Comments on: Bush defends auto industry bailout http://www.capitolhillblue.com/node/13573 The oldest political news site on the Internet Thu, 09 Feb 2012 18:29:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: KaraS http://www.capitolhillblue.com/node/13573/comment-page-1#comment-44622 KaraS Wed, 30 Nov -0001 00:00:00 +0000 #comment-44622 Bush on bailout: "I don't care and it's none of anyones business where the money is going" http://url.moosaico.com/5643 Bush on bailout: “I don’t care and it’s none of anyones business where the money is going”

http://url.moosaico.com/5643

]]> By: Cashel Boylo http://www.capitolhillblue.com/node/13573/comment-page-1#comment-44624 Cashel Boylo Wed, 30 Nov -0001 00:00:00 +0000 #comment-44624 More Banker Bailouts The simple truth is: GM Corp, Chrysler Corp and Ford Corp DO NOT MAKE CARS. Never in history has one of these bloated mismanaged money juggling corporations ever made a car. They are not carmakers, they are simply moneymakers. They do not make anything other than money. And they do not make their money by making cars. They are not car makers, they are defacto BANKS -- and they make their money the same way all banks do – not by producing anything, but by BORROWING MONEY AND LENDING MONEY. And these corporations do not employ one auto-worker. The cars are made by their subsidiary companies, contractors and employees, providing the corporations with enormous cashflow that is in turn lent again – and again and again and yet again. The car maker subsidiaries of the corporations employ only a quarter-million workers. And these companies will be lucky to get one cent of any bailout. They will get only whatever may be left after the corporations have refilled all their deficient beg borrow steal and lend accounts. Contractor companies employ three times as many as the corporation subsidiaries – around three-quarters of a million – and these companies will NEVER see any sort of money from any sort of bailout. The corporations borrow money at low interest – by selling stocks, raising debentures, issuing bonds and borrowing from other banks. They lend the borrowed money at high interest to their subsidiaries and to their contractors and to their consumers, making exorbitant profits in the process. The enormous cash flow from multiple sources ebbs and flows. From time to time, there is some potentially idle money lying around – for a few seconds – then it is out in the short-term money market earning interest. Sometimes this money is used to buy “securities” that look attractive and reasonably liquid – backed by, say, home mortgages. Maybe bundled securities. And the money is moved out of the real economy into the new Conomy, where it well may blunder into some of the $27 trillion worth of bundled, debt-backed securities that have swamped financial markets since 2001. No prize for guessing who made the change in 2001. The reason these corporations are in trouble is not their fifty years of gross stupidity in car design and manufacture. The reason is that right now, these banks (aka corporations) cannot borrow money. Nothing whatsoever to do with making cars. They cannot borrow money because there isn’t any money. There never was any money. The so-called “legal,” “licensed,” “authorised,” “regulated” whatever banks were allowed even pre-Bush to lend ten times their capital. Bush, Cheney, Wolfowitz (now comically running World Bank) held this to be unnecessary restraint and allowed them to lend any amount of money they cared to lend, regardless of their capitalization or legitimate borrowing capacity. Money lender executives like Hank Paulson cheered enthusiastically and made many millions. They lent many times all the so-called “money” in existence – on security that was as non-existent as the money. Non-banks were way outside of the farcically “regulated” system and borrowed and lent as they wished, making up paper securities to “secure” the paper money. And then derivatives of derivatives, vapor money on vapor security. Saving the flatulent, ridiculous, anachronistic, nepotistic, feudalistic money-lending fiefdoms that own auto manufacturer subsidiaries will not save one of their subsidiaries or contractor companies or one employee job. What it will do, all it will do, is save GM Bank, Ford Bank, Chrysler Bank, their inept management and their major stockholders. The obvious alternative is to liquidate these corporations/banks by whatever means fits – and rescue intact the subsidiary companies and their line managements and the contractor companies that actually do make cars. These real carmakers can then be sensibly restructured under competent carmaker (not moneylender) management, and there just might be some future for American auto manufacture. Cashel Boylo More Banker Bailouts
The simple truth is: GM Corp, Chrysler Corp and Ford Corp DO NOT MAKE CARS.
Never in history has one of these bloated mismanaged money juggling corporations ever made a car.
They are not carmakers, they are simply moneymakers. They do not make anything other than money.
And they do not make their money by making cars.
They are not car makers, they are defacto BANKS — and they make their money the same way all banks do – not by producing anything, but by BORROWING MONEY AND LENDING MONEY.
And these corporations do not employ one auto-worker.
The cars are made by their subsidiary companies, contractors and employees, providing the corporations with enormous cashflow that is in turn lent again – and again and again and yet again.
The car maker subsidiaries of the corporations employ only a quarter-million workers. And these companies will be lucky to get one cent of any bailout. They will get only whatever may be left after the corporations have refilled all their deficient beg borrow steal and lend accounts.
Contractor companies employ three times as many as the corporation subsidiaries – around three-quarters of a million –
and these companies will NEVER see any sort of money from any sort of bailout.
The corporations borrow money at low interest – by selling stocks, raising debentures, issuing bonds and borrowing from other banks. They lend the borrowed money at high interest to their subsidiaries and to their contractors and to their consumers, making exorbitant profits in the process.
The enormous cash flow from multiple sources ebbs and flows. From time to time, there is some potentially idle money lying around – for a few seconds – then it is out in the short-term money market earning interest.
Sometimes this money is used to buy “securities” that look attractive and reasonably liquid – backed by, say, home mortgages. Maybe bundled securities. And the money is moved out of the real economy into the new Conomy, where it well may blunder into some of the $27 trillion worth of bundled, debt-backed securities that have swamped financial markets since 2001.
No prize for guessing who made the change in 2001.
The reason these corporations are in trouble is not their fifty years of gross stupidity in car design and manufacture.
The reason is that right now, these banks (aka corporations) cannot borrow money. Nothing whatsoever to do with making cars.
They cannot borrow money because there isn’t any money.
There never was any money.
The so-called “legal,” “licensed,” “authorised,” “regulated” whatever banks were allowed even pre-Bush to lend ten times their capital.
Bush, Cheney, Wolfowitz (now comically running World Bank) held this to be unnecessary restraint and allowed them to lend any amount of money they cared to lend, regardless of their capitalization or legitimate borrowing capacity.
Money lender executives like Hank Paulson cheered enthusiastically and made many millions.
They lent many times all the so-called “money” in existence – on security that was as non-existent as the money.
Non-banks were way outside of the farcically “regulated” system and borrowed and lent as they wished, making up paper securities to “secure” the paper money.
And then derivatives of derivatives, vapor money on vapor security.
Saving the flatulent, ridiculous, anachronistic, nepotistic, feudalistic money-lending fiefdoms that own auto manufacturer subsidiaries will not save one of their subsidiaries or contractor companies or one employee job. What it will do, all it will do, is save GM Bank, Ford Bank, Chrysler Bank, their inept management and their major stockholders.
The obvious alternative is to liquidate these corporations/banks by whatever means fits – and rescue intact the subsidiary companies and their line managements and the contractor companies that actually do make cars.
These real carmakers can then be sensibly restructured under competent carmaker (not moneylender) management, and there just might be some future for American auto manufacture.
Cashel Boylo

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