Detroit auto makers (The big three ) are facing some major headwind, sales of U.S. car makers are flat, and that’s after sales decline of almost 60%-75%, over 3 years 2007-2008-2009, and there is no rebound in the near future for the following reasons;
The main question is will the U.S. Auto makers be ready with the proper, appealing line up by the end of 2010 or early 2011? Meaning - the same line up they have for their traditional combustion engines – Economy- Medium- Luxury- SUV’s and Pick up trucks, I am sure they won’t.
But why? With all the “retooling” money we gave them, the mother of bail out, they won’t be ready!! (and once again, Japanese and German cars will dominate the market) The big three just can’t get rid of the old habit, teaming with the big OIL companies, getting kick backs, and relaying on the default twisted model of the guaranteed purchase of the U.S. Government, States and Municipalities.
They are using still, the old disinformation tool: “there is no demand for these kind of cars (hybrids), they are too expensive, we’ll lose money on this product”
amazingly familiar arguments we have been hearing for over 20 years, the money they get from the OIL companies, Federal and State purchase guarantees is so sweet that they just can’t reorganize fast enough, and sure enough we’ll have to bail them again.
We are handing out bail out money to a group of incompetent corrupt executives which we should have let go years ago, any college student could have done a better job.
Time and again the American people are being treated as total idiots, there is a clear message from the out going and the incoming administration, ALL of the TARP money will go to save the Greedy Wall Street gamblers, our Banking System, Mr. Ben Bernanke said today, Treasury will need the rest of the money, and !!! it might not be enough, the loses are so big, they are so defunct that no one dares to talk publicly about it, they are all insolvent, so the Senate and the house can approve the release of the 350 Billion Dollars TARP finds or not, the President will Veto their vote and will get the money rain or shine.
After gambling for years, got compensated in the most out rages way ever, for paper profits, I repeat PAPER PROFITS, the Banks, or shall we call them scoundrels, will be saved, and we the people will lose our jobs our homes, our businesses, and our most precious property OUR HEALTH
I was reading that Mr. Paulson have requested the second 350 billion dollar TARP money, I urge the legislator body, Congress and Senate to use all powers NOT to give these incompetent people a penny unless they’ll fully comply with Mr. Bernie Frank legislation which he is in the midst of drafting i.e. HELPING to curb Foreclosures.
“Frank said the legislation will include FDIC Chairman Sheila Bair’s foreclosure-prevention plan, which provides a U.S. guarantee for troubled mortgages to spur loan modifications.
FDIC Program
Paulson has declined to adopt the proposal, while Bair has said the law enacted in October gives the Treasury authority to fund a plan she said might prevent 1.5 million foreclosures through next year at a cost of $24 billion. U.S. foreclosure filings climbed 28 percent in November from a year earlier, data provider RealtyTrac Inc. said Dec. 11.”
For the last 18 months, calls for help were turned numb by the Bush administration, this is the core of the down turn, if this 350 Billion TARP money will be channeled to stop foreclosures, the criminal Wall Street bankers who took the first half of the TARP money and did absolutely nothing!!! rather than to shore up their balance sheets, cover their loses, (this money actually helped them better hide the loses) and completely stop lending, must be prosecuted and go to jail.
Today Secretary of Housing and Urban Development Steve Preston announced, like we don't know, that the Bush big time announcement of helping 400,000 families by rewriting their mortgages bombed, completely, 312 applicant, it is not clear that these 312 applicant got any help, they are “Applicant”.
It's seems like a Bush Administration disease, they come up with these big words, we'll do this and that at the end of the day we find out nothing really have worked, just like the 350 billion dollars which Mr. Paulson had to beg the Greedy Wall street criminal bankers to take from us, so they'll extend credit, thaw the credit freeze, they didn't, it's worse than before, today we learn that regardless of this humongous amount handed to them they are still losing billions “Morgan Stanley reported a $2.2 billion fourth-quarter loss “
The list of banks UBS now expects to lose money for in 2009 are Comerica Inc. (NYSE: CMA), First Horizon National Corp. (NYSE: FHN), Fifth Third Bancorp (NASDAQ: FITB), Keycorp (NYSE: KEY), Marshall & Ilsley Corp. (NYSE: MI), Regions Financial Corp. (NYSE: RF) and Zions Bancorp (NASDAQ: ZION).
Meaning that All of these folks, who took our money can't lend, they are losing, bleeding, the question is what should have done differently, do we want to hand tax payers money to losing entities which we are not sure will be there to pay us back? Or force them to consolidate so the new entity will be able to lend, which is a key condition for any help, future help? The feeling is no one in the treasury department or the white house thinks all of these bail outs threw, no one really care of any American, it's all a big show, a game for them, it's empty rhetoric.
There is another A bomb coming our way, Commercial Real Estate defaults, it must be dealt with now, hopefully the Obama administration will tackle this issue NOW, and won't lose 18 preciousness months like they did with residential Sub Prime Mortgages, small business are the back bone of America, they create jobs, opportunities and wealth, don't let them crash, attack it ASAP.
Yesterday the TARP over site board expressed their disgust of the way Paulson and Bernanke have handled the first 350 Billion bail out moneys which was handed to he banking industry….hundreds of angry readers took their time and posted their comments, most of them I have read.
I have decided to write an open letter to Mr. Paulson and Bernanke
Americans Wish List;
Mr. Please assemble the Greedy criminal Bankers who took our money to the same room where you have met them, in Washington, but this time please ask them to come up with their Check Book, they can still show up with the stretched limousines, private jets, and give them the following options
A. For every dollar they have gotten from us, they must extend credit to credit worthy Americans; small/large businesses
B. Rewrite mortgages/adjusting principles helping home owners keep the roof above their families.
OR WRITE US A CHECK BACK - FOR THE FULL AMOUNT, right now.
Regarding B, adapt the President Elect approach, forget about the speculators excuse, he said “ if my neighbor house is on fire, and the fire is moving towards my home, my first concern is to put the fire down” the bankers are throwing at us disinformation lately; that 50% of the amended rewritten mortgages are in default. It must is be checked, the conduct of the banks which “Say” we will help, we'll rewrite our mortgages is a scam, they twist and force homeowner hand since they hold the better hand, lets check the details…. Criminals rarely change, especially the ones who get Billions.
2. Yesterday our “Best Friends” the Saudis, the promoters of Wahabi Islam, the Maddrasas backers/financiers around the globe specifically in Pakistan and Sudan where terrorist hatch on a daily bases, not to mention that most of September 11 terrorist are Saudi Arabians, have informed us that they would cut output more than analysts forecast, oil prices have shot up, King Abdullah, in an interview with a Kuwaiti newspaper published Saturday,cited $75 per barrel as a favorable target. said that would be a "fair price".
I have a suggestion, actually I can say the American people have a suggestion to Mr. King Abdullah, we will give you guys our Fair Price, for our Grain, Aircraft, Military Equipment, Technology etc. specially designed for you, the fear is almost over, soon the need for the Middle East oil will be gone, Chinese, European and maybe American technologies are on the verge of introducing Plug and drive, green vehicles, in no time these technologies will improve, get better, Air Plains and Ships will use them, then you guys might have to drink the oil, and here is the punch line: if you guys will artificially, buy cutting production, will increase oil prices, there will be no reserves that you'll be able to hide, there will be no money for you to buy our product which will be artificially priced just for you.
Have no fear Mr. W. Bush, Mr. Obama, Ms. Clinton their time is up.
3.Auto Bailout Clears House but Faces Hurdles in Senate
The Detroit auto makers are really funny, blind, corrupt, have no sense of the market need, totally numb, they actually can take the bail out money, which will hand to them, rain or shine, and buy the technology, it's here !!!!!! Chinese Electric Cars and Plug-in Hybrids in Israel as of 2009 in Europe by 2010, the specification looks very promising, just go to Mr. Warren Buffet, he have major stake in this Chinese company, he'll help I am sure, he'll be glad to take a bite from the free bail out money. Give him a call....The current management must go, otherwise change won't happen, they must.
GM should stop his advertising blitz of the VOLT, waist of money, too early, it won't happen, they are stating end of 2010, but we know them, just before the date they'll announce “sorry” it will be end of 2011, give us money, more money.
My advise is: stop waisting precious Dollars that you don't have, for once get real candid with us, it will help you with us, it will repair the tarnished image of the U.S. Automakers, a little, but it's a good start.
Right after the collapse of the Twin Towers, September 11, 2001, cheering crowds went celebrating to the streets of Gaza, Cairo, Riyadh, Islamabad and other parts of Pakistan, clips shown on TV were short, plaid down, we need the OIL, we don’t want to anger our energy suppliers, lets duck, keep it quit, see our President humiliated, ridiculously dancing with the Saudi elite and say nothing.
We all wished to see the day of robust alternative energy emerges here, a fantasy at that time 2001, a dream which will change the balance between a bunch of upside down societies and the world.
Many Mumbai attacks are on the drawing board, and they’ll come, we are helpless, the weak government of Pakistan, a nuclear power, (just by writing Nuclear Power my body shivers) a “Democracy”, cannot control the secret service, the underground government support to the Al Qaeda branches, the growing Taliban influence inside and out side Pakistani borders, so the seeds are hatching.
Saudi Arabia, the patron and promoter of Wahabi Radical Islam, pouring petro dollars to the Pakistani Maddrassas, where the day starts with “ Death to America” where the seeds of Jihadists are growing, where angry clerics teach hate, killings, destruction, out of books that have carefully written to mold the perfect suicide bomber, or Mumbai killer.
We stand paralyzed, watching, knowing.
Mr. Obama was elected for a change, we need a change, we must better our helpless position, we need Alternative Energy, we MUST have alternative energy, any, if it is Plug and Drive hybrid or any other technology, just by starting to introduce it, technologies will prevail, advance, slowly, new and improved systems will be introduce and before we know it our dependence on foreign oil will be gone.
I hope that one of the first moves of the Obama administration will be is taxing the gas pump, is it a conspiracy? Whenever new energy is about to emerge price of oil drops? Incentives of new innovators, entrepreneurs crash with the price of oil? Will it happen again? Or maybe the picture of Mr. Hugo Chavez, with the fists up, chanting to $200.00 a barrel is still vivid enough in our minds - or the arrogant smile of Mr. Putin – I have Oil, Gas and money, treat me like a Super Power or else, is playing in our minds…???
It’s a matter of national security, it’s a matter of our survival, some of these dollars we are paying to the wrong people, are coming back to us by the way of September 11 attack, by the way of Mumbai attack, by the way of Iraq suicide bombers, by the way of Taliban insurgency, introducing Alternative energy in mass, will save lives, will save money, will create jobs, will help us deal with terror, any alternative energy, any…
An Old Testament story reminds me of our position, The American People, our position in the last two years, since the early/midst (2007) of the credit crunch, Sub Prime fiasco was folding and here is the story:
Yiftach Hagiladi became the eighth Judge of Bni Israel, he is described as a none scholar who gathered around himself an army of outlaws, a gangster. At this time (the year 2779) due to the Tyranny and oppression of Bnie Ammon, the Israelite have reached a point where they couldn't bear the oppression and have decided to fight the Ammonites, since they had no trained army, or no army at all the called upon Yiftach Hagiladi to fight for his people, not to mention that he was surrounded by outlawed fighters. Yiftach Hagiladi accepted the High judge positions and negotiated with the Ammonites, the intense negotiations were fruitless therefore he have decided to battel, Sichon the king of the Ammonites. Yiftach declared a vow to God and said, "If You will indeed deliver Bnei Ammon into my hand, then it shall be that whatever emerges ... from the doors of my house toward me when I return in peace from Bnei Amon, it shall belong to God and I shall offer it up as an elevation offering. Meaning will sacrifice to God.
Yiftach was victorious and remained Judge for six years.
Behold! His daughter was coming out toward him ... When he saw her he tore his clothes and said, 'Alas, my daughter! ... I have opened my mouth to Hashem and I cannot recant.'
Pinchas The high priest was there, and still he (Yiftach) says, "I cannot recant?" Rather, Pinchas said: I am the High Priest, son of the High Priest, how shall I go to an ignoramus?! Yiftach said: I am the leader of the judges of Israel, head of the officers, I shall lower myself and go to a simpleton?! Between the two of them this fortunate girl was lost from the world. Both were held accountable for her death:and condemned by God.
The conclusion of the story is that between the two big ego's the daughter was slaughtered.
We the American people are Yiftach daughter, in 2007, Our President George W. Bush, Secretary Paulson, Chairman of the Federal Reserve repeatedly told us, we will not, will not bail out the speculators, we will not bailout the wall street risk takers, they have to be accountable for the decision they made, if they are homeowners who followed a dream of bettering themselves of greedy bankers who no profit was enough for them, between the President, the Secretary the Federal Reserve Chairman and the Bankers we have reached a depression, a economic Tsunami which had depleted generations of wealth, which some will definitely die from, financial death or real one.
So what is the point, All the “Too Big To go Under” the Mega Speculators are being bailed out now, late 2008, Fanny,Freddy, AIG, Citi Bank and the rest of the crowed together with hundreds of banks, headed by criminal executive that master cover up, play with the numbers, cook the balance sheets, we the people, the small business owners, the retailers are being dealt with, maybe nowadays, we have to be patient, it will take time, a lot of us will die, close shop, will disappear, the big guys are saved, no one will be accountable.
A question will remain, why the Bush administration, the Federal Reserve and all the smart economist waited so long to help the little speculator, or the most conservative individual or business men who are being killed by the way of this Tsunami, Why a Cancer was treated with Aspirin time and again.
Numerous articles, blogs were written during this period, screaming, stating, help the home owners keep their homes, this is the read deal, if millions will lose their home, their main concern will be survival, not spending, those millions will shut their wallets, others will hold back out of psychological fear, or diminishing portfolios, 401K, pension funds and our retail economy, which 70% of it depends on spending will contract to where few will be able to weather this vicious contraction where millions will lose their jobs.
Help the homeowners, rewrite the mortgages as per Ms. Shiela Bair formula, by doing that home values will stabilized, American will see the light at the end of a dark tunnel, with a couple of major stimulus packages, sizable ones, with thawing the credit by way of forcing the big banks to do so or else-no bailout, no help- for every dollar given to them, credit should be extended, in reasonable terms, to credit worthy Americans and businesses and this long and tiering recession will be over by the end of the first Obama quarter in office, April 2008 – Hopefully.
