Economic questions wrapped in a WTF

Soapbox warning.

I have a few quesions about the state of the economy…

By day, I am an accountant. So typically I can understand things like: banking, the economy, etc. But lately they* have been saying things I just can’t seem to wrap my head around. So I am going to make a little list here and if you, oh wise readers, can enlighten me, that would be grand!

They* keep saying they** are using “American Taxpayers money”… I’m an “American Taxpayer” and I don’t recall giving anyone any money. (ok this was more of a statement then a question)

Our government officials keep talking about how the AIG bonuses are not right and that money should go back to the “American Taxpayers” (ATP). Does this mean I will be getting some money soon?

Our government officials** also keep saying they** want to know WHEN we (ATP) will be paid back the money they** gave to them***. Now, I do not recall, ever in my life… all 45 years of it, getting a loan from someone where it was not spelled out, very specifically, with charts, graphs, arrows and signatures, when I was going to pay that money back. Not to mention the hell to pay, if I didn’t. (crap, this wasn’t a question either)

So perhaps my questions / statements can be summarized as follows:
How could they** give away my money, without my permission and without finding out when I was going to get it back?

WTF? <- this IS a question.

Am I the only one lost here?

Oh… I do have one more question:
I have a Bachelor’s in Accounting, a Master’s in Management (which I got with a 3.9GPA while working full time) and just a shit-load of experience. I’m a very dedicated, hard-working individual that takes my career very seriously. Where in the world can I apply for a job that pays bonus of over a million dollars (it doesn't even have to be $6.6 million)?

I don’t think they post those on Monster. (I know, not a question)

* - CNN and other news outlets (yea, I know, I shouldn’t be watching this crap.)

** - Government officials (Senators, Congressmen & Congresswomen, etc)

*** - TARP fund recipients. The list is HERE WARNING: don’t click if you get sick easily or if you have arthritis in your index finger – seriously, scrolling down the page will make your finger cramp.

I guess this can be filed under WTF Wednesday (shout out to my bud Rhonda – you know I love you, right?)

~S

It’s the last day of January already??

Holy crap!

 

I know it’s been a while… sorry.  Work has been crazy busy.  It’s been 2 months since I was given an additional job to do, on the premise it would only be temporary.  Still, no decision has been made.  I guess I shouldn’t complain, lots of people don’t have jobs.

 

 

…like Kevin.

 

 

He got laid off indefinitely today.

 

 

Stupid crappy economy.

 

 

I’ll be back when I have better news…

 

 

… or pictures…

 

~S

Six degrees of an American Autoworker

I bet I can put anyone within six degrees of an America Autoworker.

My husband comes from a long line of GM employees: his Grandfather, his Father, his uncle, his brother and his cousin all work or worked for General Motors, and so does my husband.

My Grandfather came to Canada from England and worked for Ford Motor Company.

My brother works at Chrysler.

I have some pretty strong feelings about what’s going on right now with the economy and the automotive industry.

** rant warning**

I’m confused why there was hardly any resistance to the banking industry bailout <- not a loan. But when one of our largest manufacturing institutions needs a LOAN, everyone's panties are in a wad.

The banking debacle has a major role in the auto industries' problems. Are they the sole reason? No, I didn't say that. But let's face it; this Wall Street crap has scared the shit out of everyone. I think even if they could, people are afraid to go any deeper into debt. Not that the banking industry (that was bailed out) is lending out any money anyway.

I know the auto industry is making changes. Kev, as a new hire is making one half what veteran employees are making. He isn't eligible for health care benefits for seven months, no dental for five years and there is no longer a defined benefit retirement package. If he wants a retirement program, he has to contribute to a 401… and all of us who have those know how well THAT'S working out.

If the auto industry goes down not only does my husband, my brother and my brother-in-law lose their jobs, but hundreds of thousands of others will be out of work too.

Let me explain… if Kev loses his job, Hunter will no longer go to Daycare. If enough people stop going to daycare… daycare workers lose their jobs.

Automakers put the autos together and suppliers make the pieces. No automakers means no suppliers. Don't kid yourself… there are suppliers everywhere.

Trucking companies take the parts from the suppliers and bring them to the automakers. No automakers, no suppliers… no suppliers mean no trucking companies are needed. No trucking companies mean no truckers.

Dealerships sell autos. No autos to sell, no dealerships. No dealerships mean no sales staff, no service staff and no office help; all now in the unemployment line.

All of these people out of work won't be paying taxes. That would be Federal, State or local government taxes. Lower tax collections mean lower funds to run the governments.

In Michigan cities like Detroit, Pontiac and Southfield where the community has a city tax and counts on that city tax to run, less services will be provided.

Communities where these automakers, suppliers and dealerships are located count on property tax from these businesses. The decreases in tax revenue will cause cuts in services these governmental units provide.

States would have to cut school funding; cities could make cuts in parks and recreation, in the public services like police and fire or anywhere in between. These cuts would create less funding for teachers, school supplies, after school programs, police and fire services. All of which could potentially create more job losses in those industries. More people in the unemployment line.

In 2007, General Motors alone paid over 10 million dollars in taxes just to the local school district, state education, county education and community college. And that's just in the form of property tax from one community. In 2006, General Motors paid over 20 million dollars in property tax to state and local governments just on property located in one municipality. Do you still think losing the America auto industry won't have an impact?

If our government allows the auto industry to fail, they have done a grave disservice to us all.

Epic. Fail.

I believe that with all my heart.

If you can follow my logic and you think our government should be helping the auto industry, I am asking you to go to this site and send a letter to your public officials. All you have to do is enter your name and address and the site will automatically generate emails to your U.S. Senators and Representatives. Literally it takes less than two minutes.

If you don't agree, that's cool too. Thanks for taking the time to read my rant all the way to the end.

Here's that link, thanks for listening.

http://gmfactsandfiction.com/

Peace,
~Sheryl

NaBloPoMo – day 18

I’m part of the problem

Right now, I’m part of the problem.

 

I’m not spending ANY money.  Our whole family packs a lunch everyday.  We eat meals at home, not in restaurants.

 

I have purchased clothes for Hunter but only because I had to.  The seasons changed and he needed warm clothes.  But I only bought him jeans and a couple of hoodies.  With the hoodies he can still wear his short sleeved shirts.  Thank goodness his winter coat from last year still fits.

 

No new clothes for Mom and Dad; no new shoes… nothing.

 

No new camera accessories for Mom… L

No new tools or video games for Dad… L

 

I received book store gift cards for my birthday, so that is how I am getting my camera magazine / book fix.

 

Kev bought some hunting supplies with gift cards he received for his birthday.

 

We pay our house payments, utilities and grocery bills.  That’s it.

 

I’m sure this is true for lots of people.

 

Except we could probably afford to have dinner out a night or two a week or get a new pair of shoes.  But I’m hording money.  I’m afraid to spend it.  There is that small, but nonetheless real fear that one of our incomes could cease.

 

With Kev working at a GM truck plant and me at a cash-strapped municipality, I can’t afford not to have that little “what if?” scenario in my brain.

 

We have credit cards… but we don’t use them.  I know… it’s un-American.

 

I really thought that as I was struggling to get my Masters Degree, I wouldn’t be here again in my lifetime.  Naïve? Perhaps, but I like to think it was optimistic.  I guess I always assumed these kind of things would be within my control.

 

Holy shit was I wrong.

 

So now I do what I can control.  I don’t spend on anything I don’t have to and that makes me part of the problem, part of the economic problem.

 

Do I think it’s my fault? No.  But until the economic picture looks a little better and until I hear what I think is a solid plan from our leaders to turn the economy back around… I believe I will continue to hord money.

 

Am I crazy?

 

 

NaBloPoMo - day 7

Sheryl’s Bailout Plan

This whole financial debacle has been weighing heavy on my mind lately. I have been listening to the news channels at lunch and on my way home from work (gotta love Sirius). Yesterday, I finally did it… I checked the value on my retirement funds. WTF. I’ve lost $14,000 since January. I’m not freaked out. But I’m also not planning on retiring anytime in the near future. I understand that I have time for my funds to build back up… but still… what. the. fuck.

Just for the record, I’m not on board with this bailout plan. Now I have to admit, I don’t know the specifics. However, when you talk about ‘creating’ money and increasing the national debt to bail out corporations with no benefit to John Q. Public, I have issues.

I heard an idea on the news and it started me thinking… The U.S. population is currently around 305 million. If you were to split up that $700 billion they are planning on using for the bailout, which would only equate to $2,300 per person. That’s enough to severely bankrupt the average family if they had to pay it out. But not enough to do any real good if it was given to them.

According to this article, investment bankers have been selling mortgages for “pennies on the dollar.”

Hey, I know, why don’t you sell ME my debt for pennies on the dollar? If you lower my mortgage payments to ¼* of what they are I could use my left over money to help stimulate the economy. I’m guessing many people would buy vehicles… that would help the auto industry. Many more people would then be capable of affording to pay their mortgage payments and theoretically they would actually make them. Those of us who can (barely) afford our mortgages, could now use the extra money to go out and buy things… thus stimulating the economy.

This just seems so clear to me.

…and I didn’t even have to miss work today to come up with this plan.

* I didn’t just pluck this number out of the sky… according to this article I linked to above: “In July, Merrill Lynch, struggling to bolster its finances, sold $31 billion of tricky mortgage-linked investments for 22 cents on the dollar.”