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Uncle Sam to Own GM Without Any of the Perks

Posted on May 26, 2009
Flickr / gotplaid?

GM’s restructuring plan will make the Treasury Department the majority owner of the company, according to Bloomberg. The administration reportedly intends to take as passive a role as possible and will not appoint anyone to the automaker’s board, thereby avoiding the danger that something competent might happen.

GM is currently on the hook for $19.4 billion in government aid, and the money will continue to flow as the company restructures itself, probably through bankruptcy.


The government’s ownership would be for the shortest period of time possible and, as a shareholder, the government would participate as minimally as would be responsible, the person said. No government employees will serve on GM’s board.

A possible bankruptcy at GM, should one become necessary, will be a bit longer than Chrysler’s because of GM’s complexity, the person said. Obama hasn’t made a decision on how much debtor-in-possession financing GM would get in a bankruptcy, and the government will provide adequate working capital during any Chapter 11 process, the person said.

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Purple Girl's avatar

By Purple Girl, May 27, 2009 at 4:04 am Link to this comment

Those Creditors don’t want to play ball - even though the debt is Unsecured, so be it. Nothing From Nothing is nothing boys!
Hell Take over the entire operation as a Car Company Owned by The People and Run By the People. Someone tell me somewhere it states that ‘We the People’ are not allowed to be providers of Goods and Services in this Free market economy!
What is an Outrage is that ‘We the People’ have been Relegated to mere consumers. At best we are ‘Sugar Mommas’,At Worst we are the Debtors…But never are WE allowed to be Player,Competitiors in the Open market. That kind of exclusionary Set up sounds an aweful like Feudalism to me. If given th eOpportyunity to Compete in the Open market a sa Collective Force (in a socialist type design) or be Barred by the Wealth and priviledge of Logos acting like Family Crests or communist Regimes- give me the Socialistic Access for WE the People. own a Car company to compete against foreign competitors -using our innate moxy and innovative spirit, instead of self gratification by Profiteers to pad their Golden parachutes- Hell YES!
Had the American People had control over the Big 3 in the ‘70’s and ‘80’s WE would have never gotten our asses kicked by the Japanese Auto makers.WE would have taken the Elctric Car Protypes developed in the ‘80’s and got them to market by the mid ‘90’s. WE Would have never wasted time, money and gas on installing useless shit like DVD players or extra Cup Holders in the Lead Sleds called SUV’s. Hell if WE The People had control (or even a real say ) in design and fuel Efficinecy WE Would Not be in this Position NOW!!! If WE the People had been Running those Corps, we’d have been off Oil and thus negating the stupidity which led US into the M.E.Hell the M.E. would be the ones trying to survive an Economic meltdown because their only commodity would be nothing more than useless sludge by now.
We the People now own part of GM, then lets not only have representatives of ‘The People’ on the Board, Let’s demand there are overseers of the R& D and Design Depts!
If We the People had Controlled One of these Automakers a few Decades back, it wouldn’t have only required the other two to keep up- but the worldwide Auto makers to keep up.
We have Kicked Ass Philosophically, militarily and Economically for nearly two Centuries why the hell can’t we do it through an Industry too. Give US an Auto Corp and we will lead the World in Auto manufacturing, development and innovation- and be able to provide a decent wage and working conditions to Boot!
Let’s not just show the World How it’s Done - Lets show the Private Profiteers How it’s done!
Then lets reclaim our nations Energy Resources and teach them a lesson in Real Free market competition. Push those Energy corps back on to the lands they actually own and then see how much power, influence and profits they control in the Global market.
‘Socialism’ You Say? What the hell do you think the Pre Amble “WE the People” Means?!?! It does NOT State the Rights, Freedoms, Gov’t nor Free Market are inaleinable Rights of the Corps! Get a Damn Clue, That’s Communism at Best, Feudalism at worst-  both of Which OUR Founders outright Rejected in their Declaration of Independence! Family Crest, Regime Emblem ,‘sacred’ Symbol or Logo - all the same thing if they own and control the resources and oppress the masses.
Obviously some in this country could use to Review our Foundig documents, a history book or at the very least a damn dictionary.

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By thebeerdoctor, May 26, 2009 at 11:37 pm Link to this comment

You see We are trying to build a new flexible car company, with the innovative products that today’s advanced consumers have come to expect. A new partnership between management and government which will forge a new grade level of double speak throughout the society. Where the inflated promises of yesterday are now being matched by the lower expectations of the line workers who know, who simply know, that wage and benefit cuts are only proper, at this time when the nation finds itself flat on its back. As those surrounding the President have collectively said: We Are All In This Together! And even the icons of the American financial system, are committed to making sacrifices too. Finding their considerable portfolios under considerable pressure, they have been forced to give up that third home with the built in cigar humidor. That big boat docked in the no wake zone at the lake, will just have to sit there! Many a painting beloved by their owners, now must make that fatal call to Sotheby’s. A career’s worth of acquisitions now must be seriously culled down to size. Think of the tragedy: the spare wine cellar, the Escalade, the baby Einstein dvd collection!
But these are times that test the financial soul. They will have to forgo the private jet and suck it up and fly with the common people. Oh the embarrassing indignity!

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By Fadel Abdallah, May 26, 2009 at 9:48 pm Link to this comment

Welcome again to camouflaged socialism!
First, the government took ownership of the big banks and now it’s taking ownership of one of the biggest car companies, and who knows what will come next!

If this proofs anything, then it proofs that socialism, or at least some aspects of it, is the real solution to the unregulated and extreme capitalism as we’ve known it before.

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