What is going to happen to America? It seems that the true meaning of capitalism is being destroyed. The problem is capitalism is being destroyed by the very people who say they’re trying to preserve it. How can this be? It’s how I see it. What are your thoughts? here’s mine.

First we started with the financial sector, now it’s the American auto industry. When are the taxpayers going to see the return on their investment in these sectors? At the rate it’s going, I doubt it will ever happen in our life time.

Yes, I know that the government is saying that this will help the economy, but aren’t they the same people who put us in this mess?

In the 1990’s NAFTA was signed and many business’ went over the border to make the products that were being built here in this country. Ford and General Motors have opened factories in Canada and Mexico since NAFTA was past.

When the bill was past in 1996 to help all American buy their own home. I’m sure the politicians were aware of the fact that it would be done with taxpayer’s money through Fannie Mae and Freddie Mac with the help of adjustable mortgage rates. It helped people get into homes that they couldn’t even afford.

Twenty plus years ago we heard that there was going to be more energy efficient cars within ten years. How come my 2005 truck gets the same mileage as the 1985 Grand Am I owned fifteen years ago? What’s with these CAFE laws and all the other regulations that are put on the automakers when the cars haven’t really improved over the decades.

Now after all this crap that has gone on for too long, the companies that are in trouble are going to the people who caused these problems for help. All the while the American people sit in their living rooms watching mindless TV and are none the wiser. Go figure.

I know that this isn’t a political site, but in all actuality this post isn’t about politics. It’s about the way Capitalism is being destroyed by people who have their own agenda. Wall Street and Main Street are one and the same and from where I live, it doesn’t look like capitalism to me.

We need to stop bailing out these companies that don’t handle their business in a proper manner. If you can’t make the business profitable then you shouldn’t be in business.

Again the CEO’s of the big three automakers are back in Washington to see if they can still get an auto bailout from Congress. General Motors, Ford and Chrysler are still looking for money to help keep them afloat.

What amazes me is that the three CEO’s think that if they drive down in hybrid cars (instead of their corporate jets like they did last time), that they are going to have any more of a chance to get the money to fuel their needs.

After going back to the drawing board, the companies came back to show what they’re going to do to improve the condition of the three giants. Of course it’s no longer $25 billion that will be needed to save them, this week it’s at $34 billion. Who knows where it will be when it’s all said and done.

As long as the UAW has a hold on the three companies, they will go out of business. The legacy costs are out of control. There are over 15,000 retirees that get paid $31 per hour from their pension plan for not doing anything for the company. The UAW has caused the costs of cars, truck and SUV’s to get out of control. It’s said that $2000 of of the price of every vehicle is due to legacy costs.
With obligations like that how are these companies ever going to turn a profit? There is no way for any company to be able to stay in business if the payroll cost are going up while the workforce is shrinking. How are they to keep their prices in line with their competition?

If you haven’t noticed, you don’t see any of the foreign automakers that build cars here in this country in Washington looking for a handout. It’s because the UAW has no existence in their factories and before you say that it’s not fair that those workers don’t have the right to have an union. They don’t want it, they make on average $35 per hour to work on an assembly line that the robots do most of the work. Before you say that $28-$42 per hour isn’t much for someone living in New York City, these workers are in Alabama and Tennessee, two of the poorest states in this country.

I have always bought American made cars because I believe in keeping my money in this country. It’s not that I’m against the rest of the world, it’s because I’m an American and proud of it. I will continue to buy American made cars as long as they are still American made cars. I know that no matter what happens to these three companies, there will always be cars made here in this country.
Even if the three of them were to go into bankruptcy and close their doors, someone else will buy their equipment and start to build a new automobile made here in America.

Henry “Hank” Paulson was the CEO of Goldman Sachs for many years. He has too many friends in the financial sector as well as on Wall Street. The man should never have been selected by President G.W. Bush, but he was and at the time everyone thought it was a great idea.
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Why was it a great idea? Because at the time the markets were recovering from the tech bubble collapse in the Stock market. He was also one of the guys who help redesign the hedge funds (another reason we have this financial meltdown) as well as pushing the idea of sub-prime mortgages. The Democrats loved him because he was full-filling the “American Dream”, getting everyone into the house they wanted, no matter what.
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It’s now come to a point that he’s out-lived his usefulness in the Treasury Department. He’s been having press conference after conference in just the last couple of weeks that shows that he doesn’t even know what to do for the economy while still trying to help his cronies within the financial sector.
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I’m counting down the days until Paulson will be out of the position. The job will now fall on Obama’s choice for Secretary of Treasury. Timothy Geithner will fill that position next month. The man has a long history with the economy and the Treasury department as well as being in charge of the New York Federal Reserve. Timothy Geithner has made a name for himself on Wall Street and some of the rallying in the markets last week was most likely due to the decision.
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Unfortunately the rally the only last so long in what is now “officially” a recession. That’s right the news was released Monday. The economic advisors and experts have now made it official. Like anyone with a half a brain couldn’t see that two months ago.
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The markets typically show the signs of a recession before it actually is made official. With that in mind, it’s nice to think that a recession is usually 8-12 months long. Looking back the markets have been showing signs of it for at least four months, which means that we can be half way through this mess already.
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As I’ve been saying for the last to months, build up some capital (40%-60% of your portfolio) and wait for the right time to buy to build a new position in the stock market. That time is just about upon us, so I say when the DOW reaches 7500 points again, start putting your money to work behind all that research that you’ve been doing.