Folks have their knickers in a collective knot about the fact that the Obama administration mucked about in their loan from the American public to ensure that private shareholders got paid first. And rightly so. But seriously, this is not the first time that the administration has intervened in order to get their cronies paid off first.
All one needs to do is look at GM. There is this item by Mickey Kaus this morning about UAW workers getting bonuses to the tune of $5000/worker (BTW, this article states that GM has 48,000 workers, so that equals $240,000,000-a quarter billion dollars). This is happening BEFORE the American public is getting paid back its $15 billion that was used to turn General Motors into Government Motors.
But this Bloomberg article from 2009 clearly states that shareholders got sidelined, at the behest of the Obama administration.
It seems to me that the GM and Chrysler bailouts were dry runs for this type of cronyism payout scheme. Solyndra was more of the same, except there are some pesky laws that might actually have to be enforced by the DoJ. You know, the criminal ones that are supposed to punish people who deliberately set out to defraud the American government. Martha Stewart ended up in the slam for this, even though the 'evidence' in her case was very slim. In this case, it was very public and the Obama administration aided it and Obama himself created a false impression by hailing Solyndra as his poster child for green energy in 2010.
The government is supposed to be an advocate for the taxpayers in this type of situation--it's part of being the steward of taxpayer funds and they have not and are not maintaining that public trust. The Obama adminstration has shown very clearly in both of these situations that it is more interested in keeping its friends wealthy and happy and is more than willing to use our hard-earned dollars to make it happen.
2 days ago