Monday, January 3, 2011

Car Czar Settles

I hope all my readers enjoyed their Christmas holiday with family and friends as much as we did here. I also want to take a moment and wish all my readers all the best for 2011. 

It's official! Obama's Car Czar Steven Rattner has settled.  It seems former Czar of the Presidents Task force on the Auto Industry and full time skid greaser Steven Rattner has agreed to a $10 million settlement with the NY Attorney General's office. Regular reader of this blog might remember my post Lead Pipe Cinch which, in regard to Rattner, I stated;

"Those pay-for-play charges involving NY state pension money would be more commonly referred to by the hoi polloi as bribery but hey, why get hung up on phraseology. 

You think the settlement with the SEC involved Rattner neither admitting nor denying wrongdoing?"

Well.... do you? According to the settlement announced we shockingly learn that:

"A spokesman for Mr. Rattner said in the official settlement agreement Mr. Rattner does not admit wrongdoing" 

Didn't admit wrongdoing huh? Too funny!  Butcha paid $10 mill. Maybe Rattner was brought up different than I was. Acutally quite differently I think because where I'm from you don't pay shit for something you 'allegedly' didn't do.
Speaking of car czar and auto industry task force I thought to myself  "what qualifications does this guy Rattner dude have to be the car czar for the President ?"

Was it his experience selling used cars at some 2 bit 'B' lot in midtown? No wait... Rattner never did that.
Was it his experience as a auto wholesaler? No wait.... Rattner never did that.
Was it his experience running the service/parts depts for a dealership in Hoboken? No wait.... Rattner never did that.
Was it his experience as a factory rep? No wait.... Rattner never did that. 
Was it his experience running operations for a large mega dealer in the tri-state area? No wait..... Rattner never did that either.

So maybe, just like me, you're probably asking yourself "what the heck did Rattner do to deserve being appointed car Czar?"


He was a reporter for the New York Times where he became buddies with- the controlling and noted Democratic Sulzberger family member - Arthur Sulzberger.
He was at Morgan Stanley where he started their telecom unit.
He was at Lazard Freres to form their media and telecom unit.
He did go on to form the media focused private equity group Quadrangle. (His private equity group was an investor in the Cerberus leveraged buyout of Chrysler.)
He and his wife are skid greasers eeer excuse me, I meant to say major Democratic party fundraisers. 


Now remember I never went Ivy league (but Rattner did, attending Brown) so it could just be me but does anyone else notice the automotive experience part missing in Rattner's CV?

Sure he was part of the Cerberus Chrysler deal but is that something you advertise?  Aww heck, if Bud Fox can run Blue Star Airlines with 2 summers as a baggage handler imagine what a Rattner can do with all that auto experience saddled with an Ivy league diploma. Oh wait now, I forgot, he has no automotive experience. 

Maybe I am being too harsh here on Mr. Rattner as it could conceivably be that he is a big fan and never missed an episode of the hit TV show Pimp My Ride, so lets not call him completely clueless on the subject.  

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
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Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
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