greg334
Veteran Expediter
The supreme court has decided to let Chrysler's sale to Fiat go as planned. For the first time we have an administration involved with what a private enterprise can and can not do, and it has run interference to complete a task that should be left in private hands and only private hands. Obama also rewarded the groups that had no real investments into the company, the union and the governments of the United States and Canada.
What this is, is just what the title of the thread is, a form of fascism. This system was used during the late 20's in Italy and in the mid and late 30's in Germany. It is not like the soviet union who just took the company over and ran it as part of the state, they didn't have private ownership like they did in Italy and Germany. What some of this started as is a basic control through administration, the Czar system. We have a car Czar and other Czars and even soon to be a wage Czar which is all fascism. They get their hands on the company, administer it and then the people who supported the system get some sort of rewards. In the case of the car companies, I have a strong feeling that some on Wall Street through the treasury department will make the real money and we will get screwed as usual.
Oh... side bar, you know when the banks and other people who got the trillion or so of our money pay all of this back, do you honestly think that it will go to pay the debt that was created to lend the money in the first place? NO WAY, they didn't put a payback clause in the TARP legislation.
I digress.....
What this decision impacts is really simple, the first thing the trust of our system is gone, puff..... The Chinese questioned Geitner the other day and laughed at his immature and idiotic answer, and these were students. They see many moves by the administration of getting involved on our economy like this as a threat to their investments here, especially our treasuries that they hold, they feel and rightfully so that if this can happen to a secured bond holder of any company where the law is clear (the secured lenders get paid first), then it may happen to them. Now it is not just a question now of how much they will be paid back for their investments but if they are going to be paid back at all. This week our long term treasuries are on sale and it may be a case where they demand high interest rates to cover the risk.
The second impact has to do with the bankruptcy courts and laws themselves, does the administration have the right to step in with improperly secured funding and have they a right to circumvent any proper court procedures by being directly involved with a bankruptcy? I thought that the executive branch wasn't allowed to be involved in a court matter where they didn't have ownership, which is like GM, where they don't. This actually has an impact with the first issue, will a foreign investment now look elsewhere for an investment vehicle because of the uncertainty of our entire system? I think there will be a lot going out of the country because of this but no one will admit to it.
The third impact is who has faith in the companies now? I surely don't, I won't buy a GM product again and I won't any Fiat product in the future, simply because I don't believe in government run anything. The union is at fault for this as far as I'm concern by simply demanding and getting a share of the company. The proper thing would have been to nullify any union contract and pay back the lenders through the sale of the assets.
Oh and the fourth thing that will come out of this that is any good is Saturn will be made by a guy who is serious about the car business and I hope he does well enough to beat the new Fiat and GM in numbers.
I can't wait until Health Care comes to our country....
What this is, is just what the title of the thread is, a form of fascism. This system was used during the late 20's in Italy and in the mid and late 30's in Germany. It is not like the soviet union who just took the company over and ran it as part of the state, they didn't have private ownership like they did in Italy and Germany. What some of this started as is a basic control through administration, the Czar system. We have a car Czar and other Czars and even soon to be a wage Czar which is all fascism. They get their hands on the company, administer it and then the people who supported the system get some sort of rewards. In the case of the car companies, I have a strong feeling that some on Wall Street through the treasury department will make the real money and we will get screwed as usual.
Oh... side bar, you know when the banks and other people who got the trillion or so of our money pay all of this back, do you honestly think that it will go to pay the debt that was created to lend the money in the first place? NO WAY, they didn't put a payback clause in the TARP legislation.
I digress.....
What this decision impacts is really simple, the first thing the trust of our system is gone, puff..... The Chinese questioned Geitner the other day and laughed at his immature and idiotic answer, and these were students. They see many moves by the administration of getting involved on our economy like this as a threat to their investments here, especially our treasuries that they hold, they feel and rightfully so that if this can happen to a secured bond holder of any company where the law is clear (the secured lenders get paid first), then it may happen to them. Now it is not just a question now of how much they will be paid back for their investments but if they are going to be paid back at all. This week our long term treasuries are on sale and it may be a case where they demand high interest rates to cover the risk.
The second impact has to do with the bankruptcy courts and laws themselves, does the administration have the right to step in with improperly secured funding and have they a right to circumvent any proper court procedures by being directly involved with a bankruptcy? I thought that the executive branch wasn't allowed to be involved in a court matter where they didn't have ownership, which is like GM, where they don't. This actually has an impact with the first issue, will a foreign investment now look elsewhere for an investment vehicle because of the uncertainty of our entire system? I think there will be a lot going out of the country because of this but no one will admit to it.
The third impact is who has faith in the companies now? I surely don't, I won't buy a GM product again and I won't any Fiat product in the future, simply because I don't believe in government run anything. The union is at fault for this as far as I'm concern by simply demanding and getting a share of the company. The proper thing would have been to nullify any union contract and pay back the lenders through the sale of the assets.
Oh and the fourth thing that will come out of this that is any good is Saturn will be made by a guy who is serious about the car business and I hope he does well enough to beat the new Fiat and GM in numbers.
I can't wait until Health Care comes to our country....
