So much for moral hazard… 9:39AM EST December 11. 2012 – WASHINGTON (AP) — The U.S. Treasury Department said Tuesday that it has sold all its remaining shares of American International Group (AIG), moving to wrap up the government’s biggest bailout of the 2008 financial crisis. Treasury said it received $32.50 per share for its [...]
Archive for the 'Bailouts' Category
China to Europe: ‘Your worn out welfare society and outdated labor laws induce sloth, indolence and penalize hard work.’By mw | Related entries in Bad Decisions, Bailouts, Banks, China, europe
Jin Liqun explains with crystal clarity the prerequisite conditions for China’s potential role as a “white knight” riding to the financial rescue of the Eurozone. To whit – if it is not good for China, and it is not a good investment, China is not going to participate in the European Financial Stability Facility (EFSF). Then in explicit terms, with no BS, no mincing of words, and no diplomatic artifice, Jin Liqun lectures Europe on exactly the problem with the Eurozone labor laws and welfare state.
“The donklephant is a genetic monstrosity whose every moment of existence is unbearable agony.” – Jon Stewart
GM pays back $6.7B in government loans by using a $13.4B government funded escrow account in order to secure $10B in new government loans.By mw | Related entries in Bad Decisions, Bailouts, Cars, Corporate Business, Democrats, Economy, Fiscal Responsibility
All week I’ve watched GM CEO Ed Whitacre walking down a factory floor in a GM advertisement, crowing about repaying government loans while saying he could respect the opinion of those who did not want to give GM a “second chance”. It is good to know that Ed can respect my opinion of the bailout. He might be interested to know that my current opinion is that his claim that GM repaid the loan from the US Government in full and ahead of schedule is more than a little disingenuous. I hope Ed still respects me.
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Our auto company GM is “repaying” some of the bailout money early! Or so say the headlines. But the reality is a little bit different. Some background, in case you don’t remember all the payments you made to own 61% of GM. The government placed $6.7 billion in a “contingency fund” in case things got [...]
Who’s this guy? Meet Kenneth R. Feinberg, the new pay “czar” for the White House. He’s tasked with reigning in the out of control compensation at companies the government helped recently. I think it should be noted right off the bat that this is tied to executive compensation and bonuses…two pots of money that are [...]
And this is for 2008…a year when their failure nearly brought the entire world’s financial system to its knees. I don’t care if these bonuses were contractual or not. New circumstances (you know…like BANKRUPTCY!) could allow them to renegotiate with their employees. From the AP comes the list… Citigroup… Citigroup Inc., one of the biggest [...]
Not too many people are dancing over the news of GMâ€™s bankruptcy, but opinions are decidedly mixed on what the government ownership of the car company will mean. Lee Cary, of American Thinker sees the era of Government Motors dawning with coercive attempts to force a Green fleet onto American consumers. This, in Caryâ€™s opinion, [...]
All the kings horses and all the bond deals couldnâ€™t keep GM from cracking. As feared, the car giant has filed for bankruptcy. Now what? The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United [...]