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Yesterday, Bank of America decided that they shouldn't just buy Merrill Lynch as a business move. No, it was more like a public service. As such, they are entitled to be compensated by the government us. How many business mergers, hostile takeovers, and acquisitions can you think of that required $115 billion of taxpayer money to make them happen?

As I understand it (and I don't even pretend to), the money wasn't a requirement, just a perk.

It's a little like telling a bank that you'll buy a few of their foreclosed properties but that to make it worth your while, they need to give you the properties and then pay you on top of that for your beneficence. How far do you think that one would get?

Nothing wrong with businesses expanding and acquiring other businesses - as long as they have the capital to do it. Using public funds removes it from the area of a business move. When is this wayward thinking - and spending - going to stop?

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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2009. All Rights Reserved.

 
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24 Comments on And the rich get richer

JAN
16
2009

Steve, thanks for the post I was unaware of this and all I have to say is they wonder why we are all so pi--ed off with them!!
7:45am • #1
246,306 Points 26 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

And they wonder why we got in this mess?  Seems like instead of digging our way out they keep adding more depth to the hole.  And Bank America seems to be coming out like a rose.  I join the hands up of who is ticked off!
7:48am • #2
321,206 Points 52 Featured Posts Outside Blog

Oh man.  Smart business people find loopholes everywhere, and think people like you aren't smart enough to catch on to them. 

Thanks for telling us about this.
7:48am • #3
412,493 Points 1 Featured Post

I LOVE this saying....it is soooo true.  The rich will always be taken care of!  G E Z Z E !

 

Patricia Aulson   Portsmouth NH Real Estate
7:50am • #4
220,523 Points

I agree with the phrase you are using ---  thanks for sharing!
7:54am • #5
800,624 Points 72 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Steve, It's like pigs coming to the troth. The banks have a new business model, bad investment get money back and grow stronger...
8:16am • #6

And they wonder why so many off us shake our heads and moan when we hear these things...really...they still dont get it!!
8:19am • #7
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Christopher,

Thank you. The real fun starts next week when the new administration becomes official. :)

Steve
8:21am • #8
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Connie,

Unfortunately our hands are not visible above all of those with their arms outstretched to take. :)

Steve
8:22am • #9
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Kris,

Thank you, but now that we understand what's going on, how do we impact or reverse it? :)

Steve
8:23am • #10
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Patricia,

Uncanny isn't it how the system works? Those who don't need anything get it. :)

Steve
8:29am • #11
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Norma,

Really something. About all we can do is stand and watch with amazement. :)

Steve
8:30am • #12
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Paul,

I'm thinking the new business model is ask until you get. :)

Steve
8:31am • #13
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jan,

I'm more troubled by the posssibility that they get it and don't care. :)

Steve
8:31am • #14
115,040 Points

Steve, I am scratching my head as well. In fact it is starting to hurt. I wonder if the Countrywide acquisition has anything to do with and BofA simply did not have the money to complete the Merrill Lynch purchase? If that is correct, then the FED's may have actually done the right thing by not letting Merrill go down, which is twice as big as Lehman and the repercussions could have been devastaing. Remember how much a tailspin the economy and markets fell when they let Lehman go in September? UGLY

Bo
11:07am • #15
347,835 Points 1 Featured Post

Welfare for business. Not a new concept but, currently being taken addvantage of. We have to deal with BoA abunch and it is a nightmare. They are not customer friendly and don't deserve to have any help with a buy of any kind.

Terry Miller
12:28pm • #16
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Bo,

Everyone keeps telling us that we can't afford to let anyone fail - why not - especially if we're only forestalling the inevitable. BofA got the cash for one simple reason as near as I can tell - they wanted it and Congress was willing to fork it over. They didn't actually need it. :)

Steve
12:38pm • #17
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Terry,

Sort of puts a whole new slant on "Bank of America" doesn't it? :)

Steve
12:39pm • #18
227,064 Points 25 Featured Posts

Wow - that bailout did wonders.  I mean BOA of still advertising uncompetitive interest rates in our market.  Great government plan - it sure motivated BOA to increase lending in our area (all sarcasm intended).
2:28pm • #19
160,384 Points Outside Blog Hit Router

Steve

I think history is going to find this as the fleecing of the American people. I also think all this money is not making a different. the banks still want more. they are holding us hostage.

Richard
7:05pm • #20
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Richard,

Thanks. History has proven that government spending solves nthing - certainly not a slow economy. :)

Steve
10:33pm • #21
JAN
17
2009
323,528 Points 45 Featured Posts Outside Blog Attended Rain Camp

Hi Steve - that whole thing just stinks.  I want to be one of those rich that always seem to be taken care of.  We need to go study just what it is that companies like BoA do to get that type of treatment so we can all receive the same.......  I like the old ways of doing business - do what you can pay for and afford to do.

Ann
5:58am • #22
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ann,

Part of me agrees with you and part of me says no way - that's not why I'm in business. :)

Steve
7:14am • #23
1,345,117 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ryan,

It makes absolutely no sense, and there isn't a shred of gratitude by BoA connected with this. :)

Steve
7:48am • #24

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Steve Hoffacker - Sales Trainer, Author, Blogger, Photographer, Sales Strategies

West Palm Beach, FL

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Tips, comments, observations, and strategies for real estate professionals on the sales and marketing of new homes and existing homes, as well as time management, personal marketing, lead generation, and customer management issues.

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