Another Financial Tid-Bit

[aplusmnt]

Here is another link to Cody Willard Blog

CIT paid its preferred shareholders more than $50MM STRAIGHT FROM THE PROCEEDS OF TARP before the company suspended its preferred share dividends six and nine months AFTER its bailout.

CIT paid its common shareholders more than $6MM STRAIGHT FROM THE PROCEEDS OF TARP before the company suspended its common stock dividends four months AFTER its bailout.

http://cody.blogs.foxbusiness.com/2009/ ... about-cit/

Here is a link to the actual Dividend payment records of Cit best I can see they paid out there last Dividends on Preferred Stock on 6-15-09. The last time they paid on common shares was 2-27-09. I believe both them are after receiving Tarp money.

http://phx.corporate-ir.net/phoenix.zht ... -dividends


It is outrageous that they take our Tax dollars then just turn around and pay it to their Preferred stock holders. That is flat out robbery, if they were making a profit and had money to pay dividends then they would not have needed a bail out!

http://phx.corporate-ir.net/phoenix.zht ... -dividends

 

[aplusmnt]

I think that is proof enough. Were there any other TARP recipients distributing dividends to shareholders before the TARP funds were paid back?

Not sure but my instincts would have me put money on yes!

 

[HerefordSire]

I think that is proof enough. Were there any other TARP recipients distributing dividends to shareholders before the TARP funds were paid back?

Not sure but my instincts would have me put money on yes!

I would say that is certainly grounds for a lawsuit, especially since they recently received funding and are still alive. The issue is, even if someone won a lawsuit, the attorneys will be the ones winning the most since with the least risk since their fees come out first (usually 1/3). The court system is in favor of the big guys and attorneys.

 

[HerefordSire]

This was before the bankruptcy...

 

[backhoeboogie]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

 

[Brandonm22]

This was before the bankruptcy...

Jim Cramer is living off his well earned reputation, but is either not actually working or whoever used to feed him info isn't working for him anymore. In ~March, he listed National Coal (they have a mine near us) as one of the top ten stocks to own. In June they defaulted on a $60 million note. In July their whole ALabama Division was foreclosed on! GREAT investment there!

 

[HerefordSire]

This was before the bankruptcy...

Jim Cramer is living off his well earned reputation, but is either not actually working or whoever used to feed him info isn't working for him anymore. In ~March, he listed National Coal (they have a mine near us) as one of the top ten stocks to own. In June they defaulted on a $60 million note. In July their whole ALabama Division was foreclosed on! GREAT investment there!

He is on CNBC every work week plus he runs a charitable trust.

 

[Brandonm22]

He is on CNBC every work week plus he runs a charitable trust.

I am aware of his tv job; but I am also aware that his "advice" of the past two years has been off the mark as often as not. Given his stellar past performance versus his recent performance something is missing.

 

[1982vett]

He is on CNBC every work week plus he runs a charitable trust.

I am aware of his tv job; but I am also aware that his "advice" of the past two years has been off the mark as often as not. Given his stellar past performance versus his recent performance something is missing.

Probably has a lot to do with needing to find a new stock to recommend to his viewers every day.

Incidentally, HS, the story you referenced was posted September 29th. The roulette wheel has been spun many times since then. Here is the balance of the story:

Because no one forced CIT into bankruptcy, it can live to play again, and when I read in the New York Post that Paulson owns CIT debt, I realized that he's powerful enough to save this company, particularly because he is one of the investors in IndyMac and knows his way around the bottom of the debt barrel.

These two stocks represent lottery tickets that are no longer rip-ups because they have made it out of the "critical care" stage and are recovering.

I would buy them both.

At the time of publication, Cramer had no positions in the stocks mentioned.



He has made some good picks and has picked some real duds. The trick is to gain more on the good picks than you lose on the bombs. Oh, and like passing thru some "small towns", you know, the ones you miss if you blink... Cramer can change his mind and recommendation just as fast.

 

[aplusmnt]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

And then when you see things like the Unions getting put ahead of the Bond holders during a bankruptcy like in GM case. Why would anyone have faith anymore in putting stock into companies! The whole system is upside down now!

 

[1982vett]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

And then when you see things like the Unions getting put ahead of the Bond holders during a bankruptcy like in GM case. Why would anyone have faith anymore in putting stock into companies! The whole system is upside down now!

It is very hard sometimes to put the kind of faith in a company and buy its stock. But, just as with the US Government, one has to exercise his vote when elections roll around. The shareholder does not have to vote with the Board of Directors. The shareholder does not have to vote for the immense stock option packages the Board of Directors grant. Even the bait they put out as ESOP plans would, in many instances, work better as wage increases for the workers rather than "an opportunity for employees" to own a part of the company. What a shareholder needs to understand (just as a shareholder of the United States) is he must exercise his vote to be heard at all. He must also understand that exercising his vote really won't mean a whole lot up against the inner circle of institutional shareholders (House and Senate) and the "good ole boy network".

Thus, a "buy and hold investor" is pretty much a doormat for the rest of the world. Hereforsire just might have the right strategy. You can't afford to "own" them, you need to "rent" them which makes the Stock Markets pretty much nothing more than a huge casino... without the pretty girls bringing you free drinks.

:idea: Never been to Vegas and this thought just hit me. Do they cater to the women and have stud muffins bringing the ladies free drinks?

 

[aplusmnt]

:idea: Never been to Vegas and this thought just hit me. Do they cater to the women and have stud muffins bringing the ladies free drinks?

Yea I think Crowder goes out there during the slow time in Winter months and works for them :lol:

 

[HerefordSire]

:idea: Never been to Vegas and this thought just hit me. Do they cater to the women and have stud muffins bringing the ladies free drinks?

Yea I think Crowder goes out there during the slow time in Winter months and works for them :lol:

No!

But, if you are a single lonely bachelor like me, the ladies don't mind if I am not working because the work gets in the way of things.


:mrgreen: :mrgreen: :mrgreen:

 

[TexasBred]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

And then when you see things like the Unions getting put ahead of the Bond holders during a bankruptcy like in GM case. Why would anyone have faith anymore in putting stock into companies! The whole system is upside down now!

Yep...that's the deal the "new administration" made. Stocks, bonds and contracts mean absolutely nothing to them. But it's the way the new Pres. rewards the union backing.

 

[aplusmnt]

Not something for an investor to invest in. Unrestricted bail out money goes for CEO bonus packages and nothing for the investors.

Investor confidence is on rock bottom.

Consumer confidence is just a threshold above investor confidence with people forced to buy food, gasoline, and every day life comodities. If not, things would be much worse.

Many are buying depressed raw land. They are buying for the 15 to 20 year haul. That takes out opportunities for stock investment if there is a rebound and if the market becomes sound again. Hence, these long term purchases are going to hurt something that is already hurting.

And then when you see things like the Unions getting put ahead of the Bond holders during a bankruptcy like in GM case. Why would anyone have faith anymore in putting stock into companies! The whole system is upside down now!

Yep...that's the deal the "new administration" made. Stocks, bonds and contracts mean absolutely nothing to them. But it's the way the new Pres. rewards the union backing.

Looking like they will reward them some more along with Gov employees with not making the pay taxes on their Health Insurance like they want to do to others.