The Cody Word
  • November 18, 2008 10:59 AM EST by Cody Willard

    Where We're Going with "Where's My Money?!" This Week

    Here's some of what we're going to be hitting on Where's My Money?! this week:

    1.  So Goldman's TOP execs turn down their bonuses since the company's directly receiving almost as many welfare tax dollars than all of the rest of NY State's medicare recipients combined (about $16 billion in medicare in NY state in 2006 vs. the $10 billion Goldman took).  Let's remember Goldman does have about 30,000 welfare recipients on their payroll still...and they'll be doling out billions in your tax dollars to those people still.  You'll hear these bonuses for non-execs on Wall Street that are gonna be paid for out of your tax dollars because

    * "Gotta honor their contracts" (Since when?!  The US government is voiding trillions of dollars of contracts because the Wall Street firms who are getting your welfare dollars to pay their non-execs billions of dollars of bonuses took mindless risks that have left them insolvent...if anybody should be okay with ignoring contracts, it's Wall Street!)

    * "You'll lose the best employees to the competition" (What competition?!  They're ALL insolvent if not for your free welfare dollars being given to them.)

    2.  In just the last five years, according to the WSJ, Goldman, Morgan Stanley, Merrill, Lehman and Bear have paid a total of $312 billion in compensation and benefits to its employees.  Yup, just the four firms who have begged for and received hundreds of billions of dollars from our welfare system (remember they got those hundreds of billions of welfare dollars over the last six months) paid out more than the amount they've taken out of welfare children's mouths to their employees.  Maybe they should have been planning for a rainy day instead buying back their own stock with tens of billions of dollars and sending hundreds of billions of dollars to their employees.

    Remember also, that bankers don't actually create anything. They simply facilitate the movement of capital.  So these four now-insolvent firms sucked $300 billion out of the economy for their employees in the last five years and now we're sending them outright welfare to pay their employees' salaries and bonuses.

    3.  BofA dividends...$1.5 billion paid out the same quarter they got $25 billion in welfare.

    4. AIG's contracts....$167 billion in welfare to guarantee their worthless insurance contracts that were mostly bought by hedge funds, family offices, hedge fund of funds, pension funds and sovereign wealth funds.  So who's getting that $167 billion in welfare?  Yup, hedge fund managers and their partners.

    Feeling more confident in the new system yet?  No, not so much?

6ftrabbit

@Andy Zimmer. There's a 3rd way. The founding father's way. As provided for in the Declaration of Independence. "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."

November 18, 2008 at 6:05 pm

Cathy

Wow- This is the best highly educated people came up with? Perhaps some less educated people can help them out. Give the money to the people, not $1,200.-go big! Those of us who have worked for over 20 years, now find that our jobs are gone with little or no options. If there is a substantial amount of monies given directly to the people, we will pay debts, buy cars, purchase goods & services and save businesses the way they should be saved. Main street is the answer not wall street, banks, insurance companies or poorly performing car companies. Who's vacation will we be paying for next? Where is the credit you gave the banks money to extend?

November 18, 2008 at 5:36 pm

ccee

I have 4 children, it was my choice to have them, it is also my responsibility to care for them. If I buy a house and decide not to pay for it, or put my self in a position that I cannot pay for it, the bank will close on me, not even considering how many live in the house. Welfare may help me buy food for a time, but if I cannot afford my house, no one will help me pay for it. What gives the banks or industries (or our Gov) the right to take my money to bail themselves out of their financial responsibilities. Why am I paying taxes? I would have to file bankruptcy. So should they.

November 18, 2008 at 4:13 pm

t mcgrane

cody surely you didn't get that smart going to school at harvard. nice job disecting the bullshit on wallstreet. i am looking for a business editor at my new website. if you are interested drop me an email. we could use fresh perspective.

November 18, 2008 at 4:11 pm

Jim

When an average citizen goes bankrupt they lose everything and all they're told is, "Sorry." When the auto industry or banking/mortgage industry is on the verge of going bankrupt, they're told, "We'll Help." I'm sure as hell "we, the people" gave Congress the "OK" to go ahead and speak on our behalf being that we're the ones that are going to have to pay for this. Folks, this is exactly what happens when we vote idiots into Congress and the Senate. Since we're the ones that will be footing the bill, shouldn't "we the people" somehow have the right to vote on this approval??? This is certainly sounding more and more like a socialistic government every day. It's very sad!!!

November 18, 2008 at 4:03 pm

JMike

Great article...It is just unreal how we are being ripped off!!

November 18, 2008 at 3:51 pm

Scotty

Looks interesting Cody, I'm a little bit of a sellout here. "Hey, Bolling, I dipped my toe in and lost it, you owe me a toe," What's up with C. Witch hunt, or what? I agreed with your analysis on the meat. Now I have to walk around with no toe. Thanks a lot bro. Serves me right, bailout hypocrite. Hey I was looking for the Rebbeca Diamond Bio and all I could find was this lady named Rebbeca Gomez.

November 18, 2008 at 3:41 pm

Scotty

Hey Bolling, just in case this gets filtered, my toe. Where is it?

November 18, 2008 at 3:40 pm

R

Bust them up. If GM wants a bailout then they should be broken into multiple companies. One board of directors with like 10 people on it are making the decisions for 250,000 employees and 3 million workers that supply parts to these guys. It's time to break them up like we did AT&T. Then if Chevy screws up it won't take out Saturn and if one manufacture goes down the suppliers can still sell to the others. Turn GM back into 10 different companies and maybe we will see the innovation that we need.

November 18, 2008 at 3:30 pm

Bruce

Obviously, no one here recognizes that the election is over... If we were so afraid of the economic calamity that confronts us now, we would have voted all of the career politicians out of office. All that these people had to do is promise more give-aways and exploit the class-envy situation and the "have-not" hoards voted them back in. What chance do us hard working tax-payers have against such a formidable adversary? What we need to do is make sure that everyone working, earning and paying taxes understands that government intervention will not create benefit.

November 18, 2008 at 3:21 pm

RH

I don't know how much to say, for fear of looking like I'm backing the current administration. But please remember, taxes are paid so the government can make the adjustments needed to keep self-interest aligned with national-interest. This includes "effective tax" levvied by the government printing money and increasing debt. That money is under no obligation to be divvied up "fairly," merely "effectively." Those who want to argue that it was an inefficient solution to the problem are welcome to do so, but don't make the "its not fair" argument... for it never should be "fair" in the first place. Philosophy aside **dons a political hat** did people really vote out a republican for spending too much and put a democrat in his place? For all of our sakes, lets hope Obama is willing to diverge from the party line enough to offset democratic houses and senates.

November 18, 2008 at 3:20 pm

Doc

Thanks to Cody for a great discussion. Way more attention needs to be pinned on George Soros and his purchase of the Democratic Party. The Media Conglomerates pushed Soros agenda under the cover of the Hate Bush messages. The Media darlings were upset over the Stem Cell and Global Climate Change rebuffs that Bush had to make as Policy. The Carter/Clinton Administration Media stratedgies worked again. The combination of Sub-Prime Mortgages and the Mark-to-Market Accounting scam set up the economic demise. The Oil Price Speculations triggered the slide. All of these economic moves had been practiced in Malasia and the Soviet Bloc breakup so this outcome was predictable and assured. That is just the stuff we can see. You can bet there is behind the scene activity we may never be able to prove especially with the Clinton re-treads now covering all their tracks. There had to be an ecomomic collapse to get the current crop of Democrats in controll of the House, Senate and White House. GoodBye USA. That is Soros' goal this trip. For all my fellow Boomers you must figure out why you were attacked by the Drug Lords in the 50's and 60's. The only way to keep the Boomers from organizing and imposing their collective wills was to put them into a total stupor with the Sex, Drugs and Rock'n'Roll social assaults. We have fought through most of that and we need to now organize and stop this maddness before it can not be stopped. We need to rally around an issue. I say we must save the Social Security System and Put the Money Back In. Force the US Government to pay off the IOU's before this Government is collapsed to keep from having to admit it's crimes and return that money. That is the only chance we will have any funding to rebuild this country. You want to march on Washington, Make Saving the Social Security System for those of us who have paid in all our working lives the Rallying Cry. Put it Back. Thanks again Cody

November 18, 2008 at 3:00 pm

Andy Zimmer

The only way to take back Washington is to do one of two things. Vote the rats out or run for office yourself. I prefer the latter. ZIMMER 2012 We need to take Washington out of the hands of the career politicians! I approved this message. Andy Zimmer

November 18, 2008 at 2:59 pm

YouthDriver

Since Jacob Needleman won't be on the show ? I can't watch this time.

November 18, 2008 at 2:58 pm

Mike C.

So the Big 3 Want bailout funds. Fine, then the government would have to mandate that they buy all their supplies from U.S. Companies. This would help stimulate the U.S. economy and keep U.S. made cars U.S. made.

November 18, 2008 at 2:53 pm

CR

To the author: I wonder if you were a recent graduate who depended on a modest bonus to help pay down the huge burden that is placed on you in exchange for bettering yourself by attending graduate school, you would not be writing this. No matter how thin you slice it, there's always two sides to a story.

November 18, 2008 at 2:14 pm

John B

I worked for a company for almost 5 years, I followed the rules. I didn't go into massive credit card debt, I didn't buy a house I couldn't afford. What next? The company starts going through "cost cutting measures". They cut hours, benefits, then the company structures a deal with top management so they get a golden parachute after they sold the companies European division. Then the office I worked in get's closed. Where's my money? Where's my golden parachute?

November 18, 2008 at 2:05 pm

Jeremy

How may mortgages could 700B have paid off, if given directly to struggling homeowners? Talk about an economic stimulus!!!!

November 18, 2008 at 1:18 pm

m abbott

Still can't figure out why we (the poor little old taxpayers) are providing so much financial assistance to those who make so much more money what with their compensation, bonuses, extravagant Holiday parties, etc. I do believe the phrase "redistribute the wealth" means to take money (taxes) from the middle class taxpayers and help those highly paid employees who continue to be on the payrolls of the companies who are failing (highly compensated as well). Bah Humbug -- thanks to the government taking my money to bailout big businesses and banks. Christmas will be bleak in our neck of the woods. I hope the stock brokers, Wall Street executives, bankers, bank executives, GM executives, UAW, and our Congressmen who have spent our taxes for future generations to come have a wonderful holiday season while the rest of us struggle to make ends meet. And don't bother with the enticement of another stimulus package to change my mind -- I don't want my grandchildren and their children to take on further financial obligations. Thanks, Cody, for continuing to point out the inefficiencies in our financial system. Ludicrous, isn't it?

November 18, 2008 at 1:14 pm

Jane K

While giving away all that money, Washington ignores the silent majority - those of us who are still paying our mortgages on time each month. We're still living within our means & not running up personal debt. We are the rssponsible ones who don't need the gov't money. Matter of fact, we are the ones funding the giveaways. We are the ones who voted against the current majority in Washington. We are frustrated, but we will just soldier on, doing the next right thing each day. Why? Because we don't know what else to do. However, when the current majority completely bankrupts the country, perhaps we will get another Reagan who will motivate us to make our voices heard at election time. This year, most of us just went to work on election day and stayed away from the voting booth. Our preference for leadership just wasn't on the ballot.

November 18, 2008 at 12:55 pm

Ginger

Is there no way that the American people can stop this short of revolution? Why does it feel as though some are still lining their pockets? We need real "Change" not the kind that rehires from old administrations. Where are the brightest and best? Why is everyone so threatened by new faces and new ideas? We are experiencing failure because it doesn't work! Wake up, people!!!

November 18, 2008 at 12:42 pm

John

Nope - if they were going to help the economy - they would have been better off giving us the money to pay off our mortgages (the ones that we are actually trying to get paid off that is). But they didn't do that. Wonder why?

November 18, 2008 at 11:40 am

TPC

Great takes Cody. You expanded on your takes and were excellent on KABC radio Los Angeles yesterday too (Dunno if it was on the strength of me suggesting you to them). It was great to hear from CW while in route on the LA Freeways. Clear and precise, the whole "Bailout" seems to be backing into hell just like you predicted early on. No, not feeling more confident in the new system. You pointing out the smoke and mirror tricks is helping us understand it better though.

November 18, 2008 at 11:31 am

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

most popular posts