“GM borrows $4 billion more, prepares for bankruptcy”
I KNOW I am not the only one that sees the absolute insanity of that headline. If any of us, or any small business owner was in the position of Chrysler or GM trying to get funding, our banks and creditors would be laughing so hard, they would need to change their undies as they were slamming the door on our behinds. Instead, the secured creditors are being kicked to the curb so that the Feds and the UAW can own both these automakers, and if any of you think “we the people” are every going to be paid back, think again. I, for one, stopped buying American made cars a long time ago due to GM’s inability to honor their warranty on the vehicle that I had bought brand new, and because I am one of the working poor that cannot afford to fix a POS every couple of months, (which is what has been going on with the Big 3 for years).
There are definitive reasons why companies go under, and my suggestion to all would be to only buy Ford, (if they get their heads screwed on straight and fly right), or foreign, and tell Chrysler and GM to go take a hike if the feds are going to continue to repay political favors with our children’s and grandchildren’s money, and prop up companies that make sh*tty products. The money to keep GM and Chrysler is not going to the secured creditors who are being asked to take a bigger loss than if the companies actually filed a real bankruptcy and their assets were sold off to repay those same creditors.
At what point are we going to do a Washington DC intervention and inform our government that they can go home because their services are no longer needed? (As always, the bold emphasis that follows is mine.)
GM borrows $4 billion more, prepares for bankruptcy
DETROIT (Reuters) – General Motors Corp on Friday borrowed another $4 billion from the U.S. Treasury and won a cost-cutting deal from Canadian auto workers as a showdown with bondholders set the stage for a bankruptcy filing by the end of the month.
The latest emergency funds extended by the Obama administration take the total government funding to keep GM afloat since the start of the year to $19.4 billion.
GM said it expected that total to rise to $27 billion after June 1, a government-imposed deadline for the embattled automaker to achieve a sweeping restructuring analysts say will require bankruptcy to complete.
The tentative agreement with the Canadian Auto Workers union, if ratified, would reduce hourly compensation costs by about 28 percent after including a round of concessions the union agreed to give in March.
A day earlier, GM won similar concessions from the United Auto Workers to reduce operating costs and pay the union in stock instead of cash to fund a retiree healthcare trust.
BONDHOLDERS NEXT IN LINE
GM faces a June 1 deadline to restructure its debt and operations and has said it could file for bankruptcy if it fails to get bondholders to agree to forgive some $24 billion — or 90 percent — of the amount they are owed.
Under Obama administration orders, GM has offered bondholders a 10 percent stake in a restructured company.
A spokesman for a committee representing GM bondholders said institutional investors solidly oppose that offer as insufficient.
“It’s been a universal no from the get-go,” said Nevin Reilly, a committee spokesman. “Bondholders are being seen as speculative bad guys; but bondholders are investors, many of whom put their retirement money into GM.
Critics argue that the Obama administration has favored the position of unionized auto workers and has run roughshod over claims from other creditors in the process.
Four Republican lawmakers sent a letter of protest to Treasury Secretary Timothy Geithner on Friday saying that the Obama administration was undermining GM bondholders in order to favor the UAW, a political ally.
“We are extremely concerned that in the name of restructuring General Motors, the presidential task force on the auto industry has begun waging what some believe amounts to a war on capital,” the letter said.
“Bondholders must have a seat at the table during negotiations in how the company would be restructured,” said the letter to Geithner from Representatives Jeb Hensarling, Eric Cantor, Mike Pence and Pete Sessions.
Austan Goolsbee, a member of the White House Council of Economic Advisers and the autos task force, said GM bondholders need to recognize that they must sacrifice.
Have any of you actually spent time watching and listening to Austan Goolsbee? Austan has a running “Today’s AYFKM? Award” for attempting to stand up straight and talk at the same time.
A ray of hope though comes from three Indiana Pension funds that are not rolling over when it comes to the Chrysler Sham, since of course, they are secured debt holders and were knocked from first in line by Bambi and the UAW. Let’s see how long the “rule of law” stands with this administration.
Pension Funds Object to Chrysler Sale, Want Trustee (Update3)
May 20 (Bloomberg) — A group of Indiana pension funds that hold first-lien debt of Chrysler LLC objected to a plan to auction the company’s assets and said a U.S. District Court judge should rule on whether the sale is lawful.
The Indiana State Teachers Retirement Fund, Indiana State Police Pension Trust and Indiana Major Move Construction filed court papers late yesterday and today asking U.S. Bankruptcy Judge Arthur Gonzalez in New York to block the sale, claiming the plan is illegal and tramples their rights. A hearing to approve the sale to a group led by Fiat SpA, or a bidder that tops its $2 billion offer, is scheduled for May 27.
Gonzalez denied a motion by the funds to stay the sale process while they seek a review by the U.S. District Court of whether the sale is proper. The funds’ attorney, Thomas Lauria, said after today’s hearing that the group already had filed papers with the district court.
The funds also have asked for the appointment of a trustee to run Chrysler, saying the company has “ceded control over their business and their restructuring efforts to the United States Treasury Department,” which is using the bankruptcy to reward certain creditors that “the government deems politically important,” according to one of the filings.
“The Treasury Department has taken constructive possession of Chrysler and is requiring it to adopt a sale plan in bankruptcy that violates the most fundamental principles of creditor rights,” lawyers for the pension plans wrote.
There is your pesky rule of law thang, but then again this is coming from the department that is being run by a tax dodger.
President Barack Obama criticized the Non-TARP lenders for refusing to accept an offer that would have paid them about 30 cents on the dollar, saying they forced the automaker’s bankruptcy. The Non-TARP group abandoned its fight to block Chrysler’s sale plan earlier this month, citing political pressure.
Well how very fascist of The One.
And in the “his lips are moving, he must be lying” segment, Bambi on Saturday morning did a C-Span interview where he said the following:
Obama “confident” GM can thrive after restructuring
WASHINGTON (Reuters) – U.S. President Barack Obama said in an interview released on Saturday he was confident General Motors would thrive after restructuring, but he made no mention whether the ailing automaker might have to enter bankruptcy to complete reorganization.
Obama, in an interview with the C-SPAN cable television network, said he wanted the government to get out of the auto business as soon as possible, and he said if some auto jobs never return, the government will work to ensure workers are effectively retrained.
“Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they’ve completed their restructuring,” Obama said.
The economy recovering will be when we all get a “dodge ball do-over”, or when the second coming actually arrives. But that being said, here are a couple of questions that come to mind…
First, how do “we” pull out of GM when the feds are going to be an owner, and secondly, if by some version of Godsmack, we are paid back, does that mean the UAW gets more of the pie?
Eight days ago I did something I have not done in months; I bought a bottle of wine and drank 3/4 of it in one evening in the hope that a little self-medication would relieve my angst. For 8 days, I have been suspended in that split second of motionless time when you see the train wreck about to occur and are trying to decide whether to watch in horror or turn away. That moment right before time catches up with itself and slams into “real time” and the horror unfolds. The only difference right now is that I do not know what the train is, just that something is coming, and that the usurper in charge is creating more and more instability in the world with his every word and action.
I have been watching the distract and deflect manuevers from the administration, reading the corporate owned newpapers, and digging for information on items that have been blacked out; i.e. David Kellerman, Mark I. Levy, and the swine flu infected pigs in Canada. Yet what we are being fed is the lies about the torture photographs, the lies about Pelosi’s knowledge or lack thereof concerning waterboarding, the Federal Reserve pleading stupid while ‘losing’ $9 Trillion dollars, and all I can think is “How Stupid Do They Think We Are?” The Fed didn’t lose $9 Trillion, they just don’t want to tell anybody where it went; it was Bambi’s idea to release the photographs in the first place, and Nazi Nancy knew about everything because ‘she is what she is’. Meanwhile, TurboTax Cheating Timmie and Bambi are flying the following fascist b*llsh*t right under the radar, and everybody wants to keep calling Barack Obama a socialist, when I believe he is a fascist who thinks he is something of a cross between Hitler and the Ottoman Empire. Read the following excerpt and remember that it gets even better after this. Can anybody identify the traitors to the United States?
U.S. Eyes Bank Pay Overhaul
Administration in Early Talks on Ways to Curb Compensation Across Finance
WASHINGTON — The Obama administration has begun serious talks about how it can change compensation practices across the financial-services industry, including at companies that did not receive federal bailout money, according to people familiar with the matter.
The initiative, which is in its early stages, is part of an ambitious and likely controversial effort to broadly address the way financial companies pay employees and executives, including an attempt to more closely align pay with long-term performance.
Administration and regulatory officials are looking at various options, including using the Federal Reserve’s supervisory powers, the power of the Securities and Exchange Commission and moral suasion. Officials are also looking at what could be done legislatively.
Among ideas being discussed are Fed rules that would curb banks’ ability to pay employees in a way that would threaten the “safety and soundness” of the bank — such as paying loan officers for the volume of business they do, not the quality. The administration is also discussing issuing “best practices” to guide firms in structuring pay.
At the same time, House Financial Services Committee Chairman Barney Frank (D., Mass.) is working on legislation that could strengthen the government’s ability both to monitor compensation and to curb incentives that threaten a company’s viability or pose a systemic risk to the economy.
It is unclear how such a bill would fit with what the Fed and others are already considering. But any legislation passed would make it harder for policy makers to dial back limits once the financial crisis subsides.
Any new compensation rules would likely be rolled out alongside a broader revamp of financial-markets regulation that the Treasury is pushing. The compensation effort is the latest example of the government’s increasing focus on aspects of the financial sector that once were untouched.
Say one thing and do another:
Government officials said their effort, which is just beginning, isn’t aimed at setting pay or establishing detailed rules. “This is not going to be about capping compensation or micro-management,” said an administration official. “It will be about understanding what is the best way to align compensation with sound risk management and long-term value creation.”
President Barack Obama and Treasury Secretary Timothy Geithner have both blamed the way banks structured compensation plans for contributing to the financial mess. In February, Mr. Obama said executive pay helped lead to a “reckless culture and a quarter-by-quarter mentality that in turn helped to wreak havoc in our financial system.”
Mr. Geithner recently instructed his staff to begin discussions with the Fed, the SEC and others about ways to address compensation practices.
During a recent congressional hearing, Chairman Ben Bernanke said the Fed was working on rules that will “ask or tell banks to structure their compensation, not just at the very top level but down much further, in a way that is consistent with safety and soundness — which means that payments, bonuses and so on should be tied to performance and should not induce excessive risk.”
In an indication of how broad the effort may become, Federal Deposit Insurance Corp. Chairman Sheila Bair said regulators need to examine compensation practices in the mortgage industry, suggesting new limits could stretch beyond banks.
But Wait! There’s More!
Professor Roubini is not the only economist speaking the truth about the fall of the dollar as the world’s reserve currency. After this little blurb, you will see why our dollar is more than likely going to crash, and reduce the once great United States to a third world country that is controlled by the United Nations and the world globalists.
China’s yuan ‘set to usurp US dollar’ as world’s reserve currency
Professor Roubini, of New York University’s Stern business school, believes that while such a major change is some way off, the Chinese government is laying the ground for the yuan’s ascendance.
Known as “Dr Doom” for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st century because it has a large current account surplus, focused government and few of the economic worries the US faces.
In a column in the New York Times, Prof Roubini warns that with the proposal for a new international reserve currency via the International Monetary Fund, Beijing has already begun to take steps to usurp the greenback.
China will soon want to see the yuan included in the International Monetary Fund’s special drawing rights “basket”, he warns, as well as seeing it “used as a means of payment in bilateral trade.”
From the dipshit-in-charge, and the person who will forever be etched in my mind as the perennial winner of the ‘Today’s Are You Freakin’ Kidding Me? Award’, his holiness, Barack Obama.
Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ (Update2)
May 14 (Bloomberg) — President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.
“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”
Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Two weeks ago, the president proposed $17 billion in budget cuts, with plans to eliminate or reduce 121 federal programs. Republicans ridiculed the amount, saying that it represented one-half of 1 percent of the entire budget. They noted that Obama is seeking an $81 billion increase in other spending.
This is $17 Billion in cuts after some $12 Trillion in spending. What few realize is that the U.S. is $1.24 QUADRILLION in debt when the Social Security balloon is added into the equation, yet this frakkin’ idiot and the brain dead congress are spending with no concern for us or future generations because it appears they definitely know something we don’t.
In his New Mexico appearance, the president pledged to work with Congress to shore up entitlement programs such as Social Security and Medicare. He also said he was confident that the House and Senate would pass health-care overhaul bills by August.
“Most of what is driving us into debt is health care, so we have to drive down costs,” he said.
NO! What is driving us into debt is the ponzi scheme of Social Security and BARACK OBAMA’S ADMINISTRATION AND DEMOCRAT DRIVEN CONGRESS who have now been empowered after 100 years of bad decisions and unconstitutional laws and mandates being passed by frakkin’ socialists. The Founding Fathers are way past turning in their graves now.
“We’ve got a long way to go before we put this recession behind us,” Obama said. “But we do know that the gears of our economy, our economic engine, are slowly beginning to turn.”
If that were true, Chrysler and GM would not be the situation they are in, credit would not still be frozen after the TARP money was dispersed, (the banks are waiting for the commercial real estate bubble to pop), and we would NOT be reading these headlines:
Citigroup Issues $2 Billion in Bonds Without a Safety Net
J.P. Morgan Sells $1 Billion Bond Deal
Treasurys Slide on Profit-Taking
Fitch warns on possible bank downgrades
BOSTON (MarketWatch) — Fitch Ratings on Friday gave the markets notice that it may issue wholesale ratings downgrades on the U.S. banking sector if credit conditions and the economy continue to worsen.
Bank of England’s Dangerous Game
Given all that information in one little string of facts over marketing, here is something everybody should be thinking about and considering; do you believe there are late night meetings at the WH that are attended by David Axelrod, Rahm Emanuel, and Michelle Obama while his holiness sleeps? Would this not explain:
- His absolute need for a cheat-sheet called a teleprompter, and
- His inability to make a decision and stick with it because it wasn’t his idea to begin with?
How far off do you think I am? Now excuse me, I have a train wreck to watch…
This post is creating quite a stir among patriots and obots alike, so if the site is slow – deal. I still have not been able to reach anyone at S&W to confirm or deny any of what was posted on JumpingInPools as “satire”. I wanted to be thorough, (and my readers know I am that), and check and make sure it was just satire, BUT THE WHOLE POINT OF THE POST was NOT Smith & Wesson, BUT Cerberus and Remington and what would happen if the government takes control of Cerberus or their holdings, (including gun manufacturers), because Cerberus received TARP MONEY…just like the banks…is any of this ringing anybody’s bell?
…end update…go about your business….
There is another rumor floating around the internet right now and I have calls and emails into Smith & Wesson to get the real story. I was going to wait until I was actually able to confirm this story one way or another, but ended up going down a completely different path while investigating, and felt that the information revealed required immediate dispersal to the roundtable. I will let you know as soon as I get more information about the rumor. In the meantime, some of you may already know about the second part of this post; most will not.
Here is the rumor…
From Jumping In Pools:
Gov’t Attempting to Seize Smith & Wesson
Seemingly in line with other corporate seizures, the United States government appears to be attempting to gain a majority stake in prominent firearms company Smith & Wesson.
Smith & Wesson, one of the oldest weapons company in the United States, is currently on sound economic footing. However, a clause in the 2009 Stimulus Bill calls for the federal government to seize industries and companies that are essential to the economy or ‘government function.’
The Treasury Department contacted the company in March 2009, asking to buy shares at $10 above market price. However, this offer was sharply rebuffed. Similar offers have been made to Remington.
After this rejection, the Treasury Department has declared that it will use mechanisms in the Stimulus Bill in order to override the corporate decision. Smith & Wesson’s board of executives have also been informed that this decision by the Treasury Department could not be appealed to any superior court.
Which brings us to the very interesting part of this story while I wait for confirmation from Smith & Wesson.
“Similar offers have been made to Remington.”
That statement is very interesting since Cerberus owns Remington and bought the gun manufacturer on April 5, 2007. Who is Cerberus you ask, and what else do they own?
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by 49-year-old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.
Founded in 1992, Cerberus is named for the mythological three-headed dog that guarded the gates of Hades. Feinberg has stated to his employees that while the Cerberus name seemed like a good idea at the time, he later regretted naming the company after the mythological dog.
The company has been a very active acquirer of businesses over the past several years and now has sizable investments in automotive, sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. In 2006, its holdings amounted to $24 billion.
On October 19, 2006, John W. Snow, President George W. Bush‘s second United States Secretary of the Treasury, was named chairman of Cerberus.
J. Ezra Merkin is a partner in Cerberus. Merkin invested his funds into Cerberus and its portfolio companies. His Gabriel fund invested $79 million in Chrysler, $66 million in GMAC and $67 million in Cerberus partnerships, according to year-end statements. The Gabriel Fund was a feeder fund for Bernard L. Madoff Investment Securities LLC.
Japanese bank, Aozora, a Cerberus company lost $137 million to Bernard L. Madoff Investment Securities LLC. Aozora was part of the investment group that acquired 51 percent of GMAC from General Motors. 
In 2007, Cerberus and about 100 other investors purchased an 80% stake in Chrysler for $7.4 billion, promising to bolster the auto maker’s performance by operating as an independent company. In 2008, the plan collapsed due to an unprecedented slowdown in the U.S. auto industry and a lack of capital. In response to questioning at a hearing before the House committee on December 5, 2008 by Rep. Ginny Brown-Waite, Chrysler President and CEO Robert Nardelli said that Cerberus’ fiduciary obligations to its other investors and investments prohibited it from injecting capital.
On March 30, 2009, it was announced that Cerberus Capital Management will lose its equity stake and ownership in Chrysler as a condition of the Treasury Department’s bailout deal, but Cerberus will maintain a controlling stake in Chrysler’s financing arm, Chrysler Financial. Cerberus will utilize the first $2 billion in proceeds from its Chrysler Financial holding to backstop a $4 billion December 2008 Treasury Department loan given to Chrysler. In exchange for obtaining that loan, it promised many concessions including surrendering equity, foregoing profits, and giving up board seats:
“In order to achieve that goal Cerberus has advised the Treasury that it would contribute its equity in Chrysler automotive to labor and creditors as currency to facilitate the accommodations necessary to affect [sic] the restructuring.”
Chrysler Financial refused to take $750 million in TARP government bailout aid because executives didn’t want to abide by executive-pay limits, and because the firm doesn’t necessarily need the money.
On April 30, 2009, Chrysler declared bankruptcy protection and announced that GMAC will become the financing source for new wholesale and retail Chrysler cars.
Cerberus acquired 51 percent of GMAC, General Motors‘ finance arm, in 2006 for $7.4 billion. It appointed Merkin as nonexecutive Chairman.
As of October 15, 2008, GMAC had $173 billion of debt against $140 billion of income-producing assets (loans and leases), some which are almost worthless, in addition to GMAC Bank’s $17 billion in deposits (a liability). Even if GMAC liquidated the loans and leases, it could not pay back all of its debt.
On December 10, 2008, GMAC said, “GMAC LLC, the auto and home lender seeking federal aid, hasn’t obtained enough capital to become a bank holding company and may abandon the effort, casting new doubt on the firm’s ability to survive. A $38 billion debt exchange by GMAC and its Residential Capital LLC mortgage unit to reduce the company’s outstanding debt and raise capital hasn’t attracted enough participation.” This was due in part because Cerberus had raised the credit requirements for car loans so high, virtually eliminating leasing, that they have been responsible for a sizable chunk of lost sales at GM due to customers inability to secure financing, in order to pressure GM into selling or trading their remaining stake in GMAC. GM stands to write-off over a billion dollars in lost residuals – which they paid up front to GMAC. GMAC’s exposure to the gap in residual values is around $3.5 billion.
In December 2008, Cerberus subsequently informed GMAC’s bondholders that the financial services company may have to file for bankruptcy if a bond-exchange plan is not approved. The company had previously said it may fail in its quest to become a bank holding company because it lacks adequate capital.
In January 2009, Merkin resigned from his chairmanship as a condition by the U.S. government. Five days earlier, the Federal Reserve granted GMAC bank holding company status, so it could get access to the bailout money. On December 29, 2008, the U.S. Treasury gave GMAC $5 billion from its $700 billion Troubled Asset Relief Program (TARP).
Cerberus’s investments in Chrysler and GMAC totaled about 7 percent of its assets under management.
Broken deal for United Rentals
In the summer of 2007, Cerberus agreed to buy 100% of United Rentals, the world’s largest equipment rental company and traded on the NYSE. After the credit markets began to tighten in August, Cerberus attempted to reduce the deal price. United Rentals refused to reprice the deal, and in November sued in the Delaware Court of Chancery for specific performance (i.e., a court mandate that Cerberus complete the deal). Cerberus took the position that the deal agreements capped its liability for walking away from the deal at $100 million. After a two-day trial, Delaware Chancellor William B. Chandler, III ruled for Cerberus in a closely watched decision, allowing it to pay United Rentals the agreed-upon $100 million “reverse termination fee” and terminate the merger agreement.
- Pharmaceuticals – In December 2004, the company announced the acquisition of Bayer‘s plasma products business and renamed it Talecris Biotherapeutics.
- Real Estate – Through investment affiliate Cerberus Real Estate, the company has been making direct equity, mezzanine, first mortgage, distressed and special situation investments in all asset types. It also controls Miami Beach-based LNR Property, a large real estate development and investment firm through subsidiary Riley Property. Cerberus also controls Kyo-ya, a Japan based group of entities that owns several Starwood managed assets in California, Hawaii and Florida.
- Retail – Cerberus purchased 655 of the 2,500 Albertson’s, Inc., grocery stores, forming Albertsons LLC of Boise, Idaho, in June 2006. They also had an ownership stake in the now-bankrupt Mervyn’s department stores, which was acquired from Target Corp. In June 2007, Cerberus acquired Torex Retail Plc., a retail solutions provider in troubled waters, for approximately 400 million US dollars.
- Financial Services – General Motors sold a 51% stake in its GMAC finance unit to an investor group led by Cerberus Capital Management in November 2006. GM expected to receive $14 billion over the next three years from the sale of General Motors Acceptance Corp. In December 2006, Cerberus acquired the Austrian bank BAWAG P.S.K. for a reported EUR3.2 billion. In August 2007, Cerberus announced that it was closing one of their mortgage companies, Aegis Mortgage. It owns half of a 9.9 % share (5%) with the Gabriel Group in Bank Leumi, purchased in 2005, but as of April 19, 2009, it was decided to sell in order to boost capital.
- In 2007 Cerberus took over Corvest a promotional products company based out of Largo, FL with arms based in Simi Vally, Ca & Thorfare, NJ.
Life RemingtonArms Division CerberusCapital Division DuPontCo DuPontCo Owner USWarInd Client PryorSF Officer RockefellerPA Director
Here is the link to the list of executives of Cerberus Capital. Take a moment, go over, and click on the links to each executive and see how they are connected to other interesting businesses.
I also ran across this interesting tidbit from the New York Observer:
Cerberus Capital Management: You Cannot Be Serious
For reasons that defy both logic and recent history, Cerberus Capital Management, a New York–based private equity firm, has purchased a controlling interest in Chrysler for nothing, while taking the German automaker Daimler off the hook for almost $20 billion in pensions and health-care benefits. The sale comes about nine years after Daimler bought Chrysler for $36 billion in hopes of restoring the company to its former glory. (The biggest joke of all is that Kirk Kerkorian, Chrysler’s then-biggest shareholder, thought Chrysler had made a bad deal, and went on to sue DaimlerChrysler. Now he’s taking a big stake in General Motors—maybe a good short sale.)
This latest sale—if you can call it that—is being hailed as a milestone in the storied history of American automaking. Chrysler, once an icon of mid-century American economic power, will become the first privately owned U.S. car company. The question for Chrysler’s new owners is simple: Why do they think they can rescue the company when Daimler, one of the world’s smartest automakers, clearly could not?
This is not just a question about Chrysler’s future; it’s a question about the entire U.S. auto industry. Chrysler was in bad shape when Daimler bought it, and has only gone south since. Meanwhile, it seems only a matter of time before the Ford Motor Company goes broke, thanks in part to William Clay Ford Jr., the great-grandson of Henry Ford, and his family counterparts, who have managed to fritter away their ancestor’s legacy.
If you are still interested in a thorough bio of Steve Feinberg and Cerberus after all that, go here. I found it fascinating and more names that we have heard over and over before came up.
So I guess the question would be, “what does Cerberus know that we don’t know when it comes to Chrysler and Remington?” Hopefully, I will have some sort of confirmation on the Smith and Wesson rumor soon. Please keep in mind that if Texas passes their firearms freedom act, there will be ground-floor investment opportunities for the brand new gun companies springing up in Montana, Texas, and any other state that wants to shelter them from the feds and big business.