Dear God,
Why didn't you save the school children at:
Moses Lake, Washington 2/2/96
Bethel, Alaska 2/19/97
Pearl, Mississippi 10/1/97
West Paducah, Kentucky 12/1/97
Stamps, Arkansas 12/15/97
Jonesboro, Arkansas 3/24/98
Edinboro, Pennsylvania 4/24/98
Fayetteville, Tennessee 5/19/98
Springfield, Oregon 5/21/98
Richmond, Virginia 6/15/98
Littleton, Colorado 4/20/99
Taber, Alberta, Canada 5/28/99
Conyers, Georgia 5/20/99
Deming, New Mexico 11/19/99
Fort Gibson, Oklahoma 12/6/99
Santee, California 3/5/01 and
El Cajon, California 3/22/01?
Sincerely,
Concerned Student
-----------------------------------------------------
Reply:
Dear Concerned Student:
I am not allowed in schools.
Sincerely,
God
----------------------------------------------------------
How did this get started?...
-----------------
Let's see, I think it started when Madeline Murray O'Hare complained she didn't want any prayer in our schools.
And we said, OK...
------------------
Then, someone said you better not read the Bible in school,the Bible that says "Thou shalt not kill, thou shalt not steal, and love your neighbors as yourself,"
And we said, OK...
-----------------
Dr. Benjamin Spock said we shouldn't spank our children when they misbehaved because their little personalities would be warped and we might damage their self-esteem.
And we said, an expert should know what he's talking about so we won't spank them anymore...
------------------
Then someone said teachers and principals better not discipline our children when they misbehave. And the school administrators said no faculty member in this school better touch a student when they misbehave because we don't want any bad publicity, and we surely don't want to be sued.
And we accepted their reasoning...
------------------
Then someone said, let's let our daughters have abortions if they want, and they won't even have to tell their parents.
And we said, that's a grand idea...
------------------
Then some wise school board member said, since boys will be boys and they're going to do it anyway, let's give our sons all the condoms they want, so they can have all the fun they desire, and we won't have to tell their parents they got them at school.
And we said, that's another great idea...
------------------
Then some of our top elected officials said it doesn't matter what we do in private as long as we do our jobs.
And we said, it doesn't matter what anybody,including the President, does in private as long as we have jobs and the economy is good...
------------------
And someone else took that appreciation a step further and published pictures of nude children and then stepped further still by making them available on the Internet.
And we said, every one's entitled to free speech...
------------------
And the entertainment industry said, let's make TV shows and movies that promote profanity, violence and illicit sex... And let's record music that encourages rape, drugs, murder, suicide, and satanic themes...
And we said, it's just entertainment and it has no adverse effect and nobody takes it seriously anyway, so go right ahead...
------------------
Now we're asking ourselves why our children have no conscience,why they don't know right from wrong, and why it doesn't bother them to kill strangers, classmates or even themselves.
------------------
Undoubtedly, if we thought about it long and hard enough, we could figure it out. I'm sure it has a great deal to do with...
"WE REAP WHAT WE SOW,"
------------------
Pass it on if you think it has merit! If not then just discard it...
but if you discard this thought process, then don't you dare sit back and complain about what bad shape this country is in!
Tuesday, April 21, 2009
Saturday, April 18, 2009
Friday, April 17, 2009
GM, Ford, & Chrysler
Ford, Chrysler and GM's contributions after 9/11.
CNN Headline News did a short news listing regarding Ford and GM's contributions to the relief and recovery efforts in New York and Washington.
The findings are as follows:
1. Ford - $10 million to American Red Cross matching employee contributions of the same number plus 10 Excursions to NY Fire Dept. The company also offered ER response team services and office space to displaced government employees.
2. GM - $10 million to American Red Cross matching employee contributions of the same number and a fleet of Vans, SUV's, and Trucks.
3. Daimler Chrysler - $10 million to support of the children and victims of the Sept. 11 attack.
4. Harley Davidson motorcycles - $1 million and 30 new motorcycles to the New York Police Dept.
5. Volkswagen - Employees and management created a Sept 11 Foundation, funded initial with $2 million, for the assistance of the children and victims of the WTC.
6. Hyundai - $300,000 to the American Red Cross.
7. Audi - see VW
8. BMW - Nothing.
9. Daewoo - Nothing.
10. Fiat - Nothing.
11. Honda - Nothing despite boasting of second best sales month ever in August 2001
12. Isuzu - Nothing.
13. Mitsubishi - Nothing.
14. Nissan - Nothing.
15. Porsche - Nothing. Press release with condolences via the Porsche website.
16. Subaru - Nothing.
17. Suzuki - Nothing.
18. Toyota - Nothing despite claims of high sales in July and August 2001. Condolences posted on the website.
Whenever the time may be for you to purchase a new vehicle, keep this information in mind. You might want to give more consideration to a car manufactured by an American-owned and / or American based company. Apart from Hyundai and Volkswagen, the foreign car companies contributed nothing at all to the citizens of the United States ... It's OK for these companies to take money out of this country, but it is apparently not acceptable to return some in a time of crisis! I believe we should not forget things like this. Say thank you in a way that gets their attention...
CNN Headline News did a short news listing regarding Ford and GM's contributions to the relief and recovery efforts in New York and Washington.
The findings are as follows:
1. Ford - $10 million to American Red Cross matching employee contributions of the same number plus 10 Excursions to NY Fire Dept. The company also offered ER response team services and office space to displaced government employees.
2. GM - $10 million to American Red Cross matching employee contributions of the same number and a fleet of Vans, SUV's, and Trucks.
3. Daimler Chrysler - $10 million to support of the children and victims of the Sept. 11 attack.
4. Harley Davidson motorcycles - $1 million and 30 new motorcycles to the New York Police Dept.
5. Volkswagen - Employees and management created a Sept 11 Foundation, funded initial with $2 million, for the assistance of the children and victims of the WTC.
6. Hyundai - $300,000 to the American Red Cross.
7. Audi - see VW
8. BMW - Nothing.
9. Daewoo - Nothing.
10. Fiat - Nothing.
11. Honda - Nothing despite boasting of second best sales month ever in August 2001
12. Isuzu - Nothing.
13. Mitsubishi - Nothing.
14. Nissan - Nothing.
15. Porsche - Nothing. Press release with condolences via the Porsche website.
16. Subaru - Nothing.
17. Suzuki - Nothing.
18. Toyota - Nothing despite claims of high sales in July and August 2001. Condolences posted on the website.
Whenever the time may be for you to purchase a new vehicle, keep this information in mind. You might want to give more consideration to a car manufactured by an American-owned and / or American based company. Apart from Hyundai and Volkswagen, the foreign car companies contributed nothing at all to the citizens of the United States ... It's OK for these companies to take money out of this country, but it is apparently not acceptable to return some in a time of crisis! I believe we should not forget things like this. Say thank you in a way that gets their attention...
Wednesday, April 15, 2009
Downtown Tax Day Tea Party Draws Hundreds
By KYLE HOPKINS
khopkins@adn.com
Published: April 15th, 2009 11:29 AM
Last Modified: April 15th, 2009 03:43 PM
More than 1,200 protesters crammed the corners of Seventh Avenue and C Street in Anchorage today as part of a national Tax Day Tea Party organized by a coalition of conservative groups.
"(This is) the first time I've ever been to a protest in my entire life," said 45-year-old fitness instructor Amy Brun, who says the federal government should let the free market save the economy rather than going deeper in debt to spur recovery.
"I don't want anymore bailouts," she said. "I didn't want the one Bush imposed, I didn't want the one Obama imposed. ... I really think something like that should have been brought to the people."
The protest is meant to invoke the Boston Tea Party against taxation in 1773, and was one of hundreds held around the country today.
Anchorage sign wavers stood at the foot of the federal building, sometimes chanting or singing "The Star-Spangled Banner." Drivers leaned on their horns as they rolled past signs that said things like:
• "We are not your ATM"
• "Even God only asks 10 percent"
• "What's in your wallet? My money"
A man carrying a "Home for sale" sign -- the kind you stick in your lawn -- strode across the street, yelling, "Bail out my home mortgage!"
Many in the crowd said they'd heard about the protests through Fox News or radio talk shows and found the location on the Internet.
State Republican Party Chairman Randy Ruedrich roamed the crowd, handing out "Dan Sullivan for mayor" signs, while a pair of Eagle River high school students asked Sullivan to sign a form showing they'd attended the protest for their U.S. government class.
While some protesters said they were unhappy with former President George Bush's economic policies too, President Barack Obama bore the brunt of the anger from people who largely identified themselves as Republicans or Libertarians.
In an e-mail, Democratic National Committee spokesman Hari Sevugan wrote: "While we support the right of Americans to petition their government, what's clear is that the overwhelming majority of folks support President Obama's plan to get the economy back on track ... "
Mary Ann Krasselt, 66, pointed a sign reading "No! to radical Obama and his socialist taxes" toward the intersection. She wore her husband's Revolutionary War custom -- tricorn hat and all -- and she said she can't afford to retire from her sales job.
"We're really heading on a road to socialism," the woman standing next to her said.
"We really are," Krasselt replied. "And I'm worried about a civil war."
Besides Anchorage, Alaska tax day protests were scheduled for Wasilla, Soldotna, Homer, Kodiak, Fairbanks, Haines and Ketchikan.
khopkins@adn.com
Published: April 15th, 2009 11:29 AM
Last Modified: April 15th, 2009 03:43 PM
More than 1,200 protesters crammed the corners of Seventh Avenue and C Street in Anchorage today as part of a national Tax Day Tea Party organized by a coalition of conservative groups.
"(This is) the first time I've ever been to a protest in my entire life," said 45-year-old fitness instructor Amy Brun, who says the federal government should let the free market save the economy rather than going deeper in debt to spur recovery.
"I don't want anymore bailouts," she said. "I didn't want the one Bush imposed, I didn't want the one Obama imposed. ... I really think something like that should have been brought to the people."
The protest is meant to invoke the Boston Tea Party against taxation in 1773, and was one of hundreds held around the country today.
Anchorage sign wavers stood at the foot of the federal building, sometimes chanting or singing "The Star-Spangled Banner." Drivers leaned on their horns as they rolled past signs that said things like:
• "We are not your ATM"
• "Even God only asks 10 percent"
• "What's in your wallet? My money"
A man carrying a "Home for sale" sign -- the kind you stick in your lawn -- strode across the street, yelling, "Bail out my home mortgage!"
Many in the crowd said they'd heard about the protests through Fox News or radio talk shows and found the location on the Internet.
State Republican Party Chairman Randy Ruedrich roamed the crowd, handing out "Dan Sullivan for mayor" signs, while a pair of Eagle River high school students asked Sullivan to sign a form showing they'd attended the protest for their U.S. government class.
While some protesters said they were unhappy with former President George Bush's economic policies too, President Barack Obama bore the brunt of the anger from people who largely identified themselves as Republicans or Libertarians.
In an e-mail, Democratic National Committee spokesman Hari Sevugan wrote: "While we support the right of Americans to petition their government, what's clear is that the overwhelming majority of folks support President Obama's plan to get the economy back on track ... "
Mary Ann Krasselt, 66, pointed a sign reading "No! to radical Obama and his socialist taxes" toward the intersection. She wore her husband's Revolutionary War custom -- tricorn hat and all -- and she said she can't afford to retire from her sales job.
"We're really heading on a road to socialism," the woman standing next to her said.
"We really are," Krasselt replied. "And I'm worried about a civil war."
Besides Anchorage, Alaska tax day protests were scheduled for Wasilla, Soldotna, Homer, Kodiak, Fairbanks, Haines and Ketchikan.
Tuesday, April 14, 2009
"Something of Historic Proportion is Happening"
by Pam Geller http://www.atlasshrugs2000.typepad.com/
I am a student of history. Professionally. I have written 15 books in six languages, and have studied it all my life.
I think there is something monumentally large afoot, and I do not believe it is just a banking crisis, or a mortgage crisis, or a credit crisis.
Yes, these exist but they are merely single facets on a very large gemstone that is only now coming into a sharper focus.
Something of historic proportions is happening. I can sense it because I know how it feels, smells, what it looks like, and how people react to it.
Yes, a perfect storm may be brewing, but there is something happening within our country that has been evolving for about 10 - 15 years. The pace has dramatically quickened in the past two.
We demand and then codify into law the requirement that our banks make massive loans to people whom we know can never pay back. (Carter/Clinton - The Community Reinvestment Act) Why?
We learn just days ago that the Federal Reserve, which has little or no real oversight by anyone, has "loaned" two trillion dollars (that is $2,000,000,000,000) over the past few months, but will not tell us to whom or why or disclose the terms.
That is our money. Yours and mine. And that is three times the $700 billion we all argued about so strenuously just this past September.
Who has this money? Why do they have it? Why are the terms unavailable to us? Who asked for it? Who authorized it?
I thought this was a government of "We the People," who lent our powers to our elected leaders.. Apparently not.
We have spent two or more decades intentionally de-industrializing our economy. Why?
We have intentionally dumbed down our schools, ignored our history, and no longer teach our founding documents, why we are exceptional, and why we are worth preserving.
Students by and large cannot write, think critically, read, or articulate. Parents are not revolting, teachers are not picketing, and school boards continue to back mediocrity. Why?
We have now established the precedent of protesting every close election (now violently in California over a proposition that is so controversial that it wants marriage to remain between one man and one woman). Did you ever think such a thing possible just a decade ago?.
We have corrupted our sacred political process by allowing unelected judges to write laws that radically change our way of life, and then mainstream Marxist groups like ACORN and others to turn our voting system into a banana republic. To what purpose?
Now our mortgage industry is collapsing, housing prices are in free fall, major industries are failing, our banking system is on the verge of collapse, Social Security is nearly bankrupt, as is Medicare and our entire government. Our education system is worse than a joke (I teach college and know precisely what I am talking about.)
The list is staggering in its length, breadth, and depth. It is potentially 1929 x
10. And we are at war with an enemy we cannot name for fear of offending people of the same religion who cannot wait to slit the throats of your children if they have the opportunity to do so.
And now we have elected a man no one knows anything about, who has never run so much as a Dairy Queen, let alone a town as big as Wasilla, Alaska.
All of his associations and alliances are with real radicals in their chosen fields of employment, and everything we learn about him, drip by drip, is unsettling if not downright scary (Surely you have heard him speak about his idea to create and fund a mandatory civilian defense force stronger than our military for use inside our borders? No? Oh, of course. The media would never play that for you over and over and then demand he answer it.
Mr. Obama's winning platform can be boiled down to one word: Change. Why?
I have never been so afraid for my country and for my children as I am now. This man campaigned on bringing people together, something he has never, ever done in his professional life.
In my assessment, Obama will divide us along philosophical lines, push us apart, and then try to realign the pieces into a new and different power structure. Change is indeed coming. And when it comes, you will never see the same nation again. And that is only the beginning.
I thought I would never be able to experience what the ordinary, moral German felt in the mid-1930's. In those times, the savior was a former smooth-talking rabble-rouser from the streets, about whom the average German knew next to nothing. What they did know was that he was associated with groups that shouted, shoved, and pushed around people with whom they disagreed; he edged his way onto the political
stage through great oratory and promises.
Economic times were tough, people were losing jobs, and he was a great speaker. And he smiled and waved a lot. And people, even newspapers, were afraid to speak out for fear that his "brown shirts" would bully them into submission.
And then he was duly elected to office, with a full-throttled economic crisis at hand [the Great Depression]. Slowly but surely he seized the controls of government power, department by department, person by person, bureaucracy by bureaucracy. The kids joined a Youth Movement in his name, where they were taught what to think.
How did he get the people on his side? He did it promising jobs to the jobless, money to the moneyless, and goodies for the military-industrial complex. He did it by indoctrinating the children, advocating gun control, health care for all, better wages, better jobs, and promising to re-instill pride once again in the country, across Europe, and across the world.
He did it with a compliant media - Did you know that? And he did this all in the name of justice and .. . . . change. And the people surely got what they voted for. (Look it up if you think I am exaggerating.)
Read your history books. Many German people objected in 1933 and were shouted down, called names, laughed at, and made fun of.
When Winston Churchill pointed out the obvious in the late 1930's while seated in the House of Lordsin England (he was not yet Prime Minister), he was booed into his seat and called a crazy troublemaker. He was right, though.
Don't forget that Germany was the most educated, cultured country in Europe . It was full of music, art, museums, hospitals, laboratories, and universities. And in less than six years - a shorter time span than just two terms of the U. S. presidency - it was rounding up its own citizens, killing others, abrogating its laws, turning children against parents, and neighbors against neighbors. All with the best of intentions, of course. The road to Hell is paved with them.
As a practical thinker, one not overly prone to emotional decisions, I have a choice: I can either believe what the objective pieces of evidence tell me (even if they make me cringe with disgust); I can believe what history is shouting to me from across the chasm of seven decades; or I can hope I am wrong, close my eyes, have another latte and ignore what is transpiring around me.
Some people scoff at me; others laugh or think I am foolish, naive, or both. Perhaps I am. But I have never been afraid to look people in the eye and tell them exactly what I believe - and why I believe it. I pray I am wrong.
I do not think I am.
-------------------------------------------
"Democracy is two wolves and a lamb deciding what to have for dinner.
Liberty is a well-armed lamb." - Benjamin Franklin
I am a student of history. Professionally. I have written 15 books in six languages, and have studied it all my life.
I think there is something monumentally large afoot, and I do not believe it is just a banking crisis, or a mortgage crisis, or a credit crisis.
Yes, these exist but they are merely single facets on a very large gemstone that is only now coming into a sharper focus.
Something of historic proportions is happening. I can sense it because I know how it feels, smells, what it looks like, and how people react to it.
Yes, a perfect storm may be brewing, but there is something happening within our country that has been evolving for about 10 - 15 years. The pace has dramatically quickened in the past two.
We demand and then codify into law the requirement that our banks make massive loans to people whom we know can never pay back. (Carter/Clinton - The Community Reinvestment Act) Why?
We learn just days ago that the Federal Reserve, which has little or no real oversight by anyone, has "loaned" two trillion dollars (that is $2,000,000,000,000) over the past few months, but will not tell us to whom or why or disclose the terms.
That is our money. Yours and mine. And that is three times the $700 billion we all argued about so strenuously just this past September.
Who has this money? Why do they have it? Why are the terms unavailable to us? Who asked for it? Who authorized it?
I thought this was a government of "We the People," who lent our powers to our elected leaders.. Apparently not.
We have spent two or more decades intentionally de-industrializing our economy. Why?
We have intentionally dumbed down our schools, ignored our history, and no longer teach our founding documents, why we are exceptional, and why we are worth preserving.
Students by and large cannot write, think critically, read, or articulate. Parents are not revolting, teachers are not picketing, and school boards continue to back mediocrity. Why?
We have now established the precedent of protesting every close election (now violently in California over a proposition that is so controversial that it wants marriage to remain between one man and one woman). Did you ever think such a thing possible just a decade ago?.
We have corrupted our sacred political process by allowing unelected judges to write laws that radically change our way of life, and then mainstream Marxist groups like ACORN and others to turn our voting system into a banana republic. To what purpose?
Now our mortgage industry is collapsing, housing prices are in free fall, major industries are failing, our banking system is on the verge of collapse, Social Security is nearly bankrupt, as is Medicare and our entire government. Our education system is worse than a joke (I teach college and know precisely what I am talking about.)
The list is staggering in its length, breadth, and depth. It is potentially 1929 x
10. And we are at war with an enemy we cannot name for fear of offending people of the same religion who cannot wait to slit the throats of your children if they have the opportunity to do so.
And now we have elected a man no one knows anything about, who has never run so much as a Dairy Queen, let alone a town as big as Wasilla, Alaska.
All of his associations and alliances are with real radicals in their chosen fields of employment, and everything we learn about him, drip by drip, is unsettling if not downright scary (Surely you have heard him speak about his idea to create and fund a mandatory civilian defense force stronger than our military for use inside our borders? No? Oh, of course. The media would never play that for you over and over and then demand he answer it.
Mr. Obama's winning platform can be boiled down to one word: Change. Why?
I have never been so afraid for my country and for my children as I am now. This man campaigned on bringing people together, something he has never, ever done in his professional life.
In my assessment, Obama will divide us along philosophical lines, push us apart, and then try to realign the pieces into a new and different power structure. Change is indeed coming. And when it comes, you will never see the same nation again. And that is only the beginning.
I thought I would never be able to experience what the ordinary, moral German felt in the mid-1930's. In those times, the savior was a former smooth-talking rabble-rouser from the streets, about whom the average German knew next to nothing. What they did know was that he was associated with groups that shouted, shoved, and pushed around people with whom they disagreed; he edged his way onto the political
stage through great oratory and promises.
Economic times were tough, people were losing jobs, and he was a great speaker. And he smiled and waved a lot. And people, even newspapers, were afraid to speak out for fear that his "brown shirts" would bully them into submission.
And then he was duly elected to office, with a full-throttled economic crisis at hand [the Great Depression]. Slowly but surely he seized the controls of government power, department by department, person by person, bureaucracy by bureaucracy. The kids joined a Youth Movement in his name, where they were taught what to think.
How did he get the people on his side? He did it promising jobs to the jobless, money to the moneyless, and goodies for the military-industrial complex. He did it by indoctrinating the children, advocating gun control, health care for all, better wages, better jobs, and promising to re-instill pride once again in the country, across Europe, and across the world.
He did it with a compliant media - Did you know that? And he did this all in the name of justice and .. . . . change. And the people surely got what they voted for. (Look it up if you think I am exaggerating.)
Read your history books. Many German people objected in 1933 and were shouted down, called names, laughed at, and made fun of.
When Winston Churchill pointed out the obvious in the late 1930's while seated in the House of Lordsin England (he was not yet Prime Minister), he was booed into his seat and called a crazy troublemaker. He was right, though.
Don't forget that Germany was the most educated, cultured country in Europe . It was full of music, art, museums, hospitals, laboratories, and universities. And in less than six years - a shorter time span than just two terms of the U. S. presidency - it was rounding up its own citizens, killing others, abrogating its laws, turning children against parents, and neighbors against neighbors. All with the best of intentions, of course. The road to Hell is paved with them.
As a practical thinker, one not overly prone to emotional decisions, I have a choice: I can either believe what the objective pieces of evidence tell me (even if they make me cringe with disgust); I can believe what history is shouting to me from across the chasm of seven decades; or I can hope I am wrong, close my eyes, have another latte and ignore what is transpiring around me.
Some people scoff at me; others laugh or think I am foolish, naive, or both. Perhaps I am. But I have never been afraid to look people in the eye and tell them exactly what I believe - and why I believe it. I pray I am wrong.
I do not think I am.
-------------------------------------------
"Democracy is two wolves and a lamb deciding what to have for dinner.
Liberty is a well-armed lamb." - Benjamin Franklin
Wednesday, April 1, 2009
Scary Stuff
Obama asserts gov't control over the auto industry
Obama puts GM, Chrysler on short leash
AP – Mon Mar 30, 7:51 pm ET
WASHINGTON – President Barack Obama asserted unprecedented government control over the auto industry Monday, bluntly rejecting turnaround plans by General Motors Corp. and Chrysler LLC, demanding fresh concessions for long-term federal aid and raising the possibility of quick bankruptcy for either ailing auto giant.
Obama took the extraordinary step of announcing the government will back new car warranties issued by both GM and Chrysler, an attempt to reassure consumers their U.S.-made purchases will be protected even if the companies don't survive.
"I am absolutely committed to working with Congress and the auto companies to meet one goal: The United States of America will lead the world in building the next generation of clean cars," Obama said in his first extended remarks on the industry since taking office nearly 10 weeks ago. And yet, he added, "our auto industry is not moving in the right direction fast enough to succeed."
Obama, flanked by several administration officials at the White House, announced a short-term infusion of cash for the firms, and said it could be the last for one or both.
Chrysler, judged by the administration as too small to survive, got 30 days' worth of funds to complete a partnership with Fiat SpA, the Italian manufacturer, or some other automaker.
GM got assurances of 60 days' worth of federal financing to try and revise its turnaround plan under new management with heavy government participation. That would involve concessions from its union workers and bondholders. The administration engineered the ouster of longtime CEO Rick Wagoner over the weekend, an indication of its deep involvement in an industry that once stood as a symbol of American capitalism.
Obama's announcement underscored the extent to which automakers have been added to the list of large corporations now operating under a level of government control that seemed unthinkable less than a year ago. Since last fall, the Bush and Obama administrations, often acting in concert with the Federal Reserve, have engineered the takeover of housing titans Fannie Mae and Freddie Mac, seized a large stake in several banks and installed a new CEO at bailed-out insurance giant American International Group.
Other presidents have forced showdowns with major industries, with mixed results. Harry Truman's decision to nationalize the steel industry on the eve of a strike in 1952 was ruled unconstitutional by the Supreme Court. But Ronald Reagan succeeded in busting the air traffic controllers' union three decades later.
The latest addition to the list, the once-proud auto industry, has struggled with foreign competition for more than a generation, then was further battered by the recession and credit crisis gripping the economy. Obama said 400,000 industry jobs have been lost in the past year alone, many in Michigan.
Under Fritz Henderson, newly named as CEO, General Motors issued a statement saying it hopes to avoid bankruptcy, but will "take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process."
Chrysler Chairman Bob Nardelli sought to assure customers, dealers, suppliers and employees that the automaker "will operate 'business as usual' over the next 30 days" while working closely with the government and Fiat to secure the support of stakeholders.
Sergio Marchionne, CEO of Fiat, issued a statement calling the Obama administration's involvement "tough but fair, and we believe we will arrive at a result that will establish a credible future for this crucial industrial sector and that assigns the right priority to the repayment of U.S. taxpayers' funds."
Fiat executives have talked to administration officials about a proposal to acquire a 35 percent stake in Chrysler in exchange for small car technology, transmissions and other items that Chrysler has valued at $8-$10 billion.
There was no immediate response from the United AutoWorkers Union. One worker, Don Thompson, 56, of Chesterfield Township in Michigan, said automakers were being punished because of public anger over the banking bailout. "They're using us for the mistakes they've made in Washington," he said.
Other workers alleged a double standard in how Washington dealt with Wagoner, as opposed to CEOs of bailed-out banks. "They're using him as a fall guy," said Frank Rowser, financial secretary for UAW Local 909.
When Wagoner leaves the automaker, he will take a financial package worth an estimated $23 million.
Ford Motor Co., the third member of the Big Three, has not requested federal bailout funds.
Obama said bankruptcy would be a way for either GM or Chrysler to "quickly clear away old debts that are weighing them down so they can get back on their feet," and stressed that either firm would remain open.
"What I am not talking about is a process where a company is broken up, sold off and no longer exists. And what I am not talking about is having a company stuck in court for years, unable to get out," he said.
Still, fears about the industry's future sent stocks plummeting, with the Dow Jones industrial average losing about 254 points. GM plunged 92 cents, or 25.4 percent, to $2.70. Chrysler is not publicly traded.
Obama's remarks were prompted by the expiration of a temporary bailout approved by the Bush administration last winter, with $17 billion in federal funds to help GM and Chrysler survive. Under its terms, the two automakers had until March 31 to submit restructuring plans as it searched for additional federal funds.
At the time, it appeared Bush had avoided an industry collapse on his watch yet had deferred the most difficult decisions for his successor.
By his comments, Obama bought himself a little more time, but made it clear it was fast running out. "Now is the time to confront our problems head-on and do what's necessary to solve them," he said.
The administration issued papers detailing the prospects for survival of both GM and Chrysler, credited them with making difficult choices, yet also stressing the difficulties that remain.
It said that while GM's new car of the future, the Volt, "holds promise, it will likely be too expensive to be commercially successful in the short run."
The government has said it's willing to provide another $6 billion in financing for Chrysler if it is able to finalize an alliance with Italy's Fiat Group SpA. But to get the money, Chrysler must rid its balance sheet of most of its debt, including any investment by its private owners.
That means Chrysler's majority owner, Cerberus Capital Management LP, would have to give up the $1 billion interest it has in the automaker, according to a person briefed on the deal. The person asked not to be identified because terms are still being negotiated.
Cerberus would retain ownership in Chrysler's financial arm, but it has pledged to the government the first $2 billion in profits to repay a federal cash infusion, the person said.
____
Associated Press writers Jim Kuhnhenn and Ken Thomas in Washington and Ben Leubsdorf in Warren, Mich., contributed to this report.
Obama puts GM, Chrysler on short leash
AP – Mon Mar 30, 7:51 pm ET
WASHINGTON – President Barack Obama asserted unprecedented government control over the auto industry Monday, bluntly rejecting turnaround plans by General Motors Corp. and Chrysler LLC, demanding fresh concessions for long-term federal aid and raising the possibility of quick bankruptcy for either ailing auto giant.
Obama took the extraordinary step of announcing the government will back new car warranties issued by both GM and Chrysler, an attempt to reassure consumers their U.S.-made purchases will be protected even if the companies don't survive.
"I am absolutely committed to working with Congress and the auto companies to meet one goal: The United States of America will lead the world in building the next generation of clean cars," Obama said in his first extended remarks on the industry since taking office nearly 10 weeks ago. And yet, he added, "our auto industry is not moving in the right direction fast enough to succeed."
Obama, flanked by several administration officials at the White House, announced a short-term infusion of cash for the firms, and said it could be the last for one or both.
Chrysler, judged by the administration as too small to survive, got 30 days' worth of funds to complete a partnership with Fiat SpA, the Italian manufacturer, or some other automaker.
GM got assurances of 60 days' worth of federal financing to try and revise its turnaround plan under new management with heavy government participation. That would involve concessions from its union workers and bondholders. The administration engineered the ouster of longtime CEO Rick Wagoner over the weekend, an indication of its deep involvement in an industry that once stood as a symbol of American capitalism.
Obama's announcement underscored the extent to which automakers have been added to the list of large corporations now operating under a level of government control that seemed unthinkable less than a year ago. Since last fall, the Bush and Obama administrations, often acting in concert with the Federal Reserve, have engineered the takeover of housing titans Fannie Mae and Freddie Mac, seized a large stake in several banks and installed a new CEO at bailed-out insurance giant American International Group.
Other presidents have forced showdowns with major industries, with mixed results. Harry Truman's decision to nationalize the steel industry on the eve of a strike in 1952 was ruled unconstitutional by the Supreme Court. But Ronald Reagan succeeded in busting the air traffic controllers' union three decades later.
The latest addition to the list, the once-proud auto industry, has struggled with foreign competition for more than a generation, then was further battered by the recession and credit crisis gripping the economy. Obama said 400,000 industry jobs have been lost in the past year alone, many in Michigan.
Under Fritz Henderson, newly named as CEO, General Motors issued a statement saying it hopes to avoid bankruptcy, but will "take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process."
Chrysler Chairman Bob Nardelli sought to assure customers, dealers, suppliers and employees that the automaker "will operate 'business as usual' over the next 30 days" while working closely with the government and Fiat to secure the support of stakeholders.
Sergio Marchionne, CEO of Fiat, issued a statement calling the Obama administration's involvement "tough but fair, and we believe we will arrive at a result that will establish a credible future for this crucial industrial sector and that assigns the right priority to the repayment of U.S. taxpayers' funds."
Fiat executives have talked to administration officials about a proposal to acquire a 35 percent stake in Chrysler in exchange for small car technology, transmissions and other items that Chrysler has valued at $8-$10 billion.
There was no immediate response from the United AutoWorkers Union. One worker, Don Thompson, 56, of Chesterfield Township in Michigan, said automakers were being punished because of public anger over the banking bailout. "They're using us for the mistakes they've made in Washington," he said.
Other workers alleged a double standard in how Washington dealt with Wagoner, as opposed to CEOs of bailed-out banks. "They're using him as a fall guy," said Frank Rowser, financial secretary for UAW Local 909.
When Wagoner leaves the automaker, he will take a financial package worth an estimated $23 million.
Ford Motor Co., the third member of the Big Three, has not requested federal bailout funds.
Obama said bankruptcy would be a way for either GM or Chrysler to "quickly clear away old debts that are weighing them down so they can get back on their feet," and stressed that either firm would remain open.
"What I am not talking about is a process where a company is broken up, sold off and no longer exists. And what I am not talking about is having a company stuck in court for years, unable to get out," he said.
Still, fears about the industry's future sent stocks plummeting, with the Dow Jones industrial average losing about 254 points. GM plunged 92 cents, or 25.4 percent, to $2.70. Chrysler is not publicly traded.
Obama's remarks were prompted by the expiration of a temporary bailout approved by the Bush administration last winter, with $17 billion in federal funds to help GM and Chrysler survive. Under its terms, the two automakers had until March 31 to submit restructuring plans as it searched for additional federal funds.
At the time, it appeared Bush had avoided an industry collapse on his watch yet had deferred the most difficult decisions for his successor.
By his comments, Obama bought himself a little more time, but made it clear it was fast running out. "Now is the time to confront our problems head-on and do what's necessary to solve them," he said.
The administration issued papers detailing the prospects for survival of both GM and Chrysler, credited them with making difficult choices, yet also stressing the difficulties that remain.
It said that while GM's new car of the future, the Volt, "holds promise, it will likely be too expensive to be commercially successful in the short run."
The government has said it's willing to provide another $6 billion in financing for Chrysler if it is able to finalize an alliance with Italy's Fiat Group SpA. But to get the money, Chrysler must rid its balance sheet of most of its debt, including any investment by its private owners.
That means Chrysler's majority owner, Cerberus Capital Management LP, would have to give up the $1 billion interest it has in the automaker, according to a person briefed on the deal. The person asked not to be identified because terms are still being negotiated.
Cerberus would retain ownership in Chrysler's financial arm, but it has pledged to the government the first $2 billion in profits to repay a federal cash infusion, the person said.
____
Associated Press writers Jim Kuhnhenn and Ken Thomas in Washington and Ben Leubsdorf in Warren, Mich., contributed to this report.
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