Warm Southern Breeze

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Posts Tagged ‘TARP’

The Oracle at Delphi: Mitt Romney’s direct tie to increased unemployment in North Alabama

Posted by Warm Southern Breeze on Saturday, October 20, 2012

The average reader may not be aware that there was once a huge Delphi plant in Limestone county, Alabama, which facility was located directly across from Calhoun Community College.

American Industry... closed. - M1510 h712

Mitt Romney owned a significant interest in a firm that profited by laying off workers, dumping their pensions, moving to China, and then profiting rapaciously from the TARP bailout. That large plant – one among many, with the largest one being in Alabama – was the Delphi Steering Gear facility in Tanner, near Decatur, in Limestone County.

It was one of North Alabama‘s LARGEST employers – with emphasis on “was.”

The men & women who made careers there, whose labors enabled their children to attend college, provided their families’ clothing, groceries, housing & healthcare, and provided for their own retirement, and which was a union shop, was shuttered several years ago.

Most of what news I recall about it centered around how corporate traders, not unions, were wanting even more & more profit when they were already profitable. Time and time again, the workers took cuts in benefits & pay to keep their jobs for as long as they could… all to no avail.

Like a gazelle savaged on the plains of the Kalahari Desert in Africa, that once prosperous plant has been laid to waste, and there are only industrial skeletal remains. Even the human buzzards, scavenging metal for recycling from the industrial carcass, have left. For many years now, the hollow exterior hulk, instead of employees, materials & labor, has been drawing cobwebs, dust & rust. And soon, like all things left unattended, it too will crumble.

There are no taxes paid to Limestone county, or to nearby Decatur, Athens or Huntsville, or to Alabama for roads, schools, police & fire protection. But there is an even greater issue, one which is exceedingly more weighty and sorrowful. As a result of it all, there is no hope, there are no jobs, and there is no future.

Here’s the even more disturbing part: Mitt Romney had his hand in that pie.

And yet the saddest and most perplexing part is, that most Alabamians will vote for the GOP nominee/candidate.

Following the economic investigative report are historical local news reports that show the progression about the issue (which validate the economic investigative report by Greg Palast), from the:
Decatur Daily,
Huntsville Times,
• Associated Press,
• Athens-Limestone News Courier,
• Saginaw News (via MLive.com), and
• Wall Street Journal,
dating 2005, 2007, 2008, 2009 & 2010.

For the benefit of the reader, Greg Palast is an economist and financial investigator turned journalist whose series on vulture funds appeared on BBC Television’s Newsnight. He is the author of The Best Democracy Money Can Buy (Penguin) and, most recently, Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps (Seven Stories). For additional information about him, his website is: http://www.gregpalast.com.

Mitt Romney’s Bailout Bonanza

Greg Palast, October 17, 2012   |    This article appeared in the November 5, 2012 edition of The Nation.

This investigation was supported by the Investigative Fund at the Nation Institute and by the Puffin Foundation. Elements of it appear in Palast’s new book, Billionaires & Ballot Bandits: How to Steal an Election in 9 Easy Steps (Seven Stories). Research assistance by Zach D. Roberts, Ari Paul, Nader Atassi and Eric Wuestewald.

Mitt Romney

2012 GOP Presidential Nominee Mitt Romney (AP Photo/Evan Vucci)

Mitt Romney’s opposition to the auto bailout has haunted him on the campaign trail, especially in Rust Belt states like Ohio. There, in September, the Obama campaign launched television ads blasting Romney’s November 2008 New York Times op-ed, “Let Detroit Go Bankrupt.” But Romney has done a good job of concealing, until now, the fact that he and his wife, Ann, personally gained at least $15.3 million from the bailout—and a few of Romney’s most important Wall Street donors made more than $4 billion. Their gains, and the Romneys’, were astronomical—more than 3,000 percent on their investment.

It all starts with Delphi Automotive, a former General Motors subsidiary whose auto parts remain essential to GM’s production lines. No bailout of GM—or Chrysler, for that matter—could have been successful without saving Delphi. So, in addition to making massive loans to automakers in 2009, the federal government sent, directly or indirectly, more than $12.9 billion to Delphi—and to the hedge funds that had gained control over it.

One of the hedge funds profiting from that bailout—
$1.28 billion so far—is Elliott Management, directed by 
Paul Singer. According to TheWall Street Journal, Singer has given more to support GOP candidates—$2.3 million—than anyone else on Wall Street this election season. His personal giving is matched by that of his colleagues at Elliott; collectively, they have donated $3.4 million to help elect Republicans this season, while giving only $1,650 to Democrats. And Singer is influential with the GOP presidential candidate; he’s not only an informal adviser but, according to theJournal, his support was critical in helping push Representative Paul Ryan onto the ticket.

Singer, whom Fortune magazine calls a “passionate defender of the 1%,” has carved out a specialty investing in distressed firms and distressed nations, which he does by buying up their debt for pennies on the dollar and then demanding payment in full. This so-called “vulture investor” received $58 million on Peruvian debt that he snapped up for $11.4 million, and $90 million on Congolese debt that he bought for a mere $20 million. In the process, he’s built one of the largest private equity firms in the nation, and over decades he’s racked up an unusually high average return on investments of 14 percent.

Other GOP presidential hopefuls chased Singer’s endorsement, but Mitt chased Singer with his own checkbook, investing at least $1 million with Elliott through Ann Romney’s blind trust (it could be far more, but the Romneys have declined to disclose exactly how much). Along the way, Singer gained a reputation, according to Fortune, “for strong-arming his way to profit.” That is certainly what happened at Delphi.

* * *

Delphi, once the Delco unit of General Motors, was spun off into a separate company in 1999. Read the rest of this entry »

Posted in - Business... None of yours, - Lost In Space: TOTALLY Discombobulated, - My Hometown is the sweetest place I know, - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 9 Comments »

Taxpayers’ $182B TARP bailout of AIG Now Fully Recovered

Posted by Warm Southern Breeze on Tuesday, September 11, 2012

As the president and others – nonpartisan and partisan alike – have noted, BIG BUSINESS should NOT need a bailout. They should be operated in such a manner as to allow the Free Market to decide how, to what extent, and if they prosper. As part of that process, ironclad and strong regulation to prevent fraud and abuse should be vigorously enforced. And chief executives Read the rest of this entry »

Posted in - Politics... that "dirty" little "game" that first begins in the home., - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

TARP: They got the Gold Mine, you got the shaft. -OR- Where’s MY f*ckin’ Bailout?

Posted by Warm Southern Breeze on Monday, July 23, 2012

Surely this doesn’t surprise anyone.

Bailout

The expressed sentiment of many American citizens.

There were voices decrying bailing out WALL STREET STOCK BROKERAGE HOUSES, BIG INSURANCE, BIG BUSINESS, “TOO BIG TO FAIL” BANKS, to the disadvantage of the American people.

From one perspective, TARP was a “good deal” because most of the money loaned has been repaid on time.

However, from another perspective (or two), the people (who make the economy run) were NOT “bailed out” and continue to suffer. That is, the objective (economic recovery) did not occur – at least to the extent it was hoped would occur. And their input into the economy continues to be abysmal, which in turn means that our national economy at large remains significantly unrecovered.

There are some who argue that the “bailout money” should have gone directly into the hands & pockets of American citizens & consumers because their spending would have stimulated the economy.

However, as it has been, the “bailout money” has gone to WALL STREET STOCK BROKERAGE HOUSES, BIG INSURANCE, BIG BUSINESS, “TOO BIG TO FAIL” BANKS, and the results have been – to put it politely – less then stellar.

Behind the scenes of the bank bailouts

Tess Vigeland: It’s been almost four years since Lehman Brothers went under and the world’s financial system started to spin out of control. The fall of 2008 was all about Henry Paulson‘s bazooka, the Troubled Asset Relief Program — TARP — a $700 billion bailout for the banks. The bailout legislation created a special inspector general at the Treasury Department to oversee where all that money was going.

Neil Barofsky performed the job until he resigned early in 2011. Now he’s out with a tell-all book of his experiences in Washington, including the time he was pretty sure Treasury Secretary Tim Geithner was about to haul off and punch him. It’s called Read the rest of this entry »

Posted in - Lost In Space: TOTALLY Discombobulated, - Politics... that "dirty" little "game" that first begins in the home., - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , | 2 Comments »

Prediction: Obama will be re-elected

Posted by Warm Southern Breeze on Thursday, March 3, 2011

Does history repeat itself?

If history is any indicator, then President Obama will be re-elected.

The astute political observer will note that political events are playing out much like they did during President Clinton‘s first term. There is an angry Republican party whipped up by a vitriolic Speaker of the House, a government shutdown, allegations of a federal government that is too large, a domestic debt that is unmanageable, foreign turmoil, involvement in international armed conflict in the Middle East, anger by Republicans over health care reform, and a mid-term loss to Republicans… it’s uncanny.

Previously, I had written in an entry entitled “House Republicans move to repeal Obama health insurance reforms” that Read the rest of this entry »

Posted in - Did they REALLY say that?, - Politics... that "dirty" little "game" that first begins in the home. | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

BMW Tapped $3.6 Billion in Federal Reserve Funds During Financial Crisis

Posted by Warm Southern Breeze on Friday, December 3, 2010

BMW Head Quarters in Munich Germany.

BMW Headquarters, Munich, Germany - Image via Wikipedia

Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, secured funds from the U.S. Federal Reserve during the financial crisis to boost liquidity as other sources dried up.

BMW’s largest transaction under the Fed’s Commercial Paper Funding Facility was for $3.62 billion on Jan. 30, 2009, according to data released yesterday. BMW made “intermittent” use of the Fed program for refinancing at a time when other forms of credit were frozen, Mathias Schmidt, a spokesman for the Munich-based automaker, said today.

“We tapped into this program in 2008 and 2009 during the financial crisis …Continue…

Posted in - Read 'em and weep: The Daily News | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

 
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