There's a lot of talk in Washington, D.C., Detroit, and on Wall Street about all kinds of things.
Some folks are talking about troubled assets, others about receivership, bankruptcy, and restructuring.
What no one seems to be talking about is the General Motors shareholders.
Everyone wants to talk about Obama and his plan to nationalize the car industry and create Government Motors.
The traditional mainstream media wants to report the story as a heroic rescue by Obama as he fought the evil greedy bondholders to get them to agree to the bankruptcy. Obama ,with an "S" on his chest, will make cars leaner and greener for the benefit of the world.
That's how the media wants you to understand the story.
But what about the shareholders?
The mainstream media doesn't want to tell you that you personally will lose from General Motors going bankrupt.
They don't want to report to you that probably in your 401k or IRA you have exposure to GM.
You probably own the stock directly because Americans have been buying GM stock for generations; it's something our fathers passed along to us.
In many cases, you'll find that GM, a former Dow Jones 30 component, was one of the investments for a mutual fund that you own in your retirement account.
And where are those retirement accounts now?
Last year, Americans lost over $2 trillion dollars in their retirement accounts, and who knows how much will be lost once the recession is really over.
All of this, and we haven't even discussed what will happen to actual GM workers who will be forced to live in fear, not knowing what will become of their pensions.
Most likely after GM finds out that their leaner, greener, government-mandated cars don't make the company break even, let alone become profitable, another bankruptcy may be possible.
And what may happen then?
You guessed it; the government may go in and slash the pensions, the money that actually will go to the workers of General Motors.
And how will the government justify this?
Well, the government has allotted up to 20 percent ownership in the new GM to the union. That should take care of all of the hard-working Americans who worked for a lifetime building cars for one of America's historic companies. Or at least that's what the mainstream media and the administration would like to have you believe.
GM employed 252,000 workers, as of their last annual report in 2008. What Americans do not know is that not every GM worker is part of the United Auto Workers Union. As the U.S. auto industry declined, Detroit's Big 3 cut down on the number of union workers and started to hire more non-union workers for manufacturing and production.
In case anyone wants to know what the non-union worker gets out of the new GM, the answer is nothing. Zip. Zero. Zilch.
So much for looking out for the American worker.
The real winner in this situation is the Obama administration, which now owns a major bank (Citigroup), an insurance giant (AIG), and now the largest U.S. auto manufacturer (General Motors).
With that power they can feel free to choose who gets what, where, and when.
The UAW was a big supporter of Obama during the campaign, and now the administration decided that the UAW should get up to a 20 percent stake of the new GM. Not the workers, not the people who actually do the work, but the union organization should own the new GM. It doesn't make sense.
In the big scheme of things, I guess the little guy didn't really matter in the Obama administration's quest to take over GM. The Obama administration got their piece, the union got their piece, and to make the deal work they had to give a small piece to bondholders.
But to the little guy, maybe the guy who had GM stock passed down to him from his dad, or the single mom who bought GM and tried to put some money in the stock market in hopes of achieving the American dream, they get nothing.
The shareholders get nothing. You get nothing. And, nobody is saying a single thing about it.
The media isn't talking about it. The administration isn't talking about it. All that we hear is that these measures are necessary and that this is what's best.
There is not even a single mention of the American people being robbed of the equity that they've been buying and building for the last 100 years.
Maybe there are people who think that we don't know better. Lucky for us, we do.
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