Posted tagged ‘Bailout’

Auto Loan stopped by Republicans

December 11, 2008

Republicans would not let the auto companies get the no interest bridge loan which they need to keep their workers. Minority Senate leader Mitch McConnell (R-KY) has annouced opposition for the bill. He and other republicans want more concessiosn from the UAW.

They believe the American workers don’t deserve to earn as much as they currently do. These lawmakers want these workers to earn as much as workers for the Japanese companies of Nissan, Toyota and Honda do.

Senator McConnell does not believe the idea of a car czar with the ability to take back the money if the car makers don’t live up to their end of the bargains is strong enough.

Harry Reid will soon call the Senate to a vote and we will see how this goes.

Bailout to save the MTA

December 9, 2008
MTA Subway Map

MTA Subway Map

Last week a panel composed of current and former MTA employees including former MTA chairman Richard Ravitch unveiled a plan to save the MTA from a fiscal disaster.

Due to the recession the MTA isn’t able to get money from Albany or even the city to bridge the difference between income and expenses. The MTA would need $2.5 Billion to get out of this hole. Many people were expecting a rate hike as usual from the $2 it is now.

This panel however came up with various ideas to save the MTA and help alleviate riders from higher fare hikes than expected despite a general perception poor service. Listed below are the different recommendations the panel has proposed. (more…)

Big Three Bailout

December 7, 2008

Congress your approval rating is horrible, I wonder why? You can’t do anything right, year after year your still re-elected.

Why hasn’t this zero interest bridge loan been given to the automakers yet?

Because Brad Sherman and other congressmen have decided to grandstand. That’s why.

Brad Sherman, where the hell were you when AIG, Citigroup, Fannie Mae and Freddie Mac had their hands out? You want to grandstand and make a name for yourself by asking these CEO’s if they’re willing to sell their jets? You ask the “Big Three” CEO’s to take pay cuts and not accept bonuses?

Robert Nardelli, CEO of Chrysler has been working for $1 a year since 2007 with no bonuses or stock options. They have all sold their jets since them because of absurd public criticism.

The entire committee is asking some great questions, questions they didn’t ask the financial companies. The banks had NO, NONE, ZERO, NADA, ZILCH, information about how much money would be needed. Paulson and Bernake were stumped. Here you have companies with a plan laid out before you asking for 33 Billion instead of $700,000,000,000.00 and your grilling them.

Dennis Kucinich made great points before the bailout was passed.

You gave them the money, our money with great risk. AIG has since come back for more, spending money frivolously. AIG needs 152 Billion itself to keep going. These three companies combined are asking for close to 20% of that.

Three companies which directly or indirectly employ millions of Americans.

You gave Wall Street $700 Billion dollars because Henry Paulson told you to. None of you have any idea how much money was needed, or how this would fix anything. You all speculated, even the experts weren’t sure.

Wall Street lost TRILLIONS OF DOLLARS doing nothing!

When other countries go through a credit crisis our government has told them to raise interest rates, stop spending and let failing companies fail.

When we’re going through a credit crisis we lower interest rates, spend unprecedented amounts, and prop up failing banks. This led to the problem spreading to other countries.

I have a few words of advice for you Washington.

Don’t let the financial companies spend a dollar more. Make sure there is proper oversight of the money before you even give anyone another penny.

And give Detroit the loan. America needs it right now. You morons have screwed up enough. Somewhere Adam Smith is turning in his grave……

Morons.

Quinn says no to term limits. Not on my watch.

October 12, 2008

Recently New York City Council Speaker Christine Quinn said something about term limits. It was her statement on overturning the referendum on term limits which caused much anger.

She cites a “global economic crisis that has led to unprecedented challenges for our City. Indications are, those challenges will continue to grow more severe.”

Ford on bailout

Ford on bailout

I’m sure this city has been through worse before. From a city which came near all out bankruptcy to which we had to appeal to then President Ford. We might all remember his reply as shown by the New York Daily News front cover.

Stonewall riots

Stonewall riots

We have also been through times of discrimination which have at times caused riots in the streets. New Yorkers came together in those times to support their fellow New Yorkers.

9/11 is a time when New Yorkers made it through a tough time. We didn’t need continual leadership through what I can say without a doubt was the most emotional moment in our history. We’ve made it through wars, depressions, recessions, and violence. Don’t give me this bull about an unprecedented crisis.

Would President George W. Bush get away with trying to extend his term due to the current crisis? Surely Mayor Bloomberg has done great things for this city but we can not go backwards.

What are your thoughts on the issue?

Wells Fargo to Citigroup: Not so fast

October 3, 2008
Wells Fargo Corporate HQ

Wells Fargo Corporate HQ

So as I reported last week Citigroup is planning to buy Wachovia Bank. Everything was going smoothly until announcements today that Wachovia was going to be bought out by Wells Fargo Bank.

This came as a shock to Citigroup who negotiated a deal with Wachovia through the FDIC. Citigroup said that the agreement it reached with Wachovia said that Wachovia will not negotiate with anyone other than Citigroup.

This would be a $15.4 billion dollar deal. Now Citigroup might challenge this in court due to the terms of its agreement. The FDIC is also supporting Citigroup in this deal.

It seems that this case will be settled in the courts.

Everyday Wall Street seems to get more and more dysfunctional. All of this occurring on the eve of a House vote on the second bailout bill.

Citigroup buys out Wachovia.

September 29, 2008
Wachovia was bought on monday.

Wachovia was bought on monday.

Just when you thought the worst was over, it gets worse.

The FDIC strikes again in overseeing the sale of Wachovia to Citigroup which will take in $42 in losses. The FDIC will cover any other costs, if any, which will go beyond that. Citigroup did get $400 billion in deposits and the FDIC did receive $12 billion in stock and warrants for their assistance so it’s not all bad news.

In doing this the FDIC prevented Wachovia from failure, and yet another shock to the market and our limping economy. (more…)

Another one bites the dust: WaMu fails!

September 26, 2008
Washington Mutual fails.

Washington Mutual fails.

Yes, on top of all the talks of economic crisis and a $700 Billion dollar tax payer funded bailout (Don’t call it a rescue plan, it’s a bailout) Washington Mututal has failed.

The Federal Deposit Insurance Corporation or FDIC seized WaMu today and then immediately sold off it’s assets to J.P. Morgan & Chase.

This is the largest bank failure in America’s history. When IndyMac collapsed in July everyone seemed to have thought the world was on the brink of economic Armageddon. Mind you IndyMac has about $32 billion in assets.

Washington Mutual had over $300 Billion in assets. That goes to paint a picture of how big of a collapse this actually is. (more…)