President Barack Obama forces CEO Rick Wagoner to resign for $20,000 000 and promises to guarantee automobile warranties!  This is the first time ever that the U.S. government has fired a CEO of a large corporation.   Wagoner out, bank CEOs Safe!  Huh?!

President has “No Interest or Intentions of Running GM” … Oops, too late!

In a news conference following the resignation of Rick Wagoner, the President said that ”the United States government has no interest or intentions of running GM”, however … that is exactly what he is doing.  It is the job of the Board of Directors to hire and fire the CEO.  Barack Obama, whether he thinks so or not,  just took over the responsibility of the Board of Directors.  There is no decision more important to a corporation.  He claims he has a new “vision” for GM in the future.  What makes his “vision” a valid business plan?

U.S. Goverment to Guarantee Automobile Warranties?

He went on to say that the US Government would guarantee automobile warranties.  Warranties are a business within themselves.  They are sold … not given away.   The price of the protective warranty is built into the price of the vehicle when it is sold.  The money is made up front.  Warranty reserves are set up to pay for the estimated repairs based on failure experience rates or “Service Call Rates”.   This is basic to all products that provide warranties.  There are tons of businesses out there that would be happy to take over the warranties and service of every car sold … as long as they get paid!  Now it seems the President is willing to let the US taxpayer pay for them after GM has already taken the money!  This shows the total lack of understanding of basic business by the White House.   

Which is Worse?

Which is worse,  letting GM and Chrysler be reorganized through bankruptcy courts with a chance of surviving stronger or letting them completely fail by letting the White House take over and call the shots?  What gives the White House the experience or knowledge to run one of the largest companies in the world?  Is it the great success with the takeover of AIG?  Could it be the great success the U.S. Government has shown with Amtrak and the US Postal Department?  So, far as I can recall, no one I know of currently in the White House has ever so much as ran a Dairy Queen.

Please don’t misunderstand what I am saying.  I don’t know whether Rick Wagoner should resign or not.  He probably should! (For twenty million bucks I sure would!)  However, the guy who just asked him to do so has zero business experience and an obvious lack of business knowledge.  The White House definitely has no business making that type of decision for any Corporation.

The White House continuing to believe they know how to run the Auto Industry is ludicrous.  Whether it be arrogance, overconfidence, or just plain lack of experience and knowledge doesn’t matter.  Continuing to burn huge amounts of taxpayer money to avoid restructuring in bankruptcy is not the answer.  Government running large corporations is not the answer.

A Real Boomer’s Answer

Cut off the money!  They should never have got any in the first place.  Let the Corporations figure out their own path to success or failure.  They will figure it out.  They have a much better chance of succeeding without government help!  There are times when doing nothing is the right answer!  Papa B.

Also see:

Auto Bailout or Bust?  Should Boomers Believe It?

How could anyone have said Tim Geithner was the only person to handle our Treasury Department?  What idiot or idiots would select a ’financial wizard’ that can’t even figure his own taxes to be in charge of the Internal Revenue Service?  Who voted to approve him after he was determined to be a tax cheat?  Does this guy inspire confidence in you?  Should the people who put him in his current position get a free pass by simply pointing their finger at him and others?  What about his job performance?  What about their job performance?  What about you and me for voting for them?  Oops, I didn’t vote for them!

Things We Knew Then

Here is what we knew before he was confirmed by the House and Senate to lead our Treasury Department: (click here)

1. He looks like a wimp.  (reminds me of the guy in the Movie “Ghost” that tried to steal the money)
2. He has an Ivy league education with lots of political connections.
3. He was a young “up and comer” in the his field.  Definitely not a Boomer!  I ran into a few of these types myself in industry.  They can influence and impress the crap out of the key executives with Power Point Presentations but can’t figure out how to poor piss out of a boot with the directions written on the heel.  He even looks like one of them I remember we called “Opie”.   His initials were A.S.S.
4. We were told by the Obama Administration that Tim Geithner was the only person capable of leading the Treasury Department through this economic crisis.   (If you can’t Dazzle them with the Data, then Baffle them with Bull shxt)
5. He played a pivotal role in the decision to bail out AIG and also the decision not save Lehman brothers from bankruptcy.
6. Here is a guy who hasn’t held a single job in his career for more than three years!  I call them job jumpers.  They usually end up as consultants because no one will hire them anymore.
7. He cheated on his taxes … at least twice!  (Claims he used Turbo Tax).  I have used Turbo Tax myself for many years.  Some of my returns were very complicated, some were not.  I can tell you this for sure.  Turbo Tax is an excellent, simple to use program.  It is well designed to insure your taxes are correct and all inclusive.  Turbo Tax simply won’t let you make errors unless you know how to cheat on your taxes.   I call it “Tax Returns for Dummies”.  It is unthinkable that this administration put in place a person to lead the US Treasury Department (including the IRS) that can’t figure out how to use Turbo Tax.  Timmy cheated on his taxes! … Intentionally!!

See the following excerpts from Wikipedia:

• At the Senate confirmation hearings, it was revealed that Geithner had not paid $35,000 in self-employment taxes for several years, even though he had acknowledged his obligation to do so, and had filed a request for, and received, a payment for half the taxes owed. The failure to pay self-employment taxes was noted during a 2006 audit by the Internal Revenue Service(IRS), in which Geithner was assessed additional taxes of $14,847 for the 2003 and 2004 tax years. Geithner also failed to pay the self-employment taxes for the 2001 and 2002 tax years until after Obama expressed his intent to nominate Geithner to be Secretary of Treasury. He also deducted the cost of his children’s sleep-away camp as a dependent care expense, when only expenses for day care are eligible for the deduction.  Geithner subsequently paid the IRS the additional taxes owed, and was charged $15,000 interest, but was not fined for late payment. As President of the Federal Reserve Bank of New York, Geithner annually completed an ethics statement noting any taxes due or unpaid, along with any other obligations. Geithner’s completed statement did not surface during confirmation hearings.
• In a statement to the Senate panel considering his nomination, Geithner called the tax issues “careless,” “avoidable” and “unintentional” errors, and he said he wanted to “apologize to the committee for putting you in the position of having to spend so much time on these issues.”  Geithner testified that he used TurboTax to prepare his own return and that the tax errors are his own responsibility.  This statement is in conflict with statements by the Obama campaign that Geithner was advised by his accountant that he did not owe the taxes.   The Washington Post quoted a tax expert who said that Turbo Tax has not been programmed to handle self-employment taxes when the user identifies himself as being employed.  Geithner said at the hearing that he was always under the impression that he was an employee, not a self-employed contractor, while he served as director of the Policy Development and Review Department of the IMF.  Geithner comments are contradicted by the Senate report that showed he was not only informed of his status, but that he actively applied for the allowance.

The “Peter Principle”

Most boomers remember the “Peter Principle”?  If not, it simply states that “in a hierarchically structured administration, people tend to be promoted up to their “level of incompetence”. (click here) Tim Geithner, Barney Frank, Nancy Pelosi, Harry Reid, Chris Dodd, and most all of our other Representatives and Senators are perfect examples of the “Peter Principle”!  All have risen through the hierarchy structure and have already reached their level of incompetence.   

Timmy’s Resume – A Quick Study – Doesn’t Spend Much Time Anywhere!

• After completing his studies, Geithner worked for Kissinger and Associates in Washington, D.C., for three years.
• He then joined the International Affairs division of the U.S. Treasury Department in 1988.
• He went on to serve as an attache’ at the US Embassy in Tokyo.
• He was deputy assistant secretary for international monetary and financial policy (1995–1996).
• He was senior deputy assistant secretary for international affairs (1996-1997).
• He was assistant secretary for international affairs (1997–1998).
• He was Under Secretary of the Treasury for International Affairs (1998–2001) under Treasury Secretaries Robert Rubin and Lawrence Summers. Summers was his mentor, but other sources call him a Rubin protégé.
• In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department.
• He was director of the Policy Development and Review Department (2001-2003) at the International Monetary Fund.
• In October 2003, he was named president of the Federal Reserve Bank of New York. His salary in 2007 was $398,200.
• Once at the New York Fed, he became Vice Chairman of the Federal Open Market Committee component. His somewhat caustic and arbitrary management style was often evidenced during his tenure with the Federal Reserve.
• In 2006, he also became a member of the Washington-based financial advisory body, the Group of Thirty.
• In March 2008, he arranged the rescue and sale of Bear Stearns.
• In the same year, he is believed to have played a pivotal role in both the decision to bail out AIG as well as the government decision not to save Lehman Brothers from bankruptcy.

Things We Know Now!

• Who cares?  Obama said confirm him Anyway! … And they did!
• In spite of the all these things everyone knew, he was confirmed anyway by the Democratic House and Senate without much opposition from Republicans.
• There were no tough questions  like I remember from the same Democratic Representatives and Senators over every single appointment made by the prior administration.  No Contest!  Only answer, “We Won!  You Lost!
• The very people who voted to confirm him claim zero responsibility.
• The very people who voted to confirm him act like they had no idea that this guy might not always act in a credible and ethical fashion.
• The very people who voted to confirm him in are now bailing ship on him and asking for his resignation.
• Even Barney Frank who was a strong supporter claims no personal responsibility for this current financial blunder.
• Barney is now pointing his finger and wanting to tie performance to bonuses at AIG.   Here is a guy that if you tied his job performance to a bonus plan, it should have resulted in a strip search and disinfectant shower before being locked up!
• He still looks like a wimp, but now we know why he was the only choice.  He just doesn’t have the balls to stand up to the administration!  He is a blind follower, not a leader.

Living Up To Low Expectations

What do these people expect?  When is it time to hold those responsible for the ignorant political partisan decisions responsible for their acts of stupidity?  When is it time for our Senators and Representatives to represent us?  When is it time to quit blaming the prior administration for every stupid partisan decision made not only in the past, but also being made in the present and future?

The simple American worker is expected to file an accurate income tax return once a year, regardless of their intelligence, education level, or experience.  Shouldn’t we at least expect the person selected to head up the US Treasury and the IRS  be capable of doing the same?  A doctor, nurse, factory worker, janitor, garbage man, teacher, mechanic, construction worker … etc. are all expected to now how to do this, but the Secretary of the United States Treasury (including the IRS) is not!  When is it time for them to quit assuming we are all idiots?  Who are the real idiots?

So … Who is to blame?

• We (the American public) are … at least partly … for living up to the low expectations of our representatives!  They continue to think we are idiots and we continue to act like it by continueing to vote for them.  We just promoted a pretty good, but inexperienced, junior Senator from the Illinois corruption machine to President of the United States per the “Peter Principle”.  No real accomplishments, no real experience, no real background check, no matter.
• They (the politicians) are … a whole lot … for not putting the American taxpayer ahead of their party and personal gain or ever taking responsibility for their actions.  They don’t even read the bills they vote on.
• Him (Tim Geithner) is … but only … for being stupid and arrogant enough to think he knows the answers.  It really isn’t his fault.  He is simply an living example of the “Peter Principle”!  Would you turn down a job that you weren’t qualified for?  I bet this  job doesn’t last long either.

Advise From P. B.

It is time for someone … anyone … to step up and say they just may have made a mistake!  However, they are all so incompetent and wrapped up in their own personal politics they refuse to admit that possibility.  Unfortunately, if we get rid of all the incompetents in the House and Senate there won’t be anyone left to vote for.  As for our President, he still hasn’t even acknowledged “the serge”  in Iraq  just might have worked!  He isn’t about to admit to his calamity of errors in choosing his own cabinet.  He officially took office in January and is still is blaming the prior administration for bills that haven’t been signed yet in March.

Here’s some advice for ya, Barrack … don’t sign them!  While you are at it, fire Geithner and give Nancy P. a big kiss for all of us.  Preferably not on the  A___! … again!  Papa B.

Other Related Stories:

• Democrats Blame each Other for AIG Bonuses
• Geithners Got To Go

Another Story on Geithner:

The following Article was on Yahoo Finance:

Geithner Caves on AIG Bonuses, Defends Liddy

Posted Mar 18, 2009 10:32am EDT by Henry Blodget in Media, Newsmakers, Recession, Banking

Related: AIG, ^gspc, ^dji

From The Business Insider, March 18, 2009:

Tim Geithner is now completely on the defensive.  In a long letter to Nancy Pelosi, he explained how and why he approved the AIG bonuses (troubling) and described a plan to “recoup” them. The letter will not likely stop the growing chorus of criticism that may well drive Geithner out of office.

Geithner’s new plan will not “recoup” the bonuses at all: It will merely reduce the amount of the next taxpayer handout to AIG from $30 billion to $29.835 billion.  This is not likely to quell the outrage: What most people are angry about is that AIG paid $165 million of taxpayer money in “retention” bonuses to executives who blew up the firm (many of whom aren’t at the company anymore).

The more troubling part of the letter, though, is Tim Geithner’s description of his own approval of the bonuses. He says he registered “strong objections” and then asked for a written legal analysis of why the bonuses had to be paid.  This does not sound like the behavior a man who has the balls necessary to stand up to the many constituencies that want to roll right over him right now (which is the kind of man we need during this crisis).  It sounds like the behavior of a man who is already thinking of how to defend a decision he knows is a bad one.

What Tim Geithner should have said, in our opinion, was “No.”

We’re also not encouraged by Geithner’s defense of AIG CEO Liddy in the penultimate paragraph (people are being unjustifiably mean to him, apparently). Edward Liddy is the CEO of a Fortune 500 company. By now, he should be able to look after himself.

Our concern about Tim Geithner as Treasury Secretary during this crisis is that he’s too close to Wall Street to make the kind of decisions that need to be made right now.  This exchange bears that out.

For more coverage, including Geithner’s AIG letter to Nancy Pelosi, go to The Business Insider. See also:

• Tim Geithner Deathwatch
• Geithner “Out Of The Loop,” Resignation Talk Begins