Tag Archives: Left

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Did GM pay off its bailout loans by using other government loans?

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Story from Ed Morrissey at Hot Air.

Moderate Republican Chuck Grassley, who supported Obama’s bailouts, wants to know how GM paid off their debts. He wrote a letter to Treasury Secretary Tim Geithner.

Excerpt:

General Motors (GM) yesterday announced that it repaid its TARP loans. I am concerned, however, that this announcement is not what it seems. In fact, it appears to be nothing more than an elaborate TARP money shuffle.

On Tuesday of this week, Mr. Neil Barofsky, the Special Inspector General for TARP, testified before the Senate Finance Committee. During his testimony Mr. Barofsky addressed GM’s recent debt repayment activity, and stated that the funds GM is using to repay its TARP debt are not coming from GM earnings.

Instead, GM seems to be using TARP funds from an escrow account at Treasury to make the debt repayments. The most recent quarterly report from the Office of the Special Inspector General for TARP says “The source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account.” See, Office of the Special Inspector General for TARP, Quarterly Report to Congress dated April 20, 2010, page 115.

Furthermore, Exhibit 99.1 of the Form 8K filed by GM with the SEC on November 16, 2009, seems to confirm that the source of funds for GM’s debt repayments was a multi-billion dollar escrow account at Treasury—not from earnings.

[…]In reality, it looks like GM merely used one source of TARP funds to repay another. The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government’s ability to sell GM stock in the future. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity swap is not a repayment.

Ed summarizes:

In other words, this is just a shell game. As Jim Vicevich points out, it’s akin to paying off your Visa credit card with your Mastercard — and then bragging about your financial condition. Taxpayers are still on the hook for GM. Nothing at all has changed.

Instead, we have another good reason for government to refrain from bailing out private companies. It makes them act like government when it comes to transparency about their finances. This claim really does prove that GM now stands for Government Motors.

Michelle Malkin also has a good column here about MORE connections between Democrats and rich Wall Street investment bankers. The Democrats are tightly connected with large corporations and investment banks. As a small government conservative, I find this alarming and unsettling. I believe in separation of government and corporations.

Videos

ACORN CEO Bertha Lewis endorses socialism in leaked video

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Video here. (H/T Verum Serum)

Morgen at Verum Serum writes:

While labeling liberal Democrats and other progressives as “socialists” now invites an instant loss of credibility (even amongst many conservatives), it is a designation easily understood to mean someone who clearly does not believe in the primacy of individual responsibility and limited government. And so when a notable progressive publicly aligns themselves with the socialist cause, it presents a rare opportunity to demonstrate to the broader American public the core philosophy and the long-term agenda which underly so much of the “progressive” political platform.

ACORN, you remember, is Barack Obama’s former employer. He trained them in community activism. Community activism may mean suing banks to force them to make loans to people who cannot afford homes, wrecking the economy. And later, they can be bailed out by Obama, with your money. Bertha Wilson endorsed Barack Obama for president.

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Obama budget proposal likely to decrease charitable giving by billions

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Story here from Newsbusters.

Excerpt:

On the April 16 broadcast of Fox Business Network’s “Varney & Co.,” Rick Dunham, CEO of fundraising consultant Dunham & Company, weighed in on the new budget proposal that would scale back charitable deductions for families making over $250,000.

“Do you think you’re going to take a really big hit in terms of lower donations to charities? How big a hit?” host Stuart Varney asked.

“Well the Center on Philanthropy at Indiana University did a study last year to look at the impact of the rise in the marginal tax rate and the capping of charitable deductions at 28-percent and they believe that it’ll be about almost a $4 billion hit based on 2006 dollars,” Dunham said. “So we’re probably looking at about a $5 billion hit.”

“That’s a sizable chunk of money,” Varney said. “There has been some talk that the administration wants to control charitable giving, and direct where your charitable gifts should go, therefore do it through the government and not through private charities. You think there’s anything to that?”

Dunham didn’t reject the idea out of hand. “I think all the actions kind of lead that direction. Part of the challenge charities are facing right now is they’re coming off of two years of a decline in giving to charities,” Dunham stated, citing the approximate $12 billion decrease in charitable giving the last two years.

“The government has always encouraged it through the tax incentive. And I think that’s been a huge part of giving in America – that the government has stood behind private philanthropy by saying ‘we want you to invest in charitable institutions for the good they do to our society.’ And I think that’s what they’re beginning to undermine.”

This is similar to what happened in Europe. As the secular leftists welfare states grew, people paid more and more in taxes. People had no money after the high taxes to give to charity, because they had “already given” to state. It was the state’s job to take care of people, not private charities. People became very selfish and hedonistic, and religious practice and charitable giving declined.

The problem with this for Christians is that the state never uses tax money to achieve Christian goals. With a Christian charity, the goal is usually to give the person with money, but also to help the person up and out of their current situation. Christians aren’t trying to give a man a fish, they want to teach him how to fish. It also helps to feel a little humble when someone is helping you.