Day: December 27, 2008

Random Thoughts

As I continue to say, I take a lot of notes during the course of a day, some makie it to posts and others do not.  These did not make it into a post, but I would like to get feedback from my readers to help me determine what is popular and what is not.

1–Are not the TV ads for lawyers to help people with their tax problems, not helping individuals defraud the government?

2–Goldman Sachs paid 1% in taxes for ’08, down from 34.1% in ’07.

3–Does anyone other than a Vegas resident give a crap that it snowed there?

4–What is it about Illinois?  Cops beating bartenders, ex-cops murdering their wives, that is more than one and then there is the Blago thing……Illinois is just teaming with scandal.

5–Did you know there is a pill, Oxycut, that will give you 6 pack abs when taken orally?

6–How many people are being screwed by “reverse mortgage” schemes?

7–AIG after getting billions in bailout funds still has its fleet of jets–but yet automakers caught grief for using them.  The battle of the collars–white vs blue.

TARP Application

TARP, the Troubled Assets Recovery Plan, legal-ese for the “Bailout”.  If you have ever filled out a loan application, was it ever easy?

My last major purchase I had to promise to give them a quart of blood or my first male born.  In other words it was a trying and complicated ordeal.  But the group that fleeced the American taxpayer out of billions had it much easier than “Joe Sixpack” has ever had it.  When will the American people wake up and smell the damn coffee?

Below is the application that an institution needs to fill out to receive billions of dollars of taxpayer money.  There is more paperwork to buy a TV than to get billions.  Why is that?

Please complete the following information and follow the submission instructions as described
on your Federal banking agency’s website. In addition to completing the information on this
form, please provide a description of any mergers, acquisitions, or other capital raisings that are
currently pending or are under negotiation and the expected consummation date (no longer than
1 page).
In the event the applicant files an application with the appropriate Federal banking agency
prior to the availability of the investment agreement, the applicant must file an amended
application which includes updated responses to any items in the application that required prior
review of the investment agreement.
Institution Name:

Address of Institution:

Primary Contact Name:
Primary Contact Phone Number:
Primary Contact Fax Number:
Primary Contact Email Address:
Secondary Contact Name:

Secondary Contact Phone Number:

Secondary Contact Fax Number:
Secondary Contact Email Address:

Page 2

RSSD, Holding Company Docket
Number and / or FDIC Certificate
Number, As Relevant:
Amount of Preferred Shares
Requested:
Amount Of Institution’s Authorized
But Unissued Preferred Stock
Available For Purchase:
Amount Of Institution’s Authorized
But Unissued Common Stock:
Amount Of Total Risk-Weighted
Assets As Reported On The
Holding Company’s Or Applicable
Institution’s Most Recent FR-Y9,
Call Report, Or TFR, As Relevant:
Institution Has Reviewed The
Investment Agreements And
Related Documentation On
Treasury’s Website (Yes/No):

Describe Any Condition, Including
A Representation Or Warranty,
Contained In The Investment
Agreements And Related
Documentation, The Institution
Believes it Cannot ComplyWith By
November 14, 2008 And Provide A
Timeline For Reaching
Compliance1:
Type of Company2:
Signature of Chief Executive
Officer (or Authorized Designee):
Date of Signature:

You mean NOTHING to the people in charge!  You are their cash cow.  Is it not about time to get angry?  You wanted change and you got screwed!  Smile!  It ain’t over yet, but the next time bring your vasoline, maybe it will not hurt so bad.

How About A 4 Day Work Week

Like many companies, Pella is looking to cut expenses because of the economic downturn. But instead of laying off more workers, the Iowa manufacturer of windows and doors is instituting a four-day workweek for about a third of its 3,900 employees. Chris Simpson, a senior vice-president at the company, acknowledges it’s an unconventional move. But Pella believes the economy could turn around faster than most people expect, and it doesn’t want to be caught short of experienced workers. “Our contention is, consumer confidence will rebound,” says Simpson. “If there’s a (government) stimulus package of some kind, we think people are going to respond.”

A few employers are following Pella’s lead in shortening the workweek. They include steel companies such as AK Steel (NYSE:AKS – News), the city of Atlanta, small newspapers, and hospitals. According to the U.S. Bureau of Labor Statistics, the number of employees who normally work full-time but now clock fewer than 35 hours a week because of poor business conditions has climbed 72%, to 2.57 million in November 2008, from 1.49 million in November 2007. “More companies are exploring alternatives to layoffs,” says John A. Challenger, chief executive officer of the consulting firm Challenger, Gray & Christmas. “If they can keep people on until the business turns around, the company would be in much better shape to ramp up quickly.”

Arnie Gets Sued

Looks like this is an Arnie type of day……

Two public employee unions on Monday sued Gov. Arnold Schwarzenegger to block his effort to furlough state workers in a cost-cutting measure as California’s treasury runs out of money.

Last week, Schwarzenegger issued an executive order to require that all state employees take two unpaid days off each month starting in February. The governor said the measure is needed to conserve cash, with the state budget gap estimated to reach $42 billion a year and a half from now.

The lawsuit, filed in Sacramento County Superior Court, asserts that only the Legislature can alter the pay of workers who have labor contracts with the state. It asks the courts to issue a temporary stay to stop Schwarzenegger’s efforts, which could affect 230,000 workers.

Schwarzenegger attempted a few months ago to unilaterally reduce the pay of state employees, but his order never took effect. State Controller John Chiang said the state’s payroll system was incapable of carrying it out. The matter eventually stalled in court.

Schwarzenegger has indicated he is willing to approve the increased gas, income and sales taxes the Democrats have proposed. But he is also demanding changes to California’s environmental and labor rules to give businesses more power over their employees’ hours and to allow private contractors to take a larger role in public construction projects.