BofA, the Right and Economics

[CrusaderFrank]

BofA got $5B increase on their Tier 1 capital, that, along with shedding 30K employees will help them weather the coming storm. I think Greece and Italy will pull the EU down with them later this year or early next and it won't be pleasant in Europe or the USA.

In case you didn't notice, some banks did well under TARP, others went bust. Bear, Lehman and Merrill no longer exist, but Goldman, Chase and BofA continue.

And how exactly does that work in their interest to eliminate 30,000 consumers?

This kind of proves that companies are only in it for themselves. They have no interest in job creation, only shoring up their money reserves.

It started early in the Bush administration, when companies like Hewlett Packard, under Carly Fiorina, began to almost capriciously lay people off. They did this while they were profitable, and solely as a proof of concept. This began a cyclical collapse of employment in this country.

Right, layoffs started after Bush stole the Florida chads

 

[Ravi]

This is more fall out from the toxic mortgage default swaps than anything else.

 

[Ravi]

"How is an Investment in preferred stock like a Tax cut, Robin?"

Uhm, no one is saying it is.

Did you read the original post?

There was no tax cut. On orders from Obama, Buffett shored up BofA like he shored up GoldmanSachs

Do you live in a lunatic asylum?

 

[Remodeling Maidiac]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.

Companies will invest in expansion if and when the market is there for them to profit from it. Until Obamas policies and regulations are rolled back it isnt gonna happen. This is America, companies are not in business for charitable reasons.

Of course you already knew this and will deny it so like Frank said...... its a pointless discussion.

 

[8537]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.
.

Are you saying that Warren Buffet did not perform due diligence before dropping 5B into BoA?

 

[Sallow]

And how exactly does that work in their interest to eliminate 30,000 consumers?

This kind of proves that companies are only in it for themselves. They have no interest in job creation, only shoring up their money reserves.

It started early in the Bush administration, when companies like Hewlett Packard, under Carly Fiorina, began to almost capriciously lay people off. They did this while they were profitable, and solely as a proof of concept. This began a cyclical collapse of employment in this country.

Right, layoffs started after Bush stole the Florida chads

Almost..

Fiorina presented herself as a realist regarding the effects of globalization. She has been a strong proponent, along with other technology executives, of the expansion of the H-1B visa program.[36] In January 2004, at a meeting to "head off rising protectionist sentiment in Congress," Fiorina said: "There is no job that is America's God-given right anymore. We have to compete for jobs as a nation."[37][38][39] While Fiorina argued that the only way to "protect U.S. high-tech jobs over the long haul was to become more competitive [in the United States]," her comments prompted "strong reactions" from some technology workers who argued that lower wages outside the United States encouraged the offshoring of American jobs.[40] Fiorina responded against protectionism in an editorial in the Wall Street Journal, writing that while "America is the most innovative country," it would not remain so if the country were to "run away from the reality of the global economy."[41]

Carly Fiorina - Wikipedia, the free encyclopedia

Enron scandal - Wikipedia, the free encyclopedia
MCI Communications - Wikipedia, the free encyclopedia.
Arthur Andersen - Wikipedia, the free encyclopedia
Merrill Lynch Scandal
Bear Stearns - Wikipedia, the free encyclopedia
Lehman Brothers - Wikipedia, the free encyclopedia
Troubled Asset Relief Program - Wikipedia, the free encyclopedia

The economy's been in freefall since Bush sat his ass down in the oval office.

 

[Sallow]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.

Companies will invest in expansion if and when the market is there for them to profit from it. Until Obamas policies and regulations are rolled back it isnt gonna happen. This is America, companies are not in business for charitable reasons.

Of course you already knew this and will deny it so like Frank said...... its a pointless discussion.

Which regulations? Specifically?

 

[konradv]

Obama called Buffett right before he made the purchase.

Coinkydink?

You tapping into the WH phone lines now?!?! I guess you have to provide some kind of distraction to cover up the fact that despite our NOT having raised taxes, the jobs still aren't there. Seems like the "tax them and they won't create jobs" meme is all smoke and mirrors!!!

You may be a bigger moron than Don't Be as Stupid as Don't Be Stupid

I'll take it as a compliment. Coming from you 'stupid' probably has the same connotation as when 'bad' meant 'good'!!!

 

[Remodeling Maidiac]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.
.

Are you saying that Warren Buffet did not perform due diligence before dropping 5B into BoA?

Did he turn a profit? Besides his financial situation isnt the question the op put to us. We were asked why they didnt hire.

 

[Dont Taz Me Bro]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank of America's problems stem from thousands of bad subprime mortgages made by them and Countrywide, whom they acquired, before the market crashed. They're still losing a considerable amount of money on these mortgages so they need to offset the costs of the losses elsewhere.

They are not laying off 30,000 people. Most of this is coming from attrition, not replacing people as they leave, and canceling open requisitions for new hires.

As I mentioned in the other thread, this has been in the works for a few months now. It's not something that just surfaced. It has nothing do with Obama. It's the result of BofA having to come to grips and deal with the bad decisions they've made in the past.

 

[Remodeling Maidiac]

For months now we have all been lectured on these boards from those on the right about how if you cut taxes for the wealthy, they will invest that money and the company they invest in will then use that money to hire new workers and expand. According to the economic minds of the right, this happens every time, all the time, no exceptions, ever.

A few weeks ago, Warren Buffet, hated rich guy, invested $5B in Bank of America. Bank of America then turned around and announced lay offs of some 30,000 workers.

Now, I have already seen posts from people trying to blame the BofA firings on Obama (very funny by the way), but what I would seriously like, honestly, is for one of the economic minds on the right to explain to all of us, how is it you were predicting one thing and the exact opposite happened?

Thanks in advance

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.

Companies will invest in expansion if and when the market is there for them to profit from it. Until Obamas policies and regulations are rolled back it isnt gonna happen. This is America, companies are not in business for charitable reasons.

Of course you already knew this and will deny it so like Frank said...... its a pointless discussion.

Which regulations? Specifically?

Sallow you and I have covered this topic extensivly. We dont agree on the impact of the policies so why do you keep asking?

On topic the Obama administration is now set to sue banks over lending practices. Not for the loose lending that led to this mess to begin with, but for not continuing the practice. Now why should banks be expanding again?

 

[DontBeStupid]

Companies will invest in expansion if and when the market is there for them to profit from it.

Wow. I have been saying the exact same things for weeks now and you all have ritualistically insulted me at every turn. Now you want to try and claim it and use it on me? You're a piece of work.

This is America, companies are not in business for charitable reasons.

Again, exactly what I have been saying and what others have been saying.

When did you become a liberal?

 

[8537]

Bank Of America has been on the edge of going under for quite some time now. Investing in them is and was a piss poor idea. BOA is trying to survive not grow. If you want to invest in a company for future growth you have to perform due dilligence and research the company. Unlike Obama did with the solar company in California that went under weeks after recieving a half a billion of our tax dollars from Obama.
.

Are you saying that Warren Buffet did not perform due diligence before dropping 5B into BoA?

Did he turn a profit?

Well, I don't think he expected to turn a profit quite yet. He's a bit more of a long-term investor.

Will he turn a profit? He didn't become a multi-billionaire through failed investments.

 

[DontBeStupid]

It has nothing do with Obama. It's the result of BofA having to come to grips and deal with the bad decisions they've made in the past.

I agree. But still, what's happened is completely at odds with the GOP/Tea Party/Conservative mantra on tax cuts and the wealthy. What we have, is a situation where a wealthy person, benefiting from lowered tax rates, invested a sizable amount of money in a major American company ... and no jobs were created. In fact, there will be lay offs and reduced jobs.

That's why I want to hear from conservatives on this. How did they get it 100% wrong?

 

[Remodeling Maidiac]

Companies will invest in expansion if and when the market is there for them to profit from it.

Wow. I have been saying the exact same things for weeks now and you all have ritualistically insulted me at every turn. Now you want to try and claim it and use it on me? You're a piece of work.

This is America, companies are not in business for charitable reasons.

Again, exactly what I have been saying and what others have been saying.

When did you become a liberal?

You left out everything inbetween stupid. You cant get to c by skipping a & b

 

[DontBeStupid]

Now why should banks be expanding again?

In the case of BofA, because they received $5B from a wealthy person who benefited from years of lowered tax rates. It's the perfect situation for conservatives! It's everything they ask for.

So why no new jobs?

 

[Remodeling Maidiac]

Are you saying that Warren Buffet did not perform due diligence before dropping 5B into BoA?

Did he turn a profit?

Well, I don't think he expected to turn a profit quite yet. He's a bit more of a long-term investor.

Will he turn a profit? He didn't become a multi-billionaire through failed investments.

You are right. I think it was a very risky move though. But risky moves, when right, pay off big. Too bad liberals punish that.

 

[Remodeling Maidiac]

Now why should banks be expanding again?

In the case of BofA, because they received $5B from a wealthy person who benefited from years of lowered tax rates. It's the perfect situation for conservatives! It's everything they ask for.

So why no new jobs?

I just explained it to you. Take off your "stupid" glasses and read my op again. This time dont leave out the meat of the text.

 

[Ravi]

Did he turn a profit?

Well, I don't think he expected to turn a profit quite yet. He's a bit more of a long-term investor.

Will he turn a profit? He didn't become a multi-billionaire through failed investments.

You are right. I think it was a very risky move though. But risky moves, when right, pay off big. Too bad liberals punish that.

Translation: I said something stupid, therefore liberals suck.

 

[Dont Taz Me Bro]

It has nothing do with Obama. It's the result of BofA having to come to grips and deal with the bad decisions they've made in the past.

I agree. But still, what's happened is completely at odds with the GOP/Tea Party/Conservative mantra on tax cuts and the wealthy. What we have, is a situation where a wealthy person, benefiting from lowered tax rates, invested a sizable amount of money in a major American company ... and no jobs were created. In fact, there will be lay offs and reduced jobs.

That's why I want to hear from conservatives on this. How did they get it 100% wrong?

You're looking at this through an incredibly narrow lens. First of all, tax cuts do help create jobs. it's been shown time and time again to be a major catalyst in job growth, but it's certainly not the only factor. The economy is like the human body. Many things can fuck it up and there is no definitive cure all for every disease.

The reason why tax cuts are good for the economy is because they stimulate spending among the middle class and encourage investment among the wealthy. Wall Street millionaires didn't get rich by putting their money in a passbook savings account earning 2% interest a year. They do it by investing and when they have more money, they invest more of it, but nobody invests in a bad deal. Bank of America is considered to be toxic by many investors right now. They keep having problem after problem increasing the risk of investing, so people are staying away from it. Warren Buffett can afford to take the risk because he bought preferred shares which give him a much larger safety net in case the investment goes south. People like you and I typically can't get preferred stock. Buffett obviously sees something about the company that gives him confidence about its recovery, but then again, he is also Warren Buffett. I'm sure he is privy to a lot of insight the rest of us are not.