Thursday, November 18, 2010

What's a Little Fraud Among Friends?

I think I'm going to stay with the disco theme. I secretly loved disco, but had I ever told my friends that at the time- they would have beat the shit out of me. Dig the hair. On the chest.

Today was the great Government Motors rebirth and initial public offering. Alas, some things are better off dead. The curious case of GM is one of them. Priced at thirty three bucks a share. Get your put options ready.

Yesterday, I saw some fund manager or muckety muck on CNBC say that he thought any business that was government controlled or owned should be sold immediately. I almost spewed coffee on the keyboard. I can't wait for the United States Post Office initial public offering. Where will they price that?

General Motors should have been allowed to fail. Their pension plan and union contract with free health benefits for life was simply not sustainable. Remember Obama essentially firing GM CEO Rick Wagoner as they were taking that mess over? What the fuck business does a President have firing anybody in the private sector? Wagoner was just a burnt offering for the masses. To make the great narcissist in chief look good. What the hell were we thinking? Where in the constitution or anywhere else for that matter, does it authorize government to use our money for this?

So let me figure this out. GM went bankrupt giving shareholders and bondholders a big loss. Then they spent our tax money saving them and extended our losses. Now, they want us to buy this union run piece of garbage again. Buy Chevy Volts! A huge bargain with a base sticker price of 41, 000 plus tax or about 45, 000 in California. 

Do you remember the big pissing match Obama had with Wagoner over the pricing of the Volt? Wagoner was told to hold the price near 30k. He said because of energy drains on the a/c and stereo the price was going to rise to 35k as engineers were looking for ways to resolve those issues. Thankfully Obama, Wagoner's new government master, won out. 

At this new bargain price, I might buy two of these things before I get priced out next year.

P.S. Perfect.

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