CIT Failure Would Be Mistake

Ignoring CIT and the small/medium size business' it serves would be a tactical and financial mistake by the Obama Administration. It would be a breaking of faith with small and medium sized business. These are the job creators in the past, now and in the future. The app. 1,000,000 accounts that CIT serves would not easily, if at all find a replacement. Big bank business models are not geared for CIT-type accounts. Consequently bankrupties would follow for some of those accounts and include others in their greater spheres of influence.

The chump change of $4 billion that CIT needs is relatively nothing compared to the hundreds of billions that already have gone out the window to the constructive criminals at AIG,B of A, Citigroup, GM and Chrysler. Small business built this country. Small business owners ran for office . Now many of our politicians are lawyers or people who never had a real job. This results in leadership that doesn't get it or worse get it but are paid to ignore it.

Bye Bye General Motors And Ford ?

Today General Motors and Ford were both downgraded by Wall Street analysts to sell. Now they tell us ! The future looks like either bankruptcy or a government- assisted bailout which in either case would leave the existing shares worthless.

The Volkswagen Bug showed up on our shores in the 1950's and the Japanese invasion of cheap, economical- to- run cars joined VW. But GM, Ford and Chrysler didn't take the hint. They continued to build expensive gas guzzlers with high profit margins . They bribed Congress to keep miles-per-gallon requirements at a low threshold and even got the lawmakers to give tax incentives to buyers of trucks and SUVs.

My take on this tactic by Detroit was that the obligations to pay the inflated demands of the United Auto Workers necessitated the high-priced autos. Now this is not the way to meet the public's changing trends toward affordability in transportation choices. Detroit went down the wrong way on a one-way street.