It’s Payback Time and GM is the Loot
Larry Kudlow seems baffled by the administrations “bailout” of General Motors.
What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here?
Nope, Larry. You didn’t miss a thing. It’s called paying back a debt. The UAW spent a lot of money to get a Democratic government in Washington and now the union bosses are reaping the rewards of their investment.
This ought to tick Americans off. There’s a good chance that the average voter has some GM stock somewhere in their retirement portfolio and the Obama administration has basically taken their money and handed it to his political buddies in the UAW.
Other Posts of Interest:
- Meet the New Plan, Same As the Old Plan
- Suddenly, the President Learns That Rush Is a Smart Man with Time on His Hands
- The Obama Administration is Starting to Look Like the Mos Eisley Cantina
Category: Our New Democratic Overlords, President Barack Obama, The Economy and Your Money
He wants to get all of the middle class out of the market – where they are able to make money for their retirements and what-not. Its funny how the left squeals non-stop about the rich getting richer & the poor getting poorer, yet everything they do insures that the gap will only widen. The only people that will be able to get more wealth are the ones that are already ridiculously rich & can afford the risk. The rest of us will be edged out and forced into government care. That's the plan.