Nancy Pelosi–“Bankruptcy is Not An Option”–Socialist Stickup of American Taxpayers!
Big Spender
“Democracy must be something more than two wolves and a sheep voting on what to have for dinner.”
~James Bovard, Lost Rights. The Destruction of American Liberty (St. Martin’s Press: New York, 1994), p. 333.
Auto industry bailout – are we bailing out GM or UAW?
Reid/Pelosi Press Conference On Auto Bailout
FOX: DeMint Explains Opposition to Auto Bailout
Romney To Big 3: Fold
No More Bailouts!!!
Bankruptcy, Not a Bailout, Is a Better Option for Automakers
The Federal Government should not bailout or make billion dollar loans to any business, no matter how big.
No business is too big to fail or go bankrupt.
Bankruptcy is always an alternative.
Thousands of businesses go out of business or file for bankruptcy every day.
Thousands of new business start operations every day.
Congress has no Constitutional role to be lender of last resort to bailout or loan money to businesses that are losing money.
The primary reason the Democratic Party and Nancy Pelosi say that “bankruptcy is not an option” is that if the auto companies file for Chapter 11 bankruptcy, than the auto companies will ask that all contracts, including labor contracts between the auto company and the union be cancelled or amended and new terms and conditions negotiated.
The IAW opposes this and is pressuring Congress, namely the Democratic Party, to bailout the auto companies to prevent General Motors, Ford and Chrysler from filing for bankruptcy.
The IAW has been a major contributor of money and labor to get out the vote for the Democratic Party for many years.
The auto companies bailout is a political payoff by the Democratic Party to save the IAW.
The American taxpayer is not a lender of last resort whereby Congress loans money to companies that have failed in the market for whatever reason including Federal government regulation and higher taxes.
I will vote against any Senator, Congressional Representative, and Presidential candidate that votes for any bailout of any company, state, or local government.
Ban Bailouts!
“It is interesting to observe that in the year 1935 the average individual’s incurious attitude towards the phenomenon of the State is precisely what his attitude was toward the phenomenon of the Church in the year, say, 1500. … it does not appear to have occurred to the Church-citizen of that day, any more than it occurs to the State-citizen of the present, to ask what sort of institution it was that claimed his allegiance.”
~Albert Jay Nock, Our Enemy, the State, c. 1935 (Delavan: Hallberg, 1983), p. 34.
ABBA- Winner Takes It All
http://www.youtube.com/watch?v=LbJBvOKLh-A&feature=related
Background Articles and Videos
48% Say Failure of GM Best for the Economy
“…Nearly half of U.S. voters (48%) say it is better for the economy to let companies like General Motors fail rather than providing government subsidies to keep them in business.
Thirty-five percent (35%) believe it’s better to subsidize their continued existence, according to a new Rasmussen Reports national telephone survey. Seventeen percent (17%) are undecided.
Sixty-four percent (64%) of Republicans and 60% of unaffiliated voters say it’s better to let troubled companies like GM fail, compared to 26% of Democrats. Fifty percent (50%) of Democrats think it’s better to subsidize them, but just one-quarter of GOP and unaffiliated voters agree.
Fifty-three percent (53%) of investors say it is better to let companies like GM fail, compared to 38% of non-investors.
In a survey last week, 46% of Americans opposed a government bailout for the Big Three automakers.
Pelosi Says Bankruptcy by Automakers ‘Not an Option’
“…U.S. House Speaker Nancy Pelosi said she believes either Congress or the Bush administration will step in to aid domestic automakers because bankruptcy is “not an option.”
“I believe that an intervention will happen,” Pelosi said at a briefing in Washington. “Everybody is disadvantaged by bankruptcy, including our economy, so that’s not an option.”
Pelosi said Congress will either approve new loans for the auto industry or the Bush administration will provide funding through the $700 billion financial-markets rescue plan approved by Congress last month. …”
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBR5nQbuo1bU
Chapter 11, Title 11, United States Code
“Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals with unsecured debts of less than $336,900.00 and secured debts of less than $1,010,650.00 as of April 1, 2007.
“…When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either chapter 7 or chapter 11. In chapter 7, the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors. In chapter 11, in most instances the debtor remains in control of its business operations as a “debtor in possession”, and is subject to the oversight and jurisdiction of the court.[1] The court can grant complete or partial relief from most of the company’s debts and its contracts. Sometimes, if the business’s debts exceed its assets, then at the completion of bankruptcy the company’s owners all end up without anything; all their rights and interests are ended and the company’s creditors are left with ownership of the newly reorganized company. …”
“…All creditors are entitled to be heard by the court which is responsible for determining whether the plan of reorganization complies with the purposes of the bankruptcy law and provides for fair and equitable treatment of all parties in interest.
Some contracts, known as executory contracts, may be rejected if canceling them would be financially favorable to the company and its creditors. Such contracts include labor union contracts, supply or operating contracts (with both vendors and customers) and real estate leases. The standard feature of executory contracts is that each party to the contract has duties remaining under the contract. In the event of a rejection, the remaining parties to the contract become unsecured creditors of the debtor.
Chapter 11 is reorganization, as opposed to liquidation. Debtors may “emerge” from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time. After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be “confirmed” by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7 or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to nonbankruptcy law in order to satisfy their claims. …”
http://en.wikipedia.org/wiki/Chapter_11
Auto bailout bill up to $34 billion; White House “not ruling” it out
By Michelle Malkin
Here you go:
The heads of struggling auto giants General Motors, Ford, and Chrysler reappeared on the Hill yesterday to make their case anew. This time, they came more prepared. The most ambitious business plan proposed was by General Motors, the world’s largest auto company, currently teetering on the verge of collapse. It set out a plan to recapture revenue through deep cuts—including slashing 20 percent of its jobs, shutting nine factories, and trying to reduce pay through talks with the United Automobile Workers union.
Along with a more structured plan, however, the Big 3 also had an even bigger request: $34 billion in loans, compared with the $25 billion they’d asked for two weeks ago.
If you weren’t already feeling Scrooge-y, here’s the White House refusing to rule any bailout in or out: …”
Nancy Pelosi Press Conference Dec 02, 2008
Pelosi: Give Us A Reason
Inside Look: Opposing the Auto Industry Bailout
Jim Lacamp on Kudlow & Co November 18, 2008
Bailout: Two paths to take
Inside Look: Bankruptcy, Bailout, or Bust?
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Democratic Party Payoff: Barney’s Bailout Bill for the United Auto Workers (UAW)
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