Hey folks,
So I've been telling you, along with some others, that Bush was wrong. Of course, we have been telling you Obama is worse. Leave the Free Market alone and it will fix itself. Will some business go out of business. Yup. Will some people that should have never had the home loans they had have to give up their homes? Yup. Would the economy go on? Yes.Whenever there is a business that does not meet it's needs, one of two things happen. They find a way to fix themselves, or there is someone else out there that steps up and takes over. One car company goes under, three more step up. Or, another steps in and takes over the one failing. Banks? Same thing. Insurance companies? Same thing. ANY industry, same thing.
Enter Bush, and the Liberals that have taken it to multiples nearly unmeasurable, throwing free money around. OF COURSE there will be many that put their hand out to receive it, regardless of the consequences.
Was the economy in rough shape before bailout mania began? Yes. Would it have fixed itself? Yes. A lot faster than it will take for us to UNDO what the Government has done.
All we kept hearing from the "Experts" and our Government is we must do this now. The end of the finical world is coming and unless we bail them out, it will be a world collapse.
One company in trouble that the Government said no to, because they are not Unionized, is CIT. So they are facing certain bankruptcy. They are in dire straights. There is no hope other than the government coming in and saving them? WRONG!
According to the AP - CIT secures $3 billion financing from bondholders By STEVENSON JACOBS and DANIEL WAGNER, AP Business Writers Stevenson Jacobs And Daniel Wagner, Ap Business Writers – 52 mins ago
NEW YORK – Commercial lender CIT Group Inc. confirmed late Monday that it has secured a $3 billion bailout from its bondholders, averting an immediate bankruptcy filing and giving the company some breathing room to restructure its debt.
It's a new twist in the financial crisis: A major bank on the verge of a last-minute rescue — only this time the bailout isn't coming from the government. The deal marks the first time since the banking crisis erupted that private investors are stepping in to save a big financial firm without federal help or oversight.
As it SHOULD have been done all along. "Only the Government has the resources to Bailout Fannie and Freddie." WRONG. "The Government is the answer." WRONG. This or that industry is "To big to fail." WRONG. The Free Market WORKS.
The lifeline for CIT, whose clients include Dunkin' Donuts franchises and clothing maker Eddie Bauer, aims to sustain the company long enough for it to rework its heavy debt load, which includes $7.4 billion due in the first quarter of next year. It does not guarantee CIT will avoid bankruptcy.
CIT said the rescue includes a $3 billion secured term loan with a 2.5-year maturity, which will ensure that its small and midsized business customers continue to have access to credit. Term loan proceeds of $2 billion are committed and available immediately, with an additional $1 billion expected to be committed and available within 10 days.
They had a problem. Those that have an interest it the company stepped up and is helping to save the company. They are getting their "Bailout" and it will be available FAR faster than any Government Bailout. They do not have to kowtow to the Government for the Government is doing NOTHING to save them. This is the way it would have happened if those in Government, including President Bush, left it alone. We would not have opened the door for Obama and Crew to spend us into record dept while fixing NOTHING.
"With today's announcement, our board of directors, management team, advisors, and a steering committee of bondholders, who are lenders under the term loan financing, are now actively focused on a restructuring plan that will better position our company for the long term," said Jeffrey M. Peek, CIT chairman and CEO, in a statement.
Again, this is the way it has always happened, and should have remained the way, it always happens. Make it or not on your own. If we allowed Fannie and Freddie, GM, or any of the other Bailed out companies on their own, they would have gotten creative, or they would have gone under, with others picking up the slack. If they did go away, it would have been a lesson to others, do not do what they did.
But we didn't. We threw around a bunch of free money that saved them, for a bit, and in turn said, it's OK. But it's NOT OK for our children and their children who will be paying for all this. This guy kind of get's it.
Scott Talbott, top lobbyist with the Financial Services Roundtable, which represents CIT and other big financial firms, said the government's seeming pullback from the banking sector was a welcome sign.
"When the government steps in, you disrupt the market," he said. "That was necessary to restore liquidity but distorted the free-market system. Now the exit strategy is becoming clear."
No it wasn't necessary. It just wasn't. They would have failed, people, including some Senators and Obama himself would have lost some money, some people may have been hurt in the short term, but we would NOT be in the financial mess Obama and Crew put us in. We would be NOWHERE NEAR in as bad a shape we are in now.
CIT Bailing out CIT PROVES that it can be done, and should have been done all along. I repeat. The Free Market WORKS. If after this they still fail? Well, then they fail. But it did not cost Tax payers Billions or Trillions of dollars. And THAT is the way it should be. It really is, just that simple.
Be right back with the "From The Energy Front" Segment in just a second.
Peter
Sources:
AP - CIT secures $3 billion financing from bondholders
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