Daily Archives: May 1, 2009

Chrysler is Saved: By Going into bankruptcy

This should have been done in the first place Chrysler will go into bankruptcy in New York . The United Auto Worker union will receive a considerable stake in new Chrysler. Italian Automobile maker Fiat, SA will get a 20% stake in the new company at first. The amount will increase to 35% once government loans are paid back to the US and Canadian Governments. Daimler AG will sell its remaining stake of Chrysler,LLC to Cerberus Capital Management and pay as much as $600 million into the automaker’s pension fund.

The submitted court documents indicated that there would be a reorganization plan presented to the court in 120 days, on August 28, 2009. A White House official indicated that the government would provide debtor-in-possession financing for between $US 3 billion to $US 3.5 billion, and upon a completion of Chrysler bankruptcy restructuring and court proceedings, the company would be eligible to receive up to $US 4.5 billion in financing to resume operations, for total of $US 8 billion of government support. Prior to the bankruptcy filing, the Chrysler had received $US 4.5 billion in financing from the U.S. government, under a George W. Bush administration plan, in December 2008, after the lame duck Congress declined to approve legislation to provide federal loans. Chrysler announced on the day of the bankruptcy filing, that during the restructuring, it would cease most manufacturing operations on May 4, 2009, and resume production “when the transaction is completed, which is anticipated within 30 to 60 days.”

Chrysler, will closed all plants on May 4,2009 until further notice.

Chrysler CEO Bob Nardeli , will resign once deal is completed.

President Obama was angry that Hedge Funds groups refused to get involved and do their part. But those Hedge Funds who refused to get involed would less than ten percent in shares of thr new company.

From Wikipedia

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So much for that 95% tax cut. Millions to payback the Tax Credit.

President Barack Obama’s tax cut for 95% of all tax payers has a hidden surprise that has been revealed. Uncle Sam want its money back. Due to a change in tax withholding tables by the IRS; millions of American will receive more money than they are entitled to which means it must be paid back  next year.

Those who will affected included Married couples here both spouses work,  workers with more than one job, retirees that have their federal income taxes withheld from their pension payments, and Social Security recipients with jobs that provide taxable income.

The IRS has not notified the public of the until now of the change.”They need to get the Goodyear blimp out there on this,” said Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants. However IRS spokesperson Terry Lemons said,  The new tax tables mean smaller refunds. The Average refund was $2,700 last year

But if  you calculate your withholding, so that can a smaller refund  you are in trouble says Jackie Perlman a tax advisory with H and R Block Tax Institute. Perlman’s advice check your federal withholding make sure enough has been taken out. if married make sure to move to a higher tax rate of single people. If you work two jobs have one employer take extra taxes withheld. You can do it by your W-4.

From A.P. via Yahoo News

Swine Flu: The latest 119 cases in 19 states. Vice President urges people not to fly nor to use trains.

The CDC, Departments of Homeland Security and Transport held a joint press conference to remind people of the need to wash your hands often.

DHS have 50 Million cases of Tamiflu.  Some of the cases of  Tamiflu have been shipped to the hardest hit states including California, Texas and New York.

The Homeland Security Chief Janet Napolitano says closing the Borders would not have any benefit.

Transportation Secretary Ray La Hood says its safe to fly. This comes on the heels of Vice President Joe Biden  suggesting to NBC’s “Today” Matt Laurer He would not fly on get on a train being its a closed environment if you sneeze you could be infected which is standard thought unfortunately in this of political correctness. Both La Hood and Napolitano countered Biden’s remarks. Meaning that Biden meant travel to Mexico.

The Politico reports that White House staffers who traveled with President Barack Obama to Mexico are advised of measures to protect themselves after a member of the delegation came down with flu like symptoms and his family is likely to be infected.  The infected an advance person  for Energy Secretary Stephen Chu have to appear to spread the flu to his wife, kid and nephew. White House spokesman Robert Gibbs said,” All three have tested positive for H1N1 virus. The staffer was questioned if he was anywhere near the President.  The staffer was specifically asked if he was six feet of President Obama. He said no. This took place at a working dinner for the president  and Mexican officials.

The statement come as a surprise to many in Washington insiders  because the White House spokes man Gibbs said the flu posed no risked to President Obama on his trip to Mexico and the president was not  in danger; doctors told Gibbs earlier this week. The aid tested negative for Swine Flu but his family member were. The aid was not tested postitve because time had elasped. The aid returned  to Washington on April 18th. White House spokesman Gibbs said Energy Secretary Chu is not affected.

Meanwhile, KTRK’S 13 Eyewitness News has learned that the family of the child who died of Swine Flu visited Houston Galleria in the city’s Uptown section on April 7. But Dr. Susan Fisher-Hoch a professor of epidemiology at The University of Texas School of Public Health in Brownsville, said the toddler could have been infected  with H1N1 Virus in Brownsville.  Fisher-Hoch said the saliva can contain the virus. However Kathy Barton of the Houston Health and Human Services Department says it would been very difficult to transmitt the  virus through a large mall by a toddler in a stroller.