March 28, 2024, 04:05:59 AM *
Welcome, Guest. Please login or register.

Login with username, password and session length
News: NEW CHILD BOARD CREATED IN THE POLITICAL SECTION FOR THE 2016 ELECTION
 
   Home   Help Login Register  
Pages: 1   Go Down
  Print  
Author Topic: Wall Street, Main Street, Goldman, and 10,000 Small Businesses  (Read 1732 times)
0 Members and 1 Guest are viewing this topic.
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« on: November 18, 2009, 05:06:34 PM »

I was listening to the talking heads on tv this morning.  Wall Street, Main Street, Goldman, & 10,000 Small Businesses came up several times.

One woman stated something like 'Wall Street and Main Street are the same, I don't understand why the disconnect in some peoples mind.  Most people must have some of these banks in their 401ks...'  ‘They should be happy the banks are doing so well.  Wall Street is Main Street…’ - my paraphrases. 

Where does this woman live?  How many 401ks are getting billions in bonuses this year?  How many jobs is Wall Street creating? 

How many on Main Street get to use taxpayer money at little or no cost?  How many have direct access to the Federal Reserve, FDIC, Congress, Treasury, IRS, and White House?  A job rotation of ‘talent’?

How much taxpayer money does a bank like Goldman have access to?  How much does Goldman pay in taxes?  For domestic?  For their international investing?

Is Goldman the recipient of these changes in the House Healthcare Bill?

From page 345 -

Quote
20 SEC. 554. DELAY IN APPLICATION OF WORLDWIDE ALLOCA
21 TION OF INTEREST.
22 (a) IN GENERAL. Paragraphs (5)(D) and (6) of sec
23 tion 864(f) of the Internal Revenue Code of 1986 are each
24 amended by striking   December 31, 2010 and inserting
25 December 31, 2019.

Something like this was in HR3200.  I couldn’t figure out want it applied to.

I looked up the Internal Revenue Code of 1986 on the web and found it here –

http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._864._Definitions_and_special_rules

Quote
(5) Election to expand financial institution group of
        worldwide group.--
          (A) In general.--If a worldwide affiliated group
                elects the application of this subsection, all financial
                corporations which--
             (i) are members of such worldwide affiliated group, but
             (ii) are not corporations described in paragraph (4)(B),
                shall be treated as described in paragraph (4)(B) for
                purposes of applying paragraph
                (4)(A). <<NOTE: Applicability.>> This subsection (other
                than this paragraph) shall apply to any such group in
                the same manner as this subsection (other than this
                paragraph) applies to the pre-election worldwide
                affiliated group of which such group is a part.
          (B) Financial corporation.--For purposes of this
              paragraph, the term `financial corporation' means any
              corporation if at least 80 percent of its gross income
              is income described in section 904(d)(2)(D)(ii) and the
              regulations thereunder which is derived from
              transactions with persons who are not related (within
              the meaning of section 267(b) or 707(b)(1)) to the
              corporation. For purposes of the preceding sentence,
              there shall be disregarded any item of income or gain
              from a transaction or series of transactions a principal
              purpose of which is the qualification of any corporation
              as a financial corporation.
          (C) Anti-abuse rules.--In the case of a
              corporation which is a member of an electing financial
              institution group, to the extent that such corporation--
             (i) distributes dividends or makes other
                 distributions with respect to its stock after the
                 date of the enactment of this paragraph to any
                 member of the pre-election worldwide affiliated
                 group (other than to a member of the electing
                 financial institution group) in excess of the
                 greater of--
                (I) its average annual dividend
                    (expressed as a percentage of current
                    earnings and profits) during the 5-
                    taxable-year period ending with the
                    taxable year preceding the taxable year,
                    or
                (II) 25 percent of its average
                    annual earnings and profits for such 5-
                    taxable-year period, or
             (ii) deals with any person in any manner not
                 clearly reflecting the income of the corporation
                 (as determined under principles similar to the
                 principles of section 482),
              an amount of indebtedness of the electing financial
              institution group equal to the excess distribution or
              the understatement or overstatement of income, as the
              case may be, shall be recharacterized (for the taxable
              year and subsequent taxable years) for purposes of this
              paragraph as indebtedness of the worldwide affiliated
              group (excluding the electing financial institution
              group). If a corporation has not been in existence for 5
              taxable years, this subparagraph shall be applied with
              respect to the period it was in existence.

          (D) Election.--An election under this paragraph
              with respect to any financial institution group may be
              made only by the common parent of the pre-election
              worldwide affiliated group and may be made only for the
              first taxable year beginning after December 31, 2008, in
              which such affiliated group includes 1 or more financial
              corporations. Such an
              election, <<NOTE: Applicability.>> once made, shall
              apply to all financial corporations which are members of
              the electing financial institution group for such
              taxable year and all subsequent years unless revoked
              with the consent of the Secretary.
          (E) Definitions relating to groups.--For purposes
              of this paragraph--
             (i) Pre-election worldwide affiliated
                 group.--The term `pre-election worldwide
                 affiliated group' means, with respect to a
                 corporation, the worldwide affiliated group of
                 which such corporation would
                 (but for an election under this paragraph) be a
                 member for purposes of applying paragraph (1).
             (ii) Electing financial institution group.--
                 The term `electing financial institution group'
                 means the group of corporations to which this
                 subsection applies separately by reason of the
                 application of paragraph (4)(A) and which includes
                 financial corporations by reason of an election
                 under subparagraph (A).
          (F) Regulations.--The Secretary shall prescribe
              such regulations as may be appropriate to carry out this
              subsection, including regulations--
             (i) providing for the direct allocation of
                 interest expense in other circumstances where such
                 allocation would be appropriate to carry out the
                 purposes of this subsection,
             (ii) preventing assets or interest expense
                 from being taken into account more than once, and
             (iii) dealing with changes in members of any
                 group (through acquisitions or otherwise) treated
                 under this paragraph as an affiliated group for
                 purposes of this subsection.
          (6) Election.--An election to have this subsection apply
        with respect to any worldwide affiliated group may be made only
        by the common parent of the domestic affiliated group referred
        to in paragraph (1)(C) and may be made only for the first
        taxable year beginning after December 31, 2008, in which a
        worldwide affiliated group exists which includes such affiliated
        group and at least 1 <<NOTE: Applicability.>> foreign
        corporation. Such an election, once made, shall apply to such
        common parent and all other corporations which are members of
        such worldwide affiliated group for such taxable year and all
        subsequent years unless revoked with the consent of the
        Secretary.

How much does Goldman pay for access to all the money they use to make money?  To make so much money, they can give away billions?  Anyone’s 401k going up billions because of Goldman?

How much does Goldman pay in taxes for all these domestic and foreign investments?

There seems to be an inverse relationship between the success of Wall Street and the success of Main Street.  For some reason, generations on Main Street will be struggling for breath under a tsunami of debt being created…debt and money that benefits Wall Street.

How many millions of Americans have no financial security for retirement due to the debt, deficits, and bailouts in Washington and Main Street?  Does it matter if a 401k is worth $1 million if a gallon of gas or loaf of bread costs $1,000 next month?

I would imagine the Wall Street bonuses will be paid in GOLD.

My opinions.
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #1 on: November 18, 2009, 05:34:40 PM »

The TV talking head also went on gushing about Goldman’s stepping up to the plate to help small business.  WOW I though.  Only $500 million?  Will all the applications be returned and approved before anyone on Main Street has a chance to apply?  Maybe the money will go to groups like ACORN?

Quote
Goldman Sachs, whose chief executive has apologised for the bank's role in the financial crisis, has teamed up with billionaire investor Warren Buffett to help small US businesses.

GIVE BACK THE AIG PASS THROUGH MONEY.

Quote
Goldman's "10,000 Small Businesses" initiative comes as Bloomberg reported that Lloyd Blankein, the chief executive, told a conference in New York: “We participated in things that were clearly wrong and have reason to regret. We apologize.”

The $500m investment includes a $200m contribution to community colleges, universities and other institutions to give grants to small business owners to further their education.
It will funnel $300m through community development financial institutions to increase lending and technical assistance available to small businesses.

Let see…education…no loans to small business there – any consumer or small business exposure?  I don’t think so.

Increasing lending and technical assistance available…any seed money?  Any funds to help these businesses through the lean times?

Grants...who decides who and how much? 

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6594680/Goldman-Sachs-teams-up-with-Warren-Buffett-to-help-US-small-businesses.html

How much lending of ‘capital’ will really occur?  How much RISK to Goldman?

How much will Goldman get in tax credits/benefits/perks?

A smoke screen?

How much did small business lose with the loss of CIT Group Inc.?

How much did Goldman make when CIT filed bankruptcy?

Quote
In exchange, Goldman Sachs received $285 million in termination fees, CIT said Oct. 30 in a filing with the U.S. Securities and Exchange Commission. Under the terms of the two companies’ original agreement, Goldman Sachs would have been due a $1 billion termination payment to close the credit line after a CIT bankruptcy.


http://www.bloomberg.com/apps/news?pid=20601087&sid=awJj2p2GTk.I&pos=1

Who will be affected by CIT?

Quote
CIT provides day-to-day financing for thousands of small- to medium-sized businesses, including 2,000 vendors that supply 300,000 retail stores, according to the Wall Street Journal. It is one of the largest lenders to the retail industry, serving 2,000 vendors that supply merchandise to 300,000 stores.

CIT executives said that the firm’s customers will face only minimal disruptions to their operations, but other commentators painted a less favorable picture. "Capital is much less fluid in these smaller markets than in the bigger ones. This would be a severe disruption for those factories or retailers out there who need capital," Rick Patterson, a partner with private equity firm Spire Capital, told the New York Times.

…The Financial Times observed that the bankruptcy will cause disruptions for "legions of small businesses already facing sharp reductions in their access to credit." These disruptions will likely lead to more bankruptcies and layoffs.

I wonder how much Goldman will help all these people?  Maybe they can get one of those grants/loans from the community organizations…

What about taxpayer investment in CIT?  How much will taxpayers see returned to the TARP?

Quote
The bankruptcy will largely preserve the value of CIT’s bonds, but will wipe out all government holdings. Last December, the company received $2.33 billion in the form of government preferred stock purchases as part of the Troubled Asset Relief Program (TARP).

Is there upside for anyone?  A gold lining to this cloud?

Quote
The decision to let CIT fall will help the bigger banks, which have been the major beneficiaries of the consolidation of the banking system under the selective "too-big-to-fail" policy. As the Wall Street Journal pointed out, the recipients of CIT's lost business will include JPMorgan, Wells Fargo and Goldman Sachs.

http://www.wsws.org/articles/2009/nov2009/citb-n03.shtml

Another success story for Goldman Sachs!!!

My opinions.

(I can't see Goldman picking up the pieces for those left behind by CIT.  I don't see Goldman taking any risk that involves those on Main Street=no consumer or small business exposure.  Sometimes, I don't think Goldman needed money at all...Was it a clever ruse?  A company that gives away billions in bonuses, do they really need cheap taxpayer money to play with?  Why not dig deep in their own pockets?)
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #2 on: November 18, 2009, 05:37:56 PM »

In all these bailouts, where is the financial information on all TARP recipients, past and present, regarding financial balance sheets?  How much did AIG really lose?  Goldman Sachs...did they really have a problem?

Where did all the money go?  Did it really disappear overnight?  Didn't anyone notice that things were going bad for years?  Months?

Anyone checking the financial statements?

How could so many people miss the tsunami of debt?

Something just doesn't add up.

What about the robust audit of the Federal Reserve?  Shine some light on all the wheeling and dealing among the elite?
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
Edward
Monkey Junky
***
Offline Offline

Posts: 3816



« Reply #3 on: November 18, 2009, 05:45:30 PM »

A little reality story from the front lines and in the trenches..
My little company has been in business since 1966.. I have only owed it since 1975..
Never the less it is experience..each and every day.

2009
WallStreet and the Government are out to strip every inch of savings out of small business.
Small business never really made that much in the first place.
With business doing well over the last 10 years..The cost of overhead from rent to utilities have been keeping up with the gross sales increases.. and we ended up at 2008 overhead ridden but business was making sales that met the over head.. all was good..
WE WERE IN BALANCE.

Then it happend with Little Bush in power..
1. Raised the interest rates on home and commercial loans..
2. Raised the price of fuel to near 5 dollars a gallon.. crippled the nation..
Nation drops into recessing sales. sales drop nearly in half.. People lose there homes and commercial real estate.
Then they raised the cost of liability insurance to small business. Big Business does not pay any as they are self insured.
Raised the cost of workers comp insurance.
Raised the intrest rates on lines of credit and cut lines of credit..
Raised the interst rates in credit cards..27 percent on some cards..

With no choice left Cost cutting by hook or crook. Layoffs happen..

Now we are just looking for survival.
Many companies already closed or near bankruptcy except for the ones owned by WallStreet and the other ones that the White house with this new president supports.. like green tech and High Tech. as well as medical.
The rest of us are screwed blued and tattooed... Many small company owners have lost everything they ever saved and many more are in debt now when they have never been before.

There is a huge difference between MainStreet and WallStreet.
In the end THEY want all small businesses to be Corp Franchise, then everyone WILL be connected to WallStreet where the powers that be will still make sure that the franchise owners remain little people and broke forever..
jmho
Logged
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« Reply #4 on: November 18, 2009, 06:07:24 PM »

A little reality story from the front lines and in the trenches..
My little company has been in business since 1966.. I have only owed it since 1975..
Never the less it is experience..each and every day.

2009
WallStreet and the Government are out to strip every inch of savings out of small business.
Small business never really made that much in the first place.
With business doing well over the last 10 years..The cost of overhead from rent to utilities have been keeping up with the gross sales increases.. and we ended up at 2008 overhead ridden but business was making sales that met the over head.. all was good..
WE WERE IN BALANCE.

Then it happend with Little Bush in power..
1. Raised the interest rates on home and commercial loans..
2. Raised the price of fuel to near 5 dollars a gallon.. crippled the nation..
Nation drops into recessing sales. sales drop nearly in half.. People lose there homes and commercial real estate.
Then they raised the cost of liability insurance to small business. Big Business does not pay any as they are self insured.
Raised the cost of workers comp insurance.
Raised the intrest rates on lines of credit and cut lines of credit..
Raised the interst rates in credit cards..27 percent on some cards..

With no choice left Cost cutting by hook or crook. Layoffs happen..

Now we are just looking for survival.
Many companies already closed or near bankruptcy except for the ones owned by WallStreet and the other ones that the White house with this new president supports.. like green tech and High Tech. as well as medical.
The rest of us are screwed blued and tattooed... Many small company owners have lost everything they ever saved and many more are in debt now when they have never been before.

There is a huge difference between MainStreet and WallStreet.
In the end THEY want all small businesses to be Corp Franchise, then everyone WILL be connected to WallStreet where the powers that be will still make sure that the franchise owners remain little people and broke forever..
jmho

There is also the $14 Trillion in 401k, IRA, and other retirement vehicles that are in line to be wiped out by Obamas spending and borrowing.

No hope for Main Street due to Obama.
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
Pages: 1   Go Up
  Print  
 
Jump to:  

Use of this web site in any manner signifies unconditional acceptance, without exception, of our terms of use.
Powered by SMF 1.1.13 | SMF © 2006-2011, Simple Machines LLC
 
Page created in 4.839 seconds with 20 queries.