Barack Obama chafes inside the 'bubble'

Not to defend the CEOs of the auto companies--they deserve what they are hearing--but how come CitiGroup gets what it wants, no questions asked? The double standard between Wall Street and Detroit is nonsensical and smacks of unionbusting.

Mort, to answer your question, because there is a big difference between a bank and a car company - if a bank goes under, millions of people may lose their deposits - if an American car company goes under, millions of people may lose their chance to buy poorly designed and built cars.

Where I live and work (in the real world) bonuses are paid for performance and by any standard of measure banks have not performed well. Bankers have not earned bonuses.

Maybe the reason the government so much quicker to extend equity to banks is because when the country's financial firms fail, lines of credit to all businesses across the spectrum are affected. Not to minimize the auto sector, because it's a large source of manufacturing jobs, but if our credit system fails, then we not only lose autos, but biotech, construction, retail, and a host of small businesses as well.

Maybe the reason the government so much quicker to extend equity to banks is because when the country's financial firms fail, lines of credit to all businesses across the spectrum are affected. Not to minimize the auto sector, because it's a large source of manufacturing jobs, but if our credit system fails, then we not only lose autos, but biotech, construction, retail, and a host of small businesses as well.

This is, perhaps, the first time I've heard an active, high office government official say out loud what everyone else is thinking.

When you already have millions (or more!) of dollars in the bank (or in your home, or in your IRA/savings etc) how much of a sacrifice is it, really, to say, "I'll forgo the whipped cream and cherry on top of the double banana split I've already ordered for dessert".

Or don't these people get it? Oh sure, "I've the right to expect to maintain my 'normal' life style". Meanwhile the rest of us scrape by as best we can. Does this make any sense whatsoever? To anyone?

Not me!

Not only has the leadership of the "Big 3" lost it but the leadership of the UAW have lost it!

Both need to wake up to reality and agree to make changes.

The government should not provide one penny until both sides awaken to reality.

CEOs should forego a lot of things -- besides their private jets -- but they're not going to. I work for a major corporation that is planning a massive downsizing. Time to tighten the collective belt... OK, can't argue with that.
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But who's going to decide how the sacrifices are going to be made, who is laid off, whose bennies are cut? The executives. Call me a cynic, but somehow I can't foresee the sacrifices being shared fairly.

Mort, there is certainly some truth to what you are saying, but ask yourself this, "Who will loan money to buy those cars when the banks are gone?" I agree in principal to the unfair treatment, but the auto industry is one that has had a ton of opportunity over the last 10 years to innovate and they have closed the door every time on that option. Now they want a bailout without a business plan. If I went to a investor without a plan the first thing they would say is goodbye. The banks have a plan - not a great one but a plan. I want to see a plan from the automakers otherwise I want to see them go away. Someone else will buy them and run them much better. Detroit is a disaster.

Barack's views on this subject seem to reflect his grandparents' values.

Who lived through the Depression and WW II and knew the meaning of the words duty and sacrifice.

These executives haven't a clue.

Almost every unionized job in America has been under assault by the Corporation, or the Republicans for the last 35 years, in a dramatically, obvious way. Now, apparently, it is the auto industry union workers that have been targeted for abuse !!
The union workers dared to demand fair compensation for their contribution to the success of the Auto Industry !! What are they met with, blame !! Many people claim it is the union worker that has flushed the industry down the toilet, but I say, it goes higher than that !! It is the incompetents that are out and about, in their flying machines that have dumped on America. They and their management team neglected the Industry into a precarious situation, that they would like to see resolved in bankruptcy court, in order to dismantle the unions !!
The workers have spoken, in terms of their unionization, and the management team, being a practicer of unamerican activities, have decided to bust the union, anyway they can. Even if it means, torpedoing the American economy !! Though, the CEOs and their teams can fly around the world in corporate jets and spend 15-20 million dollars pay, a year, hardly earned !! Wake up, America, union-busting is bad for the nation's health, economically and morale-wise, but we know that, look at America today. It's in shambles!! Why !! The unions kept an eye on the profligates, those CEOs and their gang of managers !! Support the unions !! They are the real supporters of America !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.

Neil obviously knows nothing about FDIC insurance of bank deposits; or about how many jobs are involved in the manufacturing sector.

Dan Fitzgerald: the UAW has demanded ridiculous (not fair) compensation for their participation in (not contribution to) the rape of (not success of) the auto industry. If the auto industry were successful, they wouldn't be begging for my money to keep them afloat vs filing for bankruptcy which they did to themselves with the help from the union who demands $30+ per hour plus pensions plus fully paid healthy insurance plus plus plus to screw on rearview mirrors. Get off your entitlement high horse and get down on the ground with the rest of us and take a look at what might be in the best interest of the country as a whole and not what is in the best interest of your VISA balance.

yeah, and maybe B.O. shouldn't have taken all those millions from Fannie and Freddie for his war chest, either, right B.O.? Admit it. And maybe Schumer shouldn't have started that run on the bank, and talking about how the banks are failing, the banks are failing. Chicken Little personified. That had a nice domino effect just in time for the election, right?

Why is the SS telling the Prez elect that he can't have his blackberry? What's the worst that can happen if he has it?

SS guy 1:
'Crap, Renegade just ordered a pizza - with sausage - incoming!'

SS guy 2: 'Scramble chopper and warn the staff!'

Geez.

It's almost Christmas, Walters reminded the incoming president. Should bank executives forgo their bonuses?
"I think they should,'' Obama said. "That's an example of taking responsibility. I think that if you are already worth tens of millions of dollars, and you are having to lay off workers, the least you can do is say, 'I'm willing to make some sacrifice as well, because I recognize that there are people who are a lot less well off, who are going through some pretty tough times.'''

*I think we are being too hard on executives and we should lay off of them for a while… at least let them have their bonuses! Their argument is that they are “contributing to the economy” by spending their millions, using their private jets and having executive spa weekends. Their real responsibility on the economy is keeping signing paychecks to their employees. It is sad to think that most executives either don’t understand that or are only concerned with themselves…

Barack should be able to keep his blackberry, I’m sure the gov’t will find a way to modernize their equipment and technology.

I do hope that Obama is able to make a difference in the country. Reading this article it is clear that he seems to understand what is going on with the country. I hope he is the tough love President. Someone has to undo the last 8 years of la-la land.

I hope Obama keeps greedy executives in check, but also sends a strong message to ordinary Americans - debt is bad! Having multiple credit cards and loans for cars, homes plus home equity loans are leading you to trouble. Do not trust lending institutions with their offers of credit. Just because you are offered credit cards and loans does not mean you can afford them! Responsibility should start with each individual person - get smart or these greedy corporate executives will continue to take your money.

Mort....I agree in one aspect of your post. Why are the CEOs not scrutinized as much from the banks vs Automakers? If banks are more important to bailout, why does the poor management of these banks not replaced? Mismanagement, whether in either industry, should be demanded to step down before a bailout is made.

Coming out in support of working people, encouraging the wealthy to be happy with what they have? Wow, what radically American concept! Sort of makes those accusations of socialism sound pretty naive doesn't it?

This is why Barack Obama got my vote and will continue to get my support as president.

Bonuses are like tips; the expectation is always there from the servers point of view, however, bonuses and tips are a reward for performance, and, should be given accordingly.

I have been in the auto field for 40 years. I know exactly what the problems are with the auto industry and the fixes.
Iaacoca is the only factory man who has that same ability.
Those three dishonest incompetent bureaucrats are flat out lying. Dealers can tell you more than they can. I would be more than happy to consult with the President or his designates.
Nardelli is an example of incompetence rewarded. He almost destroyed Home Depot.What does that tell you about the executive recycling pool.
The unions need to be eliminated. rank and file members live in luxury after 30 years of putting rubber grommits on doors.

Get real! If I hear one more person stand back blame everyone else for all the problems without taking any responsibility, I'll scream. If there's been a problem with the last 8 years of "la la land" its because we've all been complacent. If there's been a problem with executive pay/perks - its because we've all tolerated it. If there's been a problem with tolerating unions extracting disporportionately money for jobs such as "screwing on mirrors" - we've put up with it. Let's be honest - there's usually little interest in paying attention to the details when things are going well, we all tend to suddenly "wake up" when a crisis develops - usually to forget the lessons once its past. Sadly, we seen destined to continue to repeat history (even B.O. the agent of change is starting to look like the second act of the Clinton White House)

Mort,

Banks are white collar workers more elite than the lower caste blue collar workers. Therefore the elite get the bailout, no quesitons asked. The Joe's are voting for this administration that does this.

Isn't it nice for a change to have a President who's also a moral leader?
Obama's message could just as well have been to the Bush Administration: it's time to stop rewarding political cronies and living fat off the American taxpayer and start looking out for ordinary citizens. And Clinton may have had economic success but he was no paragon of virtue, either. How long has it been since we can actually respect our President as someone with moral authority to say such things? How refreshing.

It's interesting to note that Wal-Mart showed profits, not losses. Wal-Mart isn't unionized. Hmmmm . . .

Being out of touch has doomed both of the Bush presidencies (and they were not alone). In the American culture, however, this elitist entitlement is often part of their "Ivy League" education that they are far superior to mere mortals. I sincerely hope Obama is truer to his current rhetoric than the elitism that can ruin a leader; especially now.

If we are ALL going to make sacrifices, how about a few more:
-limit medical lawsuits, a majority of which are ridiculous and cost us all billions in health insurance
-common sense salaries at the top
-common sense union rates that do not price members out of work
-a limit on the sadistic rates credit card companies can get away with, and better options for those who cannot keep up with the out of control fees and penalties that are bankrupting so many- especially now
-a top prioritization on education, especially public education, with a focus on solving real problems like energy, health issues, fuel efficient automobiles, and finance
-guidelines for mortgages that are transparent and fair

Obama is the right man at the right time, and I wish him the best. At least he is giving us proposals and options, and is making an effort to remain true to his principles. Hopefully, the demands of the office will not strip away too much over time.

It's interesting to note that Wal-Mart showed profits, not losses. Wal-Mart isn't unionized. Hmmmm . . .

Posted by: Dawn | November 26, 2008 10:41 AM

Your world's a simple place, Dawn. Walmart also buys pretty much everything from overseas, places where labor costs are next to nothing. Suppose that has anything to do with Walmart's profits? Hmm.

Banks are more important than a Black Berry. Who cares if you can't carry one, if you want to talk to the people then step outside the white house gates they're everywhere.

Yeah, that Nancy Pelosi and Harry Reid and Barack Obama are real union busters, huh?

[quote]Mort, to answer your question, because there is a big difference between a bank and a car company - if a bank goes under, millions of people may lose their deposits - if an American car company goes under, millions of people may lose their chance to buy poorly designed and built cars. Neil [/quote]

Neil, I beg to differ with your description of American-built cars. I've owned both foreign and American built cars, and the foreign-designed and built cars were no better than any of the American cars. In fact, I think many of the American cars are a lot more conservatively designed and will consequently last longer than many of the imports.

However, I do take umbrage from the American CEO's arrogant idea of flying to Washington in their private airplanes to beg for a hand-out. That's just plain insolent on Detroit's part. But, when you're paid the outrageous amounts that American executives command (and receive) that's probably just a way of life.

I would (and do) support a Detroit bail-out, but with some hefty hawsers attached:
Detroit corporate executive pay cuts across the board by a vast percentage... perhaps 80% or more reduction considering the total compensation package;
Abolition of the ridiculous UAW union and their absurd overinflated package of compensation;
And to assist those American companies, some reciprocity in trade laws with the countries from which we import goods.
"FREE TRADE" is not practiced between the US and Japan, or most of the other Asian countries; ask anyone who has tried to sell any American goods to an Asian country. Our balance-of-trade between imports and exports needs to be near zero.

>>Because, one of the worst things I think that could happen to a president is losing touch with what people are going through day to day.''>>

When has Obama ever been in touch with what people are going through day to day? If he were 'in touch' it would be for the first time in his career. I do think he is correct with respect to the auto industry, but it needs to be extended to all of them. The bailout needs to be stopped cold and let the market sort itself out without government interference. There very well MIGHT be a depression, but as long as the government would keep out of it, then it will self-correct much faster and be healthier in the long run.

Dawn, some of those Walmart profits also come at the expense of their non-union employees. Cashiers earn about $7.92 an hour, and sales associates earn $8.23 an hour. These folks are making less than $15,000 a year, which is nowhere near enough to support a family.

I thought that Obama had to give up his Crackberry because of the presidential office, privacy for that office, and anything he says or writes is public record until he is out of office. Palin has two of them remember and they were looking into what business she was doing/hiding from the people of Alaska. Can anyone help on that?

Apparently, some of these astute political observers, aka, character-assassins, have not been paying attention to anything except their " Fear and Smear Lying Machine ". President-elect Obama was involved with the abandoned steel-mill industry communities that where destroyed, to the benefit of a few Capitalists !!! If you are interested in our next President's resume, but I doubt that you really are !! All you want to do is spread fear and smear our next President's good name !! Guess what, guys and gals, that election is history and all of your silly, dirty tactics were rejected by 65,000,000 voters. Take a hint and give up the ghost !! All the lies you tell about President-elect Obama, or about the good union workers, who refuse to accept the peanuts that those $15,000,000 a year, CEOs and their over-payed management staff, have been laughed at and voted against !! Try another tact, maybe you can tell the voters, the next time there's an election, that all union workers are the biggest sinners in the world, or how about, that they are communists or anarchist, or even atheists !! Im sure you will find some falsehood or distortion to try to fool the electorate, once again. Why don't you just go tell your bosses, the Corps, or the Bush-McCain Republicans, that the American electorate is wise to your misleading and false statements about union workers. It is the union workers that helped make America great and strong, not $ 15,000,000 a year CEOs, who jet around America in private jets !!
SUPPORT OUR TROOPS, BRING THEM HOME, ALIVE AND WHOLE. NOW.

Susan,
If you want to begin your comment by asserting that Obama is out of touch, you may not want to end it with:

"There very well MIGHT be a depression, but as long as the government would keep out of it, then it will self-correct much faster and be healthier in the long run."

There are so many things wrong in that sentence that it deserves some sort of Obliviousness Award.

@Susan

"When has Obama ever been in touch with what people are going through day to day? "

Remember when the Republicants made fun of Barry's "community organizer" days? He wasn't running for POTUS then. He was working with people who struggle getting by, day after day.

You're entitled to espouse an Ayn Rand philosophy, but you're not entitled to support your argument with an attack on Obama that comes very nearly the complete opposite of reality. Obama may have many deficiencies, but ignorance of the plight of working people is not among them.

It seems Barack's enemies haven't found the $$$ to pay their PR people for a new set of talking points.
They just keep recycling the old ones.
In this instance, the "elitist" tag.
Well, he's out at the soup kitchen distributing food this afternoon, so that's kind of hard to square with the elitist talking point.
Bush never did anything like that (except for the Thanksgiving fly-in in Iraq with the fake turkey on a platter).

Nor did his dad.

Why not let Barack have a cell phone? Simple engineering question. Because they make dandy targets for homing devices.

Think: cell phones have a transmitter on a known set of frequencies, sending a ID signal every few seconds. Get the IMEI (the unique ID burned into every mobile device)of that device by a little digging in phone company records, and you've got a self-identifying focal point that you can pinpoint to a few hundred foot radius. Don't believe me? Look at the Google Maps application on the first model iPhone. That's how it worked -- by using the triangulation capability of searching through the cell tower registration for your phone. 3 tower registrations, and you're a target.

"What's the worst that can happen if he has it?"

For starters...potential violation of Federal law regarding records of presidential communication if something were to go unlogged and unrecorded.

Presidents don't operate in bubble so much as they operate under an electron microscope.

Walmart can do what they like, they are a business it's their money and they can run their corp they way they like. I get tired of everyone complaining about one of my favorite places to shop.