Posts filed under “Bailout Nation”
Now shipping: Bailout Nation
I got about a dozen emails just like this one below last night from various friends around the country!
Greetings from Amazon.com.
We thought you’d like to know that we shipped your items, and that this completes your order. You can track the status of this order, and all your orders, online by visiting Your Account.
There you can:
* Track your shipment
* View the status of unshipped items
* And do much more
The following items have been shipped to you by Amazon.com:
Qty Item Price Shipped Subtotal
Amazon.com items (Sold by Amazon.com, LLC):
1 Bailout Nation: How Greed … $16.47 1 $16.47
Shipped via UPS
If anyone wants a signed copy, I will ask about inside signature plate to be inserted.
I just got the very first copy of Bailout Nation print copies from Wiley. It looks fucking fantastic. The first printing hit the warehouse today; They go out Monday to Amazon, Barnes & Noble, Borders and bookstores everywhere. I am totally psyched! I have a bunch of promotions I am working with Wiley on —…Read More
The Chrysler bankruptcy is a fascinating development in the great financial crisis of 2008-09. It may be a enormously significant milestone in the evolution of the banking crisis and the response from the Obama administration. Or, it may be that autos and banks are perceived so differently in D.C. that not much can be read…Read More
A friend reminded me about this section of the book. This is an excerpt from early draft of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy. Given the bankruptcy filing today, it is totally suitable. (The final version is thematically similar, but different in actual content).
The current no strings attached bailout demands of the Big 3 stands in stark contrast to the 1980 Chrysler deal. Regardless, the subsequent decades post-bailout reveals the deal wasn’t particularly good for either the industry or the firm’s employees.
In the 1950s, Barron’s described the Detroit automakers as the big two and a half – with Chrysler, the perennial sales laggard, as the half. When the embargo hit, Chrysler suffered the most of the Big Three.
By the mid-seventies, the company was hemorrhaging cash. Chrysler lost $52 million in 1974, and a record $259.5 million in 1975. As smaller, less expensive and more fuel-efficient from Japan and Europe gained increasing market share in 1970s, Chrysler found itself in an ever-deepening hole. It looked like they might have to declare bankruptcy.
As soon as the energy crisis ended, it was back to business as usual. 1976 a hugely profitable year: the company’s net income was $422.6 million. 1977 was profitable, but less so: $163.2 million net income. By late 1978, they were running in the red again, losing $204.6 million. The fall of the Shah of Iran and a new US Oil embargo sent prices higher once again. By 1979, Chrysler was looking at its first billion dollar annual loss.
Management decided to was time to visit their Uncle Sam.
“Ratings agencies just abjectly failed in serving the interests of investors.” -SEC Commissioner Kathleen Casey > Nice takedown on the highly conflicted, over rated ratings agencies in Bloomberg yesterday: “Investors, traders and regulators have been questioning whether credit rating companies serve a good purpose ever since Enron Corp. imploded in 2001. Until four days before…Read More
Of the many issues that arise via the banking bailouts we have seen, perhaps the most pernicious is how corrosive the process becomes. It corrupts even the most well intended parties. The latest example is the stress tests, which run the risk of being window dressing. As noted last week, the Stress Tests themselves weren’t…Read More
> My fishing buddy David Kotok is hosting a conference in Philly this week where I wll be presenting: The Financial System, Banks & Economy: After the Storm…Where Are We Now? The 27th Annual Monetary and Trade Conference: Thursday, April 30, 2009 The Global Interdependence Center and Drexel University’s LeBow College of Business Present: >…Read More
Bill Moyers speaks with economist Simon Johnson and Ferdinand Pecora biographer and legal scholar Michael Perino. Johnson is a former chief economist of the International Monetary Fund (IMF) and a professor at MIT Sloan School of Management, and Perino is a professor of law at St. John’s University and has been an advisor to the Securities and Exchange Commission.
click for video
Yesterday, I had a lunch meeting about Bailout Nation with the folks at Borders HQ in Detroit was quite interesting. I was over-caffeinated, and essentially babbled away for 2 hours. I did manage to remember to ask a few questions, and learned quite a bit. It was an education for me in a real “Art…Read More