We elected a President of the US who had no leadership or organizational management experience, based entirely on his rhetoric and oratorical skills. What is totally frightening is that he is now President and plans to become CEO of two US automobile companies, by completely disenfranchising the people who actually own the common stock or those who have lent close to $25 billion to GM alone. Now the totally unqualified manager, is about to become the CEO of two failed companies. What a joke.
The key issue here is that our entire free market capitalism society is being transformed by the very radical President Obama I wrote about in my previous Blog. Barack Obama not only has no experience in corporate capitalism, he obviously believes in the totally discredited economic theory that was at the heart of Karl Marx and his "Das Capital." That theory, known as the Labor Theory of Value, argued that ALL Value in society was created by labor, and that hence, all values belong to labor. Economists have debated that theory for well over a hundred years, and the real world has proven that it simply is not true. Barack Obama, obviously does not agree.
The model for the Chrysler and GM bailout calls for the labor unions to own the majority interest in the companies. The bond holders take less than ten cents on the dollar, and the labor and government get north of 70 cents on the dollar. That should tell you all you need to know. Given that, who can blame the bond holders of Chrysler for saying at that rate, I will take my chances on the bankruptcy court, rather than agree to the Obama administration "cram down." Even liberal judges will not be able to go that far.
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