Archive for the ‘Goldman Sachs’ Category

Commentary: Say no to the auto bailout

November 13, 2008

General Motors, Ford, Chrysler and the United Auto Workers union are pouring millions of dollars into a lobbying campaign for a taxpayer bailout.

The money devoted to influence peddling in Washington would be better spent on improving quality and finding ways to reduce a bloated cost structure, but both management and UAW have decided that fleecing taxpayers is a better option.

A taxpayer bailout would be a terrible mistake. It would subsidize the shoddy management practices of the corporate bureaucrats at General Motors, Ford and Chrysler, and it would reward the intransigent union bosses who have made the synonymous with inflexible and anti-competitive work rules.

Perhaps most important, though, is that a bailout would be bad for the long-term health of the American auto industry. It would discriminate against the 113,000 Americans who have highly-coveted jobs building cars for Nissan, BMW and other auto companies that happen to be headquartered in other nations.

These companies demonstrate that it is possible to build cars in America and make money. Putting them at a competitive disadvantage with handouts for the U.S.-headquartered companies would be highly unjust.

A bailout also would be bad for General Motors, Ford and Chrysler. The so-called Big Three desperately need to fundamentally restructure their practices. More specifically, the car companies need to endure some short-term pain in order to restore long-term viability. But that won’t happen if politicians raid the treasury.

From CNN

Read the rest:
http://www.cnn.com/2008/POLITICS/11/13/mitchell.
auto/index.html

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Goldman suspends GM rating, Chrysler urges aid

November 13, 2008

Goldman Sachs suspended its rating on General Motors Corp on Thursday and said the automaker needs at least $22 billion in federal aid, while Chrysler said it would be “very difficult to survive” without government support.

By Soyoung Kim, Reuters

Chrysler LLC Chief Executive Bob Nardelli said Chrysler was losing money due to a decline in U.S. auto sales to 25-year lows, and said Chrysler would seek federal money for its liquidity and restructuring needs.

In one of his few appearances since merger talks between GM and Chrysler broke off, Nardelli said Chrysler must have broader ties with U.S. automakers or alliances with overseas competitors to ride out the industry downturn.

The auto industry has stepped up lobbying efforts for government support and the heads of the three U.S.-based automakers are expected to testify next week before a congressional committee considering aid for the industry.

The Bush administration said the government could quickly disburse $25 billion in loans already approved by Congress. However, the administration has responded coolly to an aid plan being shaped by Democrats, which includes using part of the $700 billion financial rescue package to provide additional liquidity for the auto industry.

U.S. President-elect Barack Obama is considering appointing someone to lead efforts to help the auto industry return to health, an Obama aide said on Thursday.

Read the rest:
http://news.yahoo.com/s/nm/20081113/bs_nm/us_autos;_
ylt=AoxQlVWmKP6w17NQ.n2SVOWs0NUE

U.S. Investing $250 Billion in Banks: Financial ‘Bailout’ Continues to Intill Hope

October 14, 2008

By Mark Landler
The New York Times

WASHINGTON — The Treasury Department, in its boldest move yet, is expected to announce a plan on Tuesday to invest up to $250 billion in banks, according to officials. The United States is also expected to guarantee new debt issued by banks for three years — a measure meant to encourage the banks to resume lending to one another and to customers, officials said.

A euro coin and one US dollar bill. The dollar has dipped against ... 

And the Federal Deposit Insurance Corporation will offer an unlimited guarantee on bank deposits in accounts that do not bear interest — typically those of businesses — bringing the United States in line with several European countries, which have adopted such blanket guarantees.

The Dow Jones industrial average gained 936 points, or 11 percent, the largest single-day gain in the American stock market since the 1930s. The surge stretched around the globe: in Paris and Frankfurt, stocks had their biggest one-day gains ever, responding to news of similar multibillion-dollar rescue packages by the French and German governments.

Treasury Secretary Henry M. Paulson Jr. outlined the plan to nine of the nation’s leading bankers at an afternoon meeting, officials said. He essentially told the participants that they would have to accept government investment for the good of the American financial system.

Of the $250 billion, which will come from the $700 billion bailout approved by Congress, half is to be injected into nine big banks, including Citigroup, Bank of America, Wells Fargo, Goldman Sachs and JPMorgan Chase, officials said. The other half is to go to smaller banks and thrifts. The investments will be structured so that the government can benefit from a rebound in the banks’ fortunes.

President Bush plans to announce….

Read the rest:
http://www.nytimes.com/2008/10/14/business
/economy/14treasury.html?_r=1&hp&oref=slogin

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Asian Markets Soar On Signs of Renewed Hope

By JEREMIAH MARQUEZ, AP Business Writer 18 minutes ago

HONG KONG – Asian markets soared for a second day Tuesday, led by a record 14 percent jump in Tokyo, after Wall Street rallied from its worst week ever on optimism that government rescue efforts will heal the crippled global financial system.

Read the rest:
http://news.yahoo.com/s/ap/20081014/ap_on_bi_ge/world_
markets;_ylt=AhU9ssfZ2fvgiOjAnyoc0oSs0NUE

A businessman walks past an electonic board showing the Hang ...
A businessman walks past an electonic board showing the Hang Seng Index. Global stock markets staged spectacular gains Monday as governments pumped hundreds of billions of dollars into banks crippled by the credit crunch, coaxing newly confident investors to buy shares.(AFP/Mike Clarke)

A South Korean woman passes a foreign exchange facility in Seoul. ... 
A South Korean woman passes a foreign exchange facility in Seoul.(AFP/File/Jung Yeon-Je)

Bush Again Proves Soft on China

September 7, 2007

By John E. Carey
Peace and Freedom
September 7, 2007

President Bush again showed himself to be soft on China at this week’s Asia Pacific Economic Cooperation (APEC) summit in Australia.

For good or bad, this American administration is following a conciliatory, pro-business policy line toward China.  Some believe this leaves human rights issues at best marginalized and perhaps totally forgotten.

During this week, western newspapers were alive with reports of Chinese government computer hacking — including into private Pentagon files.

President Bush was asked if he intended to discuss China’s hacking with president Hu Jintao of China.  The president said, “I may.”

In fact, he did not.  The president emerged from the meeting with the Chinese President to say, “He’s an easy man to talk to. I’m very comfortable in my discussions with President Hu.”

This strikes us as reminiscent of the president’s first term reflection on Russia’s President Vladimir Putin: “I looked into Putin’s soul and saw a man I could do business with.”

Since late last year, a Chinese ship-attack submarine surfaced within sight of a U.S. aircraft carrier before being detected for the first time in history, China demonstrated an anti-satellite missile capability the first time in history, China has continued to verbally bully Taiwan, and Human Rights Watch and other advocacy groups have given China their lowest ratings for lawful behavior in the international community.

American allies including Japan, South Korea, Taiwan and Australia have expressed concern over China’s military investment and build up.  Prime Minister Howard of Australia has called China’s build up “destabilizing.”

China teamed with Russia a few weeks ago to conduct their largest combined military exercises ever.  And China, along with Russia, has blocked almost all U.S. initiatives in the U.N., including sanctions against Iran for its nuclear program.

China has joined Russia in denouncing U.S. and NATO plans for missile defense in Europe.

U.S. military leaders believe China is supplying arms to the insurgents in Iraq and to Hezbollah in Lebanon, among other places.

China has been complicit in genocide in Darfur, Sudan.

China has failed to meet U.N. environmental goals and China lied repeatedly about poisoned food and other unsafe products it exports around the world.

China has the highest rate of death by execution in the world.

President Bush has looked the other way.

When President Hu invited President Bush to the 2008 Olympics in Beijing, Bush immediately agree — then said he was only interested in the sports at the Olympics and not the politics.  Yet we have historic precedent that leaders like Adolph Hitler worked hard to get the Olympics in their homeland because the political facet of this showcase cannot be discounted.

Washington Times analyst Bill Gertz reported in today’s editions that, “The president repeatedly has called relations with China ‘complex’ but has avoided all criticism of China’s military activities, including the provocative anti-satellite missile test in January, and growing Chinese information warfare capabilities. He has limited criticism of China’s repressive political system to its lack of religious freedom.”

“It’s the Goldman Sachs China policy,” said one defense official, referring to former Goldman Sachs executives Henry M. Paulson Jr., now Treasury secretary, and Joshua B. Bolten, White House chief of staff.

The bottom line: America has put money and deals before human rights.

Related:

Bill Gertz, “Inside the Ring”
http://washingtontimes.com/apps/pbcs.dll/article?AID=/20070907/NATION04/109070053/1008

China sees ‘danger’ in Taiwan’s U.N. intent

China repeats denial of military hacking

China: ‘Trust but verify’ needed

As China Roars, Pollution Reaches Deadly Extremes

Permanent President Putin?

Cold War Redux?

Distrustful of China’s Government at Almost Every Turn

If China Has Nothing to Hide, Why Do They Hide So Much So Often?

Japan Worried By North Korea, China

Australia PM: China military rise risks instability