Since Tuesday I was working on researching this AIG nonsense and found what seemed to be, to my very limited understanding of business, a company that failing hard. To the tune of 4 bailouts totaling reaching an approximate total of $160 Billion.
$160 Billion …
BILLION!!!!
I was so mad all week trying to write. While proofreading my little “article” yesterday I realized that I had only succeeded in punching the keyboard over and over again. Needless to say I was having trouble putting my feelings into words. It’s hard to watch grown adults, who tried to convince us to trust them with our money, turn around and beg the government for money. Such emotions of anger, disgust, and sadness over such gross negligence. Yes, so much gross negligence that even I can’t get behind it, and as you know I love gross negligence.
I mean this company has had to be bailed out 4 times. When I was a kid, we called that "going out of business." I do not understand how we can keep giving money to these companies to keep them in business. Aren't we already in debt? Didn't we already spend all our money on a war or 2? How do we have so much money to help these companies? Why are we wasting our money on companies that are so clearly not going to survive? I am not a stupid person, I have a degree. (they haven't taken that away yet) I understand the concept that we have let ourselves get into this position where if these financial institutions fail, then it could catastrophically crush our way of life (or something), but I can't quite wrap my head around the concept. There are risks involved in business, and successful companies take risks and . . . well . . . succeed. On the other side of things when a business takes a risk (like AIG) and those risks blow up in their face (like AIG), that company disappears. This is how things work! This makes sense to a reasonable human being like myself. So someone PLEASE help me understand why we are giving them
ONE HUNDRED AND SIXTY BILLION DOLLARS!
Finally someone was able to speak to me on my level. Last night, Jon Stewart on his Daily Show absolutely nailed The Dole’s feelings on this subject of AIG and the bailouts. This explanation of the current economic issues and the subsequent government bailouts was very helpful, and made me feel much better about not exactly understanding what was going on (mostly by yelling). Last night's episode is an absolute must watch for anyone who feels a little overwhelmed by all these credit crashes and bailouts.
... and anyone who likes yelling about it.
You have your homework.
Showing posts with label gross negligence. Show all posts
Showing posts with label gross negligence. Show all posts
Thursday, March 5, 2009
Tuesday, February 24, 2009
The Dole Awards #1 – The Best (and biggest) Layoffs of the year
This is truly a treat. These final layoffs combine everything that we could want in a horribly high number of jobs lost. We have a terribly run business, begging the government for money, and still laying off of tens of thousands.
And the winner is ...
#1 General Motors
2/17/09
66,758
I am finding discrepancies in the actual number of layoffs. Some Articles are saying 47,000 but The Forbes Layoff Tracker pegs GM at 66,758. Looking through all these articles and press releases, it is obvious that there is a lot of deceit throughout this entire situation.
So let's dive in and try to pull this one apart, starting with the layoffs.
We are talking about 47 - 66 THOUSAND jobs to be lost over the next year. From what I can tell it's going to be 47 k by the end of this year and probably round up to 66 k through Twenty Twelve. This is truly incredible. They are looking at 20,000 jobs in the US and the rest will be around the rest of the world. You know, since we outsourced all those jobs over the past bunch of years; you know, so they could keep up and stay in business. I don't blame them for outsourcing to central and South America. I understand the concepts and could be considered a fan, but now in this recession we are going to see just exactly how tied together this world is. These layoffs will affect the global economy even though GM is largely stereotyped as only an American company. There are plants all throughout the Americas including large ones in Mexico, Canada, and Brazil. There are also some that are overseas like China as well as Switzerland. GM has a bigger "foreign footprint" than a domestic one. (Note: that is important, remember it for the next paragraph) We could be watching GM finally begin to go out of business, which would not only have disastrous implications in the US but all over the world. As we've seen recently as the American economy goes the world economy goes. The way that outsourcing has gone over the past 10 to 15 years has interlocked all the economies in the world. America, being headquarters to many companies like GM, is the lead domino in a sense.
The phrase "A fish rots from the head down" really seems to sum up my point here.
The layoffs are big and will seem to have a global impact.
"But CJ, we've seen this before in the awards!"
That's right you have. So GM must have done something spectacular to grab the gold. You bet they did. As in spectacularly asking mom and dad, a.k.a the government, for 18 billion dollars in December of 2008, AND THEY GOT IT! They didn't get all 18, yet... Reportedly by February 18th they had already received 13.4 Billion. Awesome! I can't believe it, we're going to bail out a failing business. Why would the US government do this? Because of their "foreign footprint"... Aaaahhh, of course! The foreign footprint! While I agree that the global economy is important, perhaps even as important as the American economy, I don't want to spend American taxpayer money on saving jobs outside of the US. That sounds xenophobic I'm sure, but it's not, I promise you that. This is a real concern for me, and I think it's a very valid one. While it looks like right now only a billion dollars or so is going foreign, specifically to Brazil. (yes, I said "ONLY a billion") But I want to ask why.
Why is this being spent this way?
Why are we even bailing out this company?
Why are we letting them send this money to foreign nations while jobs in this country are
being lost as a record pace?
Taking the opposite side of things, I understand that in order for GM to pull themselves out of this, they are going to need to make sure their entire corporation is running at it's most efficient. I understand that and the argument that making the Brazil plants work better will ultimately help the headquarters in America work better and be more profitable. This makes sense to me and fits in with everything I have been saying. While I, probably selfishly, would prefer to save American jobs I understand that if the global economy gets better than the American economy will follow. I've been preaching it the other way around but am able to see how this could help.
Then I found out that General Motors has asked for an additional 30 billion dollars, and I go back to my questions of why...
Why are we trying to save a company that isn't willing to do anything to save itself?
This company is dying and has been for my whole life. They are seemingly willing to do nothing to get better, they blame others like they are children while they put their hand out and ask for a loan. This is not the first time in our history we have had a gas crisis and this is not the first time in our history that General motors has been in trouble. They offer us big bulky American cars and trucks with cries of Patriotism and 18 miles per gallon. Are we really wondering why sales are down?
I'm a dude, I get it, trucks are awesome. BUT the economy is down, and has been since before just October by the way, and gas prices are up so I'm not buying a truck from you. I'm not even going to buy a new car from you. I'd buy a used car that will last me for 6 years and 120,000 miles. Trust me,I had one a couple years ago, they do actually exist.
So General Motors takes the gold for their commitment to gross negligence. Here's to you guys for your unwavering business plan that, in my opinion, never worked. You've been going out of business since I was a child, and now it looks as though you are going to complete that mission. Don't be mistaken though, this is not just due to you blowing yourselves up. You will notice that Circuit City didn't get any love on this countdown. This is in recognition of your uncanny ability to convince our elected officials that you are deserving of a bailout. So not only have you completely sunk yourself, but it looks like you may succeed in driving this country into the ground as well. After suckering the government to give you 13 billion dollars, you brilliantly went back and asked for over twice as much. Knowing they will almost certainly give you some if not all of it because we have already invested an absurd amount on you that to stop now would mean that we will never see the money we have already spent. It's a brilliant strategy, I have to commend you for it. I mean really, I can't believe you were all able to pull it off, it's nothing short of extraordinary. Honestly, how long with that 30 billion keep you afloat? 2013? 2015? How long do you project it?
I am looking forward the a new Michael Moore Film: "Roger and me 2: A humorous look at how General Motors helped destroy Washington and America as we knew it"
So congratulations again, and congratulations to your partners in crime. Ford and Chrysler were right there with you, they deserve to be mentioned in this with you even though you have stepped up and gone so far above and beyond them both. It really is spectacular.
This is really going to put a different spin on those "This is our country" commercials...
And the winner is ...
#1 General Motors
2/17/09
66,758
I am finding discrepancies in the actual number of layoffs. Some Articles are saying 47,000 but The Forbes Layoff Tracker pegs GM at 66,758. Looking through all these articles and press releases, it is obvious that there is a lot of deceit throughout this entire situation.
So let's dive in and try to pull this one apart, starting with the layoffs.
We are talking about 47 - 66 THOUSAND jobs to be lost over the next year. From what I can tell it's going to be 47 k by the end of this year and probably round up to 66 k through Twenty Twelve. This is truly incredible. They are looking at 20,000 jobs in the US and the rest will be around the rest of the world. You know, since we outsourced all those jobs over the past bunch of years; you know, so they could keep up and stay in business. I don't blame them for outsourcing to central and South America. I understand the concepts and could be considered a fan, but now in this recession we are going to see just exactly how tied together this world is. These layoffs will affect the global economy even though GM is largely stereotyped as only an American company. There are plants all throughout the Americas including large ones in Mexico, Canada, and Brazil. There are also some that are overseas like China as well as Switzerland. GM has a bigger "foreign footprint" than a domestic one. (Note: that is important, remember it for the next paragraph) We could be watching GM finally begin to go out of business, which would not only have disastrous implications in the US but all over the world. As we've seen recently as the American economy goes the world economy goes. The way that outsourcing has gone over the past 10 to 15 years has interlocked all the economies in the world. America, being headquarters to many companies like GM, is the lead domino in a sense.
The phrase "A fish rots from the head down" really seems to sum up my point here.
The layoffs are big and will seem to have a global impact.
"But CJ, we've seen this before in the awards!"
That's right you have. So GM must have done something spectacular to grab the gold. You bet they did. As in spectacularly asking mom and dad, a.k.a the government, for 18 billion dollars in December of 2008, AND THEY GOT IT! They didn't get all 18, yet... Reportedly by February 18th they had already received 13.4 Billion. Awesome! I can't believe it, we're going to bail out a failing business. Why would the US government do this? Because of their "foreign footprint"... Aaaahhh, of course! The foreign footprint! While I agree that the global economy is important, perhaps even as important as the American economy, I don't want to spend American taxpayer money on saving jobs outside of the US. That sounds xenophobic I'm sure, but it's not, I promise you that. This is a real concern for me, and I think it's a very valid one. While it looks like right now only a billion dollars or so is going foreign, specifically to Brazil. (yes, I said "ONLY a billion") But I want to ask why.
Why is this being spent this way?
Why are we even bailing out this company?
Why are we letting them send this money to foreign nations while jobs in this country are
being lost as a record pace?
Taking the opposite side of things, I understand that in order for GM to pull themselves out of this, they are going to need to make sure their entire corporation is running at it's most efficient. I understand that and the argument that making the Brazil plants work better will ultimately help the headquarters in America work better and be more profitable. This makes sense to me and fits in with everything I have been saying. While I, probably selfishly, would prefer to save American jobs I understand that if the global economy gets better than the American economy will follow. I've been preaching it the other way around but am able to see how this could help.
Then I found out that General Motors has asked for an additional 30 billion dollars, and I go back to my questions of why...
Why are we trying to save a company that isn't willing to do anything to save itself?
This company is dying and has been for my whole life. They are seemingly willing to do nothing to get better, they blame others like they are children while they put their hand out and ask for a loan. This is not the first time in our history we have had a gas crisis and this is not the first time in our history that General motors has been in trouble. They offer us big bulky American cars and trucks with cries of Patriotism and 18 miles per gallon. Are we really wondering why sales are down?
I'm a dude, I get it, trucks are awesome. BUT the economy is down, and has been since before just October by the way, and gas prices are up so I'm not buying a truck from you. I'm not even going to buy a new car from you. I'd buy a used car that will last me for 6 years and 120,000 miles. Trust me,I had one a couple years ago, they do actually exist.
So General Motors takes the gold for their commitment to gross negligence. Here's to you guys for your unwavering business plan that, in my opinion, never worked. You've been going out of business since I was a child, and now it looks as though you are going to complete that mission. Don't be mistaken though, this is not just due to you blowing yourselves up. You will notice that Circuit City didn't get any love on this countdown. This is in recognition of your uncanny ability to convince our elected officials that you are deserving of a bailout. So not only have you completely sunk yourself, but it looks like you may succeed in driving this country into the ground as well. After suckering the government to give you 13 billion dollars, you brilliantly went back and asked for over twice as much. Knowing they will almost certainly give you some if not all of it because we have already invested an absurd amount on you that to stop now would mean that we will never see the money we have already spent. It's a brilliant strategy, I have to commend you for it. I mean really, I can't believe you were all able to pull it off, it's nothing short of extraordinary. Honestly, how long with that 30 billion keep you afloat? 2013? 2015? How long do you project it?
I am looking forward the a new Michael Moore Film: "Roger and me 2: A humorous look at how General Motors helped destroy Washington and America as we knew it"
So congratulations again, and congratulations to your partners in crime. Ford and Chrysler were right there with you, they deserve to be mentioned in this with you even though you have stepped up and gone so far above and beyond them both. It really is spectacular.
This is really going to put a different spin on those "This is our country" commercials...
Monday, February 23, 2009
The Dole Awards #2 – Best Layoff in a Leading Role
Here was a strong candidate for the #1 spot, but fell just short in the "gross negligence" column. Never the less, I'm proud of the sheer number of layoffs by this company.
#2 Citigroug
11/17/08
52,000
These layoffs came early but were indicative of what had happened and what was going to come. These were the first major layoffs by someone in the financial sector and have stayed as one of the biggest throughout the recession so far. It's a terribly difficult position for Citi to be in. To some the major layoffs that close to the economic downturn was an admission of guilt. Obviously Citi isn't the only company to blame, but they were thrust to the forefront of the recession in the public eye. So their position was not enviable.
Their perseverance throughout this difficult position was what put them over the top to claim this award, but the layoffs were what put them in the conversation to begin with. We are talking about 52,000 jobs. That is, even in the current scope of things, a $#!% load of jobs lost.
This is an impressive set of layoffs based on the adversity that Citigroup faced. This is why Citi is my leading man. They are able to take the hard line and be the bad guy allowing us to be angry at them and then get over it and begin the healing process. Americans love the bad guys. We love to see someone be unbearably evil, then come back and make that kids movie and show us how much range they have. We love to forgive, and Citi was the first group to come out and be the bad guy. I admire their gusto. The JPmorgans and Bank Of Americas come out afterward with all their layoffs, they just seem like they are following trends.
Not Citi.
They are trailblazers.
Here's to you Citigroup, for making sure they had the Unemployment Insurance benefits worked out before I jumped in the pool. Thanks ...
#2 Citigroug
11/17/08
52,000
These layoffs came early but were indicative of what had happened and what was going to come. These were the first major layoffs by someone in the financial sector and have stayed as one of the biggest throughout the recession so far. It's a terribly difficult position for Citi to be in. To some the major layoffs that close to the economic downturn was an admission of guilt. Obviously Citi isn't the only company to blame, but they were thrust to the forefront of the recession in the public eye. So their position was not enviable.
Their perseverance throughout this difficult position was what put them over the top to claim this award, but the layoffs were what put them in the conversation to begin with. We are talking about 52,000 jobs. That is, even in the current scope of things, a $#!% load of jobs lost.
This is an impressive set of layoffs based on the adversity that Citigroup faced. This is why Citi is my leading man. They are able to take the hard line and be the bad guy allowing us to be angry at them and then get over it and begin the healing process. Americans love the bad guys. We love to see someone be unbearably evil, then come back and make that kids movie and show us how much range they have. We love to forgive, and Citi was the first group to come out and be the bad guy. I admire their gusto. The JPmorgans and Bank Of Americas come out afterward with all their layoffs, they just seem like they are following trends.
Not Citi.
Here's to you Citigroup, for making sure they had the Unemployment Insurance benefits worked out before I jumped in the pool. Thanks ...
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