Cisco to Cut Workforce by 11,500

gdonovan said:
You implied the choices were full regulation or no regulation at all, which isn't the case.

Consider that the state has a mandated inspection program for vehicles. Since this gets the junkwagons that are unsafe off the road I'm all for it. I would not be all for it if the state mandated inspections every 6 months and the inspections were harder to pass each time.
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I was simply looking for an example of just ONE regulation that you thought wasn't a corrupt government conspiracy, maybe I missed it earlier, question answered, thanks.

gdonovan said:
Your kidding right? In 2009 alone 50% of all sub-prime adjustable rate mortgages (ARMs) were in arrears or foreclosure.

http://davidkirkpatrick.wordpress.com/2009/03/06/mortgage-default-rates-stunning/

The banks bundled the loans and got rid of them, they knew the loans were bad.
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Yes, this correct but doesn't refute what I said because CRA loans aren't sub-prime, the CRA isn't even mentioned in the article you linked.

I used to deal with bad mortgages for a living by developing decisioning software for dealing with them, I know this stuff VERY WELL.;)
 
heatlesssun said:
Yes, this correct but doesn't refute what I said because CRA loans aren't sub-prime, the CRA isn't even mentioned in the article you linked.
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When I state "CRA" I'm refering to the Community Reinvestment Act, signed under law by Jimmy Carter and supercharged under Bill Clinton.

Under Clinton banks were forced under threat of FBI investigations (and other arm twisting) to give loans they knew for a fact were bad.

http://www.city-journal.org/html/10_1_the_trillion_dollar.html
 
gdonovan said:
When I state "CRA" I'm refering to the Community Reinvestment Act, signed under law by Jimmy Carter and supercharged under Bill Clinton.

Under Clinton banks were forced under threat of FBI investigations (and other arm twisting) to give loans they knew for a fact were bad.

http://www.city-journal.org/html/10_1_the_trillion_dollar.html
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I've had this discussion with plenty of folks and this is far from the first time heard about the CRA. I never said the CRA was perfect, I said that whatever problems that were there simply were not any where near enough to cause or have a tangible impact on the housing crisis. Every CRA loan going bad would have been MUCH better than what actually happened.

Again, I dealt with the processing of bad loans for two years, we tracked all sorts of data points on these loans, if they were CRA, VA, etc. You can believe what you want to believe, that is your right. I saw the cold hard facts behind bad mortgage loans with my own eyes so you'll have to pardon me if I choose to believe what I saw with my own eyes at the source.

I could tell you that CRA loans went bad right and left but that simply wouldn't be substantiated by the data that I saw at one of the nations largest mortgage lenders that makes CRA loans and that's actually still around and doing very well for a bank these days. I don't know what else to say about the matter.
 
heatlesssun said:
I've had this discussion with plenty of folks and this is far from the first time heard about the CRA. I never said the CRA was perfect, I said that whatever problems that were there simply were not any where near enough to cause or have a tangible impact on the housing crisis.
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Canada isn't having the same housing crisis we are for some reason..

The number of defaults on homes related to CRA (and Fannie and Freddie) is staggering.

Why both are still allowed to operate is beyond understanding eh?
 
Again, the vast majority of CRA loans are conventional 30 year fixed rate mortgages. The vast majority of mortgages that started the foreclosure cascade were unconventional ARMs.

The Financial Crisis Inquiry Commission reported in January 2011 that "the CRA was not a significant factor in subprime lending or the crisis. Many subprime lenders were not subject to the CRA. Research indicates only 6% of high-cost loans—a proxy for subprime loans—had any connection to the law. Loans made by CRA-regulated lenders in the neighborhoods in which they were required to lend were half as likely to default as similar loans made in the same neighborhoods by independent mortgage originators not subject to the law."[92]
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[ame="http://en.wikipedia.org/wiki/Subprime_mortgage_crisis"]Subprime mortgage crisis - Wikipedia, the free encyclopedia@@AMEPARAM@@/wiki/File:Lending_%26_Borrowing_Decisions_-_10_19_08.png" class="image"><img alt="" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/24/Lending_%26_Borrowing_Decisions_-_10_19_08.png/220px-Lending_%26_Borrowing_Decisions_-_10_19_08.png"@@AMEPARAM@@commons/thumb/2/24/Lending_%26_Borrowing_Decisions_-_10_19_08.png/220px-Lending_%26_Borrowing_Decisions_-_10_19_08.png[/ame]

In other words if ALL subprime mortgages had been underwritten by the same standards as most CRA loans its possible that this housing bubble may have NEVER occurred or at least been greatly diminished. But of course it's all a government cover up. Only conspiracy theorists who have never worked in the mortgage industry know what's going on. But it is easier to blame poor people for the problems caused by the excesses of the rich as poor people can't defend themselves as well.

One the issue of Fannie and Freddie however I'm more inclined to believe that there were HUGE problems there and indeed the consensus with mainstream left and right politicians is that they cannot continue to exist in their current form at the very least. However until there is something put in place to replace them to form a new secondary market even right leaning politicians aren't motivated to abolish Fannie and Freddie as they'll have a tough time explaining to their constituent non-CRA home mortgage seekers why they can't get a home loan for under 7% even with perfect credit and a 20% down payment.
 
mullet said:
Well if we had the right leadership in the white house maybe so many companies wouldn't be laying off.
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I would beg to differ, over the last 10 years its been one giant bubble building with all of these companies. US government is so fractured and these small groups have so much hate for one another; they're willing to ruin the country just to win more power.

If you paid much attention through history the governing bodies are filled with people from large corporations and businesses (special interest) that are in charge of regulating the very industry their from. Their only real goal is to provide favors to their friend and shave off a little for themselves NO MATTER WHO is in the oval office.

It is absolutely ridiculous for one to believe the economy can be turned around in just a year, or even two when this bubble has been building for 10-30 years.

There are layoffs because these companies still want to produce unrealistic profits for their share holders on top of providing large bonuses to those at the top.

Today's economy its much like the chicken or the egg debate, companies need consumers before they'll hire, people need jobs before they can be consumers. Which will happen first...
 
In general, regulation is a poor substitute for the lack of circuital thinking skills and knowledge of the worker's job requires it.

For example, the National Electrical Code can't prevent accidents or fires if the workmanship or the equipment is subpar.
 
The price of Cisco equipment could be too much for small businesses. Some may not be able afford four figures for a router or switch.
 
I am a contracted employee for Cisco (have been now for over 2 years); I think that this number does not include people like me and so the numbers may be even greater! I work with a lot of direct employees who are sure to get the boot, I really feel for many of these folks.

One thing's for sure, Cisco's sitting on a lot of money and not doing much with it. Meanwhile the competition is eating away at what profits remain. I know the company's not in danger of going under or anything but some serious planning and execution needs to take place and in short order. The speed of execution and blind followerships I think have traditionally been a major problem with the company; many like to blame these on leadership.
 
MrSneis said:
I am a contracted employee for Cisco (have been now for over 2 years); I think that this number does not include people like me and so the numbers may be even greater! I work with a lot of direct employees who are sure to get the boot, I really feel for many of these folks.

One thing's for sure, Cisco's sitting on a lot of money and not doing much with it. Meanwhile the competition is eating away at what profits remain. I know the company's not in danger of going under or anything but some serious planning and execution needs to take place and in short order. The speed of execution and blind followerships I think have traditionally been a major problem with the company; many like to blame these on leadership.
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yup
i think people would be shocked at how much it handed off to ch reynolds.
 
EngrChris said:
The price of Cisco equipment could be too much for small businesses. Some may not be able afford four figures for a router or switch.
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I personally see that being part of what is hurting Cisco; HP, Juniper, Extreme, etc all provide the same solution at much lower TCO. It's similar to what is happening in the Storage market with EMC2, their products are expensive and Dell is under cutting the hell out of them with their Equallogic line, sure EMC2 has more features, but at 2-3 times the cost when most can get buy with out them and EMC2's SAN management learning curve (just from those starting out). EMC2 even came out with a lowerend SAN just to get into the smaller markets.

We've replaced quite a few pieces of Cisco hardware with Juniper, plus side was they're similar in config.
 
heatlesssun said:
In other words if ALL subprime mortgages had been underwritten by the same standards as most CRA loans its possible that this housing bubble may have NEVER occurred or at least been greatly diminished. But of course it's all a government cover up. Only conspiracy theorists who have never worked in the mortgage industry know what's going on. .
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http://www.investors.com/NewsAndAnalysis/Article/577794/201107081851/DOJ-Begins-Bank-Witch-Hunt.aspx

"In several cases, the government has ordered bank defendants to post in all their branches and marketing materials a notice informing minority customers that they cannot be turned down for credit because they receive public aid, such as unemployment benefits, welfare payments or food stamps."

You were saying?
 
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