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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Government takeovers, broken promises and fraud in Detroit? (Nooooo...)


    By Nick, Section News
    Posted on Tue Apr 28, 2009 at 07:40:56 AM EST
    Tags: 2010, gubernatorial, Williamson, GM, Obama, Reeves, Detroit City Council, fraud, corruption, whistleblower, racism (all tags)

    Welcome to another swine-flu-free edition of RightMichigan.com.  That's right, ladies and gentlemen, boys and girls, today's blog is brought to you using one-hundred-percent sans influenza.  No pork was consumed at RM HQ today and no animals were harmed in the making of this blog.

    Alas, the good news seems to stop there.  Raise your hands if you DIDN'T see this one coming... General Motors new restructuring plan, the one being proposed this week by the CEO and the Board of Directors President Obama personally appointed, is going to propose nationalizing the company and ceding complete operational authority to the federal government.  Because that management structure worked so well in the old Soviet Union.

    The Detroit News reports:

    The U.S. Treasury Department would own a majority of General Motors Corp. and have the right to appoint all of its directors, under the company's turnaround plan unveiled Monday -- the latest sign of the government's growing role in the automaker's restructuring.

    The administration also told the Detroit automaker it wouldn't support giving bondholders any more than 10 percent equity in the company.

    The bondholders, obviously, aren't happy.  And neither should be the Michiganders working at GM plants or relying on those retirement checks.  Many expect this move is a precursor to a bankruptcy filing and a messy round of fire sales and layoffs.

    15 percent unemployment, here we come.  Tomorrowish.  And thanks specifically to the Obama administration.  

    By this point we should be used to Democrats behaving badly, though.  The locals here in the Great Lakes State aren't exactly going to win citizenship awards any time soon, either.  Over in Flint we've got the former mayor and potential 2010 Democratic gubernatorial candidate Don Williamson making a liar out of himself and demanding $600,000 in back pay from the city.

    Read on...

    When Don was elected he offered (and bragged endlessly) that he would work for $1.  Next thing you know the guy stinks as Mayor, has dust ups with folks across the city and resigns, disgraced.  Now he wants the cash he'd forgone all those years.  The Flint Journal reports:

    Resident Tom Prieur said the whole episode is strange, but he believes Williamson is simply trying to confuse the public. No matter what, Williamson is going back on his word, Prieur said.

    "This has struck me as odd in a lot of respects," he said. "But the whole thing is very disappointing to me. I grew up on the philosophy of living up to your word."

    Alas, living up to your word doesn't get you anywhere in Lefty politics, Mr. Prieur.  Exhibit B: Detroit.  The Ivory Tower reports that Democratic City Council member, former Motown sensation and current loony toon Martha Reeves is being hit with a big lawsuit because she and the (alleged) racists in her office effectively fired a whistleblower who had found, identified and sought to eliminate fraud being perpetrated against Detroit's taxpayers.  Allegedly.  

    A former city employee has sued the City of Detroit and Councilwoman Martha Reeves, claiming Reeves retaliated against her for trying to alert the councilwoman about employees inflating their work hours and falsifying time records.

    Carolyn D. Chambers, a former office manager for Reeves, filed the lawsuit Monday in U.S. District Court in Detroit. The lawsuit also names Thomas Stephens, a former Reeves aide, as a defendant.

    Chambers, who is white, alleged in the suit that Stephens, a black employee whose work hours she challenged, called her racial epithets and created a hostile work environment. The lawsuit alleges Chambers proposed a sign-in sheet to keep track of employees' hours and Reeves refused to take any action.

    They cut Chambers pay by $20,000 and forced her out... but she's back.

    And I'm shocked.  Absolutely shocked.  Never would have thought, not in my wildest dreams, that there'd be any inflation of work hours or falsified records in any of the City Council offices in Detroit.

    Because that Detroit City Council is normally such a paragon of virtue.  Always trouble free.  Never a cross word or even a hint of misbehavior.  

    But hey, if the President really wants to control a Detroit based dysfunctional operational body that's burning money faster than they can print it...

    < Breaking: Michigan is sinking and Cherry is drinking | Tuesday in the Sphere: April 28 >


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    I guess that you need to have chutzpa... (none / 0) (#1)
    by KG One on Tue Apr 28, 2009 at 08:51:00 AM EST
    ...to be a democrat.

    Remember a while back a democrat in the southern end of Macomb County? The one who brown-nosed the local police and sheriff departments for support...and eventually got it from the local police department during his last election.

    And the very same one who got busted by those very same people for filing a false theft/insurance report.

    Well, not having the power and glory from his seat in city government didn't suit him for long, he eventually filed to run for the very same seat that he resigned from.

    (And just so there is nothing said about not being totally up-front about what happened, he did eventually withdrew his re-run for office several days later after he was widely derided in the local community and his attorney had a serious talking to regarding his upcoming trial.)

    Shared genetic defect? Mental disorder? Trying to compare their man-parts to King Kong?

    You be the judge...

    snooze and lose (none / 0) (#2)
    by Eric T on Tue Apr 28, 2009 at 09:11:55 AM EST
    http://www.bloomberg.com/apps/news?pid=20601103&sid=a2KvUxKmASGk&refer=us

    Before Wagoner was removed, GM had proposed that bondholders swap more than three-quarters of their stake for equity, according to a person familiar with the talks. That offer would have given bondholders 90 percent of the equity of the reorganized automaker and a combination of cash and new unsecured notes, the person said at the time.

    Had bondholders went with this deal, they would have had a better deal. Now the deal is much less attractive, if GM goes thru bankruptcy. Bondholders will probably have even less, if anything.

    It's sad. (none / 0) (#3)
    by thejmfc on Wed Apr 29, 2009 at 02:58:37 AM EST
    It's a sad thing that the once-mighty GM has been reduced to a government program.  

    Ford is looking very smart right now.  First, they had themselves in a better financial position than GM and Chrysler, so they didn't absolutely have to take government money.  Secondly, when they could have probably gotten some anyway for good measure, they declined the opportunity.  And by doing so, they are now the only real American automaker that's not either tied to Fiat or controlled by the government.  My money is on them to gain some market share if/when this thing turns around.  

    I'm decidedly not a "Ford man", and even I have a new respect for the company.  If I were in the market for a new car (never have been, probably never will be, but still...), I would seriously consider buying a Ford now vs. a GM (never would have considered a Chrysler in the first place, much less now).

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