Bailing Out (of) Bad Business
Jody Lee
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By Jody Lee
radio host, author, political blogger, advertising consultant
Published: November 15, 2008
Well, maybe there’s an alternative or two…
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Posted by ( dadw5boys ) on December 17, 2008 at 10:32 pm
We felt guilty not having a low interest varible rate loan so we took out one the a few weeks ago. We did not want to be left out of the American Experience.
My loan if set at the Fed rate minus 1 %. So today my rate went to a minus 3/4 of a percent. But wait I do not expect the bank to be paying me any interest for keeping the money.
What we did was open 5 different stack trading accounts and divided the money up with the kids and had them make picks of stocks to invest in.
They have learned a lot. A few losses but mostly winners. It is the holding of down stocks that is the killer for them but they are learning.
So far we have turned a $27,000 loan into a $63,700 investment portfolio and we are planning to spend Chritmas in the Bahamas with friends.
We are planning to cash out of the masrket before Jan. incase they decide to crash the market just to break unions.
The kids are so excited to see their investment accounts grow but are ever wary of the news sources who knock or parade a stock about. These news storys like most in the media are planted by someone for a reason.
The kids are looking at the news from around the world and beginning to get a sense of the worlds economic conditions and how businesses work to create shortages to keep the prices high of high demand products like Food.
They are beginning to understand how countries like thew USA missed their chance to stand tall among other world leaders and prevent this process which causes starvation, war and chaos around the world just to make profits.
They see how a Resource Based Economy can work if a Base Price is set and HELD FIRM by all Nations of the World. A base price for each Pound, ounce, gallon, or Cubic Foot of our precious natural resources that can not be lowered by anyone no matter who is in charge of the Government in any country. That elminates the Corruption and defends the Equity of the Citizens of each country so no firgien country is living the high life while stealing the resources of another country.
The Kids are even talking about what Technology can do and they understand why the Patents for inventions just don’t work anymore. They see how the Government buying the Patents from people and then Licensing out the use would work and bring Technology out of the closet to make life better for everyone.
Don’t try this at home unless you have good understand of the stock Market and realize this is gambling. Don’t risk what you not prepared to lose.
Posted by ( D.Hutch ) on November 20, 2008 at 10:59 am
Russ, I didn’t respond correctly to your saying “it still won’t help GM, Ford or Chrysler if you purchase a U.S. manufactured Toyota”. You were 100% correct, if someone wanted to help GM, Ford or Chrysler by purchasing a “foreign made” car or truck you would need to buy a HUMMER, SATURN or SAAB (Gereral Motors owned cars). Buy a Mitsubishi, Mercedes-Benz if you want to help Chrysler ( of course you know Chrysler owns those foreign made products). And of course we need not forget about Ford, they need help too, so let’s buy a Saturn or a Saab or, if we can afford one, let’s buy a Hummer.
Toyota owns Lexius so buying a foreign named car or truck that is made here in the United Stated only helps the American auto workers and the ecomomy here in the United States and the City, Town where that foreign car manufacture is located. Wow! what was I thinking about, I was more concerned about the american auto workers and the local economy than I was the “big three” and their big automotive plants outside the U.S. , sorry bout that old friend, I guess we do need to do our part to help support those foreign auto workers.
Posted by ( Russ ) on November 19, 2008 at 10:29 pm
Hutch, let me be clear, I also am not in favor of bailing out the auto companies. I just said buying a Toyota, Nissan, or whatever’s not going to help the domestic auto industry.
I have eight fords, two Toyotas, and one chevy in my business. I have a ford pickup and a chevy car personally. So I spread it around, however I’m against bailouts. It’s a little tight in my business right now. I can assure you the government wouldn’t bail me out, although I would never ask. It’s just not my nature.
Posted by ( D.Hutch ) on November 19, 2008 at 1:04 pm
Russ, had it not been for Toyota, Nissan, Isuzu and Honda, just to list a few of the “foreign made” manufactors, helping the “big three” build a more dependable, reliable, fuel effIcient car or truck, the “big three” would have gone belly-up long before now.
Buying a so called “foreign made” product may not directly help GM,Ford or Chrysler, but it does rattle their cage. The U.S. Automotive Industry has been in the ditch for several years, they shot themselves in the foot, so-to-speak.
They ask for help from the foreign manufactors to improve their product, and they did that, but they failed to learn the most critical part of the foreign automotive industry, EFFICIENTCY.
I saw two signs over the Parts counters at a Ford and a GM dealer one time that read “The whole damn world is on back order”, I learned why those signs were there after ordering a part for my GM car. I also had to order parts for my Toyota 4X4 and my daughters Mazda 6 (which Ford now owns a big portion of) and the parts arrived overnight, that’s EFFICIENCY.
I toured the Toyota Plant in Georgetown Kentucky a few years ago, the only word to express it would be IMPRESSIVE. That facility has 3 cafereria’s, several break rooms, a day-care center, Gyms, and a Medical Department for the employees. But the thing that empressed me most was that they do not have a stock-pile of parts on hand, they recieve shipments daily from vendors through the United States. Reliant Diesel here in Bristol Va. (not Japan) was, at one time and may still be, a vendor for Toyota.
Sorry to ramble but I get a little ticked at where this country and its Industries and Corps. have headed the past several years. We taught the Japanese how to rebuild a Nation, for Gods sake, after we almost destroyed it with an Atomic Bomb. But we can’t insert a finger in a certain part of the anatomy, even if we had detailed step-by-step instructions on how to do so.
Now the American automotive industry wants the American taxpayers to bail them out, GIVE ME A BREAK.
Posted by ( Russ ) on November 18, 2008 at 10:21 pm
Hutch, I realize that the foreign auto manufacturers have a substantial manufacturing base in this country. However, it still won’t help GM, Ford, or Chrysler if you purchase a US manufactured Toyota.
Posted by ( D.Hutch ) on November 17, 2008 at 7:12 pm
Russ, I agree with what you said about the Big Three, GM, Chrysler and Ford filing chapter 11 and starting over. That’s is the best thing that could happen to the so-called American Automotive Industry and it’s workers. If the “Big Three” wants the U.S. taxpayers to bail them out they should be forced to relocate their factories back to the United States. We should not be helping anyone that has taken jobs from the american auto workers and give those jobs to people in Mexico, Canada, and many other foreign countries. You ask “who is going to bail out the government”, the sad answer is the lower/middle working blue collar taxpayers, for generations to come.
Oh Yea! Russ you should find out where the Toyota’s and Nissan’s are being built, they are more American Made than any of the “big three” are. Find out who the biggest employer is in Georgetown Kentucky.
Posted by ( Russ ) on November 16, 2008 at 8:27 pm
Although the five thousand dollar refund isn’t necessarily a bad idea, what’s to keep the recipients from purchasing a Toyota, Nissan, or some other foreign manufactured auto?
Sadly, this process began with the Wall Street bailout, and now we’ve embarked on a slippery slope where there is no NO in sight. Reward failure, punish success, may as well be the government’s mantra.
The real question is who is going to bailout the government? Read the column by Jim Cooper in today’s Bristol Herald Courier. If that doesn’t raise some eyebrows then I don’t know what will.
Wall Street’s answer should have been no. The auto companies answer should be no. The auto companys should have to file bankruptcy under Chapter 11. Then they can reorganize, throw out the current management and renegotiate with the UAW and hopefully emerge stronger for it.
By the way, why aren’t there prosecutions being announced regarding these Wall Street thieves? Martha Stewart get’s caught insider trading, gets a 30,000 dollar payout, and goes to jail. Wall Street bankers with their political allies steal billions and not one indictment thus far.
Posted by ( dadw5boys ) on November 16, 2008 at 9:13 am
Jody, why didn’t you speak up when the Republicans satarted allowing the NIJA LOANS.
No ID, No Job, and no credit checks were allowed in Violation of the RICO act. And why no speak up when the Republicans blocked the change of that they passed law since 2006. See people from all over the world have been getting loans from these predatory lenders then going back to their country with a bag of cash and leaving us the debts. When you saw those adds on T V for low cost mortages that you knew were sucker adds why didn’t you speak up and say “HEY PEOPLE THESE ARE SUCKER LOANS WITH VARIABLE INTEREST AND BALLON PAYMENTS”. Your in the Media and you see now that your life and money is tied to those who made stupid decisions. So it is up to us to be our brother keeper when possible.
Also, for years I have been buying used rental vans then having the transmission rebuilt and they usually last me 4 to 5 years with few problems. Total cost $3,500.00 and no long term debt. I keep at least 2 of these all the time because of the kids.
Sorry I stopped playing the I game long ago and went into savings mode. There are problems however. The whole world runs at the speed of light and I have to drive slow to make my vechiles and investment last. In every area I have to seek to get the best quality and value from everything. I can afford the luxury of prideful things like new car prices with the long term interest payment, full coverage insurance. Well I could afford the cost of new stuff but I have better uses for my money.