GM Reports $1.2 Billion Loss for 3rd Qtr … This is Good News? What High Standards They Have

Hooray … Happy Days at GM … $1.2 billion loss for 3rd quarter.

GM, Government Motors, has great news … - General Motors Co. says it lost US$1.2 billion since it left bankruptcy protection. This is reported as good news. Can you imagine what a bad report would be? Can you imagine that a $1.2 billion loss is considered good and shows progress?

GM said its improved performance was fueled by new products including the Chevrolet Camaro muscle car, and the Chevrolet Equinox and GMC Terrain midsize crossover vehicles. The company’s top sellers through October were the Chevrolet Silverado pickup truck and Impala full-size car.

Also, GM’s global presence helped the company, particularly in China, where its sales of 478,000 in the third quarter increased 6 percent over the second quarter.

The company cautioned that the earnings numbers mean little because they don’t comply with U.S. accounting standards and cover only the part of the quarter after GM left Chapter 11 bankruptcy protection on July 10.

Even more unusual is the $79.4 billion profit the troubled automaker is reporting for the first nine days of the third quarter, when it remained under bankruptcy court protection but was able to scrap colossal amounts of debt and other obligations from its balance sheet.

Just a hunch, but I don’t think any one will be buying GM stock any time soon.

Cash for Clunkers Program Turns Out to be a Clunker … Tax Payers Pay $24,000 Per Car

The might have want to have called it “a lot of cash for clunkers.” Tax  payers paid a total of $24,000 per clunker sold. 

Turns out that the much ballyhooed Obama government cash give away program “Cash for Clunkers” was a real clunker. Under the redistribution of wealth subsidy program, a total of 690K new vehicles were sold; however, according to the automotive web site Edmunds.com only 125K of those were vehicles that would not have been sold anyway. So not only did foreign car makers make a mint off the “Clunkers” program, tax payers paid about $24K per vehicle. What a bargain. We can hardly wait to see how the government will handle health care.

Making matters worse, a fabricated incentive car buying plan contributed heavily to the US economy’s 3red quarter expansion. Of the 3.5% increase, 1.7% came from car sales. Of course what percentage of the remaining 1.8% increase was from the government subsidy first time home buyers tax break? However, that is another post for another time.

However, here is some food for thought, what is going to happen to the auto sales in the future when some 125K individuals just pushed up the date they would have purchased a vehicle and only artificially enhanced this quarters economic numbers? Also, out of the people who bought cars, how many did so because of the $4000 rebate and may not be able to pay the car loans? Sounds a bit similar to the mortgage crisis that go us into this mess in the first place. Can we look forward in the future to a bail out of the cash for clunkers participants?

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Labor Day Poll: Labor Unions Down Sharply in Public Support … Majority Believe that Unions Hurt US Economy

On this Labor Day 2009, check out the following Gallup poll regarding Labor Union approval/disapproval, via Powerline. Only 48% of Americans approved of unions. This represents the first sub-50% approval since Gallup first asked the question in the 1930s. By a 51% to 39% amount, Americans are saying that Unions hurt the general economy.

Gallup finds organized labor taking a significant image hit in the past year. While 66% of Americans continue to believe unions are beneficial to their own members, a slight majority now say unions hurt the nation’s economy. More broadly, fewer than half of Americans — 48%, an all-time low — approve of labor unions, down from 59% a year ago.

Less than half of Americans now approve of Unions. This is really some damning polling for unions.

Labor Union support has fallen to an all time low in American public support. As Michelle Malkin states, Big Labor, Big Trouble.

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Rattner Off Dancing with the Czars: Car Czar Steven Rattner is leaving Obama as SEC Probes Intensify

Because Change is such a hard word to define …

Barack Obama car Czar Steven Rattner, leaving so soon? Steven Rattner will be no longer Dancing With the czars.

Steven Rattner will depart as head of the U.S. autos task force that oversaw unprecedented bankruptcies at General Motors Corp and Chrysler Group, Treasury Secretary Timothy Geithner said on Monday.

Ron Bloom, a senior member of the White House/Treasury Department task force and a former Wall Street executive and labor restructuring expert, will take over day-to-day responsibilities for Rattner, who will soon return to private life in New York, officials said.

Rattner is a former journalist, investment banker and co-founder of private equity fund Quadrangle, which he left in February to join the Obama administration.

I am sure it has nothing to do with the New York AG probe of Steven Rattner pension ties heating up.

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Obamanomics: US Unemployment Rate Climbs to a 26 Year High at 9.5%

Obamanomics you can believe in … More Obama change you can believe in … Jobless claims higher than expected as 467,000 jobs lost in June, driving the unemployment rate up to a 26-year high of 9.5 percent. The economic carnage continues and everything that Obama has done or proposed has not helped, in fact it might have made matters worse.

The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on a solid ground. June’s payroll reductions were deeper than the 363,000 that economists expected.

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JUSTICE: Bye, Bye Bernie … Ponzi Scheme Swindler Bernard Madoff Get Maximum 150 Years in Prison

Although no amount of prison time makes up for the billions that Madoff defrauded from the rich and poor alike, 150 years makes for some nice retribution.

Justice has been served in the Madoff Ponzi fraud. Bernard Madoff will not be seeing the light of day any time soon. Madoff was sentenced to 150 years for orchestrating the largest financial swindle in history. There is a special spot reserved in hell for Madoff for the thousands of unsuspecting people that he defrauded and stole their life savings. Previously a judge had ordered that Madoff forfeit $170 billion.

Madoff, from the penthouse to the big house

Bernard Madoff, the self-confessed author of the biggest financial swindle in history, was sentenced to the maximum 150 years behind bars for what his judge called an “extraordinarily evil” fraud that shook the nation’s faith in its financial and legal systems and took “a staggering toll” on rich and poor alike.

As one of the Madoff victims told the court, “Commit Madoff to prison for the rest of his life. “May Satan grow a fourth mouth where Madoff can spend the rest of eternity.”

The landmark sentence, one of the stiffest ever given for a white-collar crime, came just six months after Mr. Madoff, a pioneer on Wall Street, allegedly told his sons that his entire business was a massive Ponzi scheme. The penalty sparked a burst of applause in a courtroom packed with victims of the fraud.

Yet another example of why we hate defense attorneys. Check out this circular logic for defending his client. Some how because the defrauded money went to other investors, that’s supposed to lessen what Madoff did.

Mr. Madoff’s attorney, Ira Sorkin, said that Mr. Madoff was a “deeply flawed individual” but maintained that most of the fraud money went to other investors. He added that the $13 billion figure cited by the government as the net losses suffered by account holders since 1995 was overstated, since at least $1 billion in recovered assets will be returned to investors, and perhaps a lot more. The judge said that was irrelevant to the case. Mr. Sorkin said Mr. Madoff deserved only 12 years in prison, since he was 71 and had helped the government in its investigation — a statement Judge Chin questioned.

Ruth and Bernie Madoff … say good bye to the penthouse and Bernie, say hello to the big house.

Report: Ruth Madoff Agrees To Forfeit $80M

UPDATE I: Could 10 More People Face Charges in Madoff Ponzi Scheme Scandal?

It is rather hard to believe that only one man knew what was going on during the largest financial swindle in history. Will more be charged?

Federal authorities are pressing a probe of 10 associates of Bernard Madoff despite a sentence that means the mastermind of one of the biggest financial frauds in history will spend the rest of his days behind bars, The Associated Press has learned.

A person, who spoke on condition of anonymity because the investigation is ongoing, wouldn’t detail potential charges or say whether the 10 would include Madoff’s family or former employees. So far, only Madoff and an accountant accused of failing to make basic auditing checks have been criminally charged in the multibillion-dollar hoax.

GM (Government Motors) Chairman Edward E. Whitacre Jr Admits He Knows Nothing about Cars … Good Grief

Quote of the Day … GM’s “success doesn’t hinge on automotive experience.”

If you ever needed to know anything when it comes to GM (Government Motors) all you have to do is read the very comments from their new Chairman, Edward E. Whitacre Jr … he knows nothing of cars.

“I don’t know anything about cars,” Whitacre, 67, said yesterday in an interview after his appointment. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.”

What to make a bet that all industries are not the same and that a certain amount of expertise in the field that one is leading does not make a difference? Every wonder why the government should never get involved in corporate America? They believe for an auto company to succeed, “success doesn’t hinge on automotive experience.” Sorry, but a working knowledge of the industry is required … not all industries are created the same … that’s only in socialism.

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Owners … Stock Shareholders of GE Asking Critical Questions Get Their Mics Turned Off

Question to GE top execs, Immelt and Zucker, who owns GE? The answer is the stockholders and you might want to remember that! If you own GE stock you are already pretty much toast. However, an interesting thing happened during GE’s annual shareholders meeting attendees apparently were very upset with the increasing leftward tilt of MSNBC. For those who do not know or deny their is a liberal bias, maybe the fact that they cut off people’s microphones who where critical of of the company will answer that question. Taking away the voice of the shareholders … nice job GE. According to this report, some people who were critical of GE’s policies had their microphones cut off. As Reuters referred to it, Political drama at GE shareholders meeting. Hell, who needs liberal bias at MSNBC when you can get it at Reuters? Did anyone think that maybe individuals who work for Fox News might be GE stockholders.

But one of those questions came from Jesse Waters, a producer on “The O’Reilly Factor” whose criticisms were cut short when his microphone was cut off, according to several attendees. Waters apparently did not publicly identify himself as a Fox employee. Waters has built a reputation as an ambush interviewer, specializing in on-the-street confrontations. But this is arguably the boldest move by a Fox newsperson to use the tactic inside their chief rival’s tent, as it were.

Think this will not be a report on Bill O’Reilly tonight?

Watch the VIDEO of confrontation when Factor” producer, a GE shareholder, Jesse Watters asks a simple question regarding ugly comments by Janeane Garofalo on MSNBC. Pay close attention to the reaction to Watters question and Immelt’s response.

Freddie Mac Acting CFO David Kellermann Found Dead in Basement of Virginia Home

Hmm … Freddie Mac Acting CFO David Kellermann was found dead in the basement of his County, Virginia home. According to reports there was no sign of foul play. Kellermann’s wife told local police he committed suicide. Kellermann, 41, became the acting chief financial officer of Freddie Mac in September, replacing Anthony S. Piszel. Freddie Mac, financial scandal, no sign of foul play … let the speculation begin and who really was on the grassy knoll that morning?

Freddie Mac Acting Chief Financial Officer David Kellermann, 41, was found dead early today in the basement of his home in a Washington suburb, police said.

There were no signs of foul play, and the death is under investigation, Fairfax County, Virginia, Police Officer Shelley Broderick said. She said early reports from others in the department indicated Kellermann’s wife reported a suicide. The medical examiner’s office said it’s conducting an autopsy, and the results may be released as soon as today.

Obama Wants Increased Oversight of Executive Pay at all Banks, not Just TARP Banks … Hello Socialism

Increased oversight of bank executive pay … code for socialism. We did not need further oversight, we needed politicians to do their job and provide some sort of oversight at all. This is just a CYA by politicians and a socialist power grab by Barack Obama. Does anyone really wonder why the stock market continues to struggle? This Monday embattled Treasury Secretary Timothy Geithner aims to purchase as much as $1 trillion in troubled assets. That’s correct, tax payer dollars going to pay for toxic debt that no one wants. Hold the phone, as Geithner and Obama roll out yet another spending plan, pay close attention to these comments from The Chosen One … The Obama administration will call for increased oversight of executive pay at all banks. Not just banks that accept federal TARP money … ALL BANKS!!! Banks that did nothing wrong, were responsible and have effective business models will now be regulated by an Obama socialist government as to how much effective CEO’s and execs are paid. Ceilings on what a productive individual can be paid … Hello Socialism.

The new rules will cover all financial institutions, including those not now covered by any pay rules because they are not receiving U.S. government bailout money. Officials say the rules could also be applied more broadly to publicly traded companies, which already report about some executive pay practices to the Securities and Exchange Commission. Last month, as part of the stimulus package, Congress barred top executives at large banks getting rescue money from receiving bonuses exceeding one-third of their annual pay.

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