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.

Lincoln, Obama, UAW & Civil War

Abraham Lincoln was quoted, " These capitalists generally act to fleece the people". What would Abe say about the United Auto Workers?

Obama ,who likes to invoke Lincoln, said something about the UAW . He fleeced the capitalists by giving the UAW more of Chrysler and General Motors than the bond holders after the federal bailout. That's an ironic metaphor for the North usurping states rights in the South by way of a Civil War.  A reversal of South Carolina firing on Fort Sumter.

Prepare for the future. The government is getting more aggressive.

Chrysler Should Have Been Allowed To Fail

The shameless auto executives are back begging for more money. They remind of the young man pleading his case before his sceptical parents. "Please just give me one more chance. I will be home on time and I promise to fill up the gas tank this time."

The parents retort," But son you are a mature man now. Some of your classmates have started their own families and they own a home and own their own cars. When will you grow up? We have other obligations."

Former Chrysler CEO Lee Iacocca made a sucessful plea for a government bailout some 30 years ago. And now Chrysler is back but this time with GM and Ford at the same table. Maybe if Chrysler was allowed to fail years ago, GM and Ford would have worked harder and the UAW would have learned a lesson that would have avoided todays mess?

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.