BIG GOVERNMENT BAILS OUT BIG BUSINESS: WHAT HAPPENED TO BAILING OUT CONSUMERS DIRECTLY

Despite Bailouts if consumers can’t or won’t buy PRODUCTS, GOODS AND SERVICES these industries will fail anyway

Big Government is bailing out big business. Citigroup is another example. While our politicians continue to prop up various sectors of the economy consumers like you and me sit on the sidelines not consuming products, goods and services. So what does that mean? Well Citigroup like so many banks is sitting on “toxic loans”. The loans are toxic because Americans are defaulting and behind on mortgage payments, car loans, credit cards and many just trying to provide the basics for their families. With no plan to protect these people the circle will continue to go around and around because millions – tens of millions - of consumers won’t support our economy by buying goods and services because they can’t. This will assure every bailout scenario will fail over time.

50,000 workers laid off at Citigroup. Do you think those people and so many others unemployed and struggling to make ends meet will actually buy a new car, big ticket items, electronics, travel, dinning and the list goes on. Certainly not. Even worse when the years of financial woes to come continue to batter people’s credit rating there will be segment of our society that just can’t or won’t buy things. Forget about banks tightening credit, tens of millions of consumers won’t even qualify to come back into the market to support our failed and failing economic sectors. Tens of millions of consumers will have terrible credit ratings and be shut out. An immediate impact would be to expunge 30, 60, 90 days lates for people trying to pay their bills over the last 12 months and next 12 months. That would have an immediate “mainstream” impact and assure future spending. Otherwise this economy will not recover any time soon especially due to lack of consumption by those hobbled unworthy credit consumers.

Here is an example. The auto manufacturers. Even if they are bailed out their future is bleak. So they survive for a period of time but have no hope of meeting sales requirements in the future. What of airlines, banks and wait for retail among others that will for certain underperform because consumers just aren’t what they used to be. Why isn’t a team of experts, leverage buy out, investment bankers, economist and others with real world experience going into the segments and buying assets that these “To Big To Fail” businesses sit on while their hands are out to government. Why isn’t GM spinning out and taking public GM finance, GE Finance, all the brands they have acquired and rolled up over the past 20 years. Now there is a plan – even if we loan them money we need to break up the conglomerates and unlock shareholder value. If the companies are too big to fail then break them up and fast.

I have spoken to thousands of consumers and everyday people, unemployed, underemployed and credit constrained. Almost 100 percent of them are not buying things – especially big ticket items – and are being forced to raid their stock holdings and 401ks to survive despite huge penalties. With Desperality comes Depression. A deep recession, and we are in one, needs to have consumer support to turn around. There is no way the American consumer of the 90’s and early 2000’s are going to be even close to the sales numbers this year and for the foreseeable future. Without us, you and me, big government bailing out their donors and friends in big business have a failed strategy.

Here comes our President elect. Even now, and I have been saying for a year, the bailout packages combined are well over $1.5 trillion and will approach $2 trillion fast. Well here is a plan to save us! Consumers first.

1. The US takes its next $700 billion and places it in a trust to insure every American’s credit risk. Now that would be a stimulus and guess what assure banks that their portfolios aren’t toxic.
2. Every American gets a 30 day holiday on payments so they can catch up on their bills. Yes this would stifle collections but frankly we are already giving these institutions money anyway.
3. Support every American in an effort to refinance the entirety of their debt under one payment scheme again supported – not paid for – by the government guarantee program.
4. Expunge 30 – 90 day lates across the board over last 12 and at least next 12 months to assure that consumers will participate and can participate in the economy or we will sink.

Then Economy

1. We have an Office of Homeland Defense. Wouldn’t it make sense to create an office of Financial Defense to regulate and oversee the vulnerability of the America heart and soul – Capitalism. We are wide open to the real threat of Economic War by most any nation on earth. Not a shot needs to be fired to crater our economy and therefore our way of life.
2. American Board of Directors comprised of the most capable – real world – executives to oversee all the endeavors of runaway government and make sure we only spend what we have not to borrow against our future. If we had real world executives the US would not be bankrupt and can be turned around from the brink of catastrophe,
3. Pay off the deficit by requiring 10% of all portfolios in the US to be pooled into a deficit fund to retire our debt. All the intuitions must invest 100% of the money anyway why don’t we require that all invest in our nation. We would raise over $10 trillion in the first year, pay off the deficit and their stock portfolios would skyrocket.
4. Immediately step into the world markets and buy back as much currency as we can. The US dollar is soon to lose its status as the underpinnings of world trade. Worse the FED is printing money 24-7 flooding the market with dollars that will roost and cause inflation or perhaps hyper inflation. What would happen if a country like China or Russia dumps a hoard of dollars on the market. Or worse doesn’t show up at our next treasury action. You have it – Economic War.

I am certain that if American consumers don’t get real relief the economy will continue to erode. If we send out say a $1000 check to everyone that qualifies I will be sickened. That is a voters bribe and does nothing for the eroding credit and future credit worthiness that supports spending. They will say it stimulates spending and consumption and it will for some but frankly its flawed, ridiculous and I certainly don’t want Russia and China among others to lend me money or write me a check.

ECONOMIC PROZAC: DEPRESSED CONSUMERS CAN'T BUY GOODS AND SERVICES

Bail out after bailout of big industry won’t help if American’s can’t or won’t consumer their products

A depression is looming over America. Recession is already upon us and American’s inability to afford their current debts and worse companies’ inability sell goods to them will exasperate the economic woes. Regardless of the American people’s vote, the bailout of big businesses will continue, although I suspect overwhelmingly voters would choose bailing out themselves too. Why is this a good idea?

Much of the trouble with banks, auto manufacturers and definitely retailers to come is that consumers are strapped with debt, having lines of credit and credit cards cut off and can’t squeeze any money out to support the industries being bailed out. This should be at the core of the bailout. My solution calls for a converged strategy where consumers get a cash infusion and loans are provided to failing companies. The convergence occurs when consumers clean up their balance sheets so big business won’t have so many bankruptcies and defaults, the core of the problem, while businesses shore up their balance sheet while assuring more spending in the future that is necessary to bolster sales.

Worse millions of Americans have been burdened with 30, 60, 90 day lates on their credit reports further assuring that future access to loans for houses, cars, appliances, air travel etc.. will not be available for up to a decade. This issue alone will cause havoc long term by denying the fundamental supporters in our economy the ability to consume. Bailouts are only a short term fix. With programs focused on simply cash for the big companies we fail to see the long term problems and the ongoing defaults and bankruptcies ahead.

A balanced approach. If government is going to roll up bad loans, thus far in real estate and soon in credit cards, student loans and all other credit markets, then why don’t they attack the core issue to help every American pay their bills. Removing all late payments from the credit bureau over the past year and insulating the next year is a great way to relieve stress and assure a strong future economy. A balanced approach of spending our money to support industry while giving Americans enough money to pay off their revolving debt, up to 100 thousand dollars, will change the game. Fundamentally another issues looms long term. Our credit addicted nation needs to transition to a savings and investment nation again like prior to 1960. Why doesn’t the government issue economy bonds to US citizens instead of selling and refinancing our debt all over the world. This will provide every American a way to have a nest egg while the government still gets to use the money.

The many ways to solve our economic woes are out there. But if we do not fundamentally release the consumer’s burdens and clean up credit bureau reporting the US economy will suffer long term and assure we sink straight into a depression. The government should be issuing Economic Prozac to assure American consumers will be there after the industries are cleaned up. A fair and balanced approach.

ECONOMIC PROZAC: DEPRESSED CONSUMERS CAN'T BUY GOODS AND SERVICES

Bail out after bailout of big industry won’t help if American’s can’t or won’t consumer their products

A depression is looming over America. Recession is already upon us and American’s inability to afford their current debts and worse companies’ inability sell goods to them will exasperate the economic woes. Regardless of the American people’s vote, the bailout of big businesses will continue, although I suspect overwhelmingly voters would choose bailing out themselves too. Why is this a good idea?

Much of the trouble with banks, auto manufacturers and definitely retailers to come is that consumers are strapped with debt, having lines of credit and credit cards cut off and can’t squeeze any money out to support the industries being bailed out. This should be at the core of the bailout. My solution calls for a converged strategy where consumers get a cash infusion and loans are provided to failing companies. The convergence occurs when consumers clean up their balance sheets so big business won’t have so many bankruptcies and defaults, the core of the problem, while businesses shore up their balance sheet while assuring more spending in the future that is necessary to bolster sales.

Worse millions of Americans have been burdened with 30, 60, 90 day lates on their credit reports further assuring that future access to loans for houses, cars, appliances, air travel etc.. will not be available for up to a decade. This issue alone will cause havoc long term by denying the fundamental supporters in our economy the ability to consume. Bailouts are only a short term fix. With programs focused on simply cash for the big companies we fail to see the long term problems and the ongoing defaults and bankruptcies ahead.

A balanced approach. If government is going to roll up bad loans, thus far in real estate and soon in credit cards, student loans and all other credit markets, then why don’t they attack the core issue to help every American pay their bills. Removing all late payments from the credit bureau over the past year and insulating the next year is a great way to relieve stress and assure a strong future economy. A balanced approach of spending our money to support industry while giving Americans enough money to pay off their revolving debt, up to 100 thousand dollars, will change the game. Fundamentally another issues looms long term. Our credit addicted nation needs to transition to a savings and investment nation again like prior to 1960. Why doesn’t the government issue economy bonds to US citizens instead of selling and refinancing our debt all over the world. This will provide every American a way to have a nest egg while the government still gets to use the money.

The many ways to solve our economic woes are out there. But if we do not fundamentally release the consumer’s burdens and clean up credit bureau reporting the US economy will suffer long term and assure we sink straight into a depression. The government should be issuing Economic Prozac to assure American consumers will be there after the industries are cleaned up. A fair and balanced approach.

OLIVER TWIST: PLEASE SIR CAN I HAVE MORE MONEY FROM THE GOVERNMENT

Glynn’s Appearance on Fox news underscores predictions of industries with their hand out

It’s a run on the Federal Government by many industries and giant companies. Big companies are running to the government for help – AGAIN! Auto, Finance, Airline and there are many more mouths to feed. The cascade of the housing and financial meltdown is rippling through every sector of the economy and it’s a worldwide cotangent. Even China is being hurt and had to implement a stimulus package. When do the handouts stop!

The most recent proposal to bailout the auto industry and here comes AMEX adds to the long and growing line of companies seeking government handouts. Although proposed investments are being considered in businesses and loans carrying high interest with warrants it is still just a drop in the bucket. $700 billion is not enough and I suspect it is going to at least $1.5 trillion over the next year. And what we don’t see is the off US balance sheet money being used to help industries suffering front the effects of long term cancer.

The government is wrapping feeble businesses and industries with band aids so much that they look like a mummy. Mummies are already dead when wrapped and this is true for many companies and even industries that continue to line up with their dead hands out. The Ferry Man skeleton we are all familiar with wants a coin in its bony hand to get across the lake. In this case the lake is like the Great Lakes and the shore is so far away many of the companies will drown because of terrible management, unions and the inability of American consumers to consume. These are the fact and wait until retail is hammered this Christmas and forced to come to the government with a hand out. I say chop it off. The government is trying to be Rumpelstiltskin but the spinning of hey into gold isn’t going to happen.

We all want solutions and the cancer this nation faces is the deficit and the banks not lending and cutting off credit without methadone. And when this is all over, which will be a long time, consumer will emerge with horrible credit – 30, 60 and 90 day late or worse bankruptcy. Everyone is hobbled and millions won’t be able to access decent loans and credit cards, auto loans etc in the future. Why doesn’t someone give relief there and allow consumers trying to pay their bills to have their records wiped clean if they have had any negative reporting over the last year. If someone doesn’t recognize this as a major consumption problem then we are blind and this will trickle right down to small businesses, retail, airlines and every industry that requires US consumers to consume. This alone will exasperate the long term crisis.

Why don’t these giant companies immediately begin selling off profitable assets and businesses and even taking them public to unlock shareholder value. GM finance, GE finance and AMEX insurance for example. All huge value producers and obvious vehicles to raise capital though spin offs and IPOs. Also, why aren’t we tackling the deficit – I offered up the 10% solution that I believe is a revolutionary opportunity for everyone. I don’t propose we shut down the auto industry but I do want a bridge loan provided and then a debundling of assets as I would require in other industries. All these business have acquired so many companies throughout the 80’s and 90’s that they are now way upside down and just too big. We should assemble a group of turn around and Leverage Buy Out groups immediately to replace management and get these companies profitable as a condition of any loan or hand outs. These people are experts in unlocking value and have 100’s of billions to participate as a partner in the plans.

There are so many capitalist plans that can be implemented and if we don’t pursue them or force them to happen this will continue to be a cancer we cannot recover from. Worse it has spread to a vast group of consumers that just are out of the consumption game and this will perpetuate the pain everyone is undergoing. With or without our input these bailouts will happen. And the line up just will not end until government puts its foot on the necks of the failing industries and get out of the commercial lending arena.

Conservative Talk Radio and Liberalism: Time to Pick a Fight!

The Liberal bent in the media, TV and Newspaper just elected our President

We just learned that one of the most powerful weapons in the 21st century is the Media. Do you think the founding fathers had any idea that our country’s free speech and the vehicles of Liberalism would impact our county’s direction in such a way. The mainstream media in America has painted you and me into a corner.

I think we knew that Obama was going to win and Congress was going to change. But how did our nation allow the Liberal media bias to essentially coerce Americans to vote for Obama. Conservative radio has power for sure but measure that against the power of TV and Newspapers that were so bias it had a massive influence on molding voter’s decisions. How does the conservative media even fight against such a machine. And worse how about that machine having elected one of their own and on the agenda is a direct goal to crush conservative radio.

I think it’s illegal and unconstitutional for the media to have such an impact on our democracy. Freedom of speech never envisioned this and frankly these influences want to take away Republican’s freedom of speech on radio. Do you find this appalling! I believe its criminal. Think of the nation represented and influenced only by the mainstream media and conservative talk radio muzzled or hobbled. Right now the competitive advantage for airtime and public opinion impact is minimal for the radio against other mediums.

I always like to provide and opinion and solution. With well over $20 billion spent on elections across the nation – clearly almost $2 billion on the Presidential election there is no way the mainstream media is going to give up all that money in advertisement. But I believe it is so damaging to our democracy that we have to have a constitutional referendum to halt all advertising in America for politicians. I want only public service broadcast done and just the facts. Then send every American the resume of the candidates and a basic guide to their positions done by a 3rd party. That is it – a format I believe can take our country out of the hands of these fanatics. That is the only thing that counts when our country elects a CEO. Imagine the current process even being considered in recruiting a new CEO.

Do I think this will happen – not in a million years. But in the meantime if our Democracy is so influenced by the Liberal press as it was this election and we don’t expose it for what it is – our Democracy (republic), well oligarchy if we are honest, is happy to lead the ignorant and undereducated American public right by the nose. If the mainstream media wants your opinion – I assure you they are happy to give it you.