Randy May Family in Hillsboro Oregon

November 9, 2012

Obama Spin Doctor on Bail Out

Filed under: Automotive,Chrysler,Dodge,Fiat,Politics — rmay4 @ 1:01 am
Tags: , , , , ,

I am not saying the bail out was wrong. There was definitely some good to be realized but at least be honest and do not politicize it. Bush was going to do it as well. The handling is Chrysler’s bail out went much better than Government Motors!!!

Obama finding what’s good for GM not so good for taxpayers Keith Naughton and Mark Clothier Automotive News | November 8, 2012 – 12:20 pm EST

DETROIT (Bloomberg) — The General Motors bailout played an important role in the re-election of President Barack Obama, who stumped on the issue in Midwestern swing states.

Now comes the hard part: unloading the government’s stake, probably at a big loss.

GM received $51 billion from the U.S. Treasury in 2009. Taxpayers have recouped $24 billion and still own 32 percent of the company. The problem is that GM shares are trading at less than half the price the government said it needs to break even.

Selling the shares was politically precarious before the election because that would have locked in a loss — $14 billion at yesterday’s closing price. Now that the election is over, cutting the stake could be good for GM’s image and its stock.

The question is how and when. With GM suffering as much as $1.8 billion in losses in Europe this year and Chinese economic growth slowing while the U.S. accelerates gradually, prospects are dim for a doubled stock price.

“They can’t wait for the shares to turn a profit because they know it’s not going to happen,” Phillip Swagel, assistant Treasury secretary for economic policy under President George W. Bush, said in an interview. “They will wait a reasonable time period after the election, as people focus on the fiscal cliff and tax reform. Then they’ll start to sell off the shares.”

Obama is unlikely to sell all 500 million shares at one time, as Republican candidate Mitt Romney had suggested he might, Swagel said. That will reassure investors concerned that GM’s largest shareholder would batter the stock with a share dump.

Likely seller

“You have one shareholder who is a likely seller and owns a third of the stock,” said Matthew Stover, an auto analyst with Guggenheim Securities in Boston. “Investors see that and think, ‘Look out below!”‘

Rather, Treasury will probably engage in a measured sell-down over time, much like it has in exiting ownership in banks and insurer American International Group Inc., which received taxpayer rescues from the Troubled Asset Relief Program that also funded GM’s bailout.

GM’s $51 billion was part of the government’s $79.7 billion 2009 rescue of GM, Chrysler Group LLC and lender Ally Financial Inc.

“Treasury has done a very good job of disposing of shares of TARP banks and that provides a pretty good road map,” said Swagel, now a professor of economics at the University of Maryland School of Public Policy. “Treasury has taken some losses on the TARP shares on individual banks. But they said the best thing for us to do is to sell these off and get the banks back into fully private hands.”

‘Own Timetable’

GM spokesman Jim Cain declined to speculate on the government’s plans.

“Nothing has changed from our perspective,” Cain said. “Treasury will act on its own timetable.”

Timothy Massad, the Treasury Department’s assistant secretary for financial stability, said in an e-mailed statement: “Going forward, as with all our investments, we’ll continue to balance exiting as soon practicable and maximizing value for taxpayers.”

GM has the liquidity it needs to buy back government shares after securing an $11 billion revolving credit line on Nov. 5, Brian Johnson, a Chicago-based analyst with Barclays Plc, wrote in a note that day. If Obama were to announce an AIG-style wind-down of the government stake in GM, it could help both sides, Johnson said.

‘Government Motors’

“Announcement of a sell-down plan, combined with a coordinated share-repurchase plan by GM could actually boost the stock,” Johnson wrote. “Announcement of such a plan would help the Treasury’s cause, as the stock could see a boost from investors appreciating the signal that the Treasury overhang is coming to an end.”

If GM were to buy back 40 percent of Treasury’s holdings for as much as $5.6 billion, that would add 12 percent to the value of the remaining shares, according to Johnson.

The “Government Motors” tag that dogged GM throughout the presidential campaign is depressing its share price and has hamstrung the company, said Jim Kee, president of South Texas Money Management in San Antonio, which bought 500,000 GM shares in February, expecting a 30 percent to 50 percent gain as the economy recovers.

“GM has still got the dead weight of government involvement limiting their flexibility,” Kee said.

Half step

Even chopping the government’s ownership stake in half might move the share price up, Stover said.

“If they get it to 15 percent or below, I think people will stop talking about it as much,” Stover said. “One of the reasons the stock price has come up recently is people are looking at it and saying, ‘Europe is bottoming and it looks like the U.S. Treasury is going to do something.”‘

Obama may want to wait to start selling until the Detroit auto show in January, when GM plans to display a redesigned version of the Chevrolet Silverado pickup, its top-selling model. That news could move shares in the direction of GM’s November 2010 initial public offering price of $33.

GM shares closed at $25.03 on Wednesday.

“Housing data points continue to improve and pickup demand is increasing,” said Peter Nesvold, an analyst with Jefferies & Co. “GM has brand new product in that category for the first time in five years and the appetite for shares is actually pretty strong.”

Strong Fort

Other than its European losses, the news on GM is mostly good. The new revolving line gives the automaker $43 billion in gross liquidity, strengthening what CEO Dan Akerson calls “our fortress balance sheet.”

GM’s third-quarter earnings last week beat estimates by 55 percent and automotive profit excluding Europe rose 4.3 percent to $2.63 billion, before interest and taxes, as it commanded higher prices for its models and expanded in emerging markets in Asia and South America.

“As we’ve said before, we believe the company’s made real progress, but we don’t think that the market has given the company as much credit as it might,” said the Treasury Department’s Massad.

Frank Brosens, a founder of Taconic Capital Advisors, agrees.

“This stock still trades like the old GM,” Brosens said Wednesday at the “Invest for Kids” conference in Chicago to benefit youth charities. “The stock can triple from here.”

Brosens said the government “would like nothing better” than to get out of GM stock. Taconic owns 9.03 million shares, according to data compiled by Bloomberg. Brosens said he expects the government will sell its stake in the next six months to a year. GM may buy 200 million to 300 million shares from the government, he said.

Million jobs

To Obama, the most important outcome of the bailout is that GM and Chrysler are healthy and hiring. Without government assistance, “we would have lost a million jobs,” the president said in the Oct. 16 presidential debate at Hofstra University in Hempstead, N.Y.

The controversy of using taxpayer dollars to save individual companies is unlikely to ever go away, said Swagel, who helped start the auto bailout as part of the Bush administration. Eliminating government ownership of GM, though, will go a long way toward closing the book on that intervention, he said.

“The administration has spun the bailout into a success story, so they’re not going to suddenly admit, ‘oh, no, now we’ve lost money,”‘ said Swagel, who contends labor unions received preferential treatment in GM’s bankruptcy. “Everyone understands they’ve lost money, but, in their mind, they’ve saved all these jobs.”

President Obama, pictured driving a Chevy Volt during a June 2010 event in Detroit, is unlikely to tell the U.S. Treasury to sell all 500 million GM shares at one time, experts say.

Photo credit: Reuters   PRINTED FROM: http://www.autonews.com/apps/pbcs.dll/article?AID=/20121108/OEM/121109875&template=printart

——————————————————————————– Entire contents:2012 Crain Communications, Inc. ——————————————————————————–

January 27, 2009

What does Thanksgiving Really Teach us?

I grew up an abused member of a horrible family that believed in hard work, personal responsibility, sharing and self sacrifice, and… O.K., it was not that bad. I remember when I joined the Navy my first promotion came mainly just becuase I would work without being micro managed. I did not realize it was that unique. Later in life I was to hire and train someone to replace me while I moved up into a management position. I thought it would be easy. It was not. We now have a job that was one persons split between 4 differnet people becuase no one person would just step up and own it and make a go of it. It has taken me halk a life time to realize that common hard work is not so common. I recently read this post and remembered my Grandpa, he is fianlly on vacation. He loved to quote “him that does not work, let him also not eat”. He meant it too!!!

Also found (here) and (here)

(SOURCE)

The Pilgrims’ Real Thanksgiving Lesson
November 25, 2008
Benjamin Powell
Alexandria Daily Town Talk, Advocate-Messenger, Hillsdale Daily News, Current-Argus

Feast and football. That’s what many of us think about at Thanksgiving. Most people identify the origin of the holiday with the Pilgrims’ first bountiful harvest. But few understand how the Pilgrims actually solved their chronic food shortages.

Many people believe that after suffering through a severe winter, the Pilgrims’ food shortages were resolved the following spring when the Native Americans taught them to plant corn and a Thanksgiving celebration resulted. In fact, the pilgrims continued to face chronic food shortages for three years until the harvest of 1623. Bad weather or lack of farming knowledge did not cause the pilgrims’ shortages. Bad economic incentives did.

In 1620 Plymouth Plantation was founded with a system of communal property rights. Food and supplies were held in common and then distributed based on equality and need as determined by Plantation officials. People received the same rations whether or not they contributed to producing the food, and residents were forbidden from producing their own food. Governor William Bradford, in his 1647 history, Of Plymouth Plantation, wrote that this system was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. The problem was that young men, that were most able and fit for labour, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. Because of the poor incentives, little food was produced.

Faced with potential starvation in the spring of 1623, the colony decided to implement a new economic system. Every family was assigned a private parcel of land. They could then keep all they grew for themselves, but now they alone were responsible for feeding themselves. While not a complete private property system, the move away from communal ownership had dramatic results.

This change, Bradford wrote, had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been. Giving people economic incentives changed their behavior. Once the new system of property rights was in place, the women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability.

Once the Pilgrims in the Plymouth Plantation abandoned their communal economic system and adopted one with greater individual property rights, they never again faced the starvation and food shortages of the first three years. It was only after allowing greater property rights that they could feast without worrying that famine was just around the corner.

We are direct beneficiaries of the economics lesson the pilgrims learned in 1623. Today we have a much better developed and well-defined set of property rights. Our economic system offers incentives for us-in the form of prices and profits-to coordinate our individual behavior for the mutual benefit of all; even those we may not personally know.

It is customary in many families to give thanks to the hands that prepared this feast during the Thanksgiving dinner blessing. Perhaps we should also be thankful for the millions of other hands that helped get the dinner to the table: the grocer who sold us the turkey, the truck driver who delivered it to the store, and the farmer who raised it all contributed to our Thanksgiving dinner because our economic system rewards them. That’s the real lesson of Thanksgiving. The economic incentives provided by private competitive markets where people are left free to make their own choices make bountiful feasts possible.

December 11, 2008

Glen Ford and Words to Live and Vote By

What a time for our country to take note of Glen Ford’s way of thinking. We can lose ourselves in the process of trying to make everyone like us. Let’s be who we should be and the “right” people will like us. You can judge a man’s (or a country’s) character by their enemies as well as their friends.

“Let’s never forget that to remain free we must always be strong. That’s an important lesson I learned in my Navy career in World War II. National defense must be the top priority for our country. If you are strong, you are safe. Now is the time for every American to be proud. This is the land of the free and the home of the brave. If we are not brave, we will not be free.”

Glenn Ford, 2004

Source:

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Friday, Sept. 1, 2006 3:45 p.m. EDT

The Real Glenn Ford Story

This article was written by NewsMax.com columnist and contributor Phil Brennan, a proud Marine.

When Glenn Ford died Thursday morning at the age of 90, major media recalled his long Hollywood career, recalling the 106 films in which he appeared, his many marriages and romances. Wrote the Associated Press, “He was a star to the end of his career.”

Glenn Ford was far more than that, yet none of the obituaries bothered to mention his extraordinary patriotism or his distinguished military career. Ford rose to the rank of Captain in the United States Navy after years of dedicated service that began with World War II and continued through the Vietnam War.

He was undoubtedly a star, one of Hollywood’s enduring major stars, but as his biography on a Web site devoted to his long life states, his accomplishments were even larger than life off-screen. As his son Peter once told NewsMax.com, Ford was “one of those Ronald Reagan, true-blue American types.”

At the beginning of World War II Glenn served in the Coast Guard Auxiliary. In 1942 he enlisted in the United States Marine Corps. As a Marine he helped build safe houses in occupied France for those hiding from the Nazis and was among the first Americans to enter the infamous Dachau concentration camp at war’s end. He went on to serve in the Navy and at war’s end he was commissioned a Commander in the Naval Reserves.

Story Continues Below

Committed to service in the armed forces, Ford also served two tours of duty in Vietnam with the Third Marine Amphibious Force in 1966-1968. He once went on a jungle mission with a Special Forces Team during the Vietnam War. Ford was the only actor to have served with both the Green Berets and the French Foreign Legion and his military record is well recognized in both the United States and France as a highly decorated veteran.

Among his numerous medals and commendations are the Medal of Honor presented by the Veterans of Foreign Wars; the Medaille de la France Libre for the liberation of France; two commendation medals from the U.S. Navy; and the Vietnamese Legion of Merit. He received the rank of Captain with the U.S. Naval Reserves in 1968; retiring in 1977.

Ford bravely served his country in two wars (not on the sidelines, but in the front lines) facing enemy fire on many occasions and never expecting to be treated like a Hollywood star but as a fellow fighting man. He was indeed a hero both on and off the screen.

That’s the way Glenn Ford would want to be remembered.

Two years ago he told NewsMax.com, “Let’s never forget that to remain free we must always be strong. That’s an important lesson I learned in my Navy career in World War II. National defense must be the top priority for our country. If you are strong, you are safe. Now is the time for every American to be proud. This is the land of the free and the home of the brave. If we are not brave, we will not be free.”

Glenn Ford lived the motto of the Marine Corps, Semper Fidelis -He was always faithful to the nation he served so long and so well.

Semper Fi, Glenn

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