CIT files for Bankruptcy.

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Buzz Killington

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http://www.bloomberg.com/apps/news?pid=20601087&sid=aKmvIUy3V8QY&pos=1

5th largest bankruptcy in history.


CIT Group Inc., the 101-year-old commercial lender that saw its funding dry up in the credit crunch, filed for bankruptcy in an effort to cut $10 billion in debt following a failed debt exchange and U.S. taxpayer bailout.

CIT listed $71 billion in assets and $64.9 billion in liabilities in a Chapter 11 petition yesterday in U.S. Bankruptcy Court in Manhattan. The Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.
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This is a commercial lending company that funds many small businesses. We are not close to being in recovery. Stay tuned...this may have a domino effect.
 
Once again the feds prove to be terrible stewards of our money. And we're supposed to trust them with our health care? With our very lives?? And watch millions more become unemployed when the insurance companies are closed down, and the domino effect from that.

Where does it all end? The hundreds of billions being pissed away to unions and executive salaries, the millions of jobs lost and millions more promised to come, the bolstering of the welfare state to enlarge and promulgate it to heights never dreamed of, a nation health care system where people die waiting for services at a cost exponentially higher then what we have now...

It is hard to imagine there is a possible light at the end of this deep and dark tunnel.
 
BLAZER PROPHET said:
Once again the feds prove to be terrible stewards of our money. And we're supposed to trust them with our health care? With our very lives?? And watch millions more become unemployed when the insurance companies are closed down, and the domino effect from that.

Where does it all end? The hundreds of billions being pissed away to unions and executive salaries, the millions of jobs lost and millions more promised to come, the bolstering of the welfare state to enlarge and promulgate it to heights never dreamed of, a nation health care system where people die waiting for services at a cost exponentially higher then what we have now...

It is hard to imagine there is a possible light at the end of this deep and dark tunnel.
Click to expand...
You sure are right. The foolish missteps of the Obama administration look graver every day.
 
Shooter said:
You sure are right. The foolish missteps of the Obama administration look graver every day.
Click to expand...

So you are saying that the administration should have given CIT some money (which would now have evaporated), and that not doing so was a foolish misstep?

barfo
 
BLAZER PROPHET said:
Once again the feds prove to be terrible stewards of our money. And we're supposed to trust them with our health care? With our very lives?? And watch millions more become unemployed when the insurance companies are closed down, and the domino effect from that.

Where does it all end? The hundreds of billions being pissed away to unions and executive salaries, the millions of jobs lost and millions more promised to come, the bolstering of the welfare state to enlarge and promulgate it to heights never dreamed of, a nation health care system where people die waiting for services at a cost exponentially higher then what we have now...

It is hard to imagine there is a possible light at the end of this deep and dark tunnel.
Click to expand...

The administration gives money to try and save a lender that is primarily focused on small business and you give him crap for that.

The administration tries to clamp down on executive salaries and he's given crap for that.

to heights never dreamed of
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- you writing for the Oscars this year? National health care is an idea that has been around for more than four decades.

where people die waiting for services at a cost exponentially higher then what we have now.
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Link? Oh that's right, it isn't even in service. Nice drama, though you need to add some dark and gloomy lighting.

So, tell me, given the recent report that says less than 5% of Americans will switch to this new health care plan, why exactly are all of the insurance companies shutting down? Will we be able to grab free chairs when they shutter their doors?
 
barfo said:
So you are saying that the administration should have given CIT some money (which would now have evaporated), and that not doing so was a foolish misstep?

barfo
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No, he's saying that the Obama administration should never have given money to CIT.

Let them all fail! Caesar says die!
 
yakbladder said:
No, he's saying that the Obama administration should never have given money to CIT.

Let them all fail! Caesar says die!
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The Obama administration never did give money to CIT. The Bush administration did.

barfo
 
barfo said:
The Obama administration never did give money to CIT. The Bush administration did.

barfo
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I'm sick of the sudden influx of facts in this thread. We started with facts *shudder* then we finally drifted into the safe comfortable waters of partisanship with convenient glossing over of who was in charge when. Now you bring us back to facts again. I was all blissed out thinking it was the Dems or was it Repubs fault and all we needed was to vote the bums out. Turns out we can't very well vote anyone other then bums out. We have to faces to one set of bums. The sooner people figure this out the better.
 
On topic. The CIT bankruptcy is to middle america what Lehman Brothers was to the international financial community. There will be untold thousands of small and medium size businesses that will be squeezed by CIT's creditors in an attempt to make whole the bond holders and other holders of debt.

Imagine someone demanding you pay off your house in it's entirety in one day, or your credit card bills or student debt. That's what will happen to businesses who are otherwise healthy but are looking to roll over their debt. Don't worry though KFC and Coca Cola are too big to fail. If they are Fortune 500 they will be saved assuming that a bigger competitor isn't a bigger donor. :devilwink:

This isn't a Democratic or Republican problem this is an American problem. The Political and Donor classes have taken this country hostage and they don't mind pretending they are something they aren't. One group pretends to care for one set of poor the other group another set of poor.

Three latin phrases are key to keep in mind when looking at Politics and Economics:

"Cui Bono" = Who Benefits from an action?

?????? = Follow the Money (I couldn't find this one, it's not those exact words but amounts to it)

"Divide et impera"= Divide and Conquer

If you ask who benefits from an action, you follow the money and you consider that some wish to divide and conquer other the world becomes far more clear. Basically apply the same lens to politics and economics in this country as you would to say China and things become quite clear.
 
Idog1976 said:
On topic. The CIT bankruptcy is to middle america what Lehman Brothers was to the international financial community. There will be untold thousands of small and medium size businesses that will be squeezed by CIT's creditors in an attempt to make whole the bond holders and other holders of debt.

Imagine someone demanding you pay off your house in it's entirety in one day, or your credit card bills or student debt. That's what will happen to businesses who are otherwise healthy but are looking to roll over their debt. Don't worry though KFC and Coca Cola are too big to fail. If they are Fortune 500 they will be saved assuming that a bigger competitor isn't a bigger donor. :devilwink:

This isn't a Democratic or Republican problem this is an American problem. The Political and Donor classes have taken this country hostage and they don't mind pretending they are something they aren't. One group pretends to care for one set of poor the other group another set of poor.

Three latin phrases are key to keep in mind when looking at Politics and Economics:

"Cui Bono" = Who Benefits from an action?

?????? = Follow the Money (I couldn't find this one, it's not those exact words but amounts to it)

"Divide et impera"= Divide and Conquer

If you ask who benefits from an action, you follow the money and you consider that some wish to divide and conquer other the world becomes far more clear. Basically apply the same lens to politics and economics in this country as you would to say China and things become quite clear.
Click to expand...

I could be wrong, but when issuing debt, which entity you have to repay doesn't matter. It's the terms of the deal that remain paramount. In other words, as long as these franchisees continue to make their payments, it shouldn't impact them whatsoever. Now refinancing or new financing may be hurt, but that's a different kettle of fish.
 
Shooter said:
You sure are right. The foolish missteps of the Obama administration look graver every day.
Click to expand...

It's not necessarily just his administration, but the feds as a whole. Sometimes I honestly wonder if they care about us at all and just care about their little kingdoms.
 
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