Remember the infestation that has brought the U.S. economy to its knees? Yes, the subprime lending...attempting to entice those to buy who actually cannot afford. Well, GM thinks it can utilize this diseased lending method to increase their car sales. What are they going to do when those who obtain these subprime loans don't pay them...ask for another bailout? Their company's situation seems terminal if they, in fact, utilize this method of enticement.
************************************************************************************
GM: Subprime lending? Great idea!
Posted Apr 08 2009, 12:33 PM by Todd Harrison
While General Motors (GM) surely has a hangover from the credit crisis and faltering economy, it's hoping to cure some of the effects of that hangover with the hair of the dog that bit it.
GM’s finance division, GMAC Financial Services, is cutting financing costs and reviving subprime lending to speed up car sales and entice people back into GM showrooms. Subprime lending is the very thing that helped sink GMAC, and in turn, helped accelerate the parent company’s decline.
General Motors has been given a June 1 deadline to come up with a restructuring plan. Bankruptcy is the alternative. GM has relied on $13.4 billion of U.S. government loans to stay in operation since the start of the year.
Whether it's tequila or subprime loans to shaky borrowers, the hair of the dog rarely turns out well. It’s hard to see how it’ll be different this time for GM.
GMAC, which is owned by GM and private equity firm Cerberus Capital Management, announced at the start of April that it would make at least $5 billion available as loans to car buyers over the next 60 days. The end date for the program -- June 1 -- isn’t coincidental: GM must prove to the federal government by that day that it can ultimately survive on its own. GMAC is also providing loans to dealers to help them clear a backlog of unsold cars.
GMAC’s loans will be made available for buyers of both new and used cars. Buyers can have credit scores under 620 -- this crowd being the subprime gang. Just the term strikes fear into the hearts of past and present derivatives traders.
Back in October, GMAC restricted lending to customers with scores over 700. When the government provided GMAC $6 billion in loans, the minimum score was lowered to 620. The cash infusion was meant to allow GMAC to get more consumers the car loans they needed. Now it’s gone back under 620, a return to those halcyon days of lending. GMAC insists that the subprime group would be approved sparingly, but if it wants to show that business is improving, discretion isn’t a good idea.
U.S. auto sales dropped 37% in March, and GM’s sales were down 45%, though slightly better than estimates. This move, as a way to open up credit, smacks of desperation. Obviously, GM believes it must do something to get cars out the door again. But, then again, what does it have to lose?
Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts
Thursday, April 16, 2009
Saturday, April 11, 2009
Stimulus Cash for Bill Gates?
Glenn Beck: Stimulus cash for...Bill Gates?
April 7, 2009 - 12:08 ET
GLENN: Okay, sure. You know, there's been the occasional destination of stimulus funding that seems a tad frivolous. Occasionally once in a while there's like, what are they doing for the zoo? But it's not like the government is just handing money out to anybody. I mean, it's not like they're building bridges for the richest man around or anything. Okay, they are, but it's an isolated it's only one. There's only up with richest guy around, the richest guy in the world. That's it, just one, and that's the only one they are building the bridge for. It's one little bridge. So you got a problem? Okay, so they made a mistake, one. You people, why do you hate him so much?
In Washington millions of your stimulus dollars are going to pay for a bridge to adjoin two campuses at Microsoft. You know, the company, owned by the richest guy in the world. You know, that one, yeah. The bridge would employ about 400 people for 18 whole months. Why 18 months? Well, when they're done, they just have to build another bridge right next to it so that way they can tear down the first one and then keep alternating it forever. I mean, only 18 months. Let's keep this gravy train going. It will eternally employ 400 people if we do it that way, give Microsoft employees a safe way to get to work, you know, from work. And then when they're leaving work, they can also go to work using this bridge. It's fantastic. Quote: Let's face it. Microsoft is one of the most lucrative companies in the country, says Taxpayers for Common Sense. Sure, they could have easily funded this out of pocket change but this is really about getting while the getting is good. Uncle Sam has a big wallet that's there for the taking, and Microsoft was happy to let them pick up part of the tab. Yeah. Yeah, yeah. I mean, they could have had Microsoft pay for their own bridge, but what if they didn't? What would happen to all of that elevated walking in between the two campuses, you know. Don't we have an obesity problem in this country? I just saw on television that the majority of 4 year olds are obese. Isn't there a government program for something like that? I'm just wondering. I mean, why should we stop at the one bridge for the rich guy, you know? Let me tell you something. Our bathroom here at the Mercury studios is not all that nice. I don't have, like, towel warmers or any of those. Those are sweet. Don't have them. We could use an upgrade. Where's my stimulus? I mean, we also, you know, we have right behind Stu in the studio here, we have one of those little minifridges we keep nice cold Zero in it. It's fantastic. But how come I mean, don't I deserve a big standup, you know, Viking refrigerator? Wouldn't that be sweet, huh? I mean, I'm not asking for a bridge. Just a Viking refrigerator. Oh, and I'd like a water slide down to my car instead of the boring elevator. Where's my stimulus?
By the way, the project is going to cost you $25 million. Well, that's what they originally said but they figured out some ways to spend some more. It skyrocketed now to $36 million. What's $11 million these days! It's nothing! I mean, oh, I'm sure that $11 million is completely necessary, you know? It has to be. Somebody has got to pay for, you know, fixing all the bugs in Vista. You know, somebody's got to pay for that. I mean, who's going to do it besides the richest man in the world, if he's busy using the richest man in the world's bank account to build his own bridges! It doesn't make any sense! Concentrate on fixing the bugs in Vista. We'll do everything else for you.
VOICE: That was even more overwhelming evidence that we are destined to be a bunch of socialist pigs very, very soon on the Glenn Beck program.
GLENN: I'm just going to GlennBeck.com because Stu just told me that... there it is. The picture of the day. That's the bridge? Wow.
STU: Yeah. By the way, Glenn, Microsoft is kicking some of the money in. It's only costing us $11 million out of the $36 million which I know, that's it.
GLENN: Oh, no. Oh, no, it's only costing us 11. I thought it was
STU: Yeah, they are paying for some of their own bridge. They are paying
GLENN: Are they really?
STU: You want to talk about generosity, they have that Bill Gates has that whole charity setup where he's giving away money. Like this is the sort of charity we're talking about. He's paying for a portion of his own bridge to bridge the gap between two campuses of his own company. And I think that's
GLENN: All they have to really do is if they want to go to the other campus, they just get on the freeway there and then drive an exit and then turn around and then come to the next one.
STU: Well, they did quote this is ridiculous, this is a ridiculous spin because they did quote one guy who rides a bike and he did say that it's going to save him a couple of miles on the bike because he would have to go out of the way to get to the other.
GLENN: Has Microsoft thought about when Gates needs to go from one side of the freeway to the other? There's two options here as I see it, two options. He is the richest man in the world. He can just get on a helicopter and fly to the next.
STU: How long, how many trips do you have to make to equal out the bridge?
GLENN: Here's the other option. I'm just saying, okay, I'm just pulling this one out of the sky, but I'm just trying to think of somebody like, I don't know, if I were running the company. I would have said in the first place I don't want to go down ancient history. But the first thing is richest guy in the world, one of the smartest guys in the world. Somebody should have said, "Hey, Bill, why don't we build on the same side of the freeway."
STU: Wow..
GLENN: I know, it's crazy, crazy.
STU: Who would have thought of that in advance, though. This is hindsight.
GLENN: Oh, I know, it's hindsight. There was a freeway running between it and they're like, let's build on that side.
STU: It appears to be, I would say eight lanes and a train.
GLENN: Yeah.
STU: In between. So it wasn't like a small one.
GLENN: So it would have been good to say, but maybe they were working on the Wonkavator, I'm not sure, something that shoots out of that glass thing or
STU: Or if they had heavy lifting tricks.
GLENN: I don't know. They're geniuses over there. I don't know why they decided, "Let's build the rest of the building on the other side of the freeway." I don't know.
The other thing that I would do now, that's ancient history, and I don't know what was going on, what they were thinking. The other thing that I would do is maybe we should move to a new location.
STU: But they have all these fancy buildings where they are coming up with fizzy drinks and everlasting Gobstoppers and all that.
GLENN: Sometimes you say we've outgrown this space, and it's really inconvenient because my other office is across eight lanes of freeway and a train. Bad planning. Oops, my bad. Maybe we should build a new building or maybe we should find an existing building and renovate it. Maybe we could move downtown, you know, where those what do they call those, oh, those new oh, yeah. High rises. That way there's no freeway in between floors. I don't know if they know that. That's crazy.
STU: Glenn, again I'm not a guy who runs a company.
GLENN: I know. You're just a thinker.
STU: I'm just a guy living my life.
GLENN: Let's let the common man in here. Let's let him air things out a little bit.
STU: But let's say, you are an employee at Microsoft campus.
GLENN: At Microsoft, that's the one on this side of the highway.
STU: Right.
GLENN: Then there's eight lanes of highway in between and a train.
STU: And you're at Microsoft campus B.
GLENN: Who is?
STU: You needed to meet with someone at Microsoft campus B.
GLENN: I don't know how to do that.
STU: How would you do that?
GLENN: I don't know.
STU: Someone at Microsoft could potentially invoke the power of the Internet.
GLENN: No, that's crazy.
STU: I'm saying
GLENN: What?
STU: I'm saying that they
GLENN: What, you are going to get on and you are going to do like MS DOS and stuff and you are going to be like, Y equals what are you going to do? It's not like you can have moving pictures, not like you can have a teleconference.
STU: No, what I'm saying is I think you could do that. You could see like a camera could take a picture of you.
GLENN: No. They need the bridge.
STU: What I'm saying is that Microsoft people should go to GotomyPC.com.
GLENN: The only option here, Stu, is for government money to build a bridge between these two campuses and you can see that bridge now on the it's beautiful, especially this time of year, beautiful. You should be very proud. They may put I was going to say you could pretend they are going to put your name on it because you're paying for it, but they will just put Microsoft up there.
April 7, 2009 - 12:08 ET
GLENN: Okay, sure. You know, there's been the occasional destination of stimulus funding that seems a tad frivolous. Occasionally once in a while there's like, what are they doing for the zoo? But it's not like the government is just handing money out to anybody. I mean, it's not like they're building bridges for the richest man around or anything. Okay, they are, but it's an isolated it's only one. There's only up with richest guy around, the richest guy in the world. That's it, just one, and that's the only one they are building the bridge for. It's one little bridge. So you got a problem? Okay, so they made a mistake, one. You people, why do you hate him so much?
In Washington millions of your stimulus dollars are going to pay for a bridge to adjoin two campuses at Microsoft. You know, the company, owned by the richest guy in the world. You know, that one, yeah. The bridge would employ about 400 people for 18 whole months. Why 18 months? Well, when they're done, they just have to build another bridge right next to it so that way they can tear down the first one and then keep alternating it forever. I mean, only 18 months. Let's keep this gravy train going. It will eternally employ 400 people if we do it that way, give Microsoft employees a safe way to get to work, you know, from work. And then when they're leaving work, they can also go to work using this bridge. It's fantastic. Quote: Let's face it. Microsoft is one of the most lucrative companies in the country, says Taxpayers for Common Sense. Sure, they could have easily funded this out of pocket change but this is really about getting while the getting is good. Uncle Sam has a big wallet that's there for the taking, and Microsoft was happy to let them pick up part of the tab. Yeah. Yeah, yeah. I mean, they could have had Microsoft pay for their own bridge, but what if they didn't? What would happen to all of that elevated walking in between the two campuses, you know. Don't we have an obesity problem in this country? I just saw on television that the majority of 4 year olds are obese. Isn't there a government program for something like that? I'm just wondering. I mean, why should we stop at the one bridge for the rich guy, you know? Let me tell you something. Our bathroom here at the Mercury studios is not all that nice. I don't have, like, towel warmers or any of those. Those are sweet. Don't have them. We could use an upgrade. Where's my stimulus? I mean, we also, you know, we have right behind Stu in the studio here, we have one of those little minifridges we keep nice cold Zero in it. It's fantastic. But how come I mean, don't I deserve a big standup, you know, Viking refrigerator? Wouldn't that be sweet, huh? I mean, I'm not asking for a bridge. Just a Viking refrigerator. Oh, and I'd like a water slide down to my car instead of the boring elevator. Where's my stimulus?
By the way, the project is going to cost you $25 million. Well, that's what they originally said but they figured out some ways to spend some more. It skyrocketed now to $36 million. What's $11 million these days! It's nothing! I mean, oh, I'm sure that $11 million is completely necessary, you know? It has to be. Somebody has got to pay for, you know, fixing all the bugs in Vista. You know, somebody's got to pay for that. I mean, who's going to do it besides the richest man in the world, if he's busy using the richest man in the world's bank account to build his own bridges! It doesn't make any sense! Concentrate on fixing the bugs in Vista. We'll do everything else for you.
VOICE: That was even more overwhelming evidence that we are destined to be a bunch of socialist pigs very, very soon on the Glenn Beck program.
GLENN: I'm just going to GlennBeck.com because Stu just told me that... there it is. The picture of the day. That's the bridge? Wow.
STU: Yeah. By the way, Glenn, Microsoft is kicking some of the money in. It's only costing us $11 million out of the $36 million which I know, that's it.
GLENN: Oh, no. Oh, no, it's only costing us 11. I thought it was
STU: Yeah, they are paying for some of their own bridge. They are paying
GLENN: Are they really?
STU: You want to talk about generosity, they have that Bill Gates has that whole charity setup where he's giving away money. Like this is the sort of charity we're talking about. He's paying for a portion of his own bridge to bridge the gap between two campuses of his own company. And I think that's
GLENN: All they have to really do is if they want to go to the other campus, they just get on the freeway there and then drive an exit and then turn around and then come to the next one.
STU: Well, they did quote this is ridiculous, this is a ridiculous spin because they did quote one guy who rides a bike and he did say that it's going to save him a couple of miles on the bike because he would have to go out of the way to get to the other.
GLENN: Has Microsoft thought about when Gates needs to go from one side of the freeway to the other? There's two options here as I see it, two options. He is the richest man in the world. He can just get on a helicopter and fly to the next.
STU: How long, how many trips do you have to make to equal out the bridge?
GLENN: Here's the other option. I'm just saying, okay, I'm just pulling this one out of the sky, but I'm just trying to think of somebody like, I don't know, if I were running the company. I would have said in the first place I don't want to go down ancient history. But the first thing is richest guy in the world, one of the smartest guys in the world. Somebody should have said, "Hey, Bill, why don't we build on the same side of the freeway."
STU: Wow..
GLENN: I know, it's crazy, crazy.
STU: Who would have thought of that in advance, though. This is hindsight.
GLENN: Oh, I know, it's hindsight. There was a freeway running between it and they're like, let's build on that side.
STU: It appears to be, I would say eight lanes and a train.
GLENN: Yeah.
STU: In between. So it wasn't like a small one.
GLENN: So it would have been good to say, but maybe they were working on the Wonkavator, I'm not sure, something that shoots out of that glass thing or
STU: Or if they had heavy lifting tricks.
GLENN: I don't know. They're geniuses over there. I don't know why they decided, "Let's build the rest of the building on the other side of the freeway." I don't know.
The other thing that I would do now, that's ancient history, and I don't know what was going on, what they were thinking. The other thing that I would do is maybe we should move to a new location.
STU: But they have all these fancy buildings where they are coming up with fizzy drinks and everlasting Gobstoppers and all that.
GLENN: Sometimes you say we've outgrown this space, and it's really inconvenient because my other office is across eight lanes of freeway and a train. Bad planning. Oops, my bad. Maybe we should build a new building or maybe we should find an existing building and renovate it. Maybe we could move downtown, you know, where those what do they call those, oh, those new oh, yeah. High rises. That way there's no freeway in between floors. I don't know if they know that. That's crazy.
STU: Glenn, again I'm not a guy who runs a company.
GLENN: I know. You're just a thinker.
STU: I'm just a guy living my life.
GLENN: Let's let the common man in here. Let's let him air things out a little bit.
STU: But let's say, you are an employee at Microsoft campus.
GLENN: At Microsoft, that's the one on this side of the highway.
STU: Right.
GLENN: Then there's eight lanes of highway in between and a train.
STU: And you're at Microsoft campus B.
GLENN: Who is?
STU: You needed to meet with someone at Microsoft campus B.
GLENN: I don't know how to do that.
STU: How would you do that?
GLENN: I don't know.
STU: Someone at Microsoft could potentially invoke the power of the Internet.
GLENN: No, that's crazy.
STU: I'm saying
GLENN: What?
STU: I'm saying that they
GLENN: What, you are going to get on and you are going to do like MS DOS and stuff and you are going to be like, Y equals what are you going to do? It's not like you can have moving pictures, not like you can have a teleconference.
STU: No, what I'm saying is I think you could do that. You could see like a camera could take a picture of you.
GLENN: No. They need the bridge.
STU: What I'm saying is that Microsoft people should go to GotomyPC.com.
GLENN: The only option here, Stu, is for government money to build a bridge between these two campuses and you can see that bridge now on the it's beautiful, especially this time of year, beautiful. You should be very proud. They may put I was going to say you could pretend they are going to put your name on it because you're paying for it, but they will just put Microsoft up there.
Saturday, March 21, 2009
Freedom.
"Those who deny freedom to others deserve it not for themselves. And, under a just God, cannot long retain it." -- Abraham Lincoln
Saturday, February 28, 2009
Housing. Is it really that bad?
Just take a look at this video and then ask yourself if what is being asked from the U.S. Government is reasonable. Is it really that bad?
Friday, January 30, 2009
Bailout! Bailout! Bailout! Make It Stop!
Remember the first $700 Billion bailout? Remember that the CEOs have been rewarded for their poor management of the companies they oversee? Well, guess what. There is evidence that Goldman Sachs bribed the Senate to pass that $700 billion bailout.
Is there any other reason to find new leadership for our states and our country as a whole? There are actually so many reasons that I cannot even count them. Isn't our country important enough to save? Those voting on these bailouts and adding in their pet projects have lost touch with America. They have lost touch because they don't live in our reality. When was the last time they did their own laundry (other than Jason Chaffets from Utah...an exceptional exception. When was the last time they drove themselves? When was the last time they went to the store to pick-up a case of diapers, much less their own groceries? Who are these people to vote to spend our money, our children's money, and our children's children's money?
Is there any other reason to find new leadership for our states and our country as a whole? There are actually so many reasons that I cannot even count them. Isn't our country important enough to save? Those voting on these bailouts and adding in their pet projects have lost touch with America. They have lost touch because they don't live in our reality. When was the last time they did their own laundry (other than Jason Chaffets from Utah...an exceptional exception. When was the last time they drove themselves? When was the last time they went to the store to pick-up a case of diapers, much less their own groceries? Who are these people to vote to spend our money, our children's money, and our children's children's money?
Wednesday, December 17, 2008
Citizen Stimulus and Bailout Committee
"Stimulus", "bailout", whatever they call it, it is going to cost us a pretty penny (plus interest). Wouldn't we have a wise and "transparent" government if they were to incorporate a committee of citizens in various industries across the country to audit and evaluate who and how regarding stimulus and bailout? After all, it is the taxpayers' money.
In the circumstance of the auto bailout, wouldn't it be prudent that they incorporate an actual audit of those companies receiving consideration for the money? Or are they just going to take the executives at their word.
The actual $700 billion bailout (TARP) was supposed to receive an audit of sorts in early December. But, no matter where or how I searched, I could not find any specifics on the actual grade, review, audit, or otherwise. So, what has become of that money? Shouldn't we be privy to that information, since it is our money (plus the interest of at least 5% that we will owe some foreign country, most likely China)?
Without and audit, how does Congress expect to know how much total taxpayer money will be needed to help General Motors Corp. and Chrysler LLC. to actually survive. After all, they are telling Congress that they need "a total of $14 billion to $15 billion to survive through early 2009". What happens after that?
Sure, they should make sacrifices, but what do they mean by "show they're willing to sacrifice"? Does that mean that they have to take business class airfare? Or does that mean that they have to drive themselves in their own brand of car instead of taking a limo? When you are talking about executives that "haven't adapted well to changing conditions", what are they going to consider change and sacrifice, versus what actually needs to be accomplished in our reality.
When there is a Washington machine committee put together to evaluate this issue of "concessions" and "sacrifice", are they really living in reality enough to evaluate the issue? Or would it be more prudent to have some actual citizens involved in this process...people who are in various working industries and conditions around the country? After all, it is our (the taxpayers') money.
If you are not worried about future ramifications of all of these "stimuli", you should be. If it were as easy as just printing more money, that would be easy and we would not have these recessionary, depressionary, devaluationary, deflationary concerns. However, in the end, the buck stops with you and I...literally. In the end, since the money is coming from you and I, wouldn't you rather see a committee of folks who are a part of the various working industries around the country, and not just those who are a part of the Washington D.C. system?
In the circumstance of the auto bailout, wouldn't it be prudent that they incorporate an actual audit of those companies receiving consideration for the money? Or are they just going to take the executives at their word.
The actual $700 billion bailout (TARP) was supposed to receive an audit of sorts in early December. But, no matter where or how I searched, I could not find any specifics on the actual grade, review, audit, or otherwise. So, what has become of that money? Shouldn't we be privy to that information, since it is our money (plus the interest of at least 5% that we will owe some foreign country, most likely China)?
"House Speaker Nancy Pelosi touted the notion of a 'car czar' to supervise an auto industry bailout, saying Tuesday that Big Three executives haven't adapted well to changing conditions." -- December 9, 2008, Associated Press
Without and audit, how does Congress expect to know how much total taxpayer money will be needed to help General Motors Corp. and Chrysler LLC. to actually survive. After all, they are telling Congress that they need "a total of $14 billion to $15 billion to survive through early 2009". What happens after that?
"Dec. 16 (UPI) -- Stakeholders in the U.S. auto industry must show they're willing to sacrifice if assistance funds are to be allotted, a White House spokeswoman said Tuesday." -- UPI.com, Business News, December 16, 2008
Sure, they should make sacrifices, but what do they mean by "show they're willing to sacrifice"? Does that mean that they have to take business class airfare? Or does that mean that they have to drive themselves in their own brand of car instead of taking a limo? When you are talking about executives that "haven't adapted well to changing conditions", what are they going to consider change and sacrifice, versus what actually needs to be accomplished in our reality.
"(If) we're going to use taxpayer financing to assist the automakers, all stakeholders are going to have to come to the table and be willing to show that they are capable and willing to make really tough decisions about the way forward," spokeswoman Dana Perino said. "(We) need them to become viable, competitive firms in the future, and in order to do that, concessions are going to have to be made by stakeholders." -- UPA.com, Business News, December 16, 2008
When there is a Washington machine committee put together to evaluate this issue of "concessions" and "sacrifice", are they really living in reality enough to evaluate the issue? Or would it be more prudent to have some actual citizens involved in this process...people who are in various working industries and conditions around the country? After all, it is our (the taxpayers') money.
"House Speaker Nancy Pelosi says Democrats are preparing a massive economic recovery bill in the range of $600 billion.
It would blend immediate steps to counter the slumping economy with longer term federal spending on infrastructure like energy efficiency projects.
The California Democrat told reporters that economist Mark Zandi has recommended to Democrats an economic stimulus in that range -- including $400 billion in infrastructure and $200 billion for tax cuts.
Pelosi saysCapitol Hill Democratsare already "hard at work" writing a stimulus measure to pass next month. It's expected to combine tools like tax cuts and help to states suffering from big budget deficits with infrastructure projects like road and bridge repairs." -- The Associated Press, December 16, 2008 (note: italics added)
If you are not worried about future ramifications of all of these "stimuli", you should be. If it were as easy as just printing more money, that would be easy and we would not have these recessionary, depressionary, devaluationary, deflationary concerns. However, in the end, the buck stops with you and I...literally. In the end, since the money is coming from you and I, wouldn't you rather see a committee of folks who are a part of the various working industries around the country, and not just those who are a part of the Washington D.C. system?
Monday, December 8, 2008
Auto Bailout. Where are the economic advisers?
Tell me. Where are the economic advisers, the accountants, the good economists for the United States when decisions like the bailouts are being made in Congress?
If we are creating a bailout for these large auto corporations at 5% interest, how is it that we are making an investment? The reason I ask this is that we are paying out at least 5% in interest to foreign countries on the money we are borrowing for these bailouts. Doesn't the country have a good accountant/economist who can advise on a higher percentage of interest for these loans so that we can actually make money on this supposed investment?
Besides the interest issue, what about the profit being made by GM on its overseas sales? Are they really in such desperate need of the taxpayers money?
So, shouldn't GM utilize its overseas profits at this time, instead of getting a handout that is composed of our future tax dollars with an interest our country is currently paying other countries for the money?
Additionally, shouldn't there be a mandatory restructuring of these enormous bureaucratic corporations in order for them to receive a dime of our money? And along with the restructuring, wouldn't it be prudent that the CEOs and other exorbitantly highly paid executives of these companies (Ford, GM, Chrysler) be taking a mandatory cut in pay, to a pay scale that actually fits standards of someone who should be accountable for the success of their company(s)?
The desire is not that additional U.S. jobs be lost. The desire is for accountability and basic accounting in general.
What do you think? Do you support this "bailout"? Or do you have a multiplicity of questions?
If we are creating a bailout for these large auto corporations at 5% interest, how is it that we are making an investment? The reason I ask this is that we are paying out at least 5% in interest to foreign countries on the money we are borrowing for these bailouts. Doesn't the country have a good accountant/economist who can advise on a higher percentage of interest for these loans so that we can actually make money on this supposed investment?
Besides the interest issue, what about the profit being made by GM on its overseas sales? Are they really in such desperate need of the taxpayers money?
"Now GM is looking at its own international stable, and has its eye on China as a source of stopgap revenue for its North American operations. We've posted before on the fact that GM's international operations aren't doing too badly, and GM China sold 11.5 million vehicles last year -- more than any other manufacturer there. This year, it expects China sales volume to grow by 11- to 12-percent, and that means yuan in the bank." -- autoblog
So, shouldn't GM utilize its overseas profits at this time, instead of getting a handout that is composed of our future tax dollars with an interest our country is currently paying other countries for the money?
Additionally, shouldn't there be a mandatory restructuring of these enormous bureaucratic corporations in order for them to receive a dime of our money? And along with the restructuring, wouldn't it be prudent that the CEOs and other exorbitantly highly paid executives of these companies (Ford, GM, Chrysler) be taking a mandatory cut in pay, to a pay scale that actually fits standards of someone who should be accountable for the success of their company(s)?
The desire is not that additional U.S. jobs be lost. The desire is for accountability and basic accounting in general.
What do you think? Do you support this "bailout"? Or do you have a multiplicity of questions?
Friday, December 5, 2008
Paulson Committing Terrorism? You must listen to this!
In this economy, many people are attempting to blame anyone they can to make sense of the situation. Some claim that this is the New World Order, but you need to decide that for yourself. Conspiracy? Truth? Very interesting!
Subscribe to:
Posts (Atom)