National Politics Mortgage Crisis

[becky-mom]

http://news.yahoo.com/s/ap/20080907/ap_on_bi_ge/mortgage_giants_crisis


US Government takes over mortgage giants

[becky-mom]

Originally Posted by clarke

Should have let them fold....and should let those that cannot pay for the idiotic mortgages they bought lose their houses. I took a loan that I knew I could afford instead of one of those stupid balloon payment/adjustable rate ones. Am I going to get the government to pay for my mortgage as an "atta-boy"? NO! So screw the idiots.

I hear you.....HATE my mortgage...but am I gonna get stuck w/ one of their "balloon payments"? Noooo thxx....

[loangod]

Originally Posted by clarke

Any thoughts on the Auto Industry bailout? Personally, I say let them crash. Somebody will come in and buy up the company for pennies on the dollar and rehire all the American employees (with new, smaller contracts). That is the power of the free market. And then it will be equipped to succeed in the future. No government bailout needed.

Let them file Chapt 11, reorganize and slash the union contracts and force them to renegotiate. The UAW is the downfall of the American Auto industry.

[cowboys_junkie]

I would let them crash, but I would not let their facilities be used for anything other than automotive industrial production.

I believe you let bad business models fall, but I want to keep the ability to use these facilities in time of war.

[Stealersrule]

The automobile giants of Chrysler, GM, and Ford are very shrewd when it comes to squeezing a dollar. They see government money being available, and they are extending their hands saying me too. They know how to manipulate, and this is just what they are doing. They have special departments set up to help the vendors who sell to them through bankrupcy, when the car companies are the ones who made the vendoras go bankrupt with price fixing of supplied parts. They make theoir vendors cry unckle first, then they ease up and provide support. If the car companies want money, they need to file for bankruptcy first. Then the government can evaluate their cause and see if it is justified to provide assistance. Make the car companies cry uncle! Call their bluff!

[eoeleven]

It is time for the United States Government to FINALLY intervene in the correct way, by getting the hell out of the way.

"Greenie" taxes that place HUGE fiscal burdens on industral businesses are nice in theroy but if you make a company spend to the point where your bailing it out WTF? All taxes, fees, ect of this nature should be suspended until further notice and replaced with large scale tax incentives for companies that willing go green.

Unions, bust them all they are an outdated concept no longer needed in today's society. They have become secondary profit centers and not employee protectors. Make it real easy to decide, if a company employees "X" number of Union employees they are NOT eligible for Government "help" funds period. GM want UaW employees great no bailout, good luck. Employees will abandon the unions like a sinking ship.

Another thing not talked about much but in my mind a player in the bank problems is the fact Credit Unions are not subject to the same taxing laws as banks. Ever wonder why your local Credit Union can give you a lower rate, it is because they are tax exempt on the profits, where as the banks have to pay. So in my mind you make the Credit Unions play by the same rules (thus relieving the banks pressure to "get creative" to compete) you automatically increase your tax base and the amount of tax dollars collected with out actually raising taxes. ~this can probably be applied unilaterally to a alot of currently "no profit" tax exempt buisnesses. Real easy to tell if your CEO makes 6 figures you should pay taxes, because it means a profit is occuring. A labor of love is supposed to mean that not a fat paycheck.

To me these seem like simple little things. To others they seem drastic, but to me changing the broken system is a lot less drastic than borrowing BILLIONS of dollars from unfriendly foriegn entities like China and Dubia.

~another that I am unsure how to go about is advertising caps

we give AIG $40 million dollars, which pisses me off enough

but then I have to see them running TV ads ($50K a minute) every other commerical break too? INSANITY

the car manufactures will be even worse

[eoeleven]

Originally Posted by eoeleven

the car manufactures will be even worse

almost like I predicted the flagrant moves by the "big 3"

ABC news is running a story about how the heads of all three 'BIG AUTOMAKERS", the ones that are DYING for money so much that they are coming to Washington to beg for it, arrived in private plans at the cost of $1000s of dollars per hour.

I do not know call me crazy, but if you are coming to my house to borrow money from me you better not show up in a limo that picked you up at your private jet

I hope Washington tells them to get their arses back to Detroit and fix it themselves. With the advice that they may save a nickle of two by flying coach, driving one of their cars, or you know walking.

fat cats that put their hands out for a hand out should pull back a NUB

[cowboys_junkie]

These aren't the guys the Dems are worried about paying. They will give the Big 3 the money because Unions will tell them to do so.

[eoeleven]

here is some more proof the unions are the root of the problem for the big 3

under the new contract the UaW signed with the big 3

average hourly labor cost are $71 an hour

now the UaW is being TEMPOARILY generous and agreeing to some changes to help the big three (if $100 billion in retirement funds are shifted to union control) which would drop that to

average hourly labor cost of $53 an hour

here is the kicker that chaps my arse though, non union plants in the United States have an

average hourly labor cost of $49 an hour

PISSES ME OFF

but Josh is right the dem congress is going to bail them out because

IF the Big 3 file for bankruptcy the Judge can AND WILL void all the labor contracts and disolve debt.

The the Big 3 could redirect money that was going to bills to relocation and move to NON-UNION areas and start a new WITH OUT union employees

which as we have seen would be a minimal savings of

$22 in hourly labor cost per employee

~ another little union quirk

the NON-UNION companies not asking for bailouts have also seen a large drop off in demand but they are not reporting the same level of loses because it is easier to use temporary lay offs to off set cost with non union employees.

so tell me is it better to get the Union paid better (not the employee mind you they are seeign the same take home as non union employees) and gaurantee no temporary layoffs ?

or

to just have the whole business shut down because it cannot pay the light bill, has GM is saying?

the concept of the Union is a socialist idea long since outdated in a capitalist society, they should be tossed out like dirty bath water.

LET THE BIG 3 FILE BANKRUPTY

[eoeleven]

in a shocker to no one the liberals in congress have no problem giving away BILLIONS of dollars in tax payers money as long as one of their buddies gets to be named the CAR CZAR over it all. Which of course means a 6 figure income to do absolutely NOTHING