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To: blam
There are private stock holders that already own the big-3. What happens to them?

They are already screwed. Remember that stock owners are residual owners -- they get paid last, once the more senior claimants (bond holders, wage earners, trade debts) get paid, but they own everything that's left over. In the case of a profitable company, that's a lot. In the case of GM, the value of the stock is dwarfed by the other claims, which is why the stock is worth close to zero.

I saw Sen. Corker of Tennessee on CNBC this morning. He said that the bill failed "over three words." They had gotten enough concessions from all of the stakeholders (management, bondholders, large stockholders, UAW pension) to have produced what amounted to a prepackaged bankruptcy. There was one thing left: in order for the companies to be profitable going forward, their future wages would have to be brought in line with those of non-union car producers (American Toyota, Honda, BMW, etc). They asked the UAW to name a date in the next year or two by which they would make their wages conform to those of their competitors, and the UAW refused.

And there you have it folks. A non-bankruptcy bailout is a continual preferential funding of the UAW by the taxpayer. They will take no less.

61 posted on 12/12/2008 6:14:46 AM PST by Pearls Before Swine (Is /sarc really necessary?)
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To: Pearls Before Swine
"And there you have it folks. A non-bankruptcy bailout is a continual preferential funding of the UAW by the taxpayer. They will take no less. "

Thanks for the explanation and update.

We must flood the White House phone lines to stop RINO Bush from rescuing the corrupt UAW.

63 posted on 12/12/2008 6:29:18 AM PST by blam
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