Las Vegas Sun

May 3, 2015

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Letter to the editor:

Moving in an upward direction

The question shouldn’t be: Are we better off today than four years ago? The question should be: Are we continuing on the downhill spiral we were experiencing four years ago?

While job creation under President Barack Obama’s administration is not jumping off the charts, there are more jobs being created than lost. The percentage of unemployed is declining. Imagine what the unemployment rate would have been had Gov. Mitt Romney’s advice to allow GM and Chrysler to go bankrupt been followed.

It is being said, quite often, that government doesn’t create jobs, private industry does. In the case of GM and Chrysler, there was no private industry money coming to save these jobs. Government stepped in and, while not creating jobs, did save them.

While growth is not what we may desire, at least the wagon is going back up the hill. Four years ago it was going downhill at very fast clip.

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  1. Unions killed the steel industry in the late 90's early 2000's when 1/2 of them went thru bankruptcy and almost killed the auto industry later on until the government stepped in. Nice job Pres "O"! Did anyone notice none of the auto makers that are based in right to work states asked for a bailout?

  2. "The question shouldn't be: Are we better off today than four years ago?"

    Absolutely correct. It should be: Are we better off today than twleve years ago? We had a Federal Budget surplus and projected completely eliminating the $4 trillion National Debt before 2010. Makes you wonder where we'd be if it hadn't been for about 500 votes in Florida.

    We'd sure have a lot less to talk about.

  3. You forgot about obama's favorite "government electric" has to go along with government motors. They are the chosen ones that are going keep all of your records and sell you mercury filled light bulbs. I wont buy from ether.

  4. We should be focused on whether the policies of this administration are right for the recovery, and on the robustness of the recovery. By those measures the policies fail and the administration should receive a failing grade.

    You are, as are most liberal supporters of Obama, of the opinion that Romney was for scuttling the auto industry's major players by subjecting them to bankruptcy liquidation. This is not the case. What Romney was for is a reorganization under the bankruptcy laws. Under this arreangement a bankruptcy judge is assigned to supervise the bankruptcy proceedings and ensure that the organization is reinvented in such a way that it is reorganized to compete and survive. There was nothing to prevent the government under these circumstances from furnishing " debtor in possession" financing to help enforce the warranty obligations of GM during the bankruptcy proceedings. Instead Obama handed the company over to the unions using taxpayer dollars. There is a vast difference between the two approaches and the equitable outcomes achieved.

  5. Freeman--great background information. Bob

    Dennis--you don't have a clue about what Romney did at Bain.Your comments reveal your fundamental lack of a grasp of what companies like Bain do.

  6. Houstonjac - "You are, as are most liberal supporters of Obama, of the opinion that Romney was for scuttling the auto industry's major players by subjecting them to bankruptcy liquidation."

    Another case of pretzel logic. You left out the part where no one in the private sector, absolutely no one, was willing to give the auto industry loans to reorganize. That is why Obama bailed the industry out with federal funding, which saved Ford as well. Ford would have taken a huge hit if their suppliers went under with GMAC and Chrysler.

    I wonder? Do any of you nay sayers know Romney used federal funds to save the Olympics?

  7. Once again, we see just how ignorant about economics and business those on the left are. Neither GM nor Chrysler would have gone out of business if Osama Obama didn't play the "crony capitalism" card and "save" them for the benefit of the unions. Bankruptcy would have made both leaner & stronger and they would still be cranking out their cars & trucks. It's pretty obvious Peele and his fellow traveler, the guy from Crook County, IL, know nada about investing money in a business and taking the risks necessary to become successful. It would be swell if Crook County. IL, guy would put some effort into cleaning up the corruption, graft and cronyism Crook County, IL, is infamous for.

  8. If you consider welfare, unemployment, and all the liberal perks cherish, then yes, America is heading the right direction.

    America though isn't heading in the right direction from my point of view along with millions upon millions of other people who don't rely on the liberal system nor do we want the system to control our destiny.

  9. RefNV - "If Americans prefer to have 12 to 14 million jobless Americans be permanent then vote Obama like Terry Peele the writer suggests."

    You like posting numbers, how many of those jobs were out sourced to China and India? I made a service call to a local phone company and ended up speaking to someone in Colombia, South America.

  10. RefNV - "Face the facts, Obama hasn't turned around the economy like Reagan did."

    Again, Reagan never faced the problems Obama had to deal with. Not even close. Wall St. and banking, although screwed up, wasn't nearly as economically devastating as Sept. of 2008. Again I'll point out that Reagan and Bush the Elder raised taxes several times. Ignoring those facts doesn't rewrite the reality of history.

    The question should be if joblessness is such a problem why aren't Americans taking the 3.7 million jobs that are out there. Last week's job listings report reflects the most listings in many years.

    If people took those jobs the unemployment rate would be back down to about 5%. This is roughly the post-World War II average.

  12. The recovery has been slow. But, there have been 47 recessions in this country. Nearly every president has gotten stuck with one. This last recession was the only Great Recession in the history of the nation. You only get a calamity like this once or twice every hundred years and it is difficult to claw your way out of it. That combined with 10,000 to 20,000 people a day retiring and intense foreign competition makes for a set of very complicated circumstances.

  13. Not only is GM a success story it took the number one spot back last year from Toyota. Hundreds of US companies have a massive presence in China. They have a huge middle class and are becoming consumers of EVERYTHING.
    My wife's BMW X5M was put together in South Carolina. Whats the point??? You go where the customers are. Buick is one of the most sought after brands in China. Watch the last couple minutes of the video.

  14. Managed bankruptcy would have been fine. Many ways to skin a cat.
    The folks at fox (Cavuto Dobbs) wanted to let the entire company collapse. Even Mulally from Ford said that would have been a catastrophe. GM buys billions of parts a year from domestic suppliers. The entire OEM parts business would have collapsed according to Mulally.
    Rusty...had these industries gone bye bye the social welfare cost of having vast numbers of dislodged auto workers on unemployment and medicaid would have been enormous. I left Detroit and moved to Santa Monica in 1961. Jobs lost in Michigan and Ohio have never been recovered.
    Its manufacturing and construction that are the biggest unemployment drivers according to the Dunn&Bradstreet monthly business trends reports. When we lose these jobs they don't come back.

    Brad....the entire $516 trillion derivatives market is a sham. I was one of larger share holders in the Schwab SWYSX fund. They had $416 million of these instruments in the portfolio and didn't even know it.
    40% of the portfolio.
    There are countless commodity funds, long/short funds, leveraged funds etc...very few make money but generate huge fees and commissions for the industry.
    During the 87 crash computers took the markets down 30% in a few days, a fortune was lost, numerous suicides, and to this day we don't have a clue as to what caused it.

    Jobs have been created every month for a couple of years. The labor force participation rates have been dropping since about 1995 because of the 50 million plus that have retired.
    That is the fact.
    Read my 1028 post. There are millions of job listings. NOW

  17. BChap---You ask, Who is to blame for the $2B loss by JPMorgan?

    "Big Banking", with, no doubt, help from their Republican friends, did everything possible to narrow/limit regulations concerning synthetic credit securities. The resultant fiasco can hardly be attributed to a failure by President Obama.

    JPMorgan's CEO, Jamie Dimon (in the article you've provided a link to): "In hindsight, the new strategy was flawed, complex, poorly reviewed, poorly executed and poorly monitored." The resultant fiasco can hardly be attributed to a failure by President Obama.

    Today, news reports mention that a couple of JPMorgan officers will be/have been forced out and that some are calling for Dimon to step down.

    So, who do you think is to blame for the $2b (that we know of) loss?

  18. my 104 post. Investors don't have a clue as to what is going on. The big banks and brokerages are lost.
    The guys that invented the instruments that are floating around the world admitted they made a huge error in risk computation. It's a 500 trillion disaster that will cause blow ups for at least 30 years.
    Financial firms are bogged down with leverage and they don't have a clue what to do about it.

  19. Wait until you see what the debt is going to be when 30 million more boomers retire and medical doubles a couple more times. Today's debt will look like mattress money.
    It's all about aging America and high health costs.

  20. IMO we are better off than we were 4 years ago, but certainly NOT from either side of the political spectrum, as both are equally greedy AND corrupt (Big Money means BIG $$$) in perks and reelection dollars to the incumbents. We have turned it around because so called Big Business finally found the economic conditions were favorable to start back up operations....and specifically manufacturing, as THAT has been the backbone of the American economy. The experts knew the DIP was coming, and did not want market conditions to change and impact their investment portfolios (until they dumped them for a tidy sum), so they continued to paint a rosy picture of a manure field.

    Even in my own little professional world (here in Nevada), hiring has begun to increase and more mid-level management positions are becoming available. The companies were so quick to eject the managing talent they had acquired (highest wage), they now find a need to fix the mess that a lack of mid-level management has allowed to happen, and to begin to mentor the junior staff for continued professional growth and development. Yea, it is getting better out there, but we still have a LONG way to go before it gets to what I would classify as GOOD.