Bankruptcy. Something many of us advised before the government threw 20+ billion of our dollars down the proverbial rat hole:
A week into his new job as chief executive of General Motors, Fritz Henderson said on Sunday he was confident in the future of the company but a structured bankruptcy remains a possibility.
Mr. Henderson has just 55 days remaining to meet President Obama’s timetable to come up with a new plan to save the struggling car giant. Speaking on NBC’s “Meet the Press,” he said that the company was working to avoid bankruptcy, but that if it failed to meet its goals for cutting costs and shrinking the company, it “may very well be the best alternative.”
“If it can’t be done outside of a bankruptcy process, it will be done within it,” he said.
Ah, how nice. And what, we had to fire the CEO, put a new board together and essenitally give control to the government to come to this conclusion?
Even Timothy Geithner, the tax-cheat of a Treasury Secretary, is now saying the “B” word is a possibility:
Treasury Secretary Timothy F. Geithner stressed Sunday that G.M. “is going to be a part of this country’s future,” but said that a managed bankruptcy was among the options for the company.
“These guys have made some progress in putting together a restructuring plan, but they’re not there yet,” Mr. Geithner said on CBS’s “Face the Nation.” “We wanted to give them the time to try to get it right. But, again, our objective is to allow — is to help these companies emerge stronger in the future so they can survive without government assistance.”
Of course had they left this all alone, we’d be 20 billion to the plus side and they’d already be in the middle of the bankruptcy process and well on their way to emerging as a stronger auto company.
Irony of ironies, I just picked up my new company car – a Chevy Malibu. It is a very nice car and has a lot of standard bells and whistles that I wouldn’t expect for a car of its price range. Frankly it’s not the engineering or the quality, as I see it – its legacy costs. And bankruptcy is the only way those are going to be actually approached and dealt with properly.
And you can’t lay this all off on the Obama admistration either – the Bush bunch was the first to throw money at the problem. However you can blame the Obama administration for continuing to do the same thing.
Time to back off, let the legal process that has worked for literally thousands of companies do its thing and see what comes out the other end. My guess is a stronger and more competitive GM.
I was wondering if this would happen:
The top U.S. commander in Iraq, Gen. Ray Odierno, met Obama shortly after Air Force One landed in Baghdad about 4:42 p.m. local time (9:42 a.m. ET).
Obama chose to visit Iraq rather than Afghanistan because of its proximity to Turkey, which Obama just visited, said Robert Gibbs, the president’s spokesman.
In addition, Obama wanted to discuss Iraq’s political situation with Iraqi Prime Minister Nouri al-Maliki and Iraqi President Jalal Talibani, Gibbs said.
Mostly, however, the stop is about Obama visiting troops, he said.
Good – a tip of the cap. This is important and I’m glad to see President Obama made time to see the troops. We can get all cynical about a lot of things, but I, for one, appreciate the effort and the gesture.
No surprise to some, but a complete surprise to others I’m sure:
The Obama administration is again invoking government secrecy in defending the Bush administration’s wiretapping program, this time against a lawsuit by AT&T customers who claim federal agents illegally intercepted their phone calls and gained access to their records.
Disclosure of information sought by the customers, “which concerns how the United States seeks to detect and prevent terrorist attacks, would cause exceptionally grave harm to national security,” Justice Department lawyers said in papers filed Friday in San Francisco.
Kevin Bankston of the Electronic Frontier Foundation, a lawyer for the customers, said Monday the filing was disappointing in light of the Obama presidential campaign’s “unceasing criticism of Bush-era secrecy and promise for more transparency.”
The promise of transparency has been the most consistent casualty of the Obama administration. No bills thus far have been posted on the web 5 days prior to signing. The Treasury Department refuses to disclose how TARP money has been spent. And now this – something, as the EFF points out, which was unceasingly criticized by candidate Obama when the Bush administration was in power.
Now, that said, perhaps what the Obama Justice Department has discovered is argument the Bush administration was making at the time were valid. The case in question is an extension of the September case:
Like the earlier suit, the September case relies on a former AT&T technician’s declaration that he saw equipment installed at the company’s San Francisco office to allow NSA agents to copy all incoming e-mails. The plaintiffs’ lawyers say the declaration, and public statements by government officials, revealed a “dragnet” surveillance program that indiscriminately scooped up messages and customer records.
The Justice Department said Friday that government agents monitored only communications in which “a participant was reasonably believed to be associated with al Qaeda or an affiliated terrorist organization.” But proving that the surveillance program did not sweep in ordinary phone customers would require “disclosure of highly classified NSA intelligence sources and methods,” the department said.
It would appear the Obama Justice Department has examined the case and the evidence and, amazingly, has come to the conclusion that what the Bush administration claimed – that the taps were aimed only at al Qaeda and/or affiliated organizations – was correct, and is now defending that. They’ve also concluded that disclosure of the information involved in the case would be harmful to national security.
What I now wonder is if “secrecy” suddenly is ok? And since it is the Obama administration – the increasingly opaque Obama administration – saying the taps were used only on bad guys, are they now ok? And will that be enough to mollify those on the left who were so outraged when the Bush administration was accused of doing all of this?
And finally, I wonder if the NYT will devote the time and space to this defense of what it termed “illegal wiretapping” in the past as it did when it surfaced during the Bush administration?
That’s sort of the gist of my latest Examiner column. I point out that education isn’t a one-size-fits-all proposition and experimentation is a good thing.
Another day, another breathless “Antarctica is melting” report:
An ice bridge linking a shelf of ice the size of Jamaica to two islands in Antarctica has snapped.
Scientists say the collapse could mean the Wilkins Ice Shelf is on the brink of breaking away, and provides further evidence of rapid change in the region.
Sited on the western side of the Antarctic Peninsula, the Wilkins shelf has been retreating since the 1990s.
The BBC report seems to consciously avoid blaming it on global warming, but does imply the change is recent (and leaves it to you to decide what that means):
“The fact that it’s retreating and now has lost connection with one of its islands is really a strong indication that the warming on the Antarctic is having an effect on yet another ice shelf.”
Since this is a floating ice shelf, its breakaway will have zero effect on sea levels.
The NYT, of course, is not so careful with its coverage:
An ice bridge holding a vast Antarctic ice shelf in place has shattered and may herald a wider collapse caused by global warming, a scientist said Saturday.
While citing both articles, Think Progress naturally choses the more dire pronouncement as its lede.
Of course we’ve been through this before. You may remember the discussion when it first came up almost a year ago to the day, we did some research and discovered, low and behold, that the area where the Wilkins Ice Sheet is located also happens to be the location of some active undersea volcanoes.
Notice the ice shelf is on the western side of the peninsula and south of its tip. Now, look at this:
Well I’ll be – an active volcano very near the shelf which also vents further up the peninsula. I wonder – could that cause a bit of warming in the area?
Last year, the Ice Cap provided a little sanity to the discussion. Then it was an MSNBC report. It is essentially no different than thes reports. In fact it is more of what they don’t say than what they do say the make the news reports suspect. Here’s what Ice Cap said last year:
The [MSNBC] account may be misinterpreted by some as the ice cap or a significant (vast) portion is collapsing. In reality it and all the former shelves that collapsed are small and most near the Antarctic peninsula which sticks well out from Antarctica into the currents and winds of the South Atlantic and lies in a tectonically active region with surface and subsurface active volcanic activity. The vast continent has actually cooled since 1979.
The full Wilkins 6,000 square mile ice shelf is just 0.39% of the current ice sheet (just 0.1% of the extent last September). Only a small portion of it between 1/10th-1/20th of Wilkins has separated so far, like an icicle falling off a snow and ice covered house. And this winter is coming on quickly. In fact the ice is returning so fast, it is running an amazing 60% ahead (4.0 vs 2.5 million square km extent) of last year when it set a new record. The ice extent is already approaching the second highest level for extent since the measurements began by satellite in 1979 and just a few days into the Southern Hemisphere winter and 6 months ahead of the peak. Wilkins like all the others that temporarily broke up will refreeze soon. We are very likely going to exceed last year’s record. Yet the world is left with the false impression Antarctica’s ice sheet is also starting to disappear.
In other words, it is tiny portion of Antarctica which is located in a part of the continent which is most exposed to South Pacific currents and also has “surface and subsurface volcanic activity” to add to any warming. Graphically it looks like this:
So, other than it finally looks like Wilkins may split away, the situation isn’t any more dire than it was last year at this time and seems, instead, to be the work of natural forces that certainly would have a warming effect without the assistance of any sort of “global warming”.
North Korea, ignoring the world as usual, launched it’s long-range missile:
North Korea fired a long-range rocket on Sunday, provoking international outrage and prompting the U.N. Security Council to call an emergency meeting.
The world as usual hopped up and down and told North Korea how angry it is:
“North Korea has ignored its international obligations, rejected unequivocal calls for restraint and further isolated itself from the community of nations,” President Obama said in Prague, urging Pyongyang to honor the U.N. resolutions and to refrain from further “provocative” actions.
It’s “obligations” obviously, pertain to obeying a unanimous UN Security Council resolution barring North Korea from firing ballistic missiles resolution passed in 2006. Of course North Korea never agreed to or had any say in the resolution. Just as obviously then, they feel no compunction whatsoever to abide by it.
And now, with the UN Security Council emergency meeting looming, what can we expect?
The 15-nation Security Council was due to hold an emergency closed-door meeting from 3 p.m. EDT but China and Russia have made clear they will use their veto power to block any resolution imposing new sanctions on Pyongyang .
For some reason, all of this reminded me of this from Team America: World Police –
Kim Jong Il: Hans Brix? Oh no! Oh, herro. Great to see you again, Hans!
Hans Blix: Mr. Il, I was supposed to be allowed to inspect your palace today, but your guards won’t let me enter certain areas.
Kim Jong Il: Hans, Hans, Hans! We’ve been frew this a dozen times. I don’t have any weapons of mass destwuction, OK Hans?
Hans Blix: Then let me look around, so I can ease the UN’s collective mind. I’m sorry, but the UN must be firm with you. Let me in, or else.
Kim Jong Il: Or else what?
Hans Blix: Or else we will be very angry with you… and we will write you a letter, telling you how angry we are.
In this podcast, Bruce, Michael and Dale discuss the G-20 Summit, Pres. Obama’s foreign policy, and the Geithner Plan.
The direct link to the podcast can be found here.
The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.
As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2007, they can be accessed through the RSS Archive Feed.
Al Gore may have ‘invented’ it, but the Congress may give Obama control of it. The report is from Mother Jones:
Should President Obama have the power to shut down domestic Internet traffic during a state of emergency?
Senators John Rockefeller (D-W. Va.) and Olympia Snowe (R-Maine) think so. On Wednesday they introduced a bill to establish the Office of the National Cybersecurity Advisor—an arm of the executive branch that would have vast power to monitor and control Internet traffic to protect against threats to critical cyber infrastructure. That broad power is rattling some civil libertarians.
The Cybersecurity Act of 2009 (PDF) gives the president the ability to “declare a cybersecurity emergency” and shut down or limit Internet traffic in any “critical” information network “in the interest of national security.” The bill does not define a critical information network or a cybersecurity emergency. That definition would be left to the president.
The bill does not only add to the power of the president. It also grants the Secretary of Commerce “access to all relevant data concerning [critical] networks without regard to any provision of law, regulation, rule, or policy restricting such access.” This means he or she can monitor or access any data on private or public networks without regard to privacy laws.
So you have an unelected Secretary of Commerce able to access all of the data on the private or public networks without regard to privacy laws – yeah, no possibility of abuse there, huh?
The bill could undermine the Electronic Communications Privacy Act (ECPA), says CDT senior counsel Greg Nojeim. That law, enacted in the mid ’80s, requires law enforcement seek a warrant before tapping in to data transmissions between computers.
“It’s an incredibly broad authority,” Nojeim says, pointing out that existing privacy laws “could fall to this authority.”
It will be interesting to see if we hear the same sort of outcry from the left pertaining to warrants as we heard about FISA if this passes.
“We must protect our critical infrastructure at all costs—from our water to our electricity, to banking, traffic lights and electronic health records—the list goes on,” Rockefeller said in a statement. Snowe echoed her colleague, saying, “if we fail to take swift action, we, regrettably, risk a cyber-Katrina.”
And apparently the possibility of a “cyber-Katrina” means that any Constitutional right you may have to privacy can be waived.
The New York Times engaged in union busting:
The New York Times Company has threatened to close The Boston Globe unless labor unions agree to concessions like pay cuts and the cessation of pension contributions, according to a person briefed on the talks.
What a strange and different world we find ourselves in today. Of course I guess that’s really no different than Rosie O’Donnell railing against guns while her armed body guards stood next to her.
Some relatively good news and some bad news. The good news has to do with “cap-and-tax” as the WSJ article cited refers to “cap-and-trade”:
Tennessee Republican Lamar Alexander called it “the biggest vote of the year” so far, and he’s right. This means Majority Leader Harry Reid can’t jam cap and tax through as part of this year’s budget resolution with a bare majority of 50 Senators. More broadly, it’s a signal that California and East Coast Democrats won’t be able to sock it to coal and manufacturing-heavy Midwestern states without a fight. Senators voting in favor of the 60-vote rule included liberals from Wisconsin, Michigan and West Virginia. Now look for Team Obama to attempt to impose cap and tax the non-democratic way, via regulation that hits business and local governments with such heavy costs that they beg Congress for a less-harmful version.
I say relatively good news because the author is right – if the Obama administration can’t get it through Congress, there’s little doubt they’ll look for an administrative way to impose cap-and-trade through the executive branch. One route may be through the EPA.
Of course, there is always the distinct possibility that one of the Democratic Senators who is presently against limiting the filibuster will be pressured into changing his mind. And then there are always the RINOs.
But the possibliity remains that the cap-and-trade economy killer may be defeated in Congress, or at least delayed for a while. If passed, you could rest assured we’d not be seeing an economic recovery anytime soon.
However, cap-and-trade isn’t the only problem on the horizon. The health care push will be coming up soon as well, now that Congress has passed the Obama budget blueprint with no Republican support.
The most important remaining fight this year is over health care. Democrats seem intent on trying to plow that monumental change through with only 50 votes, even as they negotiate to bring along some Republicans. We hope these Republicans understand that a new health-care “public option” — a form of Medicare for all Americans — guarantees that the 17% of GDP represented by the health-care industry will be entirely government-run within a few years. This is precisely Mr. Obama’s long-term goal, though he doesn’t want to say it publicly.
It is a back-door means of claiming the reforms are “market” oriented while setting up the system to be quietly shifted to government control. And this at a time when more and more doctors are leaving the Medicare system because of low payment.
In the case of health care, the use of “reconciliation” appears to be a possiblity. That means, as an exception to the rule which now requires 60 votes for cloture on all measures of law, the Senate could require a mere majority (51 votes) to pass this monstrosity and see the government devour another 17% of GDP.
The game plan is fairly evident. Grace-Marie Turner, president of the Galen Institute, said in an interview:
“We really have a pretty good idea of the outline of the plan they are going to be proposing,” she said. They’ll want to “require everyone to have health insurance and require all employers to pay.”
Since some companies and individuals may not be able to afford that, the taxpayers will be told they are making up the difference, she warned.
The real danger, she suggested, is that with a government-run program, private insurance soon will start disappearing.
“If you expand access to government programs, more and more will drop private coverage,” she said. “A lot of this is going to be, I fear, replacing the private coverage with taxpayer supported coverage.”
That will just raise the costs even higher, and be the first step to what she expects eventually will be “a monopoly player.”
Routed through the government bureaucracy, the same inefficiencies that every government run health care service will emerge. And as with any system in which unlimited demand meets finite supply, some sort of rationing will take place. Since government will be the monopoly player, as Turner calls it, that rationing won’t be by price, as it now works, but instead by denial of service:
Already, she said, $1.1 billion is being allocated for “comparative effectiveness studies.”
That will be “what treatments are good and bad, what’s going to be available to us or not. That’s the first step toward rationing,” she said.
That $600 billion dollar “downpayment”, as Obama calls it, will eventually morph into a deficit of trillions. Why? Because the promise is low-cost universal health care. And there is no such animal that is worth a tinker’s dam.