Unveiling the Government Car Warranty
posted at 9:26 am on March 30, 2009 by Ed Morrissey
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Good news, American auto owners! If you’ve been eyeballing a Lexus or a CRV because you want to own a car whose maker will be around long enough to honor the warranty, take another look at Detroit. Instead of handling their own warranties, Uncle Barack and his dog Spot will handle your warranty — along with a hefty new bureaucracy:
Obama will make two other announcements Monday.
One, the president will announce a new government-backed warranty program for all new GM and Chrysler vehicles purchased during this restructuring period. A fund will be set up equal to 125 percent of the total cost to pay for warranty service. The auto makers will contribute 15 percent while the government will provide 110 percent, with the money coming from the economic stabilization funds, the gift that keeps on giving. A separate company will hold the funds and pay the claims even if one of the auto manufacturers goes into bankruptcy or out of business.
The president will also name a Director of Recovery for Auto Workers and Communities. Edward Montgomery, labor economist and former Deputy Secretary of Labor, will serve in the role, helping autoworkers, communities, and regions adversely impacted by the failure of the automakers find new jobs, businesses, and industries.
This is great news — for fans of the DMV. Vehicle owners can expect the same kind of efficiency and expertise they receive there in handling warranty issues with their vehicles. Instead of working with dealers on the warranties, the government will now have to get involved, which will mean extensive paperwork for every warranty claim as the Directorate of Auto Warranties will have to account for every single penny, or at least those pennies that don’t get earmarked for Auto Warranty Bike Paths by Rep. Jim Oberstar.
And let’s not forget what this will do for Detroit’s competitiveness. Now that warranties will get funded by Uncle Sam, what do you suppose will happen to them? They’ll get shortened, and if they become uncompetitive, it will literally take an act of Congress to get longer warranties offered by Detroit. But that’s not what will really happen. If the Directorate of Auto Warranties discovers that the competition offers longer and more robust warranties, the Directorate will simply get Congress to pass laws outlawing them. After all, we can’t have a bunch of furriners undercutting Uncle Sam, can we? Why, that would be downright unpatriotic!
Government does not belong in the business of offering auto warranties. Two years ago, that would have been so obvious as to elicit derisive laughter for even mentioning it. But when we get a bunch of used-car salesmen in the White House and Congress, this is the result.
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Shhhh…type softly.
You don’t want to wake America up.
artist on March 30, 2009 at 9:31 AM
To be quite honest, no one handles warranty claims well. So acting as if theres this gulf between the uberefficient consumer dream that is warranty claims service and the dreadful disgusting nightmare of the DMV is kind of ingenuous.
Also, in NY anyway, the DMV has come a loooooooong way. :-)
yes that was mildly facetious but i suppose gallows humor couldnt hurt at time like this.
ernesto on March 30, 2009 at 9:31 AM
I didn’t want to buy a Toyota pickup, but I am now. I wil not buy an American assembled truck.
Well…. maybe a Ford F-150. They didn’t slurp from the Gubmit slop trough.
Offshore_Drilling on March 30, 2009 at 9:32 AM
I’d prefer used-car salesmen; they’ve actually done something other than vote present.
Disturb the Universe on March 30, 2009 at 9:32 AM
I’m pretty close with the guy at my dealership. He says dealing with warranty companies is the biggest pain. When I was shopping for a warranty, I asked him which was the best coverage with the least hassle, because I figured he knew best. He works for GM. I bet he’s excited about this news. He’ll spend all day on the phone ironing out warranty details before he can even begin working on a car.
I’d be looking for a new job…at Toyota.
CookeyD on March 30, 2009 at 9:32 AM
Who would have thought that a slow,low-accountability, inefficient monopoly would not be the best prospect to run a profitable business.
NeverLiberal on March 30, 2009 at 9:33 AM
Government health insurance wasn’t enough for him. Now he wants Government car warranties. This tool thinks he is the Messiah or at least a Sovereign.
TheBigOldDog on March 30, 2009 at 9:33 AM
Wow… now my tax dollar is going to fix someones CAR?
Can I send them my bill for last months $650 car bill to replace the EGR valve in my 16 year old truck???
Oh, wait, just like the new mortgage tax break, this is only for people who go into more debt…
Talk about the Government sending the wrong messege… with my money….
Romeo13 on March 30, 2009 at 9:33 AM
Heh. Back in October I wrote a post in my blog about BHO called, “Would you buy a used car from this man?”
http://jgapinoy.blogspot.com/2008/10/only-fool-would-take-him-at-his-word.html
jgapinoy on March 30, 2009 at 9:33 AM
I hope people take note of what’s happening. The almost total government involvement in GM and Chrysler will finish both companies. And they are going to take a lot of tax money with them.
They are poisoning the brand…and politicizing it as well. In my eye, GM and Chrysler are becoming UAW/Obama automobiles. And I’ve had quite enough of that, thank you very much. Perhaps GM will survive to become the new Trabant.
I’ll stick with cars made in the (somewhat) free market.
Asher on March 30, 2009 at 9:34 AM
This is a joke, right? Goodbye GM and Chrysler.
Vashta.Nerada on March 30, 2009 at 9:34 AM
While I like my current Saturn, I’m sure not buying another one when I need a new car.
Hyundai or Honda sounds like a good idea when I need to buy again.
teke184 on March 30, 2009 at 9:35 AM
Toyota’s new ad slogan ………..”Hassle-Free Warranties”.
sherry on March 30, 2009 at 9:35 AM
What the F’ck am I going to do with all these GM points now?
TheBigOldDog on March 30, 2009 at 9:35 AM
This is a joke, right? Goodbye GM and Chrysler.
Vashta.Nerada on March 30, 2009 at 9:34 AM
Goodbye America.
artist on March 30, 2009 at 9:36 AM
We are going to be like Cuba. We are all going to be driving vintage pre-takeover cars for the next 50 years….
TheBigOldDog on March 30, 2009 at 9:37 AM
You gotta be kiddin’ me. Now I have to pay for other people’s freaking car warranties?! This is absurd.
Also, whadya think Obama’s gonna do with OnStar? That’s a GM subsidiary, by the way. Something else to be paranoid about.
CP on March 30, 2009 at 9:38 AM
How long before Obama decides he doesn’t like these non-union, non-American owned car companies like Toyota competing the “American-owned,” Union car companies?
TheBigOldDog on March 30, 2009 at 9:39 AM
Yeah, try actually working in a garage and have to talk to them. Its like they do everything they can not to cover something or try to get you to lower the price.
NeverLiberal on March 30, 2009 at 9:39 AM
I’m so glad we bought the Nissan truck rather than the GM truck we were looking at – the Nissan truck was made in the Smyrna, TN plant (Yay, American jobs) and has a lifetime power train warranty (honored by Nissan, not Obama).
What a freakin’ joke this man is.
ladyingray on March 30, 2009 at 9:40 AM
Now that
the governmentwe are paying for warranties, what motivation will the auto industry have for building quality cars?modernmathetes on March 30, 2009 at 9:40 AM
Foreign car sales will now go through the roof.
“Buy Hyundai, because when you need service, you will talk to an actual human being, not an automated government call center.”
I fix cars for a living, I can hardly wait to see how they plan on dealing with people like me.
Bishop on March 30, 2009 at 9:42 AM
Nothing. There won’t be any left after BO & Co. tax the crap out of them.
Laura in Maryland on March 30, 2009 at 9:42 AM
Government making the rules of running a business… and TARP was supposed to get them out of trouble. I see this as Obama’s willingness to spend us into oblivion just to attain his socialist power.
How long do we sit idly by, Republicans, when do you show resolve, or do we “little” people have to do it for you?
MNDavenotPC on March 30, 2009 at 9:42 AM
I have better bailout plan. The government should just by up the auto companies at book value and hand them over to the UAW. That way the unions can take responsebility for the operation of the enterprise. They will get the workers in line. /sarc
jerryofva on March 30, 2009 at 9:42 AM
Please send this to Toyota’s marketing department! Love it!
PrincipledPilgrim on March 30, 2009 at 9:43 AM
Glenn Beck and Rush were right – the Chaos is starting….
Cinday Blackburn on March 30, 2009 at 9:43 AM
The government is paying people’s mortages, why not their warranties, too?
When Obama manages to take over the oil companies, we’ll be paying to put gas in the cars, too.
Wethal on March 30, 2009 at 9:44 AM
We’re all Venezuelans now.
flipflop on March 30, 2009 at 9:44 AM
So does this mean that when America invariably turns away from GM/Chrysler, CEO Obama will subsidize their autos to undercut the capitalist car companies?
Patrick S on March 30, 2009 at 9:44 AM
You can convert them to credits towards Social Security contributions. Which should pay back nicely in the future. /sarc
WashJeff on March 30, 2009 at 9:44 AM
I’m going to miss buying American cars…
karl9000 on March 30, 2009 at 9:44 AM
I can hear it now:
OnStar – “Attention, citizen. You are leaving approved sector 4, and are entering an unapproved sector. We will now shut down your engine. Please wait for the authorities to escort you from your vehicle.”
Vashta.Nerada on March 30, 2009 at 9:45 AM
Geez!! And to think I believed my car would be ok if I just checked the air pressure in my tires. Looking at how well goverment has handled Katrina this ought to be good!! Now Team Chicago Jesus is going after Auto Mechanics.. for the Love of God!!
Dire Straits on March 30, 2009 at 9:46 AM
Than the UAW can be like the SEIU and protest themselves.
I would love to see this offer made. The UAW would back away so quick from that pile of excrement it would be hillarious.
WashJeff on March 30, 2009 at 9:46 AM
Actually, DMV here in NC is pretty organized too.
hawkdriver on March 30, 2009 at 9:47 AM
So we taxpayers are actually paying for GM warranties? Time to stop paying taxes! I’m going to get as many extensions as I can to keep from giving Obama my money for as long as I can…
DCJeff on March 30, 2009 at 9:47 AM
When is Obama changing the name from GM to BM? It should actually be MM, Muslim Motors. Bet the Libs had no idea that that’s what he meant by Camel Lot.
EMD on March 30, 2009 at 9:47 AM
‘ve owned Toyotas for over 20 years, now I have a Honda, and here’s the money line: I’ve never had to use my warranty for anything. No repairs, just regular maintenence.
anniekc on March 30, 2009 at 9:48 AM
Add to this Barry’s firing of the head of GM this weekend, and it becomes obvious who is running Detroit these days.
MarkTheGreat on March 30, 2009 at 9:48 AM
Can’t wait to buy a Toyota next!
crabtree on March 30, 2009 at 9:48 AM
OT, but worth it….from a Marine friend…
Last Tuesday, as President Obama got off the helicopter in front of the White House , he was carrying a baby piglet under each arm. The squared away Marine guard snaps to attention, salutes and says: “Nice pigs, sir.” The President replies “These are not pigs…these are authentic Arkansas Razorback Hogs. I got one for Secretary of State Hillary Clinton and I got one for Speaker of The House Nancy Pelosi.”
The squared away Marine again snaps to attention, salutes and says, “Good trade, sir.”
Patrick S on March 30, 2009 at 9:49 AM
I’m in the market for a Sequoia. I’ve driven an Oldsmobile for the past 11 years. After 30k miles, stuff just started falling off. I bought American for all the obvious, patriotic reasons. The resale value of my car is complete crap. I’m going back to Toyota. During college I drove an 82 Celica that I picked up for $1,200 from a farmer down the road. It had 180k miles on it. I drove it for five years, putting well over 300k on it. I never even changed the oil.
I had to replace one belt and a water pump. That thing drove like a scared cat.
robblefarian on March 30, 2009 at 9:49 AM
My horrible warranty experience with Ford: Drove to the closest Ford dealer, 100 miles from where the car was originally purchased (I bought the car used, but still had a ton of warranty left). Told them the problem. They pulled up my car’s info, saw that it was under warranty, and the $1k repair cost me… $0.
strictnein on March 30, 2009 at 9:49 AM
My first thought: that’s not very funny.
Turns out they’re not joking.
But don’t miss this.
For all you people who think that firing a CEO should be the job of the Board of Directors and no one else, here’s the money quote of the article:
Got that? CEO and Board of Directors both are under the thumb of the government.
So, are we officially a fascist nation now? If not, what further step would be needed?
ThereGoesTheNeighborhood on March 30, 2009 at 9:50 AM
this whole bailout thing is getting way past stupid now, stock market is showing its displeasure as well.
trailortrash on March 30, 2009 at 9:51 AM
Yeah, but at least GM has some incentive to provide decent customer services so they can get your future business.
And the DMV here in Madison was running pretty smoothly when I was in a couple weeks ago. I got there early and was the second one in line. In and out in 15 minutes, including the picture for the new license.
BadgerHawk on March 30, 2009 at 9:52 AM
“I’m sorry sir, we removed the drain plug from your car, but the guy who re-installs the plug is on mandatory holiday, the guy who removes the old filter is on strike, the guy who screws on the new filter is home sick, the guy who pulls the dipstick is attending paid training in Boca Raton, and the guy who reinserts the dipstick has an owie on his thumb so we sent him home for two weeks of paid convalescence.
Please come back in one month to retrieve your vehicle.
Yessir, I know it sucks, but union rules are union rules, you understand.”
Bishop on March 30, 2009 at 9:52 AM
Its all part of the “Plan”…
OnStar would only need a simple software update to track and store where you drive… as the GPS is already running…
Thus, the Tax they want to impose about how many miles you drive will be easy to enforce on GM cars…
Expect Congress next to mandate the use of OnStar for all cars in the US… now that they will run the business.
Romeo13 on March 30, 2009 at 9:52 AM
Same here anniekc with my VWs.
zeebeach on March 30, 2009 at 9:53 AM
I wasn’t going to touch GM or Chrysler w/a 10 foot pole before all this… now I have completely removed the option to EVER consider purchasing one of their cars.
Barack – the touch of death to business and innovation. Change you can believe in.
gatorboy on March 30, 2009 at 9:54 AM
Obama, the Celebrity Apprentice, is now doing car repairs.
faraway on March 30, 2009 at 9:55 AM
Why is the stock market tanking this morning? What? Oh, that.
zeebeach on March 30, 2009 at 9:56 AM
Anybody remember British Leyland?
Top Gear did a good segment on their products a while back.
forest on March 30, 2009 at 9:56 AM
At this rate, we can say goodbye to any chance of recovery, ever.
pussum207 on March 30, 2009 at 9:57 AM
So how long is it before we have commercials with Honest Barry O standing in front of a row of cars on the East Lawn hawking them like any of the other leisure suit wearing car salesmen complete with giant inflatable purple gorillas flapping in the breeze attached to the roof of the White House?
Just A Grunt on March 30, 2009 at 9:58 AM
I paid the extra $15 a month to get the 5 year full coverage warranty with Ford. Saved me thousands in repairs. Can’t complain about the service or the 0% rate over 60 months that also included rolling in cars that I was flipped on into the loans…twice.
Not sure though if this means I should stick with Ford and the extra coverage or get a car that’s cheaper and doesn’t break down as often? Hmm, tough choice. The fact that Ford did not request a bailout makes them the only American company I would still consider.
cadams on March 30, 2009 at 9:59 AM
I really really want the president to fail.
Really.
geckomon on March 30, 2009 at 9:59 AM
No shiite on the market, whoa.
Bishop on March 30, 2009 at 9:59 AM
Does the government really think anyone will buy an American made car now? Sales were dropping before…now they will be worse.
becki51758 on March 30, 2009 at 9:59 AM
In California, I’ll get a government warranty and a tripled car license fee? Gets better all the time….ha ha ha ha
RealDemocrat on March 30, 2009 at 9:59 AM
There is nothing, absolutely nothing, that our corrupt, leviathan government will not co-opt or take over given even the slightest opening. Nevermind that the Constitution of the United States does not grant the authorization for it. Our Constitution is dead and no longer a restriction on our federal government. Sleazy politicians can do as they please as long as the People allow them to, and given our current environment of the Entitlement State, the People are okay with it.
When is the revolution going to start? Where do I sign up?
King of the Britons on March 30, 2009 at 10:00 AM
I’d say once they announce a new National Anthem we’re done.
sherry on March 30, 2009 at 10:00 AM
Buy American……….not.
ctmom on March 30, 2009 at 10:00 AM
After stepping back for a second and looking around what can one conclude from this Goverment warranty drive? It is simple.. Team Jesus and his merry band are fixing to scuttle what is left of an American Icon. If this doesn’t wake up some folks then I truly DO NOT know what will.
Dire Straits on March 30, 2009 at 10:00 AM
Ewwww… just hit me…
Is this warranty scheme not a de facto Protectionist move towards GM? How does this play with NAFTA and other Free Trade agreements?
And, towards Ford, how does this play in the Equal Protection arena of the Consitution? or is the government no longer even paying lip service to that document?
Romeo13 on March 30, 2009 at 10:01 AM
I guess this puts the teleprompter to rest.
Finally.
getalife on March 30, 2009 at 10:01 AM
all the vehicles we own are made by chrysler. oh well.
kelley in virginia on March 30, 2009 at 10:02 AM
It is just another attempt to try and save the UAW. This isn’t about GM at all. It is about job security for all those union voters.
Just A Grunt on March 30, 2009 at 10:02 AM
What are you talking about? I have a Chevy Suburban and the few times it’s needed warranty work it was taken care of quickly. Where are the statistics to back up your claim?
Ann NY on March 30, 2009 at 10:02 AM
This sounds like another step in an attempt to force Ford into the government-run fiasco. At some point, the subsidies and warranties, and government-mandated vehicles will make it so difficult to compete, that Ford will have to join in. Then, it is a simple matter of putting a 40% surcharge on cars from foreign-owned firms to solve all of our problems Smoot-Hawley style.
Vashta.Nerada on March 30, 2009 at 10:02 AM
ACORN will handle local service. Remember these guys can remove stereos and wheels in 2.2 minutes. Ooop s. They can’t install parts can they?
The other component is Fiat pressure to buy Chrysler. Remmeber Libya’s Mohmar Khadafi
owns a large block of Fiat stock.
seven on March 30, 2009 at 10:03 AM
I won’t! The last American-made car I bought was a brand new Vega, with its “ingenious” aluminum engine. By the time it reached 70,000 miles it was burning a quart of oil a week and smoking like a Precedent!
What did Detroit call it, ah yes: “planned obsolescence”. The Japanese auto makers must have salivated when they heard that term, and have decimated the American auto industry ever since.
Sweet_Thang on March 30, 2009 at 10:03 AM
That’s great. Love how the Board is being given the broom but I’m sure nobody from the ****ing union is going anywhere. Next time I hear ‘Buy American’ I’ll try not to laugh. Think of all the lovely patronage positions they can fill in the GM upper echelons for Obama’s friends. Maybe we can find Bill Ayers something useful to do. Then again, putting Ayers in a car factory might not be a good idea.
austinnelly on March 30, 2009 at 10:03 AM
Yeah ’cause when she wakes up it’s gonna get ugly.
thomasaur on March 30, 2009 at 10:03 AM
I guess this puts the teleprompter to rest.
Finally.
getalife on March 30, 2009 at 10:01 AM
Hehehehehehehehehehehe, not likely, your boy has many ‘prompter bits yet ahead of him.
Bishop on March 30, 2009 at 10:03 AM
Does a “Nobama” bumper sticker void the warranty?
Mark1971 on March 30, 2009 at 10:04 AM
Hawk,
I have personally noticed, despite surliness, an improvement in CA (believe it or not) and CT. HOWEVER, those improvements took four decades.
marybel on March 30, 2009 at 10:04 AM
Everything time I think I’ve heard the stupidest thing ever, the teleprompter administration just keeps right on talking.
For the love of all that is holy, Ed; tell me that this Obamannouncement is April Fool’s come early.
landshark on March 30, 2009 at 10:04 AM
Not to worry. look at 1:35 to find out wht happens to your car in California.
http://www.youtube.com/watch?v=SGjXmmV9JYY
RealDemocrat on March 30, 2009 at 10:06 AM
Wow, so let me get this straight… we are using Tax dollars to make it possible for a foreign Company to take over an American Company?
/head spins….
Romeo13 on March 30, 2009 at 10:06 AM
Oddly enough Top Gear showed us what we in store for our future:
http://www.topgear.com/us/videos/more/racing-communist-cars
Ann NY on March 30, 2009 at 10:06 AM
Does this mean they’re bringing back the chevy ¿no-va?
geckomon on March 30, 2009 at 10:08 AM
This will lead to one thing. Dealerships behaving like doctors and Medicare. Billing the govt for work never done, and the beauracracy will be too much to keep this in check.
Game over
broker1 on March 30, 2009 at 10:09 AM
also:
http://www.topgear.com/us/videos/more/communist-cars
Ann NY on March 30, 2009 at 10:09 AM
What a joke.
Point me in the direction of a Honda, Toyota, or Hyundai dealership.
jdflorida on March 30, 2009 at 10:11 AM
I wouldn’t know how well Toyota handles warranty claims because the damn things never break.
CDeb on March 30, 2009 at 10:11 AM
CP is exactly right. OnStar will now track you for the government. You lock yourself out of the car and the government first checks to see if you have paid your taxes, child support, etc.
GM was the big prize for Obama – makes all his vehicles and hummers for the government. They will all get big luxurious vehicles and the minions that work will have to drive electric lawn mower cars.
When are we going to stand up and do something about this out of control government?
suzyk on March 30, 2009 at 10:11 AM
With the gov’t running GM now and getting into the mortgage business, how many think that lots of people will be looking to sell their GM vehicles and buy something else?
CP on March 30, 2009 at 10:12 AM
http://www.michaeltotten.com/archives/2009/03/the-worst-airli.php
Read that if you want to know how a government run company operates.
Asher on March 30, 2009 at 10:12 AM
What do you suppose are the chances that Ford will ever sell another car to the federal government?
johnsteele on March 30, 2009 at 10:13 AM
The one thing that the “One” can’t do, no matter what, is make GM profitable or force consumers to buy GM products. This whole debacle will be just that, a PR debacle for O and Co. in the years to come as more and more tax subsidies are req’ed to prop up this loser. GM faces a competitive market where it’s counterparts are not controlled by the gov’t nor have they accepted fed. subsidies. Now, this may be a backdoor plan to force Fed. healthcare on the citizenry and as such it may work. But, as a business proposition, there is no way this gov’t intervention will work since they can’t address the fundamental issue confronting GM, Ford and Chrysler: specifically their costs per unit exceed the revenue per unit.
volnation on March 30, 2009 at 10:14 AM
Say good-bye to quality.
Manufacturers have/had a vested interest in working with suppliers to reduce warranty costs.
Now GM only has 15% vested interest. But I’m sure the government will be able to take on the task with their 110% interest.
Caper29 on March 30, 2009 at 10:14 AM
((shudder))
This solidifies that I’ll be buying a Nissan now.
Dubn8tr on March 30, 2009 at 10:16 AM
Is this really a Constitutional function of the federal government?
Each week, each day, actually, the Obama Administration strives to use the federal government to act in place of what is Rightfully a private matter. This sort of garbage simply must stop…and soon.
Obama is not going to be met with fervent love by the other heads of state when he arrives in London. Germany’s Chancellor, Angela Merkel, raised under the auspices of the former East Germany, knows full well what happens when “government” successfully invades and captures the private sector. She has already made it clear that she will say “Nein, danke.” to Obama’s ideas for the rest of the world to start getting heavily invested in having government bailout, pay for, and run the private sector.
Maybe, more Americans should take a listen, and start to push back, heavily, against the Obamatrons and Obama’s attemtps to turn private enterprise into state socialism.
Obama has no clue as to what he is doing…except to make the private sector pay for government even more…or perhaps he is actually trying with all his might to take revenge on the private sector, actually believing that the federal government can, should, and will solve all the problems of the common man.
As for the auto warranties…they work. Read the damn thing when you buy a car. Just like one is supposed to read the documents that are placed in front of you when you apply for and obtain a mortgage.
Ignorance of the public is NO excuse for government intervention. Caveat emptor.…one of those fancy legal phrases that has been around longer than the government.
BTW…the Dow is down 220 already this morning. Maybe having Obama select corporate CEO’s and forcing private citizens out of jobs is not being met with joy and glee?
coldwarrior on March 30, 2009 at 10:16 AM
Forget how much of a hassle getting a warranty repair will be – think about what this is going to do to the quality of the product. When the company gives a warranty it is making a bet on the quality of it’s materials and production. They are on the hook for the level of quality.
When the government is issuing the warranty, there is no risk or cost to the manufacturer for producing complete crap.
Socialism Sucks
Stephen Macklin on March 30, 2009 at 10:17 AM
Here’s an oldie but goodie from Iowahawk, the visionary:
http://iowahawk.typepad.com/iowahawk/2008/11/lemon.html
Sweet_Thang on March 30, 2009 at 10:17 AM
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