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      Chrysler repays $7.5 billion to U.S. government

      May 24, 2011 /

      With the announcement today that Chrysler will repay its $7.5 billion bailout loan it received from the U.S. government, the auto bailout has reached another milestone.

      To get out of its credit fix, Chrysler has lined up loans of $4.3 billion and will issue $3.2 billion in bonds. Italy’s Fiat, which controls Chrysler, will kick in $1.3 billion and get 46% ownership.

      Private money has stepped up, thus validating the approach taken by the Obama administration. It’s also a significant victory for all the employees at Chrysler who worked through this difficult period and came out with new versions of vehicles like the Dodge Charger pictured above and the new Chrysler 200.

      General Business, Marketing

      Has Donald Trump destroyed his brand?

      May 16, 2011 /

      Donald Trump has put his brand on all sorts of products as he leverages his success over the years in real estate along with the his status as a reality TV celebrity. Yet he turned many people off with his bizarre and mean-spirited attacks on President Obama. He questioned Obama’s birth certificate, and then moved on to questioning Obama’s qualifications to get into Harvard Law School.

      Basically, he came across as a jerk. Then, Obama smacked him down by releasing his birth certificate, mocking Trump in front of the Washington press corps and then interrupting “Celebrity Apprentice” with the news that Navy SEALS had killed Osama bin Laden.

      Meanwhile, the press has started to dig into Trump’s business dealings, shining a light on some of Trump’s less impressive ventures. Trump is getting sued by some who purchased condos thinking they were Trump projects, only to find later when the project folded that Trump was just licensing his name.

      These stories are now all over the media. So it begs the question – did Trump screw up with his high-profile, mean-spirited attacks on the President? Is this going to hurt his brand? I always thought he was a clown, but he didn’t bother me. Now, I have no interest in supporting anything he’s associated with. Others I’ve spoken to feel the same way.

      It will be interesting to see how this plays out . . .

      Branding, General Business, Marketing, Real Estate

      A double-dip recession in the housing market?

      May 15, 2011 /

      Things keep getting worse in the housing market as foreclosures glut the market and depress prices. It’s so bad that some are calling it a double-dip recession in the housing market.

      If the numbers showing housing prices slumming it around their spring 2009 lows aren’t troubling enough, then the surrounding context certainly is. The federal government spent trillions of dollars lifting housing — the recession’s great instigator — out of its trough. And now that home prices have collapsed again, the feds have far fewer tools available to prop them up again.

      This does not bode well for the entire economy, but it just shows how long it’s going to take to work through all the excesses of the mortgage bubble. In Las Vegas, the foreclosures are now spreading to upscale homes as well, giving high rollers the opportunity to come in and scoop up real estate gems on the cheap.

      Fortunately, there is one silver lining, as young people now actually have hope of getting an affordable home if they have decent income. With all the bad news out there for young people in the job market, at least there’s some good news. Unfortunately, many people are paying the price for the excesses of the past decade.

      Economy, Real Estate

      US Chamber of Commerce losing patience with Republicans

      May 13, 2011 /
      U.S. House of Representatives Speaker John Boehner speaks at the Economic Club of New York May 9, 2011. Boehner, the top Republican in the U.S. Congress, on Monday laid down a tough new yardstick in talks over the nation’s debt, telling Wall Street that spending cuts must exceed any boost to the U.S. borrowing limit. REUTERS/Shannon Stapleton (UNITED STATES – Tags: BUSINESS POLITICS)

      The Chamber of Commerce supported Republicans in 2010 with a ton of financial support, assuming that the GOP would be pro-business. Instead, the House Republicans and most Republican Senators are more than happy to hold the American economy hostage to their ideological demands.

      The Chamber of Commerce sent a letter to Congress on Friday urging legislators to quickly raise the debt ceiling, while also warning of catastrophe should the government continue spending at its current rate.

      The Chamber, which represents business interests, helped elect many of the Republican members of Congress who are now threatening to vote against raising the debt ceiling. Republicans are demanding major cuts to government spending and long-term programs in return for their support.

      The Chamber understands the consequences of messing around with the full faith and credit of the United States, while the Tea Party crowd seems happy to let the whole system collapse just to make a point. Remember the TARP vote and how many Republicans were willing to let all the banks collapse? Nobody should be surprised.

      Economy, Finance, General Business, Markets

      GM plans huge investment in U.S. auto plants

      May 12, 2011 /

      The U.S. auto business continues its spectacular rebound from its near-death experience. Sure, there’s a long way to go, but this is excellent news and shows a commitment to invest in America.

      Growing demand for General Motors Co. cars and trucks is pushing the Detroit automaker to add thousands of jobs and spend $2 billion to upgrade plants across the country.

      GM CEO Daniel Akerson confirmed Tuesday that the company will create or preserve more than 4,000 jobs in eight states by investing heavily in 17 facilities nationwide. So far, the company has only announced millions of dollars in upgrades at plants in Toledo and Bowling Green, Ky. It is expected to release specifics about other plants during the next few months.

      While much of the planned spending hinges on winning state and local tax incentives, the company says it needs to boost production and resume hiring to meet rising consumer demand.

      The U.S. economy and job market needs a boost like this. Hopefully this will continue.

      Economy, General Business

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