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I wish people would stop using the post office as a whipping boy for the supposed drawbacks to government administration of business. When one considers the volume of mail, much of it junk, that they have to deal with, they do a pretty decent job, in my opinion.

"Are we creeping toward socialism?"

I think we are.

How much control should have over private corporations is indeed a good question. My answer would be, a lot more than they had before.

Look what the big corporates did last year when they had free reign.

Doug T......The mutual fund guy
http://www.mutualfundwealth.com/

The only thing that should be too big to fail is the government. Things that are too big to fail should be the domain of the government. Utility companies, national defense, education are under this category. If the auto industry and banking industry should too, then it only makes sense for the government to keep this under their control as well.

For those of us, identified by Obama as evil "speculators", who are concerned over the loss of our GM Bond and common stock investments we acquired to help provide income during our retirement years, the current tender offer to exchange GM bonds or notes into new GM Stock is worth your scrutiny.

In my first pass through the 223 page GM Prospectus on the exchange offer I discovered GM's intent is that "prior to the distribution of GM common stock to tendering holders on the settlement date we intend to effect a 1-for-100 reverse stock split (the “reverse stock split”) of GM common stock".

Do your own math: instead of receiving 225 shares of GM common stock for every $1,000.00 of bonds you hold, you would actually get 2 shares after the 1-for-100 reverse stock split. It seems significant to me that we have heard no one reporting on this reverse stock split and it is only found buried in the Prospectus fine print.

If you also have concerns about the federal government, now controlled by the Obama administration, and what the implications are of their 51% ownership of GM common stock, take a few more moments and read these direct quotes from the Prospectus on this issue:


"Risks Related to the U.S. Treasury Debt Conversion

Following the U.S. Treasury Debt Conversion, the U.S. Treasury (or its designee) will own a controlling interest in GM and its interests may differ from those of our other stockholders.

In accordance with the U.S. Treasury Debt Conversion, GM expects to issue shares of GM common stock to the U.S. Treasury (or its designee) that would consist of at least 50% of our pro forma common stock ownership upon consummation of the exchange offers.

We currently are in discussions with the U.S. Treasury regarding the governance of our company following consummation of the exchange offers and therefore we cannot assure you as to what role the U.S. Treasury will play.

Absent other arrangements, as a result of its ownership of GM common stock, the U.S. Treasury will be able to elect all of our directors and to control the vote on substantially all matters brought for a stockholder vote.

In addition, through its stockholder voting rights and election of directors, and its role as a significant lender to us, the U.S. Treasury will be able to exercise significant influence and control over our business if it elects to do so.

For example, the U.S. Treasury will be able (if it elects to do so) to influence matters including:

• the selection and tenure and compensation of our management;
• our business strategy;
• our relationship with our employees, unions and other constituencies
• our financing activities, including the issuance of debt and equity securities.

In the future we may also become subject to new and additional government regulations regarding various aspects of our business as a result of the U.S. government’s ownership in (and financing of) our business. These regulations could make it more difficult for us to compete with other companies that are not subject to similar regulations.

To the extent the U.S. Treasury elects to exercise influence or control over us, its interests (as a government entity) may differ from those of our other stockholders. In addition, the U.S. Treasury’s ability to prevent any change in control of GM could also have an adverse effect on the market price of GM common stock. The U.S. Treasury may also, subject to applicable securities laws, transfer all or any portion of its GM common stock to another person or entity and, in the event of such a transfer, that person or entity could become the controlling stockholder.

Possible future sales of GM common stock by the U.S. Treasury could adversely affect the market for GM common stock.

We cannot assure you as to if, when, how or to whom the U.S. Treasury will transfer its GM common stock, or the effect, if any, that future sales (whether public or private) by the U.S. Treasury of GM common stock would have on the market price of such stock. Sales or other transfers of substantial amounts of GM common stock, or the perception that such sales could occur, could adversely affect the market price of GM common stock.

If the U.S. Treasury sells or transfers shares of GM common stock as a block, another person or entity could become a controlling shareholder of our company."

Now, if the above statement isn't enough to scare the hell out of any evil "speculators" out there, or any other potential GM investor, I don't know what it would take.

Good luck to the terrific GM management team that ran our company right into the ground. You willingly turned control over to the government and GM (now Government Motors?), will get direction from the Green Crowd to build all those wonderful fuel efficient Fiat models that American drivers have been waiting desperately to buy.

As for me? I concede defeat. My GM common stock investment has been "zeroed out" and my GM bond holdings are soon to follow. I guess that's all an evil "Speculator" should expect.

John McBaine
jmcbaine@aol.com

Before we decide where we are heading, perhaps we should analyze what brought us to this point