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Posts Tagged ‘Bailout’

I have to say it’s been quite entertaining to watch the parade of people withdraw themselves from nominated positions as they head over to find their places underneath the bus. It’s probably a  fleet of buses or a long train by now there are so many people under it!

 It seems many of them have a hard time remembering  to pay their taxes. Hmm are these the same people who were blathering on about how paying taxes was patriotic and we should all want to pay higher taxes? Isn’t that what Joe Biden said?

Of course I forgot to mention Bill Richardson who is currently under investigation by a federal grand jury in a pay to play scheme thus he had to withdraw from his nomination for Secretary of Commerce.

Then we have Tom Dashel and Nancy Killefer withdrawing for not paying taxes and Tim Giethner was confirmed despite having a similar embarassing problem. Not to mention the whole “nobody will work in my administration if they have been a lobbyist.” thing.

Give us a break! Now the media is finally starting to report on the plethora of problems. Well all I can say is where the hell were they for the last two years? How is it no one saw this coming? WE saw it coming! We told you so idiots!

I’ll tell you why no one saw this coming because the mainstream media deliberately played the role of public relations representative rather than do their job and report accurately the facts and or lack of them in an unbiased and professional manner. They in fact became more than a little responsible for the outcome of the primaries and the election and they will share the responsibility of the aftermath.

I will admit to being pleased with the decision to limit the salaries and bonuses of top executives of companies that take Bailout funds. I think pretty much everybody agrees on that except maybe the execs who will have to take a pay cut.

Listen if they want the taxpayers to bail them out they should expect some conditions. After all if they are in bad shape and need bailing out shouldn’t they be looking for ways to cut expenses and railse more capital? Isn’t that more reasonable than to continue spending on lavish office remodels or over the top business retreats? Or paying say, $400 Million to have your name on a stadium?

If they want us to foot the bill they should expect not to go on as though it’s business as usual. It’s not. Not when you need bailing out that is about as far from business as usual as you can get and still be in business and it dictates that you do some serious evaluation and re-tooling at the very least. To get out of the position where you need a bailout and get to a position where you make a profit they should be thinking this way already.

If they don’t like the conditions they should look elsewhere for help. Now if they want to pull their own fat out of the fire it is their business how they spend their gains. That’s the American way.

Though lately I’ve had some interesting conversations with people on this subject and find myself wondering what some people are really thinking. One friend suggested that we go even further and limit the salaries and bonuses of all company executives regardless of whether they accept bailout funds or whether they are private or public companies.

His theory is that no one can possibly make more than the president without having broken some law or regulation and without having screwed over “the rest of us”. My reaction was something like WTF?

I think that is way too far myself. Isn’t one of the greatest things about our country? Isn’t the American Dream the idea that if you have an idea or a product, a service or whatever and you do what it takes to make a sucsess the sky is the limit? The idea that anyone can make it regardless of who they are?

I understand the anger and the feeling that many times the Big Shots get where they are on the backs of the rest of us. I mean I get just as PO’das the next person over all these people who rip others off or waste money on stupid things then cry about needing a bailout even as their own bad management caused the problem but do we really want to go so far that nobody can make more than a set amount?

Who decides what that amount is? Will that amount be different for different people or will everybody have the same limits? What happens if your idea makes more than that? Should you not benefit from your efforts?

I’m all for doing what we can to preserve the idea of freedom we have here. I want to improve it as well by doing what we can to make all of us more free and insuring equality but if we get too involved in legislating people’s freedom it can have the adverse effect of making us all less free.

JMO what’s yours?

 

CQ

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Ok, so it’s been a while since I posted anything. Mostly because I am still shocked by the election results and sort of numb as one friend put it. Also because of some personal issues that have been at the top of my list lately. Today though, I think I am just pissed enough to set things aside for now and get to typing.

1st Up!

Bailout BS Syndrome:

With the economy in the toilet and the Bankers, Insurance Companies and Auto Makers all lining up for their cut the amazing thing (ok, not really amazing I’m being sarcastic here) is that the people in charge of this “jump-start” for our economy are in fact the very same people who brought it to the point (read:killed it) it is today!

Isn’t that nice? Why don’t we just hire Bugs Bunny to guard the carrot crop while we’re at it? I’m sure he would do a fine job. Snark!

The whole thing is maddening. They want to bail out all these banks that actually deserve to fail because of the extreme greed and unscrupulous lending standards and investment strategies they have been promoting and using for decades.

Granted the economy needs banks and many people would lose their jobs if these giants failed as with the auto industry I concede that we have to look at the bigger picture but really, isn’t that the principal of business? Those who run them in the proper manner and those who don’t are all taking the same risks that any business owner or investor takes. So why should we reward their bad decision making and risky “get-rich-quick” schemes when the risks they took prove to be bad ones?

I know a lot of peope depend on them for loans and jobs and all that but when does the personal responsibility end and the government responsibility begin? And above all, why is it up to US, the taxpayers (many of whom have been totally screwed by said banks) to bolster them? If I have a business and I run it into the ground I would not expect the government to pay my way. Nor would they even consider it.

We’re being told these companies are simply too big to allow them to fail. We’re being told we must look at the greater good, the big picture, think of all the havoc that would ensue both nationally and globally.

Ok, there may be something to that but isn’t the main reason for all of this the fact that all those sub-prime and adjustable rate mortgages they sold the public have now predictably gone sour as no one can pay the incredibly high interest rates and the resulting huge payment increases? And who’s fault is it again?

Of course there are/were some borrowers who knowingly got in over their heads and there will always be people who will do that but doesn’t some of the responsibilty for these risky loans also belong to those lenders who arranged for those loans all the while rubbing their greedy paws together in glee with visions of sugar plums (read: huge interest payments) dancing in their heads?

After all those borrowers could not have taken those loans out without the lenders making it possible. They are proffessionals who should have forseen the consequences of these actions. Why is it the taxpayers’ responsibility to absorb their losses?

I won’t even go into the AIG thing or the Big Three and their troubles for now although it’s more of the same. Businesses taking risks they should have known better than to take and now crying because those risks did not pay off with the huge profits that they expected to make. Failure to properly assess, manage, innovate and protect their bottom lines. Completely out of line with anything you would be taught in business school.

The thing that really takes the cake is the simple fact that although they expect Joe and Jane taxpayer to pay for their mistakes and flat out greed, they have done absolutely NOTHING, NADA, ZIP fr the people who are losing their homes. Nothing to help them stay in their homes and be able to afford to make those payments.

It seems they want to punish all the home owners who can’t pay the huge payments that resulted from these lenders and their greed. These people are supposed to be the proffessionals and as such are actually more responsible for the forclosures than anyone yet they want the home owners to pay the price for their greed and incompetence by losing their homes and their credit and the taxpayers to pay the bill for their bad business decisions.

Nobody is concerned at all that bailing out the banks is doing nothing at all to stop or even slow the forclosures which is what is needed to stop the bleeding. I could not care less if Citigroup goes under. I do care that many people will lose their homes, the investments they have in them and will be far worse off afterwords when most of them would gladly make their payments if we just found a way to refinance them at rates that are reasonable and affordable.

As far as I’m concerned the banks who made bad business decisions because of greed deserve to suffer the consequences of their actions.

However if they do not help the home owners refinance at fixed rates so they can afford the payments this crisis will go on indefinitely. The ONLY way to stop the bleeding is to help the home owners which will in turn help everybody including the banks. To continue to worry about the banks’ profit margins while ignoring the cause will only make it worse for all of us and will leave the banks in the same position six months down the road.

Simply put the banks need to suck it up, take the losses and give people options to stay in their homes and keep paying their mortgages. Take a small loss now or a complete loss when the home owners walk away. Otherwise it’s just like putting a bandaid on a ruptured artery. Pointless, ineffective and doomed to fail.

I had a couple more things to rant about but I think maybe seperate posts would be better both in the interest of not making this one way too long and also to make discussion more structured and not have a bunch of different things going in all different directions. So feel free to rant with me and possibly offer your own solutions or ideas on this.

 

CQ

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McCain tells it like it is in Albuquerque, New Mexico!

I’m so glad to see someone finally call him out on this stuff! Mac hit hard with a dose of truth and I’m pretty sure we’ll see a plethora of “news” articles claiming that his remarks were “racially tinged” tomorrow. it was worth it! That’s the McCain that will fight tooth and nail to protect this country and it’s citizens, ALL of them! Go john!

I’m sure everybody already heard and/or watched Sarah Palin making comments about Obama “pallin’ around with terrorists” this weekend and saw that she may as well be an honorary PUMA now as the media immediately labeled her remarks as racist.

Then we have Dianne Feinstien constantly repeating the word assassination to Bob Schiffer Sunday morning. Apparently telling the truth about Obama is racist and means you are plotting his demise. or at least that seems to be the newest, sinister talking point of the Obamacrats. Well, you have to distract the voters somehow I guess.

I guess next they’ll start talking about natzisms from GOP operatives and all the while handing out the brown shirts and sizing jack-boots!

 

CQ

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