Bush's Shrinking Safety Zone

[classicman]

Only the strong survive - isn't that how it is in the real world? Perhaps we are cleaning up a bloated mess and will be left with only those that should have been around.
Hell lets get rid of GM too while we're at it.

[tw]

Originally Posted by classicman

Only the strong survive - isn't that how it is in the real world? Perhaps we are cleaning up a bloated mess and will be left with only those that should have been around.

Merrill Lynch customers can thank Bank of America for saving their investments from a similar glaring disaster called Lehman Bros. But again, every such problem is directly traceable to spread sheet accounting that perverts those spread sheets to claim profits. Good companies know the purpose of a company is its products. Bad (or for those who need to see things in religious terms) or evil companies foolishly think the purpose of a company is its profits. George Jr and the extremists he fronts for agree with the latter.

Companies that chase profits rather than better products must eventually use spread sheet games to claim profits. GM has been doing that for decades. When the employee retires, his pension fund is supposed to be fully funded. To claim profits, GM stopped funding those pension funds. Now GM claims legacy costs - an unfair advantage. GM forgets to mention that no profits existed through 1990s and early 2000s if GM had been properly funding those pension funds. But again, money games because too many foolishly think the only purpose of a company is its profits.

Under George Jr (especially obvious with his SEC commission Harvey Pitts), spread sheet games were openly encouraged. It makes an economy work better - according to the evil ones. Now the government must bail out companies who also pay those executives multi-hundred $million termination bonuses.

See why Chrysler is probably in trouble. Same executive that was slowly driving Home Depot under was given $200million to leave. Now he is doing same for Chrysler. His job as described to me by another (drunk) executive who was doing the same thing. "___ makes the spread sheets say what they must say." ____ was his accountant.

[TheMercenary]

Originally Posted by classicman

Only the strong survive - isn't that how it is in the real world? Perhaps we are cleaning up a bloated mess and will be left with only those that should have been around.
Hell lets get rid of GM too while we're at it.

I'd support that. Let's close them out and go with Ford. They make a diesel that gets 60mpg in the UK. But we can't get that here becasue they don't think there is a market for it? Someone please give them a call because I would gladly pay $5/gallon for gas if my car got 60mpg.

http://www.businessweek.com/magazine..._top%20stories

[tw]

Apparently the outcry about George Jr's administration doing socialism for rich companies struck a nerve last week. From the Wall Street Journal of 15 Sep 2008:

When Paulson called Wall Street CEOs Tuesday and Wednesday to inform them at his no-bailout stance, some argued to him that the government needed to structure a rescue like that of Bear Stearns Cos., according to people familiar with t he matter. To prevent Bear's collapse in March, the fed agreed to put up $30 billion to J P Morgan Chase & Co, the acquiring bank. The government also took on some of Bear's riskier assets. ...

Mr Paulson was also irked that Wall Street saw him as someone who would always ride to the rescue. And because Lehman's troubles have been known for a while, Mr Paulson felt the market had had time to prepare. Also, on Friday, federal officials monitoring talks to sell Lehman to Bank of America, which had started the day before, realized the big Charlotte NC bank would likely balk without federal backing. ...

Mr Paulson told the group it was in their interest to find a solution. "Everybody is exposed" to Lehman, Mr Paulson said ...

Why? Why would everyone do business with a firm that had financial statements that read like a black box? Nobody knew whether Lehman (and others) was fiscally stable for years. The same mentality that made home loans routinely to NINJA (no income, no job apparent) applicants also did business with anyone under the new philosophy of profit without considering risk; that the spread sheets need not be honest.

GM is worth $5billion. AIG (whose accounting has been speculated a black hole for maybe 5 years) attempted to raise capital through private sources. AIG could not. Nobody could trust AIG's financial reports. Despite the public outcry against corporate socialism and Paulson's warning, last weekend, AIG went begging to the government for $40billion. When will it end? When corporate executive start being removed in mass number for being so incompetent.

Merrill Lynch's CEO Stanley O'Neal was warned by his senior VP that O'Neal had created a massive subprime loan problem. Instead, the VP was fired. One year later, those financial myths became a threat to Merrill's existence almost 100 year existence. O'Neal was fired (with $hundreds of millions in bonuses). New CEO John Thain is credited with doing so much so quickly to save enough of Merrill as to make Merrill a useful purchase for Bank of America. By replacing the only problem in Merrill (Stanley O'Neal) with a responsible CEO, then Merrill Lynch account holders are not stuck in the mess that Lehman Bros clients are now suffering. Just another example of what had to be removed to fix the problem - top management.

Meanwhile, those who are the problem have finally heard the word. They, not the government, must fix the problem. In many cases, that means the CEO must be removed by overt threats of bankruptcy. Otherwise the employees lose their jobs. Merrill is a perfect example of what must be done to save those jobs and customer investments. Lehman and AIG are perfect examples of how ignorant and myopic CEOs are.

How did we save NYC? The New York Post said it on the front page. Ford to NY - drop dead. That is the only way to get the attention of narcissist and corrupt people.