Posted by admin on Feb 6, 2009 in
Corporate Welfare,
Financial Rants I didn’t vote for President Obama, not because of ethnicity or party affiliation, but because I didn’t believe he was the best choice for America. On the other hand, I wasn’t entirely convinced McCain was any better. In any case, he is our president, and because he is, I will pray for him and hope for his success.
The president has a huge job in front of him in cleaning up the economic mess. I’m not sure I agree with the government establishing salary caps for CEOs of private corporations, but I do think that corporations receiving welfare cannot continue business as usual.
Companies that are on the dole are no longer responsible just unto themselves, but also to the American taxpayers. I think that a cap of $500,000 is quite fair for welfare recipients. Once they pay back the bailout, then they can once again rake in lavish salaries.
Tags: Bailout, Corporate Welfare, Salary
Posted by admin on Feb 2, 2009 in
Corporate Welfare,
Financial Rants Recent news reports are filled with corporations on welfare still spending money hand-over-fist. These companies begged the Congress and the American people for money to just stay in business. They blame the current economy for their problems and refuse to take any responsibility for their problems.
American families have always been advised by financial experts to save money and invest wisely during good times in order to survive the bad. Apparently, corporate America didn’t think that advice applied to them. They squandered their profits during good times and then beg for money during the bad times. Not only that, but they still continue their self-destructive habits, some citing tradition.
According to Good Morning America, Bank of America may have spent upwards of $10 million on Superbowl ads and related activities, citing tradition. How many American families had a tradition of taking a vacation every year and can now no longer keep that tradition alive? B of A allegedly refused to disclose any information related to their spending habits.
Well, I say enough is enough. They are on welfare. No matter how you look at it, they are no different than any family on welfare. Full disclosure should be required in order for them to receive any taxpayer funds. If they refuse full disclosure at any time, then the ‘loan’ becomes immediately due and payable and they are no longer eligible for any further assistance.
If American Families are being asked, nay, required to downsize their spending to only the essentials, so must corporate welfare recipients. American families are forfieting their summer vacations, dinners out, movies and other entertainment to the failing economy. Corporate welfare recipients and their management must be required to do the same – no more golf junkets, no more retreats to exotic destinations, and definitely no Superbowl.
It is time for Congress to wake up and require accountability from those we are bailing out. It’s time to require them to be responsible and run their businesses responsibly. It is time for corporate greed to end.
Tags: accountability, Corporate Greed, Corporate Welfare, disclosure
Posted by admin on Nov 11, 2008 in
AIG Rants,
Financial Rants AIG execs once again appear to be flipping America off as they take our money. Now, to the tune of $343,000, the top execs went to a secret meeting at a luxury resort in Phoenix last week while at the same time begging for another $40 billion in loans. The hotel staff was forbidden to use or say anything that would identify AIG as being there – no logos, no signs, and according to one report, couldn’t even say the name AIG. So, apparently, they were hiding out because they knew they were doing something that the American taxpayers would not approve of.
I, for one, am tired of them taking my hard-earned money and then telling me that they will do what they damn well please with it. Company officials say that they will recoup much of the cost from product sponsors, so they apparently have a solid revenue stream. If they can afford to waste $343,000 on a conference, they can afford to pick themselves up out of debt without any help from the taxpayers. Wanton spending is one way they got themselves into this mess, they need to do what other Americans are doing and cutting back on everything.
The execs say that things like this are necessary for their business, maybe so. But in hard economic times, we have to change some things around. A meeting can be held anywhere there is a room large enough, and I’m thinking there are plenty of conference rooms at AIG’s headquarters. And, they should require that all the attendees actually attend the meeting, not work out at the spa while others attend meetings, as Art Tambaro, president of AIG’s Royal Alliance Associates allegedly did.
There are plenty of Americans who have over-extended themselves that would love a bailout of their own. I wouldn’t mind an extra $100k to pay off all of my debt. American families are having to do without new cars, new clothes, vacations, electronics, etc. We are having to cut our budgets, change our lifestyles, and do without. We are watching our retirement accounts driven into the ground. We should ask no less of the companies coming to us with their hands out, begging.
It is time for the feds to cut AIG off – now. No more bailout for AIG, or any other entity who is behaving as irresponsibly. Cut them off and demand immediate restitution. Cut them off and demand the resignation of their CEO and other top managers, without golden parachutes and bonus packages. Bailing out this company is offensive to me and to Americans. They are spitting in the faces of those they are begging from.
Cut them off, break them up, and sell them off.
Tags: AIG, Bailout, Corruption, Waste
Posted by admin on Oct 28, 2008 in
Financial Rants Kudos to New York’s AG Andrew Cuomo. Finally someone in governmnet has the spine to stand up and say “Enough”! The New York AG office sent a cease and desist letter to AIG telling them not to spend any more taxpayer money on lavish retreats, partridge hunts and the like. And, he indicates that he is going to recover all “past unreasonable expedentures.”
Needless to say, I’ll be watching this one.
For more information, see the ABC news article.
Tags: AIG, Bailout, Corruption, Fraud, Greed, Waste
Posted by admin on Oct 16, 2008 in
Financial Rants When a company is in trouble and requires the Federal Government to bail them out, maybe the fluff should be the first to go. Executives of companies bailed out by the feds, and ultimately the taxpayers, should be living under a microscope.
Days after AIG received $85 billion from the Federal Reserve, AIG spent $440,000 entertaining executives. Now, they’ve paid $86,000 for a hunting trip in England just after they recieved another $37.8 billion in taxpayer funded loans. According to AIG execs, though, these trips were already planned months before any bailout or loans and therefore were necessary and allowable.
Big Deal. How many families have had to put their vacations on hold just to make the mortgage payment, put gas in the car and food on the table? How many of these families have seen the main breadwinner suddenly unemployed. I’m sure the mortgage company didn’t say “Go ahead and take your vacation. By the way, here’s a loan to help you fuel your car and buy groceries, use it in Hawaii. Pay it back when and if you can.”
This is just another example of how these huge companies are laughing at Main Street America.
Maybe a different kind of retreat is in order. I’m thinking a bit of time as guests of the federal or New York penal systems may help out. I understand they have an excellent fitness program as well as massages (if you find the right roommate).
An interesting Fox News article can be read at Fox News.
Tags: AIG, Bailout, Corruption, Fraud, Waste
Posted by admin on Oct 7, 2008 in
Financial Rants The bailout has been approved, but Wall Street is still anxious. Apparently, this anxiety has spread world-wide as foreign markets are now taking a similar beating. Other markets are blaming America (what’s new) for their problems. Congress is taking a closer look at CEOs of some failed financial institutions. But, who’s really to blame?
In my opinion, the blame cannot settle on any one person or entity. Let’s take a closer look.
The home buyer: Many want to put the blame solely on the home buyer who took a mortgage for a house they should have known they couldn’t afford. I don’t put all the blame there, but I think it’s fair to share the blame here.
A responsible buyer would have known that if they earn $40k/year, they can not afford a $200k house. They should have looked elsewhere for a more affordable home, or continue to rent. I know that, at least in Oklahoma, there are still plenty of nice homes for $50-$100k.
The Mortgage Company: Mortgage companies share a part of this blame because they gave false hope to the buyers looking at this $200k home. The buyer may have known it was out of range, but the mortgage company says different. Adjustable-rates that stay low for the first few years (you’ll be getting raises, right?) but then start adjusting or interest-only mortgages that give the buyer no equity in their home and, in fact, will easily cause them to be upside-down not if, but when, home prices adjust downward after the balloon pops.
Some of these companies not only deceived the buyer, but also deceived the underwriter by falsifying incomes, credit scores, etc.
Financial Institutions: Financial institutions who underwrite the mortgage companies offering incentives to the mortgage companies to push as many people through as they can. They forgot to actually verify that the information the mortgage companies were sending through and verifying that they buyer actually only makes $40k instead of the $60k on the application. So, now they are stuck with bad paper and the cost of foreclosing. Not to mention, stuck with a house that they cannot sell.
The Feds: Where are the watchdogs? After the Great Depression, our banking and financial systems went through unprecedented changes to keep what happened from ever happening again. Safeguards were put in place, laws were written, committees and federal intities were created. All of this seemed to be working well. However, like the person who stops taking their lithium because they “feel better”, the government relaxed some of their rules and laws and safeguards for a few companies that we’ve come to know and love, Lehman Brothers being one of them.
Citizens: Ouch! That hurt. We as citizens, and I’m no exception, have become complacent and lazy. We allow the government (supposed to be of the people, by the people and for the people) to grow stronger in our lives and tell us what to do. That is not the way the founding fathers foresaw it. We the people are to be in charge of our government and telling THEM what to do – as a whole people, the citizens of the United States. We should be involved in our government and know what is going on. If we don’t like it, we have the right to petition, the right to be heard, and the right to change it. VOTE! I don’t care who you vote for as long as you vote as an informed citizen. It doesn’t matter if your spouse is voting opposite of you, both of you should VOTE!
So, I blame everyone to some degree. Our economy will bounce back. It always has. Even with its problems, I believe the US is the best place to live in the world. Let’s all work together to make it even better.
Tags: Banks, Blame, Credit, Finance, Government, Money, Mortgage