Foreclosure!

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What a difference a calling out on the rug does...

As the heads of the Big3 head back to Washington this week...

The head of Ford is driving... a Ford Hybrid....

The other two are flying commercial...wonder if they'll fly coach:rofl:

I'm absolutely sick of their stupidity, and the stupidity of those around them.....how many brains does it take to run a car company in North America.....not much apparently.
 
How the bailout works - a laymans's guide to understanding:
----------------------------------------------------------

Once upon a time a man appeared in a village and announced to the
villagers that he would buy monkeys for $10 each.

The villagers, seeing that there were many monkeys around, went out to
the forest and started catching them.

The man bought thousands at $10 and, as supply started to diminish,
the villagers stopped their effort.

He next announced that he would now buy monkeys at $20 each. This
renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back
to their farms. The offer increased to $25 each and the supply of
monkeys became so scarce it was an effort to even find a monkey, let
alone catch it!

The man now announced that he would buy monkeys at $50 each! However,
since he had to go to the city on some business, his assistant would
buy on his behalf.

In the absence of the man, the assistant told the villagers: "Look at
all these monkeys in the big cage that the man has already collected.
I will sell them to you at $35 and when the man returns from the city,
you can sell them to him for $50 each."

The villagers rounded up all their savings and bought all the monkeys
for 700 billion dollars.

They never saw the man or his assistant again, only lots and lots of
monkeys!

Now you have a better understanding of the economic basis of the
bailout plan.
 
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This just available, courtsey of the Wall Stree Journal:

The Big 3 and the UAW are "near agreement" on contract resructurings. these would include: Significant scaling back of the auto "jobs bank" program (which paid workers nearly full pay & all benefits if a plant was idled. & pushing back the date for the automakers to fund the VEBA (the union health care fund, that is scheduled to be funded on 1/1/2010.

The UAW expects that the Federal government will play a significant role in restructuring GM's debt.

Several folks have stated that the best hope for relief short term is an early release of the $25 billion dollars that has already been approved for fuel efficiency, retooling, etc. Bush is behind it. However, Nancy Pelosi is saying NO!! (Dammit NO!). She wants the money spent on what it was originally intended for -- not emergency divergent activities.

GM & Chyrsler Execs have agreed to take a $1.00 per year salary if they get the bail-out loan.

In Nov, sales at Ford are down 30%; GM & Chrysler are down 40%+.

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The actual plans, as presented to Pelosi, et all yesterday, are supposed to be posted on-line sometime later today. I'm doing some heavy reading, but so far, I'm not seeing any real give backs.
Lots of smoke and mirrors though.

Cheryl
 
A new idea

This string started about foreclosures. I read a new idea about how to help homeowners.

It doesn't reward the banks or companies that made bad loans.

It does help the people you took mortgages now pay for those loans without altering the amounts.

It also helps the people who didn't get into trouble by borrowing more than they could afford.

The answer............Do away with property taxes.

Depeding on where you live, you get an immediate relief of maybe between $300.00 and $800.00 a month off your payments. Thereby allowing people to more easily afford their house payments.

What are everyone's thoughts?
 
Do away with property taxes? I'm all for it. Unfortunately, the local govts. that collect them would just replace the shortfall with some other kind of tax.
Actually, think about it. Instead of the Federal government giving handouts to banks, etc, they give the money to the local governments to make up for the lost property taxes.

This lets the average person pay their bills, allows the local governments to operate and gets the Federal government away from running banks and other companies.
 
The Crash Course?

How the bailout works - a laymans's guide to understanding

Only on Chapter 9 but this Monkey story came to mind....hmmmm...

http://www.chrismartenson.com/crashcourse

Just a late night video on another Saturday night. My life is sooooo boring....

Note: this should probably be moved to its own thread, but I don't know how to do that!
 
A PARABLE
A Japanese company ( Toyota ) and an American company (Ford) decided to have a canoe race on the Missouri River . Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India .

The End.

Here's something else to think about:

Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.


Ford folks are still scratching their heads.
 
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Good stuff Jon, especially true about the plants in the US... sad tho
 
And the hit's just keep coming...

Circut City announced this morning they are laying off ALL of their 34,000 employees, closing all 567 US stores and selling off all merchandise....

Should all happen Monday...they failed to reach a deal with creditors.

Also of note today, Hertz laid off 4000...

Have a nice day...we now return you to your normally scheduled controversy.
 
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I am going to be an optimist today!!!! This was my favorite part of the article!

Outlook: A recovery in sight?
Brusca said he agreed with many economists' predictions that the recession will end after the second quarter of 2009. Americans might feel the job market start to bounce back a bit sooner than expected, he said.
"These recessions are like geometry," Brusca said. "It looks like we'll have a V-shaped cycle, in that we're going into this with very sharp losses. This intense-phase recession will probably recover fairly quickly, with the job market coming out it at the same angle it came in."
 
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Brusca said he agreed with many economists' predictions that the recession will end after the second quarter of 2009. Americans might feel the job market start to bounce back a bit sooner than expected, he said.
"These recessions are like geometry," Brusca said. "It looks like we'll have a V-shaped cycle, in that we're going into this with very sharp losses. This intense-phase recession will probably recover fairly quickly, with the job market coming out it at the same angle it came in."

Let us hope that he is correct.
 
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How about this closing line?

"The good news is it's so bad right now that we will have a definite, noticeable recovery when it comes," Brusca said. "We're getting a lot of adjustment out of the way early."

That reminds me of beating your head on the concrete so long it feels good when you stop.

George really outdid himself...worst job loss since 1945
 
I know i'm not following the discussion but I'm a little pissed about this whole foreclosure mess. Here is my story;

The house that is next door to me is on its second foreclosure. The first couple that lived there was in their 60's and had a variable rate mortgage. They were retired and when the payment went up they just couldn't do it. They lost the house and it was for sale for about 6 months. Finally someone bought it and moved in. I think they purchased it for $110,000 which is about $30,000 below what houses were going for about a year before. This new couple only lived in the house for about 10 months and they lost the house. Now the house has been foreclosed on twice in about a year and a half! Some friends of mine that live in the neighborhood are trying to sell their house because they can't afford it anymore and are asking $110,000 for it. Their realitor told them that there is no way they are going to get that much for it because the house next to me is now selling for $55,000. It just makes my stomach sick to think that the house next to me is selling for that low of a price. Now I know not all houses are the same and this house might have not been kept up through all of the foreclosures but it drives down the value of my house drastically! Not only did the banks let people buy more then they could afford but they are selling houses for way less then they are actually worth. This screws the people like myself that bought a house way within their means and don't go out and waste money irresponsibly. I can only imagine how much my house would sell for now and how upside down I am. Well hopefully in the next six years when I decide to build the house of my dreams for my family I can actually break even.
 
Klan, I feel for you. We are in the same exact situation-foreclosed houses around us and lowering the worth on our house. We couldn't sell it when we needed to.

We're still trying to dig ourselves out of the mess that the renters put us in. I am happy to report though that things are sloooooowly turning around. We should be caught up by Mid-mar. Can't wait to get the taxes done and get that REFUND!!
 
Klan, I feel for you. We are in the same exact situation-foreclosed houses around us and lowering the worth on our house. We couldn't sell it when we needed to.

We're still trying to dig ourselves out of the mess that the renters put us in. I am happy to report though that things are sloooooowly turning around. We should be caught up by Mid-mar. Can't wait to get the taxes done and get that REFUND!!

Aileen, thank god you're not still in California. Our tax returns are projected to be in the form of IOU's from the State.
 
Well actually Ted, we will get an IOU from CA as we have to file CA state taxes since that is my hubby's home of record and we were stationed there. So they did take state taxes and will continue to take them out until he transfers out of CA. I can't wait until we get that federal refund!!
 
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