% ownership in the company when they are only owed 27% of the outstanding debt.
How much worse will it get before Americans start to wake up and figure out what’s going on? Maybe it’s time to buy some gold bullion, bury it in the back yard so the feds can’t find it and stock up the bunker.
Comments
One Comment on President Obama To Take 69 Percent Ownership Of GM In Bankruptcy
-
Update - Obama To Take 72.5 Percent Ownership Of GM | Gold Coin & Economic News on
Sat, 30th May 2009 8:41 am
[...] an update to the last blog post about government ownership of GM, President Obama is to take a larger slice of what was once the largest employer in the world [...]
Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!