Banks need even more money

[concerned]

WASHINGTON — Even before word came on Tuesday that Citigroup might split into pieces to shore up its finances, an unpleasant message was moving through Congress and President-elect Barack Obama’s transition team: the banks need more taxpayer money.

www.nytimes.com/2009/01/14/business/economy/14fed.html?th&emc=th

Somehow I think our economy will fail.

[lucy]

Gee maybe the CEO's shouldn't take such a big bonus every year. If there is going to be another bail out package for the banks I think that I will finally lose it and flip out.

[dgriffin]

I liked Snicker's idea ... I think it was her who mentioned it in another thread ... to give the money directly to all of us to spend into the system, rather than let the bankers skim off the top.

[frankcor]

We need to let the troubled banks fail. New, more efficient banks, will rise from the ashes.

Yes, it will be painful. But not as painful as it will be if we don't let them fail.

You can replace the word "banks" in the first sentence with "automakers" or any other industry.

[Clipper]

I tend to side with you Frank, although I am no economic genius. I agree especially with the idea of letting the automakers dig their own way out after filing for bankruptcy.

[frankcor]

If we have to give money to automakers, why not give it to Toyota or BMW and ask them to build even more factories in the US? They seem to know how to build cars and make a profit.

[Clipper]

Honda, Nissan, Toyota, BMW, and others. They all know how to build and market a reliable and high quality automobile, without $78 per hour union workers.

[dgriffin]

From the 01,26,09 issue of the National Review:

(This Week)

"The Bush administration authorized a $17 billion rescue package for GM and Chrysler. Ford, the only one of the Detroit automakers that was not facing bankruptcy, turned down the cash. GMAC, GM’s financing arm, immediately used the money to offer zero-interest financing on three models of sport-utility vehicle that were clogging up its dealers’ lots, something GM’s vice president admitted it would not have been able to do without the bailout. One would think that giving Ford’s competitors the means to offer better deals on their cars would be unfair to Ford, but Ford prefers this state of affairs to the alternatives. The way Ford sees it, a messy bankruptcy for GM and Chrysler might have been too disruptive to the industry, while a government-backed bankruptcy that forced the creditors of GM and Chrysler to accept write-downs and their unions to accept pay cuts would have made GM and Chrysler too competitive. It is a sign of just how screwed up the U.S. auto industry has become that Ford’s CEO actually asked the U.S. government to help its competitors limp along beside it, and it is a shame that the Bush administration acquiesced to this warped demand. "


nrd.nationalreview.com/article/?q=MDg2MTAwMjEyZjllNTBkNjkzNjA1NDA4NTA5MjJlYjA=

[frankcor]

Jim Cramer has an interersting take on the auto industry. Let a European cooperative led by Citroen and Audi buy Chrysler, then let GM & Ford merge after their bankruptcies relieve them of their union contracts.

A Chevy F-150???

[Clipper]

Just can't get the "warm and fuzzies" for a Ford Corvette though!

[lucy]

Well I work at a bank, and I also believe the banks shouldn't have another bailout. I'm extremly upset right now. The CEO of my bank took a big bonus, as did the other high up bosses, and we the small people aren't getting a raise. On top of that they just fired quite a few people. It is very upsetting. Everytime I walk into work I look over my shoulder and hope that I don't get fired. I hate that feeling, it makes me sick to my stomach. Some people say it can be a good thing getting fired, but with me I live paycheck to paycheck right now, and I can't afford to lose my job. I don't make bad money I know if I were to go anywhere else I wouldn't be making what I'm making now. Our CEO told us that they are going to have classes on how to live within your means. My thoughts on that Shove it up your ass! Trying to tell us on how to live with in our means, after he takes a huge bonus. What an asshole! Sorry for being so disgruntled, but I'm very upset. I have worked at my place for a very long time, and I enjoy my job, I do some interesting things, and its just upsetting that it is going to be ruined by a greedy CEO.

[Deleted]

That doesn't surprise me Lucy about that class your employer is offering. In other words what they are telling you is that when we fire you or cut your wages & or hours you have to learn how to eat more Hamburger Helper & beans to survive, while I & my big shot cronies sacrifice nothing & continue to collect a huge paycheck & a bounus while producing nothing. Only when these aristocratic sons of bitches that caused this problem with their greed & corruption are thrown in jail will this country recover. That way, they can't think up another scheme to screw us all over. Wall St. has been screwing us all over since at least the mid 80's. It's one thing after another with the S&L scandal, the tech bubble, the oil ripoff. The list goes on. The jails should be overflowing with Wall St. bandits & Madison Ave. crooks but it won't happen. No, it's the middle class that will pay the price for Wall St's corruption.

[dgriffin]

The jails should be overflowing with Wall St. bandits & Madison Ave. crooks but it won't happen. No, it's the middle class that will pay the price for Wall St's corruption.

Now you know who's in charge.

Our CEO told us that they are going to have classes on how to live within your means. My thoughts on that Shove it up your ass!

Exactly.