Posted on 11/13/2011 9:40:48 PM PST by Bigtigermike
Largely out of the media spotlight, the federal government operates a network of financial subsidy programs that benefit big banks by putting taxpayer money at risk. And President Obama, that self-styled populist scourge of Wall Street, is increasing this racket of private profit and public risk that Sen. Jim DeMint (R-S.C.) aptly dubbed "venture socialism."
In its latest act of venture socialism, the Obama administration has offered a novel taxpayer backstop to General Electric, the multinational industrial conglomerate that is famously close to this administration, and that spends more on federal lobbying than any other company.
[...]
Here's how to understand what's going on: Imagine I'm a shoe exporter. I ship shoes to stores in Europe, and then I wait a few weeks to get paid by the stores. But what if more orders come in, and I need to restock the shoes right away, before I get paid for my last shipment? I could just borrow from a bank. But another option is that I can just sell my invoices, in effect, to the bank. If the shoe stores owe me $1,000, I might sell Citibank, for $950, the right to be paid by those shoe stores. That's called supply-chain finance, and it's a quintessential capitalist arrangement.
But in the midst of this commerce among banks, exporters, and importers, Barack Obama has inserted the unwitting U.S. taxpayer. As part of his Export Initiative aimed at doubling U.S. exports in five years, the Supply-Chain Finance Guarantee Program to guarantees 90 percent of the banks' exposure. In our hypothetical example, if the European shoe stores welched, the U.S. taxpayers would cover 90 percent of Citibank's loss.
(Excerpt) Read more at campaign2012.washingtonexaminer.com ...
Is this what the OWS crowd is fighting for? Suckers!!
the Supply-Chain Finance Guarantee Program
Every day its something else to put US at risk
and Obammy’s friends get richer.
For instance, the Energy Department this fall guaranteed $1.4 billion loan for solar companies NRG Energy and Prologis to install solar panels.
But it wasn't the solar companies applying for the subsidy -- it was Bank of America, through the Financial Institutions Partnership Program created by the stimulus bill, which asked -- and received -- this taxpayer-funded gift from the Obama administration.
Taxpayers will repay B of A if this $1.4 billion solar investment doesn't pan out.
But what are the odds of a stimulus-subsidized solar venture flopping, right?"
What is needed is a stockholders revolt. When the market crashed in 2007/8, GE crashed from $50 per share to $5 a share and then crept up to a range between $15 and $20 to this day. Meanwhile the top 7 officials were being paid from $11 to $22 million for those years and 2009. In 2009 a proposal was offered for a stockholder vote to subject the executives to a Stockholders Advisory on Executive Compensation. Needless to say the Execs urged us to vote against it. Needless to say I voted for it.
In 2007 the top CEO of Goldman Sachs was paid around $34 million. In 2008 the salary was raised to over $70 million. At the 2008 GS stockholders meeting the stockholders outraged that the top three executives all had salaries above $65 million voted 43% for a Stockholders Advisory on Exec. Compensation. While not a win, it was close enough to scare the CEO salary in 2009 to be lowered to around $26 million. IN 2010, I had a very hard time trying to find out what the CEO salary was for that year. Cowards!!! STOCKHOLDERS, REVOLT!! Keep government out of your corporations, do it yourself!!
bkmrk
Just another example of something the US gov’t has no business being involved in. Guarantee this, bail out that, make whole this....Just sickening
CEO’s just trying to keep up with professional athletes and Hollywood stars after all...
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