Last night I was on the air with Larry King who always has incisive questions. He asked me if Obama was right or wrong to go after these executives with salary caps--and I said he’s absolutely right. Billions of dollars are being given to banks, and once you start using taxpayer money, it’s a whole new ball game.
It’s not a game I’m enjoying watching. The banks are trying to shore up their balance sheets. They’re supposed to be loaning out that money and they’re using it for other purposes, so it is a real mess.
Everyone wants to blame the United States, but every country is in trouble. There’s been a lot of greed and a lot of stupidity. But being appropriate isn’t asking for a lot, considering the national and worldwide situation. The enormous bonuses and unnecessary perks that have surfaced in the press is enough to anger anyone who has worked hard and lost hard in recent months.
The concept of bailouts is a two-edged sword. If they didn’t do the bailout, we would be in depression No. 2, and maybe it would be just as big as depression No. 1, so they really had to do something. We don’t really know if it’s going to work for quite some time. If it’s really wrong--and it could be wrong--we’re going to really have a mess in two years.
We are in a situation that is trial and error. We’ve never dealt with this before. But I think Obama is doing the right thing and all of us must remain alert to what is happening.
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36 Comments
We are in a trial and error period which will require the most innovative thinking possible to get us out of this mess. This may at times lead to downturns and I for one will not throw stones because we will have to use that as a learning tool to readjust. There are no quick fixes or formulas for what we are now experiencing. The hope that has sustained America throughout the ages knows that when we are in a crisis, leaders rise to the top and that is the case with President Obama (and many other leaders in local governments who are facing insurmountable challenges). I for one stand for their courage to step up and pledge my full support.
Looking forward to the next series of Celebrity Apprentice, can't wait!
It's about time to have Washington D.C. in tuned to the American people and restore confidence in our elected leaderships. And we agree Obama may not be waiting for the rest of them...to lead on this issue. However, are we still in the PRESIDENTIAL OVAL OFFICE. He should dress for the Presidential honor and lead...not to try to shore up causual leadership with causual dress. A huge mistake~
Lead with Honor and its OVAL OFFICE PRESIDENTIAL attire. The UNITED STATES PRESIDENT. Dress for the part of the OVAL office insead of wearing causual attire..might instill more elected leaders to have confidence in him ..and follow his leadership in his Presidential term of the UNITED STATES. Honor the office dress code. As Past presidents honor.
Mr. Trump has certainly seen grim days like this in his development business, but I doubt that even in his darkest moments would have ceded his business decisions to bankers and bureaucrats who know nothing about his business.
income caps, may have some unwanted consequences. Once we establish how much someone else should be paid, instead of utilizing the Board of Directors to establish these guidelines that are
"reasonable in these difficult times", the government will likely intervene and dissolve the BOD involvement to a certain extent in terms of Executive compensation.
More government regulation, regardless of how horrible the global economy is, can be an intermediate to long-term issue to maintain captialism as we know it. We have already been forced to
involve citizens of the country, of course, with tax payer dollars to keep afloat certain financial institutions but overregulation is also a serious future problem.
The only way out of this financial mess is for ingenuity and creativity at unique companies where the brilliant engineers move society forward. Specifically, in genomics & biotechnology, solar, high-technology and many other areas looking forward. Intellectual capital will create solvency for real capital. Trillions are in the Treasury markets looking for places to invest. Steve Jobs isn't the only genious in our country.
Steven Conners
The bail-outs sound like something that was a not-so-good option, but the only option. Reminds me of an Indiana Jones adventure movie where he is running in a cave and gets chased by a big stone who is threatening to crush him and he then has no alternative but to throw himself into a sideroom full of scorpions. Now though, he has no stone after him, but he better keep his eyes open, hehe.
Lucky for us all that Obama is Indiana Jones and not Bush, that's all I can say, haha. And I say us because even if I live in Sweden, I think if the U.S is worse off, then we are too. I mean, we're all in trouble.
Good Luck Obama! ...you'll need it.
I agree, If big company execs utilize tax payer dollars, the President has every right to cap their income and rightfully so. No question about it.
Maybe you can answer this for me. About 6 months ago you predicted the price per barrel of crude oil would plummet down to somewhere in mid $20/barrel range. Recently, it has dropped as low $33 +., so, you haven't necessarily 'nailed it', but, got pretty darn close. Much credit due.
Considering all of the reduced demand, both nationally and internationally, in addition to increased unemployment, negative GDP growth, auto manufacturers closing plants etc..... I would have expected the ppb to drop even more than it has. The past week has seen it off level trend around $40/barrel. The only thing keeping it steady is OPEC stating that it will continue to cut prodcution. But that hasnt' even been very effective considering inventories are higher than ever. With all that said, where do you see it going over the course of the next 12 months?
I ask this question, because the right answer has to take into account a great amount of economic variables on a global scale. If we're right about this, it will be very telling about the rest of the economy and overall impact this bail-out bill (and other measures) may actually have.
Thanks for your time.
What a mess! But it is just not the banks. This has been stewing for a few years.
I lost a lot of my retirement money recently after telling my advisor to move it when the losses started. His response was the market will turn around, my response was at what cost to me. Now I am waiting for the right moment after more losses and that advisor is as you say Fired!
Also I worked for a major corporation for twenty years. Over two years ago I took a package, I saw the CEO was taking the company down the wrong path cutting first line services to customers selling parts of the company laying off people that would ultimately work for the competition and strengthen their position. Still her salary remained high and the great company it was, is today in serious trouble.
The cutting should start at the top and work its way down.
When all is said and done this CEO will walk away with her golden parachute and all the little guys will suffer and right now some of the retired hard workers are, because of her actions, its greed at its best.
If only the founded of this once icon company could see it now.
The CEO should be ashamed of herself.
Regards
Ray. C
Jan
if people will just blindly hand over it to the government, they will get screwed over.
People need to stop sitting on their ass and get up and do something. Go make more money, cut your expenses, whatever it takes so you survive and come out on top.
The best thing that companies can nowadays do is to invest to educate their workers. Not to put them out! This financial crisis is only temporal and about after September the conditions will be begin again to get better. We must trust that hard and so we can also better manage to get out this crisis and then when companies have workers that are educated and so motivated working hard, they will managed to get wheels rolling and do profit !
When we think how we are depressed and things are very badly, so we feed this kind of thinking again and again and things seems very bad. But companies that puts all the energy on their workers welbeing they will managed after this financial crisis.
I totally concur with your position. Also the bailout should be for the individual. Lets say, the goverment should cancel all those subprime mortgages and refinance them directly by negotiating with the homeowner a satisfactory payment.
All those businessowners and bankers that are having a bad time have selfinflicted wounds. No we see this bankers recieving bonuses for what? They are the responsible ones! Also, the Oil prices are responsible of econic's downturn. Banks cornered the oil market trying to get out of their mess and hurted the whole economy.
Individual hard working entrepeneurs should not be blamed and should be protected. The massive unemployment that we are experiencing is due to the exportation of american jobs to third world countries and the lack of goverment initiative to stop those corporations acting against the country's economy.
Corporate America is the responsible one, not the people!
In general, the system is flawed, though. These bonuses got the corporations into hot water in the first place. Then the government has no choice but to bail the banks out, and this bonus regulation is just a tiny slap on the wrist. We have shown we have no real power to regulate banks anymore, if we plan to bail them out when they are floundering.
Unfortunately, this banking debacle has shown that there has to be at least a modicum of regulation in the banking industry in general, by the U.S. government.
The American Bankers Association had its origin in the feeling that union among the banks of the country would result in great services to banking interests and to the public. But there was such a diversity of interest (as early as 1813) and such a degree of rivalry among the banks that it was impracticable to accomplish. After a Convention was held in New York City on April 11, 1838 the Establishment of the Free Banking System of New York State was accomplished by an Act of the Legislature.
Another Convention of bankers was held in NYC in 1865, soon after the establishment of the National Banking System. Still no agreement.
The great financial crisis of 1873 next supervened, and a strong and lasting impression seems to have been made on the minds of the banking community. In 1875, a Convention was held at Saratoga. This increased the threats of banks withholding money for loans.
Many Conventions have taken place since then. Nothing has changed. The banking industry is so powerful that it persuades even voting members in our government on federal, state and local levels.
President Obama is not the first President to demand change. Many others have too. So far even the most brilliant minds in the world have failed to contain the rivalry for power and control in a lasting way.
Consumers have always felt the effects. Fear and withholding necessary money for business growth is a very old practice in banking.
The problem with Americans is that they have a short memory. Although History is a subject taught in most schools throughout the world, it isn't as exciting as watching things like the SuperBowl, Dancing With The Stars or the new Apprentice. For kids it's the Disney Channel and books like Harry Potter that get their attention. Teens have their cell phones to keep them updated on the news.
So Americans have nobody else to blame but themselves for allowing this scam to continue. They should know who they are trusting their hard earned money with. I'll bet most of them don't even know their bank's CEO or all of the Board Members. And I doubt that they do a backround check on each one of them. But they can tell you if Oprah gained ten pounds over the holidays or the latest gossip about their favorite celebrity's divorce settlement.
Smart people watch over their money like a good mother watches over her child. They don't need President Obama to do it for them.
You Nabob! Aside from the fact that Mr. King hasn't been decisive since he passed, your comment tonight with Greta Van Susteren that America has no reason to be in Iraq because they didn't have anything to do with 9/11 is frightening. That an American tycoon could be so ignorant of history begs the question, "How could you be so stupid and yet so successful?"
The reason America is in Iraq has little to do with Iraq, other than Saddam was the "sick man" of the Middle East and therefore the easiest to push over. It has everything to do with pre-positioning our troops and equipment on the Iranian border and the underbelly of Russia (formerly the USSR).
The countries (regimes) in the area that are the most troublesome have been Syria, Iraq and Iran. Guess what Mr. Trump; we now have the Mediterranean to the West, with Israel as a base, the North Arabian Sea to the East, Afghanistan to the North East and Iraq to the South West.
Do you think this is an accident? Until you actually know what you're talking about you should stick to meaningless drivel on TV.
With All Respect,
Stewart Magid
There is little doubt that our country faces a time when anything can happen. We are not immune from global war. Our military is on alert and we are proud of them for defending an ideal that we all believe in. Freedom is the backbone of civilization. Our ancestors would give up their life, and so will we, if it means that we can make a better future for our children regardless of where they live in this world.
To continue fighting each other is stupid. When we invest our money in higher education it is money well spent. When we profit from bombs of destruction we lose.
This is a time to let peace be the victor. It is a unique time in history to rebuild what has been destroyed and prepare the soil for growth and prosperity.
President Obama is adsolutely right. This is a time for change. A change that will sustain peace, growth, and a feeling of belonging to a world that is bigger than us if we see ourselves as part of the Universe instead of one planet that seems to be self-destructive.
Let me start off by saying that you are my idol. I've read all your books and I buy anything with your name on it because if it says Trump it's gonna be the best. Trump office chairs are the best because it makes me feel like I'm in the board room closing a big deal with you.
If the government keeps bailing everyone out, doesn't that keep lowering the value of the US Dollar? I think that we had to do something but, I think we are just covering a gun shot wound with a band aid. Thank you for your time.
Respectfully,
Shawn L. Balcita
"Rookie" who hired the same Clinton people who got us into this mess in the first place and for you not to be aware of this only shows your lack of political history. First of all, Wall Street and the Ceo's are not responsible for this economic meltdown. It is the government and it's leaders who are responsible. Back up to the late 70's when Carter instituted the Community Reinvestment Act which allowed for anyone and everyone to obtain minority mortgages because he wanted everyone to own their own home. Then forward to the 90's when Bill Clinton reformed and reinstituted the same Act. He wanted even welfare recipients and those on unemployment to obtain mortgages for housing and forced the ninja loans through HUD with Andrew Como. During this same period is when Barack Obama, after graduating from Harvard Law School, came to Chicago to work as a Community Organizer for ACORN under Madeline Talbott. He also worked as a lawyer in a law firm who sued banks who refused to give them "Affirmative Action" loans after shaking them down and trying to force them, like Fannie Mae & Freddie Mac. Those loans foced through them were bundled and sold off to banks and financial institutions that later collapsed after they eventually deffaulted. This created the the Famous "trickle down" economy we now have.
The second part you are wrong about is Bush's actions throughout this period starting in 2001 and throughout to 2007 when he saw that Fannie & Freddie were showing problems and needed reforming and more regulations because of these loans that started in the Clinton administration and progressively produced by ACORN. Madeline Talbott was so impressed with Barack Obama that she hired him to train others in his methods of shaking down these banks and along with their pursuing voter registrations for which they are also well known and currently being investigated, although I'm sure Pres. Obama will stop that investigation since they also were paid to get him elected and who he is now paying back in the Stimulus Bill a cool $5.6.billion. What a coincidence, right? Just like the coincidence of 43,000 new registrations by ACORN in Minnesota in hopes of electing some broken down comedian, Al Franken over Norman Coleman. Give me a break! There is so much undercurrent throughout the Obama administration it is hopeful they all drown in their complicity.Just look at how they are now trying to take the Census Dept out of Comerce and transfer it to the White House under that other slimeball Rahm Emanuel, who learned and practiced all his tricks during yes, the Clinton Administration. The smae guy who went to work for a law firm in Chicago and with close ties to Franklin Raines, made himself $16 million before going to the House of Representatives. He and Jamie Gorelick cleaned up on Fannie Mae. Give me a break!
Furthermore, when Bush was Congress to act on the banking problem, he ran into roadblocks by Barney Frank, chairman of House Finance Committee, along with Chris Dodd, Maxine Waters, Chuckie Schumer and newly seated Barack Obama who all defended the banks saying there were no problems but they were all receiving generous campaign donations from friend of Obama, Ceo Franklin Raines who kept two sets of books and covered his butt then later left with a $100 million bonus.
Thirdly, again you blamed Bush for the second and a third time on tv , which surprises me since I walked beside you at Daddy Bush's Inauguration in '89 along with Ivana and Wayne Newton. You are so misinformed. We did not attack Iraq for 9/11 and no onein the Bush administratin ever said that. You may have interpreted it to be a fact, but you are incorrect. All the Intelligence passed on to the Bush Administration by the previous administration
adminstration. At least i can say that as President , Obama has admitted to one "screw up" so far and that was hisstaff's lacking proper vettin of his appointments. I suspect very soon, we wreill hear about another screw regarding the appointment ot Tim Geithner, who was thre along with Paulson the whole time and knew what was going on and took no action against the failing s of Fannie Mae and Freddie Mac. We have had a Democratic controlled Congress for the past two years, so to point fingers at President Bush is highly suspect because the machinations of that obnoxious Speaker of the House, Nancy Pelosi,who is sent out to cover up their "screw ups" along with that whimpering, simpering slimeball, Harry Reid are the most despicable actions for the past two years. Bush's worse offenses, have been his total lack of using the veto pen and allowing the Democrats to have theri way with every earmark ever presented. Now we are faced with a President who left the project of writing a Stimulus Bill which is one big "giant earmark" that was held in abeyance for years in a pork-barrel. the word stimulus is a "method used to hasten action" , this is not. The first thing is to rewrite the loans tothose people who are going or are in foreclosure, the second thing is sto stimulate the economy, I'm sure you learned this in economics 101. instead of giving our tax dollars to big government to create more government, the best way to stimulate the economy is to give every taxpayer $2500 to spend or pay debt, reward taxpayers for buying cars will give them a new car and the manufacturers a job. To reward ACORN and the other groups Obama is beholden to, the labor unions, is a mistake. First thongs first as they should be prioritized.Homes and jobs while banks should be forced to give mortgages becasue there is a huge inventory and huge marjet of buyers that will circulate more money in the banks. Next year, they should concentrate on "limited infrastructure" that will insure jobs for the blue-collar worker. Afterall, the thousands of office workers in the financial markets are not going to dig ditches and build buidings.
Hopefully, I have enlightened your lack of "political acumen" and realize that Rome wasn't built in a day, as you must know. In my opinion, if they do "first things first", you may even get the banks to loan you money.
Tom
<a href="http://www.bizoppjunction.com">Business Opportunities</a>
There are some companies that are continuing to thrive in these economic conditions and for them this type of spending would be OK. But if you are given billions of dollars to save your company from going under, then you have no excuse.
The money that the banks received was specifically designated to be lent out to the American public...not to be wasted by CEO's!
The problem is that all the banks are so afraid to loan money...something needs to be done in order to force the banks to lend the money they have received.
Ross Treakle
http://RossTreakle.com
I am not claiming to be Einstein here, in fact, I only have a high school diploma. But, the fact that all of these high ranked "VIP'S" receiving all of those million dollar bonuses prior to the so-called "BAILOUT" is absolutely outrageous!!!! And, if you are anything like me, not even paying half-attention, you don"t even realize what is REALLY GOING ON HERE!!!
People need to expand their thinking instead of keeping score of the scoundrals and sheep.
The media has given way too much attention to politics.
There is work to be done.
People are much happier when they are busy working on constructive projects with leaders who know how to lead. Bankers feel happier when they can lend money and don't have to hide from the media and the public. Consumers feel more secure when they have extra money and credit to buy things they like.
Our job is to make this happen.
People need to stop using the government to solve problems they themselves can solve.
Freedom is sustained when people take responsibility for their choices. Justice is served when individuals knowingly break the law and action is taken to remedy this mistake and prevent it from being repeated.
What is the Justice Department doing about the misdeeds of greedy people who violated the trust of the public, and are grabbing money intended for helping small businesses, homeowners, education and the arts?
Write to them. Speak up.
Then get to work and do something to make this world a better place to live for many generations to come.
"WE CAN DO IT!" and "YOU CAN HELP."
Peace is the answer, not war. I don't see one war being fought today that is making lives better.
Wasn't bringing our troops back home from Iraq one of President Obama's campaign promises?
Well. I'm still waiting...
Greeting from Germany, dear mr. Tump
I am not claiming to be Einstein here, in fact, I only have a high school diploma. But, the fact that all of these high ranked "VIP'S" receiving all of those million dollar bonuses prior to the so-called "BAILOUT" is absolutely outrageous!!!! And, if you are anything like me, not even paying half-attention, you don"t even realize what is REALLY GOING ON HERE!!!
Another matter that makes me furious is the people that get Social Security Disability Benefits for being a drunk!! Are you kidding me? How does giving you free money and no responsibility help you in life? Also, I'm sick of these losers having kids just to get a hand out. As Mr. Trump and Mr. Kiyosaki said in their book, these are the people that feel entitlement. I also think that people who don't have kids should not have to pay school taxes because that is the only tax that makes no sense to me. What do these people gain out of it besides paying for all the welfare kids? They need to start consolidating some of these schools because it makes no sense to have 3 schools within 1 mile of each other.
Thank you for allowing me to vent.
Better use of the taxpayer's money because happy people make better citizens. And happy citizens spend their hard earned money with less stress which will keep them healthier and reduce unnecessary medical expenses.
You are right. Anytime an organization is working with other people's money, they need to use those resources wisely, and for the purposes intended. This is a trial and error situation. I have always felt that proper management, in the first place, would have avoided the situation. The auto manufacturers should have been looking ahead and developed cars that exceed the paltry mpg and other performance measures currently reached. I realize many things were difficult to manage due to their size and labor systems. What they really need is strong leadership and a good big picture view - someone like you - to go in and clean house. It is amazing what a new set of eyes can observe.
While Obama continues to say intelligent things, his plans do not come out as he says they will.
As far as the Obama real estate recovery plan goes, it will NOT work in many higher home value areas like San Diego, Los Angeles, New York City, etc.
I came across a San Diego real estate broker's blog post that is to be the only one I've seen that does not spout the 'industry line: "It's always a good time to buy real estate." This broker calls it like it is. No it's not PC, but it is amazingly informative and insightful. Bob Schwartz, the San Diego real estate broker who publishes the blog, wrote a great article on 2-19-09, titled: San Diego Real Estate - No Relief From Obama the url is: http://www.brokerforyou.com/brokerforyou
Evelyn
YES - President Obama is the best choice, not only for the USA, just for the whole world!
My wish is to tell you, how your partner Germany can help you to defeat the heavy crises - but not in Dollars and Euros...
After the world war II give us the USA the chance for the great economic miracle - it was the hardest touchstone in front to the communism! So you can take it easy today: With concepts and ideas, founded by the german success story of the "social economy", the American Dream can not only survive the crises; The American leadership can be continued - strong and without violence!
Intimate: Let the permanent megalomania go to sleep...
God bless you!
Jens J. Plep, supporter of Angela Merkel
If you can say that Obama is right, Who are we to debate any longer, We know he was the right one for the Job, But we did not know how he could or will handle he job. Long live the economy of the united states, long live wall streets, long live the future untold.
writen by Dan Ogamba
Coon-rapids. MN
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CEO Selina E. Legette