Hey, let’s give Congress an economy to run: From the Foundry, ‘Huffing And Puffing’ Till We Blow Business Down
The Wall Street Journal reported on Wednesday:
“… FedEx may cancel plans to buy as many as 30 new Boeing planes should Congress pass a bill that would remove truck drivers, couriers and other employees at FedEx’s Express unit from the jurisdiction of the federal Railway Labor Act of 1926, the law which today also governs labor organizing at U.S. airlines…
“It is exceedingly unlikely that we would purchase those airplanes” should Congress change the law, said FedEx spokesman Maury Lane. The legislation could cripple the company and eliminate the need for the extra planes, Mr. Lane said.
Read that again. “The legislation could cripple the company and eliminate the need for the extra planes.” Boeing, and manufacturers of major products like it, drive the American economy to a great degree.
Much more on the business-friendly Congress at the Foundry link.
Look at the great job they’re doing with organizations they already regulate: Freddie Mac’s Duel With Regulator: Does It Report Government’s Role in Its Losses?
Half a year after the government seized Freddie Mac, confusion about its role is stoking tensions between the company and its regulator, including a dispute this month over how much the mortgage giant should reveal to private investors about its financial troubles.
Federal officials who took over Freddie Mac stopped short of nationalizing the company, leaving it partly in private hands. This means Freddie still has to answer to investors and file financial disclosures.
But when Freddie Mac’s executives concluded a few weeks ago that they had to disclose that the government’s management of the McLean company was undermining its profitability and would cost it tens of billions of dollars, the firm’s regulator urged it not to do so, according to several sources familiar with the matter.
The regulator eventually backed down. Why the reluctance to disclose information?
The housing agency asked that the cost of the program be withheld and that the firm soften language describing how government management was undercutting profitability, according to sources.
People familiar with the dispute offered different views about why the regulator sought to prevent the disclosures. One source said the regulatory officials didn’t want to make it seem like government actions were causing big losses at the company and would require more taxpayer dollars. Another person said the officials thought that accounting rules would soon change, making the disclosure unnecessary.
How is government management undercutting profitability?
The main way that the government is c ausing[sic] Freddie to incur losses is by requiring it to play a central role in the Obama administration’s Homeowner Affordable and Stability Plan, a $75 billion effort launched this month. The program aims to restructure mortgages that struggling borrowers cannot afford, bolster the sagging housing market and bring down interest rates on home loans.
So the government is screwing up and the regulator doesn’t want us to know. It’s all about the politics, not the health and stability of the corporation.
So let’s put Timothy Geithner in charge of the entire financial industry.
Nothing could possibly go wrong with that.