Oct. 28 (Bloomberg) -- GMAC Inc., the lender that received two government bailouts totaling $13.5 billion, is in talks with the Treasury Department to receive a third lifeline, a person familiar with the matter said.
The U.S. government may inject an additional $2.8 billion to $5.6 billion into GMAC, the person said, declining to be identified because the transaction hasn’t been completed. The deal would involve the issuance of preferred stock, allowing the government to expand its 35.4 percent stake in the Detroit-based company if existing shares are converted into common equity, the person said.
“It’s outrageous that the taxpayers are being asked yet again to support a troubled enterprise,” said Sean Egan, president of Egan-Jones Ratings Co. in Haverford, Pennsylvania. “When will it end?”
The story above was a news item on bloomberg, I respond in my usual fashion.
Not again, when will these parasites stop?
I can see that the present government does not get it, when it comes to the economics of finance, and the limits of government intervention.
Throwing good taxpayers money at these blackened holes, bottomless usury shops, would not solve the issue at hand.
The way business is done by these institutions is the main source of failure. When these guys sat at their tables, fed fat on government, and customers fund, gambled away the main lifelines, they took huge bonuses and went home.When they set the entire nation's financial walls ablaze, we all felt trapped and helpless.
There was a loud call by many to rescue these thieves, I was amongst the few who felt, it did not make any financial sense to bail out these companies and their executives. Yet they did and the rest is both history and current affairs. We all have to pay the salaries of AIG, Bank of American, Goldman Sachs,Chase, and a host of others. The free ride does not stop there. They offered themselves astronomical amounts in bonuses! All on the back of taxpayers. Yes they can.
Save the people some, I say to the President and his economic handlers. Give the funds directly to the American people, release the unemployed from the yoke of the financial overlords. Small business need these monies more than the thieving executives.Mandate change to the foreclosure rules, keep the homeowners in their homes.
Change we can believe in, is one that truly lifts the middle income- to low income people while ensuring that the wealth of the nation is secured and preserved.
Do not give any more monies to these guys.
Before I sign off, check me out @www.bankole-hameedshehu.com or @ http://twitter.com/Ridwanalah.
I welcome your comments.
Wednesday, October 28, 2009
Tuesday, October 20, 2009
The Fall of Dollar- The Economist Oct 20th 2009
I wrote my view on the subject above, today in response to growing concern about US economy.
It seems the fall or rise of dollars, at this stage means little to millions of jobless.
However, a continued cause for concern to all is the rising deficit, along side skyrocketing numbers of the unemployed. I would like to see the issue of unemployment tackled, just as the health care reform is being tackled.
The rise and fall of currencies also portends business for many on the forex markets and other investors.It remains to be seen if China and Russia would find safer havens for their investment.
Obama administration has its work cut out. Check out www.bankole-hameedshehu.com
It seems the fall or rise of dollars, at this stage means little to millions of jobless.
However, a continued cause for concern to all is the rising deficit, along side skyrocketing numbers of the unemployed. I would like to see the issue of unemployment tackled, just as the health care reform is being tackled.
The rise and fall of currencies also portends business for many on the forex markets and other investors.It remains to be seen if China and Russia would find safer havens for their investment.
Obama administration has its work cut out. Check out www.bankole-hameedshehu.com
Monday, October 19, 2009
REPUBLICANS think about the future - The Economist OCt 17th
Below is my comment on nine questions for Reihan Salam on prospect of the Republican Party
It is plain silly of the present day Republican party adherents to suppose that saying "NO" to every and all things Obama makes for good.
It is sad to listen to some of the so-called angry town hall old men. It is a re-enactment of Gingrich's doctrine of racial purification of the 90s', when he coined the term "angry white -men take over government".
I think the true conservatives in the party, have to stand up to their ideas. There is nothing wrong in guaranteeing health care to all citizens.Recall that even convicts get health care. What then should stop a law abiding citizen from getting access to health care?
Since when does the presence of only 2 companies in the market place become competitive?
It is a known fact that most health insurance markets in US is dominated by a handful of insurers. How do we get premiums down?
Remember that budget deficits are not found in government spending alone,individuals and families run budget deficits. So if the Republican party supports balanced budgeting in the public sector, it must encourage doing same with private persons.
One way to ensure that private individuals don't get into red, is to provide safety net, in services that they almost cannot do without. Assuring the citizens that their premiums are protected, while their access to quality health care is guaranteed is a first step.
Any health care system that leaves its subscribers to vagaries of monopoly is an invitation to disaster.
Another disturbing trend in the party is the rise of hate mongers, Glen Beck and Limbaugh. These radio boys just ooze out rubbish in the name stepping of blacks.
What a spectacle to see that no one party faithful, particularly the elected ones, is able to stand up to these hate mongers.
Yes the Republican party will find a way to win again.
It is plain silly of the present day Republican party adherents to suppose that saying "NO" to every and all things Obama makes for good.
It is sad to listen to some of the so-called angry town hall old men. It is a re-enactment of Gingrich's doctrine of racial purification of the 90s', when he coined the term "angry white -men take over government".
I think the true conservatives in the party, have to stand up to their ideas. There is nothing wrong in guaranteeing health care to all citizens.Recall that even convicts get health care. What then should stop a law abiding citizen from getting access to health care?
Since when does the presence of only 2 companies in the market place become competitive?
It is a known fact that most health insurance markets in US is dominated by a handful of insurers. How do we get premiums down?
Remember that budget deficits are not found in government spending alone,individuals and families run budget deficits. So if the Republican party supports balanced budgeting in the public sector, it must encourage doing same with private persons.
One way to ensure that private individuals don't get into red, is to provide safety net, in services that they almost cannot do without. Assuring the citizens that their premiums are protected, while their access to quality health care is guaranteed is a first step.
Any health care system that leaves its subscribers to vagaries of monopoly is an invitation to disaster.
Another disturbing trend in the party is the rise of hate mongers, Glen Beck and Limbaugh. These radio boys just ooze out rubbish in the name stepping of blacks.
What a spectacle to see that no one party faithful, particularly the elected ones, is able to stand up to these hate mongers.
Yes the Republican party will find a way to win again.
Bank Bonuses- Goldman Sachs
I was never in support of the last bank bail out. i argued that true competitive markets demand that inefficient members, be shown the door. I reasoned that propping out failing institutions, without demanding a fundamental change in the way business was done, and or effecting structural changes in the management of these institutions would only amount to throwing good money after bad money.
Now that i read in the papers and hear the news on TV, about the record amount set to be paid out by the banks,( just recently bailed out), i shudder. What i don't want to say is "I told them so".
These guys on Wall Street actually feel good about gambling with the tax payers monies. Take the case of Goldman Sachs, wow, those guys just got free lunch. They Fed. basically paid Goldman Sachs for doing NOTHING! Incredulous for the world biggest economy. No wonder the "recovery" is jobless. Since when has a country's growth calculated by the profits earned by a few too big to fail banks?
Quick question- did Goldman Sachs just sacked the American people?
It is a sad day when, you hear our lawmakers on both sides of the aisle duck they question of culpability of treasury secretary , the chairman of reserve bank and of the the fed., in the on-going saga. How do you thrown $trillions to institutions without asking for nothing in return?
Someone must be listening.
Now that i read in the papers and hear the news on TV, about the record amount set to be paid out by the banks,( just recently bailed out), i shudder. What i don't want to say is "I told them so".
These guys on Wall Street actually feel good about gambling with the tax payers monies. Take the case of Goldman Sachs, wow, those guys just got free lunch. They Fed. basically paid Goldman Sachs for doing NOTHING! Incredulous for the world biggest economy. No wonder the "recovery" is jobless. Since when has a country's growth calculated by the profits earned by a few too big to fail banks?
Quick question- did Goldman Sachs just sacked the American people?
It is a sad day when, you hear our lawmakers on both sides of the aisle duck they question of culpability of treasury secretary , the chairman of reserve bank and of the the fed., in the on-going saga. How do you thrown $trillions to institutions without asking for nothing in return?
Someone must be listening.
Friday, October 16, 2009
Banks and bonuses Making hay- The Economist 10/15/09
Here is my response to the article as presented above.
It an utter shame how these banks and their "true owners", the employees and executives carry on.
One only need to think about the effect on merchantability. The credit squeeze is bad for business, while the tax payers groan under huge mortgage loans, that these banks have refused to refinance or modify, the so called good staff return huge losses but take home mountains of cash.
There is no justification for business as usual. The holders of ordinary shares are too many too lose, too diverse to organized at a manageable level to make an impact. Attempting to arrange a united from would be akin to asking the Republicans to vote en-mass for health care over haul. That is not just going to happen.
Economist, management analysts and other thinkers would have to come up with a better approach in reigning in greedy corporate behaviors.
I attempted to shed light on some of these issues in my new book Obama first African American president, it is available online on amazon.com
It an utter shame how these banks and their "true owners", the employees and executives carry on.
One only need to think about the effect on merchantability. The credit squeeze is bad for business, while the tax payers groan under huge mortgage loans, that these banks have refused to refinance or modify, the so called good staff return huge losses but take home mountains of cash.
There is no justification for business as usual. The holders of ordinary shares are too many too lose, too diverse to organized at a manageable level to make an impact. Attempting to arrange a united from would be akin to asking the Republicans to vote en-mass for health care over haul. That is not just going to happen.
Economist, management analysts and other thinkers would have to come up with a better approach in reigning in greedy corporate behaviors.
I attempted to shed light on some of these issues in my new book Obama first African American president, it is available online on amazon.com
Wednesday, October 14, 2009
A battery made from cellulose- The Economist
This indeed is a celebrated feat, we now have institutions and individuals turning effectively to naturally occurring substance, with little or no pollution effects to get energy.
Small steps but by no means minor, it is really a considerable leap/ peek into the future of powering stuff.
I commend the efforts that lead to this. My website www.truecomfortzone.com is one setup that celebrates this types of new technologies.
Small steps but by no means minor, it is really a considerable leap/ peek into the future of powering stuff.
I commend the efforts that lead to this. My website www.truecomfortzone.com is one setup that celebrates this types of new technologies.
The Financial reform
As I write, the US senate is about to complete the first draft of it's version of the much awaited and much promised financial reform by the Obama administration.
Not long ago, approximately one year now, when the Wall Street was set ablaze, by the greedy bankers and it's accomplices. this fire and its' consequences were brought on by greed, near absence of regulations, predatory lending and huge unmitigated risk taking by the financial institutions. The entire country was shaken by the events as it unfolded, politicians all screamed, everyone of them pointed accusing fingers at the other. The republicans, fingered Obama and his party for demanding the sort of regulations that according to them" would stifle competition and slow growth", the democrats countered, that it was the sort of loose or absence of common sense regulations that got Americans were they found themselves. Eventually, change was promised.
This bill, the way it stands does not amount to regulations, but a deal worked out by the same industry that legislators are supposed to regulate. It does not prevent economic and financial mismanagement, it does not reduce the chances of "too big to fail", it puts the tax payers money and effort at risk once again. It is a bill of exclusions rather than inclusions.
In my published book Barack Obama First African American President( available in a few days online-Amazon.com), I argued that the effects of lobby would make true change very difficult to attain.
Not long ago, approximately one year now, when the Wall Street was set ablaze, by the greedy bankers and it's accomplices. this fire and its' consequences were brought on by greed, near absence of regulations, predatory lending and huge unmitigated risk taking by the financial institutions. The entire country was shaken by the events as it unfolded, politicians all screamed, everyone of them pointed accusing fingers at the other. The republicans, fingered Obama and his party for demanding the sort of regulations that according to them" would stifle competition and slow growth", the democrats countered, that it was the sort of loose or absence of common sense regulations that got Americans were they found themselves. Eventually, change was promised.
This bill, the way it stands does not amount to regulations, but a deal worked out by the same industry that legislators are supposed to regulate. It does not prevent economic and financial mismanagement, it does not reduce the chances of "too big to fail", it puts the tax payers money and effort at risk once again. It is a bill of exclusions rather than inclusions.
In my published book Barack Obama First African American President( available in a few days online-Amazon.com), I argued that the effects of lobby would make true change very difficult to attain.
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