TRC Worldwide asks for bailout funds for its troubled truckers pension

May 15, 2009 by · Leave a Comment
Filed under: Industry News 

Not much longer that I published that last article then did I see this Reuters story come over the wire about a trucking company needing a bailout for its retirement pension because of bad investments in either CMBS (Real Estate) or CDS (Debt Insurance) type financial instruments. 

The more these reports keep coming out, the more I can feel the coming bout of inflation coming because of the massive money printing that is taking place which will push our trading partners to increase their prices on wholesale goods to compensate for our reckless social policy of bailing out no matter if they were doing the right or wrong choices at the time.   It is pretty sad the precedence this country has set for itself.  I can just see the next crisis coming up once the dust settles and greed kicks in to find another way to exploit the system.  

News (Reuters):

Struggling No. 1 U.S. trucking company YRC Worldwide Inc. plans to seek $1 billion in bailout money from the Troubled Asset Relief Program to help it cover pension obligations, a move analysts say is unlikely to succeed as the company has no financial charter.

“YRC’s chances (of a TARP bailout) are probably zero,” Joshua Rosner, managing director of independent research firm Graham, Fisher & Co. said on Friday “Without a financial charter in their holding company it will be impossible for YRC to obtain TARP funds.”

The U.S. Treasury Department’s $700 billion TARP has thus far been devoted mainly to capital investments in financial firms, support for housing rescue program, backing for Federal Reserve lending companies and aid for the auto industry.

The $35.6 billion allocated largely to prop up General Motors Corp and Chrysler LLC includes a $5 billion financing program for suppliers that is administered through the two automakers.

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