Big Three Automakers, UAW Go Begging on Capitol Hill

Other Than Lehman, Who’s Not Too Big to Fail?

• Automakers beg for aid as their bailout bill stalls - Associated Press
• Big Three try to jumpstart U.S. bailout - Agence France Presse
• GM’s Wagoner: Bailout needed to save U.S. economy from ‘catastrophic collapse’ - Reuters
• Support unravels for Detroit’s share of $700 BN - Detroit Free Press
• Mulally defends Ford’s decisions - Detroit Free Press
• Automakers ask for federal help - Washington Post
• Automakers make their case to Congress - New York Times

Transcript: President-Elect Barack Obama and Michelle Obama on ‘60 Minutes’ | November 16

(Source: CBS News)

(Narration) Steve Kroft:Since Barack Obama was elected the 44th president of the United States 12 days ago, he has largely remained out of sight, getting high-level government briefings and conferring with his transition team. But he surfaced on Friday afternoon in Chicago, alongside his wife Michelle to give 60 Minutes his first post-election interview.

It covers a wide range of subjects including the economy, the ailing automobile industry, the government’s $700 billion bailout program, their visit to the White House, the emotions of election night and the quest for a family dog. You’ll hear all of it. But we begin with the president-elect and his thoughts about the new job.

Steve Kroft: So here we are.

President-elect Barack Obama: Here we are.

Kroft: How’s your life changed in the last ten days?

Mr. Obama: Well, I tell you what, there seem to be more people hovering around me. That’s for sure. And, on the other hand, I’m sleeping in my own bed over the last ten days, which is quite a treat. Michelle always wakes up earlier than I do. So listen to her roaming around and having the girls come in and, you know, jump in your bed. It’s a great feeling. Yeah. Read more

Full Text: President George W. Bush, Speech on the Financial Markets and World Economy, Manhattan Institute, November 13

(Source: White House Press Office)

THE PRESIDENT: Thank you very much. Please be seated. Thank you. Larry, thank you for the introduction. Thank you for giving Laura and me a chance to come to this historic hall to talk about a big issue facing the world. And today I appreciate you giving me a chance to come and for me to outline the steps that America and our partners are taking and are going to take to overcome this financial crisis.

And I thank the Manhattan Institute for all you have done. I appreciate the fact that I am here in a fabulous city to give this speech. (Applause.) People say, are you confident about our future? And the answer is, absolutely. And it’s easy to be confident when you’re a city like New York City. After all, there’s an unbelievable spirit in this city. This is a city whose skyline has offered immigrants their first glimpse of freedom. This is a city where people rallied when that freedom came under attack. This is a city whose capital markets have attracted investments from around the world and financed the dreams of entrepreneurs all across America. This is a city that has been and will always be the financial capital of the world. (Applause.) Read more

Treasury Bailing Out AIG Again

Will There Be Spa Trips and English Hunting Excursions This Time?

I sure hope the executive pigs at AIG get it this time.  After all, the last time our tax money was used to prop up their failing business, they spent hundreds of thousands on a West Coast spa and an English hunting trip.

This morning, the U.S. Dept. of Treasury announced the federal government was upping the AIG bailout ante by $40 billion — bringing the taxpayer funded tab to keep the company solvent to $150 billion.  Additionally, AIG is getting a better deal today on the interest it is paying the federal government for loans the public is backing.  As this once shining capitalist jewel becomes nationalized, that means the public accounts will reap less from the bad business decisions sown by AIG executives.

One must also remember that just weeks ago, New York Attorney General Andrew Cuomo told the insurance company that he was able and willing to ‘help’ them do away with golden parachutes, executive pleasure outings and huge bonuses.  Then, U.S. Rep. Henry Waxman found that former AIG exec Joseph Cassano, who ran the company’s financial products section into the ground and left AIG in February was being paid $1 million a month - for nothing - even as the company slurped up taxpayers’ money. Read more

Bank Failures Surging in 2008

The last couple of times I’ve noticed that banks are failing it’s always on Saturday, as the FDIC quietly swoops in and takes over on a Friday afternoon.  It seems like it’s happening more and more often so I took a look at the FDIC’s website.  There is a spike this year, we’ve had 19 FDIC insured banks fail this year.  The record I found only went back to 2000, there is a chart below.  41% of the bank failures in the last eight years have occurred this year.  33% of U.S. bank failures since 2000 have happened since July of this year. 

Security Pacific Bank of Los Angeles and Franklin Bank of Houston, Texas became casulties on Friday.  I’m looking at these numbers, the jobless rate, the housing bubble, Ford’s and GM’s woes - the list goes on - and I’m thinking that all Barney Frank, George Bush and Henry Paulson have done is throw $700 billion at Wall Street. 

Text: Prof. Nouriel Roubini’s Congressional Testimony, October 30 | Dr. Doom Speaks

Prof. Nouriel Roubini testified today before the U.S. Congress Joint Economic Committee.

Click Here for Roubini’s Written Testimony (PDF)

Text: Alan Greenspan Testimony | Congress | October 23

The following link is Alan Greenspan’s testimony before the House of Representatives Committee on Oversight and Government Reform in Washington today.

Click Here for Greenspan Testimony

The U.S. Government Lie: $700 Billion Bailout

When the U.S. government begins renaming terrible things like killing civilians with misplaced bombs “collateral damage,” we should all know we’re in trouble. When the media doesn’t challenge this government gobbledy-gook but rather adopts it, we’re in bigger trouble. The de-sensitizing has begun. Read more

Cat bounces Monday – Dies again today – What’s in store for tomorrow?

DOWn over 700

• Dow loses 8% over recession fears – CNBC
• U.S. stocks plunge most since 1987 – Bloomberg
• Dow declines 733; S&P 9% - Wall Street Journal
• Plunge in stocks Highlights ailing economy – New York Times
• Most of Monday’s gain is erased – New York Times
• Wall Street plummets – Reuters

One Year DJIA Chart

Bernanke, Other News & Analysis

• Economic activity weak across U.S.: Beige Book – Reuters
• Bernanke says U.S. economy faces big threat – Reuters
• Fed considers more cuts – Wall Street Journal
• Bernanke says bailout will need time to work – New York Times
• Video Link: Bernanke’s Address Courtesy of CNBC

If this doesn’t piss you off …

… I Don’t Know What Will

The Associated Press is reporting tonight that a week after the federal government provided American International Group, Inc. (AIG) an $85 billion bailout, the pigs at the company spent $440,000 on a luxurious executive retreat. An excerpt from the AP report:

WASHINGTON (AP) - Less than a week after the federal government had to bail out American International Group Inc. (AIG), the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company’s meltdown said Tuesday.

The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy.

The retreat didn’t include anyone from the financial products division that nearly drove AIG under, but lawmakers were still enraged over thousands of dollars spent on catered banquets, golf outings and visits to the resort’s spa and salon for executives of AIG’s main U.S. life insurance subsidiary.

The report goes on to quote the sanctimonious U.S. Rep. Henry Waxman, D-CA, talk about the economic suffering of “average Americans.” After the poor showing over the past two weeks by Democrats and Republicans in Congress in dealing with the “financial crisis” it’s hard for me to hear any of them go after the bloated investment class while their public policies enable rampant greed and do not provide accountability for companies which have cheated shareholders.

The Smoking Gun has the invoice from AIG’s retreat.

Bailout Bill’s Value to Economy in Long Term Worth the Expense?

Apparently, the first Wall Street Bailout wasn’t big enough for the House Republicans and Democrats who voted against it on Monday. Congressional leaders from both parties are now saying heading into Friday’s planned vote that they’ll have the support they need to saddle the federal government with $700 billion in junk investments and billions more in tax breaks. What doesn’t appear to be in the bill, as passed by the Senate, is even the beginning of rulemaking or regulation to see that the investment class in New York and Washington doesn’t do this to the rest of us ever again.

It still seems ironic that all of the “free market” politicians in Congress are lining up behind what appears to be a huge social program for yachtsmen and polo players. The question tonight is will the action in Congress do anything at all constructive for an American economy that seems to be leading the world only due to the sheer size of an inefficient health care system and more imagination than value in our investment markets.

Full Text: Senate Bailout Bill – All larded up to 451 pages!

Treasury Secretary Henry Paulson’s original plan was three pages. The House rejected bill had turned into 102 pages. Tonight, the Senate is poised to pass a bill that is 451 pages long. Wonder how much pork the sanctimonious McCain is voting for tonight?

Click Here for Full Text of Senate Bailout Bill

Ohio News Roundup – October 1: Obama leading, McCain Complaining, Payday lenders, Brunner, Bailout, Sherrod Brown, Voinovich, Gov Approval Rating, Strickland establishes economic growth group

Presidential Politics and Election News

• Quinnipiac: Obama lead widens in Ohio, other states – Columbus Dispatch

• Race, unfamiliarity could defeat Obama in Southeast – Columbus Dispatch
• Ohio House battle taking shape – The Plain Dealer
• Kilroy attacks Stivers’ history as bank lobbyist – Columbus Dispatch
• Payday lenders: 200k more signatures – Columbus Dispatch
• McCain’s remarks at Capital U. spark bailout blow – Columbus Dispatch
• McCain interview with Dispatch on Bailout – Columbus Dispatch
• Endorsements: Celeste and others – Columbus Dispatch
• Editorial: PD slams Members who voted against bailout – The Plain Dealer
• Brunner backed by courts – The Plain Dealer
• McCain defends role in Bailout – Dayton Daily News

Other News

• Voinovich to vote for bailout, Brown undecided – Columbus Dispatch
• Strickland establishes economic growth group – Columbus Dispatch
• Poll: Strickland approval rating slips – WHIO-TV
• State budget cuts will affect county programs – Dayton Daily News
• Economic crisis yields many opinions – Columbus Dispatch
• New law benefits bankrupt Ohioans – Columbus Dispatch
• Capital Notes – Columbus Dispatch

What Crisis? Dow Posts Third Biggest Gain Ever - Most Americans Don’t See the Sky Falling

Look, I know the stock market isn’t “the economy.”  But days like this will make it all the more difficult for Washington’s politicians to convince voters that $700 billion should be staked to bailout Wall Street’s financiers.

I was in a meeting today previewing a presentation I developed to communicate with a group of people over a thorny issue.  At one point, a colleague said to me, “Pelikan, you’re gonna like this.”

“Are we trying to educate or notify? This first part is good - you’re educating, but then you move to notifying.”

My colleague knew I’d like that feedback because she said she heard a political pundit using the same language to describe how the Bush Administration failed to get public support for the bailout.

I don’t know where she heard that analysis, but it’s good.  I still have yet to discuss this whole “crisis” with more than a couple of people who are four-square behind it. 

I think that pundit was right.  Henry Paulson said just in the last couple of months that the issues in the credit and banking system were “manageable.”  Then all of a sudden there’s a plan to make him king of the financial mountain.

There’s another reason why regular folks are skeptical.  It’s the rush.  The Bush Administration has a very poor record when it comes to public policy decisions hastily rammed down their collective throat:

1. WMD & Al-Qaeda running rampant in Iraq - There were no WMD and Al-Qaeda didn’t exist in Iraq until we destabilized the country.
2. Patriot Act - Constitution shredded
3. U.S. Official Torture Policy - Thanks to Dick Cheney, David Addington and John Yoo, Constitution shredded, treaties pissed on, FBI and Dept of Defense ignored, innocent people tortured along with bad guys who were tortured and gave erroneous information, Amerian moral authority erroded.

Now, 30 days before a presidential election, with less than a week to consider the problem, the Bush Administration wants to fork over $700 billion to investment bankers?

This can’t be good.

Transcript: President Bush Statement on Bailout Failure

(Source: White House Press Office)

7:34 A.M. EDT

THE PRESIDENT: Good morning. Yesterday, leaders here in Washington reached an extraordinary agreement to deal with an extraordinary problem in our economy. Working closely with my administration, congressional leaders from both parties produced the Emergency Economic Stabilization Act — a bold bill that will help keep the crisis in our financial system from spreading throughout our economy. Read more

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