The Angel got his wings people. How come we never talk about that as much?

The Bailey Building and Loan did not encourage leveraging. Instead they were building houses and undercutting the market. Every garlic-eater who moved into Bailey Park had positive equity from the day Mary handed him that first loaf of bread. I didn’t hear anything in that movie about second mortgages or consolidation of mortgages into tradable commodities. The Baileys were about building houses, and added value to the process at every turn.

gridlock2 on December 24, 2008 at 4:57 PM

Hey, I like garlic. :)

I love the movie. But George Bailey was selling the houses for less than the cost to build them, not a good business practice. I have seen the movie hundreds of times and that part never made sense to me.

calgrammy on December 23, 2008 at 10:11 PM

George Bailey was not selling the houses for less than the cost to build them, he was loaning people money for building and mortgages (which he got from deposits made by others) and taking a small cut. The houses were worth twice as much as they cost to build, they did not cost twice as much as Bailey charged. Here is the exchange you mention in the movie, between Mr Potter and Mr Reineman (Potter’s rent collector and eviction expert) — read it carefully:

REINEMAN, pointing to map: Fifteen years ago, a half-dozen houses stuck here and there. There’s the old cemetery, squirrels, buttercups, daisies. Used to hunt rabbits there myself. Look at it today. Dozens of the prettiest little homes you ever saw. Ninety per cent owned by suckers who used to pay rent to you. Your Potter’s Field, my dear Mr. Employer, is becoming just that. And are the local yokels making with those David and Goliath wisecracks!

POTTER: Oh, they are, are they? Even though they know the Baileys haven’t made a dime out of it.

REINEMAN: You know very well why. The Baileys were all chumps. Every one of these homes is worth twice what it cost the Building and Loan to build. If I were you, Mr. Potter . . .

POTTER interrupts: Well, you are not me.

REINEMAN, leaving: As I say, it’s no skin off my nose. But one of these days this bright young man is going to be asking George Bailey for a job.

The Bailey Building and Loan did not encourage leveraging. Instead they were building houses and undercutting the market. Every garlic-eater who moved into Bailey Park had positive equity from the day Mary handed him that first loaf of bread. I didn’t hear anything in that movie about second mortgages or consolidation of mortgages into tradable commodities. The Baileys were about building houses, and added value to the process at every turn.

Or has General Motors spun off its profitable lending business, and kept its less-profitable car-making business?

Did anyone else enjoy the old SNL skit where George Bailey (played by Dana Carvey, I think), after Clarence got his wings, remembered where he left the money, then he and the rest of the town found Potter, and beat the sh*t out of him?

I remember that! Thanks for the memories…

An aside to Liz Gunnison, writer of the article about which we’re talking about: George Bailey ran the Bailey Building and Loan. The S&Ls came later.

Count to 10 on December 24, 2008 at 10:51 AM

So the first 220 years of this country were pure collectivist crap? Up until the mid 90′s businessmen honored their commintments to community and workers. It was only since about the mid 90′s that unrestrained greed took over and the bottom line was the end all be all. And how is that bottom line thinking working for the big companies? Were employees no longer have any loyality to the company, where the products are no longer top notched? where companies have forgotten the saying it takes money to make money. Being cheap and greedy is a good way to run your business into the ground just ask GM and F and GE.

Major difference from today’s reality–the townspeople VOLUNTARILY bailed out George Bailey out of gratitude for his earlier generous loans to THEM. Today’s taxpayers are FORCED to bail out Fannie and Freddie who made too-generous loans to OTHER PEOPLE.
Steve Z on December 24

Well said.

Major difference from today’s reality–the townspeople VOLUNTARILY bailed out George Bailey out of gratitude for his earlier generous loans to THEM. Today’s taxpayers are FORCED to bail out Fannie and Freddie who made too-generous loans to OTHER PEOPLE. Would the townspeople in that movie have forked over their hard-earned money to bail out an unknown bank halfway across the country? Probably not, but the Government shoved this bailout down our throats…

There are many Potters in our midst–Madoff for one. There are many George Baileys in our midst–local businesses who keep their prices reasonable to keep customers coming back. Trouble is, there’s no Clarence on the horizon.

If GM and F and the other companies that are shipping jobs offshore

Everybody’s favorite whipping boy, Detroit. Like Toyota wouldn’t close down all their US plants if they could make more money importing those cars?

In the spirit of the season, from Detroit, which reinvented itself in 1940-41 and will do it again:

…at a rolling donut.

…and the horse you rode in on.

And yes, I’ll choke up in the end.

Best Cheers teaser ever: Scene opens in the bar, with “It’s a Wonderful Life” playing on the TV and Carla (and everyone) going, “Oh, not that old chestnut again! Boring! Turn on some sports” (or words to that effect). Cut to: “Every time a bell rings, an angel gets his wings!” “That’s right, Zuzu. Attaboy, Clarence.” [Carla, sniffling] [Everyone in bar, sniffling]

Funny. And true.

unseen on December 23, 2008 at 10:44 PM

Pure collectivist crap.

You can tell when it is a very slow day in the life of your typical columnist.

pilamaye on December 24, 2008 at 10:04 AM

The sun comes up in the morning?

Seven Percent Solution on December 23, 2008 at 11:54 PM

I’m glad that someone pointed out the difference.

Not only did George Bailey KNOW the character of his borrowers, he indicated that the taxi driver was credit worthy (he mentions salary, etc.). Potter wanted to use some other form of credit analysis – probably based on family status. Potter was leaving money on the table.

Also, the Building and Loan established valuable good will with the people. I think the movie demonstrates the value of that quite well.

Those that are making these statements about Potter being right don’t understand business enough to make those claims.

The true light that gives light to every man
was coming into the world.
In him was life, and that life was the light of men.
The light shines in the darkness,
but the darkness has not understood it.
(John 1:9, 5-6)

Quote of the day, FIFY.

Case in point: The certified doofus who actually spent/wasted the time and energy to actually put together this crazy off the wall piece of crap and somehow, some way, got it published.

Guess it was a very slow day for the Editor as well.

The thing of it is, George was solvent until Potter stole the Building and Loan’s money. George would have never needed a bailout but for that.

abcurtis on December 24, 2008 at 7:31 AM

It’s always the ones at the top who are the biggest ripoffs. Them and hippies.

Beto Ochoa on December 24, 2008 at 8:15 AM

Yeh … Hippies get free dope in Cali, International Bankers get baled out for doing bad business. Everybody’s happy.

The thing of it is, George was solvent until Potter stole the Building and Loan’s money. George would have never needed a bailout but for that.

abcurtis on December 24, 2008 at 7:31 AM

It’s always the ones at the top who are the biggest ripoffs. Them and hippies.

If only Osama Obama had been around back then! George Bailey would never have had a worry. There would have been bailouts for all, and he could have pocketed his multi-million dollar bonus, paid for by the taxpayers, without a care.

MrScribbler on December 23, 2008 at 11:32 PM

The thing of it is, George was solvent until Potter stole the Building and Loan’s money. George would have never needed a bailout but for that.

Perhaps Mr. Potter wasn’t just a heartless Scrooge.

Correct. He was a common criminal and committed a felony by not returning the money Uncle Billy left on the counter.