Hello Yupette,
No surprises from Dover, Kohl during the wrap-up session of the Pike Charades, there's going to be massive urbanization and gentrification of the Pike. If you want to live in affordable housing on the Pike you're going to have to earn 60% of area median income, which is $62,000 today. At least 10,000 new housing units will be constructed to ensure 5,000 are 'affordable'. Suburban character of the Pike will be ruined by massive infill. Stream beds, parking lots, suburban streets, hillsides, and sidewalks will be used for parks and recreation. No transit options have been considered except for Zimmerman's $160 million streetcar system. Schools and similar public infrastructure received no mention.
Oh, Dover, Kohl used a biased before-after architectural charade to get the a biased audience (no Latinos and Latinas attended) to agree that architectural renderings look better than photographs of old buildings. LOL.
For this we paid these Dover, Kohl turkeys $474,000 during FY 2011 and $182,000 over the past week to facilitate Zimmerman's Pike Charades? That sucks.
Maybe you want Arlington to be a redevelopment opportunity for every out-of-state planner, developer, lawyer, and REIT that throws big bucks at the County Board and gives County Planning Staff 'cash rewards' for, among other things, telling minorities they will be arrested for attending planning meetings. Not me.
Mary
Douglas Park
Thursday
Wednesday
Schools, Not Streetcars
Hello,
With installation of classroom trailers at W-L High School (completed in 2008) realization is slowly dawning on the County Board and School Board that, in fact, 5,000 more students will be attending Arlington's public schools in 2016.
But what are they going to do about it, beyond ordering a couple hundred more classroom trailers? Nothing that I can discern. During FY 11 Arlington County spent $1.5 million for Columbia Pike streetcar planning and $474,000 for Dover, Kohl's Pike in-fill planning and facilitation services. Nothing mentioned about schools, although more schools and brick-and mortar classrooms are Arlington's critical needs right now. Especially if population density along the Pike corridor doubles or triples over the next five years.
Now there is consternation at the School Board offices because it appears that the new Wakefield High School will be short classrooms the day it opens in 2013, something School Board candidate Miriam Gennari predicted last year.
Who's being irrational here? The Greens, Independents, Republicans, and fiscally responsible Democrats who want an end to reckless and irrational spending for the County Board's pet transportation, entertainment, recreation, and sports vanity projects? Or Mr. Zimmerman and the County Board, and their pet political cronies, special interests, REITs, and developers?
No Contest. Enough is Enough. Our kids' needs come first. Scrap Chris Zimmerman's plans for a wasteful and unnecessary $160 million streetcar system and build real schools and classrooms for our children instead.
Susan
With installation of classroom trailers at W-L High School (completed in 2008) realization is slowly dawning on the County Board and School Board that, in fact, 5,000 more students will be attending Arlington's public schools in 2016.
But what are they going to do about it, beyond ordering a couple hundred more classroom trailers? Nothing that I can discern. During FY 11 Arlington County spent $1.5 million for Columbia Pike streetcar planning and $474,000 for Dover, Kohl's Pike in-fill planning and facilitation services. Nothing mentioned about schools, although more schools and brick-and mortar classrooms are Arlington's critical needs right now. Especially if population density along the Pike corridor doubles or triples over the next five years.
Now there is consternation at the School Board offices because it appears that the new Wakefield High School will be short classrooms the day it opens in 2013, something School Board candidate Miriam Gennari predicted last year.
Who's being irrational here? The Greens, Independents, Republicans, and fiscally responsible Democrats who want an end to reckless and irrational spending for the County Board's pet transportation, entertainment, recreation, and sports vanity projects? Or Mr. Zimmerman and the County Board, and their pet political cronies, special interests, REITs, and developers?
No Contest. Enough is Enough. Our kids' needs come first. Scrap Chris Zimmerman's plans for a wasteful and unnecessary $160 million streetcar system and build real schools and classrooms for our children instead.
Susan
Monday
Pike Corridor Post-Redevelopment 'Open Space' : Your Front Lawn
Hi, Yupette,
Talk about a planning charade, tonight's open space planning meeting at the Career Center was a hoot. The County's open space planning consultants talked parks and playgrounds, but the reality is that there won't be much open space left after in-fill yuppification for anything but Pike Corridor residents to hie to existing parks and recreation centers (including the future aquatic center, indoor soccer arena, and boathouse) and use single family residential neighborhoods for their parks and recreation. Chris Zimmerman was there to ensure the consultants stayed on-track and there was a special guest appearance by Planning Commissioner Emeritus Carrie "Nana from Montana" Johnson.
Linda
Talk about a planning charade, tonight's open space planning meeting at the Career Center was a hoot. The County's open space planning consultants talked parks and playgrounds, but the reality is that there won't be much open space left after in-fill yuppification for anything but Pike Corridor residents to hie to existing parks and recreation centers (including the future aquatic center, indoor soccer arena, and boathouse) and use single family residential neighborhoods for their parks and recreation. Chris Zimmerman was there to ensure the consultants stayed on-track and there was a special guest appearance by Planning Commissioner Emeritus Carrie "Nana from Montana" Johnson.
Linda
Sunday
Saturday
Zimmerman, County Board, County Staff Push Pike Redevelopment, Gentrification
Hello, Yupette,
I attended this morning's Pike design charette. It's a charade all right. Zimmerman and the County Board were supervising County Planning staff who were facilitating the community leaders. Community leaders were given brown, red, orange marking pens to make changes when allowed by County Planning Staff. No one was allowed to deviate in any significant way from Dover, Kohl's yuppification / gentrification plans. Dover and Kohl are a couple of good old boys who live in yuppie enclaves outside Miami and specialize in-fill redevelopment "planning" that conforms to the wants of local elected officials, e.g., Zimmerman and the County Board.
Oh, some participants want double deck hybrid buses on the Pike rather than streetcars, but they were ignored. These charades will cost Arlington taxpayers $216,000. For what? For citizens to make very minor changes to a massive redevelopment that was approved months ago behind closed doors at 2100 Clarendon Blvd.
Robert
I attended this morning's Pike design charette. It's a charade all right. Zimmerman and the County Board were supervising County Planning staff who were facilitating the community leaders. Community leaders were given brown, red, orange marking pens to make changes when allowed by County Planning Staff. No one was allowed to deviate in any significant way from Dover, Kohl's yuppification / gentrification plans. Dover and Kohl are a couple of good old boys who live in yuppie enclaves outside Miami and specialize in-fill redevelopment "planning" that conforms to the wants of local elected officials, e.g., Zimmerman and the County Board.
Oh, some participants want double deck hybrid buses on the Pike rather than streetcars, but they were ignored. These charades will cost Arlington taxpayers $216,000. For what? For citizens to make very minor changes to a massive redevelopment that was approved months ago behind closed doors at 2100 Clarendon Blvd.
Robert
Friday
Clement Blasts County Board Pike Redevelopment as 'Reckless', 'Irresponsible'
Hello,
I was able to obtain a statement from County Board candidate Audrey Clement regarding Dover, Kohl's plans for Columbia Pike redevelopment. Here are her conclusions:
"With rounding for inflation the total cost of redeveloping the Pike is $160 million for the trolley (2010 estimate) + $290 million to subsidize affordable housing = $450 million. This doesn't include the cost of additional infrastructure improvements like schools and streets to accommodate three times as many people. Unless the Obama Administration agrees to pay for the trolley, the total cost is going to be absorbed by taxpayers throughout the county, not all of whom equate densification and gentrification with Smart Growth.
Tripling the density of the Pike when the schools are already overcrowded is irresponsible. Committing the County to pay for an unneeded extravagance to draw more people in is reckless. Although Dover, Kohl has provided an invaluable service in reporting the true cost of redeveloping the Pike, I oppose the total urbanization of Arlington County by the Arlington County Board to serve the wants of out-of-state REITs, developers, and planners.
Enough is enough. We are a tiny suburban County, not a major urban 'redevelopment opportunity'. Please join me in halting overdevelopment and recycling middle income people out of this county. Support my campaign for Arlington County Board."
I was able to obtain a statement from County Board candidate Audrey Clement regarding Dover, Kohl's plans for Columbia Pike redevelopment. Here are her conclusions:
"With rounding for inflation the total cost of redeveloping the Pike is $160 million for the trolley (2010 estimate) + $290 million to subsidize affordable housing = $450 million. This doesn't include the cost of additional infrastructure improvements like schools and streets to accommodate three times as many people. Unless the Obama Administration agrees to pay for the trolley, the total cost is going to be absorbed by taxpayers throughout the county, not all of whom equate densification and gentrification with Smart Growth.
Tripling the density of the Pike when the schools are already overcrowded is irresponsible. Committing the County to pay for an unneeded extravagance to draw more people in is reckless. Although Dover, Kohl has provided an invaluable service in reporting the true cost of redeveloping the Pike, I oppose the total urbanization of Arlington County by the Arlington County Board to serve the wants of out-of-state REITs, developers, and planners.
Enough is enough. We are a tiny suburban County, not a major urban 'redevelopment opportunity'. Please join me in halting overdevelopment and recycling middle income people out of this county. Support my campaign for Arlington County Board."
Thursday
Wednesday
Foxcroft Heights Gentrification-Facilitation Charade June 23rd
Hello, Ms. Yupette,
The Foxcroft Heights gentrification-facilitation charade will take place tomorrow, Thursday, between 7 and 9 PM at the Walter Reed Community Center, more than two miles from Foxcroft Heights. Why not across the street at the Sheraton where the other Pike charades will be held? Because then many more Foxcroft Heights residents would show up to protest the gentrification of their middle-class neighborhood. Zimmerman and his pet planner, Dover, Kohl, can't wait to redevelop Foxcroft Heights, to replace the uppity middle class with acquiescent yuppies and their passive servants. Oh, forgot to mention, the police will also be there.
It just kills the County Board, County Planning Staff, the County's pet developers, REITs, lawyers, and media boosters that any affordable middle class housing still remains in Arlington. All the hedo elite who are running and ruining Arlington are concerned about is building more hedo infrastructure.
George
The Foxcroft Heights gentrification-facilitation charade will take place tomorrow, Thursday, between 7 and 9 PM at the Walter Reed Community Center, more than two miles from Foxcroft Heights. Why not across the street at the Sheraton where the other Pike charades will be held? Because then many more Foxcroft Heights residents would show up to protest the gentrification of their middle-class neighborhood. Zimmerman and his pet planner, Dover, Kohl, can't wait to redevelop Foxcroft Heights, to replace the uppity middle class with acquiescent yuppies and their passive servants. Oh, forgot to mention, the police will also be there.
It just kills the County Board, County Planning Staff, the County's pet developers, REITs, lawyers, and media boosters that any affordable middle class housing still remains in Arlington. All the hedo elite who are running and ruining Arlington are concerned about is building more hedo infrastructure.
George
Monday
Sunday
Saturday
Citizens to Investigate Pike 'Planning'
Hello, Yupette,
Enough is enough. I live off the Pike. Work in Alexandria. Old Town residents have had it with 'development for the sake of development' along the Alexandria waterfront. I and many others have had it with Arlington's so-called 'planning process'.
Do you know how much the week-long (June 24-30) planning charettes will cost Arlongton taxpayers? More than $200,000. Most of it to Dover, Kohl. Oh, there's $5,000 per day for the hotel. For what? To make my street into a public park? To triple the density of the Pike? To rubber-stamp approval of an unnecessary $150 million streetcar system? To turn residential streets into arterials?
I and several other Pike residents are going to investigate exactly how much is being spent on this turkey. Looks like Dover, Kohl has a gold mining operation going on the Pike. No mention in their planning reports about our already-overcrowded schools. And the effects of massive infill on the environment. If members of Chris Zimmerman's Pike plenary group aren't going along with Dover, Kohl and the County's Planning Staff, why should I?
But first, I want to know how many millions have already been spent to make our historic Pike neighborhoods 'redevelopment opportunities'.
Cindy
Enough is enough. I live off the Pike. Work in Alexandria. Old Town residents have had it with 'development for the sake of development' along the Alexandria waterfront. I and many others have had it with Arlington's so-called 'planning process'.
Do you know how much the week-long (June 24-30) planning charettes will cost Arlongton taxpayers? More than $200,000. Most of it to Dover, Kohl. Oh, there's $5,000 per day for the hotel. For what? To make my street into a public park? To triple the density of the Pike? To rubber-stamp approval of an unnecessary $150 million streetcar system? To turn residential streets into arterials?
I and several other Pike residents are going to investigate exactly how much is being spent on this turkey. Looks like Dover, Kohl has a gold mining operation going on the Pike. No mention in their planning reports about our already-overcrowded schools. And the effects of massive infill on the environment. If members of Chris Zimmerman's Pike plenary group aren't going along with Dover, Kohl and the County's Planning Staff, why should I?
But first, I want to know how many millions have already been spent to make our historic Pike neighborhoods 'redevelopment opportunities'.
Cindy
Friday
Wednesday
Tuesday
South 9th and South 12th Street "Bicycle Boulevards" are the Latest Pike Planning Charade
Hello, Yupette,
Maybe you heard that South 9th Street and South 12th Street are going to become "bicycle boulevards" when the Pike is massively gentrified based on the County Board's and its out-of-state planners' decisions. Not true. South 9th Street and South 12th Street are going to become major arterials to relieve traffic volume on the Pike. The North-South streets and their residential communities would become "shared spaces" for residents of the Pike's in-fill apartments and condos. Of course, you have to be one of the County Board's pet Community Leaders to know this.
BTW, stay tuned for the kick-off Pike planning charade at Kenmore Middle School, tomorrow, June 15th, between 7 PM and 9 PM.
Kathy, Douglas Park
Maybe you heard that South 9th Street and South 12th Street are going to become "bicycle boulevards" when the Pike is massively gentrified based on the County Board's and its out-of-state planners' decisions. Not true. South 9th Street and South 12th Street are going to become major arterials to relieve traffic volume on the Pike. The North-South streets and their residential communities would become "shared spaces" for residents of the Pike's in-fill apartments and condos. Of course, you have to be one of the County Board's pet Community Leaders to know this.
BTW, stay tuned for the kick-off Pike planning charade at Kenmore Middle School, tomorrow, June 15th, between 7 PM and 9 PM.
Kathy, Douglas Park
Monday
County Board to Finance Pet Projects With Massive Pike Gentrification
Hello, Yupette,
I was able to obtain a copy of Dover, Kohl's "Columbia Pike Land Use and Housing Study" over the weekend. This is the expensive planning document that was presented to the County Manager and County Board at a joint meeting last Thursday.
Contained in this document are the plans (mostly already pre-approved by the County Board) for massive in-fill gentrification of the Pike. Nothing is said about the effects of massive in-fill gentrification on already-crowded schools, parks, playgrounds, streets, etc.
It's clear that the County Board is using massive gentrification of the Pike to fund it's pet vanity projects. If the County Board were not building streetcar systems, boathouses, aquatic centers, sports arenas, and wasting money on its pet programs the County Board would have plenty of money to build lots of affordable housing and renovate present affordable housing. The County Board is aided and abetted by a bloated County bureaucracy that wants to grow by completely urbanizing Arlington, and by out-of-state "planners" like Dover, Kohl.
2100
I was able to obtain a copy of Dover, Kohl's "Columbia Pike Land Use and Housing Study" over the weekend. This is the expensive planning document that was presented to the County Manager and County Board at a joint meeting last Thursday.
Contained in this document are the plans (mostly already pre-approved by the County Board) for massive in-fill gentrification of the Pike. Nothing is said about the effects of massive in-fill gentrification on already-crowded schools, parks, playgrounds, streets, etc.
It's clear that the County Board is using massive gentrification of the Pike to fund it's pet vanity projects. If the County Board were not building streetcar systems, boathouses, aquatic centers, sports arenas, and wasting money on its pet programs the County Board would have plenty of money to build lots of affordable housing and renovate present affordable housing. The County Board is aided and abetted by a bloated County bureaucracy that wants to grow by completely urbanizing Arlington, and by out-of-state "planners" like Dover, Kohl.
2100
Sunday
Saturday
Friday
Thursday
County Board Pike Work Session - Gentrification vs. Preservation
Hi Yupette,
I attended this afternoon's Pike redevelopment work session with the County Board and County Manager at 2100 Clarendon Blvd. The County's primary out-of-state development consultant, Dover, Kohl, and Associates, pitched massive Pike in-fill development to the County Board. The in-fill would consist of new buildings placed on the same parcels as existing apartment buildings, sometimes replacing existing buildings. This would allegedly place enough density on-site to keep the affordable apartments affordable.
County Board members Walter Tejada and Barbara Favola (both candidates this Fall) asked whether enough funds could be obtained to preserve affordable market-rate rental properties on the Pike (like Barcroft Apartments) pretty much "as is" with some upgrades.
Dover, Kohl also pitched the series of Pike Charettes (pronounced "Charades") to be held between June 24th and June 30th to persuade Pike residents to go along with Chris Zimmermans's grand yuppification of the Pike.
I attended this afternoon's Pike redevelopment work session with the County Board and County Manager at 2100 Clarendon Blvd. The County's primary out-of-state development consultant, Dover, Kohl, and Associates, pitched massive Pike in-fill development to the County Board. The in-fill would consist of new buildings placed on the same parcels as existing apartment buildings, sometimes replacing existing buildings. This would allegedly place enough density on-site to keep the affordable apartments affordable.
County Board members Walter Tejada and Barbara Favola (both candidates this Fall) asked whether enough funds could be obtained to preserve affordable market-rate rental properties on the Pike (like Barcroft Apartments) pretty much "as is" with some upgrades.
Dover, Kohl also pitched the series of Pike Charettes (pronounced "Charades") to be held between June 24th and June 30th to persuade Pike residents to go along with Chris Zimmermans's grand yuppification of the Pike.
Wednesday
Tuesday
Zimmerman, County Board Privatizing Public Meetings and Events
Hello, Yupette,
Have you noticed what Chris Zimmerman and the County Board are doing to public meetings and public access to information? They're privatizing everything. It will cost you $35 to attend the CPRO Pike luncheon to hear Zimmerman talk about Pike planning. The Pike "planning" charades at the end of this month are run by CPRO. It will cost another $50 to hear Zimmerman talk to the Chamber of Commerce about business opportunities. The working session on June 9th between the County Manager and County Board regarding Pike planning will not hear comments from the public. Important items are being placed on the County Board meeting consent agenda (there is only one item on the regular hearing agenda at the June 11th County Board meeting). This is going way beyond telling minorities that they are not welcome to attend Pike planning meetings, Civic Federation meetings, etc. It's become difficult or impossible for voters, taxpayers, and residents to know what's occurring in County Government, except via the County's PR organization and from press releases from the County's PR organization appearing in the local media.
Ron - Barcroft
Have you noticed what Chris Zimmerman and the County Board are doing to public meetings and public access to information? They're privatizing everything. It will cost you $35 to attend the CPRO Pike luncheon to hear Zimmerman talk about Pike planning. The Pike "planning" charades at the end of this month are run by CPRO. It will cost another $50 to hear Zimmerman talk to the Chamber of Commerce about business opportunities. The working session on June 9th between the County Manager and County Board regarding Pike planning will not hear comments from the public. Important items are being placed on the County Board meeting consent agenda (there is only one item on the regular hearing agenda at the June 11th County Board meeting). This is going way beyond telling minorities that they are not welcome to attend Pike planning meetings, Civic Federation meetings, etc. It's become difficult or impossible for voters, taxpayers, and residents to know what's occurring in County Government, except via the County's PR organization and from press releases from the County's PR organization appearing in the local media.
Ron - Barcroft
Monday
Sunday
Mark Kelly Reported Ready to Announce for County Board
Hello, Yupette,
I heard from a couple of Neo-Con activists that Mark Kelly is going to make another run for County Board. Looks from his recent statements he's going to run. The Neo-Cons who control the Arlington Republican Party are all for one or two candidates running against Mary Hynes and Walter Tejada. Moderate Republicans are only interested in getting wealthy in Arlington's current mega-development economy. Thanks for your blog.
Ted
I heard from a couple of Neo-Con activists that Mark Kelly is going to make another run for County Board. Looks from his recent statements he's going to run. The Neo-Cons who control the Arlington Republican Party are all for one or two candidates running against Mary Hynes and Walter Tejada. Moderate Republicans are only interested in getting wealthy in Arlington's current mega-development economy. Thanks for your blog.
Ted
Taxpayers, The Auto Bailouts, and Politics
Last November, General Motors’ IPO set a record for money raised at 20.1 billion dollars. This is all money returned to the taxpayers’ Troubled Asset Relief Program (TARP). The success of the IPO was not only driven by new investors, but also by stockholders and lenders who had been “stiffed” in GM’s Chapter 11 bankruptcy of 2009. The company recently reported its highest quarterly profit in more than a decade, helped by demand for fuel-efficient cars and a big gain from selling its stake in its former auto parts business. The biggest U.S. automaker said Thursday that it earned $3.2 billion, or $1.77 per share, in the first quarter. It was a great start for the year considering the spike in U.S. gasoline prices, a trend that would have sunk the company just a few years ago when it relied on gas-guzzling pickups and SUVs for profits. Earnings will accelerate if U.S. auto sales continue to creep back up toward the 15-million to 17-million vehicle-per-year sales rates the U.S. industry last saw in 2007.
"GM is making a lot of money at ‘depression levels’ of sales. As the market improves it should make even more money." said Dave Cole, chairman emeritus of the Center for Automotive Research.
The U.S. Treasury will remain GM's largest shareholder for now. It will likely take several years to unload the entire stake to keep from diluting its stock price. Taxpayers still own about 33% of GM shares. The stock price will need to rise to about $48.00 for the U.S. government to break even on its follow-on stock sales. At $48 per share, GM would have a market value of more than $90 billion.
Chrysler Corporation paid back more than 7.5 billion in loans to the American and Canadian governments in May. Chrysler had until 2017 to repay the loans, so this was six years ahead of schedule. The company has now paid back most of the loan money that saved it from going under. The government loans were high interest loans, about which Fiat/Chrysler Sergio Marchionne recently opined. Instead of merely complaining about “loan shark rates,” the company did something about it. The high interest on the U.S. Government loans certainly induced Chrysler’s partner FIAT to borrow the money to pay off the bulk of Chrysler’s outstanding government loans. Chrysler raised just over 3 billion through a bond sale and took out 3 billion in lower interest loans to come up with the money to pay back the government loans. This will save more than $300 million a year, according to the company.
The automaker still owes taxpayers about $2 billion. Treasury could get most of that back by selling its remaining 8.6 percent stake in the company, which it was given in exchange for the loans. Chrysler’s IPO has yet to be scheduled but FIAT just announced it is increasing its stake in Chrysler to 51% from the current 46% in advance of the upcoming IPO. As Marchionne recently observed, “The longer we wait, the more it costs,” referring to FIAT’s intention to buy shares from the U.S. Treasury.”
Chrysler’s recent earnings have also been strong, despite a market impacted by high fuel prices and a weak, but recovering, economy. Both companies stand to do extremely well as the economy improves and the SAAR rises to recent historical levels.
Both companies have announced initiatives to increase production and rehire thousands of workers. Chrysler alone has added more than 8,000 jobs since its bankruptcy.
In the meantime, Ford continues to do well in the still recovering economy despite having to bear the weight of interest on debt it accumulated to ride out the economic storm without having to seek taxpayer involvement. Ford has benefited from union concessions it received to maintain parity with its competitors.
The auto industry bailout, financed through the Bush Administration’s TARP program, spared the GM, Chrysler, AND Ford from liquidation and saved hundreds of thousands of manufacturing jobs at those companies and its suppliers.
To add perspective, had either company been forced into liquidation, the cost dropped on the taxpayers in the form of the Federal Pension Benefit Guarantee Fund would have been at least $38 billion. This in addition to the damage that would have been done to the North American industrial base, including military procurement at a time of two wars.
While Americans have been known to pile on “losers,” failures, and those who make mistakes, they love “redemption.” While there are those who refuse to buy a GM or Chrysler vehicle OR buy their stock because they were bailed out by the government, the companies’ strong sales and profit results indicate that, on balance, they are achieving a large measure redemption. The popularity of Chrysler’s “Made in Detroit” advertising campaign is further evidence.
In the meantime, the 2012 election campaign is getting underway and yes, it looks like the bailout of the auto industry could end up being one of many points of debate. One can expect Democrats to replay videos of Republicans who opposed the bailouts ad nausea. Already an ad paid for by the Democratic National Committee recaps positions taken by Mitt Romney, Newt Gingrich, and Tim Pawlenty.
Romney takes a significant hit in the ad. The former Massachusetts governor, whose father was governor of Michigan as well as the top executive at American Motors is being reminded of the hard-lined position he took in a 2008 New York Times Op Ed, “Let Detroit Go Bankrupt.” Yet Romney and others continue to use opposition to the bailouts as a campaign point, advocating a free-market system free of bailouts and subsidies. They maintain that even now it still looks like the bailout came at quite a cost to taxpayers, despite substantial evidence to the contrary. They maintain that allowing the automakers to go into liquidation wouldn’t have been such a terrible thing, which is easy to say since it didn’t happen.
Democratic candidates will point to the relative success of TARP and the auto company bailouts and paint a picture of what would have happened had TARP not been enacted and either company had liquidated.
As politics heats up leading up to the 2012 national elections, expect debate over the auto bailouts to play a major role in determining political winners and losers.
David Ruggles has spent his working life in every phase of the retail side of the auto business, new and used, sales and management, including consulting and training in both the U.S. & Japan. Ruggles has been a dealer for Mercedes-Benz, Chrysler, Dodge, GMC, Ford, Mazda, and Subaru, and has consulted for one of the world’s largest privately owned Toyota dealer groups located in Japan. He blogs at autosandeconomics.blogspot.com and writes regular columns for several publications.
"GM is making a lot of money at ‘depression levels’ of sales. As the market improves it should make even more money." said Dave Cole, chairman emeritus of the Center for Automotive Research.
The U.S. Treasury will remain GM's largest shareholder for now. It will likely take several years to unload the entire stake to keep from diluting its stock price. Taxpayers still own about 33% of GM shares. The stock price will need to rise to about $48.00 for the U.S. government to break even on its follow-on stock sales. At $48 per share, GM would have a market value of more than $90 billion.
Chrysler Corporation paid back more than 7.5 billion in loans to the American and Canadian governments in May. Chrysler had until 2017 to repay the loans, so this was six years ahead of schedule. The company has now paid back most of the loan money that saved it from going under. The government loans were high interest loans, about which Fiat/Chrysler Sergio Marchionne recently opined. Instead of merely complaining about “loan shark rates,” the company did something about it. The high interest on the U.S. Government loans certainly induced Chrysler’s partner FIAT to borrow the money to pay off the bulk of Chrysler’s outstanding government loans. Chrysler raised just over 3 billion through a bond sale and took out 3 billion in lower interest loans to come up with the money to pay back the government loans. This will save more than $300 million a year, according to the company.
The automaker still owes taxpayers about $2 billion. Treasury could get most of that back by selling its remaining 8.6 percent stake in the company, which it was given in exchange for the loans. Chrysler’s IPO has yet to be scheduled but FIAT just announced it is increasing its stake in Chrysler to 51% from the current 46% in advance of the upcoming IPO. As Marchionne recently observed, “The longer we wait, the more it costs,” referring to FIAT’s intention to buy shares from the U.S. Treasury.”
Chrysler’s recent earnings have also been strong, despite a market impacted by high fuel prices and a weak, but recovering, economy. Both companies stand to do extremely well as the economy improves and the SAAR rises to recent historical levels.
Both companies have announced initiatives to increase production and rehire thousands of workers. Chrysler alone has added more than 8,000 jobs since its bankruptcy.
In the meantime, Ford continues to do well in the still recovering economy despite having to bear the weight of interest on debt it accumulated to ride out the economic storm without having to seek taxpayer involvement. Ford has benefited from union concessions it received to maintain parity with its competitors.
The auto industry bailout, financed through the Bush Administration’s TARP program, spared the GM, Chrysler, AND Ford from liquidation and saved hundreds of thousands of manufacturing jobs at those companies and its suppliers.
To add perspective, had either company been forced into liquidation, the cost dropped on the taxpayers in the form of the Federal Pension Benefit Guarantee Fund would have been at least $38 billion. This in addition to the damage that would have been done to the North American industrial base, including military procurement at a time of two wars.
While Americans have been known to pile on “losers,” failures, and those who make mistakes, they love “redemption.” While there are those who refuse to buy a GM or Chrysler vehicle OR buy their stock because they were bailed out by the government, the companies’ strong sales and profit results indicate that, on balance, they are achieving a large measure redemption. The popularity of Chrysler’s “Made in Detroit” advertising campaign is further evidence.
In the meantime, the 2012 election campaign is getting underway and yes, it looks like the bailout of the auto industry could end up being one of many points of debate. One can expect Democrats to replay videos of Republicans who opposed the bailouts ad nausea. Already an ad paid for by the Democratic National Committee recaps positions taken by Mitt Romney, Newt Gingrich, and Tim Pawlenty.
Romney takes a significant hit in the ad. The former Massachusetts governor, whose father was governor of Michigan as well as the top executive at American Motors is being reminded of the hard-lined position he took in a 2008 New York Times Op Ed, “Let Detroit Go Bankrupt.” Yet Romney and others continue to use opposition to the bailouts as a campaign point, advocating a free-market system free of bailouts and subsidies. They maintain that even now it still looks like the bailout came at quite a cost to taxpayers, despite substantial evidence to the contrary. They maintain that allowing the automakers to go into liquidation wouldn’t have been such a terrible thing, which is easy to say since it didn’t happen.
Democratic candidates will point to the relative success of TARP and the auto company bailouts and paint a picture of what would have happened had TARP not been enacted and either company had liquidated.
As politics heats up leading up to the 2012 national elections, expect debate over the auto bailouts to play a major role in determining political winners and losers.
David Ruggles has spent his working life in every phase of the retail side of the auto business, new and used, sales and management, including consulting and training in both the U.S. & Japan. Ruggles has been a dealer for Mercedes-Benz, Chrysler, Dodge, GMC, Ford, Mazda, and Subaru, and has consulted for one of the world’s largest privately owned Toyota dealer groups located in Japan. He blogs at autosandeconomics.blogspot.com and writes regular columns for several publications.
Saturday
Favola Firehouse Fiasco to Cost Taxpayers Another $127,000
Hello Yupette,
I was outraged to see the County Board is wanting another $127,000 to complete the $18 million Cherrydale Fire Station because of "unforseen circumstances". This time resulting from street paving problems. This is item 20 on the County Board's consent agenda for the June 11th County Board meting. The County will be paying the Cherrydale Fire Station's architects another $27,000 as an additional "administration fee" for this project. Why?
When it comes to large construction projects for her employer, Marymount University, where she is Chief Lobbyist, Barbara was extremely attentive to ensure there were no delays. When it comes to us, the taxpayers, having essential public infrastructure completed some time in our lifetimes, she could apparently care less.
Frank, Cherrydale
I was outraged to see the County Board is wanting another $127,000 to complete the $18 million Cherrydale Fire Station because of "unforseen circumstances". This time resulting from street paving problems. This is item 20 on the County Board's consent agenda for the June 11th County Board meting. The County will be paying the Cherrydale Fire Station's architects another $27,000 as an additional "administration fee" for this project. Why?
When it comes to large construction projects for her employer, Marymount University, where she is Chief Lobbyist, Barbara was extremely attentive to ensure there were no delays. When it comes to us, the taxpayers, having essential public infrastructure completed some time in our lifetimes, she could apparently care less.
Frank, Cherrydale
Friday
Thursday
BICI TUNING: Aqu� Ten�is Una Bicicleta De Color Amarilla Y Negra Tuning, Es Una Bicicleta Muy Bonita Ya Que Tiene Una Pintura Muy Bonita Y Un Radio De
BICI TUNING: Aqu� ten�is una bicicleta de color amarilla y negra tuning, es una bicicleta muy bonita ya que tiene una pintura muy bonita y un radio de
Wednesday
1 Billion Non-Biodegradable Trash Bags to Landfills from Arlington Annually?
Hello,
I have seen the green this and green that all over Arlington the past couple of years. But did you ever try to figure out how many non-biodegradable trash bags are being sent to landfills from Arlington every year? A lot. Maybe as many as a billion trash bags of all sizes (from wastepaper basket liners to yard waste bags). How many of these trash bags are biodegradable? Almost none. It's difficult to even find a retail store that sells biodegradable kitchen trash bags in Arlington. I had to order the biodegradable kitchen trash bags for my home from the Internet. They are not cheap, which is probably why they aren't widely available.
If Mr. Fisette is so concerned about the environment maybe he can find an economical source of biodegradable trash bags for use in County offices, including the County Board offices.
Susan
I have seen the green this and green that all over Arlington the past couple of years. But did you ever try to figure out how many non-biodegradable trash bags are being sent to landfills from Arlington every year? A lot. Maybe as many as a billion trash bags of all sizes (from wastepaper basket liners to yard waste bags). How many of these trash bags are biodegradable? Almost none. It's difficult to even find a retail store that sells biodegradable kitchen trash bags in Arlington. I had to order the biodegradable kitchen trash bags for my home from the Internet. They are not cheap, which is probably why they aren't widely available.
If Mr. Fisette is so concerned about the environment maybe he can find an economical source of biodegradable trash bags for use in County offices, including the County Board offices.
Susan
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