On GPS this week, two important, exclusive interviews as the clock ticks ever closer to a debt debacle for the U.S.
Deal or no deal, Fareed thinks the damage has been done. He puts that to two people with extensive experience and power in the worlds of finance. First, Dan Akerson, the CEO and Chairman of General Motors. He’s managed a turnaround for America’s biggest automaker. What does he think America needs to do? And then, Christine Lagarde, the new chief of the International Monetary Fund – we get her thoughts on the U.S., the Eurozone, and China.
Also on the show, a look at who the Knights Templar really are, in light of the Norway killings. And the truth behind a mysterious green blob attacking China.
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If we pay the troops, the debt, the elderly, there is nothing left. Who are the people to whom we have obligations who will go unpaid? No one talks about them. Are they are own states? What suffering will result if there is no revenue to share? Might this be the most irresponsible aspect of this whole fiasco?
What's irresponsible here is the excessive and unnecessary military spending on all the useless and unnecessary wars that the idiots in Congress won't get us out of!! Although we're currently spending some $783B on the military, those right-wing idiots want to increase it even further along with foreign aid. This the right-wing news media never talks about!!!
Re: How to motor on....... with other people's money!!!
CEO's Dan Ackerson defense of the US government led bailout, comes as no surprise. What is perhaps sanctimonious in his comments, is that GM's continued existence is somehow beneficial to the USA and the world. Prior to its collapse, GM was engaged in investments outside of its core competencies which severely undermined its main business model. It should have failed, because there is still NOT a paradigm shift in its corporate logic.
So, lets sum up:
1) GM reduces all common stock to a value of $0.01per $1.00 purchased, so that the little 'man' pays for GM's malfeasance.
2) Receives USA / Canadian bailout of $50 billion on a company worth some 25 % less.
3) Now has its Labour Unions as stock holders, ( lets see, Return-On-Investment or worker's demands?)
4) Seeks a new fiscal incentive in the form of a gas tax, to drive its inefficient model. Unable to "market", the 'car' of the future, without a bureaucratic cattle chute to herd customers.
5) With labour cost now 10% instead of 25% of cost of manufacture as previously, due to automation and technological advancements; Ackerson is disingenuous in stating that GM can impact national job numbers.
GM should have gone the way of Lehman (of 168 years fame) as have countless auto manufacturers since the Industrial revolution.
Dan needs to seek the counsel of Ford, whose corporate governance structure was alert enough to adjust for changing conditions. Why would anyone consider buying from GM? Do you know, when Chevrolet or Cadillac might go the way of Saturn or Hummer?
My recommendation: Buy 'Ford' – 'Focus' ed on the consumer market........
I agree with you. GM CEO comment are misleading. Current Administration need to support real job creation which GM is not doing. Every job GM creates is support by US tax payers, same as Fed's hiring people. People need to pay their bills this includes GM. Rather than paying their tax payer bailout they deposit their "cash reserve" and draw interest, while the US Givernment goes off and borrows cah to pay's bills.... go figure.
America should have required all heavy vehicles such as trucks and buses to use liquid petroleum over 30 years ago. Also GM has had the technology to product electric cars for over 15 years yet they still do not have one on the market that I can buy.
How many chickens are there in the world..since.I just cooked 3 packages, there are at least 3 less...
Why don't you ask the GM CEO how Fortd was able to continue operation without government assistance and GM was not. If GM is so profitable why don't they repay their total loan bailout as opposed to reduce portions. Ask the tuff questions if ypou are going to interview people.
It is my understanding that Toyota is still the world's largest car manufacturer not GM, which is second. And the issue of Ford was also clearly on my mind. I would have liked to know what the head of GM though of Ford's strategy.
Why is balanced budget such a radical idea? Lol. Only in Washington this could be classified as radical idea.
Two very good qiestions? Why did Ford not need a bailout? With all the profits by GM,why wasn't the total bill repaid?
I read recently where IMF may be asking for triple the contributions from each supporting country. The US is already the leading contributor. I realize this isn't about the above problem but i feel it is important to ask where these funds are going to come from in the US?
I believe all Obama is after is a temporary soultion to the problem until election time. Our founders warned us over and over about too large a government, too much debt and too large a military. Even Esienhower warned about our industrial military complex becoming to large. Congress in their infinite wisdom now has spending for defense to be 53% of our budget while the US has the poorest educational system in the free world and so a small amount goes for that purpose. Is it any wonder Bush's No Child Left Behind was such a failure. Teacher forced to pass children wheather they deserved it or not. Passing grades became more important than a quality education.
The problem is that too many Americans are too stupid to know that US military spending is over 50% of what the US spends.
Enough said.
The CEO of GM's comment that the US Gov owns 30% of GM and that they are not in the boardroom is revealing. This is probably the type of onwership partern the US needs to keep the Chinese onslaught at bay. The Chinese are very focused in their approach all over world.
Christine Lagarde was smart, eloquent, knowledgeable, poised, and elegant. She even outsmarted Fareed at the end when he asked her about her coat of multi colors.
I cannot believe I said that about a French, but this is true. Hopefully she will be the President of France sometime soon.
Why can't you believe you rightfully said these words about a French woman? I know the US is unfortunately living through a dumb-down of epic proportions, but kindly trust me: there are a lot of intelligent people out there, especially in France, the UK and Germany. All three of those nations have lived through sharp decline, chaos, defeats and rebirths. Of all things they may inspire America...
Does anyone know the name of the economics book Fareed recommended after he interviewed the head of the Imf?
The only reason that the Republicans held up the vote on the debt limit was in order to get Obama and the Dems to start cutting the money spent by the US Government. Fareed completely missed the point, there was never any intention not to pay. So, how can you miss that point by so much? Only if you do it willfully to make your real point: that the Rep are unreasonable, which I reject. Obama's last budget submitted contained increased spending, as if we were flush in cash with no acknowledgement of our crushing debt. Fareed, you are a smart guy, why do this?
I have some questions.
The US government owns one-third of the GM stock. What is the largest share of GM stock that the US government has owned?
Suppose that the government wishes to sell some of its shares. Does the US have a seat on the New York Stock Exchange?
If not, which one on Paulson's or Geitner's, or Summers' or Bernanke's or Rubin's cronies earns a brokerage commission for selling the shares?
Was the company that that crony manages a beneficiary of TARP funds?
Who is John Galt?
Another inflated buffoon who wants to criticize, but who doesn't have a clue about solving that that he feels superior to. Without the government bailout, Ackerson would be basically unemployed and forgotten. How could he not succeed with such governmental help. Generally, just another t*rd in the punch bowl with an opinion, who thinks he is the most important ingredient in the bowl.