Trump says banks are laughing at us

What, Trump yet again grandstanding for attention? That's certainly nothing new.
 
Just wait till we wreck his hotel July 4th.....we'll see who get's the last laugh.....
 
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The Trumpster is essentially correct and I agree it is very aggravating.

In the meantime the "Washington whiz kids" are pretty much ready to abandon the US auto industry by forcing GM into chapter 11 even though they have given the banks billions with little or no accountability. Chapter 11 for GM will likely force Ford (who remains solvent at this time) into Chapter 11 too and the economy will tank again no matter how confident the government is they can orchestrate or control things for a "quick" chapter 11. And the Banks will still be solvent and laughing at the government even more than they are now.
 
Yeah, and I've been watching the articles recently on the news about the interest rate increases from the various banks. So, not only are we paying for their recovery from the government bailouts, but we're also paying for it, via higher interest rates on credit cards.

Talk about getting it from both ends.:smt021:smt089:wow::smt009:smt013:smt013:smt013

-VtSeaRay
 
Dave S said:
The Trumpster is essentially correct and I agree it is very aggravating.

In the meantime the "Washington whiz kids" are pretty much ready to abandon the US auto industry by forcing GM into chapter 11 even though they have given the banks billions with little or no accountability. Chapter 11 for GM will likely force Ford (who remains solvent at this time) into Chapter 11 too and the economy will tank again no matter how confident the government is they can orchestrate or control things for a "quick" chapter 11. And the Banks will still be solvent and laughing at the government even more than they are now.
Click to expand...

Dave,
Why would GMs chapter 11 force Ford into chapter 11?
 
chuck1 said:
Dave,
Why would GMs chapter 11 force Ford into chapter 11?
Click to expand...
Probably because they both use many of the same vendors for parts sourcing, if GM goes 11, it will probably shutdown many of those vendors, causing outages for Ford. (my take - might not be what Dave was thinking)
 
VTSeaRay said:
Probably because they both use many of the same vendors for parts sourcing, if GM goes 11, it will probably shutdown many of those vendors, causing outages for Ford. (my take - might not be what Dave was thinking)
Click to expand...

I'm thinking that if GM files ch 11 that kills the current UAW contracts and gives GM a cost advantage over Ford & Mopar. They would have to follow suit to maintain parity. Now...the question becomes does the Fed stick something in the deal that gives the unions more control or is this the end of the UAW as we know it? What happens to the "Legacy Costs"? I think we're going to have to pick up the slack as tax payers again on this deal.

I think we are seeing the beginings of a "paradigm shift" in the transportation industry in our country.

I'm a car guy at heart but I think we need to take a long hard look at the way we move around America. I did not vote for Obama but I am interested in hearing what he has to say about High Speed Rail and other transportation ideas.:huh:

I think it would be foolish to pour any more money into the banking system.....they are all a bunch of hacks and pimps that never built anything or had to work on anything.
 
I can tell you, being in the marine business we have sold more boats this year than last. (That's not saying much.) Total boats sold last year were 15. The boats sold this year were all sold with no bank financing. Thank God for service.
We have people wanting to purchase boats with a credit score between 700 to 800+ and have at least 10% to 20% down. Bank says NO GO they need more cash down.

We have been trying to get a SBA loan for six months. our local bank says no problem we have you covered. They even gave us a 100K to remodel before we started the SBA thing, last minute they say we have to go to another bank because they have 40% bad loans.

At least we are still in business, but don't know how long it will be before we get this fixed. O' well, mabey the bank can own another boat store.
 
I think the banks are laughing at Trump. That guy is so highly leveraged that he probably doesn't have a buck for coffee.

Best regards,
Frank
 
Despite all his irritating grandstanding and bad hair, one of my favorite quotes of his...
"Owe the bank a million, they own you. Owe the bank a billion you own them."

Banks are hoarding cash to protect their balance sheets right now.
 
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There is some real issues out there. I wonder at the whole Mark to Market thing. I wish I understood this. Here is my understanding;

Say you have a "bad asset" you bought for $1.00

The last time anyone sold this type of asset, they got $0.10 - - > Mark to Market rules imply that your bad asset gets put down at $0.10 on your books. Holy crap! That's a 90% loss!

But you don't want to sell it now. . .because you think in six monthes it will be worth $0.80. If you *really* believed that. . then you would be a fool to sell it now. In fact, you would look for people selling these things for $0.70 or less.

But you are dying (financially) because it is carried on your books at $0.10 Everyone thinks you're bankrupt.

So "they" just punted this rule. Banks can now declare the asset at the appropriate value: $0.80. Or is that $3.40? $3.40 looks much better than $0.80. But what is it really worth? $0.10? zero?

It's a game.

If I was a banker. . .heck, I would make sure I write myself a contract that guarantees that all my grandkids can drive Porches at Harvard, and play the game for as long as I could. Maybe this week I will value my "bad assets" at $0.10 and get the government to pay me for my loss. Next week, I will declare the assets to be worth $2.00, declare a huge profit, pay the government back for the loan. . .and collect a bonus on my bonus for my fantastic results.

Maybe it is time to buy Citibank stock (It's around $4.00 now. . ) Oh wait. .. stock manipulation is very much part of this game.

Aww. . heck. . .maybe hiring 20 guys to kidnap a few bankers on their yachts is the way to go. . .I bet they have insurance that will pay up right quick.
 
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It's confusing to me that the government is wanting the banks to lend but then the regulators are not easing off during examinations. and doing these 'stress tests' have me fearful of causing runs on some of these banks. Stupid to me to let it be made public. (unless they all pass with flying colors of course)
 
The stress tests are a sham. They are only there to try and make the consumer feel more confident. I believe all of the banks passed, so that tells you a little bit right there.
 
Absolutely!

Remember. . .the economy is fundamentally a confidence game.

I "wire" you $100,000 and you "give" me a 280DA. Hmm. What exactly is $100,000 in a bank account? You can't eat it. You can't even touch it. Alot of places are reluctant to even bother to send you a paper statement declaring you have this "$100,000".

But you can turn around and "wire" that $100,000 to another guy and he would give you the keys to not one but TWO mercedes.

This whole thing only works because of the whole "confidence" aspect of the "game".
 
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