Posts
Tuesday, December 16, 2008
Sunday, December 14, 2008
The Auto Bailout
The $15 billion guaranteed loan packaged to the big 3 didn’t pass the Senate. Not a big shock that Biden, Kerry and Kennedy didn’t vote at all. But it was interesting that Senators Baucus (MT), Tester (MT) and Lincoln (AR), all democrats, voted against. Bush is considering using a portion of the funds approved by Congress to only be used for the financial bailout funds (TARP), to fund the auto loan package.
The media say that Bush is going to use the Congressional approved TARP funds to fund the car companies anyway. Again, I have a different take on what’s going on. Bush came out BEFORE the vote and said he would try and use the funds for the bailout if it failed in the Senate. Brilliant. He’s a good guy to the UAW and the rest right? Well, if he were sincere. The fact is, his announcement only gave those opposed to the UAW more incentive to push hard for concessions – it was the GOP’s last chance.
There is no way he can use the TARP funds for the auto companies. Given the overwhelming numbers of former attorneys in Congress, everyone involved, except the media, understands this! So, unfortunately, the vote really didn’t matter unless the UAW mistakenly cared. The UAW thought it was such a joke they essentially didn’t respond to the Senate at all.
Congress has adjourned for the year. Obama and the rest will fund these companies in 5 weeks. The question is, what will the UAW concede? The only answer is they must cut benefits. Assuming their pension plan is in fact funded, former employees will continue to receive their checks regardless. Healthcare is the item on the table. Wages are the same across the board in all US factories regardless if they are foreign run or not! The huge discrepancies are in the benefits. And how fortuitous the new administration is all for universal healthcare… literally, the entire universe, but, again, I digress.
You see, capitalism works in not just the good times. Our country, unlike the former USSR and others, have bankruptcy laws that are designed to get businesses reorganized without massive government intervention. Next post will deal with the massive costs of the coming socialized auto bailout. Think for a moment if all $15 billion were used to just close several thousand dealerships. Now imagine if each dealership has 50% excess inventory, and the production lines keep producing. Socialism at its finest.
The media say that Bush is going to use the Congressional approved TARP funds to fund the car companies anyway. Again, I have a different take on what’s going on. Bush came out BEFORE the vote and said he would try and use the funds for the bailout if it failed in the Senate. Brilliant. He’s a good guy to the UAW and the rest right? Well, if he were sincere. The fact is, his announcement only gave those opposed to the UAW more incentive to push hard for concessions – it was the GOP’s last chance.
There is no way he can use the TARP funds for the auto companies. Given the overwhelming numbers of former attorneys in Congress, everyone involved, except the media, understands this! So, unfortunately, the vote really didn’t matter unless the UAW mistakenly cared. The UAW thought it was such a joke they essentially didn’t respond to the Senate at all.
Congress has adjourned for the year. Obama and the rest will fund these companies in 5 weeks. The question is, what will the UAW concede? The only answer is they must cut benefits. Assuming their pension plan is in fact funded, former employees will continue to receive their checks regardless. Healthcare is the item on the table. Wages are the same across the board in all US factories regardless if they are foreign run or not! The huge discrepancies are in the benefits. And how fortuitous the new administration is all for universal healthcare… literally, the entire universe, but, again, I digress.
You see, capitalism works in not just the good times. Our country, unlike the former USSR and others, have bankruptcy laws that are designed to get businesses reorganized without massive government intervention. Next post will deal with the massive costs of the coming socialized auto bailout. Think for a moment if all $15 billion were used to just close several thousand dealerships. Now imagine if each dealership has 50% excess inventory, and the production lines keep producing. Socialism at its finest.
Friday, December 12, 2008
Moving On
Ok. Blago is definitely toast. No tape has surfaced on the face-to-face meeting with Jackson and Blago - doesn't mean one doesn't exist. In fact, if Blago had a clue of what the FBI was doing, he certainly would have covered himself. Obama keeps talking to the press with sweeping denials of essentially ever knowing Blago existed. Fine.
Do I think Obama knew?: Yes.
Does it really matter?:
1) It's not illegal to horse trade jobs or other positions in the private or public sector. It's not ethical, but it's not illegal. I think the trading was more for Valerie(who Obama seemed to be pushing for) and the selling was more for Jackson and another candidate. So if Obama kept his mouth shut, I didn't see any problems for him - other than keeping his mouth shut. Now he keeps talking and is backing himself into a corner where he thinks that everyone around him will take the fall at the end of the day.
Scooter Libby was taken down by Patrick Fitzgerald, the same attorney assigned to this case. He continued to pursue Scooter even though he knew who the person was who leaked the information on Plame. He got him on lying about other things but he didn't have anything to do with the leak of Plame, who arguably wasn't even undercover at the time anyway. Ok, I digress. But it's a similar scenario here.
2) Obama is now in for a heck of a first year.
Anything more to comment on Blago would be rhetorical, so I'm moving on to the economy in my next post. Lots going on there.
Do I think Obama knew?: Yes.
Does it really matter?:
1) It's not illegal to horse trade jobs or other positions in the private or public sector. It's not ethical, but it's not illegal. I think the trading was more for Valerie(who Obama seemed to be pushing for) and the selling was more for Jackson and another candidate. So if Obama kept his mouth shut, I didn't see any problems for him - other than keeping his mouth shut. Now he keeps talking and is backing himself into a corner where he thinks that everyone around him will take the fall at the end of the day.
Scooter Libby was taken down by Patrick Fitzgerald, the same attorney assigned to this case. He continued to pursue Scooter even though he knew who the person was who leaked the information on Plame. He got him on lying about other things but he didn't have anything to do with the leak of Plame, who arguably wasn't even undercover at the time anyway. Ok, I digress. But it's a similar scenario here.
2) Obama is now in for a heck of a first year.
Anything more to comment on Blago would be rhetorical, so I'm moving on to the economy in my next post. Lots going on there.
Wednesday, December 10, 2008
Is Blago playing us?
#5 -- So, according to the affidavit, #5 was willing to put some money up front for the position. ABC, via federal enforcement officials, says #5 is Jesse Jackson Jr., who was willing to pay $500k-$1M for the seat through various avenues.
Ok, so it would seem that Valerie was Obama's choice and she wasn't willing to pay (she already has a White House position). Thus, the demands from Obama for he and his wife's appointments were potentially rebuffed by 'we minus Obama' (see below) and caused Blago to say he was going with #5 instead. Not exactly rocket science to figure out.
While the above may be true, think about this as a logical extension:
Blago was being recorded by the FBI for months and, in the final weeks or longer, he knew it - FACT. At some point, the calls became so outlandish and so many people were suddenly being implicated, that the FBI said enough is enough - OPINION. It's possible that Blago knew of the recordings BEFORE he started to sell the Senate seat and began to implicate as many as possible, so he could cut deals to shield him from the other two primary charges. On the surface, it sounds like he's nuts, but depending on timing, he might be more sippery than initially thought. This strategy probably wouldn't play in many cities, but in Chicago, he might have a leg to stand on.
Ok, so it would seem that Valerie was Obama's choice and she wasn't willing to pay (she already has a White House position). Thus, the demands from Obama for he and his wife's appointments were potentially rebuffed by 'we minus Obama' (see below) and caused Blago to say he was going with #5 instead. Not exactly rocket science to figure out.
While the above may be true, think about this as a logical extension:
Blago was being recorded by the FBI for months and, in the final weeks or longer, he knew it - FACT. At some point, the calls became so outlandish and so many people were suddenly being implicated, that the FBI said enough is enough - OPINION. It's possible that Blago knew of the recordings BEFORE he started to sell the Senate seat and began to implicate as many as possible, so he could cut deals to shield him from the other two primary charges. On the surface, it sounds like he's nuts, but depending on timing, he might be more sippery than initially thought. This strategy probably wouldn't play in many cities, but in Chicago, he might have a leg to stand on.
Obama's Vague Blago Response
Blago's affidavit - The 76 page complaint charges Blago with several crimes:
1) Attempt to appoint Valerie Jarrett to Obama's seat in exchange for being named secretary of health and human services, and additional demands for cash payments and corporate board appointments for his wife.
2) Essentially extortion against the Chicago Tribune from selling Wrigley and
3) Demands for campaign contributions from various individuals
Obama's Vague Response -- The following is Obama's response to a reporter's question, over his knowledge of Blago's efforts to allegedly trade Obama's Senate seat: "I had no contact with the governor or his office and, so we were not – I was not aware of what was happening" So with his response, he first claims no one of this collective 'we' were aware and quickly removes himself from the 'we' to somehow shield himself from anyone around him who might have known. Sounds a bit complex and well thought out legally to me. Vague answers like this cast doubt on his credibility even before he's in office. What if this Senate seat sale was an attempt to implicate Obama intentionally???
1) Attempt to appoint Valerie Jarrett to Obama's seat in exchange for being named secretary of health and human services, and additional demands for cash payments and corporate board appointments for his wife.
2) Essentially extortion against the Chicago Tribune from selling Wrigley and
3) Demands for campaign contributions from various individuals
Obama's Vague Response -- The following is Obama's response to a reporter's question, over his knowledge of Blago's efforts to allegedly trade Obama's Senate seat: "I had no contact with the governor or his office and, so we were not – I was not aware of what was happening" So with his response, he first claims no one of this collective 'we' were aware and quickly removes himself from the 'we' to somehow shield himself from anyone around him who might have known. Sounds a bit complex and well thought out legally to me. Vague answers like this cast doubt on his credibility even before he's in office. What if this Senate seat sale was an attempt to implicate Obama intentionally???
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