Treasury Removes GM Plan From Its Website

Since GM submitted its February 17, 2009 Restructuring Plan, the Treasury Department published the plan on its website in pdf format.  Mysteriously, Treasury removed the GM Restructuring Plan from its website this past Monday (03.30.09), the same day it   issued its Determination of Viability Memo which concludes the GM Restructuring Plan is not viable.  Obviously, this was not a coincidence.  Tomorrow I will offer a theory as to why Treasury may want the public to forget about GM’s Plan.

© 2009, by John Butrus, All Rights Reserved

GM – JUST FIX IT!

Last fall, Saturday Night Live introduced an ersatz financial consultant, Oscar Rodgers (Kenan Thompson), as a Weekend Update guest who offers advice on how to fix the economy. In the sketch (see video), Rodgers’ repeatedly shouts his proposed cure for the economy, “FIX IT!”  When pressed to provide details, Rodgers boisterously elaborates, “Identify the Problem – FIX IT! Identify another problem and – FIX IT! Repeat as necessary until IT IS FIXED!”  Surprisingly, Rodgers’s prescription adheres to Albert Einstein’s advice that, “Everything should be made as simple as possible, but not simpler.”  The comedic character and pre-eminent physicist provide practical guidance with respect to the deteriorating GM crisis.

GM BAILOUT – Smoke and Mirrors

On March 12th, GM’s CFO Ray Young said that GM will not need the $2 billion March [bailout] installment. Mr. Young reported this as a positive development.  The media reported this development as a possible change in GM’s fortune.  Hardly!

DICK MORRIS – EXAGGERATED MONEY SUPPLY FIGURES?

In Fox television appearances, and in a March 3, 2009 article published on TheHill.com Dick Morris made the following claim: “In the past five months, according to the Federal Reserve Board, the money supply in the United States has increased by 271 percent.” [Emphasis added].  This highly inaccurate statement serves as the basis for  Mr. Morris’s prediction that hyperinflation will coincide with economic recovery.