Posted on 10/28/2008 12:53:12 AM PDT by The Watcher
Nice vanity.
Do you think they should be ‘bailed out’?
If your article makes a connection between Cerebus and GM, I missed it. So, how is it that Cerebus(whom I've never heard of) is able to dictate anything to GM?
vaudine
Cerebus owns 51% of GMAC. GMAC is the principle financier for GM’s auto sales. Cerebus has operating control, but not full ownership of GM’s financial arm.
GMAC has a large portfolio of both automotive and REAL ESTATE loans.
Could you condense “the Threat” down specificly
If history shows us anything, it is that Republic’s and Democracies fail when the public treasury is raided. And when that happens, the result is a dictatorship.
It’s coming, and coming a lot faster than I thought possible.
Do I think Chrysler should be bailed out? No. Chrysler does not need “bailing out”. If Cerebus, which is the investment company that owns Chrysler, LLC, would simply spin them off or take them public with the aid of some larger investors, Chrysler has a great future on its own. Not gauranteed, but right now, none of the US automakers is assured of surviving our economic times.
It’s just that Chrysler and GM merger HAS NO GOOD ASPECTS, and the only purpose is for Cerebus to get a pile of public money.
You post the thread. You talk this shit?
I already did, in the posting. The threat is that this forced merger by Cerebus will destroy both Chrysler and GM, and the employment and tax consequences of those two failures will be so enormous it could be the difference between recession and depression.
Again, the only PURPOSE of this merger, is for Cerebus to gain control of GMAC and sell it’s weak securities to the government for a huge pile of cash. They appear willing to take down both GM and Chrysler to get ahold of it. And they want YOU to fund the process.
BTW, Google recommended a search search for Ceberus which brings me to the company you're discussing. Question: Why can Ceberus not act independently of GM if they have controlling interest of GMAC?
The name is kind of appropriate.
Forbes: Named after the mythical three-headed dog that guards the gates of hell, Cerberus Capital Management has become a driving force among private equity firms. One of its more recent moves is the purchase of 80% of Chrysler from Daimler in 2007. Cerberus was also the lead investor of a group that acquired 51% of GMAC, the financing arm of General Motors. The company also owns bus manufacturer Blue Bird and car parts maker TA Delaware (formerly Tower Automotive). Other holdings include a 45%-stake in Japanese bank Aozora, real estate services firm LNR Property, and a 52%-stake in ACE Aviation Holdings, the parent company of Air Canada.
Sometimes I feel like Teddy Roosevelt...it’s weird when someone with libertarian roots feels that way.
You’re not understanding... Cerebus IS ACTING INDEPENDENTLY OF GM. Cerebus owns 51% of GMAC. If GMAC sells 5, 10, 100, or however many billion in securities to the treasury, the cash will not go to Cerebus alone, but will be shared with GM.
Cerebus wants full control AND full ownership so it can keep everything, but is not willing to offer GM cash for the rest of GMAC. HOwever, GM is still dependent upon GMAC to finance it’s auto sales, and Cerebus can order GMAC to simply stop financing for GM and all but kill the company due to severe sales loss.
Basically, Cerebus has managed to find a way to blackmail GM into almost anything Cerebus wants, by controlling the financing of GM auto sales.
It won’t happen.
You’re right about the spelling. But what I want to call them I can’t say or post in public.
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