mediocris

Why AIG Gets Billions While GM Gets Scorn

Open a small business without a line of credit or run a bank without mortgage insurance. It could be done if we sink to the level of Cuba or Saudi Arabia.
One of the reasons that GM is failing is that they cannot continue to get a line of credit (from companies like Bank of America or Citi) unless they get an infusion of capital, a bridge loan. Multiply that over the entire economy, no credit for anyone. Our modern, prosperous, economy would collapse and even the Treasury Dept.could not save it. The "wise men" in Washington correctly called that one.

On Dec 13 11:06 AM User 173545 wrote:

> What a load of crap. Sure, we need a transparent financial system
> without abuse to "lubricate the engine of the economy", but to claim
> that companies like AIG are critical to our entire economy is ridiculous.
>
>
> AIG, Citi, BofA, etc are parasites that suck wealth from the wealth-creating
> sector.
>
> Go back to Econ 101. There are only a few ways to create wealth,
> and all involve adding value to more basic goods. Converting mined
> materials into usable materials for manufacturing, converting materials
> into manufactured goods, lumbering, fishing, etc.
>
> All together - bankers and insurers don't create wealth; they manage
> and redistribute wealth. If the wealth-creating sector dries up,
> we won't need bankers, lawyers, or insurance salesmen.

Why AIG Gets Billions While GM Gets Scorn

With a college degree and 4 years of experience I interviewed for a production and inventory control position in California. I asked the interviewer about the retirement program. He got red in the face and said "Hell yes, we have a retirement plan here. When you are 65, you get out". I got the job. No benefits except for a sketchy health insurance plan with really high deductables (the plan stopped if you retired, of course).


On Dec 13 01:51 AM User 318684 wrote:

> Please give me an example of a company that any reader of this website
> would work for that does not give excellent benefits. I have worked
> for several large companies and the benefits are excellent for average
> employees. I work in technology by the way and have a pension, full
> benefits, 401k, decent pay. You are basically saying that an auto
> worker makes something more than an average professional, that is
> simply not being honest. At least the auto workers provide a useful
> service which cannot be said for the vast majority of major financial
> institutions. The financial sector's business model has been predicated
> upon a consumer savings rate that over 30 years went from over 10%
> to -1. That is being reversed as we speak which means that these
> large financial companies are dead in the water for the current cycle,
> decades to come.

Why AIG Gets Billions While GM Gets Scorn

Financial institutions such as AIG are critical to to functioning of our entire economy. The same cannot be said for auto manufacturers. We could easily import all of our cars from foreign countries (with low wages and equally low standards of living), with only slight ripples in the functioning of our daily lives. The failure of finance would bring down the whole house. Lending, insurance, and reinsurance are vital like the electric company and the telephone company. These lynchpins hold the whole economic structure together.

Obama's Infrastructure Proposal: Stimulus Package to Nowhere?

On Dec 10 09:41 AM Carlos Portocarrero wrote:

> I stand corrected Fran. It should've read "doesn't actually build
> bridges." As for Caterpillar, I had Toro on my mind for some reason.
> Total brain fart on my part.




You might have been thinking of Deere. They make "crawlers" for construction as well as lawnmowers. They should also benefit from Obama's stimulus, although their primary niche is agricultural.