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There's no need for Kansas City Southern (KSU) to go to capital markets for financing when it...

There's no need for Kansas City Southern (KSU) to go to capital markets for financing when it can tap the U.S. government for a "sweetheart deal" for 30 new GE locomotives. Bruce Krasting is outraged: "There is only one reason that GE keeps sucking on the country’s teat, the CEO is best buds with Obama... It's crony capitalism of the very worst kind."
Comments (19)
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    You can Bet MSNBC (http://bit.ly/nZ6yti) and Comcast (http://bit.ly/x8UqoM) will cover for them.

     

    http://bit.ly/hFyjLE

     

    Obama has got to go.
    24 Feb 2012, 06:24 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (696) | Send Message
     
    Yep. At least these are real products and real services, unlike the "clean energy" stimulus grants and loans. Now that was true cronyism. At least we don't have to endure, in addition to billions of dollars wasted, another lecture from Obama, that more oil is bad for us, every time gasoline spikes...
    24 Feb 2012, 08:50 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Biagi,

     

    True, The industry is more viable than some of the other stuff.

     

    But if so viable, why don't they procure financing via the same means as everybody else?

     

    That is Cronyism by definition.
    24 Feb 2012, 09:13 PM Reply Like
  • zbignue
    , contributor
    Comments (313) | Send Message
     
    You're absolutely right. And, to keep from being just another screwed citizen by Obama's cronyism, when I learned that Immelt was appointed his business Czar, I bought 1000 shares of GE. There was no way I was going to be able to stop the inevitable but, I figured I might as well profit from it. To me, it was as close to a sure thing as one could get. And, the dividends are good, too.
    24 Feb 2012, 09:18 PM Reply Like
  • J 457
    , contributor
    Comments (951) | Send Message
     
    Can't beat um, join em. Americas new whorey theme song.
    25 Feb 2012, 11:33 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    When in Rome...........
    24 Feb 2012, 09:19 PM Reply Like
  • pinkyr
    , contributor
    Comments (8) | Send Message
     
    Immelt is a Republican; they are used to doing things this way. He's smart and taking good care of his stockholders. I own it and will happily sell you some puts! Until we fix our corrupt system so that politicians can't sell their votes to the highest bidder, you might as well accept reality and profit from it. Smell the coffee.
    24 Feb 2012, 09:39 PM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Immelt is smart?

     

    Just do a 10 yr comparison chart on GE vs UTX.

     

    Smart if you define maintaining Crony connections as smart.

     

    Shareholders are probably stupid though.

     

    http://yhoo.it/zQ4WGZ

     

    Why is Immelt still even there?

     

    http://bit.ly/w2DZaV

     

    http://bit.ly/Abdwfv
    24 Feb 2012, 09:57 PM Reply Like
  • pinkyr
    , contributor
    Comments (8) | Send Message
     
    Immelt is trying to fix GE after Welch turned the company from a manufacturing giant into a finance company that bought trash mortgage derivatives. Immelt and Obama both have huge damage to repair. Neither is responsible for the damage done before they were in charge. Everyone who was in Congress prior to 2008 should be defeated when next up for reelection.
    26 Feb 2012, 07:29 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Immelt has been in place since 2001.

     

    That's quite a bit before 2008 methinks.
    26 Feb 2012, 11:01 AM Reply Like
  • pinkyr
    , contributor
    Comments (8) | Send Message
     
    True, but it isn't before GE was turned into a finance company. We have to face the fact that almost every financial institution in America and Europe screwed the pooch (us) big time. I expect China is in the same boat, but a dictatorship has the luxury of control and secrecy.
    27 Feb 2012, 09:09 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    http://onforb.es/yml7TE

     

    http://bit.ly/zbSfA0
    24 Feb 2012, 10:14 PM Reply Like
  • davidbdc
    , contributor
    Comments (3153) | Send Message
     
    It tough to get outraged any more. The entire system in DC is corrupt and the politicians are our greatest enemies.

     

    Hard work and fair play are a thing of the distant past. Our system more and more resembles the Soviet system we supposedly vanquished. The triumvirate of the financial elite, bureaucrats, and politicians have seized power in our country without a coup. And they seize more and more of our freedoms and earnings to fund their lifestyles.

     

    Eventually the debt will force severe cuts in social spending..... and thats when it will all fall apart.
    25 Feb 2012, 01:17 AM Reply Like
  • pinkyr
    , contributor
    Comments (8) | Send Message
     
    You have it all right. Please vote as many times as possible!
    26 Feb 2012, 07:31 AM Reply Like
  • pcroll
    , contributor
    Comments (8) | Send Message
     
    Unfortunately this is a bipartisan problem, republicans are into crony capitalism as much or more than Democrats. If they were true conservatives they would be against government subsidizing corporations. But look at Newt taking money from Fannie Mae (or was it Freddie Mac?)
    25 Feb 2012, 03:12 AM Reply Like
  • bigfourroad
    , contributor
    Comments (66) | Send Message
     
    1. GE was not a consideration in the credit appraisal for the KCS locomotive loan -- KCS was the entity being appraised. 2. KCS has an excellent history of repaying its debts and an excellent business position going forward. 3. The locomotives are being produced in Erie PA which the last time we checked is in the USA albeit across Lake Erie from Canada. 4. On that score, for a time after EMD the other producer was sold by GM (yup that GM) to private equity it moved its production to Ontario (that is on the other side of the Lake in Canada). It has since been moved back (onshored) by new owner Caterpillar for the best of economic reasons -- production costs. 5. We are not enamored of Imelt and GE's paying no taxes either but that's another story from the RRIF loan program loans to KCS -- let's be fair. Moreover, RRIF is usually criticized by all and sundry for being too strict and difficult, not the opposite -- hardly fertile ground for Solyndra [sp?] type cronyism. How do I know? -- been there done that.
    25 Feb 2012, 03:31 AM Reply Like
  • maudie
    , contributor
    Comments (473) | Send Message
     
    So you defend the Soviet system of taking from the workers, eliminating investors, and rewarding the crony's? Been there and doing that. Sweet.
    25 Feb 2012, 04:10 AM Reply Like
  • RS_Gray
    , contributor
    Comments (123) | Send Message
     
    bigfour,

     

    Thanks for bringing a little reality to the discussion....such as it
    is.

     

    25 Feb 2012, 07:16 AM Reply Like
  • David INC.
    , contributor
    Comments (226) | Send Message
     
    The rail system is the way to go. Money well spent! It's faster Cheaper safer. The new locomotives are faster cheaper and safer...
    so the loan is designed to make an UPGRADE- faster cheaper and safer. For infrastructure we get our products and materials. If it was a bullet train... or a Obama theme park I would throw up my arms... and my lunch. "All Aboard" on this one.
    25 Feb 2012, 12:13 PM Reply Like
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