Tag Archives: bailout

Auto Bailout Round 2, GM to Cut Saturn, WTF

Well, at least the executives didn’t take a $200,000 private jet flight in this time when they were asking for money, and are cutting their salary to $1 million in total compensation… nice, most American’s are struggling paycheck to paycheck and they take only $1 million… I have an idea, set the salary cap in total compensation for anybody, CEO the board, any executives and down the line to $130,000. That’s still a shit ton of money, more than anyone needs in a year and saves a ton.
Now I have to ask why the hell would GM look to cut Saturn? Okay, Saturn is little more than rebadged Opel’s these days, but I would cut a few others first. They are already looking to sell Saab, which is fine, they don’t really need it, and it is perhaps best left to a European company to own. They need to shut down Pontiac, which I hear might be the case anyhow. Another division they need to shut down is Buick. I would also shut down GMC, since it duplicates too much of what is in the other brands, which brings me to: Then you really need to stop having so much cross pollination. By that I mean, don’t sell the same car under all brands with a name change and a slight styling change. Why sell the same small scale SUV under Chevy, Saturn and the others just rebadged with a sheet metal change? It’s one thing to rebadge an Opel in the US as a Saturn (though I would stop with the sheet metal/plastic changes), it’s another to do it across a large line. The cost savings from doing brand redesigns of the sheet metal and other changes alone would help save GM.
The auto industry hasn’t yet shown that they learned their lessons. The simple fact they are in such bad shape when their foreign competitors are not is just proof they are mismanaged. GM is on the right track with the Volt, but that is about it, and it may be too little too late. I recall an interview where the CEO of GM was saying no amount of planning could have prepared for this crisis, and yet Toyota and Honda seem to have been ready. For years some economists were warning this crisis was going to happen. So I have a hard time believing him. Clearly they mismanaged because they knew they were too big to let them fall, just like the bank CEOs. I say screw them. Let them fall.

The Bailout Bait and Switch and the Auto Industry Bailout

I don’t have the time to go into it fully, so I’ll keep this short.
Sarcasm mode on. How surprising, the big $700 Billion bailout that the banks were getting while paying their executives $70 Billion in bonuses is no longer buy troubled mortgage assets, but rather will just be given to banks in exchange for partial ownership. Gee, who could have predicted that the largest private bank in the US would switch from supposedly helping the people of the US to just helping themselves and the banks. Sarcasm mode off. I am not convinced for one moment that the Fed ever intended to help the American public, and from the beginning their plan was simply to inject cash into the banks. The owners of the Fed is kept a secret, it could very well be that the same banks and financial institutions that will get this money are the Fed’s owners. Congress should demand the Fed sticks to the original plan or take the money back.
Meanwhile, the Big Three auto makers are asking for $25 Billion of that $700 Billion to get them through until the new labor deals go in effect in 2010 which will reduce their costs a great deal. Of course Bankruptcy would force that deal to go in effect now and force other changes that the industry needs to make. We bailed Chrysler out in 1979 and here it is not even 30 years later and they are asking for another bailout. Why should we think that any of the big 3 learned a lesson? GM’s CEO said nobody could have predicted these problems, yet several economists have been warning about the credit crash for years, warning about all the problems we are facing today. Somehow, even though GM doesn’t think it could have been managed better, Toyota and Honda seem to have been managed well enough to avoid the problems the big 3 are facing. I am sure I’ll have more to say on the auto bailout later.

Idiot Republicans

[Edited 28 October to add about rich cheating on their taxes more, and to remove a few commas and apostrophe s’s, which for some reason I did on nearly every occasion where it should have been just an s.]
We’re back online and I am finally able to post political stuff.
I saw Ruben Navarrette Jr’s Commentary: Liberals let loose on Palin and Joe the Plumber and it just amazes me how much an idiot the Republicans are being… and I am finding it harder and harder to believe that I used to be a devout Republican myself.
At one point Naverrette says, ” I also thought the Democratic Party was supposed to go to bat for the little guy, the everyday Joe the Plumber.
Tell that to Joe Wurzelbacher, the Ohio resident who got his 15 minutes — and 40 lashes — because he dared question Obama about his tax plan.”
First off, Joe the Plumber would have been a non-story if it wasn’t for McCain bringing him up at the debate. The media wouldn’t be hounding him and finding all kinds of things about him if McCain didn’t make an issue of Joe himself. So his so called 40 lashes, the media camping out on his door step isn’t Obama’s fault as McCain and Naverrette would have you believe, but McCain’s fault… and he didn’t dare ask Obama, he asked, and Obama answered at length. Next, if we went by Joe’s original claim, he wasn’t any “everyday Joe the Plumber.” Very few people, even plumbers, make $250,000 a year. People who think that those making $250,000 are everyday people are living in a world that doesn’t represent the true state of affairs in the US. No wonder why they think the fundamentals of the economy are strong. Continue reading Idiot Republicans

Purposely Ruin the Country, Get a $70 Billion Bonus

Executives at 6 US banks will get $70 billion in bonuses for their work this year. That is a full 10% of the $700 billion bailout package these banks, along with a few others, will be receiving.
So let’s see, while the Fed was in Congress asking for the $700 billion, they took from the banks $125 billion, and now these banks are paying their executives bonuses amounting to $70 billion… That is nearly $200 billion that the banks and the Fed could have saved the taxpayers.
Nobody seems to be rising high hell about it. I heard a brief passing about it on the news, who went on to talk about the expected Fed rate cut. I did find a story about it though at the Guardian.
These guys purposely ran their financial institutions into the ground, knowing the government would bail them out, then get no punishment, and as a matter of fact get to take $70 billion in bonuses. I say, strip them of everything they have. Everything. Put them in a public housing apartment, salary cap them to $35,000 a year, and give them a 92 boat of a car that gets bad gas millage. That is the punishment for every board member and executive who has been in these companies for the last 10 perhaps as high as 15 years. Of course there will be no punishment, and years from now we’ll be right back in the same spot, especially since the laws that caused it are still in place as is the greed on the consumer and bank end.