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On Crony Capitalism and Serving Political Masters

April 25th, 2010 No comments

Ms. Docherty:

Please, spare me the victory lap! Being a wholly owned subsidiary of the Federal Government and their UAW cronies, it seems GM Management has picked up the politician’s predilection for lying by omission while insulting our intelligence. What arrogance!

Regarding the GM balance sheet, those of us paying attention know that the U.S. and Canadian governments decided, more or less arbitrarily, to classify some $6.7 billion of its aid as debt and an estimate of $52 billion in equity. That $52 billion represents nearly 90% of the government money given to General Motors. None of that has been repaid.

According to TARP Special Inspector General Neil Barofsky: “I think the one thing that a lot of people overlook with this is where they got the money to pay back the loan. And it isn’t from earnings….It’s actually from another pool of TARP money that they’ve already received. I don’t think we should exaggerate it too much. Remember that the source of this money is just other TARP money.”

Understanding that the last real, private company CEO was summarily dismissed by the current administration’s Mandarins, it’s obvious why you would lick the hands of your masters by carrying out their political directives. Pretending it is otherwise is disingenuous and only adds to the fury of taxpayers funding this outrageous crony capitalism. You know there’s only one real way for GM to regain respect of the cognoscenti.

Sincerely,

Ron Bischof

On Apr 24, 2010, at 1:27 PM, Your GM Team wrote:

Dear Ron,

We are proud to announce we have repaid our government loan – in full, with interest, five years ahead of the original schedule. We realize we still have more to do. Our goal is to exceed every expectation you’ve set for us. We’re designing, building and selling the best cars and trucks in the world. Like the award-winning Chevy Malibu, the all-new Buick LaCrosse, the versatile Cadillac CTS Sport Wagon and the innovative GMC Terrain, just to name a few. We invite you to learn more about the new GM and join our community, by visiting gm.com.

Susan E. Docherty
Vice President, U.S. Marketing

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