Tag Archives: Henry Paulson

Three Automakers Not Giving up Private Jets

Three Automakers Not Giving up Private Jets

The audacity of the Big Three CEO’s  showing up for a 30 billion dollar in Washington handout due to their own mistakes is beyond understanding by most people.

These CEO’s arrives separately in their own private Leer jets cost them $20,000.00 round trip for each person to arrive in Washington and the reason give was for their own security. There have been no recent Al Qaeda threats on automaker CEO’s although some stockholders may want to take a punch at them.

Brian Ross of ABC News did some investigating on the perks of failure especially at GM.

These automakers do not understand that people are losing their homes, their jobs and health care due to the state of the economy.

They tried the Henry Paulson sense of urgency tactic of his initial address to Congress requesting 700 billion dollars immediately with no questions asked of him.  There is no guarantee that once they receive this loan as they call it, that layoffs would not occur even after this massive bailout request.

To add insult to injury they gave no specifics, no plan and no details on:

1) How they expected to weather the next several years of a predicted economic downturn when they are burning up cash every day.

2) There were no details on how they will re-design, revamp plants, retool machines to build green cars to complete with Toyota that has become the leader in the industry with the very successful Prius while they were asleep at the wheel.

3) There were no cost spreadsheets, no presentations, no new designs for vehicles they intended to build and no proposals on how this money will turn their companies into profit centers instead of losers.

4) GM needs 12 billion, Ford needs 8 billion and Chrysler needs 7 billion but the CEO’s are not selling their jets, not any of them. GM’s Rick Wagoner stated he would use the money for operating costs but is this just prolonging the agony of bankruptcy a few months later?

Gas Guzzlers of 2008- 2009  Three Automakers Not Giving up Private Jets

 Three Automakers Not Giving up Private Jets

Chyrsler’s Nardelli advised that Chrysler is out of cash and health care, pensions and wages will suffer loss if they don’t receive a bailout.

Ford’s Alan Mulally gets paid 28 million dollars and he and his wife only travel on private jets.

Ford has 8 private jets for their executives and still operates a fleet of jets and is only putting a few up for sale, with no plans for reducing these expenses.

5) There was no mention of changing their focus on Hummers, and their business model. There was nothing mentioned about decreasing the number of divisions, or reducing the number of dealerships. GM has 7,000 dealerships compared to Toyota’s streamlined 1,250 dealers.

6) There was no offer to reduce GM’s CEO salary from 16 million to $ 300,000 which is adequate in relation to his productivity.

Three Automakers Not Giving up Private JetsThree Automakers Not Giving up Private Jets

 

It is clear that letting the big 3 declare bankruptcy would deter car buyers however there could be a form of bankruptcy which would allow their streamlined restructuring, and surely this means layoffs. But the layoffs should start at the heads of these magnificent failed corporations and there should be no rewards for their failures.

The blame for the financial failure of the big 3 is being aimed at the high wages of union workers
but if you look at a Toyota vehicle such as the Camry and compare it to a Malibu the price is essentially the same at approximately $ 22,370.00. However Toyota is paying less for labor and pocketing higher profits, and have a clear record of producing a better car.

The big three automakers have ignored market trends, and the price of gas all in this past year 2008 gas was selling at up to $5.00 a gallon.

Instead of re-structuring 2 years ago when gas started to rise they built a 2009 Hummer and 2009 Cadillac Escalade that both get on average 14 miles per gallon. This does not give anyone the confidence that their management or projects are anywhere near reality.

The failure to recognize that gas will get more expensive which should have been a warning sign that cars must be built more efficiently and without harm to the environment. The big 3 all ignored those market trends and indicators of where their future as automakers would eventually be in the future.

The automakers must realize that the days of the Chevy Vega are back, and their customers will not buy gas guzzlers again, those days are long gone.

It is not only the automakers are fault but also politicans who have invited foreign countries on our soil to produce products here, while they refuse to buy our products in their country. The imbalance of trade has damaged our manufacturing base to the point where we have become slaves to foreign manufacturers and our money is flowing out of the country to pay for these products. At the same time we are incurring massive debt and borrowing to pay for our mistakes.

It is now weeks later and GM has just announced it will only put out of service 2 of its 5 corporate jets due to lack of use, and they are not selling them off. In the beginning of 2008 GM had a total of 7 private top of the line luxurious jets for their top executives, not only the CEO but other top brass. Seven jets cost millions to maintain and operate on a daily basis and we need to see the bill for these types of expenses to get a grasp of the sense of entitlement of these men.

A last minute word from ABC News is that the three CEO’s have no plans to stop using their private luxurious jets. Good luck on reducing the arrogant Mr. Wagoner’s 16 million dollar salary or take away his G4 36 million dollar personal jet.

You cannot seriously save these corporations without firing these three failures first. The Obama administration will not entrust futile efforts with CEO’s that just don’t get it.

TAGS: Big 3, automakers, GM, Ford, Chrsyler, Toyota, ABC News, Rick Wagoner, Private jets, CEO expenses, luxury GM jets, GM CEO, GM corporate jets, Brian Ross, Senate, Congress, Henry Paulson, ABC CEO private jets, Leer jets.

Posted November 28th, 2008 Updated.

Feds Refuse Disclosure on Bailout

Feds Refuse Disclosure on Bailout

Secretary Henry Paulson first approached Congress with the bombshell that the US economy would come to an end, let alone the world if an emergency bailout was not forthcoming.
 
Paulson demanded total control of the funds, legal indemnity and in a secretive manner would not disclose who would receive the funds or what comprises the collateral.
 
 
Not one person appearing that day or several days later seemed to be bothered by these terms, and seemingly were so afraid of the sky falling -they went along with the plan to bailout Wall Street.
This timeliness of the bailout came in the middle of a Presidential election, when most people and politicians were distracted by the election and the subsequent infighting in both parties.
Two trillion dollars later, we are no closer to the truth and in fact if we were to know the truth there would be a run on the banks.
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout
There are no details on the collateral in spite of the agreements made in September that both Ben Bernanke and Henry Paulson would comply with the demands for transparency Americans do not know where the money is going, and nor does Congress.
 
Bloomberg News is requesting the details under the FOI Act and has filed a lawsuit in the federal court several days ago to impose full disclosure.
 
Since it is taxpayers money to begin with, there should be truthfulness in who is receiving these funds and under what terms. Barney Frank said the Fed’s disclosure is sufficient and that the central bank’s risk exposure is appropriate during these hard economic times.
Everyone states they want transparency but this is basically a wash on disclosure and that is not acceptable.
 
Updated Sept. 28, 2011
 
We all know now that the Wall Street bailout went to executives in the way of Christmas Bonuses, golden parachutes and huge salaries for CEO’s like Lloyd Blankfein who took home 68.5 million dollars in cash and equities in 2007. Blankfein later shopped for a 40 million dollar estate in the Hamptons, a 26 million dollar apartment in Central Park and sold his Nantucket property for sale at 55 million dollars.
 
Goldman Sachs had partners also that received huge bonus money worth 12 to 15 million dollars, as well 30,000 employees received 10.9 billion in pay and bonuses that year.
 
 
 
 
Basically, they took the TARP money and paid themselves richly, rewarding themselves for criminal behavior in manipulating mortgages and derivatives.We know now that only Bernie Maddoff was sent to prison for his crime of a ponzi scheme but no other CEO’s have seen a jail cell.
 
 
Today, people are out of work in greater numbers than in 2007 and a certain backlash has started with Occupy Wall Street which is spreading like a virus across the USA.

People are standing up to these Wall Street crooks, in a peaceful demonstration that demands they be removed and banks to be dismantled by the government, so that control of the US financial system will not be subjected to any further criminal schemes by these same CEO’s who are still in charge on Wall Street.
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout
 
Feds Refuse Disclosure on BailoutFeds Refuse Disclosure on Bailout

Bail Out Attracts Loan Sharks on Wall Street

Bail Out Attracts Loan Sharks on Wall Street

Christmas Comes Early- Wall Street Bailout and Executive Bonuses

All sorts of weird loan sharks are coming out wanting a piece of the 900 billion dollar bailout package that The Secretary of the Treasury Mr. Henry Paulson would like to serve up on Wall Street.

The money is all for the taking of any tom, dick or harry that wants into the free money can get it and that includes banks that are underfunded lacking capitalization.

The Sharks are out for Blood and Free Money

Bail Out Attracts Loan Sharks on Wall Street

Yes, boys the free money is flowing again and this time its the stupid taxpayers that are on the hook, so no worries we don’t even have to pay it back!  You can hear the loan sharks circling the victims who are bleeding in the streets, losing their homes to foreclosure, losing investments, pensions, 401K’s and that’s just for starters.  The jobs lost will be the final blow to the US economy and the dollar will drop like a stone.


Bail Out Attracts Loan Sharks on Wall StreetBail Out Attracts Loan Sharks on Wall Street-Merry Christmas I got my Bonus!!

Other economists have weighed in on this US financial bailout and indicate that the US Secretary of the Treasury is dead wrong in bailing out the institutions and not the core clients and that would be the homeowners who lost their homes.

Not all borrowers lied about their income on mortgage applications, the majority were earnest people who wanted a home but lost a job or both income earners lost their income. 

Bail Out Attracts Loan Sharks on Wall Street

Experienced economists also state that rewarding people for mistakes is setting a precedent for further abuses, and Paulson wants the bailout to be without any changes that would hold the CEO’s responsible with no rewards of bonuses mentioned.

Bail Out Attracts Loan Sharks on Wall Street

The TARP plan also fails in the respect of that it was the Bush government intervention that deregulated the financial markets -and that failed on his watch.

It is now the same Bush government that wishes to intervene again which does not relate to their “free market” principals and will also fail to resuscitate the economy.

A bail out directed to the core that is the homeowner borrowers would be far less expensive in the long run that this massive outlay of cash to the institutions.

In addition you are putting the money back in the hands of the people that abused it and there is a matter of distrust with those individuals if they go unpunished they will do it again.

Barack Obama happens to be right in that you just do not hand over a 900 billion dollar check to the dummies who screwed up in the first place!

How stupid does Bush think people real are, with his theory of “trickle down debt”. The taxpayer is on the hook for the government’s mistakes and its not going down too well.

This bailout is being present in a hasty manner and under duress of foreclosures which are at the heart of the problem. If you gave judges the power to re-negotiate the loans on foreclosures you could clean up this mess pretty darn fast, without this massive bailout to the wrong institutions.

AIG should be sold off in pieces and their derivatives should bring jail sentences not golden parachutes, especially one Maurice Greenberg. Enough is really enough of this nonsense.

One feels that Paulsen and the Bush administration are total and colossal failures who should be removed from damaging the economy any further.

No Republican should ever hold the highest office of the country especially those who are so inexplicable involved in the corruption that has permeated this country for the last eight years coupled with the invasion of Iraq costing 120 billion a year.

Iraq sells gas for five cents a gallon, has a surplus of 198 billion dollars this year, and has a national free healthcare program for every citizen. Perhaps John McCain should run for the Presidency of Iraq.