The Cellar - View Single Post

tw · 09-23-2008, 07:28 PM

The Republican party propaganda machine has told their followers to oppose the bailout.

There is no way to judge what will and will not work. Once it became routine to pervert the spread sheets and to let the greedy make money on 30+ to 1 debt to equity ratios, then disaster was a forgone conclusion. Once is became acceptable for massive government welfare to home building (that causes a 40% increase in house prices), then disaster was inevitable. Massive sums money have dissappeared among those who do so little while reaping profits - stock brokers, bean counters, financial experts, etc who were (as I can tesitfy to) were not very smart in school.

Bankruptcy (or threat of same) is why these same problems did not destroy the American economy in the late 1970s. We said to NYC "Drop Dead". Only then did NYC go after their problem - top management - and then address their problem. We told Chrysler to go get bankrupt. Therefore Townsend and Richardo were disposed as being the only problem. Lee Iaccoca then replaced bean counters with car guys as the designers of cars. We stopped destroying American jobs by not buying Fords. Therefore the only problem in Ford - Henry Ford - was removed. Only then were the engineers permitted to design their first product since the 1964 Mustang. That new product saved Ford because it was the first car designed by Ford innovators in 22 years.

One factor we do know about the bailout if it is to work: it must remove top management and deny them bonuses. Only then do we tell top management in all companies who they must work for. A responsible solution would say either top management gives back those bonuses from years previously (because they want to save the company) or no government assistance will be provided. IOW management must admit either that it works for the company or only worked for themselves. We need the problem to commit to their real agenda so that all future management fears greed.

This mess is directly traceable to top management. Any solution that does not address that problem is nothing more than corporate welfare - wasted money. We know what was necessary to save corporate America back in 1979 - eliminate the problem - top management. That is what bankruptcy does to save the company, employee jobs, and stockholder value. Any plan that does not address this number one problem risks failure.

09-23-2008, 07:28 PM	#4
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	The Republican party propaganda machine has told their followers to oppose the bailout. There is no way to judge what will and will not work. Once it became routine to pervert the spread sheets and to let the greedy make money on 30+ to 1 debt to equity ratios, then disaster was a forgone conclusion. Once is became acceptable for massive government welfare to home building (that causes a 40% increase in house prices), then disaster was inevitable. Massive sums money have dissappeared among those who do so little while reaping profits - stock brokers, bean counters, financial experts, etc who were (as I can tesitfy to) were not very smart in school. Bankruptcy (or threat of same) is why these same problems did not destroy the American economy in the late 1970s. We said to NYC "Drop Dead". Only then did NYC go after their problem - top management - and then address their problem. We told Chrysler to go get bankrupt. Therefore Townsend and Richardo were disposed as being the only problem. Lee Iaccoca then replaced bean counters with car guys as the designers of cars. We stopped destroying American jobs by not buying Fords. Therefore the only problem in Ford - Henry Ford - was removed. Only then were the engineers permitted to design their first product since the 1964 Mustang. That new product saved Ford because it was the first car designed by Ford innovators in 22 years. One factor we do know about the bailout if it is to work: it must remove top management and deny them bonuses. Only then do we tell top management in all companies who they must work for. A responsible solution would say either top management gives back those bonuses from years previously (because they want to save the company) or no government assistance will be provided. IOW management must admit either that it works for the company or only worked for themselves. We need the problem to commit to their real agenda so that all future management fears greed. This mess is directly traceable to top management. Any solution that does not address that problem is nothing more than corporate welfare - wasted money. We know what was necessary to save corporate America back in 1979 - eliminate the problem - top management. That is what bankruptcy does to save the company, employee jobs, and stockholder value. Any plan that does not address this number one problem risks failure.