David Ruggles's Page

Until the bitter end, Rick Wagoner, deposed CEO of GM, refused to acknowledge bankruptcy as being a viable option for GM. I believe the plan he submitted to the Administration’s Auto Industry Task Force was the best he felt he could do without the benefit of bankruptcy court.


Bankruptcy court represents handing over control of the process to a bankruptcy judge. The judge has broad powers. A possible “benefit” GM, Chrysler, and the Car Czars might hope to accomplish through bankruptcy is to hav… Continue

Following are some ideas published by the consulting and accounting firm Grant Thornton along with my comments in CAPS! I welcome everyone's input. Tell me where I'm wrong!

Grant Thornton: Five ways the government can help get car sales back in gear
Via press release and an article in Forbes, Grant Thornton, a corporate consultancy, offers five policy ideas that can help spur new car sales.
(1/22/2009)


Noting that the auto makers have received their bailout loans and GMAC has been propped up… Continue

Bloomberg reported on Jan 14 that Goldman Sachs Japan plans to take complete control of Universal Studios Japan by March 31 (it currently owns 41 percent).

But Larry Summers was quoted on Sunday talk shows saying the following about the use
of TARP funds: “What’s not going to happen is the funds that could be supporting increased lending are going to be used to finance acquisitions that may serve a bank but don’t serve the country,” Summers said. The new administration will also prevent banks t… Continue

Notes: House Oversight & Government Reform Committee Hearing 12/9/2008:

Committee Chairman - Henry Waxman D - CA, Edolphus Towns D-NY sitting in today

Darrell ISSA R-CA Ranking Member

Definitions: subprime is defined as mortgages with a 660 FICO or below
AltA mortgages are typically "no doc" "stated income" mortgages, "liar loans" and other high risk factors
GSE = Government Sponsored Enterprises

To Testify: Pinto, Kling, Calomiris, Stanton.... see below


Edward Pinto - Chief Credit Off… Continue

I saw an interview with Mort Zuckerman yesterday. I believe he is publisher of US News and World Report, and a guy I have a lot of respect for. Unfortunately, he scared me half to death. I have been worrying about a problem I have not heard well mentioned until he brought it up during the interview, and that is the problem of home owners owing more on their houses than their current value. According to Mort there are about 20,000,000 mortgages in the country where the owner owes at least 20% mor… Continue