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No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for September 9th, 2009

Patriot

by @ 21:59. Filed under Health Care Reform, Obama worship, Politics - National.

Joe Wilson, Representative from South Carolina was the voice you heard shouting “liar” during the President’s speech tonight.  The look on Pelosi and Plugs faces are priceless.

If President Obama thought this issue was just going to go away with a few lofty words, he was mistaken. I commented in the live blog tonight that if this had been a real “house of the people” meeting, the tepid response for Pelosi and others would likely have been replaced with the throwing of rotten tomatoes.

My hat’s off to Joe Wilson.

The original intent of the Obama school address?

by @ 21:30. Filed under Health Care Reform, Politics - National.

(H/T – Soapbox Jill)

While Obama more-or-less restrained his hyper-partisan tendencies in the national address to The Young Skulls Full of Mush (© Rush Limbaugh) yesterday, he wasn’t quite as restrained before the cameras rolled with the students at Arlington, Virginia’s Wakefield High School. He was busy trying to recruit said skulls full of mush into the full-blown socialization of health care he has been pushing for the last several years.

I wonder if pressuring the parent(s) into supporting higher taxes for lower-quality care was one of the things the children were supposed to say they were going to help Obama with.

Paul Ryan response to Obama

by @ 21:03. Filed under Health Care Reform, Politics - National.

I need a sober analysis of the ObamaCare rah-rah speech. Fortunately, my Congressman, Paul Ryan (R-WI), provided one:

WASHINGTON – Wisconsin’s First District Congressman Paul Ryan tonight issued the following statement in response to President Barack Obama’s health care address to a joint session of Congress:

“Tonight marked the President’s 28th major health care address this year. As thousands of Wisconsinites made clear to me at my health care town halls in August, we don’t need another speech; we want a fresh start on real reform – patient-centered, fiscally-responsible reform. The President delivered an articulate speech, but his plan fails to fix what’s broken, and instead breaks what’s working.

“The Washington-centric health care overhaul being pushed through Congress is not the only way to tackle this issue. Wisconsinites know better; Wisconsinites deserve better. Democrats, Republicans, and Independents alike continue to offer substantive alternatives – proving that we can have universal access to health coverage in America without the government taking it over, without trillions in new taxes, spending, and debt. If President Obama is sincere in asking for better ideas – ideas that can garner bipartisan support – he must be willing to consider them.”

—

For the latest on the health care debate from Congressman Ryan, including details on Ryan’s comprehensive health care reform alternative – H.R. 2520, The Patients’ Choice Act – please visit: http://www.house.gov/ryan/healthcare.

You’re All Liars

by @ 21:01. Filed under Health Care Reform, Obama worship, Politics - National.

President Obama stood before the joint Congress this evening and said everyone who has read the actual words of HR 3200 were succumbing to “bogus claims”.  From his speech:

Some of people’s concerns have grown out of bogus claims spread by those whose only agenda is to kill reform at any cost. The best example is the claim, made not just by radio and cable talk show hosts, but prominent politicians, that we plan to set up panels of bureaucrats with the power to kill off senior citizens. Such a charge would be laughable if it weren’t so cynical and irresponsible. It is a lie, plain and simple.

There are also those who claim that our reform effort will insure illegal immigrants. This, too, is false – the reforms I’m proposing would not apply to those who are here illegally. And one more misunderstanding I want to clear up – under our plan, no federal dollars will be used to fund abortions, and federal conscience laws will remain in place.

My health care proposal has also been attacked by some who oppose reform as a “government takeover” of the entire health care system. As proof, critics point to a provision in our plan that allows the uninsured and small businesses to choose a publicly-sponsored insurance option, administered by the government just like Medicaid or Medicare.

I won’t dissect each of these issues as it’s been done numerous times across the net.

The only thing I learned during tonight’s speech is that it’s not a good idea to play a drinking game where you drink each time Nancy Pelosi blinks.  It’s a good think I was already home!  Obama could have saved us all a bunch of time and just told us to reread HR 3200.

For the past several weeks, each time President Obama attempted to refute provisions of the plan, favorability ratings for both himself and support of the plan dropped.  I’m left with just one question after tonight’s speech:  After calling more than half of America liars, is it possible to have a favorability rating less than zero?

Drunkblog – sloshing through the pitch for the Chappaquiddick Memorial ObamaCare bill

by @ 15:41. Filed under Health Care Reform, Politics - National.

Since I haven’t done a drunkblog for a while, I may be a bit out of practice. Oh well; I figure I may as well double-barrel things, with the vulgarities here and a presence over at the Hot Air liveblog. I’ll have that link and others up when they become available.

Revisions/extensions (6:55 pm 9/9/2009) – And here they are…
– Ace of Spades HQ
– Vodkapundit
– Hot Air (Part 1 run by Allahpundit/Part 2 run by Ed Morrissey
–

As always, I must remind you that I paraphrase a lot. Since I’m not anticipating press questions, stuff from Obama will be in italics and my thoughts will be in plain text.

Cap-and-tax would hurt Wisconsin says…Russ Feingold?

by @ 12:41. Filed under Economy, Global "Warming", Politics - National.

WisBusiness.com reports that Sen. Russ Feingold (D-WI) admits at a WisPolitics.com (sister web publication) luncheon that the cap-and-tax (H/T for the term – the muzzled Rep. Jim Sensenbrenner, R-WI) scheme before the Senate would hurt Wisconsin:

I’m not signing onto any bill that rips off Wisconsin,” Feingold declared, arguing the bill’s mandatory caps on greenhouse gas emissions could put the coal-dependent Badger State at an economic disadvantage compared to other regions and nations….

At the same time, Feingold said he’s “troubled” by some of his constituents’ refusal to accept the principles of global warming, but agreed with some critics who have said the bill could stifle job growth in the industrial sector and increase energy prices.

“Western Wisconsin is particularly strong in being concerned about this because of their reliance on coal,” Feingold said of the bill, which has already passed the House. “There is a real possibility … that it will be unfair to Wisconsin and Wisconsin ratepayers.”

As the selected excerpt shows, it is not all rainbows and roses. Feingold merely wants to spread the pain of “dealing” with a non-problem around, not remove the pain. There is no such thing as man-caused global “warming”, or even man-caused climate “change”.

As the wheels turn, UAW/Government Motors edition

by @ 12:24. Tags:
Filed under Business, Politics - National.

Revisions/extensions (6:45 pm 9/9/2009) – With a tip of the hat to Owen, we have some more-daunting US-specific numbers from the AP, as well as a Idiotic Quote of the Day nominee. Given that, and a review of the actual report, I’ve decided to ReWrite™ the entire post. The original post is archived and struck through below.

The Congressional Oversight Panel, in charge of keeping track of money expended by TARP, issued a report asserting that most of the $14.3 billion spent on UAW Motors and its predecessor, Chrysler LLC, the $49.9 billion spent on Government Motors and its predecessor, General Motors Corporation, and $16.9 billion spent on other elements of the automotive industry will never be repaid. I’m shocked, SHOCKED to find this out.

Let’s review what happened to the money that went out the Treasury door to the two big auto companies:

  • Chrysler LLC (now known as Old Carco LLC)/Chrysler Financial/UAW Motors:
    • Originally-loaned-and-used amounts ($14.31 billion total; does not include credit facilities not used):
      • $4 billion went to Chrysler on 1/2/2009
      • $1.5 billion went to Chrysler Financial on 1/16/2009
      • $280 million went to Chrysler for warranty obligations on 4/29/2009
      • $1.89 billion in used Debtor-In-Possession financing went to Chrysler in May
      • $6.64 billion went to UAW Motors in the form of senior secured debt when it emerged from bankruptcy
    • Repaid amounts ($1.78 billion total):
      • $1.5 billion (the entirety) of the Chrysler Financial loan repaid
      • $280 million (the entirety) of the Chrysler warranty loan repaid
    • Remaining obligations ($12.53 billion):
      • $7.14 billion owed by UAW Motors in the form of senior secured debt (includes $500 million of the original $4 billion loan assumed by the new company)
      • $5.39 billion owed by Old Carco LLC in the form of unsecured debt, not expected to be repaid as the assets of the old company are expected to be exhausted before secured debtors are paid in full
    • Assets owned by the US Treasury:
      • 9.85% of UAW Motors common stock (to be reduced to as low as 8% if Fiat meets up to alll three of its goals to raise its stake from 20% to 35%)
      • A claim of the greater of 40% of Chrysler Financial’s equity value or $1.135 $1.375 billion, to be applied toward repayment of the original $4 billion loan

  • General Motors Corporation (now known as Motors Liquidation Company)/Government Motors:
    • Originally-loaned-and-used amounts ($49.89 billion total; does not include a $880 million loan to GM made on 12/29/2008 in exchange for GMAC equity):
      • $13.4 billion went to General Motors on 12/31/2008
      • $2 billion went to General Motors on 4/22/2009
      • $4 billion went to General Motors on 5/20/2009
      • $360 million went to General Motors for warranty obligations on 5/27/2009
      • $30.1 billion in Debtor-In-Possession financing went to General Motors in June and July
    • Repaid amounts ($360 million total):
      • $360 million of the DIP financing repaid (the report scores it as a Government Motors debt repaid, though it was repaid before Government Motors assumed its portion of the DIP debt)
    • Obligations that went toward buying 61% of Government Motors common stock ($39.7 billion total) and $2.1 billion of Government Motors prefered stock (all toward the common stock unless otherwise noted):
      • $13.4 billion (the entirety) of the 12/31/2008 loan
      • $2 billion (the entirety) of the 4/22/2009 loan
      • $4 billion (the entirety) of the 5/20/2009 loan
      • $360 million (the entirety) of the 5/27/2009 warranty loan
      • $19.94 billion of the DIP financing for common stock
      • $2.1 billion of the DIP financing for prefered stock
    • Remaining obligations ($7.7 billion):
      • $6.71 billion of former DIP financing owed by Government Motors in senior secured debt
      • $990 million of former DIP financing owed by Motors Liquidation Company in a Wind-Down Facility, which is secured debt
    • Assets owned by the US Treasury:
      • 61% of Government Motors common stock
      • $2.1 billion of Government Motors prefered stock

The CNN story referenced in the original post notes that the $5.4 billion given to UAW Motors is as good as gone. I haven’t seen any plans on how the US and Canadian governments plan to divest themselves of their stakes in the company, but I doubt they’ll get more than $1.1 billion for the remains of Chrysler Financial or $4.3 billion for an 8% stake in UAW Motors.

Meanwhile, The Wall Street Journal reported in July that Government Motors plans on having an IPO sometime in 2010, with full divesture in 2018. Does anybody believe they’ll get $40 billion for 61% of GM or $2.7 billion for the non-voting prefered stock?

That does not address the possibility that UAW Motors and Government Motors will either dip back into the public trough or re-enter bankruptcy. In that case, even the secured debt might not be paid back in full.

That brings me to the Idiotic Quote of the Day. Let’s have the AP deliver it:

“I think they drove a very hard bargain,” said Elizabeth Warren, the panel’s chairwoman and a law professor at Harvard University, referring to the Obama administration’s Treasury Department. “But it may not be enough.”

Hard bargain? For full repayment of the TARP moneys, the Congressional Oversight panel estimates Government Motors would need to reach a total market capitalization of $67.7 billion and UAW Motors would need to reach a total market capitalization of $57.5 billion. That compares very unfavorably to General Motors’ peak market capitalization of $57.2 billion in 2000 (not adjusted for inflation). Further, if memory serves, Chrysler was never worth more than about $25 billion.

Shoebox pointed to a CNN story that says that much of the $60 billion in tax dollars provided to both UAW Motors (nee Chrysler) and Government Motors (nee General Motors) will not be paid back. I’m shocked, SHOCKED to find this out.

Let’s review what happened to the money that went out the door:

– Something north of $13.4 billion from both the US and Canadian governments went to UAW Motors and its predecessor, Chrysler LLC, with $6 billion of that converted to senior secured debt held by the new UAW Motors, and an additional $2 billion spent to buy the assets of Chrysler LLC in exchange for 12.31% of UAW Motors (to be reduced to as low as 10% if Fiat meets certain goals). The remaining $5.4 billion, all unsecured debt, remained with Old Carco LLC, which will almost certainly run out of money and assets before it completes paying the $5 billion it owes its secured debtors.

– Somewhere around $50 billion went to Government Motors and its predecessor, General Motors Corporation, with $7.07 billion in Debtor-In-Possession financing converted to senior secured debt held by the new Government Motors and an additional $1.18 billion in DIP financing converted into a Wind Down Facility loan held by Motors Liquidation Company and given senior secured debt status. The remaining $42 billion was forgiven in exchange for the governments’ nearly-73% share in Government Motors.

The CNN story notes that the $5.4 billion given to UAW Motors is as good as gone. I haven’t seen any plans on how the US and Canadian governments plan to divest themselves of their stakes in the company, but I doubt they’ll get $2 billion for less than 10% of the company.

Meanwhile, The Wall Street Journal reported in July that Government Motors plans on having an IPO sometime in 2010, with full divesture in 2018. Does anybody believe they’ll get almost $42 billion for 73% of GM?

That does not address the possibility that UAW Motors and Government Motors will either dip back into the public trough or re-enter bankruptcy. In that case, even the secured debt might not be paid back in full.

Just Say No!

by @ 9:46. Filed under Health Care Reform, Politics - National.

Tonight, President Obama will once again fill the living rooms of America.  Again he will be telling us that we have a crisis at hand and that “doing nothing is not an option.”  It’s being reported that he will make a clear and compelling argument that a government option is the “best way to introduce competition into they system.”  In essence, Obama’s argument this evening will ask us to trust the government to insert themself into a large, complex industry and that there will be no adverse affects to the overall system or end users.

This morning it is being reported that much, my guess nearly all, of the money lent to GM and Chrysler will be complete write offs for the American taxpayer.  Big surprise that!  Any high school accounting student could have told you that any money put into either of these companies had no expectation of being repaid.  Automotive is a large, complex industry that government has inserted itself into with unsuccessful results.  In fact, if you are one of the dealers who were closed even though you a major employer in a small community, had successful sales and high customer satisfaction, you’d say the results of government intervention were disastrous!

Yesterday, Senator Max Baucus released a framework for a health reform plan that has been worked on by a “Gang of Six” from the Senate.  Within the grand plan of Senator Baucus are still mandates for health care purchases, penalties on those who don’t and a government option, now called a coop. 

What is not in Senator Baucus’ plan is anything puts free market leverage on the health care system.  In fact, in one of the few attempts to put free market window dressing in his plan, where Baucus addresses removing the interstate sales restrictions on health insurance, there is no mandate for the removal.  Rather, Baucus’ plan allows states to from “compacts” amongst themselves that would allow insurance companies to sell across state lines of those within the compact.

The Baucus plan ends up being just the most recent attempt at “reform” who’s only real reform is using new words to describe an eventual government take over of the health care system.

Regardless of what is or isn’t included in the various attempts at health care to date, they all need to be scrapped.  Making anything of quality, be it a manufactured item, art or even food, usually requires following a specific process.  Even if you have the correct ingredients, it doesn’t work to just mix them or put them together in just any order you want.  While the current attempts may have some pieces that are worth discussing, none of them have been put together in the correct way.  Until we get a plan whose first ten precepts are based on increasing the leverage of the free market on health care, we should refuse to debate, opine or offer advice on them.  We should take the advice of Nancy Reagan and “Just say no!”

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