Bailout Boscovs

A few weeks ago when I was ranting about the $700 Billion bailout of the banks and Wall Street I asked what I then thought was the facetious question, What the hell, why don't they also bail out Boscovs?

Another lesson in be careful what you ask for. The feds (Republicans) are still busy nationalizing the commanding heights of the economy (socialism) and now the state and local governments are getting in on the act.

W-B, Scranton to loan Boscov’s $3 million each
Gov. Ed Rendell (Democrats) also secures $35 million to aid family regain Boscov’s chain.

State and city money is said not to be at risk because they are using federal funds in the Community Development Block Grant (CDBG) program administered by HUD. According to the TL story the money comes from a pool of money that is separate from the CDBG funds that are used to pave streets and tear down vacant buildings, etc. We will see about that.


Is a local department store chain really too big to fail?

Senate 14 tidbits

I wandered into downtown Wilkes-Barre yesterday to do some Boscoving and check out the Green Party gathering on Public Square. Pictures here. I always park in the Boscovs parkade for the free parking and this time it only cost me 42 bucks.

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I ran into Wilkes-Barre Mayor Tom Leighton who is running for the PA State Senate seat being vacated by Ray Musto who is now caught up in the corruption investigations that have snared 28 people in Luzerne County so far.

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We were both pressed for time and I didn't expect to see him so the tough questions will have to wait to another day. For all the attention that has been put on attracting new businesses to downtown W-B I think one of Leighton's biggest successes is keeping the anchor store open. If Boscovs closes it's doors it would be the death knell for the square.

In an interview with the CV he defended the tough decisions he has had to make as Mayor such as raising taxes and closing Firehouses.

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His opponent for the Democratic nomination State Rep John Yudichak gave his pitch to the CV
for "modernized government in Harrisburg."

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Yuddy keeps racking up the labor endorsements.

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The Pennsylvania Professional Firefighters Association (PPFA).

The Pennsylvania AFL-CIO

The bailouts

The latest focus is on the auto industry wanting some government money after the failure of Bear Stearns

Fannie Mae and Freddie Mac
Goldman Sachs
Morgan Stanley
American International Group
Boscovs

And many others. Today Citigroup has been added to the list.

I'm dismayed that some of my conservative friends are blaming the unions for the collapse of Detroit. Did the unions cause the collapse of the big financial companies? I know a few people that work for CitiBank and not one of them belong to a union and they are hourly employees.



I haven't read a liberal or conservative blogger or talked to a Republican or Democratic voter that agrees with what is going on but we keep hearing the same mantra that Margaret Thatcher was famous for when I lived in England, "There is no alternative."






I can't get my arms around what has happened in the last month and I'm an Economics major. As a rule I don't like it when the government goes into panic pass mode because they usually get it wrong, think the Patriot Act or the MCA.

As a minimum we should expect some accountability from these companies such as the firing the top management of these not now going concerns and limits on any future compensation for their successors. The auto execs showed how tone deaf they are to the mood of the country by flying into Washington on private jets with while asking for a hand out. This past week's exchange between Congressman Paul Kanjorski and GM CEO Rick Wagoner shows how arrogant and out of touch these guys are. Kanjo asked Wagoner a simple question that he couldn't answer.
"How Much money do you need until March 30th?" And he couldn't give a straight answer.


Auto CEOs Tell Congress Why They Need $25b

Why aren't these guys at work?

I spotted Senators Joe Lieberman, Arlen Specter and Lindsay Graham at the Senator John McCain event in Scranton today. Senator Bob Casey was also in town to hand out a check for the new Medical School. A check of the news shows that Senators Barack Obama and Joe Biden are also on the campaign trail.


With the government about to pass a $700 billion bank bailout that has to be approved by the Congress shouldn't they be in Washington working on it? The Seante is in session.

I just read that the plan is now going to include foreign banks. What the hell, why don't they also bail out Boscovs?


If you have bad assets you'd like the government to take off your hands. And remember, when estimating the value of your 1997 limited edition Hanson single CD "MMMbop", it's not what you can sell these items for that matters, it's what you think they are worth. The fact that you think they are worth more than anyone will buy them for is what makes them bad assets.


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Downtown Wilkes-Barre

Remember it's Wilkes berry! On one of the college stations today I heard the DJ murder the name as Bahrrr.

Get it right people. Just ask the people in Vermont.

I've been in downtown twice this week and what a joy. I got a lot of my christmas shopping done without having to run over anyone or be trampled on. I hit Boscovs, Gallery of Sound, the new book store (Barnes and Noble) and a few other places.

There is just a different feel to the area. In the past the only time I wandered down there was to go to the Kirby for a show and then right out. Today I walked around after doing my shopping and had a drink at Bart & Urbys and felt safe. If this is do to the cameras I don't know. There are still plenty of vacant storefronts but hopefully that will be remedied soon. The new streetlights are attractive and bright. I plan to return soon.