Sunday, November 28, 2010

Buying Government Motors (GM) Stock

It is hard to imagine why anyone would buy reissued Government Motors (GM) stock when Socialist President Obama disregarded the rule of law to steal the company from its prior shareholders and bond holders, the legitimate owners, to give it the United Auto Workers Union. It should be no surprise why Obama would do this since he is owned, lock, stock and barrel by the unions, but the real surprise is why anyone would risk ownership in GM stock given Obama actions.

As taxpayers, we should be glad that a sucker is born everyday because it may mean that eventually the federal government will get back the $60 billion given to GM before they filed bankruptcy. However, betting on GM as an investment is no sure thing. The jury is still out whether GM will make it, especially since now it has auto union members on the Board that are likely to demand higher compensation and benefits as soon as the company show any glimmer of success. These union guys have killed the goose that laid the golden egg in the past. There is no reason to believe they won't do it again.

The bigger issue are the precedents that were established by Obama's take over of GM. First, the notion that any company is too big to fail ensures that inefficiencies, union demands and poor management are rewarded, which should never have happened. Second, the complete disregard of shareholder and bondholder rights that took place was particularly dangerous because the United States is supposed to be a country where the rule of law always prevails. Instead, this action was more like what is happening in Venezuela as Hugo Chavez takes over companies. This is common in banana republics; but not in the Unites States. Since GM filed bankruptcy anyway, this take over served no purpose, except the give away to the auto union. If Obama had not stepped in to bail out GM, normal bankruptcy procedures would have been managed by a court of law in accordance with the law rather than dictatorial directives.

It is a lie that millions of jobs would have been lost had GM simply filed bankruptcy. It is true that had normal bankruptcy taken place, GM could have abrogated its union contracts to get wages and pensions in line with their competition, which is the obvious reason that Obama implemented the bail out. This was really a bail of the Auto Workers Union not GM. A President that disregards the rule of law is a clear and present danger to our nation.

The GM Auto Workers Union Bail-Out is one more reason we must sweep these Socialists out of office in 2012 and 2014. Instead, we must elect Conservatives that support the rule of law, free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation. This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America.

Most important, the GM Bail-Out proves that we must elect Conservatives, who will adhere to the Constitution, as written by our Founding Fathers, not as contrived by the left wing media, Socialists in the last 97 years, former Presidents, Congresses, or the Courts. We must take back our country in 2012 and 2014 to preserve our freedom, our nation and way of life and for the sake of our children and grandchildren. We can do it. We must do it to prevent more GM Bail-Outs.

P.S. Watch to see if the Federal Reserve, or President Obama attempts to bail out bankrupt states like California, Illinois, or New York. All of these states may be deemed to big to fail. We have heard this story before.

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