Wealthy Corporations Beg For Bailout After Poorly Managing Funds


Many of the companies lining up for a handout
from the federal government aren’t victims of coronavirus at all. It’s their own fault. It’s poor judgment. Joining me to talk about that is Farron Cousins,
we’re going to have a discussion about this. People always call and say, Pap, you don’t
let the guest answer a question. It’s a discussion for those who are watching. Okay, so, so here, this, this, this discussion
really need to center around the idea that you have corporations that knew better. Held back no cash, held back, had no plan
for the future, and instead took all of their money, everything they got in tax benefits,
everything that they got from the government and did stock buy backs. Take it from there. Right. You know, we’ve spent the last couple of decades
giving corporations these massive tax breaks. They’ve been making money hand over fist. The big, big banks have pulled in more money
than ever. Airlines are doing great. But instead of putting that money aside, which
is, you know, kitchen table economics, always make sure you’ve got enough money for a couple
of rough months. These corporations decided to go ahead and
essentially artificially inflate their worth by buying back their own stocks, which puts
more money into their pockets and it ties their money up in the stock so they can’t
spend it on other things. They can’t spend it on, you know, expanding. They can’t spend it on worker raises. It’s all tied up in this, you know, artificial
stock that they’ve created. So when the market tanks, they lose all their
money, they lose all their value, and that’s the exact opposite of what the stock market
was actually designed to do. The stock market was invented so that corporations
could get money. Could get this capital through an initial
public offering, and allow the risk of the company to be taken on by average people out
there. The corporation didn’t risk losing money. Yeah. But they, they broke that rule. It, it enrages me. Delta airlines. Okay. Delta airlines, they had one month, one month
setback for this kind of a problem. They’re raking in more money than they can
spend. Their, their credit line, you know, they haven’t
even really called on their credit. The credit line is not supposed to be used
for this kind of rainy day problem. The credit line is, is used for things like
expanding business, those types of things. But instead what they did as you said, they,
they took the money that they had, they were having great years and they were just greed,
piggish, buying back stock, trying to prop up their company and make it look bigger than
it actually was. So now we really see what, what are the smart
companies? You know, you take, you take Microsoft, you
take any of the tech companies, they have more cash than they know what to do with. But these folks don’t. How about McDonald’s? These, look, these are people that they employ
hundreds of thousands of people. Now they, they had a revenue of $21 million,
$21 billion, excuse me, $21 billion and they have cash on hand right now to be able to
take care of their employees and take care of this downtime about $800 million. And what did they do with it? Just to, like you said, they bought back stock. They paid huge dividends. They wanted to do everything they could to
increase the chances that the people at the top are going to get big bonuses. Isn’t that what it comes down to? Absolutely, 100% and that’s all these stock
buybacks are about. You know, we were, we’ve been told repeatedly,
you know, 40 years now about this whole myth of trickle down. You give these companies more money, they’re
going to put it into the workers, they’re going to expand their business. Everybody gets raises. It’s been shown time and time and time again
it doesn’t ever work in practice. And now even more so than just, oh, people
didn’t get raises. Now the chickens have come home to roost. Right. Because they could have done the right thing. Even if they had just put the money aside
and said, let’s get through a full year in case everything goes South. Yeah. But as you said they, they didn’t even put
away enough for a month. We’re talking about some of the most, a month,
two months. Yeah. Look, you’ve got casinos. How does a casino not have enough cash to
take care of their employees when things go bad? Same kind of problem. Adelson wanted to make it look like he was
the biggest dog on the block, so he did incredible numbers of buyouts, buy backs of stock and
paid dividends, and really the people that are suffering right now are going to be his
employees.

69 thoughts on “Wealthy Corporations Beg For Bailout After Poorly Managing Funds”

  1. Would the average citizen get a bail out for poorly managing their funds. Of course not. So why should cooperations be rewarded for gross incompetence?

  2. Screw these corporations…
    They should have managed the Hugh tax cuts better.
    Couldn't have put it better Farron.

    My company is finally giving us workers a one time bonus of $300.00, that won't come for another month. (they made $4 billion in profits last year) Sad that others are giving $2-5 hr raise.

  3. Republicans are backwards. They think giving money to the poor and middle class will make them lazy and less motivated to work yet believe giving money to the wealthiest will energize the wealthy so they will be more motivated to work.

  4. And this is surprising to whom? No one. They have been labeled "too big to fail" no matter what. They felt confident of that.

  5. Who is pay to…… Paitout that is so obvious all this years after years.. That why America dept is so large.

  6. Corporations do not deserve bailouts, they were given huge tax breaks which they were supposed to use to help employees with raises, bonuses, and incentives (trickle down economics which Republicans are so fond of, but never works, due the greed of many rich and corporations), but instead used those funds for stock buybacks and yachts. If the corporations need so much help, resell their stocks and yachts. They should not be rewarded for mismanagement of funds. American families and small businesses truly need the help, the poor and middle class didn't get the benefit of Trump's tax breaks the rich and corporations received. If Senate Republicans insist on bailing out Corporations and the rich again, then each one of should be marked to be voted out of office when their time in office is up, whether it is in 2020, 2022, or 2024.

  7. How bout a bail out for the avarge person then needs it not these greedy pigs that will use it to give CEO bonus checks

  8. Reagan's greatest trick was to convince the public that Americans Welfare Queens were among the poor rather than among corporations.

  9. Trump and his selfishness and love of money over people plus his sociopathic narcissism and low reasoning ability are killing innocent people here .

  10. As with the lowly worker, the corporation's should be made to take a means test. If they made over a certain amount then they get nothing.

  11. All that money is in their personal bank accounts. It's time they quit robbing everyone and start doing their actual jobs.

  12. How are we meant to trust you when you appear on a channel called Russia today that is funded by the Russian government

  13. Its almost like if they didn't line their CEOs pocket the whole time they might not need my tax dollars. American needs tl do without companys that cant manage themselves without my fucking tax dollar.

  14. Dude, do you not understand what stock is?
    Buying back your own stock is a GREAT thing, and not because it raises the remaining shares value.
    But you already know that.
    For those that don't, here's stock education 101….
    When a company needs cash, as a startup or for expansion, they "sell stock". Stock is a " loan" given to them by the public.
    It represents "debt" the company keeps on its books.
    Buying back their own stock lowers their outstanding debt. Which is a good thing. They no longer have to pay dividends etc.
    It is a good thing for companies to do, just like it's a good thing for individuals to pay down their credit card debt.
    These guys in this video are fully aware of these facts. They just choose to frame these actions to inflame the uneducated public, the same way Trump does. They use his same weapons. More and more like Trump every day.

  15. Capitalism is failing the Americans. Our money would be better spent on programs to build up our people. We have to tell corporations they are not getting anymore welfare. Enough is enough.

  16. Blame the brainwash racist trailer trash dirt poor Republicans, that have no money in stocks but will back their party up because hey "liberals", "immigrants" and "blacks"??

  17. 1. First you use your tax break savings.
    2. Stockholders take a loss
    3. Use your profits
    4. Use ALL your savings
    5. Cut corporate benefits
    6. Sell cars, home , jewelry
    7. Put kids in local colleges
    8. Sell kids cars, toys
    9. THEN ask for help.
    10. Or die. Some greed monger will buy you our.
    11. If WE the People have to do this, THEN YOU CAN TIO.
    12. NOT TOO BIG TO FAIL. FAIL THEM.

  18. I knew it. The big bailout of 2008-2009 was just like buying a glass of whiskey to the drunkard who keeps asking for it while saying: "But it'll be the last! The last! I promise! Please, please, please!"
    The whole system and the model simply cannot sustain itself for much longer. Anybody with minimum common sense can figure it out. We live on a spaceship that has a limited amount of resources (not unlimited as the capitalist model is predicated upon with growth-no-matter-what as its golden standard of success. The spaceship food reserves can be stocked to a maximum level. Adding more passengers becomes impossible at some point. Granted, the design of the spaceship has improved so its upper capacity for many parameters has also improved. But nevertheless, we can't add more past a certain point.
    I like that "spaceship" allegory (it's not from me!) because it describes Earth and the world quite accurately. If we started to reshape the foundations of economics on the basis of that concept, mankind could fare a LOT better. Not only in terms of providing all necessary goods to humans, but also in terms of happiness. Ultimate happiness can only be reached by living in harmony with reality. And right now, we conduct our lives as certified schizophrenics, being disconnected from reality as a result of the system in which we're living. When you reconsider how big business has learned nothing from 2008, it's fairly easy to realize it couldn't have been otherwise. It is imprinted in the system's DNA. That's what pure capitalism leads to, and since Reagan, the US have started to veer away from the corrective tangent they had taken not only to humanize the system, but to simply make it better adapted to reality, period. Although we know that trickle-down economics does NOT work, big business and governments have kept practicing it because people are too dumb to realize it's not working so they keep believing in politicians' snake oil remedy promises. So those responsible for our demise get reelected, and when the system's failures become too obvious, as in times of crisis, through its exacerbating effects, they find the perfect scapegoats. We all know what is the scapegoat right now, but only a few have put their finger on the real culprit…
    It's all very frustrating, and millions of people will have to die before we finally understand. That's the only way people can change, especially when a form of addiction is involved. And we all know very well what addiction I'm talking about: in the USA, it is green on one face, etc. etc.

  19. Keep track who got what, and when we are free to spend what ever we have left after this, bouycott every one of these thieving companies. I for one will never fly on another Boeing airplane. I will pay a higher fee and fly Airbus then pay an airline who flies Boeing. And this list is going to be very long. When asked if they would give up a % of ownership for bailout money the CEO’s said nope, we’re good we will fined another way to stay afloat. So the Great leaders in Congress said ok, then no strings. Oops, sorry! They are going to have an oversight board ??????

  20. American workers are no more than a commodity ( to be used and discarded )for big business
    I vote not 1 single dime for these leeches , give all bailout to American public and we will decide which companies get our support and which don't

  21. BIG CORPORATIONS are BRIBING Congress for their Bailouts is why it doesn't work. Yes they should have kept the Bailouts for just such Rainy Day as this and because they pay Congress to keep them afloat they expect them to do it again now. THAT IS A PART OF THE SWAMP TO BE DRAINED when Trump leaves office.

  22. Let's see…..you under-pay employees, you deny employees the benefits that they have earned and Trump gave you f—ers a huge tax break so you didn't pay taxes last year.

    Let me think about this……..HELL NO! You got yourselves in this, get yourselves out.

  23. So… We the people have to take out a loan and increase the public debt so these companies can get free money.

  24. ANOTHER
    GREAT
    DEPRESSION !!
    THE CAUSE –
    ABSOLUTE CORRUPTION,
    THE american WAY OF LIFE !!
    THE american CITIZEN u R JUST A ? SYMBOL 2 THE CORPORATE GREED & SLOTH of the American POLITICAL QUAGMIRE !!
    In other words – they don't want u 2 get ahead HENCE the F'ING TAXES THEY COME UP WITH !!
    & THE RICH DON'T PAY TAXES !!
    ONCE AGAIN – THE RICH & CORRUPT aka politicians DON'T
    PAY
    TAXES !!!

  25. Let these wealthy corporations bail themselves out with 2018 & 2019 TAX SCAM money that they reinvested in thier companies instead of thier employees. NO BAIL OUT FOR the rich Coroorations for thier CEO's mismanagement of financials.

  26. How dare they even consider begging for money . The American people are suffering and all they can think of is lining their pockets with money they don't need. This shit has got to stop.

  27. they used the trump tax grab by buying back stocks to enrich themselves and saved none for a rainy day so the people need to say no..we will not bail out these greedy companies…

  28. Trump only wants to bail them out because his Hotels are part of the bail out and he fought hard to include hotels in the bail out.

  29. Let corporations fold! Should have saved for a rainy day…pull yourself up by your own boot straps…they had all the best consul and information and now Socialism is warranted? What happened to survival of the fittest?

  30. Take notes on which of these companies will use their bailouts on executive bonuses like AIG did back in 2009. They reported a 61 billion dollar loss but paid bonuses in the millions.

  31. Most of it is there fault, they got so greedy and sat back enjoyed their profits and now with the pandemic buying back their stock that's how they will loose out big time, no wonder Trump is in a rush to open the county and it will force the economy to go south again and they can't blame the virus or democrats, and if they do we can say they have been warned and when it comes to the taxes I will not put in for it.

  32. "Nothing will fundamentally change," Joe Biden to Wall Street. We MUST call on Biden to drop out so that Bernie wins the Democratic nomination. Biden is suffering from mental 

    cognitive decline & that charade & abuse needs to END now! Bernie will be able to beat Trump, lead us out of this depression just like FDR & restore America to her rightful glory.

  33. Reminder: Delta Airlines trafficked me!!!

    Shawnee Lazore HHD, PhD

    Thank You Mike and Farron, for the Integrity to call this greedy atrocity out in #Truth !!! @ringoffireradio

  34. Of course they want hand outs. They want our tax dollars to go to them and screw the regular people suffering. Stock buy backs should be illegal.

  35. All the Republicans and Corporate Democrats that hate Socialism and call Bernie Evil, look at them now. They have no problem with it now that Corporate America is in self inflicted trouble, Funny how that works, isn’t it!

  36. There is something else in dire need of investigation: The Great American CEO Exodus.
    You can find the timeline and the names of CEOs of large corporations who have resigned recently in Fortune Magazine and in ZeroHedge. Right before the stock market tanked, CEO resignations reached a fever pitch. Their stock portfolios deserve thorough scrutiny.
    When the FED now starts to help the stock indices to go up, up, up one last time for all the rich and well-informed shareholders, I hope somebody is there to investigate the scoundrels. Anyone who believes that all the CEOs all had a premonition about the crashing stock market all at the same time, there is no help for you. BTW, large banks do own large stock portfolios (see Swiss Bank). Isn't there a conflict of interests?

  37. "I have a feeling that a lot of the numbers that are being said for some areas are just bigger than they're going to be," Trump said. "I don't care if you need 40,000 or 30,000 ventilators. You know, at a major hospital sometimes they'll have two ventilators. All of a sudden they're saying, 'Can we order 30,000 ventilators?'"

    "Look, it's a very bad situation," the president continued. "We haven't seen anything like it. But the end result is we gotta get back to work and I think we can start by opening up certain parts of the country I really don't care if a bunch of old people die."

  38. I just saw on the news where trump says the ventilator machines are too expensive. Now that he got what he wanted, he doesn't care about people.

  39. The theiving bastards want bailouts while doctors are going without masks ?them give them (the doctor’s )the money to protect them selves to create a vaccine to vaccinate to heal people not to people who don’t give a fuck if we all die !

  40. Why would a pig leave a full trough?…
    And why are the airlines not held accountable ? They are the ones spreading the virus… but nobody talks about THAT. Instead we are giving them money.

  41. Corporate greed is the crux of the problem. They never learn. When an economic crisis happens they come crying for help.

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