Leaked MEMO: Social Security SABOTAGE Could DESTROY System

[Smit]

All the retired Big 3 auto workers who had their retirement accounts in GM and Chrysler corporate bonds remember it well.
Obama wiped them out to curry favor with the UAW.

I'd like to know more about this. Do you have a link to a reputable source explaining it?

[gcode]

google "GM bond holders wiped out" you'll get plenty of returns and you can pick you poison

I don't know if you'll consider The Cato Institute legitimate or not

Both GM and Chrysler were headed for bankruptcy. If they had gone bankrupt under chapter 11, most of their factories would have stayed open and they would have continued making and selling cars. Bankruptcy would have allowed the companies to avoid interest and dividend payments for a time, and to renegotiate union contracts. Under bankruptcy laws, stockholders would have lost the value of their stocks, but bond owners–who have first claim to company assets and profits–would have been paid off, if not in whole than at least in part.


Instead of letting the companies declare bankruptcy, Obama decided to "bail them out" by taking them over. Once the administration had control of the companies, it had them file for bankruptcy, just as they would have done without the government takeover. Stockholders still lost everything, but so did Chrysler's bond holders. Instead of renegotiating union contracts, the administration gave the unions greater say over the companies. In other words, the administration didn't bail out the companies; it bailed out the unions at the expense of (in Chrysler's case) the bondholders.


In doing so, the administration created uncertainty in the bond market. Bonds were supposed to be safer investments than stocks. But who would want to invest in long-term bonds if the government could step in at any time and void the legal rights of the bond owners? The result is that bond sellers must be willing to pay more interest to attract buyers.


In short, the Obama auto bailout probably didn't save many jobs (though it probably did keep worker pay uncompetitively high). Instead, it is more likely that the Obama administration's action prolonged the recession by discouraging private investment in American industry.

[Rstewart]

Late to this thread, but
@ Neuro

Man, you worry about shit too much.  Too much rage bait reddit doom scrolling

Hot take, but I don't think people should depend on SS.  I don't need the .Gov making me a savings account

[neurosis]

Man, you worry about shit too much.  Too much rage bait reddit doom scrolling

Hot take, but I don't think people should depend on SS.  I don't need the .Gov making me a savings account

haha.. And the last four years of listening to Conservatives worry about every little thing. I didn't see you chiming in when that was going on.

And as far as not needing the .Gov to make you a savings account, good for you. There are a lot of people out there who can't afford to save for their own retirement for a number or reasons. Be it disability, high cost of living, other medical issues.  I'm glad you're here to tell them not to worry about it.   See the Done thread and tell BrianP that he shouldn't be relying on social security.


https://mastercamforums.com/forum/index.php/topic,4455.0.html

[Jeff]

And the last four years of listening to Conservatives worry about every little thing

With one minor difference, conservatives weren't complaining about what COULD happen, instead of what WAS happening at the time.

[neurosis]

With one minor difference, conservatives weren't complaining about what COULD happen, instead of what WAS happening at the time.

Bull shit.

[Jeff]

Bull shit.

K

[Del.]

Bull shit.

That is the response of a Genius. 😝

[Smit]

google "GM bond holders wiped out" you'll get plenty of returns and you can pick you poison

I don't know if you'll consider The Cato Institute legitimate or not

The Cato institute is highly credible source.

Yeah I recall the various stockholders being unhappy about the way that worked out. Anybody who had stocks or especially bonds invested was going to be unhappy with that deal.

[neurosis]

That is the response of a Genius. 😝

I would say that selective memory could only come from the mind of a genius?   😝

[Bucky Cornstarch]

With one minor difference, conservatives weren't complaining about what COULD happen, instead of what WAS happening at the time.

Actually, you Trumptards were mostly complaining about shit that never happened, like a stolen election and teachers turning your kids trans. You'd also complain about a recovering economy and a healthy stock market. How's the stock market looking now, dumbass?

[Jeff]

Actually, you Trumptards were mostly complaining about shit that never happened, like a stolen election and teachers turning your kids trans. You'd also complain about a recovering economy and a healthy stock market.

K

[Del.]

Actually, you Trumptards were mostly complaining about shit that never happened, like a stolen election and teachers turning your kids trans. You'd also complain about a recovering economy and a healthy stock market. How's the stock market looking now, dumbass?

Uh that was yesterday's word. Today it's genius.

[neurosis]

Uh that was yesterday's word. Today it's genius.

I don't know why, but genius sounds more condescending.  Why am I more comfortable being called a dumbass?  I think Incog wore me down.

[neurosis]

were mostly complaining about shit that never happened

They're eating the dogs, they're eating the cats! They're eating the pets!