Category: Liberals

Is the Obama Administration letting G.M.'s New C.E.O. do it's dirty work for them?

Full Disclosure: My Father is a Retired General Motors Worker and U.A.W. Member.

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It sure as heck looks that way to me here.

The reason I ask this question is because a new report from CNBC that the new C.E.O. of GM is essentially saying that bankruptcy is the only option:

General Motors’s new chief executive told CNBC that filing for Bankruptcy may be the best option for the struggling automaker.

In a taped interview to be aired tonight on NBC Nightly News, Fritz Henderson said that because of greater demands from the Obama administration to restructure, GM is considering the bankruptcy option. The auto giant previously had ruled out such a move, saying it would discourage people from buying GM cars.

Henderson’s comments came after President Obama bluntly rejected turnaround plans by GM and Chrysler and demanded that both companies make fresh concessions in order to get more federal aid.

Henderson, who was GM’s president and chief operating officer, was named the new CEO after the government forced the resignation of CEO Rick Wagoner on Sunday. GM’s board is also being restructured.

Henderson told reporters that the company would still prefer to restructure outside of court, but the level of support Washington is offering would help the company quickly restructure through bankruptcy.

Henderson says GM  needs to work faster and go deeper to get more concessions from bondholders and the United Auto Workers union. President Obama has demanded that GM come up with a better restructuring plan in 60 days in order to qualify for more government aid.

I find it very interesting that President Obama, instead of doing the dirty deed himself, ousted the CEO of G.M. and basically has let the new G.M. head honcho be his fall guy for basically screwing the bond holders and also the unions. This way, Barry comes off clean. It is a strategy that is quite slick, quite risky; but none the less slick.

The Wall Street Journal has more:

Inside a windowless, ornate room Thursday just across from the Oval Office, President Barack Obama and a group of senior economic advisers began the job of remaking the American automobile industry.

The first order of business: Oust General Motors Corp. Chief Executive Rick Wagoner.

It “wasn’t the hardest decision,” said one government official.

Steven Rattner, a former investment banker who is heading the administration’s auto restructuring; chief economic adviser Lawrence Summers; and Treasury Secretary Timothy Geithner were among those gathered around the polished wood table of the Roosevelt Room in the White House’s West Wing. They were there to decide under what conditions the government would continue to prop up once-powerful Detroit car companies GM and Chrysler LLC.

In the post-World War II boom, they were at the pinnacle of a quintessentially American industry. At Thursday’s meeting, once the Obama administration concluded the pair were running out of money, their effective dismantling began.

Beyond seeking Mr. Wagoner’s resignation, the officials also gave failing grades to GM and Chrysler for the restructuring plans they submitted to the government Feb. 17. They also set a deadline — one month for Chrysler, two months for GM — after which the government might force a bankruptcy restructuring of both companies and break up two of America’s business icons.

Many of GM’s problems didn’t start during Mr. Wagoner’s term, and most predate the economic downturn that sent car sales slumping, such as union contracts and the costs of paying for retiree health care. GM made a bad situation worse with huge bets on trucks and SUVs that piled up on dealer lots amid soaring gas prices last year.

While I will be the first to tell you, that General Motors has had its own share of issues. What Barack Obama did to G.M. and by proxy to the Union members and Employees of the company; was just flat out cowardly. Instead of forcing General Motors into bankruptcy himself.  Obama is allowing the new head honcho of the company and his Auto Czar; do it for him. This way Obama does not burn through his political capital as quickly and more or less comes out looking like the hero. Of course, President TelePrompter will say that he inherited this mess, and by rights he did. But to pass off the basic executing of a company and it’s people to someone else, is quite the cowardly move in my book.

Hey Barry, If you ever happen to read this; Grow some freaking Gonads,will ya? I mean, come on. If you going to screw the American worker; why not do it yourself? Instead of letting your damned patsies do it for you. Just a thought.

David Horowitz, A Concern Troll?

Wow, I must admit, I did not see this one coming, at all. 😮

I have been watching an interesting phenomenon on the Right, which is beginning to cause me concern. I am referring to the over-the-top hysteria in response to the first months in office of our new president, which distinctly reminds me of the “Bush Is Hitler” crowd on the Left.

Speaking of this crowd, have you seen any “I am so sorry” postings from that quarter as Obama continues and even escalates the former president’s war policy in Afghanistan and attempts to consolidate his military occupation of Iraq?

Conservatives, please. Let’s not duplicate the manias of the Left as we figure out how to deal with Mr. Obama. He is not exactly the anti-Christ, although a disturbing number of people on the Right are convinced he is.

I have recently received commentaries that claim that “Obama’s speeches are unlike any political speech we have heard in American history” and “never has a politician in this land had such a quasi-religious impact on so many people” and “Obama is a narcissist,” which leads the author to then compare Obama to David Koresh, Charles Manson, Stalin and Saddam Hussein. Excuse me while I blow my nose.

via FrontPage Magazine.

Well, I won’t sit here and lie, I see his point. It’s a valid one too. If the far right would do their legit jobs and point the fallacies in Obama polices, instead of trying to prove that he’s anything from an alien to the Anti-Christ, they’d would be doing something.

Others: Pajamas Media, pw and Little Green Footballs

President Barack Obama asks G.M. CEO Rick Wagoner to resign

Full disclosure: My Father is a Retired G.M. Employee and a member of the United Auto Workers.

I have known about this for a while. I’ve just been waiting for as much info as I could get, before doing a post on it.

Originally Via the Politico:

The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.

On Monday, President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.

General Motors issued a vague statement Sunday night that did not officially confirm Wagoner’s departure.

“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement,” the company said.

The surprise announcement about the classically iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts.

Reaction from the Conservative Blogsophere has been predictable negative. Also I have observed via the local media, that some auto workers are not happy about the President asking a C.E.O. to resign.

I have an opinion on this. It is simply this. I want to wait and see what happens. I do not want to pass judgment upon this until I see what is going to happen. This could be a bad thing and then again, it could be a very good thing. I shall, like many from this God-Forsaken part of the Country are playing the wait and see game.

Reaction to this from the Editorial board of the The Detroit Free Press is not a good one:

The risk was there from the start.

The federal money flowing to Detroit to help struggling automakers was always going to come with strings.

But there’s a fine line between holding General Motors Corp. and Chrysler LLC accountable for a pile of taxpayer cash and inappropriate government efforts to actually run the companies.

President Barack Obama’s Auto Task Force may have crossed that line over the weekend when it reportedly asked for GM Chairman Rick Wagoner’s resignation as part of a plan to get more aid to the struggling automaker.

It’s hard to see how canning the chief executive is far shy of actually running the company. And if that’s the case, if GM’s federal overseers are stepping up their efforts to actually manage GM through its restructuring, this sets an awful precedent, both on general principle and in this particular instance.

The principle at stake says government shouldn’t manage private businesses. GM has a board of directors that, no matter its many mistakes, is accountable for the company’s fate. The government should ensure the board doesn’t squander taxpayer funds, but that doesn’t include selecting the company’s leadership.

It didn’t for banks, mortgage companies or insurance outfits like AIG. Why should GM be treated differently?

Something tells me that there is going to be a huge blow back from this and it might just cost Obama a reelection, should be try and run in 2012.

Additional Coverage:

Blogs:

The Southern Avenger on "AIG Bonuses are a Ruse"

How the controversy over the AIG bonuses imbedded in the stimulus obfuscate the root problem of spending in general.

The Southern Avenger’s Blog

The Southern Avenger @ Taki’s Magazine

The Economist wakes up from the Hope and Change Stupor

Looks like one the major media supporters of President Obama has basically said, “Well, perhaps not!”

But at home Mr Obama has had a difficult start. His performance has been weaker than those who endorsed his candidacy, including this newspaper, had hoped. Many of his strongest supporters—liberal columnists, prominent donors, Democratic Party stalwarts—have started to question him. As for those not so beholden, polls show that independent voters again prefer Republicans to Democrats, a startling reversal of fortune in just a few weeks. Mr Obama’s once-celestial approval ratings are about where George Bush’s were at this stage in his awful presidency. Despite his resounding electoral victory, his solid majorities in both chambers of Congress and the obvious goodwill of the bulk of the electorate, Mr Obama has seemed curiously feeble.

There is a great deal more over that at the article, I do encourage you to click the link and go over and read it. Some on the left would argue that the Economist is a “rich man’s” magazine. As much as it pains me to say this; when you have lost the rich elitist class, you start losing everyone else too. I say it pains me, because I have always had a problem with elitism. It just goes against my grain. I was not born into wealth, I was raised in a middle class family. Do not get me wrong, I do not fault people for being wealthy; because most of the time it is because someone, somewhere, worked their tails off to get that way. But the whole snobbery thing turns me off, in a big way.

Of course, and I say this with a bit of dread; because I know some moronic liberal is going to read this and go run to their fellow liberal blogger buddies and tell them that I am some sort of a racist, which is silly, anyone that knows me well, knows that I am not. ——  This is what happens when a Political Party pushes a man out front of other more qualified persons and elects him. —– all because of his skin color. The painful truth that was very well articulated by another Democratic Party Candidate Geraldine Farrow;  was that the only reason that Obama was where he was, was because he was black. This, of course, caused that race hustling crowd to break into a frenzy. In the end, this might have hurt Hillary’s campaign, but the underlining truth was totally cast aside. That Obama was being given a free ride, a free pass, or just treated differently, because he was black.

That not an observation made out of hate, racism or any of that sort of nonsense, it is one made simply based upon the facts. Anyone that takes anything other than this away from this Blog posting has got a serious problem.

Additional Coverage:

Jennifer Rubin / Commentary: Not Like We Didn’t See this Coming

Mark Steyn / The Corner: Missing the point  —  The Economist is the latest of the smart guys …

Other Blogs: Outside The Beltway, Hot Air, The Atlanticist, Stop The ACLU, Fausta’s Blog, pw, QandO, TIME.com, Pundit & Pundette

About Reid's comments on Roberts

This is kinda odd.

Senate Majority Leader Harry Reid said Friday that John Roberts misled the Senate during his confirmation hearings by pretending to be a moderate — and that the United States is now “stuck” with him as chief justice.

“Roberts didn’t tell us the truth. At least Alito told us who he was,” Reid said, referring to Samuel Alito, the second Supreme Court justice nominated by President George W. Bush. “But we’re stuck with those two young men, and we’ll try to change by having some moderates in the federal courts system as time goes on — I think that will happen.”

Reid’s comments, which came during a wide-ranging discussion hosted by the Christian Science Monitor, reflect Democratic concerns that Roberts presented himself as a neutral arbiter of the law but has wielded a relentlessly conservative agenda. Republicans reject the attacks, saying Roberts has been a fair judge and has been consistent in his opinions.

via Reid: Roberts ‘didn’t tell us the truth’ – Manu Raju – POLITICO.com.

I guess my only question is, why’d Reid believe him in the first place? I mean, the dude is a Conservative. You’d think that even Liberal Reid would know not to take his word for it.

Others: Power Line, Weekly Standard, The Sundries Shack, Fox News, Sweetness & Light and The Corner

(Via Memeorandum)

Olbermann Watch must be reading my mind!

I swear, someone over at Olbermann Watch and possibly those over at HotAir must have been reading my mind last night. Yes, I did see the segment, when it aired and I thought, “Wait a Minute!”

The Video:

Plus, that whole twitter thing, was MSNBC’s all along… D’oh!

Keith, you’re slipping buddy. Gotta work that Magic Monkey ( 😮 ) act a little better….

The Southern Avenger on "What Happened to the War on Terror?"

On the sixth anniversary of the war in Iraq, why are the loudest champions of the War on Terror no longer talking about it?

The Southern Avenger’s Blog

The Southern Avenger @ Taki’s Magazine

President Barack Hussein Obama's March Towards Communism

In all honesty….  it is more like a marathon run towards Communism actually.

Thanks to the stupidity of the Carter and Clinton Administrations and the inaction on the Republican controlled 2003 Congress. We are now becoming a Communist Nation. We have no one to blame, but ourselves.

The Communist owned Washington Post reports:

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury’s role, are still in flux.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

The administration’s proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed’s other responsibilities, particularly its control over monetary policy.

The government also would assume the authority to seize such firms if they totter toward failure.

Besides seizing a company outright, the document states, the Treasury Secretary could use a range of tools to prevent its collapse, such as guaranteeing losses, buying assets or taking a partial ownership stake. Such authority also would allow the government to break contracts, such as the agreements to pay $165 million in bonuses to employees of AIG’s most troubled unit.

The Treasury secretary could act only after consulting with the president and getting a recommendation from two-thirds of the Federal Reserve Board, according to the plan.

Geithner plans to lay out the administration’s broader strategy for overhauling financial regulation at another hearing on Thursday.

You see folks, this is where it starts. They start seizing businesses, and taking the assets for themselves. Then the Government decides to take YOUR assets; because they happen to think that you are making too much money. What amazes me, is the resounding silence from the Republicans, especially the Neo-Conservatives like Michelle Malkin and over at HotAir.com. Could it be that the Neo-Conservatives secretly approve of such actions? Possibly the Republican Party as well? Could it be that the Republican Party is now infiltrated with Communists to the point of having lost it’s true identity?

You decide.

Others: The Moderate Voice, Reuters, pw,  , The Strata-Sphere,Bloomberg, Washington Monthly, Pajamas Media, Right Wing News, Sweetness & Light, Neptunus Lex, Stop The ACLU, Sister Toldjah, and Fausta’s Blog

(Via Memeorandum)