Wednesday, December 10, 2008

Trouble for the Auto Industry Bailout

Reports indicate that there is less confidence that the auto indusrty bailout will be passed. Many Republicans and some Democrats question whether the bailout bill will use taxpayer's dollars effectively. The Bloomberg article Democrats Back Off Prediction of Automaker Bailout Approval describes the latest version of the bill.
The Democratic proposal would let the president appoint a so-called car czar to oversee industry restructuring, and give taxpayers stock warrants equal to 20 percent of the loans. It would prohibit the automakers from paying dividends and owning or leasing corporate jets, and pay and bonuses would be limited.

This, however, does not address the inherent problems with these businesses. Preventing the "paying dividends and owning or leasing corporate jets, and pay and bonuses" addresses none of the major problems with these companies. A limit on excesses misses the basic fact that these are failed companies, who can't garner loans from anyone other than Congress. The only check or change that this bill implements is 'a car czar'; the powers of which Chairman Barney Frank tried to explain...
‘Head-Knocking’

Frank told reporters today the bill would give the car czar “a great deal of head-knocking ability” with “a lot of the powers that you would get in bankruptcy.”

The official would have the power to veto participating automakers’ plans to invest abroad, Frank said. Lawmakers want to ensure the companies don’t “take American taxpayer dollars and expand in other countries rather than here, or shut down a plant in America while expanding a plant elsewhere,” he said.

Because Bush and President-elect Barack Obama are unlikely to agree on a czar, Obama will likely replace Bush’s pick as soon as he takes office, Frank said. The Bush administration has said the official should come from the Commerce Department.

So this 'car czar' a likely member of the Commerce Department will be apparently appointed by President Bush then replaced by the future President Obama, and he shall be granted 'head knocking abilities'.

Chairman Frank went on to state that the auto industry will likely need to be granted more money in the future, something Speaker Pelosi has also stated. This does not instill confidence that this bailout will be anything but a waste of money.

A few basic questions for lawmakers...

How will this money fix the failed business policies of the auto industry?

How many bailouts and/or how much money will be paid to the automakers total?

What's wrong with bankruptcy?

What are the requirements for being granted a government bailout?

This is still not an rational solution. Ask your representatives not to support this bailout bill, and make them at least answer the basic question, 'how will this money fix the problems that the auto industry faces?'

Contact Your Senator

Contact Your Congressman

Continued Problems with the Automaker Bailout

Tuesday, December 9, 2008

Still No On Auto Bailout

Yesterday's article Oppose the Auto Bailout was not intended to be anti-union or anti-auto company, it's simply the opinion of an old fashion cheapskate. If the government is going to spend taxpayer dollars they need to ensure that those funds are not being wasted. There has been little effort to explain why pumping money into failed businesses will fix that failed business model. Voters should contact their lawmakers and let them know they will hold them responsible if they give automakers billions of taxpayer dollars only to see those business collapse in the future.

Contact Your Senator

Contact Your Congressman

Similar sentiments we're expressed by Senator Mitch McConnell (R - KY).
U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Tuesday regarding proposed auto legislation:

“The auto industry is vitally important to our nation’s economy and it is vitally important to my home state of Kentucky. This is not in dispute. The question before us is how to reverse the decline of some of these auto manufacturers after decades of complicity between management and labor.

“I understand congressional Democrats sent a revised proposal to the White House late last night. We will reserve our judgment until we see the latest text. But the proposal we saw yesterday afternoon fails to achieve our goal of securing the long-term viability of ailing auto companies.

“I want to support a bill that revives this industry. But I will not support a bill that revives the patient with taxpayer dollars yet doesn’t secure a commitment that the patient will change its ways so future help isn’t needed.

“To do so would be a betrayal of the millions of hardworking taxpayers who are not at fault for the troubles in the auto industry. And it would be unfair to the millions of Americans who depend on these companies.


No Auto Bailout Part 2

Monday, December 8, 2008

Buy an AeroCar

From Wired Get Your Own Vintage Flying Car for $3.5 Million
"Just six Aerocars were ever built, and they did fly when they were built. Marilyn Felling bought Aerocar No. 2 more than 25 years ago, but never restored it. She insists it has been examined by a mechanic and could be made airworthy in a few hours. Of course, N103D hasn't flown since the Ford Administration, so that may be optimistic.

Still — how cool would it be to own a flying car that'll do 60 mph on the highway and 110 in the air? Just think of the joy you'd feel. And if you can't think of enough good reasons to own it, the folks at aerocarforsale.com have spelled them out for you.

You can pick one up "for inclusion in your private collection." Or if you're feeling philanthropic, buy one "for a donation to your favorite museum." Maybe your kids or grandkids would appreciate it "as a legacy for the heirs of your estate. "Our favorite is the promise of "a 1031 property exchange," though we have no idea what that means. "

Opposition to Detroit Bailout

RedState.com has posted a couple pieces on opposing the government bailout of the auto industry. The first by Representative Michele Bachmann opposes not just the auto bailout, but the concept that Washington should be spending tax payer money to prop up failed businesses. The second article by Francis Cianfrocca discusses how contract renegotiations with the United Auto Workers union need to be included any proposed bailout as failure to so will result in the eventual failure of those companies with or without a bailout. Excerpts below.

One main reason the auto bailout is facing such opposition is that there has been no attempt to explain why pumping money into a failed business will fix that business. If these company continue on their current path this bailout will simply prolong the time before before failure, and will result in simply wasting a huge sum of tax payer dollars.

For those who oppose bailing out the auto industry, folllow the links below to contact your Senators and Congressmen to let them know that you do not support this bill, and that you will hold them responsible for wasting your money.

Contact Your Senator

Contact Your Congressman




No More Bailouts by Rep. Michele Bachmann
Washington needs to stop handing out your money like its Monopoly money. Each dollar is hard-earned and the men and woman who worked so hard for it deserve more respect from their government than to be treated like an ATM. Our economy grew strong on the backs of Main Street; from the ideas and sheer sweat of innovators and entrepreneurs flush with the American spirit. Risk-taking is part of that adventure. But when government guarantees against failure, risk and reward becomes meaningless. Eventually, that will crush our economy- and that eventually may not be that far down the road.

The Critical Missing Piece in the Automaker Bailout by Francis Cianfrocca
There will be no significant cost-cutting or pain imposed on the UAW in the restructuring of the domestic auto industry, unless it happens right now, this week.

The UAW must agree to a labor-cost structure that, in Sen. Corker’s words, is no higher than that faced by foreign (“transplant”) automakers who assemble vehicles in the United States. The union must agree to very painful concessions on wages, healthcare, work rules, and retiree benefits.

Gettelfinger, playing to the galleries, has assured lawmakers that he will indeed be open to doing whatever he can to seal the deal. Among other things, he’s signaled willingness to end the so-called “job bank.” You know, that’s where an automaker closes a production facility that no longer makes sense, but continues to pay the workers full wages and benefits to play video games all day, for years into the future.

But what Gettelfinger has pointedly not said, is that he’s willing to re-negotiate the contract that the UAW currently has with the automakers. In short, he’s not preparing to compromise at all, or to ask his people to take any real pain.



Oppose the Auto Bailout

Sunday, December 7, 2008

Crack Pipes Being Sold in Convenience Stores

There are several reports of 'glass roses' which are used as crack pipes being sold in convenience stores around the country. The following report comes from Georgia Georgia Police Chief Suggests Ban on Glass ‘Rose’ Pipes
"Police Chief Dennis Bell of Arcade, Georgia, is asking lawmakers to ban the three-inch glass pipes with a fake rose inside, the Associated Press reports. Bell says the novelty items, sold in many convenience stores, masquerade as crack pipes.

Known as “The Rose,” the pipe has a piece of cork on one end with a flower in the center. Bell said he is hoping the other police chiefs in Jackson County and the local sheriff will join him in seeking legislation to outlaw the pipes, the newswire reports."

On the VH1 reality show 'Celebrity Rehab' they show former patient Seth Binzer going to the 'Corner Mini Mart' in Pasadena, California and buying a 'glass rose' for drug purposes. This is seen in the following clip...



The store in this clip is
Corner Market
342 E Orange Grove Blvd.
Pasadena, CA
(626) 792-5256

Crack Pipes Being Sold in Convenience Stores

Thursday, December 4, 2008

GM's Bailout Request

Excerpt from Fox News Big Three CEO's Return to Washington to Request Billions

General Motors CEO Richard Wagoner, the first of the three CEOs to testify in two days of hearings on Capitol Hill, said his company was creating a "blueprint for a new General Motors," as he asked Congress for $12 billion in loans and a $6 billion line of credit.

The CEOs admitted mistakes before the Senate Banking Committee but also told federal lawmakers the strains of the global financial crisis have hindered their efforts to reinvent themselves.

"GM has been an important part of American culture for 100 years and most of that time, as the worlds leading automaker," Wagoner said. "We're here today because we made mistakes, which we're learning from, because some forces beyond our control have pushed us to the brink -- and most importantly, because saving General Motors and all this company represents is a job worth doing."

The heads of the Big Three automakers arrived in Washington Thursday morning, hat in hand, to ask federal lawmakers for as much as $34 billion in emergency aid.