General Motors is claiming to have lost hundreds of billions of dollars. This is a fraud. The money they claim to have “lost”:
a. Was invested in profitable foreign auto plants.
b. Was given to executives as part of ridiculous compensations packages.
c. Was lost on gambles in the stock market.
d. Was accounting maneuvers aimed at showing a loss where none existed.
All the while that GM was supposedly losing billions, they continued to pay their execs huge salaries. Hmm. Could it be because the execs were successfully executing the fraud? After all what is the down side for GM losing billions (on paper)? They will get to raid their employees retirement fund and literally steal the employees money. They will get to disregard existing labor contracts. And they will get the American taxpayers to GIVE them hundreds of billions of dollars. And we threw Bernie Madoff in jail.
See more at: http://socialistworker.org/2009/04/20/what-killed-the-auto-industry
This was also posted at DU by Hannah Bell: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5747611