Tag Archives: TARP

Thoughts on the Bailout

If instead of taking $850,000,000,000 [that’s a lot of zeros!] to spur the economy in the hopes of fixing things, we could, instead, take that $850,000,000,000 and invest it.  Just invest it.  Let it sit.  Even if we only make 5%, that’s still $42,000,000,000 a year!  In other words, we could literally create 425,000 jobs that pay $100,000 a year and NOT spend a dime!

This Should Actually NOT Surprise You

This should not surprise you.  Make you mad?  Sure.  Surprise you?  No.  And if it does, then you haven’t been paying attention to how the whole thing works.

Quoting in pieces:

General Motors Corp.’s chief operating officer said Monday that the automaker has presented a worst-case scenario to Congress in which it would need more money than the $13.4 billion already allocated by the Treasury Department

UAW President Ron Gettelfinger has said the union will approach President-elect Barack Obama’s administration to end what he called unfair requirements in the loan terms for concessions from the union.

U.S. Rep. Barney Frank, D-Mass., has proposed getting rid of a requirement that GM and Chrysler negotiate labor cost parity with foreign-owned automakers that have U.S. factories.

First, our Government gave these companies money out of the TARP fund.  Still not sure how in the hell that works.  I thought the TARP money was meant to be lended to banks and financial institutions; not private car companies.

Before you ask, the reason banks and financial institutions get money and not car companies is that our economy is a Capitalist one, not a Automobilist one.

Then,  when we began to consider giving these failed companies money, everyone knew, just KNEW, that their model was not going to support business as usual, even with all of this money.  But, in the end, we gave it to ’em anyway.  And now looks what has happened.  We are into them for all these billions of dollars and now we have to keep going; keep doublin’ down.  Why?  Cause we are suckers.

So now, this is not surprising.  Sure makes me mad though!

Oh, and for a good read on the most maddening of those that are maddening, read this.

Quid Pro [Not] Quo

Serious!  Stones the size of cookie jars!

This from the American Bankers Association:

As part of an agreement reached Thursday with key Senate and House Democrats, Citigroup has agreed not to oppose legislation that would allow bankruptcy judges the authority to modify mortgages that were set up prior to the enactment of the bill. “The ABA has consistently opposed proposals that would give bankruptcy judges broad authority to unilaterally modify the terms of mortgages,” the bank lobby wrote in a statement. The majority of ABA’s members are banks with less than $125 million in assets.

Now for the quiz.  Who should be ashamed here?

pssst…..key sponsors, Sen. Richard Durbin, D-Ill., and Rep. Brad Miller, D-N.C., are hopeful the measure will be included as part of President Elect Barack Obama’s stimulus bill