Little news can sometimes have hidden implications, as we should all know by now. Wal-Mart has just announced that they will be “helping” some of their suppliers by allowing them to use their AA credit rating. In the deal, Wal-Mart’s suppliers can essentially “sell” their Wal-Mart invoices to Wells Fargo and Citigroup for basically instant cash.
What a deal right? Well, the story is a little more deep, and perhaps indicative than that. A spokesperson for Wal-Mart, Theresa C. Mercado, reported in a letter:
“We know that many of our suppliers are dependent upon factoring and financing companies that are reportedly in financial distress.”
Well duh. What a good time to capitalize like Wall Street’s elite? Think about the implications here.
- The supply chain is under stress from low sales by J.C Penny, K Mart, Sears, Macy’s and other competition for Walmart. What happens when vendors cannot get paid? They either need to find other clients, or borrow money right?
- What happens to CIT when they lose vendors to Wells and Citigroup? They continue a downward spiral, correct?
- What can happen when the small business or vendor credit lines are narrowed to only banks like Wells and Citigroup? These businesses become vulnerable to their own insolvency, correct? Meaning, they cannot sell invoices for K Mart to get cash, and their delinquent obligations are grounds to be turned down, right?
- What happens if the only place to get money to do business with Penny’s and other competitors to Wal-Mart, are resources largely in bed with Wal-Mart? They get turned down for loans, correct?
- With K Mart and other Wal-Mart competitors “in the soup” so to speak, with regard to cash flow and this potential supply side danger, who stands to benefit?
- With almost everyone losing, why is it that Wal-Mart is still winning? Is it because the poorer people get, the more the have to rely on Wal-Mart?
- Why is Wal-Mart aligned so closely with the two top banks implicated most in taking advantage of poor people?
Watch Every Move They Make
A lot of questions I know, but some that need to be looked at. Wal-Mart aligned with prime suspects in the Wall Street fraud? No huge surprise. Calling them prime suspects, is that good PR? Well, it is a valid suspicion for sure. These people have received billions in taxpayer money, been investigated for what amounts to international fraud, and still they keep pumping out the deals? At this point the reader should watch the video provided, an interview between Bill Moyers and Willian K, Black, a former regulator whose allegations have heightened awareness drastically and made some Wall Street firms mad enough to want him dead.
The bottom line for this article is, we need to start watching our backs very closely. Wal-Mart, or any winner in these times, needs to be scrutinized very carefully, lest the rest of the economy is shifted into the wrong hands. If you watch the following video, you can get and idea of the altruism we can expect from Wal-Mart. Interestingly, Wal-Mart and Warren Buffett (basically the owner of Wells Fargo) were linked in a sweat shop ownership ring.
The basis for this “scheme” is really the bankruptcy filing of one of the largest commercial lenders in the world, CIT Group Inc. Just so you know, CIT loans money to small and mid sized businesses worldwide, nearly a million of them. Walmart’s plan ostensibly? To “help” its clothing suppliers get their money faster, and keep the supply chain going. But, what about underlying reasons? Does Wal-Mart, Wells Fargo, or Citigroup do anything altruistic, or without some gain? Never. On the face of this deal, it looks as if a few small clothing manufacturers (probably in China) will get a helping hand, and be delivered from the instability of lenders like CIT (for CIT now in bankruptcy – this means lost business), but now other corporations are talking about following Wal-Mart’s lead. Hm?
Chess for Modern Robber Barons
Okay, so what is the problem? Well, for one thing Wells Fargo and Citigroup have been implicated in dozens of instances for alleged malfeasance in lending, not the least of which are what is called “predatory lending practice.” This is essentially lieing to borrowers to take more money from them. Without going into the long version of “evil corporate banking”, suffice it to say these people operate on a level which is only now come to your attention. the bottom line may just be, there is something else going on here. If the allegations made by Black are true, one only need investigate who supported Bush’s war on Wall Street regulation in order to track down the most evil people on the face of this planet.
Top Public Relations News:
Public Relations News From Berk Communications, Feintuch, Finn Partners and More..
Virginia uses sports to promote healing
MORNING BREW HITS ONE MILLION SUBSCRIBERS
Gecko Hawaii Partners With Riff Raff
SOCIAL MEDIA/MARKETING CAMPAIGN NEEDED BY WYOMING HEALTH
Digital Marketing RFP Issued By State of Illinois
DOLI Virginia Issues Marketing RFP
Getting Back to Basics for Effective Email Marketing
Viggle: Making TV a Part of Your Social Life
Roanoke Valley Broadband Authority Seeks Agency For Public Relations and Marketing Services