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[FNGw/08SERK]

Casey seeking help for Harley

CHRISTINA KAUFFMAN -- The York Dispatch
Posted: 01/16/2009 12:59:54 PM EST

Sen. Bob Casey Jr., D-Pa., released a letter Friday asking the Federal Deposit Insurance Corporation to find Harley-Davidson eligible for funds handed out under a federal bailout for financial institutions.
In a Jan. 16 letter to FDIC chairman Sheila Blair, Casey said Harley recently sent a letter asking whether its financing company and subsidiaries - Harley Davidson Credit Corp. and Eaglemark Savings Bank - are eligible for the Temporary Liquidity Guarantee Program.

Casey said he supports Harley's request for eligibility, and wants the FDIC to make a decision on the company's eligibility by Tuesday, Jan. 20.

"Without access to TLGP, Harley-Davidson may be forced to make tough decisions that will impact workers in Pennsylvania, jeopardize the local economy...and negatively impact the state economy," Casey wrote in the letter.

Reached for comment on Friday, Casey said he wants to do everything possible to make sure that Harley's financial arm has access to help if it's eligible.

He said the problem with economy is related to credit, and Harley's participation in the program would allow more people to get Harley loans to buy motorcycles.

"Without the determination (of eligibility) made, it puts their financing company in a much more precarious situation," he said.

In October, in an attempt to improve confidence in the banking sector andto improve liquidity for banks, the FDIC started the program to guarantee newly-issued unsecured debt of qualifying

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institutions and guarantee certain noninterest-bearing accounts.
The Guarantee Program applies to FDIC-insured U.S. depository institutions, bank holding companies, financialholding companies and savings and loan holding companies.

Harley's Springettsbury Township plant employs 2,866 workers and supports another 1,500 jobs at Harley dealerships in Pa., Casey said.

"It's hard to even calculate the impact that harley has on York County, the region and the Commonwealth," he said.

Earlier cuts: In April, the company announced plans to cut 300 jobs from the York plant; those jobs have already been eliminated. In October, a spokesman said the company was still "positioned appropriately" for the faltering economy, despite falling profits reported in the third quarter.

Shares of Harley-Davidson Inc. tumbled earlier this month after an analyst downgraded the motorcycle maker and estimated its fourth-quarter U.S. sales will decline by a percentage in the low to mid 20s.

Raymond James analyst Joseph D. Hovorka reduced his rating on the Milwaukee-based company's stock to "Underperform" from "Market Perform." In a note to clients, he said that a recent dealer survey shows that year-over-year retail sales appear to have softened from the third quarter, when Harley-Davidson reported a 15.5 percent drop in U.S. retail sales.

Hovorka said of the 55 dealers surveyed, nearly two-thirds reported a unit sales decline in the quarter, "the softest reading ever for our survey."

The company is expected to report fourth-quarter results on Jan. 23. The company's stock was trading at $13.17 as of 1 p.m. The stock has ranged from $11.54 to $48.05 over the past year.

A Harley spokesman did not immediately respond to a call for comment.

-Reach Christina Kauffman at 505-5436 or ckauffman@yorkdispatch.com.

http://yorkdispatch.inyork.com/yd/local/ci_11469530

[skreminegul07]

Hey, why not.  If Larry Flint can ask for bailout money why not HD?

[porthole]

I'd like to figure out how I can apply for bailout money.

I would promise to help the economy and spend every dime I get and do my part along with the rest of the recipients to not pay anything back. 

[Boatman]

I'd like to figure out how I can apply for bailout money.

I would promise to help the economy and spend every dime I get and do my part along with the rest of the recipients to not pay anything back. 

I believe that if the government had given each of us tax payers $200,000 , it would have stimulated the economy much better than what they are doing with the bailouts.  ( I think I read once that around $200,000 would have been the bank bailout money divided by the # of taxpayers).

[porthole]

# I heard was 360000 per "tax paying" tax payer.

And I would promise  to document all my spending

[Boatman]

# I heard was 360000 per "tax paying" tax payer.

And I would promise  to document all my spending

Now I really feel bad Duane, thanks, Bob.     

[skreminegul07]

If I were in charge, and the amount was 200K or 300K or whatever, I would give that amount indirectly to each taxpayer but would have one condition, money would be paid to eliminate/ reduce mortgage and credit card debt.
This would fix the mortgage industry, and people would buy cars and fix that industry, and eliminate credit card debt, for at least a day or so.
What do you think?

[RickC]

I believe that if the government had given each of us tax payers $200,000 , it would have stimulated the economy much better than what they are doing with the bailouts.  ( I think I read once that around $200,000 would have been the bank bailout money divided by the # of taxpayers).

I think you're referring to The Birk Economic Recovery Plan which (mis-)calculated the total to be $425,000 per citizen. Unfortunately, the author was off by a factor of 1000. The real total was $425 per person. If you reduce it to the number of taxpayers, perhaps it doubles to $850... but it ain't in the hundreds of thousands.

Look at it this way. We have about 250,000,000 citizens in the US. Assume there are 150 million taxpayers in the US.  If we gave 150 Million taxpayers each $200,000, the total would be $30,000,000,000,000... that's 30 TRILLION dollars...

So, you get the picture...

Okay, why do I suddenly feel like Dr. Evil with my pinky pointing at my mouth and saying this with a funny accent...

[grc]

GMAC recently became eligible for financial institution "bailout" funds by changing their status to a bank holding company, if I remember correctly.  If it's OK for them, and for the Chrysler captive finance arm as well, then it should be OK for Harley's finance arm as long as they follow the same rules.

BTW, had a tiny 1 branch bank in Indiana recently bought up by a huge insurance company so that they could dip their hands into the public funds as well.  I'm trying to find out just how much capital I'd have to come up with to start my own little bank so I could do a little "dipping" myself.  Before it's over, the public will own more worthless paper in more worthless companies than any human could ever fathom.  This will rapidly exceed the pyramids built by Madoff, Charles Ponzi, and all those in between.  I guess the "greed is good" folks haven't quite given up yet.

Jerry

[badhorse]

I am not a heartless bast*#d. I don't care what my friends say. . I am against bailouts for banks, corporations, children anyone. It only encourages stupidity.
 All these companies, including H-D, were making money hand over fist not that long ago.

 They all know that bad economic times come and go. If they don't take proper steps to prepare for it so be it, but do not come crying to me with with your hand out. Keeping the profits and getting your loss's paid by the government is a sweet deal, but unrealistic and reduces our economic strength as a country.

Using the lowest calculations on this thread the gov could give a $20,000 tax credit to every person who pays federal income tax for less than the bailout. (40% of workers pay no federal income tax) That's not gonna happen , but it makes a point, Political answers to  financial problems will never work.

I love H-D, but....

[MIKEYTEE]

I wonder if my piggy bank qualifies of the banking bailout?
Mike
 

[hdhog1]

  If it has been said once it has been said 1,000 times were is it going to stop.

  "Everybody Wants Some.... I Want Some Too....."

[2018_FLTRXSE]

# I heard was 360000 per "tax paying" tax payer.

And I would promise  to document all my spending

That would build a new house for me... (almost)

[napalm]

 :orange:I think all 110 motor owners should automatically qualify for bailout money!!!

napalm

 

[FNGw/08SERK]

I think all 110 motor owners should automatically qualify for bailout money!!!

napalm

 

That's some funny chit!!!

According to "Meet the Press" this am ..... total bailout will be at least 2 TRILLION with each home owning $17,500 of it