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  • Meet GM's Bondholders: Chris Crowe

    Throughout the next two weeks, the Foundry will be highlighting some testimonials of General Motors bondholders. When President Obama describes bondholders, you get the distinct impression of pinstripe-suit-wearing bankers with scotch in one hand and cigars in the other. However, that is far from the case. In fact, GM bondholders are retirees, parents, civic organizations, even union workers. But since the main aim of the Obama Administration is to pay as much taxpayer money to Big Labor Unions as possible, they neeed to create a bad impression of bondholders. Meet Chris Crowe.

    I’m a retired electrician from Denver, Colorado. I’m not rich and I’m not a Wall Street bank. These bonds finance my son’s college tuition and my retirement. I’m actually very concerned about not getting a check on May 15 from my bonds because I need this money to pay my property taxes. When the Administration refuses to meet with the bondholders or chooses to wipe them out, they’re wiping me out, and lots of others like me. We are Main Street, not Wall Street. Who is looking out for us and our interests? Mr. President, please protect us.

    Posted in Economics [slideshow_deploy]

    30 Responses to Meet GM's Bondholders: Chris Crowe

    1. Barb -mn says:

      Thank you to Chris Crowe for sharing your GOVERNMENT INDUCED dilemma.

      Obama has no conscience. Forget about not letting a crisis go to waste. He seeks the opportunity to cause whatever crisis he can in any or every area possible. He is an irrational, impractical thinker. Who despises freedom for the people and is doing everything to take it away. He is a jealous (all that relied on their own abilities w/out holding the hand of government)thug with the narrowest of mind control. This must stop!

    2. Gary Wilson, Toledo, says:

      The comments of this administration about the bond holders is right out of the Joseph Goebbels play book. Tell a big lie, tell it often, and ignore the truth, and if you are big and powerful enough, you can rewrite the truth. I hope and trust that the rule of law will prevail and the bond holders will be paid as preferred creditors should be under the law.

    3. Norm76013, TX says:

      Barb writes bad about the President. He is only following the playbook, and the "Rules for Radicals" that shaped his rise to power. He is doing a great job of bringing the country down and redistributing the wealth. Praise him for the good job he is doing even if it is in the wrong direction!

    4. Hillel Pitlik says:

      We individual bond holders have been the life blood of GM. Now the unions that sucked everything they could get from GM and never gave any quarter are getting a large percentage of what they seek. I've been dependent on the income from these bonds to continue in retirement. The current proposals are out of line. They don't consider the devistating effect on real people. No one is making reasonable proposals to the bond holders. We did nothing wrong. We weren't speculating. The gov't action will cause bonds such as GM's to be looked at with great suspicion. Bonds were supposed to be a first lien. What happened? The union members have gleefully sat on their asses while they were getting paid by GM for doing nothing. Shame on GM but why should the little guy suffer?

    5. GM_Bondholder says:

      The offer to the UAW. 20Billion debt = $10 Billion CASH and 39% of the new company.

      The offer to the government. $15 Billion debt = 50% of the new company AND half of the debt (7.5 Billion) remains owed.

      The offer to the bondholders $27 Billion debt = 10% of the new company.

      I'm a bondholder. I was offered 225 shares of the new GM for every $1000 GM owes me. In the fine print, this agreement comes with a 100:1 reverse stock split. This means for every $1000, I get 2.25 shares. If the shares double in value, that puts me at roughly $5 for every $1000 I am owed.

      Before anyone villainizes the bondholders for "pushing GM into bankruptcy", realize the offer we are given is neither fair nor equitable. The Fed gets 18x the return per dollar than the bondholders and maintains debts owed to them. The UAW gets 50% of their debt paid in CASH, AND they get more than 10x the return per dollar than the bondholders.

      The bondholders stand get pennies, maybe less than one penny per dollar, and they're being chastized for not jumping at the opportunity.

    6. Richard, Dayton OH says:

      Unfortunately, this is going to get far worse before it gets better. Although Mr. Crowe wants Obama to help him by supporting GM, the fact is the more Obama does to the private sector the longer this economic collapse is going to be.

      What Mr. Crowe needs to do is get his money to a safe place, invest in Inverse EFTs, and protect his capital until we pull out of this.

      You will take a loss, but you need to dump all finance and automotive associated investments now to take advantage of this Bear market rally.

      Sorry to be the bearer of bad news but the market is going to tank badly, very badly and soon.

    7. LW, Newport News VA says:

      Bankruptcy law was turned upside down. Ignored. No one even remotely connected to the courts yelled foul. Obama got away with this unlawful action. Next time he'll go further. I'm waiting for him to suspend the lst & 2nd amendments. And sadly, as in the case of GM, no one will be able to do anything to stop him.

    8. Pingback: Heritage Foundation profiles small bondholders - Main Street Bondholders

    9. Al, The Villages, Fl says:

      Other than the obvious socialist direction has anyone noticed that we do not know what President Obamas vision for America is? He seems to be doing his socialist thing and rewarding his backers (unions, homosexuals, socialist side of the academic world, environmentalists etc.)to be done at any and all costs. Of course, during the Bush years, the dems undermined the nations war effort with that same "devil be darned" attitude. They may think that it can all be fixed after they get their way. However, look at what happened to the USSR – I doubt that many thought that the USSR could go bankrupt but it did.

    10. Gary Grefenberg St. says:

      Five years ago, after my father's death, my mother sold the family home and put most of the proceeds ($72,000) into GM bonds upon the advice of her friendly neighborhood banker. The banker assured her this would provide her with income the rest of her life because, he said, the odds of GM going bankrupt were extremely unlikely since if GM got into financial trouble the whole country would be in serious trouble and "the government would not let that happen". Being life long Democrats we believed him.

      For the past five years my mother's annual income has been $20,000 only because of the annual GM $5,300 bond proceeds. She's now eighty-nine years old, living a simple life in her small condominium. Yet as a GM bondholder I guess she qualifies as one of those selfish cigar-smoking fat cats who are forcing GM into bankruptcy, a stereotype fostered by our government.

      She's willing to take a hit, a big hit, as long as the pain is equally distributed. This proposal does not come close to that. By bending if not breaking the rules this government is playing favorites with Wall Street bankers and hedge fund managers who get bailed out by our tax dollars while 89 year old widows are asked to sacrifice for the greater good of our economy.

      So this is the Change we voted for last fall?

    11. Bill W Minnesota says:

      I can say I will never grace the seat of a GM car with my backside ever again. I mean not even a ride in someone elses GM car. We the people can still put these clowns out. As consumers the only thing we can do is speak with our wallets. They can only last so long if the people still adamantly refuse to do business with them. I don't care if they are giving them away. 1000 dollar coupons to get you to buy a piece of crap! Not only will they never see a dime of my money I will talk trash to everyone I see in a new GM car.

    12. Jim Hollis, St. Loui says:

      If one holds GM bonds this is certainly a personal concern. But, GM bonds are really insignificant issue in what is transpiring in our country…destruction of Capitalism system. This Socialist administration is the grand hocus pocus "David Copperfield" great illusionist "Capitalism and Freedom Terrorist Team". Distract the masses with "feely issues" on one hand, while the other hand steals their freedoms, rights, and wealth. Excite the masses about AIG exec bonuses (Yeah..get those guys for receiving millions in contractural retention bonuses…what about the crooked politicians stealing billions/trillions of US wealth???), enhanced interrorgation techniques (how many attacks on US soil recently?? Read Wm J. Federer's "What every American Should Know About the Qur'an" to comprehend this jihad war…one side can't quit and expect the other team will jihad intra-squad…), climate warming (1500 feet deep glacier over NY City melted long before man invented uses of oil, gas, coal….). What do you think the probabliity of the economy just coincidentally tanking 8 weeks before the Presidential election totally due to free market forces? (Barney Frank, Chris Dodd, Charlie Rangel, ChuckU Schummer, Fannie Mae/Fredie Mac, Geo Bush, Dick Cheney et el are not free market forces..) What do you think the probability of the economy being manipulated into a major crisis to welcome a Socialist to the White House? The GM bond issue is not even the tip of the iceberg in that Socialist's agenda to grab wealth and control the means of goods and wealth production, and the desire, initiative to create wealth. Take over of the housing, mortgage, finanical, banking, manufacturing (fire/hire company CEOs; make advertising budget decisions; determine "just" compensation), energy segments of our economy; give wealth to those that aren't intelligent/industrious enough to earn or manage wealth….but can pull the voting lever for "freebies". Bill Ayers got smart and quit blowing up public buildings and redirected the US overthrow into subverting the educational system with the likes of Ward Churchill and The Great Community Organizer Barack Huessien Obama toward expected entitlements…for your vote please). The feel good cry "no child left behind" by an educational system that appears to NOT want an intelligent electorate….how could any system fail as badly as US eductional system? Oh yeah, the Energy Dept (took US foreign oil dependance from 30% to 75%…shining rationale for more government), Social Security (bankrupt), Medicare (bankrupt), Border security (can't keep a blind donkey out), Drug Enforcement (drugs are closer than your corner Walgreens)…..oh, that's right… government functions!!!! But, Obama says more government is the answer!!!! Attacking citizens' freedoms via great sounding titled bills….The Fairness Doctrine, Hate Crimes Act, DHS Sec. Napolitano Right Wing Terrorist Alert (anybody beleiving in the Constitution/Bill of Rights is RIGHT Wing Extremist from Socialist Obama), HR2159 "Denying Firearms and Explosives to Dangerous Terrorists Acts of 2009" (great title, who could object to this, but one only need be suspected by AG Eric – Hate Your Guns Rights -Holder without due process, without explaination of charges/reasoning, no recourse or defense)….these are aimed at the First and Second Amendment Rights. Disarming and silencing citizens preceeds government takeover. A tyrannical government….are we there yet? Any minute, Honey!!! By the way….MY MOTHER (88yrs) has said this TO ME at the dinner table!!!! (See moderator note beneath comment box below…)

    13. Moose says:

      Don't forget the media in all of this. They are giving Obama the stage to make these lies happen. It's time to stop tuning in to network news or buying your local newspaper.

    14. Larry, in the Republ says:

      I wonder if HOWIE LONG needs a "little MAN STEP" to help him get through the remainder of his Chevy truck commercial contract? Now "they" will all say what "everybody" has said already:" Quick Howie, jump the fence before OBAMAs' bull gets you 'bobbed on one of his horns!" I sure hope Mr. Long didn't take "future" GM stock/OBAMA bonds as part of HIS payment for touting the American Revolution! Well, Viva la Revelution! Welcome to the New America! By the way, how's the "Heartbeat of 'YOUR' America"? Okay, I'll stand down for now. But, I reserve the right to say 'I told you so' during numerous other fiascos yet to manifest themselves, because of Governments' insatiable desire to "Run a Car company" down the road of perdition! It's okay Howie; take a little man step on over the fence, before the ChiTown Souless Train rolls you up under its wheels! Maybe the American buying public will follow you this time, if "they" haven't been COMPLETELY alienated by now. The time to REVOLT is now America-lead with your pocketbooks. Administrate with your VOTES! Best wishes.

    15. G. Longobricco says:

      I'm a bond holder and I count heavely on the bond to pay my taxes . I'm basicly retired and live a very sparce life. This has hit me hard. Sleepless nights trying to think where the money going to come from . Yet the lose of the principle . Its like having the floor drop out from under you.I lost almost everything ,with no place to turn . I could see loosing my house . I was reasured by my broker that if anything goes wrong with GM the money the bondholder loan to then wound be the top of the list during any bankrupcy. Well it seems like it's all tured up side down . How coud anyone who want to invest in anything as a bondholder feel safe. If G M has this as a outcome for Bondholders ,who would inves in bonds in any company. The trust in the bankrupcy court system would be shattered.

    16. Spiritof76, New Hamp says:

      Nearly 60 million Americans voted for Obama following the herd chanting change without knowing what that was. It was like the followers of Rev. Jones that threw a Kool-Aid party.

      A lot of people from Wall Street to Main Street including the bond holders and commodity traders voted for him.

      They voted for a socialist government. This is what the Socialist tyrants do. Our Country founded on individual freedom and responsibility with minimum interference from the government is being destroyed from within.

      There is no sense in crying about it, case by case.

      The hard part is that majority of Americans do not have what it would take it to restore our Founding principles. So, welcome to the land of self-made slaves!

    17. John Sheets, Utah says:

      Note to Bill W from Minnesota, the real fox in the hen house is not GM but the Socialist in the White House. What has been done to the American Automobile business is nothing short of criminal. In the early years of the Industrial revolution we had robber barons and they are back not as barons but dictators who can convince some that we needed change and the change is 5 dollars on a $1000 investment in their bonds. That's a great change.

    18. Nan says:

      While the management at GM might be thinking their actions will save their skin, the public is alarmed, exasberated, unnerved, and irrate at how the little guy is being hurt. Chrysler just threw profitable dealers out with three weeks to sell their inventory that they bought prior to the bankruptcy. Now GM is following in their footsteps. If they think that this terrible insideous action is going to bring them back to life, with the public as mad as they are, then they are in for a big surprise. Obama of course is loving this, because this is a prime opportunity to take over private enterprise, and control the economy any way he wishes.

    19. duelles, Santa Fe, N says:

      Boy, I love my Dodge 3500, 5.9 litre engine, Quad Cab with an 8 foot bed. I think maybe Chrysler was too big to fail or perhaps made cars and trucks vital to the existance of America.

      But, no. It was bailed out for GREED. Obama's need for union support and a payback for their vote.

      Norm< Obama gets no praise from me, not even as a mocking, joking, ridicule. He is detestable. He will say anything you wish to hear and continue to provide a ruinous administration policy for my grandkids.

      I'll go with Barb, MN's comments.

    20. Jamie Vosacek, San D says:

      If you own GM bonds, email Retiree and Individual GM Bond Savers at RIGMBS@gmail.com. We have retained legal counsel and demand equal rights for all GM creditors, in or out of bankruptcy court. We welcome you to join us.

    21. Mark, Ocala Fl. says:

      I too am a retiree with GM bonds and bought the senior GM bonds relying on the legalities of bankruptcy law.I also bought Ford bonds which have behaved quite differently of late. Recall that F and GM both felt they needed 20 to 25 billion to survive back in the fall.

      Fortuitously F had arranged for 23.5 billion of credit back in 2006. GM made the same move but only reserved 4 billion. Consequently GM had to go to the Gov. for money and F did not, Both of these companies exchange traded bonds had sunk down to 3 dollars or less a few months ago. Ford offered and was able to repurchase part of their debt for 7.50 per bond with interest and today those remaining bonds are worth 13-14 dollars each on the open market and GM bonds are worth 1 dollar thanks to the government intervention. This is no bailout by any stretch of the imagination.

    22. Jim, Nebraska says:

      I am a military retiree, investing in the GM bonds approx 5 years ago. I am what is called a retail investor and certainly not a Wall Street type investor. I need the bond interest, but will certainly thing long and hard against ever buying any bonds in the future. I was afraid Obama would have these socialist tendencies during the campaign. But I am certainly not happy being proven right.

      I am not swapping preferring to take my chances in bankruptcy.

    23. Susan, Colorado says:

      I received them as inheritance from my grandmother (father’s mother). I was saving them to help pay for expected future costs of taking care of my father who has dementia and severe short-term memory loss (most likely Alzheimer’s). Guess I will do the same as Jim from Nebraska. Thanks Jamie.

    24. Scarlett, California says:

      When the average investor puts their hard earned money into a bond, etc, they expect that there are certain guidelines in place to protect their investment. Also, we elect our government officials to protect this country and it's population. So when did the average person and their hope for fair treatment by investing in this countries economy, make them become so expendable? I realize that my investment is not one of a fortune 500 company, but it's just as important to my family not to have a loss due to the government's push for a GM bankruptcy. Is this Government's motto "Down with the little people – Hail big business"??????????????

    25. Dan in Texas says:

      I have been speculating on GM stock 100 – 400 shares at a time. I own no bonds. I do not think GM will go Bankrupt. I bet the Japanese banks own more GM bonds than we are being told. I think they will lend GM the money it needs just to keep the momentum of trade going. The momentum is worth as much or more than the assets of a dead company. The bonds are "unsecured" according to the article. Even if they have 1st lien; A 5 million dollar robot that builds unwanted cars is probably worth about $500. Do bond holders really want to split that among about 1000 of you. After the lawyers get through with liquidation expenses you'll be lucky to get 1/10,000 of your investment. The guy that talks about the 100 to 1 reverse stock split being prior to the 225 share trade for every $1000 makes a very important point if that is accurate. Something about that needs more scrutiny. If I knew GM would survive if I gave up $10,000 for 2,250 shares of stock; so that Ford would have an American competitor with all the know how of GM, I would surely take it and slowly convert the stock to copper and titanium and zinc and the like. If we sink the Chinese and Japanese bond holders we shut their economic engines off too. They have growing demand and Thanks to Mr. Nixon have tasted Filet Mignon AKA capitalism. I'm surprised GM never got into building ocean aquaculture systems. The tractor of the oceans would support many families.

    26. Stoneybee in TEXAS says:

      Why would you invest all or most everything you had in a security of a single company? STFU!

    27. Hilda, Delray Beach, says:

      Because it was listed on the DOW…America!

    28. Herman,Minneapolis, says:

      Why not get all the GM bondholders together, all over the country, and write a letter to GM president telling him how badly we have been treated and how we are suffering from the loss we have incurred because of company bankruptcy,and is there any chance that we will get anything back.Would you all be willing to put your name on this list? A thousand names will get us some action I guarantee it. Let's hear from you

    29. CURTIS RUFF LUBBOCK, says:

      GOT LETTER FROM GM THAT MY CLAIM ON GM BONDS WAS ACCEPTED. I HAVE NOT HEARD ANYTHING AT ALL. IT HAS BEEN SEVERAL MONTHS AND I DON'T KNOW HOW TO GET IN TOUCH. THEY SAID THEY HAD REACHED AN AGREEMENT ON THE AMOUNT OF SETTLEMENT AND THE ATTORNEY FEES. I HAVEN'T HEARD ANYTHING AND DON'T KNOW HOW TO GET IN TOUCH WITH THE LAWFIRM OR ANYBODY.

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