Thursday, May 07, 2009

UAW Getting What They Paid For

Obama ran on change, but all I see is business as usual.  He raised more money than any candidate in history, and now it is time to start returning the favors.  NBC, which is owned by GE, used completely biased reporting of the election cycle to get their man elected, and he has returned the favor in the form of green job incentives and cap and trade that will earn GE billions.  The UAW gives 99% of there contributions to Democrats and now they get this sweetheart deal with Chrysler.  In a lawful bankruptcy proceeding, secured creditors get paid first before the unsecured creditors.  The UAW would be at the back of the line under this arrangement and under current law and would stand to receive nothing.  If the secured creditors can't be paid back, then the Union simply can't get paid.  Well in the bankruptcy filing, the secured creditors get next to nothing and the USA not only gets nothing for the 4 billion we have already loaned them, we also are required to lend an additional 3.5 billion that will not be paid back.  We also would be agreeing to additional post bankruptcy financing.  Well I call bullshit!  Who came up with this agreement and why (where is the transparency)?  If 3.5 billion is required to get them through bankruptcy, the company is worthless.  Whoever supplies that money should get the bulk of the company, because if it was not supplied the company would cease to exist.  When we loaned them the 4 billion, it was a bridge to give them time to come up with a plan.  If the plan was not acceptable we had the right to demand immediate payment.  So the plan they come up with is to not pay us the 4 billion, have us lend an additional 3.5 billion that will not be paid back, and have us commit to additional loans in the future.  Lets just liquidate the company already.  This is simply political corruption at its worse.  The UAW helped to get Obama elected, and now he is using taxpayer money to pay them back.  If this is not the case, please explain why the United States taxpayer should accept this deal, and why an unsecured creditor ends up owning 55% of a company after bankruptcy?   


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