King Hussein Kills GM To Save UAW

King Hussein and his brownshirt auto task force hijacked the bankruptcy process and turned bankruptcy law on its head. The reason for it was simple: It was a political kickback for the UAW's financial support during the campaign.

I say this confidently because the UAW clearly got a sweeter deal than the bondholders. The United Auto Workers Fund, their health care trust, will get $585 million every year from GM, whether there's a profit or loss, in the form of a dividend on preferred stock.

Besides the bondholders, autoworkers and people who work in select dealerships will lose their jobs due to dealership and factory closings. That makes them losers in this deal too. The big winners are Gettelfinger and his cronies. This is because they take the earnings of union workers, in the form of confiscatory union dues, siphon off the donations, and donate to the Democrat Party. All the big labor unions do this.

The Obama administration took a tragic situation and turned it into an expensive mess to pay a political debt. It wasted billions of dollars over many months delaying GM’s filing and then implicitly put itself on the hook for many billions more. The financial, political and social echoes of that decision will be with us for a long time. In short, this was a train wreck that didn't have to happen. (HT Financial Times & Wasington Compost):

Financial Times: How Washington Blew GM’s Bankruptcy
Washington Post: GM's New Owner