The bell has been tolling for our country for well over a decade now, but it takes a Democrat governor making the statement that ‘maybe we should suspend elections for two years’ to get folks to look up? Where have you folks been? What the hell are you watching on your flat screens? Haven’t you yet comprehended that most politicians do just about anything they want whether we like it or not? And then I have to sit and listen to all of the rationalizations that the republican base makes about candidates like tea party wannabes Romney, Perry, Cain, and Bachmann? AYFKM?
File this in the random-things-politicians-say file. Speaking to a Cary Rotary Club today, N.C. Gov. Bev Perdue suggested suspending Congressional elections for two years so that Congress can focus on economic recovery and not the next election.
“I think we ought to suspend, perhaps, elections for Congress for two years and just tell them we won’t hold it against them, whatever decisions they make, to just let them help this country recover. I really hope that someone can agree with me on that,” Perdue said. “You want people who don’t worry about the next election.”
Now this, in and of itself, is probably one of the worst statements I have heard in recent years after Pelosi’s ‘we have to pass the bill to find out what’s in it’ botox-induced stupidity, but if you believe that the country is heading toward dictatorship, we’re already there and have been for quite some time, what with executive orders, FISA, warrantless wiretapping, torture, indefinite detention with no charges, government law enforcement writing their own warrants, TSA groping children, forced immunizations at home, police brutality, etc., etc., etc., But the most televised yet under-reported Constitutional rape came in 2009 when GM bondholders were shafted and contract law, one of the cornerstones of the Constitution, was tossed aside for the unions by Obama’s auto taskforce. You may as well turn out the lights right now.
You didn’t / don’t hold General Motors (GM) stock, do you? If so, I hope you sell today, assuming it opens over 2 cents/share.
Seriously. No really, I’m not kidding.
In a filing with the SEC late yesterday afternoon it was disclosed that the GM “restructuring” would:
- Increase the number of authorized shares to 62 billion (!)
- Reduce the par value to one cent.
- Effect a 100:1 reverse split for the existing shareholders.
The effect of this as disclosed would be that the existing common shareholders would have their holdings reduced in value to one percentof their current market value.
So as of 4:00 Eastern Tuesday, your $1.85 stock price would be…. drum roll please….. $0.0185 per share
There is a lot of other material in this filing related to the restructuring of the debt. The exchange offers appear to have gone from 2/3rds reduction in the outstanding debt to a ninety percent reduction, effectively paying debtholders no more than a dime on the dollar.
Oh, and it gets better. If the “negotiation” is as was done with Chrysler, saying “no” won’t do you a damn bit of good – the government will, I would assume, threaten you and then file an involuntary Chapter 11 and attempt to cram this down your throat.
The UAW does not get hit for 90%. The VEBA will get 50% in cash and the other half in stock – newly issued stock – which, of course, is part of the 99% you won’t own when this “restructuring” is completed if you are a common stock holder as of last night. Their effective hit? Zero, assuming the share price does not collapse (again) when this is all said and done.
As time runs out for General Motors bond exchange, the carmaker’s bondholders receive new political support for their resistance to the offer, one they say is unfair.
Twenty House lawmakers sent a letter on Friday to Treasury Secretary Timothy Geithner, arguing that the Obama administration’s auto task force is unfairly favoring one class of unsecured creditors, the United Auto Workers union, over another, the bondholders.
The letter, which came from the office of Rep. Jeb Hensarling, Republican of Texas, accuses the Obama administration of trampling investors’ rights with its G.M. restructuring plan. “The government’s proposed reorganization of the company appears to subvert these rules to arrive at a politically motivated solution in the name of reviving the company,” the letter says. (Read it after the jump.)
Bondholders have argued that G.M.’s current plan, which would give them a 10 percent equity stake in the carmaker after it reorganizes itself, unfairly punishes them in favor of the U.A.W., which would get a 39 percent stake. Under the terms of an alternative proposal the G.M. bondholders have made, these investors — which include both big institutional investors and individuals — would get a 58 percent stake in the restructured company.
Both the bondholders and the U.A.W. are classified as unsecured creditors, since their debt isn’t backed by collateral.
The letter concludes: “Rather than blaming lenders or exercising favoritism to a political ally, this situation can be resolved in a manner that respects the rule of law and injects confidence and certainty into the markets that will help our economic recovery.”
Treatment of GM Bondholders is Wrong:
GM Bondholder Debra June, 6.1.2009:
Judge Napolitano: Some of the un-Constitutional actions by this president:
What Ever Happened to the Constitution? | Andrew Napolitano (8.9.2010)
Wake Up America; when the collapse comes, will you be ready?