Showing posts with label aig. Show all posts
Showing posts with label aig. Show all posts

Tuesday, May 19, 2009

Why Is Bigger Still Better?




Haven't we learned one single thing? Is it really true that Steven Rattner, the journalist turned investor turned car czar, favors auto megastores as the future of America's car sales industry? Is it true, as I was told by a Buick dealer who's been told that despite 21 years of showing a profit, his franchise won't be renewed, and by the head of the NYS Automobile Dealers Association, that the future road map calls for the end of the Mom and Pop car dealerships?

Where I live, there are a number of little car dealerships snuggled into small towns. I'm sure they don't do a ton of volume, but they've got great reputations and their customers come back time and time again.

I've driven through areas with mega auto dealerships. It's like the Sam's Club of cars...rows upon rows upon rows of shiny vehicles, bought and paid for by the dealer, who has thrown on all kinds of options to help pay for the crushing overhead of having a mile wide parking lot.

Mom and Pop businesses are what's missing in America 2009. Mega grocery chains, box stores, cavernous hardware chains have driven out many small business owners. There is no personal connection, there is no sense of community. Sure, you'll recognize a couple of the people who work there. They'll try to be helpful. You'll appreciate it. But will you think, "Wow, that Big Box Store sure is a great place. I'd gladly pay a couple of dollars more to keep them here!" Nope. They've got no loyalty to you and vice versa.

Contrast that with how you feel toward the truly local businesses near you. We've got Kevin, the guy at the meat store. I'm a vegetarian but I still think he's great. He's always involved in our community, always cooking up a new plan to create activities for the kids or raise money for a good cause. Our local grocery store isn't as cheap as the mega store a couple of miles down the road. But it feels comfortable; it feels like they care whether we shop there or not. They offer sales when they can.

I measure it all against a place I thought was paradise when I was a kid.

Let me tell you about Cherry Valley, New York. I never lived there, but I spent most every summer there and we got to know people pretty well. It's a little town - a little village off a quiet highway in Central New York. When I was a kid, there was an ancient A&P grocery store, Rury's market, a pharmacist, and a general store.

Mr. Mackey was the druggist. He was a nice old guy who'd spent his whole life in this Andy of Mayberry town and knew everyone there. When I got stung by a mystery insect and swelled up like a turnip, he calmly handed my mother an antihistamine. When I turned my ankle, he sympathetically offered OTC painkillers and a pair of crutches. When he retired, the drug store closed. There hasn't been a pharmacist there in years.

The A&P was nothing the company would later be willing to claim. It was in an old wooden building with a massive front porch and you had to roll the tiny carts around poles and hang on lest the warped floors carry them off into a row of dusty canned peaches. But the lady at the old metal register knew where everything could be found and she always had a piece of stale candy handy for a grubby little kid who'd managed not to careen into a display of crackers.

Rury's Market was just a few doors away. A small red building with a wooden screen door that had a very satisfactory slam, it was great fun to stop in for a loaf of bread or a jar of grape jelly. There was always the chance to someone would ask Mr. Rury for something on top of a stack of fifty foot high shelves (remember, I was a kid at the time) and I'd get to see him climb the little wooden ladder and extend the long pole with the metal grabbers on the end. Ha! Another successful catch!

The Friendly Corner Store was the place for candy. Lots of candy. I remember the lady behind the counter always wanted to know how long we were up for, what we'd been doing, how old I was...she was very friendly indeed.

All of these businesses were within the space of one block. A stroll of another block would take you to Robert Lafler's plumbing supply store or Joe Shipway's lumber yard.

Joe Shipway, even when he was a million years old himself, used to climb into his ancient Chevrolet and drive food out to the town's shut-ins.

Nothing is left except Rury's. It's all been replaced by larger stores about a twenty minute drive away. There's a convenience store in town. There are a couple of businesses - but the bedrock stores of small villages are gone, replaced by monster chain stores in bigger towns.

Didn't AIG teach us anything? Is anyone noticing that it's the small town banks that aren't in trouble?

We keep talking about preserving small town values while destroying what helped create the communities we love.

Bigger isn't always better.

Wednesday, March 18, 2009

AIG - The Symbol of Our Differences

Rush Limbaugh thinks we've got to let those millions of dollars in bonuses go to AIG executives. Here's the excerpt listed in the Daily Kos:



The peasants with their pitchforks surrounding the corporate headquarters of AIG.

And the president's own teleprompter is telling him to say that these executive are greedy and selfish and this is inciting people to behavior that could lead to violence if their threats are acted out.

President Obama's teleprompter tells him to say that the tired ways of the past didn't work, that we need a new way. Here we go; we've got the new way. We've got peasants with their pitchforks phoning in death threats at AIG. We have members of the United States Senate and the United States House of Representatives sounding like communist dictators.

This $500,000 limit on executive pay -- let me tell you why it won't work. New York City will die. ...Without the super wealthy in New York, it's over.

LIMBAUGH: Why in the world -- or how do you get to the point where you're going to bail out the company, but you don't want the employees to get paid?

LIMBAUGH: This is not just executives, but executives are employees, too. And in --

CALLER: I understand that.

LIMBAUGH: -- many of these firms, Nathan, their salaries are pretty small. They work on bonuses, via contract based on merit.

Merit, Rush? These are the guys that sent AIG into the red. What merit?


I have relatives who would call me a screaming liberal. They, I guess, are what you would call knee jerk conservatives. Neither label is accurate. We're thoughtful people who are trying to sift through what we're told and come up with what we believe is the most correct philosophy to guide this floundering ship to safety.

Conservatives and Republicans are big believers in free enterprise. They believe that if you leave business to its own devices, a kind of Darwinism will prevail. The strongest will survive.

They would argue that Liberals want a nanny state that pats our flabby bottoms from cradle to grave. Maybe some do. That wouldn't be me.

After a great deal of thought, here's my basic problem: free enterprise has a basic faith in human nature. Good business practices, good people, hard work will thrive. The weak shall fail. But history has proven that this isn't true. Big, greedy, manipulative and dishonest business thrives and flourishes - until it collapses in on itself because it is, at its core, hollow or rotten. And then the individual taxpayers in the form of the federal government are supposed to prop it up.

No? Enron. AIG. The American auto industry. Go down the list of companies whose basic operating motto was drawn from Gordon Gekko and look at who's taking the bailout money.

Government has to regulate business, and regulate it with a firm hand. Because human nature is, essentially, greedy. We're not talking the poor, dying Mom and Pop industries. We're talking about the mega-companies. Bank of America buys Merrill Lynch, then suddenly isn't looking too healthy itself. IBM wants to buy Sun Systems while it lays off thousands. Right now it can afford to buy and maybe it's a good business decision. Maybe. IBM's not in the humanitarian business, but there is something basically wrong with discarding thousands of workers, then expanding. And it's not just business.

Look at our legislators. Look at the money they make. Look at the deals they make to get more. And look at the deals they make to stay in power. We were supposed to have citizens in government, who served a term and then went back to their own lives. Politics has become a career. Look at the ancients in the US Senate! Look at the hungry young up and comers who will do and say anything to take their places! Don't even think of running for President if you haven't done your time in the legislature - government is now a form of business.

And that creates a contradiction, as I do believe government has to flex its muscle and stand down businesses.

So maybe the answer is to stop pretending our government is a democracy. Stop pretending that anyone can get elected to office. Acknowledge that the US government is a business, just like each state's government is a business. Regulate them, too. Run them efficiently, make them conform to the same regulations they impose on private industry...and make their standards even tougher.
Mandate retirement. Mandate ethics and police them.

As for the fear that socialized medicine, caring for the homeless, creating equity in taxation creates some sort of soft, snivelling welfare state, just stop it. How does it build strength of character to work a lifetime, then find you can't afford healthcare? How does it encourage creativity to work ever longer hours for pay that doesn't keep up with the basic cost of living?

When is the ridiculous myth that wealth trickles down going to finally be seen for the elitist garbage that it is? If you work hard, have a brilliant idea that pays off and make a fortune, good for you. Enjoy the fruits of your labor. But pay the same tax rate as the kid who can't afford to finish college and is struggling at a minimum wage job.

And if you're a greedy corporate executive who offers nothing special but a Blackberry full of influential connections and a knack for doctoring the balance sheet, drop dead. I won't be expecting to benefit from your purchase of six vacation homes, a private jet and every ostentatious toy you can find to prove to yourself that you're successful. Just pay your taxes and pray the government never actually gets the power it ought to have.

Huh. I guess I'm angry.

Friday, September 26, 2008

The Day of Reckoning

It's here - but is it for Wall Street or for us? That tongue in cheek Trends Institute suggestion isn't an isolated idea... here's a similar one that just arrived in my inbox:

DREAM ON:
I'm against the $85,000 000
bailout of AIG.
Instead, I'm in favor of giving $85,000,000,000 to America in
a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free.
So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500..00 in their pocket.
A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it'll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent's medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out
a puny $1000.00 "vote buy" economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG – liquidate it.

Sell off its parts. Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work."
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion
We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .
And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.

Birk
T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

And what about this woman? Why isn't she being chased down by the media and given a soapbox? Marcy Kaptur is my hero of the moment.


http://www.youtube.com/watch?v=S27yitK32ds&eurl=http://dotconnectoruk.blogspot.com/2008/09/lets-play-wallstreet-bailout-rules-are.html

Have you heard the reports that troops are being recalled from Iraq to train in "crowd control"?

http://www.armytimes.com/news/2008/09/army_homeland_090708w/

Wednesday, September 24, 2008

The Craziest Good Idea I've Ever Heard

TRENDS RESEARCH INSTITUTE SUPPORTS MODIFIED
BAILOUT PLAN


RHINEBECK NY 24 September 2008 -- The $700 billion bailout plan now before

Congress could re-invigorate the economy, asserts Gerald Celente,

Director of TheTrends Research Institute. But he warned that success

will require certain revisions.


The Trends Research Institute has thoroughly analyzed the exhaustive

3 1/2 page document presented to Congress for approval.

"We read every word of it!" said Celente.


"While we don't agree with bailouts in general, if Congress decides to spend $700 billion of taxpayer money, it must be done efficiently. The revisions we are

suggesting, though minor, are crucial to implementing the plan successfully,"

Celente said.

"The bailout plan being debated before Congress,

'The Troubled Asset Relief Program' (TARP) is fraught with uncertainties

and unanswerable questions," said Celente. "On the other hand,

The Trends Research Institute's revised plan is guaranteed to stimulate

economic growth, reduce unemployment, lower taxes, eliminate consumer debt and balance the budget," Celente predicts.

Under TARP, US Treasury Secretary Henry Paulson is granted sole authority

to dispense $700 billion as he sees fit. Paulson said the money would be

used to mainly cover losses incurred by failing financial firms, brokerages,

investment banks, leveraged buyout firms, insurance agencies, and any

other financial entity deemed "too big to fail."

Under the alternative Trends Research Institute Program (TRIP),

$700 billion would not be dispensed at the sole discretion of

the Economic Czar. Rather, under TRIP the $700 billion would be

distributed equally among the 200,000,000 taxpayers who put the money up.
"TRIP is not a bailout plan, it's a stimulus package," said Celente.

"Unlike TARP, which is doomed to fail, our plan provides immediate relief.

With TARP all the money goes to a handful of failing institutions with

the hope that some trickles down to the working public.

"With TRIP, each taxpayer will directly receive a $3.5 million stimulus check.

This will instantly generate economic growth, end the housing crisis,

reduce unemployment, eliminate consumer debt and balance the budget.

"There is no time to debate TRIP," warned Celente. "Immediate action

must be taken. Inaction or delay risks an economic Armageddon. While

Congress is wrangling over how much to pay overpaid CEO's under TARP,

TRIP could be instantly written into law, solving the economic woes of our nation."

Trendpost: Once you receive your TRIP check, try to refrain from

buying more than one Ferrari. Invest wisely. Consider putting your

money in a Trends Research Investment Plan (TRIP 2). While not

yet government sanctioned, we expect swift approval once TRIP becomes

law. "If Goldman Sachs and Morgan Stanley can become banks

overnight by government decree, why not us?" asked Celente.

Call to Action: If you want your fair share of the $700 billion,

call your Congressman and Senators. Tell them you want TRIP not TARP.


Now that you're excited (I sure was!) I must add the post script. This notice was followed by a disclaimer. Apparently it was meant to be satirical...and worse yet, the actual number each taxpayer would get if the 700 billion was divvied up was 35 hundred...not 3.5 million. I don't think 3500 will do much to help most people faced with no job or the loss of their homes.


Thursday, September 18, 2008

I'm With You, Chicken Little

You've probably heard that old proverb...or is it a curse..."May you live in interesting times."

This is it, kids. It doesn't get much more interesting than this.

Lehmann is kaputski. The USA is now in charge of the alphabet gang...AIG, Freddie Mac and Fannie Mae. It's propping up Bear Stearns. And Bank of America is taking over the planet, since it's one of the few institutions left that can afford to.

I wonder where the federal government's getting all this bailout money. We're already trillions in debt. We're spending billions every month on a war that doesn't show any signs of concluding. Common sense tells you you can't keep spending what you don't have.

Gerald Celente is an economic forecaster who works out of a quaint old building that used to be my dad's favorite grocery store. He's been called a hack, a quack and a doom and gloomer...and now he's being called a genius. How come? He predicted this. I spoke with him months ago and he assured me we were in for the worst economic time this country's seen since the so-called Great Depression. (What was great about it I couldn't say.) He was vilified by some in the press for his extreme views. The acid dripping off the newsprint sounded suspiciously like it was written by someone who was very afraid of hearing something they didn't want to hear. Now Oprah wants to hear what he has to say. Celente's website is a bit over the top, but what he has to say has the uncomfortable ring of unwelcome fact. Read for yourself.

http://www.trendsresearch.com/


In case you want to paint Celente as some kind of alarmist renegade, meet Nouriel Roubini. He's a professor at NYU who, until this week, was known as Dr. Doom. Now he's known as a pundit.

http://bucknakedpolitics.typepad.com/buck_naked_politics/2008/08/how-reality-v-1.html

http://www.rgemonitor.com/blog/roubini/

United Socialist State Republic of America. Oh my.

I mentioned Roubini to Celente. Celente's not one to give compliments lightly.

"Oh, him," he said. "I like him."

So two economic forecasters who were considered sensationalist Chicken Littles are now being hailed as economic Edgar Cayce's. Funny place, funny race, as HSO often says.

But if we're now going to credit these guys with some smarts, what do they say is next?

Celente pulls no punches.

"This is no recession. It's a depression. And it's going to get a lot worse."

What does he suggest? Cut back. Economize. Stay close to home. Buy local. Work close to home.

"Support your community. The only way we're going to get through this is by building our communities and supporting each other."