May 29, 2009 7:19 AM

Sen.: U.S. Stake In GM Akin To Socialism

By
Sean Alfano
Topics
Economy
(AP Photo/Haraz N. Ghanbari)
As General Motors heads down the road to bankruptcy aided by taxpayer dollars, Sen. Richard Shelby (R-Ala.) says the U.S. is on the road toward socialism.

Speaking to The Early Show Friday, a day after the auto giant reached a deal — brokered by the U.S. government — with its bondholders that will eliminate the company's unsecured debt in exchange for stock, Shelby said bankruptcy was unavoidable, but that the decision should have been made six months ago.

"This is a sad day," Shelby, the ranking Republican on the Senate Finance Committee said. "This was a great company and look at it today."

Along with a $30 billion infusion of government aid, taxpayers stand to own more than 70 percent of GM.

The Alabama senator said he fears the company won't be able to compete if it's run by the government. He added that he foresees more taxpayer money going into GM, a company that was "run into the ground."

"We should have let the market forces work because there is no end in sight," he said.



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by wvrussell June 2, 2009 10:18 AM EDT
The state of Alabama (along 7 other southern states) and Mr. Shelby have much to gain if the Big 3 fail. Alabama has 5 car manufacturing plants. All foreign. While Shelby & Mitch McConnell oppose federal subsidies for the Big Three at the federal level, the states from which they hail have generously extended billions of dollars in subsidies to foreign automakers. So where does socialism start and where does it end?
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by eyesC May 31, 2009 1:10 PM EDT
Look for another wave of lay offs. UNEMPLOYMENT off the charts, spending by our House and Senate , then CHINA to stop financing our SOCIALISM !!
Reply to this comment
by adroitcozy May 31, 2009 4:21 AM EDT
GM should have been allowed to fail as well as the basket case Chysler. This would have left Ford as the American car company, market forces at work. Now the American car industry is doomed to fail all three will go out of business. Governments should not and cannot run banks and car companies!
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by evilbusheviks May 30, 2009 2:10 AM EDT
jmcgilvray says:

"Senator Shelby is just another double-dealing politician, talking out of both sides of his mouth."

********************

Yep....actually that piece of garbage shelby, from the deep RED southern state of backwards alabama, does talk out of the sides of his mouth, and certainly could never be trusted.
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by evilbusheviks May 30, 2009 1:53 AM EDT
McHineguy says:

"It bothers me that my kids wont get the opportunities I got, that they will be paying of these debts their entire lives"

*************************

Yep.....thank you george w. bushevik, the $5 Trillion bozo
Reply to this comment
by PVperson2 May 29, 2009 7:37 PM EDT
Shelby, your "hands off", "let them fail", "let the market sort it out", doesn't work. The oly thing that will do is put hundreds of thousands more people on unemployment. I know that means nothing to you republicans, but the common man doesn't have his future secured by a government pension. I know you have your, so who cares about the public, well, we care and I for one would like you Goopers Only Party members to shut the hell up and get out of the way.
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by reality42 May 29, 2009 7:14 PM EDT
Capitalisim, Fascism , protectionism what ever get it straight people it does not matter to Big business and government as long as they keep getting richer.
That is the name of the game better if you are a third world country. Look around the last 60 years.

USA loves keeping down third world countrys to keep like the Germans wanted-- To be the superior race to man kind. White American goverment and bankers greed
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by burneb May 29, 2009 7:05 PM EDT
Republicans are big on letting "Mr. Market" run everything, which works OK most of the time. But about every 10 to 15 years, Mr. Market goes on a toot, gets intoxicated with greed and recklessness, and drives into a tree.

Then Government has to clean up the mess, and get Mr. Market back on the road until the next time. It is not like the RNC or the GOP is going to do it, they also use Government resources when needed.

You can be sure that when GM, Chrysler, and all the bailed out banks get profitable again, Mr. Government will be pressured to sell out at a loss so the greedheads can again claim the profits.

Our brand of "socialism" remains one in when we privatize the profits and socialize the losses.
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by omega39-2009 May 29, 2009 6:41 PM EDT
..."Shelby said bankruptcy was unavoidable, but that the decision should have been made six months ago. "
---
Which would have been during dubya's reign.....a top repub openly accusing of dubya of doing nothing when he should have?

Of being "asleep at the wheel", so to speak?

Caught with his drawers down?

I never thought I'd see a modern repub admit the obvious about one of it's own.

As refreshing as it is amazing........
Posted by formrusmcsgt

Don't bet on it, more than likely he is too stupid to count backwards without using his fingers and his toes if necessary.
Reply to this comment
by formrusmcsgt May 29, 2009 6:09 PM EDT
Posted by stn_sage at 2:39 PM : May 29, 2009

If you're right, and you very well may be, it would point to the fact that the repubs are still suffering from the dubya hangover.....McCain didn't even come close to erasing it....momentarily maybe, but with no measureable long-term impact.
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