TARP funds should be used to bail out Detroit

[Hermod]

Here's another more colorful explanation, beware of the word choices

http://www.thereformedbroker.com/201...raped-detroit/

Duh, governments, companies, and individuals who mismanage their finances always pay more to finance their debt than their more fiscally responsible counterparts. Detroit's finances are in such terrible shape, that when they borrow money, they have to go to the "pay day loan" type of financing.

Merrill Lynch was identified as one of the villains. The guy running the palce at the time went into the derivatives and mortgage tranches full time felling that it was more profitable and sexy than just stock brokering. he destroyed the company. When the Skank of America took over Merrill Lynch, the owners of M-L stock got pennies on the dollar in BOA stock [[which then declined). A lot of the honest, decent brokers at M-L had a lot of their personal portfolios in M-L stock which, based on the price of BOA stock today means they took an 88% loss.

Skank of America is also in bad shape. The stock brokering arm of M-L is about the only thing they have which is profitable and they have endless lawsuits based on the M-L craziness and the purchase [[just before the crash) of one of the worst of the mortgage bandits.

[Hermod]

Stanley O'Neal [[educated at General Motors Institute) is the guy who brought down Merrill Lynch.

http://en.wikipedia.org/wiki/E._Stanley_O%27Neal

O'Neal is said to have an "abrasive" personality. CNBC includes O'Neal in their list of "Worst American CEOs of All Time". When Thain arrived at Merrill he scrapped O'Neal's practice of having the security guards always hold an entire elevator bank open excusively for him. In The New York Times Magazine on April 18, 2010, O'Neal was described as one of the "feckless dolts" who helped precipitate the financial crisis of 2007.

[Wesley Mouch]

[[from the article)Wrong-Way Bets

Detroit also entered into swaps contracts with UBS and SBS Financial Products Co., which serves as a counterparty on swaps transactions.

What is CoD doing entering into fancy financial transactions?

[Zug]

I take it that saying Detroit was bailed out when GM and Chrysler were bailed out was said in jest.

Anyway, going more on-topic. Now that Detroit has an EFM, I do wonder if the city can apply for funding that it would likely not receive under normal circumstances. I honestly do not know much about how TARP works, except for the basics. However, I would think that an EFM symbolizes that the city is on a path to correcting it's finances [[or at least will attempt to do so)...so the excuse that "the city will just mismanage the funds anyway" holds less weight.

[Wesley Mouch]

I take it that saying Detroit was bailed out when GM and Chrysler were bailed out was said in jest.

Anyway, going more on-topic. Now that Detroit has an EFM, I do wonder if the city can apply for funding that it would likely not receive under normal circumstances. I honestly do not know much about how TARP works, except for the basics. However, I would think that an EFM symbolizes that the city is on a path to correcting it's finances [[or at least will attempt to do so)...so the excuse that "the city will just mismanage the funds anyway" holds less weight.

Zuggie -- I think you are right that since an EFM is in place, the possibility of outsiders helping Detroit is much increased. It will depend to a degree on how much the city accepts the EFM's actions -- or decided to fight and scream at every single turn. This is where City Council has the chance to make a difference. If they were to toss their weight behind Mr. Orr, things could get better fast. If they fight everything, outsiders will realize that Orr's reforms won't 'stick'.

[canuck]

Hermod, per your quote;

O'Neal is said to have an "abrasive" personality. CNBC includes O'Neal in their list of "Worst American CEOs of All Time". When Thain arrived at Merrill he scrapped O'Neal's practice of having the security guards always hold an entire elevator bank open excusively for him. In The New York Times Magazine on April 18, 2010, O'Neal was described as one of the "feckless dolts" who helped precipitate the financial crisis of 2007.

I wish we could use his abrasive skills to get rid of rust on old machinery; make his banker's face employed for something useful.

[Hermod]

I wish we could use his abrasive skills to get rid of rust on old machinery; make his banker's face employed for something useful.

We don't need another arrogant asshole in city hall

Attachment 18646

[canuck]

Maybe even have him hold the elevator doors open for somebody else awready.

[p69rrh51]

Are there any Tarp funds available?

[Mikeg]

Stanley O'Neal [[educated at General Motors Institute) is the guy who brought down Merrill Lynch

E. Stanley O'Neal - student photo from the "1972 Reflector" General Motors Institute yearbook:

[Hermod]

Don't feel bad for Mr O'Neal. After Merrill Lynch lost billions of dollars under his watch, he got a $120 million parachute.

[canuck]

Atsa pretty expensive parachute all told.

[aj3647]

TARP ended in 2010. So no, Detroit will not be getting any TARP money because TARP doesn't freaking exist anymore.

The whole premise of this thread perfectly exemplifies DYes...people suggesting "solutions" that would require a genie or a magic wand to grant because they have no basis in reality.

Detroit will get a federal bailout the day after Belle Isle gets sold to a billionaire libertarian. Now on to more discussions of deploying the National Guard in Detroit to provide police services and other such utter nonsense.

[Zug]

Even though TARP technically ended in 2010, I thought there were still some programs for people having trouble paying for their homes that are using TARP money. I shall google now...

here:
http://www.treasury.gov/initiatives/...s/default.aspx

"As part of this broad response to the housing crisis, Treasury, under TARP, established two central programs, Making Home Affordable® [[MHA) and the Hardest Hit Fund ®[[HHF)."

[Hermod]

Even if president Obama didn't have budget problems of his own, he knows damn well that if he ever proposed a "special bail out" for Detroit, every city in the country would be lining up with a tin cup in their hands. "Obama Money" just ain't gonna happen, folks.

[mam2009]

TARP wasn't the auto bailout. It was the bank bailout.

The Troubled Asset Relief Program [[TARP) was a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

[313WX]

TARP wasn't the auto bailout. It was the bank bailout.

The Troubled Asset Relief Program [[TARP) was a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008. It was a component of the government's measures in 2008 to address the subprime mortgage crisis.

Bush apportioned a TINY [[I mean miniscule) part of TARP to Chrysler and GM before he left office in December.

Otherwise, they would have collapsed before Obama was inaugurated and he would have been blamed for it.

[mam2009]

Bush apportioned a TINY [[I mean miniscule) part of TARP to Chrysler and GM before he left office in December.

Otherwise, they would have collapsed before Obama was inaugurated and he would have been blamed for it.

Thanks for the fact check, 313.

http://useconomy.about.com/od/critic...to_bailout.htm

[MommaDrizzly]

can they sue the banks for unpaid taxes?

[canuck]

Even if president Obama didn't have budget problems of his own, he knows damn well that if he ever proposed a "special bail out" for Detroit, every city in the country would be lining up with a tin cup in their hands. "Obama Money" just ain't gonna happen, folks.

There is a major problem there for sure. A lot of places in need of "attention" are bound to demand more from the feds. I do imagine there are better ways of subsidizing an experimental Detroit, one that favors new automotive technologies and Obama's latest cursory project seems to indicate more could come the way of Detroit if I read him well.

If Detroit were a bigger municipality via mergers, the metro region would attract more attention and funds, pack a bigger punch.

[PurpleHeart]

No banks can't be sued for unpaid taxes, but they should be responsible, that was my point with the thread. And even the TARP funds which were initiated so these so called "too big to fail" banks would be shored up [[unlike the Cyprus intended bail out) forgot or left out the communities that are left in the wake.

[PurpleHeart]

I guess I have lost all of you so called Detroit Experts about now?

Seems you want to talk about other things that was not the original posting. But I wanted to at least put it on notice that Banks shouldn't be bailed out, Detroit Should Be!

And even though the banks have been bailed out to the tune of 86 Billion a YEAR [[subsidy or TARP Funds don't matter) it is these same banks who are putting Detroit Residents out on the street and foreclosing on these homes, leaving them to go unpaid in taxes and become dilapidated hunks making the rest of their neighborhood go down in value. When are you folks going to wake up ????

"What if we told you that the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers? A SUBSIDY.
Granted, it’s a hard concept to swallow. It’s also crucial to understanding why the big banks present such a threat to the global economy.

The top five banks -- JPMorgan, Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and Goldman Sachs Group Inc. - - account for $64 billion of the total $83 billion subsidy, an amount roughly equal to their typical annual profits. In other words, the banks occupying the commanding heights of the U.S. financial industry -- with almost $9 trillion in assets, more than half the size of the U.S. economy -- would just about break even in the absence of corporate welfare. In large part, the profits they report are essentially transfers from taxpayers to their shareholders."

http://www.bloomberg.com/news/2013-02-20/why-should-taxpayers-give-big-banks-83-billion-a-year-.html

http://dailybail.com/home/bernanke-we-have-no-idea-how-much-money-were-giving-the-bank.html

[Richard]

A large amount of funds are being used to "bail out" Detroit ,they are not in the here is a big check spend as you please format.

If you look closely the new initiative that is going after the hard crime is not being funded by the city but somewhere, Right,notice that it was discussed here in the bring back stress thread.

Millions are being spent with the FBI to root out the corruption,that is not being paid for by the city,people from all over the country are coming to help and put their self in danger to help the city,an example would be the other day in the bust where there was the secret service involved helping petty crime. What does that say?what other city has that help.

Until the corruption is in check what good is it to bail anything out.Can you imagine being a LEO and going to another city that is not even your home to put your life on the line while your family is back home worried.

It is a slow process and will take some time but one would hope that next time somebody says nobody cares about Detroit they remember there are some who do,because that is what we as Americans do.

You guys know that until the leadership issue gets straightened out and those that do not care for the city are on their way out it is tough to ask for anything out loud,voice your concerns and put those into office that will help you and the city progress and it will.

Have a little faith and when somebody stands up and makes an announcement for something that will be good for the city stand behind them and support them and show that you do care,it tells those working in the background thanks and they know they are appreciated and not taken for granted or their service is expected,it does not matter if their time is short but it is not always them speaking,more so an announcement,politics.