Cerberus Capital Management receives $5 billion bailout
If you were upset about the $700 billion bailout, get ready to really blow your top. Clark Howard was talking yesterday on his show about how Cerberus Capital Management, which owns Chrysler and a joint stake in GMAC, received a $5 billion bailout from the feds in the days leading up to the election. That’s because GMAC — the financing arm of GM — had become a wounded duck thanks to a spate of foolish mortgage lending.
The only reason they got money is because of who they are; they count former Vice President Dan Quayle among their ranks.
Cerberus next wants to engineer a merger of Chrysler and GM, which would require more taxpayer money. It’s being marketed as a way to stop imminent job losses. No way, says Clark. If we allow them to merge with our money, the real purpose will be to help the fat cats at Cerberus. Workers will lose their jobs anyway; we’re way oversupplied in the car market and have too many factories as well.
If you’re an autoworker who’s now mad at Clark, realize that he truly doesn’t believe your jobs would be safe with a bailout. The bailout would be solely to save the wealthy influentials.
One last thought: What kind of example do we set for the rest of the world when we start bailing out losers with the money from the winners? That’s crony capitalism, that’s a Third World kind of capitalism.
Read about the secrecy behind this bailout.
Read financial weeks article here.
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Tags: bailout, cerberus capital management, chrysler, Clark Howard, dan quayle, gmac
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December 19th, 2008 at 10:58 am
Take a look at Cerberus Capital Management did for Mervyn’s …
After Cerberus bought Mervyn’s, they split the real estate holdings into a separate business entity and then leased the real estate back to Mervyn’s at inflated values.
When Mervyn’s went bankrupt, the employees were let go without notice, without severance, without even the back vacation pay they were owed. And get this, their 401K is inaccessible because there isn’t sufficient funds to pay everyone.
December 21st, 2008 at 7:58 pm
Take a look at what they did with the purchase of INTERCRAFT/ANHKOR HOCKING/MIRRO same thing, milked off all the inventory leveraged the company with high rate of return payments then declared BANKRUPT. Legal way to steal.