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nuf2bdangrus (< 20)

Guaranteeing failure by rewarding it

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August 22, 2008 – Comments (7) | RELATED TICKERS: BSC , FMCC.OB , GM

Our culture has so embraced the idea of "this time we can't allow failure because of blah blah blah"

 

So First BSC

 

Probably Lehman

FNMA

FRE

 The airlines post 911 (who should have had better security)

Now the automakers 

 

Our corporate culture rewards un innovative thinking.

 

A child could have anticipated the mortgage mess.  In fact, many "working Joe's" watched with marvel the smoke and mirrors game and knew it couldn't last.  But the "smartest" people in the class couldn't see it, and they got rich and left stockholders and taxpayers with the bag.

 

Now the automakers.  All 3 AMERICAN automakers in trouble.  Gee, I don;t see Honda, Toyota, or  Hyundai in trouble asking for loans and grants.   Seems they innovated and anticipated.  Sleeker, more fuel efficient cars.  

 

Business survive by anticipating problems and adapting to them.  Our automakers continued to build on a model that included bloated payrolls and benefits, and oversized fuel guzzling vehicles.

 

And now that their failures of ideas/vision are clear for anyone to see, they come hat in hand to Washington for 50 BILLION dollars. The logic?  Our economies can't afford the "loss" of all these workers, and the designers, executives etc.  Corrupt and inept managemnt, in a corrput and inept city (Detroit)

 

OH YES WE CAN AFFORD TO LOSE THEM 

 

When, oh when will we finally say we are broke and stip this nonsense?

 

The irony here....Our desire to prevent failure will actually guarantee it.  En masse.  Because the "put", from the Greenspan put, to the Bernake put, to the Pauslon put, will create the very moral hazard that encourages reckless and un innovative behavior.

 

I mean seriously....Hasn't any idiot for years seen the oil crisis coming?  I mean, there is only so much of it, huh?  AND houses can't appreciate 20% per year.  It's impossible.  And they didn't.

 

Call your Congressperson and say NO MORE BAILOUTS!!!!! 

7 Comments – Post Your Own

#1) On August 22, 2008 at 10:25 PM, russiangambit (29.85) wrote:

Did anyone notice that most troubled idustries are the ones with unions, - airlines and automakers. Unions don't have a place in the globalised world. Unions sort of corner the US labor market, without realizing that there is unlimited supply of ununionized labor in other coutries, like China and Mexico.

In case of financials and corporations in general, people are not rewarded for sounding an alarm bell, they are actually punished for it because they are trying to break the status quo. I should know, I found myself in this sitution several times until I learned my lesson. Now, if I don't like something, I just leave, it is useless to fight the system and not good for ones health.

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#2) On August 22, 2008 at 10:32 PM, LordZ wrote:

These auto makers have been failing for decades and only thru massive loans have they managed to stay afloat, and now guess what they want more cheaper loans guaranteed by us the tax payers. They have failed to manage the billions under their care and now we are suppose to guarantee them billions more to remain and to subsidize and continue their piss poor operations, meanwhile paying millions upon millions of undeserved dollars in salaries and bonuses ?

Hell one chrysler, is a freakin private company.

Ford is a joke, run previously by a joke family the Fords, who haven't done anything meaningful other than guarantee billions more in unproductive losses and failed business models and practices.

GM well what can one honestly say about GM thats good other than they had a good advertising caimpaign about making a revolution, however they still remain unprofitable and unproductive.

All this despite these guys dumping american workers and shipping their business all over the world and still they cannot make a profit.

All the while the so called foreign companies have open up shop in America, they have hired american auto workers who have built their foreign cars and have prospered and succeeded all the while our so called american auto makers have left america and have miserably failed, however have not failed to reward themselves with overbloated salaries and compensation packages.

Enough is enough, maybe if you need 50 billion dollars in cheap loan guarantees, just maybe you need to get out of the business, maybe find yourself less responsibility, maybe get a job at a dollar store telling people that everything is only one dollar.

I agree and I say

no bail outs, especially to these losers !!!!!!!!!!!!!!!!!!!!!!

 

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#3) On August 22, 2008 at 10:32 PM, LordZ wrote:

These auto makers have been failing for decades and only thru massive loans have they managed to stay afloat, and now guess what they want more cheaper loans guaranteed by us the tax payers. They have failed to manage the billions under their care and now we are suppose to guarantee them billions more to remain and to subsidize and continue their piss poor operations, meanwhile paying millions upon millions of undeserved dollars in salaries and bonuses ?

Hell one chrysler, is a freakin private company.

Ford is a joke, run previously by a joke family the Fords, who haven't done anything meaningful other than guarantee billions more in unproductive losses and failed business models and practices.

GM well what can one honestly say about GM thats good other than they had a good advertising caimpaign about making a revolution, however they still remain unprofitable and unproductive.

All this despite these guys dumping american workers and shipping their business all over the world and still they cannot make a profit.

All the while the so called foreign companies have open up shop in America, they have hired american auto workers who have built their foreign cars and have prospered and succeeded all the while our so called american auto makers have left america and have miserably failed, however have not failed to reward themselves with overbloated salaries and compensation packages.

Enough is enough, maybe if you need 50 billion dollars in cheap loan guarantees, just maybe you need to get out of the business, maybe find yourself less responsibility, maybe get a job at a dollar store telling people that everything is only one dollar.

I agree and I say

no bail outs, especially to these losers !!!!!!!!!!!!!!!!!!!!!!

 

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#4) On August 22, 2008 at 10:38 PM, LordZ wrote:

At the very least embarass the hell out of these beggars, make these executives and union leaders stand in front of traffic holding up signs begging for money !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Because thats what they are doing, begging like some turd, saying I am not smart nor competent enough to run my business without your money.

Do not !!!!!!!!!!!!!!!!!!!!

I repeat do not spend my tax dollars, on these beggars and fools, for if you do, I will vote you out of office if not worse !!!!

 

LORD Z

 

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#5) On August 22, 2008 at 11:04 PM, wrote:

I agree.  I'd be upset too if I was wiped out if Potash Co, or Activision sharevalue gets wiped out, but we know the rules when we invest in the NYSE.  Even if the system is fixed to some extent.

But I have no Sympathy for Anyone Buying Financial Stocks for the last 9 or so months.  I've had to sell for a loss this last year.  Sometimes the stocks rebounded, sometimes not.  But that's how it works.  But this idea of being bailed out with My Capital Gains and Income taxes does p!ss me off.

andrew

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#6) On August 23, 2008 at 1:31 PM, TDRH (99.92) wrote:

"When, oh when will we finally say we are broke and stip this nonsense?"

I don't think the US will ever admit that we are broke.   Our foreign investors will tell us when they stop buying treasuries.

I watch the election and I think to myself why would anyone ever want to be president, and why during this economic cycle.   This is going to be the mother of all down turns, going to make what Carter went through look like a short term correction.   Whomever is elected is going to be run out of Washington in four years  or less tarred and feathered.

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#7) On August 23, 2008 at 4:51 PM, anchak (99.85) wrote:

"Did anyone notice that most troubled idustries are the ones with unions"

Russiangambit....I couldn't agree more.

Nuf.... the lack of innovativeness stems from this fact too. Inertia is bad - but you know human pysche is such that it likes to be in that phase - because everything is easy.

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