As spokesmen from Cerberus decline comment on their failed investment in GMAC, the recent bailout has them looking to the back door to slip out.
Two years ago it was unknown to Cerberus Capital Management that their purchase of 51-percent stake in GMAC would stand on the brink of bankruptcy. But, with the Fed's forcing conditions upon Cerberus, this offers an easy out for the privately owned company.
As there were talks of a possible merger between General Motors and Chrysler, which Cerberus owns majority stake, now the option appears to be off the table.
One condition placed before Cerberus by the Fed's was that they would reduce their 51 percent stake in GMAC to 33 percent of total equity and 14.9 percent of the voting shares. Also, co-investors of Cerberus would take control of their own holdings with GMAC instead of through Cerberus' fund.
Reuters states:“It's a good thing for GMAC – it literally throws GMAC a lifeline,” said David Kukla, chief investment strategist on Mainstay Capital Management LLC. “So in that regard it's good for Cerberus and good for GM. They are stakeholders. GMAC desperately needed capital.”
According to someone with direct knowledge who is not authorized to talk publicly, says that the timetable and more details on the transfer will be provided early next year.
Tuesday, December 30, 2008
Cerberus Slips Out As GMAC Gets Bailout
Calls For Cease-Fire Muted With Israeli Strikes
There is a growing amount of international pressure toward Israel to adopt a cease-fire to “temporarily pause” the attacks on Hamas.
French Foreign Minister Bernard Kouchner proposed a cease-fire to Israeli officials that would last 48 hours to “get essential supplies into the territory, where 1.5 million Palestinians are running short of food, fuel and other goods.”
As Israel currently amasses ground troops along the Gaza border, Israeli Foreign Ministry spokesman Yigal Palmor said that “If a real proposal with credibility and guarantees is submitted to us, we will give it a very serious examination.” However, earlier in the day, the Interior Minister Meir Sheetrit told Israel Radio, as reported by The Washington Post:There is no room for a cease-fire . . . The Israeli army must not stop the operation before breaking the will of the Palestinians, of Hamas, to continue to fire an Israel.
This coming as rockets pounded down 25 miles into Israeli city Beersheba, reaching the furthest strike to date.
The Washington Post also states:“We have got to get a commitment from Hamas that hey would respect any cease-fire and make it lasting and durable,” [White House spokesman Gordon] Johndroe said. “Until Israel can get that assurance from Hamas, then you will not have a cease-fire that is worth the paper it is written on.” The scene in Gaza was the focus of intense diplomatic efforts Tuesday. Marie Okabe, the U.N. Deputy spokeswoman, told the Associated Press in New York that the Quartet group seeking to negotiate Middle East peace – the United States, the European Union, Russia and the United Nations – appealed to Israel and Hamas for an “immediate cease-fire.”
All this coming after the fourth day of relentless attacks, some 384 killed and more than 800 wounded.
Monday, December 29, 2008
General Motors: Here a Billion There a Billion
Billions of Federal injections came to General Motors today as they received one “bailout” after another, thanks mostly in part to GMAC.
Last Wednesday, GMAC had all but staked their claim of TARP funding by changing over to a bank holding company. With a deadline quickly approaching, and sweat beading from the brow of GM exec's, today the Treasury has allotted GM's financing arm $5 billion. However, the Treasury did not stop there. Another $1 billion would be lent to GM in order to help in the reorganization as a bank holding company.
Bloomberg reports:The fresh capital from the Treasury's $700 billion Troubled Asset Relief Program will enable GMAC to expand lending to car buyers, which in turn may help save GM.
The NYTimes states:The Treasury will buy $5 billion worth of preferred equity shares in GMAC, which used to be the financing subsidiary of General Motors and is now owned jointly by GM and Cerberus Capital Management, the private equity firm that owns Chrysler.
Both GM and Chrysler had been, and still are, working very hard in order for this to be finalized. Both companies had spokespeople saying they were in final stages of completing all the paperwork.
Currently, Reuters reports Ford Motor Co has said its liquidity was adequate for now and that it did not need a loan at this point. This comes at a time when both Chrysler and GM are dipping ever so deeply into their cash reserves.
Saturday, December 27, 2008
Bush Offers Green Light To Israel
As statements come from countries' top officials, President Bush urges Hamas to cease attacks but offers to Israel to avoid civilian casualties.
The recent attacks from Hamas have sparked numerous casualties as 200 people are reported to be killed and some 750 injured. Of these reports, included are women and children.
Fox News reporting on behalf of the AP states:Some of the Israeli missiles struck in densely populated areas as children were leaving school, and women rushed into the streets frantically looking for their children.
With these types of casualties, it has sparked a resounding worldwide response.
The BBC reports the following quotes:Spokesman for Ban Ki-Moon, UN Secretary General
“[He] appeals for an immediate halt to all violence [and reiterates] previous calls for humanitarian supplies to be allowed into Gaza to aid the distressed civilian population.”
Gordon Johndroe, White House Spokesman
“Hamas' continued rocket attacks into Israel must cease if the violence is to stop. Hamas must end its terrorist activities if it wishes to play a role in the future of the Palestinian people.
The United States urges Israel to avoid civilian casualties as it targets Hamas in Gaza.”
Spokesman for Javier Solana, EU Foreign Policy Chief
“We are very concerned at the events in Gaza. We call for an immediate ceasefire and urge everybody to exert maximum restraint.”
Russian Foreign Ministry statement
“Moscow considers it necessary to stop large-scale military action against Gaza [and] at the same time, we call on the Hamas leadership to stop shelling Israeli territory.”
As The Times reports how Hamas is committed to the destruction of Israel, Israel “sought to Isolate Hamas by squeezing Gaza economically.”
This coming as Bloomberg reports:Hamas leaders said the cease-fire failed because Israel refused to remove restrictions on the flow of food, medical supplies and other goods through Gaza border crossings.
Israel has offered its own agenda saying, “it will not speak to [Hamas] unless it recognizes the Jewish state, ceases all attacks and abides by past agreements signed by Israel and the Palestinian Authority.”
Thursday, December 25, 2008
Feds Saving GM Again as GMAC Becomes a Bank
Recently, the Feds "loaned" GM the funding neccesary to survive the economic downturn, and yesterday approved GMAC's request to become a bank holding company.
Using thier emergency powers, the Feds took a bold step in salvaging GMAC in allowing them to change to a bank holding company. Cerberus Capital Management LP, a majority owner of GMAC and Chrysler, along with GM are "required to reduce their stakes in GMAC."
The Wall Street Journal reports that:As a federally-regualated bank holding company, GMAC potentially gets access to Treasury rescue funds. It also gets access to the Fed's discount window - which lends to financial institutions agains collateral in emergency situations. And GMAC potentially will have the ability to issue debt guaranteed by the Federal Deposit Insurance Corp.
Also, Bloomberg reports:The change may make it easier for GMAC to apply for a government capital injection through the Treasury's $700 billion financial bailout fund. The New York Times estimated GMAC may get as much as $6 billion, citing a formula used by the Treasury.
While this doesn't guarantee that the Treasury will grant any TARP funds toward GMAC, it would certainly make it easier to inject funds at the already failing auto industry giant General Motors. Noting that GM and Chrysler recieved cash infusions from not only the U.S. Treasury, Canada intervened with a cash investment alsok; North America seems willing to go to any steps to not let the auto industry to fail.
This is supported when Bloomberg states: "GMAC joins more that 190 regional banks, commercial lenders, insurers and credit-card issuers seeking funds from the Treasury's bailout plan for financial firms."
The WSJ reports that:The next step for GMAC is a Friday deadline for bondholders to restructure $38 billion in debt. An earlier deadline for investors had already been extended several times, with GMAC even sweetening the terms of its debt exchange. The final deadline for the debt exchange is Friday.
Bloomberg reports that Julian Mann, a mortgage- and asset-backed bond manager at First Pacific Advisors LLC in Los Angeles, offers that "These guys should be in Chapter 11." And also, "We've now ogtten into the business of discouraging prudence and encouraging risky behavior and irresponsibility."
Wednesday, December 24, 2008
Ahmadinejad: Christmas Message to "Bullying Powers"
It is no secret as to how Iranian President Mahmoud Ahmadinejad feels toward the West - and with a broadcast to be shown in Britain, he spreads a Christmas message that is sure to raise an outrage by some.
In what is being described as a “controversial counterpoint to Queen Elizabeth II's traditional annual message,” Ahmadinejad will deliver a seasonal greeting on Britain's Channel 4.
The Associated Press reports that:In his recorded message, Ahmadinejad offers seasonal greetings to Christians and says he believes that if Jesus were alive, he would “stand with the people in opposition to bullying, ill-tempered and expansionist powers,” an apparent reference to the United States and its allies.
According to Ahmadinejad in a pre-released transcript of the broadcast, is quoted as saying:“If Christ were on earth today, undoubtedly He would hoist the banner of justice and love for humanity to oppose warmongers, occupiers, terrorists and bullies the world over.”
Ron Prosor, Israeli ambassador to London, offers that“(Channel 4) should give an unchallenged platform to the president of a regime which denies the Holocaust, advocates the destruction of the sovereign state of Israel, funds and encourages terrorism, executes children and hangs gay people is a disgrace.”
He also goes on record saying:"Outrage doesn't begin to explain it."
This certainly offers a differing view against Ahmadinejad, and one that paints him as a “warmonger, occupier, terrorist and bully.”
President Ahmadinejad's message is being broadcast to “offer (the) viewers an insight into an alternative world view,” according to Dorothy Byrne, who is the head of news and current affairs at Britain's Channel 4.
Tuesday, December 23, 2008
American Express Won't Leave Without Theirs
With the U.S. Treasury tapping into the $700 billion Troubled Asset Relief Program (TARP) to the sum of $350+ billion, the number was finally called for American Express.
While many businesses are struggling to stay operable, the nation's fourth-largest credit card company, American Express was sure to feel the pinch of the economic downturn eventually. However, help is on their side with the issuance of TARP funds to the sum of $3.39 billion.
This remarkable feat was not an easy one. With Reuters reporting:American Express had to go through a debt-for-equity swap in order to raise $1.5 billion to become a bank holding company -- said that in exchange for the TARP funds they would sell preferred stock and warrants to the U.S. Treasury.
At this time, along with all the other recipients of TARP bailout funds, they are opting not to explain how they would use the money – however, Bloomberg reports that:The Treasury's Troubled Asset Relief Program will buy preferred shares that pay annual dividends of 5 percent for the first five years and 9 percent in following years, American Express said. The company will also sell warrants that entitle the Treasury to buy common stock of up to 15 percent of the preferred purchase.
This lays out a program for the Treasury to get a gain on their investment in bailing out American Express, but it did little to help the shareholders at the time of the announcement.
With shares falling 46 cents to $17.96 by 4:15 p.m. and an infusion of cash from the Treasury, some if not many were left scratching their heads.
Photo courtesy of Bloomberg News.
Monday, December 22, 2008
The Book of Debt, chapter 11 for churches?
Financial problems are very abundant today with the likes of lending institutions and the automotive industry ‑ but now church organizations?
With mega churches on the rise, and smaller churches adopting a "build it and they will come" attitude to attract a larger congregation, the financial stress has now lent itself to churches. And that stress does not stop at that level, it reaches new highs when specialty lending institutions are forced to take their own drastic measures.
The WallStreetJournal reports:Church Mortgage & Loan Corp. of Maitland, Fla., another church lender, foreclosed on 10 church properties in the past couple of years. Unable to sell any of them, the company didn't have the funds to pay more than 400 bondholders the estimated $18 million it owes, says company lawyer Elizabeth Green. Church Mortgage filed for Chapter 11 bankruptcy protection in March.
Also reporting:Strongtower Financial of Fresno, Calif., says two of its 300 evangelical church borrowers are in default, compared with only one in the previous 15 years.
With a haunting trend of organizations tapping the government for help, some may look at churches to become the next in line for a "bailout" to fill their offering plates. While it may seem important to fill the offering plates, for some churches it has become more of an image problem than one that is centered on the gospel.
However, most religious persons will still seek refuge with their respectful source of scripture and relate to Matthew 6:12 saying "forgive us our debts, as we forgive our debtors."
Saturday, December 20, 2008
Automaker Bailout Rescue, The Presidential Way
With opening remarks stating. . .
For years, America's automakers have faced serious challenges –- burdensome costs, a shrinking share of the market, and declining profits. *
. . .many were stricken with hope that someone finally got it, and also that no financial help would be offered. However, things quickly turned sour when he said:
If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers. Under ordinary economic circumstances, I would say this is the price that failed companies must pay –- and I would not favor intervening to prevent the automakers from going out of business.
But these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action. The question is how we can best give it a chance to succeed. Some argue the wisest path is to allow the auto companies to reorganize through Chapter 11 provisions of our bankruptcy laws -– and provide federal loans to keep them operating while they try to restructure under the supervision of a bankruptcy court. But given the current state of the auto industry and the economy, Chapter 11 is unlikely to work for American automakers at this time. *
Disorderly bankruptcy? Since when was bankruptcy either orderly or disorderly? Any way you look at it, someone is bound to point fingers rather than accepting defeat. Without exception, Pres. Bush pointed his finger saying:
Additionally, the financial crisis brought the auto companies to the brink of bankruptcy much faster than they could have anticipated –- and they have not made the legal and financial preparations necessary to carry out an orderly bankruptcy proceeding that could lead to a successful restructuring. *
Offering a helping hand of sorts to the abysmal U.S. "2" when they haven't protected themselves, is but one thing: INSANITY.
So, what did the President have to offer?
A more responsible option is to give the auto companies an incentive to restructure outside of bankruptcy -– and a brief window in which to do it. And that is why my administration worked with Congress on a bill to provide automakers with loans to stave off bankruptcy while they develop plans for viability.
These loans will provide help in two ways. First, they will give automakers three months to put in place plans to restructure into viable companies -– which we believe they are capable of doing. Second, if restructuring cannot be accomplished outside of bankruptcy, the loans will provide time for companies to make the legal and financial preparations necessary for an orderly Chapter 11 process that offers a better prospect of long-term success –- and gives consumers confidence that they can continue to buy American cars. *
Seemingly somewhat contradictory to a statement made earlier in his address, stating:
American consumers understand why: If you hear that a car company is suddenly going into bankruptcy, you worry that parts and servicing will not be available, and you question the value of your warranty. And with consumers hesitant to buy new cars from struggling automakers, it would be more difficult for auto companies to recover. *
American consumers understand that this industry has failed, due simply to a failed business plan and the high demands that the Union has placed on them. Americans also understand that if they were to perform an "orderly bankruptcy," it would allow these companies to restructure and reorganize; keeping a level of "confidence" among consumers.
So, the next thing to examine would be: "Where is the $13-$17+ billion coming from? What are the terms of this 'loan'? and When does it have to be paid back?"
[It] will be drawn from the financial rescue package Congress approved earlier this fall. The terms of the loans will require auto companies to demonstrate how they would become viable. They must pay back all their loans to the government, and show that their firms can earn a profit and achieve a positive net worth. This restructuring will require meaningful concessions from all involved in the auto industry –- management, labor unions, creditors, bondholders, dealers, and suppliers.
In particular, automakers must meet conditions that experts agree are necessary for long-term viability –- including putting their retirement plans on a sustainable footing, persuading bondholders to convert their debt into capital the companies need to address immediate financial shortfalls, and making their compensation competitive with foreign automakers who have major operations in the United States. If a company fails to come up with a viable plan by March 31st, it will be required to repay its federal loans.
The automakers and unions must understand what is at stake, and make hard decisions necessary to reform, These conditions send a clear message to everyone involved in the future of American automakers: The time to make the hard decisions to become viable is now -– or the only option will be bankruptcy. *
While this puts an enormous amount of stress on the plate of the Big "2", it still leaves a glimpse of hope by the tax-paying Americans who are footing this automaker bailout rescue. It also leaves many people wondering what is next, and if they themselves will get a "bailout." Some are still left wondering the difference between an "orderly" vs. "disorderly" bankruptcy. Then again, everyone is forced to play the "wait, watch, and see" game.
* - RealClearPolitics
Friday, December 19, 2008
Thursday, December 18, 2008
Build Bridges, Not Walls
Kansas City's first black mayor, elected in 1991, Rev. Emanuel Cleaver II posted an article with the Washington Post. His opine was to curb further "walls" of race, and to help with the idea to "build bridges."
In all he's efforts to help aid in the curbing of race relations, using terms with the like of "brothers and sisters of hue," and "people of color." Certainly, in todays society one would "understand" that with the election of a "black" President, we as a nation could curb the idea of lingering race issues. However, the Rev. Emanuel Cleaver continually brings this issue to the forefront in this article.
As posted on WashingtonPost:
"I know something about what Obama faces. In 1991, I was elected Kansas City's first black mayor. I and more than 400 other African American mayors who served during the most diverse period in the political history of America's large cities experienced a similar, and understandable, unreasonableness from brothers and sisters who saw in our election an opportunity at last to get a slice of the American pie. Obama will fall short of fulfilling the considerable hopes and dreams of the minorities who supported him, just as we could not fulfill those of ours.
To be sure, he will do all he can. Just as the black mayors of the '90s appointed able blacks to positions that were previously beyond their reach, championed capital projects in often-ignored and ailing parts of their cities, and included minorities in municipal economic opportunities, President Obama will certainly be attentive to the unique needs of the nation's neglected. Clearly, the goal of the Obama administration will be to destroy, not supervise, any government impulse to favor one group of Americans over others.
But brothers and sisters of hue, we must be candid: Race relations in America are far from sublime. Despite Obama's election, there are still Americans who, like the ole Missouri mule, are awful backward about going forward. It would be absurd not to expect high-profile acts of racism to continue to occur, just as always. Obama's administration won't have the power to prevent them; no administration could. Yes, such situations will now be addressed by an Obama-appointed attorney general, but they also must continue to be dealt with by civil rights organizations and, frankly, by each of us. The duty of the many cannot become the responsibility of the one, even if the one is a black president.
Obama surely knows that he owes enormous gratitude to the huge numbers of black Americans who toiled in his campaign and came out to the polls to help to elect him. I think every African American supporter of Obama can safely assume that Obama will do everything within his power to create a level playing field for all Americans by ensuring that they have a government that is just and fair."
He then goes on to say:
Most of us thought that we would never see a black president in our lifetimes. Our coming together this past November was a beginning; staying together through the tough times ahead will be progress; and working together to build bridges, not walls, will be the sign that we are creating a change all can depend on.
Well, Mr. Cleaver is correct in thinking that most thought we, namely America, would not see a black President. However, one can't help but question who he sees should "stay together to build." What is it that needs to be built? An understanding? For the most part, most if not all Americans are looking forward enough not to dwell on the past and curb the highly heated race talk.
Certainly, it is true, we must "build bridges, not walls."
Monday, December 15, 2008
Vidcast - Madoff Made Off Big
Thursday, December 11, 2008
Automaker Bailout Gets House Approval
To the sum of $14 billion, and a House vote of 237-170, the "bridge loans" to the automakers was passed. However, it is said that it will face tougher opposition by Senate Republicans.Opposition is not limited to only Republicans, House Democrats are also opposed to this bill. Fox News reports that:
Democratic Sen. Max Baucus of Montana announced he was against the measure because of a provision to bail out transit agencies. The bus and rail systems could be on the hook for billions of dollars in payments because exotic deals they entered into with investors -- which have since been declared unlawful tax shelters -- have gone sour.
The voice of some House Republicans, Fox News reports that:
House Republicans swiftly voiced their opposition and called for a plan that would instead provide government insurance to subsidize new private investment in the Big Three automakers, demand major labor givebacks and debt restructuring at the companies, and encourage them to declare bankruptcy.
With an encouragement to declare bankruptcy, $14 billion of taxpayer money would not be put into jeopardy to keep these failed business models afloat. However, many would speculate that, come March 2009, they may opt for that choice if they provide no clear progress.
But, then again, most of the House members felt it was neccesary to pass this Bill to claim a pay-raise for federal judges that was written in.
A copy of the Bill is provided here:
Photo Courtesy of AP
Wednesday, December 3, 2008
Monday, December 1, 2008
Conservative Intelect: What is Your Thought?
Cross posted at: Conservative Badlands and Rebuild the Party
In a work titled "Prejudice and Abstract Political Theory in Edmund Burke's Reflections on the French Revolution", Nick Russo observes:
'He explains that English philosophers, or, "men of speculation, instead of exploding general prejudices, employ their sagacity to discover the latent wisdom which prevails in them," essentially serving as a confirming and stabilizing force on political thought. This model for healthy political thought can be understood through an evolutionary scenario. Biological systems, such as ecosystems and individuals, remain the same, in a state of equilibrium, until something goes wrong, causing the system to evolve or adapt to ensure its survival. Similarly, Burke finds nothing wrong with the status quo political system if it is providing a better environment than its lack could provide.'
It seems that, for some reason, many people have a prejudicial idea on what conservative is. In our own "state of equilibrium," everything, as we see it, seems calm and unprovoked. Now that our "something [has] gone wrong," many are left learning to swim, in an infested pool, without ever having a true understanding, not only of where we have been, but where we are headed.
So, that brings us to know, as your own understanding, what is Conservative?
Wednesday, November 26, 2008
Automaker Bailout Vidcast
The Big 3 auto execs went before Congress recently begging for money, and were sent packing. How will they get back?
Tuesday, November 18, 2008
Henry Paulson: Timeline for Fraud *UPDATE-1*
At the start, there was to be three sums of cash that would be used. The first being the largest at $350 billion, the second being $250 billion, and the last of $100 billion to be okayed with Presidential approval. The first sum of money has gone rather quickly.
Henry Paulson pushed $250 billion on banks, and of that amount $125 billion was forced on banks that didn't want the money.
Also, of those banks was Goldman Sachs that was led by Mr. Paulson.
After that cash infusion, he gave AIG $40 billion. This came under great scrutiny after the higher-ups at AIG took vacations after receiving their infusion.
This has left Mr. Paulson with only $60 billion left in the first round.
The Wall Street Journal is reporting that last week, Paulson announced he would not use the Troubled Asset Relief Program (TARP) to purchase bad assets. This, however, was how Mr. Paulson sold his fraud-ridden program to the U.S. Government.
Now, over the past few days the big 3 automakers have been lobbying for some of the bailout money asking for $25 billion in what they call "emergency loans."
Certainly one would think Henry Paulson would be willing to suck up this problem also, however that is not what he thinks. Bloomberg going on record that Mr. Paulson said "his $700 billion financial rescue plan isn't intended for manufacturers."
Picture courtesy of Reuters
Sunday, November 16, 2008
U.S. Auto Maker Bailout Talks
With all the recent news about the bank bailout, it was only a matter of time before others tried to seek out a handout. Currently, the big 3 -- General Motors, Ford Motor Company, and Chrysler -- are out in full force asking for a "loan."
While there are many ideas circling around about who is to blame for the troubling of the big 3, one idea points to the union. So, what are some of the things that the UAW has said, and what is being said now?
The UAW 
The history of the UAW is the story of ordinary working men and women accomplishing extraordinary things through the strength of their solidarity and the power of their collective action.
The UAW, however, is more than a collective bargaining agent -- we are a social movement committed to dealing with the problems of all people.
So, what is their "collective bargaining," and what have they bargained for?
The collective bargaining process gives workers power in decisions that affect their everyday lives on the job as well as the economic security of their families.
Collective bargaining has been called the "art of the possible" -- and the UAW, more than any other union, has pushed the boundaries of what is possible in collective bargaining.
For example, the UAW negotiated the first fully-loaded pension plan, the first employer-paid health insurance plan for individual workers, the first employer-paid health insurance for retired workers, the first cost-of-living adjustments (COLA), and the first Supplemental Unemployment Benefit (SUB).
As impresive as it is, the UAW's success record at the bargaining table is only part of the story. From our earliest days, the UAW has been a leader in the struggle to secure economic and social justice for all people. The UAW has been actively involved in every civil rights legislative battle since the 1950's, including the campaigns to pass the Civil Rights Act of 1964, the Voting Rights Act of 1965, the Fair Housing Act, the Civil Rights Restoration Act of 1988 and legislation to prohibit descrimination against women, the elderly and people with disabilities.
While the UAW does have a remarkable record for the good, it could certainly be agrued for the bad. Especially looking at their support for the Fair Housing Act. They have long supported the idea that if you can't afford the house you want, you should get it any way. Which has ultimately lead this country, and world, to an economic crisis. So, what else have they fought for?
The tentative agreement, reached at 3:05 a.m. Sept. 26, delivers solid economic gains for active and retired members, despite repeated attenpts by GM to impose harsh takeaways.
The agreement will deliver more than $13,000 in economic gains for a typical UAW member, including a $3,000 signing bonus, two 3 percent lump sums and a 4 percent lump sum.
Active workers will see their comprehensive health care coverage continue, with dental, hearing and other benefits improved. Retired workers will have their health benefits secured by a Voluntary Employee Beneficiary Association (VEBA), prefunded by GM with $29.9 billion in cash and other assets. The fund can only be used to pay retiree health benefits, and will remain solvent for decades regardless of the financial condition of GM.
Knowing then that GM was looking at possible problems, the UAW found a way to secure funding whatever GM's financial status. Considering the $25 billion they seek out now, one would look towards the UAW to conceed this funding to ensure their employment.
Mr. Ron Gettelfinger
Recently, Ron Gettelfinger -- the head of the UAW -- decided to try the blame game.
The WSJ reported that:
The president of the United Auto Workers union said the dire financial troubles of the U.S. auto makers is the result of this year's spike in gasoline prices and the meltdown on Wall Street, not missteps by management or high labor costs.
Mr. Gettelfinger also urged Congress to provide financial help to prevent General Motors Corp., Ford Motor Co. or Chrysler LLC from sliding into bankruptcy protection.
Although GM Chief Executive Rick Wagoner has come under heavy criticism, Mr. Gettelfinger said a change in management is not needed. "It is a stretch to say that management is responisible for all the things happening now that no one anticipated or expected," he said.
That's a shift from the past when union rhetoric typically pointed the finger at management mistakes as the main reason for Detroit's troubles.
However, now it seems that the finger pointing is going the other way, and not toward where the problem is. Certainly the finger could point from the UAW to GM, but it would be pointing right back from GM to the UAW. The UAW has fought for many perks of the job, including wages and benefits both employed and retired. How is it that the UAW says that this is none of their doing, when they are a major part of the problem? Striking for a $29+ billion benefit package would certainly be something that the UAW could put on hold when they are out lobbying Congress for $25 billion, but Mr. Gettelfinger has different plans.
The union will not make concessions in order to seal a deal for governmental aid, Mr. Gettelfinger said, He cited significant concessions already made by the UAW in its 2007 contract with the auto makers. They include the establishment of a separate health-caree trust for retured auto workers and the introduction of a two-tiered system wages that allow the Big Three to hire new workers t significantly lower wages and without fixed pensions.
With Mr. Gettelfinger, with the backing of the auto union, admittedly not conceeding to helping the BIG 3, they could be the ultimate reason for Congress not "bailing" them out.
GM North American Vice President, Mark LaNeve
Begging the GM dealers and their employees for help in contacting Congressional Reps and Senators, this certainly shows how desperate GM and its executives are. Take a look at the following pictures of what is being distributed by GM to its dealers and their employees: 
The Word on the Street
In a forum post at DealersEdge, one member who calls his/herself Whiner poses a post titled: Yes, Bail 'em out -OR- No, let 'em fail. Many members of the forum weigh in with their comments, and here is what some of them had to say:
possum - Notice how you can't buy a TV or a stereo or much of anything made in the US anymore? If you COULD buy an American made 19" TV it would cost $5,ooo. The auto industry will go the same way. The unions are the cause of this. GM, Ford and Chrysler cannot sell a car for $30k that costs them $35k in production, warranty, retirement and health benefits. The Unions have priced themselves out of a job.
pjpeery - some assistance should be rendered to the auto companies ..with guarantees that they change the way they do business. i agree with that .. but what i hve a problem with is giving the uaw 25 billion dollars so they cn continue with their gold plated benefits ..
moparpartsman - I think the government should make the loans but I believe they should appoint an auto industry czar or oversight board to keep the manufacturers in line. Unions suck the life out of the automkers and perhaps the government can address this if they oversee them while the loans are repaid. -- If any of the American automakers file bankruptcy this will be the end of the road for the American car. THe public will lose all trust in domestics for fear that their warranty or service will be affected and the resale value will tank.
sallen1 - The problem with the "auto-czar" is that the govt will look to protecting the union first. They dare not tread on their biggest contributors.
texaslp - I don't get how the union workers can be so shortsighted. Good money and benefits now will be pretty useless to you when you put your company out of business.
wwfsmd? - Does anyone here really think that GM is going to go out of business? Give me frickin' break. After years of miss- management, not forcasting the consumers needs and making concessions to the unions the chickens have finally come home to roost. Has anyone priced a new Escalade lately? How can Joe Sixpack afford a 70k price tag? Who is the vehicle targeted for? Does GM build a better vehicle now than in the past? Yes, but it is still 10 lbs of sh*t in a 5 lb bag. -- They need to go into bankruptcy and restructure just like any other company that falls on its b*tt. Then they can get rid of all the unions and Fat Cats at the top (Who by the way, are not car guys in any sence of the world, unlike Iaccoa). Then maybe they can get back o making a vehicle that hte customer can afford and turn a profit. Does this mean that some people are going to lose their jobs and some dealers going to close? Absolutel. But that's life in the big city, stop whining and find another job. Nothing in the Bill of Rights guarantees you a job. GM may come out of this smaller and leaner, but that is what needs to happen. Then they will be in a position to compete with the Japanese, who by the way are not bailing out their auto makers. -- As far as unions go, the golden age is over and has been for a long time. They need to go away yesterday and the members need to be paid a realistic wage and basic benefits.
Tazz121 - I understand that there was a time and place for the unions, but that time is gone. Ifeel they are holding us all back form competing in the world economy. When is the last time you saw anything that said made in the USA? My 10 year old told me the other day that she would like to go to China some day. I asked her why and she said bacause that is where everything is made.
Certainly, there is a growing them with the members posting to the forum, and that would be the UNION.
If the unions were forced out, this would allow a total restrucuring of the BIG 3, in all aspects of business. They would be better positioned to compete with other auto makers with price, but more importantly product. Without the over-inflated costs of the vehicles, the BIG 3 would be poised to far surpass the foreign auto market. That is what the auto industry needs, as well as this country.
Wednesday, November 5, 2008
Saturday, November 1, 2008
We'll Have an International Crisis? - Part 1
Behind closed doors with supporters of Barack Obama, Joe Biden made a statement that caused a deal of those supporters to worry. Asking them for their support, what exactly did Joe Biden say and what type of things could he be speaking about?
Joe Biden said, "Mark my words. It will not be six months before the world tests Barack Obama like they did John Kennedy. The world is looking."
Biden then continued, "Remember I said it standing here, if you don't remember anything else I said. Watch, we're gonna have an international crisis, a generated crisis, to test the mettle of this guy. And he's gonna have to make some really tough -- I don't know what the decision's gonna be, but I promise you it will occur. As a student of history and having served with seven presidents, I guarantee you it's gonna happen."
As strange as it sounds, the world is looking, watching, and waiting. Largely, it is said that Obama's questionable policies and ideas would diminish the value of the dollar beyond the idea that America would be able to maintain its superpower status. Those countries that are on the heals of that status would most likely be Russia and China.
Recently, at a Russo-Chinese forum, Putan said:
"At the moment the world which is based on the dollar is suffering serious problems ... The situation on the global financial markets remains difficult.
In such conditions, we need to think about improving the payments system for bilateral trade, including the use of the national currencies."
Also in attendance at the forum, Chinese Premier Wen Jiabao said:
"We need to diversify the global currency system, to support its stability through the use of different currencies."
Vladimir Putin suggests, that instead of trading with the dollar, it trades with the yuan and the rouble. This is certainly an attempt for the two countries to team up and overthrow the superpower status of America. Many would argue that it is absurd to change the currency with which the world markets trade with, considering many countries including China hold the largest portions of their reserves in dollars.
In another exercise of power, Russia and China along with Iran and North Korea have been working on arming their countries. Especially been working on developing their nuclear force by way of new land- and sea-based weapons.
Defense Secretary Robert Gates, in a speech to the Carnegie Endowment for International Peace said:
"Currently, the Unites States is the only declared nuclear power that is neither modernizing its nuclear arsenal nor has the capability to produce a new nuclear warhead.
"To be blunt, there is absolutely no way we can maintain a credible deterrent and reduce the number of weapons in our stockpile without resorting to testing our stockpile or pursuing a modernization program.
"There is no way to ignore efforts by rogue states such as North Korea and Iran to develop and deploy nuclear weapons, or Russian or Chinese strategic modernization programs.
"As long as other states have or seek nuclear weapons -- and potentially can threaten us, our allies and our friends, then we must have a deterrent.
"Try as we might, and hope as we will, the power of nuclear weapons and their strategic impact is a genie that cannot be put back in the bottle -- at least for a very long time.
"Let me be clear: The program we propose is not about new capabilities -- suitcase bombs or bunker-busters or tactical nukes. It is about safety, security and reliability. It is about the future credibility of our strategic deterrent.
"We must take steps to transform from an aging Cold War nuclear weapons complex that is too large and too expensive, to a smaller, less costly, but modern enterprise that can meet our nation's nuclear security needs for the future."
With an aging American nuclear force, and a renewing of these rogue states' nuclear force, certainly this would be seen as a viable threat. The American force is almost 20 years old, and with today's growing technology, it certainly paints a picture that the U.S. force is growing obsolete.
It should be of great alarm when our allies and enemies alike are expanding, updating and arming their nuclear forces.
In part 2, we will take a closer look into these countries, and what and how they have advanced their nuclear weapon capabilities.
Friday, October 31, 2008
Breast Cancer Awareness
At the close of the month of October, for many there is much to be sad about. October is widely known as Breast Cancer Awareness Month.
Awareness is key. But what else is key, is to be aware of those who are the "silent sufferers." Those being the ones who are not diagnosed with the disease, but are helping someone who is diagnosed. Those are the "silent sufferers."
At some point in life, everyone knows someone who is suffering, either with or without breast cancer. But what most people forget about being aware, is that both men and women suffer.
That is correct. Men suffer from breast cancer along with women. Although they only make up around 1% of all cases, the majority of those male cases are very severe.
Also severe, is those that suffer along with their loved ones.
Personal side to the story:
My mother was diagnosed with breast cancer, and also lost the fight after nine hard years. She was the one who went through all the physical pain and suffering, but my father, wife, son, and myself all suffer mentally. It has been four years since her passing.
While I do not ask for your sympathy, I do ask for you to be aware. Be aware that men are not immune from breast cancer. Be aware of how to check yourself, both male and female. Don't be afraid to ask your doctor if you suspect something, and don't hesitate to ask your partner for help.
If you would like more info, please visit:
The Susan G. Komen Foundation or BreastCancer
Help the cause, and make someone else aware!
Wednesday, October 29, 2008
GM Merges With Chrysler!
Briefly, it is or will be reported soon that GM has bought and merged with Chrysler via Cerebus. Here are some notes as everything is still not in its final state:
GMAC sought out to change its finance and mortgage company to a holding company. This would allow GMAC to receive some of the $700 billion bailout money. Asking for the money would help fund their purchasing power into Chrysler.
The AssociatedPress is reporting that GM lobbied for around $10 - $15 billion to help with keeping the two companies funded as well as purchasing power.
Here is where this reporting gets tricky! Word is that the merger talks are complete. The word is also that Chrysler would be keeping the Jeep line, their mini-van line, the new Dodge Ram, and would be getting a large sum of money that has yet to be determined. While these talks have not largely been made public, this information cannot be linked to any sources.
There will certainly be more to follow soon.
Tuesday, October 28, 2008
Joe Biden: A Day In The Life
This is a comedic look into the daily interactions with Joe Biden.
At a job interview:
Since Joe Biden is running for 2nd in command of this nation, it is rather fitting that he undergo a "job interview." So here are some snippets of how the interview went down.
"What would you bring to this nation to add value to it?"
"Are you kidding? Is this a joke?"
"No. I want to know what you would add to this nation."
"Who is writing your questions?"
"I wrote these questions. If we were to elect you, we want some answers first."
"Are you kidding?"
At a lunch date:
After the exhuasting interview process, Biden was hungry and decided to get a bite to eat at a local steak house. Here is some of what was said between the waiter and Joe.
"Can I get you two something to drink?"
"Is this a joke?"
Finally after the drinks arrive, the waiter took the order and asked "How would you like your steak cooked?"
"Are you kidding? Who's writing these questions?"
At the doctor's office:
After enjoying lunch, at the taxpayers expense, biden had an appointment with his doctor about an "issue" he had experienced. (This is for comedic purposes and we are not implying that this is true.) So, what did they discuss?
"Are you experiencing symptoms of Erectile Dysfunction?"
"Is this a joke?"
"No Mr. Biden. This is a serious matter! Have you ever experienced any symptoms relating to ED?"
"Who is writing these questions?"
At the bank:
His final agenda item was to go to the bank. How did that go down?
"Hello, can I get some help over here?"
"Is this a joke?"
"No!"
"And who are you?"
"I'm Joe Biden, and I need to make a deposit."
"Are you kidding?"
"No?"
"Are you wanting this to be redistributed evenly?"
"What!?!"
"Hey guys! Quick! This guy wants to give us HIS money!"
"NO, NO, NO! That's MY money, and YOU can't have it! I lobbied hard for it."
Now, while this story is pure satire, it illustrates how Joe Biden's words can be used in everyday situations. Just like Barack Obama's idea for wealth redistribution!
Monday, October 27, 2008
Obama: Change We Can(not) Believe In
While out campaigning in Canton, Ohio, Barack Obama wanted to remind those there why he is running for office. As reported by the Associated Press:
"In one week, we can choose hope over fear, unity over division, the promise of change over the power of the status quo," Obama said, "In one week, we can come together as one nation, and one people, and once more choose our better history. That's what's at stake."
However, what Obama fails to understand is what he says.
Hope over fear? Hope over fear is when the people know they are electing someone who will not side with Iran's Mahmoud Ahmadinejad against Israel.
Unity over division? Unity over division is when the people are not coerced into race bating by the electorate.
Choose our better history? Choosing a better history is knowing that they are electing someone who will not "spread the wealth around." Choosing a better history is knowing that they are not electing someone who will not silence free speech or challenge the 2nd amendment.
"The change we need isn't just about new programs and policies," Obama said to a roaring crowd at Canton's civic center. "It's about a new attitude, it's about new politics -- a politics that calls on our better angels instead of encouraging our worst instincts."
The politics of our better angels would not allow us to sit in a church with a preacher like Rev. Jeremiah Wright for 20 years. Our better angels would not allow us to associate with people who target our own country like William Ayers or who would them help start our career.
New politics? The spreading of the peoples wealth is not new politics. It's the politics of the past of those like Karl Marx.
"Obama spoke of restoring a sense of higher purpose to the country. He kicked up patriotic echoes of his 2004 speech at the Democratic National Convention that put him on a national stage. He said America is about "seeing the highest mountaintop from the deepest of valleys."
Just not getting it again, Obama fails to understand the mission of this nation. That is, the higher purpose of the country is to already be at the highest mountaintop looking up. While it may be okay for Obama to take this country to all time lows, that might not be what the people want.
The people don't want to look from the bottom of the valley up at countries like Russia, North Korea, or Iran. The people don't want to look from the bottom for a check to come by way of wealth redistribution. The people don't want to see their investments deteriorate for fear of tax increases. The people don't want to socialize the markets or socialize health care. The people don't want their rights of free speech and the bearing of arms violated. They also don't want to fear the judges that would be appointed.
The people should not fear looking up from "the deepest of valleys," but should be optimistic in restoring the country from the highest mountaintop looking up.
Friday, October 24, 2008
FREE SPEECH: TAKE TWO!
UPDATE!!!! : This is a copy of a previous post. It was removed by RCP!
For many years now, Freedom of Speech has been tried and tested. Everyday it is tested in schools, courts, and most recently the media.
Wikipedia defines free speech as: "The freedom to speak freely without censorship or limitation."
In the blog world, RealClearPolitics is used and searched through daily by many looking to express their right to free speech. So how does RCP and free speech start an impending war against each other?
Recently, two posters have been voicing their concern to RCP for either not allowing their posts to be posted or allowing their posts only to remove them without any communication to the poster. Specifically, who are these two?
Roger's letter to RCP alleges that:
There have been allegations made, mostly rumors, but enough of them to be troubling, that RCP is actually being monitored by an Obama agent, and that if anything overly critical about the Obamas is posted to RCP it will be immediately taken down.
In Mr. Gardner's fight to keep free speech alive, he noticed that a post that questions Obama's birth certificate legitimacy had been one of those removed. In response, and defense of independantvoter, he has links posted on his site and re-submitted to RCP.
There could be much made regarding Obama's legitimacy with his birth certificate, and if RCP is being monitored by an Obama agent, one would wonder.
There has been great concern regarding this very issue, and RCP has a right as a media outlet to allow these posts to be allowed. As citizens of this country, we have a right to know who we are electing and whether they are Constitutionally allowed to be elected. With Obama failing to produce proper evidence, it is of great concern to know.
Please take the time and sift through the compelling case against Barack Obama using the links provided earlier. This is vital to the protection of America as a nation and the people there of.
If you are a victim in the war against free speech, please feel free to post comments, concerns, and links. Freedom of Speech is a divine gift and should not be tested.
Thursday, October 23, 2008
FREE SPEECH: Already at War!
For many years now, Freedom of Speech has been tried and tested. Everyday it is tested in schools, courts, and most recently the media.
Wikipedia defines free speech as: "The freedom to speak freely without censorship or limitation."
In the blog world, RealClearPolitics is used and searched through daily by many looking to express their right to free speech. So how does RCP and free speech start an impending war against each other?
Recently, two posters have been voicing their concern to RCP for either not allowing their posts to be posted or allowing their posts only to remove them without any communication to the poster. Specifically, who are these two?
Roger's letter to RCP alleges that:
There have been allegations made, mostly rumors, but enough of them to be troubling, that RCP is actually being monitored by an Obama agent, and that if anything overly critical about the Obamas is posted to RCP it will be immediately taken down.
In Mr. Gardner's fight to keep free speech alive, he noticed that a post that questions Obama's birth certificate legitimacy had been one of those removed. In response, and defense of independantvoter, he has links posted on his site and re-submitted to RCP.
There could be much made regarding Obama's legitimacy with his birth certificate, and if RCP is being monitored by an Obama agent, one would wonder.
There has been great concern regarding this very issue, and RCP has a right as a media outlet to allow these posts to be allowed. As citizens of this country, we have a right to know who we are electing and whether they are Constitutionally allowed to be elected. With Obama failing to produce proper evidence, it is of great concern to know.
Please take the time and sift through the compelling case against Barack Obama using the links provided earlier. This is vital to the protection of America as a nation and the people there of.
If you are a victim in the war against free speech, please feel free to post comments, concerns, and links. Freedom of Speech is a divine gift and should not be tested.
Monday, October 20, 2008
Obama Going Against His Words?
As originally posted for The Conservative Badlands
Saturday, October 18, 2008
The Real Issue: Greed or the American Dream?
History has shown us that people, in times, will reshape a nation just like our founding fathers. Our fathers before us left a nation that led its people into a time of turmoil, to come to what we know as America. This country was founded on the principle of the American Dream. But, for many years now the American Dream has been lost, only to be driven and replaced by greed.
In Edmund Burke's speech on conciliation with America said, "By adverting to the dignity of this high calling our ancestors have turned a savage wilderness into a glorious empire, and have made the most extensive and the only honorable conquests - not by destroying but by promoting the wealth, the number, the happiness of the human race."
In the progression from the American Dream to the principle of greed, it may help to define the two. Wikipedia defines the American Dream as a "belief in the freedom that allows all citizens and residents of the United States to achieve their goals in life through hard work." They define greed as,"the desire to aquire beyond the needs of the individual, especially when this accumulation of possession is the selfish desire for or pursuit of money, wealth, power, or other possessions."
For many years, the American Dream is what separated this nation from others. This idea is what has drawn so many people to America. The simple idea that one could achieve thier dreams and aspirations, whatever they may be, without protest. Now, while both the Dream and Greed require work, it is the difference in thought of why and what that work is for.
The work for the American Dream is hard work. In a famous lecture by Frederick Douglass titled Self-Made Men, he says that "there is nothing good, great or desirable. . .that does not come by some kind of labor," namely "WORK! WORK!! WORK!!! WORK!!!!" While it does take work to satisfy our greedy desires, it is why that makes the difference.
Greed is driven by the desire to obtain in excess, while the American Dream is just the desire to obtain. On both sides of the economic turmoil facing today, that is where one needs to look. The desire to obtain in excess! That excess is monetary. Both sides were driven by greed. The banks and lending institutions were willing to do anything to loan out money, and there were many people willing to sign on the dotted line. With wanting to make a buck, these companies were told to deregulate by the government and to basically lend to all. And those who fell prey, were trying to achieve their "American Dream."
The blame goes both ways. By those trying to achieve, and those offering. Far too many people aren't willing to accept the blame for the mess that this nation has found itself in. The pursuit of the American Dream has led many to greed. Once a prosperous nation, now a nation in debt.
Now, revisiting what Burke said about "promoting wealth [and] the happiness of the human race." That is synonymous with the American Dream, and also with greed. The human race is very desirous to be happy and also to increase themselves on all levels. But it is the right and the wrong with their desires.
In a debate on October 15 in 1858, Abraham Lincoln said, "It is the eternal struggle between these two principles -- right and wrong -- throughout the world. They are the two principles that have stood face to face from the beginning of time. . ." Although one is right in their choice to pursue the American Dream, it is wrong if that Dream is led by greed.
There is a "right and wrong" that goes along with everything, but one must know and understand the consequences with greed and how that greed can lead and overcome the Dream. Acceptance of right and wrong must be admitted from both sides, whether that be the lender or the lendee. While there is a great feeling in the accomplishment of the American Dream through hard work, there is a greater sense through which how hard that work is.
So, with all the finger pointing going on today and no one willing to accept the blame, the real issue comes down to the American Dream or GREED.
Wednesday, October 15, 2008
Final 2008 Presidential Debate Notes
Obama falls back to talking points about his "95% tax cut". He tries to spin what he said to Joe the plumber.
McCain discusses Obama's plan about spreading the wealth.
Obama falls back on "95% tax cut". Says that the rich can afford to pay a little more in taxes.
McCain wants to cut taxes to encourage businesses.
Obama says that he would make "adjustments" to the bailout bill. (Why didn't he press for changes when it was debated before it was passed?) Wants to cut programs, but invest more in others.
McCain wants energy independence that would also create jobs. Govn't spending has gotten out of control. Discusses and lists some programs that would get cut, and discusses how he would fight for line item veto and earmarks.
Obama wants to work on earmarks now too.
McCain says he can fix the budget. Tells Obama that if he wanted to run against Bush, then he should have run for office four years ago. Talks about what Obama voted for that himself voted against. McCain lays it out against Obama about the differences with Bush.
Obama talks about things he supports. Tries to go back to Bush.
McCain talks about some things he voted for.
McCain hammers Obama about how he wanted to do town hall meetings and Obama said anytime and anywhere but never did. Talks about how Obama doesn't repudiate any remarks made about McCain/Palin. Talks about how Obama wanted certain campaign funds if McCain would but didn't do what he said.
Obama tries to say that 100% of McCain's ads have been negative. Talks about how we should only talk about what is pressing right now, and then says that he wants to talk about a long list of things in the next three weeks.
McCain talks about Obama's attack ads and how much he spends on ads.
Obama talks about comments made at Palin rallies. Talks about how cynical the people are.
McCain says that we need to know about Ayers, ACORN.
Obama runs around the issue trying to talk about Ayers. Talks about ACORN trying to say that he has had nothing to do with them. Tries to talk about who advises him.
McCain still hammering Obama about Ayers and ACORN.
Obama talks about Biden saying how good he is and how hard he has worked his whole life.
McCain talks about Palin and how she is a reformer who will help clean out the good 'ol boys in Washington.
Obama doesn't answer whether she is ready to take over the presidency.
McCain says he thinks Biden would be capable but talks about their differences. Hammers Obama about how much he would spend.
McCain says can eliminate dependancy from Middle Eastern and Venezuala oil in first term. Talks about energy independence.
Obama thinks he can do it in ten years. Falls back on talking points. Says is for free trade.
McCain talks about how Obama talks about looking at drilling but doesn't say he would drill. Talks about how free trade with Columbia is a no brainer and that they are trying to help us.
Obama stutters his way through how we should stand up to other countries. Talks about auto industry and thier tough times. Talks about how govn't should help auto industry.
Obama gives talking points about health care. Says health care will cost on the front end.
McCain lays out points that he would do to help prevent high costs. Still wants to know what the fine is for not having health care under Obama plan.
Obama says fine is 0 with small businesses and will give tax credits but doesn't talk about big businesses.
McCain hammers Obama's plan. Talks about how he wants the people to have the power and choice in picking their health care plan, not the govn't.
McCain thinks Roe v. Wade was a bad call and should be left to the states. Pick judges based on their qualifications and not their ideologies.
Obama says that Roe v. Wade was a good call. Says abortion is something that is okay and should be a private issue.
McCain talks about how Obama voted about abortion issues.
Obama tries to back pedal.
Obama thinks our education system is behind all other coutries because of economy. Says we should spend more on education. (But we spend more than any other country already!) Give students a tuition credit, if you volunteer for peace corps, etc.
McCain says that throwing money at eduacation isn't working, but there must be improvements.
Obama thinks the govn't should step in and help. Then says that he agrees with McCain on some points.
McCain talks about voucher program and how it puts control in the hand of the parents.
Tuesday, October 14, 2008
Time to Get to Work
Monday, October 13, 2008
What is Wrong Here?
Today, House Speaker Nancy Pelosi is out trying to push another stimulus package. What does this mean? Is this the next "fix-all" step?
Sunday, October 12, 2008
Did Washington Act Too Soon?
More than two weeks ago, politicians began talk about a bailout plan. While they were in their respected offices, the voice of the people was loud and clear about not wanting the bill passed. However, Washington did not agree and further pushed it along with the end result of having it pass within just a week of the very first draft.
Well, the people were still in opposition of the bailout plan and with due respect. As they watched gas prices drop, they also watched the markets drop in record time. With growing frustration, and little to no retirement left in their IRA or 401k accounts, many wondered what or who was next.
Time has now shown this weekend, that this was not limited to only here in America. It has also shown that the initial $700b+ wasn't enough. Those voices on the street with enough common sense, knew that this was a global problem. This because of the ever increasing global economy.
With most markets trading lower and lower than ever, it put a strain on many governments to act with haste. This weekend, the G7 met to discuss what measures would need to be taken by the respective countries in order to stabilize the trading markets. So, what was discussed? More importantly, what was agreed on?
Here is the G7 Plan of Action:
The G7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:
1) Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
2) Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
3) Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
4) Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
5) Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.
The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries. We will use macroeconomic policy tools as necessary and appropriate. We strongly support the IMF's critical role in assisting countries affected by this turmoil. We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan.
With this plan in action, it causes many to ponder whether Washington acted too soon. Certainly, it makes more sense to take a step back when trying to enact such a broad bill, and meet with these countries to come up with a global plan. Global economics is not limited to only Americans, but is open to all.
Many in Washington seem to be left scratching their heads at how they couldn't have come up with this plan. Many people are left wondering why Washington tried to act so fast versus taking their time and coming up with such a plan.
