Punching Stupid and Evil in the Face Since 1986!

"We are on strike, we the men of the mind. We are on strike against self-immolation. We are on strike against the creed of unearned rewards and unrewarded duties."-John Galt

Thursday, April 15, 2010

GM's Pension a boondogle ready to burst all over the American people?

In what is just one more example of this Administrations inability to see beyond the end of their nose, you know, even into next week, it was recently disclosed that both Chrysler and GM face unfunded pensions plans for retired and current employees. With more than half of a $27 million shortfall being owed to U.S. beneficiaries, the GAO says the federal Pension Benefit Guarantee Corp. will face an unprecedented crisis as these benefits mature.
When the two automakers emerged from bankruptcy reorganization the pension problems were seen as a more distant issue, and presumably one that would be eased by economic growth. But the auto industry is facing a slow recovery, and neither the new GM nor the new Chrysler has produced a profit.
Really, I'm just wondering who this news is shocking? The whole time they talked of bailing out the automakers I said the money would never be paid back, because there was no predicting when they were going to be profitable again. Now we find that, SURPRISE they also don't have enough money to fund benefits that bankrupted the company to start with. Do you suppose there is any chance they are starting to see the unintended consequences of thinking anyone is too big to fail? Pension funds will be next. Where does it end?


  1. The money we lose here is nothing compared to the blood bath we are taking at Fannie and Freddie.

    That does not excuse it...I'm just sayin. That said;

    GM's sales might well be better had Obama NOT taken them over. Ford seems to be doing quite well...and didn't take bailout money. I for one will not buy a GM or a Chrysler until the bondholders are given back what was taken from them and the company's are sold back to the private sector.

    Ford's best move in the coming years would be to break the UAW as should any concern that buys GM in the future.

    The unions wanted war with the rest of the American people in favor of their own selfish concerns..well they can have one. I'm all too happy to oblige in their destruction by refusing to buy their products. The unions have used their power against me...well, turnabout is fairplay.

  2. You meant $27 billion and not $27 million shortfall.