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View Diary: BMW--The Ultimate Layoff, Taxpayer-Robbing Machine (175 comments)

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  •  Clawback (5+ / 0-)
    Recommended by:
    Tasini, mrblifil, Betty Pinson, ratzo, Matt Z

    Clawback those subsidies and attach automatic clawback conditions with automatic collections to every dollar of taxpayer funds including Medicare payments.

    Eliminate the Bush tax cuts Eliminate Afghan and Iraq wars Do these things first before considering any cuts

    by kck on Wed Jul 06, 2011 at 10:10:49 AM PDT

    •  you can't clawback what's been repaid (2+ / 0-)
      Recommended by:
      kck, Huginn and Muninn

      a simpler solution would be to empower the NLRB to enjoin this practice as a "sham" transaction.

      "This world demands the qualities of youth: not a time of life but a state of mind[.]" -- Robert F. Kennedy

      by Loge on Wed Jul 06, 2011 at 12:09:58 PM PDT

      [ Parent ]

      •  Didn't see in these links that the loans're repaid (0+ / 0-)

        If they are, then for the future the interest rates, lower than market, should come with conditions so market rates can be collected if the company bails on its commitments.

        The very notion of bail-outs provides incentives for fragile companies or markets to make a killing on the way out. The US gov't needs to spend more attention to mitigating the attraction for short term reactions over guiding principles.

        Eliminate the Bush tax cuts Eliminate Afghan and Iraq wars Do these things first before considering any cuts

        by kck on Wed Jul 06, 2011 at 12:19:14 PM PDT

        [ Parent ]

        •  it's a bit of an exceptional case, (2+ / 0-)
          Recommended by:
          kck, Huginn and Muninn

          the loans were only below market because the markets were frozen.  The commercial paper facility was designed for good (well-capitalized) companies to finance operations, with the inability to do this forming the link between the crises in financial institutions and the industrial sector.  This type of loan is by its very nature short-term, and if the loans weren't repaid, Boxer's letter wouldn't have used the past tense.  

          I knew they didn't get TARP money, but this article clarifies it was part of the commercial lending facility:  http://www.bloomberg.com/...

          This article makes clear the commercial paper loans were paid back:  http://jalopnik.com/...

          it also describes one of the securitization facilities, which indirectly financed the credit-arms of automakers, though not BMW, particularly.  

          BMW was, oddly enough, eligible for cash for clunkers.  I guess if they weren't, Germany might have been able to impose countervailing duties on Opels and Fords as a WTO violation.

          "This world demands the qualities of youth: not a time of life but a state of mind[.]" -- Robert F. Kennedy

          by Loge on Wed Jul 06, 2011 at 12:34:43 PM PDT

          [ Parent ]

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