UAW Rejects Ford Proposal

At the end of October the United Auto Workers rejected a Ford proposal that would, among other things, ban the union from striking for higher pay or benefits until 2015. This strategy may be used in upcoming negotiations among other unions and their employers. If so, I would hope the unions request the favor be returned before they consider accepting this option: Management salaries be frozen and NO bonuses – cash or stock – be issued until the agreed upon year when such strikes can resume.

 

Bankers leading Treasury by the nose ring

Who is calling the shots? Treasury or the bankers themselves?

When the bankers called “Help” Treasury threw the rope and pulled them in yet they turn around and jump back into the turbulent water and say to Treasury, “Take your rope, I can’t live the way I want to live with this dang rope attached. As for your silly stress test we are passing with flying colors and we will flaunt that publicly though you don’t want us to. We will accept your increased FDIC guarantee, too, because no rope is attached to that blessing.”

In other words, keep your nose out of our business.

Despite my strong desire to sustain a capitalistic, free market system and keep it alive and well, it would be so tempting — were I in such a position to do so — to kick out the executives and say I will run your stinking bank.

It’s just another demonstration of how these powerful execs care nothing about us on Main Street.

Perqs for the Execs keep on coming

From Michelle Leder:

In office towers across Manhattan, there are more than a few former chief executives whose ex-employers continue to pay for their office space and secretarial services.

Among the better-known examples are Charles O. Prince III, who once led Citigroup, and E. Stanley O’Neal, previously head of Merrill Lynch.

Now, Richard D. Parsons, the former chairman and chief executive of Time Warner, joins this esteemed group. Judging by the company’s recent proxy, Mr. Parsons’ new office appears to be a very nice space.

In the filing, Time Warner disclosed that it would spend $776,000 this year to provide Mr. Parsons with office space, secretarial services and furnishings “comparable to that which he was provided during his employment.”

Michelle’s website that keeps us informed of such attrocities is footnoted.org.

High paid foreign workers benefit from our bailout

Not only do they get jobs Americans could have they get some of the high paying jobs.

Senator Chuck Grassley furious about:

The dozen banks now receiving the biggest rescue packages, totaling more than $150 billion, requested visas for more than 21,800 foreign workers over the past six years for positions that included senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. The average annual salary for those jobs was $90,721, nearly twice the median income for all American households.

“In this time of very, very high unemployment … and considering the help these banks are getting from the taxpayers, they’re playing the American taxpayer for a sucker,” Grassley said in a telephone interview with AP.

We may optimistically assume that these practices will stop because of our horrible economy, trusting that our brilliant corporate leaders know we Main Street Americans need jobs.

Well, we thought that we learned lessons from Enron and MCI and Tyco, too didn’t we? HA!

Let’s face it, our elected invertebrates just don’t help us at all. I think Sen. Grassley is one who is growing a backbone. You go, Chuck! We need you!

Where’s Bucky now?

R. Buckminster Fuller tried decades ago to teach us that bigger is not always stronger. True, his application was in buildings, but it applies to businesses as well.

I firmly agree with Professor Don Holley of Boise State University who was quoted in the Statesman yesterday regarding the mega-mergers in our banking industry: “If they are too big to fail, they are too big to have.”

Agreed!

Then in another small article tucked away in the Statesman we read:

“Pfizer to buy Wyeth for $68B; 20,000 jobs to be lost”

We continue our path of allowing bigger companies and simultaneously eliminating jobs. This should have been capturing our attention for the past 20 years and especially today, doesn’t it hurt your eyes (and heart) to read “20,000 jobs to be lost”?

Our Bailed-out Corporations still using Tax Havens

From The Washington Post:

The new Government Accountability Office (GAO) report, released today by Sens. Byron L. Dorgan (D-N.D.) and Carl M. Levin (D-Mich.), lists Citigroup and Morgan Stanley as having set up hundreds of tax haven subsidiaries, along with American International Group and Bank of America. Also in the tax-haven list are well-known companies and such federal contractors as American Express, Pepsi and Caterpillar.

Our Invertebrate Elected Representatives cannot stop this? Even after they deliver funds on the silver platter? Get real!!

Quantitative Easing clearly explained

Marketplace Senior Editor Paddy Hirsch has a superb video that clearly explains Ben Bernanke’s Plan B to jump-start our sagging economy. The term Quantitative Easing is graphically defined.

Despite this better understanding what Bernanke is trying to do, the plan seems similar to Plan A (providing cheap money to lenders) in that Ben is coming in through the back door. It seems a bit feeble when I think we really need a hammer over the heads of the lenders to make them loan this money.

If these plans do not work, as Hirsch mentions in this video, the dollar will have become greatly devalued and this will be curtains for many of us.

GM Gets its loan, then hires foreigners

General Motors begs for a loan to survive. They secure the money and promptly sign a contract with a South Korean company.

Selfish.

The banks are provided cheap money and they do not loan it to us on Main Street.

Selfish.

It is hard to argue in support of the capitalist system when our government allows selfish corporate leaders to continue behaving as they have for the past couple decades. Almost tempts me to want nationalization of these banks and manufacturers. Scary, scary thinking for a capitalist fundamentalist.

Think twice about Offshoring

Fortune published 10 suggestions for companies to follow to weather this drastic economic downturn. These were gleaned from Marketplace. I include one of the ten that incites encouragement for this Main Street citizen:

Think twice about offshoring.

Manufacturing costs aren’t the only factor in an offshoring decision. Taxes, tariffs, speed, and transition costs can make a big difference. But at a time when costs count more than ever, don’t assume that offshoring is still your best option.

BRING THE JOBS BACK HOME!

Private Equity receives assistance from our taxpayer bailout

As reported by AP’s Martin Crutsinger on Marketplace, GM’s finance arm GMAC will be allowed to apply for assistance from our $700 billion fund.

So now we taxpayers will be helping a private equity firm survive: “The company [GMAC] is 51 percent owned by Cerberus Capital Management LP, the investment fund that also owns Chrysler. GM owns the remaining 49 percent of the company.”

This is more than annoying. These investors get ridiculous tax breaks, have notoriously stripped corporations and resold them, and reaped billions from these devastating maneuvers. Now we are bailing this one out? Get real.