Billions wasted

Matthew Hoy
By Matthew Hoy on April 28, 2009

President George W. Bush's last mistake as he left the White House was his decision to use TARP funds -- under what authority no one knows -- to keep GM and Chrysler afloat until the Obama administration could come in and decide what to do.

It appears as though the Obama administration is going to use the power of the government to reward the AFL-CIO to the detriment of GM shareholders. CNBC's Larry Kudlow at National Review Online:

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? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization.

If someone can explain how the math works out in some sort of fashion that appears the least bit fair, I'd appreciate knowing.

0 comments on “Billions wasted”

  1. What a huge wasted opportunity for Bush. Burn-out, I guess. He could have used TARP money as a carrot to have GM and Chrysler reorganized in Bankruptcy court. Same mistake, I think, that Gerry Ford made when NYC needed a bailout...


BREAKING: We just filed a motion asking the Ninth Circuit to lift the stay in our lawsuit challenging California's ban on so-called "assault weapons," which, if granted, would allow the judgment striking down the ban to go into effect. Read it here:

Stole the image from a reddit post, but it appears to be an accurate summary.

The losers in Sacramento are throwing a temper tantrum in response to the ruling in Bruen. Now that they have to issue carry permits, they want to make basically everywhere a "sensitive place".

Load More


April 2009



linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram