Tim Geithner Plays with Words on Fox Business

Liz Claman of the Fox Business Network is one of my favorite interviewers in media today. She is warm and cordial, which also means her guests are easily disarmed and she follows that up with some of the tougher questions in business news.

Recently Treasury Secretary Timothy Geithner was a guest of Liz Claman on the Fox Business Network and said that we will be able to “solve this financial crisis at a dramatically lower cost than we initially anticipated," he goes on to actually claim that the U.S. taxpayers have made money on banks paying back TARP.

On whether the US taxpayer made money on banks paying back TARP:

Geithner: “Absolutely. Just on that particular investment (Bank of America) the taxpayer got probably more than $2.5 billion even before we sell our warrants…We’re going to be able to solve this financial crisis at a dramatically less cost than we initially anticipated.” On the flip side, our financial industries have developed a new type of "freezing effect" as banks stop making investments because they have huge reserves to sit on and are paid for by taxpayers. Loans are risky; government subsidies have allowed banks to avoid that type of risk. Furthermore, this does not even address the bigger issue of nationalization and the inappropriate use of government power.

On the opposition to government tax credits to small businesses:

Geithner: “There’s a pretty good case for looking at targeted tax incentives to encourage investment and new hiring.” Unfortunately this administration seems to "target" tax cuts or subsidies to political allies, be it political organizations that support its agenda (e.g., ACORN) or corporations that they are trying to win favor (first Wall Street and now a "new" bailout for Main Street).

On what it will take to create jobs:

Geithner: “It will not be one thing. It’s going to have to take a mix of approaches, and you’re right, we have limited resources.” What happened to the money we "made" from TARP? This type of political double talk is common for Obama and his team. With the highest unemployment in a quarter of a century, it is difficult to stomach watching this President spending close to $1 trillion just to launch a health care program that is unconstitutional, promises to create a systems of rationing, and will not event go into effect for almost a half of a decade. Allowing the states to determine its own minimum wage, eliminating taxes on corporations (since those taxes only undermine competitiveness), and making it easier for employers to hire should be on the top of Geithner's priorities.

You can watch the interview by visiting here.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

New Bank of America Logo, Sign of the Times

I often wonder what goes into the decision making of some of America's companies. The American people have felt as though they have been mugged by the federal government as it confiscates their income in an attempt to bailout Wall Street's fiscally irresponsible financial institutions. One of the biggest beneficiaries of that bailout, and a company that has just this week gone back for more, is Bank of America (requesting and going to receive an additional $20 billion, adding to the billions it received and making the bank the biggest beneficiary of the bailout at $45 billion).

In the last couple of days I was driving home and I noticed something different about the Bank of America branch just a few blocks from my home. It was entirely trimmed in red! The blue "Bank of America" words are now floating in what looks like a red ocean. It is actually a very ominous sign of the times.

For the millions of Americans who are offended by mega corporations receiving bailouts, this seems like a very odd memorial to the debt ("in the red") we are all in. The Bank of America seems to be celebrating this financial blood bath. It is the Bank of America's way of thanking us taxpayers for the tens of billions it has received in a bailout.

That leads to another issue. So the Bank of America has hit hard times. They line up like all the other financial institutions, car companies, porn executives, and other white collar free loaders at Capital Hill, and actually receive billions of dollars. Among the first thing they do is change their signs? I would think that would be expensive for the many branches. Following this expenditure they turn around and ask for more? You have to give them credit for their audacity! But the person who was behind this new sign decision should really be looking for another job.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

David and Goliath on the Credit Front

I just received word that the Bank of America had a devastating quarter with a 77 percent drop in profits. It, of course, reminded me of Calvin Brown's recent interview on the Houston Business Show on the subject of the worst companies with whom to have open accounts. Here's a quick list of those banks:

* Bank of America

* Capital One

* Discover Financial

* Verizon Wireless

* WFNNB

* Washington Mutual/Providian

* Americredit

* Diamond Shamrock

* Best Buy

* Citibank

You can read the list with details here.

It appears to be a "David and Goliath" story, with Calvin taking focus on the banking giant. It may be mere coincidence, but we can't help but think people are getting the Credit Restore message.

Above is a recent video interview of Calvin Brown on the credit situation in the United States. Click the video and click "Movers and Shakers" to view this program.

For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

What are the Five Worst Credit Card Companies?

According to Calvin Brown (of Credit Restore, Inc.), Houston Business Show Advisor on Credit Strategies, you are going to recognize them immediately.

On Friday's Houston Business Show (M-F at 11 AM on CNN 650), I interviewed our new Houston Business Show Advisor and Calvin pointed out the five worst credit card companies.
Here’s a quick run down of the five companies that have a reputation of destroying a client’s credit and even their financial reputations:

* Bank of America. The largest bank of America has a terrible reputation at damaging one's economy. The purchase of a smaller credit firm has weakened the economic structures of the larger company.

* Discover Financial. One of the hardest cards to get is one that you might want the least.

* Capital One. In spite the nifty commercials that position themselves as the savior of credit card users, they have a reputation of worsening one's credit situation.

* World Financial Network National Bank (WFNNB). You don't know this company because they underwrite the credit efforts of many other firms. But when you get something financed, they might be the ones underwriting it.

* Washington Mutual/Providian. Another company that has suffered from the practices of its acquisitions.

These companies’ are all noted for being unforgiving, rude customer service, overextending credit, and weak ID theft controls.

Calvin went into detail on these companies and has developed a report that he is making available upon request plus five others. For that list of the top ten and details why they were chosen, ask for a report at Info@HoustonBusinessShow.com.

Kevin Price is Host of the Houston Business Show, M-F at 11 AM on CNN 650.