General Motors and zipper peas

galveston · Mar 31, 2009, 02:18 PM

GENERAL MOTORS AND ZIPPER PEAS

I wanted to plant some zipper peas this year. They are a round, cream pea that is delicious and so easy to shell. Unfortunately, I could not find any seed.

About now, you are asking, just what does this have to do with General Motors.

We have just witnessed a very dangerous precedent being set. The president of the USA has forced the CEO of a company to resign. The justification for this action being twofold. First, the company is about to go under, and second, GM accepted public money to prop it up. I won’t go into the why of GM’s problem in the first placel

If this action is allowed to stand, then the same rationale can be used in the future against any company. If it gets public money, and the president or one of his appointees thinks it is failing, then government will essentially take control of that business. All for our good, of course.

Now think about this. What major industry has been accepting public money for many years now?

The answer I have in mind is agriculture.

Now suppose that a large agricultural corporation has a bad year or two. Based on what we have just seen, could we expect the government to step in and take control of that corporation? I think we could. After all, what is REALLY too big to fail if not a major producer of foodstuffs?

So we would have a government appointee managing food production. Never mind that he got the job because he is party hack with no farming experience.

In 1993 I was in Russia near Moscow and stayed for a few days at a commune. I learned some things there.

Those of you who can remember even recent history know that the USSR could never feed itself. It had to buy grain and other things regularly. Now that was not because Russia did not have good farm land. It was because those managing the communes were not appointed for their expertise, but because of their party connections.

The same government that had incompetent farm managers also ran the factories. What happened was that even when crops were planted and ready to harvest, many times machines broke down, and parts were not readily available. Those running the farms were also running the manufacture and distribution of replacement parts. Those crops rotted in the field.

What does all this have to do with zipper peas? The reason given to me is that so many farms have converted over to producing corn for ethanol, a subsidized crop, that not enough people are growing peas for seed..

Think about where all this wonderful change is headed.

John

speechlesstx · May 1, 2009, 10:36 AM

Quote:

Originally Posted by NeedKarma

I answered your question. Are you slow today?

No you swerved around the first part of the question.

Quote:

Can you show me how "libs celebrate their perverts"?

Gee, I guess you missed the point of that kind of "festival" in a major American city.

ETWolverine · May 1, 2009, 10:43 AM

Quote:

Originally Posted by NeedKarma

Can you show me how "libs celebrate their perverts"?

The best example of all: They elected Bill Clinton.

But there are plenty of others.

Elliot

speechlesstx · May 4, 2009, 08:08 AM

It's being reported that the Obama administration is using the threat of the White House press corps to intimidate Chrysler investors:

Quote:

An attorney representing several Chrysler bondholders accused the Obama administration of intimidating his clients by issuing threats of public humiliation if they opposed their brokered deal to resolve the automaker’s debts. Speaking to WJR, Thomas Lauria said that the White House called the bondholders “vultures” for insisting on their rights as senior creditors and told them that the Obama administration would use the White House press corps to attack them in the media. Corky Boyd has the transcript (also via HA reader Geoff A):

Lauria: Let me tell you it’s no fun standing on this side of the fence opposing the President of the United States. In fact, let me just say, people have asked me who I represent. That’s a moving target. I can tell you for sure that I represent one less investor today than I represented yesterday. One of my clients was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under the threat that the full force of the White House Press Corps would destroy its reputation if it continued to fight. That’s how hard it is to stand on this side of the fence.

Beckman: Was that Perella Weinberg?

Lauria: That was Perella Weinberg.

Glenn Reynolds wonders how the White House press corps will feel about being used as an arm of the administration to beat its opposition into submission. My guess? Enchanted, with just a couple of exceptions. He also wonders whether they will show the slightest inclination to ask about these allegations. So far, it looks like the Sounds of Silence on the WHPC dial rather than We’re Not Gonna Take It.

Bear in mind that this is one attorney operating in his client’s interest, and attorneys do like to make media waves by fighting cases on the evening news and the front page before they fight them in court. However, the WHPC should be asking whether they’re getting played by the Obama administration — and consider the strong possibility that they’ve allowed themselves to be put in that position.

Update: Jake Tapper reports the allegations and wants an answer from the White House:

A leading bankruptcy attorney representing hedge funds and money managers told ABC News Saturday that Steve Rattner, the leader of the Obama administration’s Auto Industry Task Force, threatened one of the firms, an investment bank, that if it continued to oppose the administration’s Chrysler bankruptcy plan, the White House would use the White House press corps to destroy its reputation.

Thomas Lauria, Global Practice Head of the Financial Restructuring and Insolvency Group at White & Case, told ABC News that Rattner suggested to an official of the boutique investment bank Perella Weinberg Partners that officials of the Obama White House would embarrass the firm for opposing the Obama administration plan, which President Obama announced Thursday, and which requires creditors to accept roughly 29 cents on the dollar for an estimated $6.8 billion owed by Chrysler.

Lauria first told the story, without naming Rattner, to Frank Beckmann on Detroit’s WJR-AM radio.

The White House now denies the allegations, claiming that there’s no evidence of it (via Geoff A):

The White House said the story was false.

“The charge is completely untrue,” said White House deputy press secretary Bill Burton, “and there’s obviously no evidence to suggest that this happened in any way.”

No evidence? What about Lauria’s personal testimony?

Meanwhile, Tommy Christopher — who actually reports from the White House — dismisses the charge:

As far as the “threat” Lauria alleges, it sounds an awful lot like someone told his client that public opinion would not likely be favorable to people who would obstruct a fair deal to save Chrysler. That’s not a threat, it is a reality. It’s no more a “threat” than John McCain’s campaign promise to make earmarkers “famous.”

Apples and oranges. McCain threatened to make public officials “famous” for wasting taxpayer money. The Obama administration allegedly threatened to use the WHPC to destroy the reputations of private citizens as a punishment for not relinquishing their contractual rights for having helped float Chrysler. There’s a huge difference between the two.

Isn't that special? Where's this adversarial press I keep hearing about? Is Jake Tapper the only White House reporter left with any integrity?

speechlesstx · May 20, 2009, 08:07 AM

Good news, we're going to own GM.

Quote:

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

"Initially owned" by the feds? Is that only until the ownership structure negotiations conclude with the UAW as the majority owner?

excon · May 20, 2009, 08:56 AM

Quote:

Originally Posted by speechlesstx

Good news, we're going to own GM.

Hello again, Steve:

Bummer. If only the dufus hadn't broken it sooooo bad.... Ok, ok. It wasn't JUST the dufus. He had a lotta help.

We DID get ripped off, you know. The country WAS looted. Somebody wasn't watching the store when that happened, and there's a price to pay for that mistake.

But, you should stop blaming the FIXER, and start blaming the BREAKER.

excon

ETWolverine · May 20, 2009, 09:15 AM

Quote:

Originally Posted by speechlesstx

Good news, we're going to own GM.

Oh, goody. We now own a car company, several banks, a major insurance company and soon the hospitals. All we need are Park Place, Boardwalk, and Short Line railroad and we win the game!!!

Hat tip to Roe Conn (The Roe Report), from Chicago's WLS radio.

Elliot

speechlesstx · May 20, 2009, 09:20 AM

Quote:

Originally Posted by excon

Hello again, Steve:

Bummer. If only the dufus hadn't broken it sooooo bad.... Ok, ok. It wasn't JUST the dufus. He had a lotta help.

We DID get ripped off, you know. The country WAS looted. Somebody wasn't watching the store when that happened, and there's a price to pay for that mistake.

But, you should stop blaming the FIXER, and start blaming the BREAKER.

Do you really think Obama is fixing it?

excon · May 20, 2009, 09:26 AM

Quote:

Originally Posted by speechlesstx

Do you really think Obama is fixing it?

Hello again, Steve:

Nooo, not really, but I'm an optimist. I'm also buying gold.

But, if it DOESN'T get fixed, it's the guy who BROKE its fault - not the guy who tried to fix it. Your fix - to let it all go in the dumper and lower taxes - ain't a fix.

excon

ETWolverine · May 20, 2009, 09:51 AM

Quote:

Originally Posted by excon

Hello again, Steve:

Nooo, not really, but I'm an optimist. I'm also buying gold.

But, if it DOESN'T get fixed, it's the guy who BROKE its fault - not the guy who tried to fix it. Your fix - to let it all go in the dumper and lower taxes - ain't a fix.

excon

Let's see... that would make it the UAW's fault for stupid, unrealistic contracts that no company could pay and remain profitable. It's management's problem for having made those agreements. It's management's fault for having a poor business model. It's management's fault for poor quality control for so many years. It's the UAW's fault for not allowing bad performers to be fired for poor performance (thus leading to poor quality, liability issues and wasted money).

What has any of that got to do with Bush?

GM started as a company in 1908, and Rick Wagoner became CFO of GM in 1992 and President in 1998. Wagoner's mismanagement predates Bush's presidency. UAW was started in 1935, and Ron Gettlefinger has been on the executive board of the UAW since 1992, Vice President since 1998 and President since 2002.

I don't see any connection between the bad business policies of these guys, which predated the Bush administration, and George Bush. How is any of this Bush's fault?

Furthermore, you keep referring to Obama as the fixer. How is the nationalization of GM going to fix anything? And how is cap in trade designed to fix any of it? In what way is Obama "fixing" anything?

Elliot

galveston · May 20, 2009, 01:38 PM

I'll say it again.

What 'Bama broke is confidence.

Without that, no fix is going to work.



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