Posted on 09/29/2008 9:42:02 PM PDT by goldstategop
McDonalds is the third largest land owner in the world, only behind the Vatican and the English Monarchy. And they are close to the the Monarchy (nobody is close to the Vatican, not by a long shot). Of course they can get credit. And if they couldn’t, THEY DON’T NEED IT.
McDonalds has a better credit rating than the US Government.
Our banker assured us that we would have no problems...they have plenty of money to lend to good borrowers.
Did you notice how the talking points have shifted to "no more student loans(!); car loans(!) in the last 24 hours?
McDonald’s franchises are not large corporations. While most are owned by companies that own several stores, the loans are not made to the McDonald’s corporation but to the franchisee.
The reason McDonald’s is involved is that their control over the franchises is so great that they had to be involved in a standardized credit facility. One of my co-workers at BofA prior to the merger went through the training to be able to make these loans, and it even included a visit to the famous Hamburger U.
The pea pickers and commies don’t care. We are going down.
But....but....but if the economy tanks, no one will be able to afford the luxury of the expanded McStarbuck’s new drink offerings...
McD can also stop donating money to support homosexual activist groups.
I have McDonald’s stocks but I'm selling them even at a lost.
I'm going to McD. to spend my last $1. until they stop supporting the homesexuals.
“But it a lousy deal for the taxpayers. If I make some bad investments, the government is not going to bail me out. Especially if I made some careless investments.”
That’s why it should never have been a bailout but a ‘workout’. bailout is not the point - the point was and is to assure liquidity in the markets by getting a market for CDOs. The bill requires treasury to NOT overpay.
Seriously, the taxpayers are the investor class. It was and is a GOOD deal for the taxpayer/investor class, since $1 trillion was lost in ONE DAY and the ‘bailout’ would likely cost no more than 15% of that (or $150 billion).
The market was down almost 400 points BEFORE the vote was taken. The markets HAD fallen anyway. The Asian and European markets went down before the vote, also. Were all those people selling because they knew that the bill would fail hours before the actual vote? No - they were giving the market their ideas of its real value.
“to do is to take government handcuffs like onerous regulations and punitive taxes off the markets.”
While I agree longterm, that wasnt the choice. The choice right now is ‘deal’ or ‘no deal’ on helping the credit markets navigate a situation where multiple banks have gone bankrupt and more are on the way. Doing nothing is a bad idea.
“We don’t know if that is true. I don’t think throwing money at the problem will work. “
It’s not ‘throwing money’. It’s buying distressed assets to help banks clean up balance sheets. Those investments can help support the credit markets and could recoup some or even all the money invested, so its not a money pit.
“Were all those people selling because they knew that the bill would fail hours before the actual vote? “
Actually, yes. Boehner had given indications in the morning that it was in trouble potentially. Had it passed there would have been a relief rally.
The foreign markets were down on Fortis failing, and we had that Wachovia take under.
Wake up folks, banks are falling like bowling pins and people think its ok to be blithe to the crisis.
“You would think the McDonalds owners/franchisees could afford the upgrades out of their own pocket? 100K per store is really not that much.”
There are often advantages to borrowing to make these upgrades, such as deductibility of interest. Yes, I know that deductions are by definiton a subset of actual outlays, but still. Believe me, not every McDonald’s is a “license to print money”. I knew a guy who owned 5 of them, he said only one made enough money to really be worth it. That’s another point; many owners own multiple locations, and the upgrade cost for a slug of 4 or 5 or 8 locations can amount to more cash than the owner is willing to toss out all at once; yet the qty discounts associated with buying that much gear at once can be an economic benefit. Ergo: Big slug of dough req’d; ergo; loan or lease often more desirable than outright cash purchase.
Bottom line: credit-worthy borrowers will still be able to get credit. The way it should be. This entire crisis is due to the imbeciles in Congress pressuring/forcing lenders to lend to people who are lousy risks. These morons can’t even run their own restaurant but they want to micro-manage a multi-trillion dollar economy. God help us all.
Bottom line: credit-worthy borrowers will still be able to get credit. The way it should be. This entire crisis is due to the imbeciles in Congress pressuring/forcing lenders to lend to people who are lousy risks. These morons can’t even run their own restaurant but they want to micro-manage a multi-trillion dollar economy. God help us all.
i don’t care if mcdonalds gets credit or not...ever since they went green, their food sux........
Don’t forget their corporate promotion of homosexuality and gay “marriage”, too.
Any small business owner that will succeed long term won't leave $100K sitting on the shelf. They will leverage it out to $1M or more using lines of credit and invest in growing their business.
And that's a very good thing.
Less money for promoting the homosexual agenda.
There doesn’t seem to be a right or wrong side of this. Both sides have strong points. Some of the them are right when they say we need transparency - especially the public. None of us know exactly what’s in that 700 billion. We need to know who gets what. Plus, I don’t like the Sec of Treasury having a blank check with no oversight person to watch what’s going on. That is a door we never want open. We, the public, would never know where the money is going.
One point I see is not being addressed: How is bailing out the banks going to help a homeowner who cannot afford to pay their mortgage payment?
One thing I agree with you one is allowing the market to do its job. I am noticing is how the market is still correcting itself. I see oil dropped to $96 a barrel. House prices will go down and interest rates will go back up. This is how a free market works. Seems our government like any past Kingdom is trying to convince its peasants that they don't know what to do without the King/Queen telling them what to do!
I don’t like it when they try to rush things. There is no reason this has to be done overnight. That’s what they’re trying to convince the public.
The big issue I’m hearing on reports is if we don’t help out the banks they won’t be in a position to loan money to companies and in turn companies will have to start laying off people because they don’t have money.
I’m not sure that this is totally true. Maybe only to badly run companies? Surely small business owners may suffer.
One point I've noticed on MSM that's not being brought up is that a well run company has a good cash flow. They do not have more debt than revenue. Plus, there are banks (mostly local community type banks) that did not dabble in sub-primes and can still do business. They will benefit from this I think.
I don’t like the way Repubs & Demrats are putting the pressure on the situation. I’m sure they will pass something, but I don’t see the rush. Probably trying to impress the voters before Nov?
Where are the economists who know how a free market works? We need their voices, loud and clear.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.