In another loan-for-stock made at the same time, with insurance reinsurer AIG, the federal government has made money on its bailout. With General Motors, it will not. This is a quote from the Dec. 24 Herald editorial. In typical Herald fashion, there are some missing facts. First off, conservative estimates show the taxpayers losing at least $12.5 billion in this transaction. While acknowledging that bond holders got screwed, there is no mention of the fact that not a single UAW worker took a cut in pay at GM. Its no coincidence that the United Auto Workers ended up with 19 percent of the GM stock and contributed $11,424,652 to the 2012 Obama campaign and other Democrat causes.
If the GM government-structured bankruptcy was the only way the company could survive, how is it that a handful of airlines that have come and gone through a conventional bankruptcy process continue to operate? Not said in the editorial is the fact that GM will no longer have to get government permission for executive-pay schedules and have free rein on the use of corporate jets.
At the very least, the Herald editorial board is guilty of the sin of omission in its quest to support a government that leans and leads further and further to the left.