Friday, November 21, 2008

Watching the collapse

A couple more banks took the big flush this week. Not making the regular financial channels I'm guessing info is now being let out after the markets close on Friday in hopes nobody will notice and forget about it before the Monday open. The banks were Downey Financial and PFF Savings and Loan. Then there's the issue of Citibank. At 3.77 a share it's looking a lot like Washington Mutual did right before it gave up the ghost. Should we bail out Citi? I say hell no. If you or I ran a business and it went bankrupt we wouldn't expect the government to bail us out. The assets would be sold and the liabilities paid and the business shut.

I have an idea. Why not take the money for bail outs and just set up a government owned bank. With a fresh start and more regulations we could pick up a bunch of laid off bank people and put them back to work. That would be excluding the idiots at the executive level who should have been fired years ago.

In other news just as I predicted Boeing will be laying off workers. With no contract on the Air Force tanker deal Boeing will be laying off people in Kansas, Pennsylvania, and California. Washington state is okay for the moment but as the economy sinks I'm sure the airlines will be putting a hold on their orders. We're beginning to see competition among airlines as business is falling off even though fuel prices are falling.

As for the auto industry I say we keep the workers and lay off the executives. I say we give a billion or two of that bail out money to companies like Tesla that are trying to make the new technology cars. There's a lot of great ideas out there but without the capital or production facilities they can't get off the ground. The "innovative" cars that GM and some of the others have come up with are overpriced garbage. I've looked at the tech specs on them and wouldn't give you two cents for one.


MRMacrum said...

You and I seem to agree here. It is not the auto workers. Thirty years ago maybe, but not now. Detroit's problems all come from the top. Sort term thinkers who were full of themselves and their idea they were invincible. So many bad policies regarding what to produce, what amrket to exploit, etc have dug the hole they are in now. The fact they showed up in Dc after climbing out of private jets indicates they still do not get it. Shit can the whole lot of them I say. Put the smart guys from middle management in charge. Or hire some execs with the right kind of vision and experience.

BBC said...

Hum, a government owned bank is an interesting thought, but look at what they have done with our money they do have.

How about credit unions, how are they holding up?

The way things are going there is no saving some of those car company's, and no answers other than to weather the storm.

I personally don't care if my next rig is a Ford or a Toyota, or whatever new thing is out there.

BBC said...

We can't fire anyone, I believe that only the stockholders of those companies can.

And they have been brainwashed into believing that those jerks are great for them.

Demeur said...

Credit unions are doing quite well right now. They (credit unions) are not for profit and didn't loan out money to those not qualifying. A lot of the money from Wa Mu ended up in Boeing CU and others looking for a safe place.
We can't fire the workers but we could let the whole thing collapse and start over which would be the same thing.

BBC said...

I've been saying that for years, let it topple and hopefully do it right the next time.

Wayne John said...

I have no f*kng clue what's going on other than the obvious. Bush seems to be hurting us badly, yet we allow him to continue.

Confused, totally confused....

Demeur said...

Wayne what we're witnessing is nothing more than the greatest robbery in world history. Bush over the last eight years has removed all the regulations for wall street. Wall street and the banks leveraged both paper and homes creating a mega bubble on a world scale. As with anything all good things must come to an end. Those at the top knew that the end was near when people who couldn't afford to stay in their houses defaulted. They (Bush's cohorts) shifted their positions to safe ground last October while telling everybody that things were just peachy and to continue investing in stocks.
Why does Bush continue? Because he's only out for one thing. Money. All of the stuff he's getting into law benefits business. Why can't we stop him? Because he's doing it by executive order an end run around congress.

Anonymous said...

The auto industry big shots flew their private jets to DC to beg for alms. Whenever a company is in financial straits, look at their CEOs to see where the money went. TWA once hired an advisor to help them trim expenses. He got them to fire the guards and hire dogs. When the dogs got lazy, he said to stop feeding them and they'd get angry and there's money to be saved on dog food.

Of course he was telling these things to the multi-millionaire owners who just KNEW their troubles were all due to buying that damn dog food.

NOW, we have problems coming UP from the bottom as well as down from the top.

I've lived below my means in order to save for my retirement while others went into debt so that they could live ABOVE their means. Now I'M the one paying for THEIR sense of entitlement.

nuff said