A Called Strike Two

[N&B]

The banking industry got caught looking, and GM is burning cash in advance of declaring bankruptcy.

The gov't just said NO to failed bank assets after all. At least thats whats being reported around the 'net. If true, thats one for the good guys, as we won't be paying for the hedged losers. And it follows the recipe that the only good asset is a tangible asset. I note that ACAS suspended the dividend and promptly tanked 50%. The business of new business is on hold, a further sign of the depths of the recession.

As for GM, theres a fire sale on cash at GM, and the smoke does not smell so sweet. Frankly, the odor of used toilet paper burning is rather offensive.
And one wonders about the leased vehicle through GMAC, is it still an asset? And if GM leasing pays the property tax, do they have the right to reclaim the vehicle, as an asset grab to pay debtors?

As I see it now the two of the three industries a soverign nation has control of is out of control... that being the housing industry and the financing industry. The third, the infrastructure industry, has already been slapped like a drunken whore by Katrina. Yes we have a Super Bowl venue but we have square miles of wrecked homes needing repair and clean up. The rats are winning THAT war now, more than 3 years running.

Yup, still looks like an orderly bankruptcy from here.

[Brutus]

"This market, which is vital for lending and growth, has for all practical purposes ground to a halt," Paulson said.
The administration decided that using billions of dollars to buy troubled assets of financial institutions at the current time was "not the most effective way" to use the $700 billion bailout package, he said.
http://www.mercurynews.com/ci_10964524?nclick_check=1

http://www.nobailout.org/

https://secure2.convio.net/pepib/sit...rAction&id=123


that sign could also read "Stop grand theft auto companies

[Brutus]

i was seriously thinking that the "bailout" was merely a way to consolidate all that debt so the world bank or china could gobble it up, and claim "hey look these americans cant even pay us the interest on the debt they owe us" like what goes on in nigeria, and other 3rd world countries.

http://www.worldbank.org/

dang, i gotta show up in court in the morning.
see you guys later.

[blackchipjim]

The analysts were bashing the union contracts today as a major caused of the burden the auto makers have to bear. It's sad that this jackasses that ruined the whole economy have the balls to start pointing fingers at problems. If they want to know what the problem is they should look in the mirror they have in bathroom. I just wonder what the chinese are doing to the corporate thieves in their country. blackchipjim

[aslan]

Originally Posted by blackchipjim

The analysts were bashing the union contracts today as a major caused of the burden the auto makers have to bear. It's sad that this jackasses that ruined the whole economy have the balls to start pointing fingers at problems. If they want to know what the problem is they should look in the mirror they have in bathroom. I just wonder what the chinese are doing to the corporate thieves in their country. blackchipjim

So what's your solution? Government subsidized auto manufacturing? Unions do not work well in a global economy. It was fine when we only competed among ourselves. The game has changed, and we need a new business model that can actually work in today's world, or else a policy of isolationisn and protectionism.

[blackchipjim]

I don't have the solution to global economics otherwise I'd be rich. I wouldn't want the USA to be like other nations or their economies but we are headed that way now. Unions work fine and improve the working conditions for all workers. Unions set the standards for other who are non union with benifits and pay. I know people are going to start writing about the abuse unionization causes in companies that maybe true in some cases. I would rather have something union made knowing the person who made it wasn't stressed out making millions of them or else. I already know the other side of the story you don't have to rebut me. I have worked both in union and non-union shops and I would rather do my job in a union. I do it right regardless of the jerk boss I have and that a good point for unions. You don't want unions then we should have illegal aliens make all goods and services and everyone else who is here legally can be their boss. blackchipjim

[aslan]

Originally Posted by blackchipjim

I don't have the solution to global economics otherwise I'd be rich. I wouldn't want the USA to be like other nations or their economies but we are headed that way now. Unions work fine and improve the working conditions for all workers. Unions set the standards for other who are non union with benifits and pay. I know people are going to start writing about the abuse unionization causes in companies that maybe true in some cases. I would rather have something union made knowing the person who made it wasn't stressed out making millions of them or else. I already know the other side of the story you don't have to rebut me. I have worked both in union and non-union shops and I would rather do my job in a union. I do it right regardless of the jerk boss I have and that a good point for unions. You don't want unions then we should have illegal aliens make all goods and services and everyone else who is here legally can be their boss. blackchipjim

It's not that, bcj. I am pro-union. But in this case, it is the very union dedicated to protect the employee, that is causing the business to fail. The model has been pushed to the extreme and found to be lacking in the face of ever growing globalization. We cannot compete in the world with this model any longer. If the US bails the big 3 out, they will fail again. It isn't a matter of who had the better workers or who builds the better cars any longer--if you can't make a profit, you can't compete. Do not expect Americans to go out and buy lesser quality cars for the same or higher prices--it won't happen, especially since Detroit has taught Americans for decades now that it is not interested in the American people, only profits. I want them to succeed, but if it happens it will be the biggest miracle ever in the history of American business. Maybe, if we socialize healthcare and subsidize the big 3 heavily, they will succeed and the country will fail--not a happy prospect. Obama was right--change is coming--but it is not the kind of change that we were hoping for. The automotive industry must learn to adapt to change, or die. Right now it is gravely ill and may in fact die. The G can keep it alive for a little longer, but the long-term prognosis is not good unless we revamp the system from the ground up.

[blackchipjim]

Well mr.Aslan please explain the math of auto manufactering to me. My understanding from prior statements in the news that 3k goes to union benefits from every car manufactered. It costs the automaker 5k to make the car,assuming it's a 20k car where does the other 12k go to? Unions aren't outdated they are under attack by big business who sees them as a threat to their windfalls. Do you think the oil companies give big raises to the oil rig and refinery workers you are dillusionly and need serious help. I don't know what you do for a living but without union representation I would be asked to do my work quicker and without regard to public safety. The only thing big companies fear is paying everyone a fair wage with benefits. They have little regard for you or me, we are just numbers to them nothing more. blackchipjim

[aslan]

Originally Posted by blackchipjim

Well mr.Aslan please explain the math of auto manufactering to me. My understanding from prior statements in the news that 3k goes to union benefits from every car manufactered. It costs the automaker 5k to make the car,assuming it's a 20k car where does the other 12k go to? Unions aren't outdated they are under attack by big business who sees them as a threat to their windfalls. Do you think the oil companies give big raises to the oil rig and refinery workers you are dillusionly and need serious help. I don't know what you do for a living but without union representation I would be asked to do my work quicker and without regard to public safety. The only thing big companies fear is paying everyone a fair wage with benefits. They have little regard for you or me, we are just numbers to them nothing more. blackchipjim

So your position is that the big 3 are making plenty of money? What? Are they somehow hiding it, or dispensing of it all through bonuses and benefits to management? What is your point? Do you believe that the current billions in losses is a scam? The big 3 losses before the credit crunch amounted to $67 billion in the 3 years prior to June 2008. Between 2000 and June of this year, the big 3 let go 259,440 employees. This is not all about the recent credit crunch.

Unless we revert in some degree to a protectionist and isolationist policy, there is no helping the big 3 under the present business model. Presidents of both parties have accepted globalization unconditionally without regard to the devastation it wreaks on the middle class and certain industries. It makes one wonder whom they are listening to. They used to tell us that technology would save our middle class, but it seems they are just as quick to farm out technology to foreign countries as they have been with manufacturing. Globalization is such a dangerous threat to the American way of life that it should have been approached with the utmost care. It wasn't. To do so now would mean a dramatic change in American policy that no one is even hinting at. It's as if our country is being run by foreign interests who have no concern about what happens to the American people. We are fast becoming the serfs in a new feudal society.

[Brutus]

Originally Posted by aslan

Globalization is such a dangerous threat to the American way of life that it should have been approached with the utmost care. It wasn't. To do so now would mean a dramatic change in American policy that no one is even hinting at. It's as if our country is being run by foreign interests who have no concern about what happens to the American people. We are fast becoming the serfs in a new feudal society.

exactly, no one is saying jack squat. very little mention of this during the election either. everyone likes to spout off about high gas prices, and how much money is leaving the country... but these same c*cksuckers still shop at wal mart, buying chinese.

why doesnt the AFL-CIO crowd try recruiting some some of the cheap labor in china to join up with the union? talk about a lead balloon.
sheesh.



http://www.youtube.com/watch?v=2CaKFhYDe3M