Stupid: General Motors plays a shell game

Here’s one for the “Stuck on Stupid” file that seems to be getting bigger and bigger by the day.

AP Headline: Gas in the tank: GM repays $8.1B in gov’t loans

Quote:

WASHINGTON – Fallen giant General Motors Co. accelerated toward recovery Wednesday, announcing the repayment of $8.1 billion in U.S. and Canadian government loans five years ahead of schedule.
The Obama administration crowed about the “turnaround” at GM and fellow bailout recipient Chrysler LLC, saying the government’s unpopular rescue of Detroit’s automakers is paying off.
Much of the improvement comes from GM slashing its debt load and workforce as part of its bankruptcy reorganization last year. But the automaker is a long way from regaining its old blue-chip status: It remains more than 70 percent government-owned and is still losing money — $3.4 billion in last year’s fourth quarter alone. And while its car and truck sales are up so far this year, that’s primarily due to lower-profit sales to car rental companies and other fleet buyers.
Chrysler, now run by Italy’s Fiat Group SpA, said Wednesday it lost almost $200 million in the first quarter. But it said it boosted its cash reserves by $1.5 billion, reducing the likelihood that it will need more government aid.
“This turnaround wasn’t an accident of history,” said White House economic adviser Larry Summers. “It was the result of considered and politically difficult decisions made by President Obama to provide GM and Chrysler — and indeed the auto industry — a lifeline, if they could demonstrate the will to reshape their businesses.”
Vice President Joe Biden said President Barack Obama “took a lot of heat” to keep GM alive. “And this has even exceeded our expectations.”

Everything is happy yappy and yippie skippy right?

Wrong.

Jamie Dupree dishes the straight dope on this little shell game: (H/T Q & O)

General Motors will make a big splash in the news today by announcing that the automaker will repay several billion dollars loans from the federal government earlier than expected. But it’s not really coming out of the GM wallet.

The issue came up yesterday at a hearing with the special watchdog on the Wall Street Bailout, Neil Barofsky, who was asked several times about the GM repayment by Sen. Tom Carper (D-DE), who was looking for answers on how much money the feds might make from the controversial Wall Street Bailout.

“It’s good news in that they’re reducing their debt,” Barofsky said of the accelerated GM payments, “but they’re doing it by taking other available TARP money.”
In other words, GM is taking money from the Wall Street Bailout – the TARP money – and using that to pay off their loans ahead of schedule.
“It sounds like it’s kind of like taking money out of one pocket and putting in the other,” said Carper, who got a nod of agreement from Barofsky.
[….]

Most of Uncle Sam’s bailout money that was given to GM has now been turned into stock in the U.S. automaker.
“The assumption is that, over time, hopefully the value of the stock will appreciate,” said Carper.
Long term that could prove to be a money-making investment for the feds – or if things go the wrong way for General Motors – a big, fat loss for Uncle Sam.

As most of you know, my Father is a 31 year veteran of the General Motors company. I find this little idiotic shell game right here to be just plain immoral. I mean, how in the hell are you going to use money from the Government to pay off the Government? That is basically taking money out of one pocket and putting into another. That is not paying off your debt; that is nothing more than a shell game. The reason why this is so upsetting to me is; that it is just going to hurt my Father. Because sooner or later, this company is not going to be able to pay my Dad’s pension.

As the son of a General Motors worker, I want to see G.M. succeed; but I want to see them succeed the right way and honestly. Not by playing a dirty, underhanded shell game, and that my friends is what this is, a dirty shell game to fool the American people and the workers at G.M. into believing that they are on to the road to recovery, when in all honesty, they are not.

The American Taxpayers, The workers and retirees for General Motors; deserve better than this.

Shame on General Motors for their deceptive tactics and shame on the White House and Yes, the President for aiding and abetting in this little scam.

The real cute part is that not a word of this, has been said in the media, as to just HOW this loans are being paid back. That my friends is a damned human tragedy.

Others: Questions and Observations, Mish’s Global Economic …, TigerHawk, Sweetness & Light, JammieWearingFool and The TrogloPundit

Update: Not surprisingly, Ed Morrissey Agrees with me.

From the Dept of 'Now why I am not surprised?'

Shocking? Not Hardly.

In Port-Au-Prince, Haiti, there is a police impound lot where dozens of brand-new vehicles sit gleaming in the sun, sporting the logos of aid groups that poured into the city to help in the wake of a devastating earthquake that killed more than 200,000 people and left 1 million homeless.
Haitian police are holding the vehicles for ransom, American aid workers say, demanding exorbitant sums for registration technicalities. The relief workers call it a brazen display — even for a country known to be rife with corruption.
When many of the vehicles were brought into Haiti, as cries rang out from beneath the rubble, there was no Haitian government to register the vehicles. The factory that made license plates, for instance, was destroyed.
But in mid-March, less than two months after the earthquake that registered 7.0 on the Richter scale, Haitian police began to impound vehicles without tags.
Relief groups are given a choice, American aid workers say: Pay a fine of 50 percent of the vehicles’ value, which quickly adds up to tens or hundreds of thousands of dollars for most groups, or wait two to three months for paperwork to be processed.
via Haitian corruption and graft delay earthquake relief efforts, punishes destitute refugees | The Daily Caller

This is what happens when a Constitutional Republic decides to be the “White Knight” of a Socialist Country. You would think that America, its people and Government would have wised up about this already. But, as long as there is a bleeding heart liberal in this Country, we will keep sinking money into that godless pit.

When will America get a clue? When?

Is that taliban ready for peace? Not so fast.

Oops.

Via the Times of London:

The supreme leader of the Taliban, Mullah Mohammed Omar, has indicated that he and his followers may be willing to hold peace talks with western politicians.
In an interview with The Sunday Times, two of the movement’s senior Islamic scholars have relayed a message from the Quetta shura, the Taliban’s ruling council, that Mullah Omar no longer aims to rule Afghanistan. They said he was prepared to engage in “sincere and honest” talks.
A senior US military source said the remarks reflected a growing belief that a “breakthrough” was possible. “There is evidence from many intelligence sources [that] the Taliban are ready for some kind of peace process,” the source said.
At a meeting held at night deep inside Taliban-controlled territory, the Taliban leaders told this newspaper that their military campaign had only three objectives: the return of sharia (Islamic law), the expulsion of foreigners and the restoration of security.
“[Mullah Omar] is no longer interested in being involved in politics or government,” said Mullah “Abdul Rashid”, the elder of the two commanders, who used a pseudonym to protect his identity.
“All the mujaheddin seek is to expel the foreigners, these invaders, from our country and then to repair the country’s constitution. We are not interested in running the country as long as these things are achieved.”

There’s only one little problem, the Taliban’s big cheese says, “Not so fast….”

Via The Long War Journal: (H/T Jawa Report) (Original Here)

(Theunjustmedia:) My question is did this interview with The Sunday Times and The Islamic Emirate of Afghanistan senior Islamic scholars took place?
Zabihullah Mujahid: No, no interview has been conducted with the The Sunday Times and The Islamic Emirate of Afghanistan senior Islamic scholars, this interview is a lie.
Theunjustmedia: How do you comment on the content of this fake propaganda interview, what objectives could the invaders have in propagating this type of disinformation among the masses.
Zabihullah Mujahid: This is a good question, and I think that the concern citizens of the world should be asking this question from those who are behind this propaganda, what benefits are they trying to seek by lying to world about The Islamic Emirate of Afghanistan. I think people should contact The Sunday Times and ask them why are they spreading disinformation, also other media outlets should bring to light The Sunday Times deception to its reads.

It is obvious that the Taliban is not interested in working with the United States and is still interested in protecting, supporting and bringing comfort to Al-Qaeda. Nothing has changed and because of that, the United States will continue to hunt them down and kill them. This should be a glaring example to ALL Democrats and those on the far left, that you cannot negotiate with terrorists, ever. The only solution is to hunt them down and get rid of them, by the end of a gun or other such piece of artillery.

Until the Libertarians, Far leftists, and Democratic Party supporting liberals figure that out. We will have nothing to discuss.

NEXT!

Coming to America

It won’t be long:

A WOMAN has been denied an operation on the NHS after paying for a private consultation to deal with her severe back pain.
Jenny Whitehead, a breast cancer survivor, paid £250 for an appointment with the orthopaedic surgeon after being told she would have to wait five months to see him on the NHS. He told her he would add her to his NHS waiting list for surgery.
She was barred from the list, however, and sent back to her GP. She must now find at least £10,000 for private surgery, or wait until the autumn for the NHS operation to remove a cyst on her spine.
“When I paid £250 to see the specialist privately I had no idea I would be sacrificing my right to surgery on the NHS. I feel victimised,” she said.
via NHS bars woman after she saw private doctor – Times Online.

This is what America will look like under Obama-care; just give it a little time.

Others: : Le·gal In·sur·rec· tion and The Lonely Conservative

Justice: Goldman Sachs sued by the SEC for the Meltdown of 2008

Finally, some justice to these bastards:

Via the NYT:

Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.
The move marks the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market. Goldman itself profited by betting against the very mortgage investments that it sold to its customers.
The suit also named Fabrice Tourre, a vice president at Goldman who helped create and sell the investment.
In a statement, Goldman called the S.E.C. accusations “completely unfounded in law and fact” and said the firm would “vigorously contest them and defend the firm and its reputation.”
The instrument in the S.E.C. case, called Abacus 2007-AC1, was one of 25 deals that Goldman created so the bank and select clients could bet against the housing market. Those deals, which were the subject of an article in The New York Times in December, initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank.
As the Abacus deal plunged in value, Goldman and a prominent hedge fund made money on their negative bets, while European investors like IKB and ABN Amro lost more than $1 billion, the S.E.C. said.
According to the complaint, Goldman created Abacus 2007-AC1 in February 2007, at the request of John A. Paulson, a prominent hedge fund manager who earned an estimated $3.7 billion in 2007 by correctly wagering that the housing bubble would burst.
Goldman let Mr. Paulson select mortgage bonds that he wanted to bet against — the ones he believed were most likely to lose value — and packaged those bonds into Abacus 2007-AC1, according to the S.E.C. complaint. Goldman then sold the Abacus deal to investors like foreign banks, pension funds, insurance companies and other hedge funds.
But the deck was stacked against the Abacus investors, the complaint contends, because the investment was filled with bonds chosen by Mr. Paulson, who is not named in the suit, as likely to default. Goldman told investors in Abacus marketing materials reviewed by The Times that the bonds would be chosen by an independent manager.
“The product was new and complex, but the deception and conflicts are old and simple,” Robert Khuzami, the director of the S.E.C.’s division of enforcement, said in a statement. “Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party.”

In response Goldman Sachs says:

The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.

Yeah, sure the accusations are unfounded. If I were a Goldman employee; I would be looking for a new job pronto.

From the SEC Press Release:

The SEC’s complaint alleges that after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Given that financial short interest, Paulson & Co. had an economic incentive to select RMBS that it expected to experience credit events in the near future. Goldman Sachs did not disclose Paulson & Co.’s short position or its role in the collateral selection process in the term sheet, flip book, offering memorandum, or other marketing materials provided to investors.
The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for ABACUS 2007-AC1. Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors. Tourre allegedly knew of Paulson & Co.’s undisclosed short interest and role in the collateral selection process. In addition, he misled ACA into believing that Paulson & Co. invested approximately $200 million in the equity of ABACUS, indicating that Paulson & Co.’s interests in the collateral selection process were closely aligned with ACA’s interests. In reality, however, their interests were sharply conflicting.
According to the SEC’s complaint, the deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Oct. 24, 2007, 83 percent of the RMBS in the ABACUS portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded.
Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.
The SEC’s complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, and financial penalties.

Allow me to humbly submit that I hope that these bastards get exactly what is coming to them. I mean, these guy literally gambled as the stock market and by proxy; our economy went straight into the toilet. Many people that I know; like my parents, lost a good deal of money on this stuff. Not only that, after the credit crises hit; G.M. ended up having to shed a bunch of expenses; and as a result, my parents lost their optical and dental insurance. That came as a indirect result of this Wall Street mess. So, as far as I am concerned; throw the book at these bastards.

Capitalism is one thing, heartless greed is another; and these bastards crossed that line, big time. 😡

Okay, Who's playing with thier fireballs again in Ohio?

I had nothing to do with it, honest!

Video:

The Story:

Authorities in several Midwestern states were flooded Wednesday night with reports of a gigantic fireball lighting up the sky, the National Weather Service said.
The fireball was visible for about 15 minutes beginning about 10 p.m., said the National Weather Service in Sullivan, Wisconsin, just west of Milwaukee.
“The fireball was seen over the northern sky, moving from west to east,” said the NWS in the Quad Cities area, which includes parts of Iowa and Illinois.
“Well before it reached the horizon, it broke up into smaller pieces and was lost from sight,” the service said. “Several reports of a prolonged sonic boom were received from areas north of Highway 20, along with shaking of homes, trees and various other objects including wind chimes,” it said.
It said the fireball was seen across parts of Missouri, Illinois, Indiana and Wisconsin. CNN affiliate WISN-TV said that people in Ohio also saw it.
via Massive fireball reported across Midwestern sky – CNN.com.

Alright, which one of you Domestic Terrorists have been playing with the missile launcher again? 😉

Just a little humor after days and days of depressing news. 😀

How bad will it be for Democrats come 2010?

This bad:

Though Election Day is still months away, pundits have already begun to speculate on possible outcomes for this year’s midterms. There’s a general consensus that Democrats will lose seats in November, but beyond that opinions vary widely on how big those losses might be. Some argue that because of the advance notice, passage of health care, and an improving economy (or some combination of all three), Democrats will be able to limit their losses significantly. Others are predicting a repeat of 1994, when Democrats lost 50+ seats and control of the House.
[…]

That said, I think those who suggest that the House is barely in play, or that we are a long way from a 1994-style scenario are missing the mark. A 1994-style scenario is probably the most likely outcome at this point. Moreover, it is well within the realm of possibility – not merely a far-fetched scenario – that Democratic losses could climb into the 80 or 90-seat range. The Democrats are sailing into a perfect storm of factors influencing a midterm election, and if the situation declines for them in the ensuing months, I wouldn't be shocked to see Democratic losses eclipse 100 seats.
[…]
President Obama’s policy choices to date are wreaking havoc on the brand that Democrats cultivated carefully over the past twenty years. Bill Clinton worked long and hard to make it so that voters could say “fiscal conservative” and “Democrat” in the same sentence, but voters are finding it difficult to say that again.
If brand damage is truly seeping over into Congressional races – and the polling suggests it is – then the Democrats are in very, very deep trouble this election. There is a very real risk that they could be left with nothing more than Obama’s base among young, liberal, and minority voters, which is packed into relatively few Congressional districts. It would be the Dukakis map transformed onto the Congressional level, minus the support in Appalachia. That would surely result in the Democratic caucus suffering huge losses, and in turn produce historic gains for the GOP this November.
via RealClearPolitics – How Bad Could 2010 Really Get For Democrats?.

As I have said on here many times. Elections have consequences, so do bad policy decisions; this is a result of that. When you poke your finger in the eye of the American people and you try and tell them, what is good for them, this is what happens. President Obama and his goons in the Congress have basically disrupted the status quo in American heathcare and many Americans were against this Healthcare bill; including those on the left, who felt that it did not go far enough. So, Obama and the Democrats are going to be hurting come November. It will be very interesting to watch, and I will be there, writing my fool head off about it. 😀

Others: Hot Air, American Power, Wizbang, Weekly Standard, The New Republic, Beltway Confidential, Pollster.com All Content, Ruby Slippers, The Strata-Sphere, THE ASTUTE BLOGGERS and Wake up America

Living Proof that Liberals hate our Military.

It figures:

They should have done this to the first jackass who tried to pull this kind of stunt. Maybe a decade of hard labor will nip this stupidity in the bud, although what will probably happen is the wingnuts will be mortified our Kenyan preznit is prosecuting American HEROES.

So says former-conservative turncoat and now liberal traitor; who is also a Blogger, John Cole.

Why?

All because some member of our Great Military decided that Obama was unqualified to be President of United States.

It just shows you just how tolerate of dissent your liberals really are. 🙄

Which is why I will never, ever vote Democrat again.

Justice: Maryland Cops who beat John McKenna will be FIRED!

First the Video:

The Story:

Police in Maryland are investigating three officers involved in a beating last month at the University of Maryland’s College Park campus. One officer has already been suspended.
The incident was caught on tape, and it apparently shows University of Maryland student John McKenna being attacked by Prince George's County police unprovoked during a celebration after a basketball game. The beating occurred on March 3 after Maryland’s basketball team beat Duke University.
Attorney Christopher Griffiths released video of the incident on Monday after charges against McKenna, 21, were dropped. A police officer involved in the incident had claimed McKenna assaulted them.
McKenna was among the 28 people arrested by Prince George’s County police during the civil unrest that followed the game.
County prosecutors are investigating the incident and police have launched an internal affairs investigation.
Police Chief Roberto Hylton says he saw the video and was outraged. He says one officer’s police powers have been suspended and two other officers will be suspended when they are identified
via Video of Student Beating Leads to Cop Suspension – The Early Show – CBS News.

One network says fired, the other says suspended; but I tend to think it is the latter. There is no defending those actions. Those PIGS, and that is what they are; attacked that kid unprovoked and then lied about it. They are getting just what should be coming to them. Well, I believe that criminal charges should be brought against them, and that might just happen.

As a Conservative, I believe in rule of law. What I do not believe in, is police brutality. 😡 This was a clear cut case of that; and for that these men will lose their jobs. As someone who’s cousin was shot dead by corrupt Detroit police officers in the 90’s, I feel that any sort of police brutality should be dealt with harshly and those responsible should be jailed themselves. Although, in this case, I highly doubt that will happen.

Do not misunderstand me here; there are times when the police have to use force of this sort. This was not one of those times.

Heh: Congress passes a Healthcare Bill and Kicks themselves off their own Healthcare Insurance

Now before I quote this news article, imagine with me a cage full of little white mice. There’s about 100 or so of ’em in there. Now outside that cage is a big block of nice American cheese. Said mice spot said cheese and proceed to open said cage. Now the last mouse out, named Louie, who’s a bit of a fat ass drunk, accidentally bumps the cage’s door and it locks behind them. Well, the mice don’t seem to notice, all they see, is the cheese. Well, outside that cage also a huge cat, and a hungry one at that. 😯 😮 Panic. Keep this rather humorous thought in mind, while you read the following.

Via the NYT: (H/T to HotAir and Instapundit)

“It is unclear whether members of Congress and Congressional staff who are currently participating in F.E.H.B.P. may be able to retain this coverage,” the research service said in an 8,100-word memorandum.
And even if current members of Congress can stay in the popular program for federal employees, that option will probably not be available to newly elected lawmakers, the report says.
Moreover, it says, the strictures of the new law will apply to staff members who work in the personal office of a member of Congress. But they may or may not apply to people who work on the staff of Congressional committees and in “leadership offices” like those of the House speaker and the Democratic and Republican leaders and whips in the two chambers.
These seemingly technical questions will affect 535 members of Congress and thousands of Congressional employees. But the issue also has immense symbolic and political importance. Lawmakers of both parties have repeatedly said their goal is to provide all Americans with access to health insurance as good as what Congress has.
Congress must now decide what steps, if any, it can take to deal with the problem. It could try for a legislative fix, or it could adopt internal policies to minimize any disruptions.
In its painstaking analysis of the new law, the research service says the impact on Congress itself and the intent of Congress are difficult to ascertain.
The law apparently bars members of Congress from the federal employees health program, on the assumption that lawmakers should join many of their constituents in getting coverage through new state-based markets known as insurance exchanges.
But the research service found that this provision was written in an imprecise, confusing way, so it is not clear when it takes effect.
The new exchanges do not have to be in operation until 2014. But because of a possible “drafting error,” the report says, Congress did not specify an effective date for the section excluding lawmakers from the existing program.
Under well-established canons of statutory interpretation, the report said, “a law takes effect on the date of its enactment” unless Congress clearly specifies otherwise. And Congress did not specify any other effective date for this part of the health care law. The law was enacted when President Obama signed it three weeks ago.
In addition, the report says, Congress did not designate anyone to resolve these “ambiguities” or to help arrange health insurance for members of Congress in the future.
“This omission, whether intentional or inadvertent, raises questions regarding interpretation and implementation that cannot be definitively resolved by the Congressional Research Service,” the report says. “The statute does not appear to be self-executing, but rather seems to require an administrating or implementing authority that is not specifically provided for by the statutory text.”
The White House said last month that Mr. Obama would voluntarily participate in the health insurance exchange, though the law does not require him or other administration officials to do so. His participation as president may depend on his getting re-elected in 2012.
Representative Jason Chaffetz, Republican of Utah, said lawmakers were in the same boat as many Americans, trying to figure out what the new law meant for them.
“If members of Congress cannot explain how it’s going to work for them and their staff, how will they explain it to the rest of America?” Mr. Chaffetz asked in an interview.

Go on over there and read that; I’ve never seen so much rat panic in my life. Thus proving that you should always READ THE FARKING BILL! 🙄