Bait-and-Switch Obviousness Shock: GM's Payoff

NakedShorts’ Obviousness Rule rule states that, even if things are obvious, they are not officially true until some official writes for, or talks to, an official news organization to tell everybody something that everybody already knows, but doesn’t dare say.

So, the payoff for two generations of indescribably incompetent management, with a salving back-hander for Stephen Feinberg & His Three-Headed Friend. 

The US Department of Energy is working to release $5 billion in loans to General Motors Corp (GM), according to a person familiar with the matter, a move that could help ease the way for the auto maker's discussed merger with Chrysler LLC...

...The $5 billion would come from the pool of $25 billion in low-interest loans...aimed at helping Detroit retool plants to meet new fuel-efficiency standards. [Emphasis added]

Stunning. Especially since, under the calm and steady hand of Treasury secretary Hank Paulson, the Emergency Economic Stabilization Act of 2008 has already morphed from “getting money to banks so they can start lending” to “getting money to banks so they can start buying each other, thereby generating untold billions in investment banking fees for the Friends of Hank.”

In a related development, Weapons of Mass Destruction have not been found in Iraq.

US may give GM billions in loans

by Deborah Solomon and Stephen Power

The Wall Street Journal Oct. 28 2008

Comments

[LAD:]

GM, F and Chrysler were getting what they deserved - bankruptcy for absolutely horrid product quality and totally incompetent management.

Why my elected officials are allowing my tax money to help these guys, I can't imagine. I am totally discussed with the government of this country and agree with Michelle Obama that pride in this country is extremely difficult these days. Bush and his people should be hung for treason against the American people.

2008 Oct 28 02:44 PM

[Joe Friday:]

hard not to be cynical when their is such obvious deceit from our elected officials. I totally agree with the premise of your article. The 25B loan program was designed to help the automakers retool to make energy efficient cars, not to bail them out. Using those funds that have been set aside for the purpose of a bailout it stunning in its deceit.

Paulson should be ashamed of himself, if he does indeed sink to this level of dishonesty.

2008 Oct 28 05:27 PM

[nmelendez:]

I hope all those Baby Boomers in Florida are happy with the future prospects of their investments after voting Bush back in 2004. Hell i'll just go wave a US Flag in front of a whole bunch of senile old boomers, recite the constitution and collect 100 bucks for my patriotism from the fools. Talk about gullible people. The funny thing is Republicans mess everything up and Democrats have to come in to fix it. Personally, i hope Obama really messes it up so then they'll vote in another Republican in 2012 and REALLY break your wallets. Me, i'm of to Costa Rica in 5 years.

2008 Oct 28 09:52 PM

[nmelendez:]

Vote McCain!!! 4 more years of Bush Policy!!!! C'mon people we want patriots who rip you off in the white house. Who cares if you now have no pensions and your 401K is broke. So what if we privatize Social Security, you're useless after you retire. Hey go Republican and join the almost extinct US middle class. Hell you get a Tax break, you won't have to pay taxes if you're unemployed. Get rid of medicare and medicaid, don't need or want sick people costing us money. Go Republican!!!

2008 Oct 28 09:58 PM

[shrap:]

Somebody screwed things up big time. Who took everything they could ? Sucked the system dry. High wages. Low taxes. A nice health care package. A good retirement plan. Sure, they might be spread too thick in funds, and are seeing declines but this is only temporary friends.

Crying for the poor retirees COME ON !!! Blaming the republicans or the democrats !?!!! GIVE ME A !@#$%? BREAK MAN !!!

If we should blame one thing its greed. A whole generation of greedy Boomers. Greedy politicians, greedy wall street types, greedy bankers, greedy CEO's, greedy unions, greedy workers, greedy Joe the Plummer's. Greedy everyone. Shame on you. Shame on me.

And our generationS will be left in a nasty, polluted wasteland of lower wages, higher taxes, no health care and a nice self funded pension.

Got beef because of that you little X'ers and Y'ers ?

Call 1-800-JoB-India and they we politely tell you they can't help you but have a nice day anyway.

Who are we to complain ? We have I-phones and credit cards right !

The Boomers had their free lunch and we will pay they bill.

We will even pay the buffet at their funeral.

2008 Oct 29 08:24 AM

[Paul Killinger:]

So you guys have learned that money's FUNGIBLE, and the automakers are using their fuel efficiency "loans" to fund everything but. Meanwhile, they're introducing new Hummer and SUV models, or as Yogi Berra would say, "Deja vu all over again." Congratulations, you figured it out!

2008 Oct 29 09:48 AM

[as:]

To Ronh -- The days of people being ashamed of their actions is long gone my friend. All they care about is their bank accounts. They have perfected the art of looking and speaking like they care. I hope the millions of people who have contributed to Obama hold his feet to the fire if he does not keep his promises once he gets elected. Someone needs to organize them into a potent force in American politics. It could be the greatest force in politics the world has seem if we can organize. It could even make for a strong third party if the democrats play 'politics as usual'

2008 Oct 29 10:32 AM

[2222:]

I have to say that I disagree with many of you. We have only ourselves to blame for the mess we are in as a nation. We buy the lowest cost product no matter the consequences. GM is building great, relevant products. They have segment leading fuel economy. Malibu quality per JD Power is better than Camry AND Accord. Per Consumer reports GM has 3 of the top 7 Hybrid vehicles on the road today based on return on investment. They have the Volt coming in 18 months and their Equinox Fuel Cell vehicle is a sensational, zero emission vehicle being road tested today. Check out the UTube videos from real driver experiences.

We as a nation need to support the home team before it’s too late. Anyone who quotes 10 year old data is out of touch and/or just carrying a grudge. They have won design awards, streamlined their global operations and are tackling some tough legacy issues (yes those would be the pensions of our friends and neighbors - the old middle class workers who built this nation). Not to mention that Toyota (American's love affair) still imports >50% of their vehicles (from a low cost supplier country - No from Japan). Japan has never closed a plant in their own country. How is that possible that they can import and still make money unless the Yen is manipulated and they are supported by their Gov't? In hard economic times we need to buy American. Wake up America and take care of America.

2008 Oct 29 11:36 AM