By Garetjax

The Holidays are over and its been far too long since I have posted.    Let’s take a look at the $17.4 Billion Auto Bailout.  Before I begin Kudos to Ford for not asking for any money.  My next American Car will definitely be a Ford Product. Mandatory reading should include this article from the Wall Street Journal U.S. Throws Lifeline to Detroit

At first glance the deal seems to have some teeth to it but as always the devil is in the details.  From that WSJ article:

“Under the White House plan, the companies are required to extract enough financial concessions from workers, suppliers, dealers and other stakeholders to demonstrate their long-term viability by the end of March.

The deal’s ambitious targets for the companies include replacing two-thirds of their debt with stock; using more stock instead of cash to fund retiree health-care obligations; eliminating much-criticized union “jobs banks” that pay laid-off auto workers; and establishing wage structures and workplace rules that are more competitive with foreign rivals.”

But all those targets are nonbinding, and the agreement appeared to be much more porous than legislation that the administration and Democratic congressional leaders failed to pass earlier this month.”

This quote tells me we are just going to see more of the same from Barney Frank and friends, I seem to recall him saying something very similar when there was talk of tightening regulations on Fannie Mae and he fought that as well and we all know how that turned out:

“UAW leaders and their congressional allies were already signaling Friday that they would seek to ease the terms of the deal next year as they expect more friends on Capitol Hill and in the White House. Top Democratic leaders complained about the administration’s aim of reducing worker wages and benefits. Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee, termed the provisions “an unfair assault on working men and women.”"

And more loopholes for the automakers:

“But the pact gives the companies leeway, even if they don’t obtain all the concessions they are seeking. The deal generally tracks key provisions of the bailout legislation that nearly passed Congress. But it provides significant flexibility to the companies in how they prove “viability.”

And according to a White House fact sheet, the cost-cutting targets “would be nonbinding in the sense that negotiations can deviate from the quantitative targets … providing that the [company] reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations.”"

What does all this mean?  My prediction is by the end of March, the supposed “due  date” Chrysler and GM will beg for more time and more money.  The UAW will not have conceded anything of merit and the suppliers will probably have been squeezed a bit.

I would like to see more details on why Ford is succeeding (well at least not in as dire straits as the other big three).  Do they not also have the burden of the UAW?  Before any more money goes to Chrysler and GM it should be looked at to see if they are making the same hard choices Ford has been making before they get another nickel.

By Garetjax

Sorry for the lack of updates.  I have not had power at home for 5 days due to an ice storm.  It was a balmy 34 degrees in the kitchen Sunday morning.  I’ll be catching up very quickly with all the news and posting again.

Breaking news all over the blogsphere on Illinois Gov. Blagojevich and his chief of staff being arrested by the FBI for trying to sell Obama’s vacant senate seat. Apparently they have him on tape and basically dead to rights.  Lot’s of coverage linked below. From Fox: Prosecutor Calls Corruption Charges Against Illinois Governor ‘Appalling’

“U.S. Attorney Patrick Fitzgerald described the corruption charges against Illinois Gov. Rod Blagojevich as “appalling,” saying his “cynical behavior” reached “a truly new low.”

He has been arrested in the middle of what we can only describe as a political corruption crime spree,” Fitzgerald said at a news conference in Chicago on Tuesday — just hours after the Illinois governor and his chief of staff John Harris were arrested on two counts each of federal corruption charges stemming from allegations Blagojevich was trying to sell President-elect Barack Obama’s vacated Senate seat to the highest bidder.

Fitzgerald said Blagojevich engaged in “pay-to-play politics” in an attempt to sell Obama’s Senate seat. He said Blagojevich was recorded during court-authorized wiretaps as saying, “It’s a bleeping valuable thing. You just don’t give it away for nothing.”

More shocking news comes from the press conference coverage by Ace US Attorney Blagojevich Press Conference Now Is Over

“Apparently they bugged his campaign office and tapped his home phone. They have all of this ‘pay to play’ stuff on tape.

The government says he wanted a $50K kickback from the CEO of a children’s hospital that received state money. When the kickback didn’t show up, he tried to have the funding pulled from the hospital.

Classy guy.

Blagojevich wanted to have Tribune editors who were critical of him in exchange for state support for tax credits.

He wanted a cabinet post or an ambassadorship and a job for his wife in exchange for nominating a particular person to Obama’s Senate seat.

Fitzgerald says Obama was not involved in any negotiations.

Wow, this isn’t some sort of complicated scheme, it’s just hardball give to get.

Now Fitz is asking people who may have been approached by Blagojevich before the taps went in to come forward…so there maybe more to come.

FBI Agent in Charge of Chicago says ‘it’s a new low for Illinois’, that’s saying something. “If it (Illinois) isn’t the most corrupt state, it’s certainly one hell of a competitor”. Says his agents were shocked and sickened by what they heard.

Fitz says there’s a bills sitting on the Governor’s desk that was the subject of a bribe and they wanted to get Blagojevich out before he could act of them. That’s part of the reason for the timing of the indictments.”

Ace covers more of it here Illinois Governor Arrested

LGF  covers it here IL Governor Arrested for Trying to ‘Sell’ Obama’s Senate Seat

Hot Air covers it here Feds arrest Illinois Gov. Blagojevich for trying to sell Obama’s vacant Senate seat

By Garetjax

This past sunday on Meet the Press we learned that President Elect Obama has not quit smoking.   The real story is however how the truth came out.  Patterco has it covered Obama Still Smokes But He’s Doing a Terrific Job and here is the exchange:

“Appearing on NBC’s “Meet the Press” program, interviewer Tom Brokaw told Obama he had ducked answering the question during an interview last month with ABC’s Barbara Walters.

Noting that the White House was a no-smoking zone, Brokaw asked Obama, “Have you stopped smoking?”

“I have,” Obama replied, smiling broadly. “What I said was that there are times where I have fallen off the wagon.”

“Wait a minute,” Brokaw interjected, “that means you haven’t stopped.”

“Fair enough,” Obama said. “What I would say is that I have done a terrific job under the circumstances of making myself much healthier. You will not see any violations of these rules in the White House.”

I’m trying to wrap my head around that last sentence.  Translating that Clintonese is “the One” going to be putting some ashtrays “outside” the White House in the Rose Garden perhaps?  Or will there be “Bongs in the Bunker?”

Yes you know where I am going now with my title “The Smoking Presidents”.  I can’t help but quote it:

“I tried marijuana once. I did not inhale.”  – William J. Clinton

See history does repeat itself.

By Garetjax

This morning as read my daily political news a story from AP (yes the AP of all places) really grabbed my attention.  Democrats: Obama needs hands-on economic approach The title is of course light handed compared to the contents of the article but even still when one of the most “in the tank” for Obama news organizations has something actually negative to say about “the one” it really stands out to me.

Even more shocking was that the article led off with an assault on Obama from none other than Barney Frank:

“WASHINGTON – Democrats are growing impatient with President-elect Barack Obama’s refusal to inject himself in the major economic crises confronting the country. Obama has sidestepped some policy questions by saying there is only one president at a time. But the dodge is wearing thin. “He’s going to have to be more assertive than he’s been,” House Financial Services Committee Chairman Barney Frank, D-Mass., told consumer advocates Thursday.

Frank, who has been dealing with both the bailout of the financial industry and a proposed rescue of Detroit automakers, said Obama needs to play a more significant role on economic issues.

“At a time of great crisis with mortgage foreclosures and autos, he says we only have one president at a time,” Frank said. “I’m afraid that overstates the number of presidents we have. He’s got to remedy that situation.”"

If he had said something like that to the press during the campaign he would have been thrown of Obama’s plane.

Further along in the article we see:

“Obama has maintained one of the most public images of any president-elect. He has held half a dozen press conferences, where he has entertained question after question about the economy, the mortgage crisis, and the flailing auto industry. He called for passage of extended unemployment benefits — which has passed — and even a stimulus package if possible before Jan. 20. But he has stayed away from trying to dictate remedies for the toughest problems Congress is confronting: the auto industry’s troubles and how to spend the $700 billion bailout.”

So as we are all unfortunately very aware we have had to endure half a dozen Presidential Elect press conferences where he has not covered any of the “toughest problems” facing the country.  Sounds like all talk and no action to me.  He can’t be hiding under the cover of “not having two presidents” at one time while having all these press conferences.  Besides with the extraordinary crisises the country now faces he should be displaying his ability to work across the aisle that he so highly promoted during the campaign and actually work with the current administration on these tough problems.

By J.Schlafly

Czech President, Vaclav Klaus, is about to take over as President of the European Union, and with his presidency looming, Klaus represents the EU’s, perhaps final, chance for change (forgive me for using Obama-laced vernacular). Despite Klaus’ growing popularity in the Czech Republic and easy re-election victory this year, the socialist nations of the EU fear his impending presidency. However, any man who questions and criticizes the environmental movement by depicting global warming as a dangerous myth which threatens economic growth automatically gets approval from me; additionally, branding Al Gore as an “apostle of arrogance” makes me want to get my checkbook out and give a campaign contribution. Of course, I’m not up-to-date on the Czech Republic’s campaign finance laws, but if Obama can accept illegal donations from foreign “entities” (read: terrorists) then I’m sure Klaus can as well.

Born in 1941 under a communist regime, Klaus is an ardent supporter of individual freedom and economic liberty. He studied economics and became a supporter of free market advocates like Milton Friedman. Coined as an “economist by training and a free-marketeer by ideology” in the International Herald Tribune, Klaus is not just a politician (the Obama references are endless), but an actual businessman (as are the reasons Romney should be president-elect), and fervently opposed the coordinated bailout of European banks as “irresponsible protectionism”.

Klaus is quoted as saying, “If you lived under communism, then you are very sensitive to forces that try to control or limit human liberty.” If only the 52.56% of voters* who casted their ballots for Obama were as sensitive to the history of communist regimes as they were to the empty forces of hope, change, and warm, fuzzy emotions, the United States could boast of economic responsibility and protection of state sovereignty from their president also.

*According to ACORN this can include foreign nationals, made-up individuals, cartoon characters, felons, and of course the same individual voting an infinite number of times