Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh? - Page 5 - TigerDroppings.com

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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80158 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

Granted Lutz had retired from GM by that point
quote:

If you know of any bank or private equity source that was willing to provide financing for a GM bankruptcy in 2009, please provide the name.



With a full guarantee by the federal government???

Practically any bank with an acceptable adjusted (risk weighted) capital ratio would have been happy to put a credit risk free asset earning 200-250 basis points over treasury securities on their balance sheet.

The GM loan from the government carried an interest rate of 7%, plus giving up ownership through the warrants the government took.

Treasuries in 2009 were averaging around 3-4%.

All of the big banks were trying to get acceptable loans in 2009. They weren't able to do so for the most part so they were either buying treasuries or just leaving their surplus funds on deposit with the Fed. Just look at the Fed's consolidated reports on banks in 2009. There was surplus liquidity.

A risk free loan, meaning its risk weighting would be similar to a treasury security (20%) but it would earn significantly above the treasury yields would have been in great demand.

Plus, with the Fed guarantee, GM could have issued commercial paper or bonds at less than the 7% they had to pay the taxpayers for their loan.

Hell, Warren Buffett would probably have made the loan with the fed guarantee! He loaned billions to Bank of America, GE and Goldman Sachs from 2008-2010 WITHOUT a guarantee!

quote:

Otherwise, STFU, about me and my opinion.
U mad?







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MFn GIMP
LSU Fan
Owensboro, Kentucky
Member since Feb 2011
8386 posts
 Online 

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


You are laying down some knowledge in this thread.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80158 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

You are laying down some knowledge in this thread.


But, but, but...he works at a bank!




This post was edited on 10/24 at 6:39 pm


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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14944 posts
 Online 

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

There was no private money to do Romney's plan Even Bain didn't want any of that.
That is just not true. There was a price at which money would have been available. We just never learned what that price was because Obama did not let the process progress to the point where GM would have been attractive to private investors.

Suppose the regular bankruptcy process was allowed to occur, and the bankruptcy judge approved a plan to terminate GM's contracts with the UAW, to include the unfunded pension liability. GM's operating costs would have been cut substantially, and it would have become attractive to investors. The only problem is that the money any investors would have been willing to invest would have gone to the secured creditors before the union employees. And Obama would not allow that to occur. Instead of letting his union supporters share in the pain of GM's bankruptcy Obama put together a deal that infused GM with close to $100 billion of capital. In under 3 years the company has a market value of less than $35 billion despite receiving $100 billion in new assets. That is a loss of almost 2/3 of the value of the assets given to GM. Obama is lucky his re-election came before GM loses the remaining gifts from the taxpayers.






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TheBiggestSpur
South Carolina Fan
Member since Oct 2012
1049 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

It's the same old shite from the fox crowd. Obama didn't kill OBL. Obama didn't save GM, Romney did. Obama;s employment numbers are fixed. The polls are rigged.

You refuse to give the man credit for anything. I wonder why?


I give him credit for being the biggest Presidential frick-up in our nation's history.






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Enadious
LSU Fan
formerly B5Lurker City of Central
Member since Aug 2004
14501 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

It's the same old shite from the fox crowd. Obama didn't kill OBL. Obama didn't save GM, Romney did. Obama;s employment numbers are fixed. The polls are rigged.

You refuse to give the man credit for anything. I wonder why?


Obama bailed water out of the sinking ship GM. He borrowed money to do it that you and your children will have to pay for.

The GM ship is still sinking.

Obama bought time. GM will still drown in the end.






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ironsides
LSU Fan
new york, ny
Member since May 2006
5781 posts
 Online 

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


You mean the volt and the hummer aren't gonna save GM?

Ironic thing is the union probably still got screwed in the original deal - have a hunch that their pension funds were probably one of the bond holders (amongst other investments).







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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

The only problem is that the money any investors would have been willing to invest would have gone to the secured creditors before the union employees


Bing-F*cking-O!!!

That's the only reason he turned 200 years of bankruptcy laws on their heads and, imho, intervened in something he had no f*cking authority to intervene in.

He illegally borrowed money from China to give to his union buddies/campaign contributors.






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Cracking
New Orleans Saints Fan
Northshore
Member since Aug 2006
2069 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


MSNBC even admits Obama lied (or in their words was wrong). There is no hope for some.


I know most of you don't like Glenn Beck, but he plays the MSNBC audio. You can fast forward through most of it to hear the MSNBC fact check.






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Jbird
Iowa Fan
In Odramaville with EthanL
Member since Oct 2012
15814 posts
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re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


Do you really expcet Lutz to bite the hand that fed GM, knowing he will be coming back for more money in the near future?





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LSUGrrrl
LSU Fan
Frisco, TX
Member since Jul 2007
5169 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

let's say there wasn't private money and the injection had to come via the federal government why not just follow normal bankruptcy procedures and let the government act as a any other company would have?


Dang. Ding. Ding.

GM NEEDED to go through a true bankruptcy to eliminate many of the items that led to its failure in the 1st place (Union contracts & pensions). Govt guaranteed loans would have absolutely been available to help them restructure. Instead, the taxpayers bailed them out without demanding the same elimination of costs that a typical bankruptcy would require and THIS is an ongoing problem for the company. Without taking corrective measures, GM is in the same boat they were in before. Their expenses are too high to be competitive in the future.






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LSUGrrrl
LSU Fan
Frisco, TX
Member since Jul 2007
5169 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

Ford didn't need to be bailed out. It was a GM and Chrysler thing.


You don't know what you're talking about. Ford made a decision to not take a govt bailout and came out stronger bc of it.






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LSUGrrrl
LSU Fan
Frisco, TX
Member since Jul 2007
5169 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


quote:

That's a fact. I work in the industry, so this issue hits very close to me.


What side & in what capacity? I am also in the industry.






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KeyserSoze999
LSU Fan
Member since Dec 2009
3683 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


10. GM is more pleasant tha Libya
9. Writing is on the wall
8. Never to early to cater to a NEW prez
7. Letman will be employed in 2013
6. Obama won't
5. Obama refuse to let letman suck him off last time
4. Letterman wants Romney to come on down
3. Letterman was told O lies on days ending in 'Y'
2. Letterman owns Ford stock
1. Letterman found Jesus



This post was edited on 10/25 at 8:57 am


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otowntiger
LSU Fan
O-Town
Member since Jan 2004
8419 posts

re: Letterman: Say, Obama’s kind of lying about this GM bankruptcy thing, huh?


I would have like to have seen more of that. I'm sure Maddow had a 'reasonable explanation' after Letterman said the President 'took liberties with that'.





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