Dow Falls 777 Points Biggest 1 Day Lose Ever

  • September 29, 2008
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CashSherpa.com, my blog, is all about saving money. With the DOW falling like a stone today and possibly in the near future until the 700 billion dollar bailout package goes through. Saving money makes more sense than ever until things settle down. The Jewish holiday of Rosh Hashana is Tuesday so may be we will get another vote on the bailout package Wednesday, but no one knows for sure. Republicans blame Pelosi for making a speech that was viewed as too partisan prior to the vote. In a time like this partisanship doesn’t make sense, we need leadership not politics.

Dodd Pushes For CEO Pay Limits – Duh?

  • September 23, 2008
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Senate Banking Committee Chairman Christopher Dodd said he would like to see executive pay limits in the $700 billion taxpayer bailout. I wrote about this issue on September 21st where the 3 CEOs that recklessly mismanages their companies yet somehow ended up walking away with millions of dollars. The CEO’s of the failed Fannie Mae and Freddie Mac will be leaving with a $24 million severance package paid with our tax dollars. “$14.9 million for the former CEO of Freddie Mac and as much as $9.8 million for the former CEO of Fannie Mae. Robert Willumstad of AIG is leaving with a $7 million exit package. This is on top of the millions of dollars Mr. Mudd and Mr. Syron earned in 2007. “Daniel Mudd, the CEO of Fannie Mae, received $11.6 million in salary, stock and other compensation for 2007. Richard Syron, CEO of Freddie Mac, took home about $18.3 million last year.In addition to Syron’s salary, stock options and a $3.45 million bonus, Freddie Mac paid for a number of other perks for Syron, such as a car and driver, a home security system, travel costs for his wife, even $100,000 to pay his lawyer to negotiate his employment contract with the bank (http://abcnews.go.com/Blotter/Story?id=5413172&page=1).” The fact that Dodd has to “push” for CEO limits on a compensation packages made soley of taxpayer money boggles my mind. They are either so out of touch with reality or so greedy that this would make any sense whatsoever. Dodd told CNN, “”I’m prepared to act quickly, but I am not going to act irresponsibly in this,” he said. “It needs to be done correctly. If it takes a little longer, so be it.” “In 2007, the average CEO’s pay of $10.5 million was 344 times higher on average than the average worker’s wage, according to Executive Excess 2008 (http://www.huffingtonpost.com/robert-weissman/executive-pay-and-the-mar_b_125746.html).” Why should tax payers now in debt $700 billion give ANY money to the executives of these failed financial companies?

What Does a 1 Trillion Dollar Bailout Look – Where is the Outrage?

  • September 21, 2008
  • Make Money Online, News
  • Comments Off on What Does a 1 Trillion Dollar Bailout Look – Where is the Outrage?

Does the current economic situation make you upset just a little bit? It boggles my mind that on the eve of a one trillion dollar bailout, that’s 1,000,000,000,000, there’s still wall to wall presidential election coverage on the 24 hour cable networks. This is the biggest rescue of the financial system since the Great Depression according to Barclays Capital Inc.’s Michael Pond and we’re still talking about lipstick on pigs? To give you an idea of what 1 trillion dollars looks like imagine if you laid one dollar bills end to end, you could make a chain that stretches from earth to the moon and back again 200 times before you ran out of dollar bills! One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills (100777.com). “The treasury on September 7th took over the mortgage-finance companies Fannie Mae and Freddie Mac, and said it would buy mortgage-backed debt in the open market. The Fed this week boosted its Treasury auctions to bond dealers by $25 billion, loaned $85 billion to the insurer AIG, and quadrupled the amount of dollars foreign central banks can auction to $247 billion. The deficit will soar to enormous proportions, said Lou Crandall, the chief economist at Wrightson ICAP LLC in Jersey City, New Jersey (http://www.bloomberg.com/apps/news?pid=20601087&sid=a.kAXACVdHTI&refer=home).” If this wasn’t horrible enough the CEO’s of the failed Fannie Mae and Freddie Mac will be leaving with a $24 million severance package, also paid for with our tax dollars. “$14.9 million for the former CEO of Freddie Mac and as much as $9.8 million for the former CEO of Fannie Mae (http://www.littlechicagoreview.com/pages/full_story?page_label=home&widget=full_story&content_instance_id=229377&open=& ).” Robert Willumstad of AIG is leaving with a cool $7 million exit package. Does this make any sense? Is this fair? People are losing there homes and life savings as I type and the CEOs of these companies are leaving with millions of dollars they don’t need. Why aren’t we more outraged over this?

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