Microsoft calls on Congress to reconsider bailout
Following the massive Wall Street sell-off, Microsoft on Monday called on Congress to revisit its bailout decision, saying government action is "vitally important."
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"Microsoft strongly urges members of the U.S. House of Representatives to reconsider and to support legislation that will re-instill confidence and stability in the financial markets," general counsel Brad Smith said in a statement. "This legislation is vitally important to the health and preservation of jobs in all sectors of the economy of Washington State and the nation, and we urge Congress to act swiftly."
The move follows the largest one-day point decline ever for the Dow Jones Industrial Average, a drop of 777.68 points or almost 7 percent. Microsoft shares, which had held to a less-than-5-percent drop for much of the day Monday, closed at $25.01, down $2.39 or more than 8.7 percent.
The House voted down the $700 billion bailout plan by a vote of 228 to 205, with 133 Republicans and 95 Democrats casting "no" votes.
Congressional leaders of both parties proceeded to blame one another for the bill's failure on Monday, with minority leader John Boehner (R-Ohio) blaming a partisan speech from House Speaker Nancy Pelosi, while Pelosi (D-Calif.) insisted that Democrats held up their end of the deal.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
They waste $300 million on stupid Seinfeld ads, lose over $6 Billion on the XBOX business then sit idly by while Nintendo eats XBOX 360's lunch month afer month, even while failing to deliver their own equivalent of the "Wiimote" and release their own "Wii Fit" or "Wii Play" so "non gamers" will buy the 360, sit down while Microsoft stocks falls by over 60% since 1999, long before this week's stock market crash, even while Nintendo's stocks have doubled since the Wii was launched, and Microsoft execs come up with this stupidity? Gimme a break!
Just why the heck should we as taxpsyers waste our money on a bunch of Wall Street types that paid themselves bonuses of over a staggering $40 Billion last Chrisrmas alone?
Its ridiculous.
1. If we pass this bill, we will probably get a spike of 500 or 1000 points in the near term?.and then we?ll eventually see DJIA 9,000 or lower because central allocation of capital is being politically-driven and not profit-driven?and only profits make stocks go up.
2. Actual quote from Barney Frank just a couple years ago as his friend Frank Raines was taking home tens of millions while lying about the fundamentals at now nationalized Freddie Mac ? ??These two entities ? Fannie Mae and Freddie Mac ? are not facing any kind of financial crisis? But now he wants me to believe he?s right about impending doomsday if this extortion doesn?t pass?
3. Markets have a way of surprising the most amount of people the most amount of the time. Somehow I?m supposed to believe these idiots in Washington and the cronies they listen to are RIGHT about what will happen to these markets?
I was surprised with Steve Ballmer's $620,000 pay and $650,000 bonus.
The only $40 Bil I heard about is Microsoft's stock buyback. They have like $30 Bil of cash on the books. Why they need to meddle in politics I have no idea, the don't need credit. Look : the bailout or no bailout are both bad. Pick your poison: Hard time getting credit or government nationalizing banks.
Frank Raines was at the helm of Fannie Mae when the Community Reinvestment Act was expanded. See the "Burning Down The House: What Caused Our Economic Crisis? V2" by the mouthpiece on youtube. The road to hell is paved with good intentions.
If they form a bailout we need to know exactly what we get, the bill they put on the floor was rejected by the far left and far right (rejected by 60% Republicans and 40% Democroats)
No.
You back up your NON-statement.
Fun stuff,
http://therehearsalstudio.blogspot.com/2008/09/is-sky-falling-yet.html
"The execs running Microsoft have totally lost it.
They waste $300 million on stupid Seinfeld ads, lose over $6 Billion on the XBOX business then sit idly by while Nintendo eats XBOX 360's lunch month afer month, even while failing to deliver their own equivalent of the "Wiimote" and release their own "Wii Fit" or "Wii Play" so "non gamers" will buy the 360, sit down while Microsoft stocks falls by over 60% since 1999, long before this week's stock market crash, even while Nintendo's stocks have doubled since the Wii was launched, and Microsoft execs come up with this stupidity? Gimme a break!"
Actually, they committed $300m on the entire campaign of ads, of which the Seinfeld ones only took up about $10m, about fair market. Also, they sell their consoles at a loss in order to get money from the software, which is common practice. And last I heard, not too many people are demanding to do headstands on an electronic scale in the lame attempt to pretend they are active. If they want to be "non-gamers," they can buy something else. 360s are long known to be geared mainly toward higher-end players.
Also, the stock depression has less to do with anything they did wrong as it does with renewed competition thanks to that pesky antitrust suit, and a bunch of people opting for free alternatives. There was nothing any exec could do to compete with that.
"Just why the heck should we as taxpsyers waste our money on a bunch of Wall Street types that paid themselves bonuses of over a staggering $40 Billion last Chrisrmas alone?
Its ridiculous."
Because the money would get the banks working together again, to prevent people from losing their homes and credit lines. That way, they can make sure they can, I dunno... eat, go to school, go to work, and stay employed.
"1. If we pass this bill, we will probably get a spike of 500 or 1000 points in the near term?.and then we?ll eventually see DJIA 9,000 or lower because central allocation of capital is being politically-driven and not profit-driven?and only profits make stocks go up."
Kinda like that tech bubble, right? Look at the fabulous jobs THOSE stocks did with all that ... profit..... oh wait.
"2. Actual quote from Barney Frank just a couple years ago as his friend Frank Raines was taking home tens of millions while lying about the fundamentals at now nationalized Freddie Mac ? ??These two entities ? Fannie Mae and Freddie Mac ? are not facing any kind of financial crisis? But now he wants me to believe he?s right about impending doomsday if this extortion doesn?t pass?"
Actually, Alan Greenspan agrees with him. As well as just about everyone else who's being wiped out. Barney Frank (and I'm no fan of his) is in this case trying to balance information with composure. At the end of the day though, it's a crises, and nothing he, or any other single person, can avert or affect.
"3. Markets have a way of surprising the most amount of people the most amount of the time. Somehow I?m supposed to believe these idiots in Washington and the cronies they listen to are RIGHT about what will happen to these markets? "
I'm curious where you got your analysis from? How many banks needs to fail, freezing companies, causing layoffs, and driving up professional panic before you understand that 25% unemployment is NOT the way to go? No one's a fan of the CEOs who caused this, but I'm more apt to blame the idiots who tried to live outside their means and set the world up to pay for their mistakes instead of taking personal responsibility.
"... How many banks needs to fail, freezing companies, causing layoffs, and driving up professional panic before you understand that 25% unemployment is NOT the way to go? ..."
The short answer is: As many banks that need to be swept aside.
It's time to let these poor performing banks, insurance companies, and other financial companies fail. Government has repeatedly tried to interfere with the natural course of the market and every time it does, it makes things worse.
Congress needs to get out of the way, let the invisible hand of the market do its magic, and send these companies to the graveyard.
Let's assume the bailout passed. This will have banks continue the risky behavior they have been doing. The consequence will be hyper-inflation. The bailout is only a temporary fix to keep the banks alive for about 6 months, then they come back to the government to ask for more. It's a like a gambler, you give him $500, he goes to gamble again to pay back the $500 but in the end, he loses it all, and ask $500 more promising he'll make back the $1,000 and pay interest on it. With this economic climate, I don't think banks will have such enormous growth to pay back the bailout. Either way, we will go through hard time. Either suck it up now and get this over with or prolong this and get hit harder and bigger as time goes by.
When all the big corporations and wall st are FOR something, then all American working epople should be AGAINST it.
Why couldn't Microsoft deliver a console that sells 600,000 even in the non-peak months while still making big profits, like Nintendo did?
Make what consumers want, an they will keep buying it, finacial crsis or not. Stop blamng the markets for your own mistakes and blunders Microsoft.
And stop ursging congress to put a burden of a massive $700 Billion (and probably more )on the abused American tax payer.
Even if they spent just $1 million o the Seinfeld ads, it would still have been a total waste. I personally showed that ad to over 20 people, and not even one ov them had any inlcination to go buy Vista or Vista Pc from looking at the ad.
Every sinlge one of them was totally baffled by exactly what the ad was about.
That's the trouble with having too much money, you keep wasting it on stupid stuff
kaibelf :" Also, they sell their consoles at a loss in order to get money from the software, which is common practice. "
Look, Nintendo was able to sell the Wii hardware at a profit striaght from the get go, and managfd to launch the Wii with mass appeal games that remain in the top 10 in almost every country even up to today, 2 years after launch.
Why can't Microsoft do that?
The idea is to sell as many consoles and as many games as you can while making a lot of profits, like Ninetndo has. Does Micosift had a pronblem with making good profits in heit games business?
People who put money in the stock market are rich people. Let me them lose some money. Poor people don't have money in the stock market. They keep most of their money under their bed. They are the winners in this financial collapse.
So please, don't bailout the rich people otherwise we will have hyperinflation and the poor people who keep their money under the bed will be very poor.
The risk that rich people took made them a lot of money already for over 50 years, we, poor people, ask that they not steal our hard earn money through government taxation to keep them rich.
No it wouldn't.
You might try reading this article from Bloomberg Financial with the heading:
$700 Billion Bailout Could Balloon to $5 Trillion
And I quote:
"?So now they try to solve the problem by having this credit bubble actually extended and I think the $700 billion will be like a drop in the bucket because the total credit market in the U.S. is something close to $60 trillion, then you have the CDS market ? credit default swap ? of around $62 trillion. Then you have the whole derivatives worldwide worth about a notional $1,300 trillion. So the $700 billion is really nothing and the Treasury is just giving out this figure when actually the end figure may be $5 trillion.?
http://www.businessandmedia.org/articles/2008/20080926110602.aspx
What we will be doing, is saddling our children, grand children, great grand children and on and on with massvive debts that will cripple their lifestyles for centuries to come.
I say let the companies burn; the fat goes away and what's left creates a new entity. This is best for the economy.
RE the "Off Topic" Topics:
Re Microsoft? One word: Vista. Another word: Turd.
Wii changed the interface paradigm and shifted market expectations. XBOX is more of the same.
All the soi-disant blowhards in here crowing about government bailouts and their distaste for them are about to be in for a rude shock if this beast takes its natural course.
...we'll see how many folks are so eager to scream against the decision once their employers begin failing to make payroll.
/P
And when they find out that their stock portfolio/retirement nestegg and their 401(k) ends up being worthless.
If these folks had been so vocal a couple years back we wouldn't have this issue today. But now we are out of options, and the bailout is the only option left.
Oh Puleeze!
We are much better off without this terrible bill.
Just consider this:
By the time Barney Frank and his criminal gang finished with this bill, it was loaded with not just bad mortgage paper, but bad car loans, bad credit card loans....every bad loan they could come up with and that we'd end up bailing out Chinese banks, European banks, etc.
Sure, I lost a lot of money on the markets today, but I prefer that to the precedent of socializing losses, which is an infinite precedent that we would pay for for decades
The next several decades will not be lost to misallocation of capital to risky projects that appear to have a chance of a government bailout. That will save the economy tens of trillions of dollars over the decades.
Without a bailout, losses will be recognized by the owners and managers of businesses who made mistakes. Not by the government. The government?s role does not extend to immunizing against losses
I hope you're right in that it's just bad loans... problem is, once the credit market freezes solid, it affects much, much more than just "bad loans", and on a far greater scale.
40 Billion is how much in bonuses these banks and investment banks paid themselves in bonuses last Christmas alone, knowing very well they were sitting on HUGE toxic loans.
Why on earth shoud tax payers cough up $700 Billion, and more likely, ultimately $5 Trillion, to save a bunch of guys thats squander money, make themselves fat bonuses even while the ship is sinking, and make stupid home loans to people that should NOT be given home loans at all, because they lack the ability to pay back?
This whole sorry mess can be laid at the doors of Raines, Johnson, Sally and Freddy, and Barney Frank's finger prints are all ver this sorry mess. it's vermin like Barney Frank that helped cause this sorry mess in the first place. The idea that the same Barney Frank who caused this mess , and is now the Chiarman of the House Finance Committiee, and can somhow fix the mess he helped cayse is just laghable. Thats like sending Hitler to go save Jews.
- by Aus_Engineer June 14, 2009 7:49 AM PDT
- Geez are all you guys THAT STUPID ??? cant you READ, its NOT MS asking for a bailout, fools.
- Reply to this comment
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(30 Comments)Its MS asking congress to pass teh $700 BIll TARP type bailout money to boose the economy.
Wow, and im not even from the US, it appears I have a better understanding (and ability to read) that you people.. but lets not let FACTS get in the way of some good FUD.. shall we :)