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Obama Gets Serious about Restricting Executive Pay for Bailout Recipients

February 4, 2009 By James View Comments

obama-sunglasses-21It’s like we’re in some other country that doesn’t always bow and cater to the whims of the executive elite.  Finally some common sense back in the White House.

“If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Barack Obama said in an interview Tuesday with “NBC Nightly News”.

The president and members of Congress are weighing various proposals to restrict chief executives’ compensation as one of the conditions of receiving help under the $700 billion financial bailout fund.

…

Top officials at companies that have received money from the government’s Troubled Asset Relief Program already face some pay limits. But elected officials want to place more caps, a sentiment reinforced in recent days by revelations that Wall Street firms paid more than $18 billion in bonuses in the midst of the economic downturn in 2008.

“I do know this: We can’t just say, ‘Please, please,’” said Sen. Claire McCaskill, D-Mo., who has proposed that no employee of an institution that receives money under the $700 billion federal bailout can receive more than $400,000 in total compensation until it pays the money back.

The figure is equivalent to the salary of the president of the United States.

Of course the Republicans are up in arms claiming these sorts of restrictions wreak of “nationalized businesses”.  No, it’s the $700 billion that taxpayers are being forced to give them that makes it seem like a nationalized business.  The only difference is, this it seems that there is actually somoene in power who will look after that money and make sure that it’s used to actually rebuild and support those businesses rather than fattening the wallets of their executives.

Filed Under: Politics Tagged With: bailout, executive pay limits, president obama

Michael Moore is Stealing My Rants on the Auto Industry Bailout

December 12, 2008 By James View Comments

OK, he’s probably not really stealing them but it seems our initial reactions to the Senate bailing on the bailout were pretty much the same.  I just posted mine first that’s all I’m saying.

They could have given the loan on the condition that the automakers start building only cars and mass transit that reduce our dependency on oil.

They could have given the loan on the condition that the automakers build cars that reduce global warming.

They could have given the loan on the condition that the automakers withdraw their many lawsuits against state governments in their attempts to not comply with our environmental laws.

They could have given the loan on the condition that the management team which drove these once-great manufacturers into the ground resign and be replaced with a team who understands the transportation needs of the 21st century.

Yes, they could have given the loan for any of these reasons because, in the end, to lose our manufacturing infrastructure and throw 3 million people out of work would be a catastrophe.

But instead, the Senate said, we’ll give you the loan only if the factory workers take a $20 an hour cut in wages, pension and health care. That’s right. After giving BILLIONS to Wall Street hucksters and criminal investment bankers — billions with no strings attached and, as we have since learned, no oversight whatsoever — the Senate decided it is more important to break a union, more important to throw middle class wage earners into the ranks of the working poor than to prevent the total collapse of industrial America. 

Could have, should have, would have.  From where I stand, having made many of those exact same points myself, there’s a part of me that’s saying these things are the CHANGE I expected.  This seemed like the perfect opportunity to put into action all those many campaign promises.  I know Obama hasn’t taken office yet and I’m not putting this on him, but I truly hope that once he does take office and is in the position to make good on his promise of real change that he start with this.

There will not be a better opportunity for Obama to make good on his rallying cry of change than to take this opportunity to boot out the greedy corporate bafoons that have literally driven the American auto industry to the brink of extinction and run them out on a rail.  Let’s hope that come January 20th real change really will come to Washington.

Filed Under: Uncategorized Tagged With: bailout, buyout, gm, michael moore

Your General Motors Car May Have Just Become a Collector’s Item: Bailout Dies in Senate

December 11, 2008 By James View Comments

gm-logoBad news for the auto industry:

Senate Democrats and the White House failed to find 60 votes to end debate on a $14 billion auto bailout bill and bring it to a vote Thursday night, killing the measure for the year.

The 52-35 vote followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise.

“We have worked and worked and we can spend all night tonight, tomorrow, Saturday, and Sunday, and we’re not going to get to the finish line,” Senate Majority Leader Harry Reid said on the Senate floor before the vote. “That’s just the way it is. There’s too much difference between the two sides.”

I’ve been urging the Senate to buyout, not bailout the auto industry.  But it looks like even my sage advice won’t be able to save GM.

The collapse of negotiations could possibly doom General Motors to a bankruptcy and closure in the coming weeks, with Chrysler potentially following close behind.

What would be wrong with instead of letting GM collapse in on itself (thanks Richard Wagoner) why shouldn’t the federal government take them over, much like they did for Amtrak in 1970.

We saw the same thing happen in 1970 when the federal government took over what was then thePullman Company and federalize the national railroad system creating Amtrak.  Amtrak is still alive today thanks to the government buyout.  I won’t go as far as to say Amtrak is doing well, but it is the fucking railroad, it hasn’t been the preferred method of travel in like 80 years what do you expect.

I think given the right circumstance, a buyout would be a great thing, not just for GM, but for the country in general.  Change the name from GM to AMC.  Yeah, I said it.  Bring back the American Motor Company but this time as a national automobile manufacturer owned by the people of the United States.  Shave off millions of dollars in executive’s salaries as part of the budget cuts.  Offer other smaller car companies that have been working on alternative-fuel vehicles the opportunity to come in and utelize the resources of the GM infrustructure.  We would have the opportunity to create a national car company that manufactures quality, alternative-fuel vehicles that that are reliable and affordable to the middle-class Americans.

Filed Under: Politics Tagged With: bailout, buyout, chrysler, Economy, ford, general motors, senate

Congress, White House Agree on $15 Billion for Auto Industry

December 5, 2008 By James View Comments

money_bagThe Big 3 auto industry execs just hit the lottery with taxpayer money.  After nearly all of America crapped a brick this morning at the news that the economy lost over a half a million jobs in November alone, Congress and Bush, firmly wedged in their self-created corners came to a tentative agreement to bailout (not buyout) the the Big 3 American auto manufacturers.

The damnable part is, there seems to be little to no stipulations for the auto industry.  Just, “Here’s our $15 billion, keep going, business as usual.”

House Speaker Nancy Pelosi released a statement that was direct enough to allay concerns but vague enough as to not actually be able to hole anyone to actual standards.

“Congress will insist that any legislation include rigorous and ongoing oversight to guarantee that taxpayers are protected and that resources are directed to ensure the long-term viability and competitiveness of the American automobile industry,” Pelosi’s statement said.

The bitch of the entire fucking thing is instead of demanding that this money be used to restructure the auto industry and include smaller manufacturers that are light years of ahead of the Big 3 in alternative fueled vehicles, they make no mention of that.  You can’t “ensure the long-term viability and competitiveness of the American automobile industry” and allow the same greedy fucks that ran it into the ground in the first place to stay in charge.

We need auto industry executives that are more concerned with building reliable, fuel efficient and alternatively powered vehicles than with raking in millions upon millions of dollars for themselves while their industry gets flushed down the toilet and passed in quality by virtually every single foreign market.

Let me be very clear that in this capitalist society we live in I have absolutely no problem with people making millions of dollars and living the dream, with two small stipulations of course.  That wealth needs to be spread out a little more between the suits that sit in their office and the men and women who’s blood and sweat actually keep the industry alive.  And the second being that if you are so completely inept at running your business that you need a government bail out, it’s time to find a new line of work.

I will get up on a soap box and waving my American flag guarantee that if you were to replace these greedy corporate whores with actual men of integrity and a passion for automobiles that within 10 years time every car manufactured in the United States could boast a 10 year/100,000 mile powertrain warranty and getting at, or close to, 100 mpg.

Instead, we get this lame duck bailout which is actually being funded by “billions originally ticketed for development of more environmentally friendly cars”.

In a subsequent statement, she added that the billions originally ticketed for development of more environmentally friendly cars would be repaid “within a matter of weeks.” Democrats said her hope was to include the funds in an economic recovery bill that lawmakers are expected to prepare for President-elect Barack Obama’s signature shortly after he takes office.

We shouldn’t have to have a seperate stack of billions to fund development of environmentally friendly cars.  This money should be absolutely dependant on the fact that automakers meet stringent standards and create environmentally friendly cars themselves.  Then they can pay back our billions of dollars and we could use it on something zany like education or health care or something.

Filed Under: Politics Tagged With: bailout, chrysler, corporate whoredom, ford, gm, government

For Taxpayer’s Sake: Buyout Don’t Bailout General Motors, Ford and Chrysler

November 16, 2008 By James View Comments

general motorsThis $700 billion bailout is already starting to sound like a golden parachute to me.  Something we were promised it would not be.

A few days ago I pointed out a few staggering statistics regarding GM, including among other things, how its stock price has plummeted from $60 per share to around $4 per share since Richard Wagoner took the helm as CEO in 2000.  Not to mention the fact the company announced a third-quarter loss of 2.5 billion dollars.

Should this sort of incompetence be rewarded?  Should the fact that American auto manufacturers have consistently, for the past 30 years, lagged behind foreign manufacturers in quality, fuel efficiency and pricing.  

Even as experts predicted the coming rise in fuel prices, American auto makers continued to pump out SUVs with seemingly no concern for sustainability, the environment or the future.

I grew up in a family that never owned anything but GM cars.  My Dad, who always owned a pickup would have rather walked than to have owned a foreign made truck.  He was old school though.  He was around when America was proud of the quality of cars they made.  

american_vs_foreign_autosI’m sure I will be attacked and promulgated with insults over this stance but I can’t be alone in my thoughts.  This is in no way a reflection on the UAW.  Their hard work and sweat that is the backbone of a huge part of what has made this country great.  That being said, it cannot be a free pass for the people running the auto industry to allow it to become a dinosaur.  To refuse set new emission standards and keep up with a dynamic, changing economy.  Can you name more than one American made hybrid (or even one for that matter)?  

We saw the same thing happen in 1970 when the federal government took over what was then the Pullman Company and federalize the national railroad system creating Amtrak.  Amtrak is still alive today thanks to the government buyout.  I won’t go as far as to say Amtrak is doing well but it is the fucking railroad, it hasn’t been the preferred method of travel in like 80 years what do you expect.

Please Congress, don’t bailout the auto industry, do not reward the incompetence of corporate America.  Buy them out.  Trim the fat of the incompetent executives running the show, employ more hard working Americans and make the American auto industry the leader in innovation and technology once again.  

If the taxpayers are to be burdened with saving the auto industry from selfish, greedy and bungling suits that have driven it into the ground, the taxpayers should be rewarded with affordable, reliable cars and trucks that they can be proud of, that they in fact own a piece of.

No reward.  No risk.

Filed Under: Politics Tagged With: auto, bailout, chrysler, corporate whoredom, ford, general motors, uaw