Does Anyone feel like Bailing

[lookout123]

something important to understand is that no lender was holding their paper much past the first payment. When that is the case, likelihood of repayment is no longer the primary concern. When a bank holds it's paper it will make profit from the interest over a period of years. When a bank sells it's paper it makes profit on the fees charged to close the loan. Sub-prime loans charged much higher upfront fees, therefore were much more profitable to the loan origination company. Repayment? That's someone else's problem.

I will tell you this, though, ACORN and others like them shoulder a lot of the responsibility for this. The tactics and pressure they applied to companies to approve loans for lower income and lower credit quality applicants was obscene. It got to the point that underwriters often joked that the applications should just be sent to ACORN since they seemed to want anyone with a pulse approved.

[classicman]

Oh lookout - stop it with the facts again.

[tw]

Socialism may end this year. So GM is running to George Jr for more money. In but a month, that $25billion is already gone. GM now wants the government to pay for a GM Chrysler merger.

As any good MBA would do. Fix a defective company by merging it with another losing company. No problem. A merger means a stock swap - no cost. But a merger is also an excuse for more corporate welfare.

Well, GM may not get that money. So GM today ran to George Jr to get money through its finance arm - GMAC. George Jr just announced that he approves of the request. Remember that $700billion bailout called TARP? George Jr now said GM may be able to tap that $700 billion as soon as the Treasury approves. GM will do anything to protect its problem - top management - especially Rick Waggoner.

Louis Hughes was running GM's $36billion international division - making a small profit. At least it was worth that much back then. The Buick in China was Louis Hughes' biggest success. Louis Hughes was a car guy - actually worked with cars. Rick Waggoner: a bean counter who as the head of GM's North American division. Under Waggoner, North American division was losing money. Who did GM select for the top job?

GM is so dominated by bean counters as to select Rick Waggoner. Therefore GM is losing money everywhere - even in its international group. Louis Hughes immediately left to run Lockheed Martin. Now the entire GM is only worth $5billion. International division alone was once worth $36?

When extremists advocate corporate socialism, GM will hurry for free money. Next year, the new president may demand fiscal responsibility - which the current administration never did to encourage this market meltdown. With $700billion in easy money sitting on the table, George Jr is again doing what extremist conservatives do best - spend with reckless abandon. As Cheney said, "Reagan proved that deficits don't matter". Using its financial arm - GMAC - GM intends to tap the $700billion TARP bailout money. GM will do anything to protect their only problem - top management. Easy to do when government is run by ‘spend excessively’ extremist conservatives who advocate corporate socialism. Easy to do when those extremists may lose power and want to spend even more recklessly. Easy to do when Rush Limbaugh tells extremists that this is good and blames it on Clinton.

[SamIam]

The entire thing continues to make me feel totally enraged. Why should we pay billions of dollars to not only bail out incompetent CEO's, but even give them golden parachutes which allow them to bail out of the mess they created and live like the Saudi royalty? Meanwhile, children living in poverty go without medical care and decent schools that might give them a chance in life? I am so mad and fed up over all of it.

[classicman]

SamIam, Blame the fiscal branch of Gov't.

[SamIam]

What fiscal branch? It was our wonderful congress that voted for the bailout. The excutive branch in the form of lame duck Dubya signed off on it. No doubt if they had a chance, the judicial branch in the form of the Supreme Court would have corporate welfare become the law of the land. Oh, grrrrrrrr!

[TheMercenary]

Originally Posted by classicman

SamIam, Blame the fiscal branch of Gov't.

I believe the hint was missed.

[classicman]

thanks merc.

[classicman]

Ed Lazear, chairman of President George W. Bush's Council of Economic Advisers, defended the implementation of the rescue plan at a press conference Thursday. He noted there is little hard evidence that banks are not appropriately using federal funds. "We have to make sure that banks have the appropriate flexibility to do those things that will get credit markets going," Mr. Lazear said.

Uh no sir, THAT'S HOW WE GOT INTO THIS MESS IN THE FIRST PLACE
From here

U.S. lawmakers are considering steps to alter the terms of the Treasury Department's financial-rescue plan, including forcing banks to lend funds they've received from the government and imposing new limits on executive compensation at firms that are part of the program.

Good Idea

"The goal seems to be changing every single day," Mr. Sanders said. "Are we comfortable that a handful of bankers are literally alone in a room deciding which banks get what?"

Someone tell me this is NOT whats going on..... please.

[HungLikeJesus]

This is not what's going on.



Is that better?

[ZenGum]

More convincingly, please.

[classicman]

Maybe if you put it in bold, underlined or italics.
Yeh - that might help

[HungLikeJesus]

Sorry; just listened to National Public Radio. This is what's going on.

[classicman]

Fucking congress - Seems like all those elections flew under the radar too. I think they may be more important too.

[TheMercenary]

Originally Posted by classicman

Fucking congress - Seems like all those elections flew under the radar too. I think they may be more important too.

Congress is the election process to be keeping an eye on. It matters not who gets elected president anymore. I don't prefer Obama or McCain, but with a supermajority in Congress things could get ugly. I don't trust them anymore than I trust a supermajority by the Repubs. We have already seen what that gave us, and yet somehow we have pervasive mindset that a swing of the pendulum in the other direction is acceptable. Be careful what you wish for.