Is this really the best of what we have to offer?
US Government bails out CitiGroup
--I'm reminded of the GM/Chrysler proposed merger. Wasn't it just late September that CitiGroup was in an agreement to take over Wachovia? They threatened court action when Wells Fargo became the proper suitor for Wachovia. Pandit should not have been made the CEO-he clearly doesn't have a sense of where his company is going. Hell, Sallie Krawcheck was a much better choice than Pandit...too bad she's leaving the company at the end of the year. When she walks out the door one of the last executives with morals and strong ethics will be lost by Citi...
I am more than pissed off that Citibank has to be bailed out. More tax money down the tubes with nothing to show for it except executive greed....I wonder where Citi will go on vacation.
Downey Financial files for Chapter 7 bankruptcy
--The list of troubled banks has risen from 117 last quarter to 171 this quarter. Three banks were shuttered in one day...One thing is true-only the big dogs will survive. Edit: Only the savvy big dogs will survive. Those that cannot figure it out should and will collapse.
Is Bank of America Next?
--BofA may well follow suit with Citi due to their high level of bad/risky mortgages. As proven with Citi, all it takes is the loss of investor confidence to turn the tides on BofA...and as proven with both Citi and WaMu, it can happen quickly. As much as I personally don't like the practices of BofA (I was a long time customer), I don't want them to fail. I hope they figure out a strategy to stay afloat. I'm growing tired of working to support executive greed. I think the greedy executives should be dealt with Renaissance style.
And my other favorite topic:
Detroit auto industry plans car caravan
--Why are we bailing out GM/Ford/Chrysler? Is it because of the number of jobs that can be lost? What happens if WalMart needs to be bailed out? They employ more people than GM-would the government bail them out if they were in the same situation? Most likely not. So, why do we bail out GM? They just received money in September 2008. One quarter later, they are asking for more money. They still focus advertising on SUVs, Hummers, etc. Clearly they don't get it. $20k private jet flights to go to Congress and ask for money? They're so far removed from reality that they don't get it.
Let GM go bankrupt. Most of their suppliers have already suffered the repercussions of their failed decisions. I can say this because I work for a company that provides tools to the companies that make components for the Big 3. We've already suffered the slow down. Most of the providers of components have already shed jobs or shifted their attention to other industries (like aerospace) in response to the slow down. The big deal? The unions refuse to let go...they're pushing the hardest to get the bailout for the auto companies because if the bailout doesn't come, they will lose first. If GM goes bankrupt, the unions will be the first to go...and the wage rates will become more competitive with Toyota, Honda, etc.
If it were an industry wide problem, Toyota and Honda...Nissan and Hyundai...they'd have their hands out as well. Both Toyota and Nissan made a foray into full size trucks, neither completely succeeded...but neither leaned too heavily on the success of it-this turned out to be a wise move on their part. Hyundai focused on making better, more reliable vehicles...they're selling more cars. Nissan focused on redesigning cars into more consumer desirable machines. Toyota focused on smaller cars...created Scion and brought out the Yaris. Honda brought out the Fit...meanwhile, back in the states...GM brought out a new Hummer, worked on designing another...made trucks bigger and more lavish. They made the Acadia and now advertise the Traverse. Ford redesigned their trucks...focused on the Edge (the ugly little egg truck) and battled internally over design control...losing the fight before they could get to the battle. Chrysler just kept making shitty cars and trucks...vehicles that required the greatest number of recalls to fix simple design flaws or poor assembly.
Yeah, it's no wonder they need a bailout. The executives need a fucking lobotomy. The boards of the respective companies should find someone passionate about making a change...instead of just collecting change.
Let them go bankrupt-it'll be cheaper for us all in the end. File for bankruptcy-sell the cars for less, reorganize and emerge from the ashes...hell, even if they just reduce their vehicle inventory on dealer lots it would be an improvement. There's a lot of talent out there and it should be put to better use. There's a lot of money being wasted on Detroit executives...and if this really is the best they can do-they deserve to fail.
Background Tune: "Greed"--Shawn McDonald
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