Skip O'Neill – Liberty for All

Ron Paul for A New Direction

Archive for December 2008

Car Czar

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  The idea that the Federal Government is going to appoint someone that can solve the automaker’s problems would be unbelievable if it didn’t come from the…the Federal Government.  I am sure you have seen, that we’re to accept that a tough, smart business or political type is going to force the automakers and unions to come to a permanent solution, and in the process, dictate what type of “green” autos it deems the customer to need (not want).

Perhaps the strongest case against Government involvement is the conflict of interest.  In the last election, the United Autoworkers gave nearly $2 million to political candidates (99% of that to Democrats).  And nearly all that came from Political Action Committees.  Over the last ten election cycles, the UAW has given $25 million to politicians (again, 99% to Democrats).  Why isn’t anyone talking about this? 

Written by opinionoregon

December 23, 2008 at 5:55 pm

Auto Bailout Part 2

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I have wanted to believe that President Bush was at least partially a conservative with ethics that were cemented in what is right and what is wrong.  Well, the auto bailout (17.4B) just put me over the edge.  When is this non-sense going to stop?  Take Chrysler for example.  In 2007, Cerberus Captial Management firm purchased an 80% stake in Chrysler for $7.4B.  A year later, Chrysler is in trouble and their owners (who have the money) do not deem it a wise investment to fund Chrysler.

The story behind the story is that President  Bush’s former Sec of Treasury (John Snow) is now the Chairman of Ceberus.  So the bailout is just a means to “help out his friends” with a bad business decision.  You think that is bad, Dan Quayle (former VP) is also part of Ceberus as well.  We must stop the madness or thee won’t be any trust left in our leaders.  Let them file chapter 11.

Written by opinionoregon

December 20, 2008 at 9:28 pm

Auto Bailout

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Here is what should happen; the big three auto companies should file Chapter 11.   As part of the process, the auto makers renegotiate their legacy retiree benefits, all current worker agreements (including the executives), and then either restructure the unions or disband them altogether.  The federal government should relax or remove the ability for the automakers to import their own cars (that they sell in Europe) to America.   These cars are very popular in Europe and are not allowed in the U.S.   In addition, the gov’t should recapitalize the newly formed versions of the auto makers with foreign equity investment.  Think of this, if Toyota owned half of the newly slimmed down Ford, there wouldn’t be an issue regarding the survivability of Ford, which would supposedly hamper auto demand from a bankrupt company.

Written by opinionoregon

December 18, 2008 at 3:40 am

Auto bailout and IL

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The Senate republicans are being blamed for the failure of GM. Funny, I wasn’t sure they knew how to run an auto company. Who’s to blame are the leaders who caved in to the UAW demands a few years ago when business was good. If you listened to the news conference this morning by the UAW team, you’d think that the sole reason for the failure are the 32 republicans who voted against the bailout package.

The antics by Harry Reid and his team coupled with the IL governor are laughable. If they stay true to their principals, the next few years will be a three ring circus.

Written by opinionoregon

December 12, 2008 at 8:06 pm

Mortgage Bailout

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monopoly-house

Get this, Obama has warned that “things are going to get worse before they get better”.  Worse for whom, for those who are already in trouble with their mortgages?  What about those who are not in trouble.  I see it as getting worse for the taxpayer.  

Is Obama really going to offer some sort of homeowner / mortgage bailout to those individuals who are struggling to meet their payment obligation?  What about all of those homeowners, who are current on their mortgage payments, who have made cuts in other areas of their lives to make sure they honor their obligations. 

Whatever happened to personal accountability?  Having the U.S. government create “rescue” fund to help people in trouble to refinance their mortgages is a slap in the face to all of those who take responsibility for their actions and make informed decisions before entering into a high risk mortgage.  If Obama gets his way and offers government refinanced mortgages, who qualifies?  Those who are behind?  And will they be financed with printed monopoly money?  This is the price we pay for ignorance.

Economic Bailout

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It’s not as if I actually endorsed the bailout program, but as of today I am withdrawing my support for any Government involvement in trying to solve the Credit Crisis and the Global Recession.  The TARP, (original $700B) as originally conceived, was an auction mechanism, modeled after the highly successful RTC, whereby banks could sell illiquid asset backed securities to the Government which would turn around and sell them to the private market.  It wasn’t a “bailout” as the press decried, since it did nothing to ensure the survivability of the bank.  Now, we have in its place a boondoggle of a bailout. 

Here is a better plan, that will cost the government less than half of the original plan ($700B) and it will help to jumpstart the economy for growth.  The Obama people should take note since they are already planning for his reelection in 2012:

  • Eliminate the punitive Alternative Minimum Tax (AMT) $30B
  • Cut the Corporate Tax Rate in half (we have the 2nd highest rate in the Developed World) $170B
  • Make permanent the Capital Gain Tax rates $150B

Those changes would do more to create lasting economic strength than any of the Government schemes that have been discussed to date, based on throwing good money after bad and failed Keynesian ideas.

Written by opinionoregon

December 2, 2008 at 11:13 pm