Posts Tagged ‘bailout’

To confront the serious economic challenges our nation faces, there have been some bold initiatives presented to this country. And of course, Wall Street to Main Street is watching impatiently to see what will work and what will fail. Wall Street

It has been presented as a new era of responsibility and cooperation. So, do we look beyond the short term political calculations and rhetoric to reinvest back into this country our hard earned cash? And these days it is definitely hard earned. We are promised if we do, our investments will make America stronger and more prosperous moving forward.

Through the Recovery Act, the Stability Plan, and the Housing Plan, we are told that immediate measures are being made to assist families and working people. And we are told there will be transparency in every thing that is done and that we can track all monies given as bailout remedies at www.Recovery.gov

 

We are promised a renewed commitment to transparency in government and after what we have seen thus far with taxpayer money being wasted on greedy CEO’s and banking institutions, I hope we see changes immediately. And if transparency shows that the American people are still getting ripped off, who will hold these institutions accountable? We should all take the opportunity of holding our representatives fully accountable for the decisions they make.

 

So, as I am venting I hope you join with me and really make an effort to be watchful of monies being wasted and make others aware that we are all in this together, and we need to really stay conscious of what is said and presented by both parties and this administration, CEO’s and the banks that hold our money hostage. money

 

Please stand up and speak out. Let me know what you think about the bailout plans, the Recovery Act, and other plans. Will they work? Why or why not? Will the process and results really be transparent? Share your thoughts and vent your feelings. If we really want change, let’s create it together.

 

Vent, Baby, vent!

We will see if this recent stimulus package and second round of the  bailout  money to shore up the banking institutions will have some oversight to make sure that the money will be used as intended.

Post your thoughts and comments.

 

 

I have to say, I’m less than impressed with the way the $700 billion bailout has been handled. Didn’t this whole mess start with a complete failure of the mortgage industry due to its prolific writing of really bad loans to people who they knew couldn’t possibly pay them back? And when those loans (many of them interest only) adjusted, wasn’t it the mortgage industry that insisted they get money from the government (or taxpayers) to pay their own bills, while the homeowners who were defaulting on the badly written loans are just left to fend for themselves? (Nevermind that they are the same taxpayers that the mortgage companies are taking money from.) NYSE

 

Well, I have a solution to the issue that I believe is simple, direct and gives everyone what they need. (President Obama, you can take this idea as your own. I don’t mind.)

 

First, loan the banks what they need in increments. Let’s say $100 million to start. But don’t just hand over the money. Instead, make the lender sit down with the borrower and figure out what they need to be whole. For example: Let’s say Joe Citizen bought a home for $200,000, interest-only loan, no money down. Now that home is worth $150,000. Then Joe gets $50,000 of the $100 million to pay down his mortgage, but the money goes from the government to the lender. The lender is then required to write a new mortgage for Joe, at current rates and NOT interest only.

 

Only after the lender can prove in writing that they have spent $100 million assisting individuals with their mortgages, and that new mortgages have been written at current market rates (low), and that the homeowners are capable of repaying, will the lending institution be given any additional funds. And they must prove that ALL of the money went to help homeowners – no bonuses, big raises, or conferences at swanky hotels.

Washington bill 

If the first $100 million isn’t spent within a year then whatever money is left over goes back into the pool of money earmarked to help homeowners stay in their homes. In other words, if the lending institution wants to hoard the money instead of using it for good, then they get nothing. They will fail, and a bank that is more willing to help Americans stay in their homes will be there to pick up the slack.

 

What’s the result? People have mortgages that they can afford. Banks aren’t left holding the bag for the correction in the housing market. Individuals will have more cash at the end of the month to spend on rebuilding the economy. Banks will have the cash flow they need to feel more secure about lending to businesses again. Businesses will feel more secure and be able to expand and hire more workers. And on and on.

 

Don’t tell me it’s more complicated than that – I know it isn’t. The issue is to get money flowing, and this solution is designed to do just that. It really is that simple.

2009…Now what?

Posted: January 5, 2009 by kibler in 2009, Uncategorized
Tags: , , , , , , ,

Well, here we are. 2009 has arrived and just how ready are we to tackle the difficult issues we will be facing this year?

Let’s review 2008 shall we?

1. Financial catastrophe, where trillions in personal wealth have been lost to poor company management and greed.

2. Overpaid CEO’s who cared more about their own personal gain rather than their employees’ welfare or their companies’ performance.

3. Lack of oversight from this Administration and Congress on company and CEO spending abuse.

4. The continuation of the wars in Iraq and Afghanistan.

5. No real answers to health care in this country.

6. Exceedingly high unemployment rates like we have not seen in decades.

So, what are we going to do about it? Where are we going to get the answers we need to address the issues we will be facing in 2009? We cannot wholly depend on the new administration to solve all of these problems. We need some great minds to come together and entrepreneurs to get their ideas formulated to create jobs for this country. And we need it soon!

What do you think — who do you think would be the best person to lead the charge to financial freedom for this country, or to solve any of the other problems listed above? What would you like to see happen?

Let’s hear from you today. Come on, just go ahead and vent!

AIG – Bah Humbug!

GM – Ford & Chrysler – Bah Humbug! General Motors

Banks – Bah Humbug!

It seems everyone today is in search of a bailout. Everyone is asking, but the people who really need it -people – everyday, hardworking people like you and me are not! Yes, there is something wrong with this picture.

Yes, I agree there are many industries that are hurting, but the bailout money cannot go very far if everyone keeps putting their hands in the cookie jar. Especially when everyone wants to get their piece of the cookie and then not have any regulation or oversight as to what happens with the money once they have it, like AIG. A company that has hidden where the money is really being spent on lavish outings and retreats, all at the taxpayers expense. How far are they willing to go in paying out bonuses this year for high level executives? I sincerely do not believe they are going to come clean and be open about where the money is really going.

It is a shame…..I mean it, a real shame that it has come to this. But, here we are and what we need to do is decide what we are going to do next about the situation. What’s next? Who is next?

The “Big Three” automobile manuafacturers have all been in Washington with their hands out begging for a bailout, but not one of the companies have a plan to make any changes with their companies to get back on the right track or to get financially stable. It is not that anyone wants the automobile industry to crumble in America, nor do we want to have any ancillary businesses and suppliers to go bankrupt, but at some point, until the automobile industry get’s it, there will be a continual spiral downward. But, if a bailout of any kind is to be given there must be changes. Big changes with oversight on every dollar spent so that the taxpayers do not take another bath without any benefit like we have been doing. crossfire_chrysler_automobile

Spend some time contacting your elected official to add some voice to this situation. Yes, many companies are in trouble, but if you want a handout there has to be some oversight and not just a free ride for failing miserably in their responsibility of fiscal financial obligations.

Speak out! Please!

What a mess! Not only is the economy crumbling around us, but the government bailout that was supposed to help homeowners stay in their homes, has become an unprecedented one-two punch that is taking the wind out of taxpayers.

 

No one wants to see the financial crisis worsen, but the idea behind a bailout was to help the people who were ending up in foreclosure or without a job because businesses couldn’t borrow even enough money to make their payrolls. Now it seems as if the bailout – which was railroaded through Congress – may not be designed to help those in real need at all.

 wallet of credit cards

Blogger Amey Stone (www.BloggingStocks.com) hit the nail on the head with her list of “Eight ways the Wall Street bailout is adding insult to injury”. According to Stone these are a few of the egregious ways that the companies benefiting from the bailout, keeping taxpayers from benefiting at all (heavily edited – see full text here):

 

·        Not only are Wall Street financial firms getting bailed out but they get to keep their big bonuses too. Estimates anticipate that as much as $70 billion (of the $700 billion bailout money) will get paid out in bonuses to bankers this year.

 

·        After getting an $85 billion bailout, AIG sent salespeople on a lavish retreat at the St. Regis resort in Monarch Beach, Calif. It cost AIG $440,000 but AIG execs should have put a stop to such unnecessary spending, not just because it was a potential public relations nightmare, but because it was the wrong thing to do for a company that could not make ends meet without burdening taxpayers.

 

·        Some Lehman executives got signing bonuses to stay at the banks that acquired their divisions in bankruptcy proceedings. Nomura, which bought Lehman’s European and Asian divisions, gave bankers cash equal to last year’s bonus if they agreed to stay at Nomura for a year, for example. Shouldn’t keeping their jobs have been compensation enough given the massive firings on Wall Street?

 

·        CEOs of failed financial firms still get a golden parachute to soften the blow. Even though their firms’ profits have been essentially wiped out, most will still be making millions at taxpayers’ expense. Five dollar bill

 

·        Banks that are sharing in the $700 billion bailout money are supposed to use it to keep the economy humming, right? Nope. It turns out that banks can use the money however they want. Banks that are getting government bailout money are contemplating using it for other things — like buying other banks — not adding it to the lending pool so they can make more loans and end the credit squeeze.

 

So, the question is: What can be done about this entire situation that has become a train wreck for every taxpayer?

 

Where does the greed and corruption stop? Who will be held accountable in government and at every corporation that now has its greedy hands out begging for more so they get their lavish trips, bonuses and golden parachutes?

Enough is enough!

 

As a taxpayer, are you fed up with this? Please, share your thoughts.

 

 

Is it just me, or does it seem that fairness and equality are two terms that are totally foreign when it comes to the American workforce?

 

CEOs of some of the biggest companies in America are getting paid very well to:

1. Run their companies into the ground while

2. Laying off, downsizing or shutting their doors.

 

This has become very apparent over the last few weeks while the entire country has struggled with a massive financial sector bailout. We have yet to see how the $700B “fix” will be implemented and whether some financial institutions will continue to pay exorbitant salaries and offer golden parachutes for their CEOs at the taxpayer’s expense. AIG certainly seems to think spa treatments and golf outings are an acceptable way to use taxpayer dollars. CEO

 

In 1980, the average CEO of a major corporation made 42 times the average hourly worker’s pay. By 2000, the average CEO salary reached an incredible 531 times that of an average hourly worker.

 

Is tying executive compensation to the financial success of the company realistic? Does anyone honestly believe that all or most of the appreciation in the value of a company is directly related to the CEO’s talent?

 

24/7 Wall St has done an analysis of companies whose CEO’s need to see the writing on the filing and get ready to do some job hunting. Regardless of this type of projection of imminent demise, these CEO’s will probably enjoy a separation package that will soften any smack from hitting the pavement.

 

One such CEO was Michael Ovitz who enjoyed a $140 million paycheck for 14 months of work at Walt Disney. Shareholders sued but a Delaware judge ruled that the board did nothing wrong in awarding that huge severance package.

 

But Disney continues to be a solid company. Some boards award large packages to CEOs even as the executives trash their shareholders’ investments. Take, for example, Gary Smith of Ciena whose shareholders lost 93% during a four-year period, 2001-2005. His compensation during that time? $41.2 million.

 

Anderson Cooper has begun reporting on a new list, “10 Most Wanted: Culprits of the Crash,” featuring some of the most outrageous and egregious acts of greed on Wall Street, naming names of CEOs who have taken advantage of their companies, the bailout,  taxpayers and their own employees.

 

These outrageous compensation packages do not seem to have anything to do with the level of responsibility, or with how well a company is run. Wad of money

 

I know investors can vote with their feet – leave the dog that won’t hunt. And some activist shareholders fight overly generous pay. But another approach is to look for companies that have great performance and reasonably paid leaders. That is a sign that boards and top managers feel a responsibility toward shareholders, says Michael Brush, in an article on MSN Money. Brush includes a list of some of those companies as well.

 

But wouldn’t it just be easier if boards and search committees would hire people based on previous performance and – even more important – compensate more in line with what the company, and shareholders, can afford to pay?

 

Have you ever lost out because your company’s stock dropped, while the CEO was landing softly on a pile of cash? What are your thoughts?

 

 

 

 

Click here: CEOs Are Overpaid

 

http://money.aol.com/investing/ceos-who-have-to-go?icid=200100397x1206422760x1200354294

 

Click here: The 5 most outrageously overpaid CEOs – MSN Money