This story is precious, in the New York Times article, Debt Linked to Buyouts Tightens the Economic Vise , they reveal that private equity firms bought out various companies on debt which is now coming due.
Private equity firms embarked on one of the biggest spending sprees in corporate history for nearly three years, using borrowed money to gobble up huge swaths of industries and some of the biggest names — Neiman Marcus, Metro-Goldwyn-Mayer and Toys “R” Us.
The new owners then saddled the companies with the billions of dollars of debt used to buy them. But now many of the loans and bonds sold to finance the deals are about to come due at the worst possible time.
A number of financial experts now fear that the federal government's $143 billion attempt to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing.
Great, now that AIG has already received over $143 billion taxpayer dollars it still maybe tettering on bankruptcy
Greetings folks to this special election installment of Manufacturing Monday! Today the big economic figure we're going look at will be the ISM survey on Manufacturing, but afterwards I want to share a bigger story. Now I understand most of us, if not all, are either voting for Barack Obama and/or straight Democratic ticket. But why? Well we can cite environmental reasons, the GOP simply don't get climate change. We can cite civil rights reasons, one need only look up Guantanamo on the map. There's the war in Iraq and America's current imperial ambitions. But we also can cite economic reasons.
I'm going to make a diary for this, but I thought I would put it up for discussion in the meantime.
WASHINGTON – The government, raising cash to pay for the array of financial rescue packages, said Monday it plans to borrow $550 billion in the last three months of this year — and that's just a down payment.
Treasury Department officials also projected the government would need to borrow $368 billion more in the first three months of 2009, meaning the next president will confront an ocean of red ink.
The nonpartisan Committee for a Responsible Budget estimates all the government economic and rescue initiatives, starting with the $168 billion in stimulus checks issued earlier this year, total even more — an eye-popping $2.6 trillion.
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In Pennsylvania, PPL Corp. increased shutoffs by 78% in the first three quarters of the year compared with the same period a year earlier
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In Memphis, Tenn., the city-owned utility that supplies electricity, natural gas and water to residents cut off 38% more people in the first eight months of the year
Bear in mind that when the MNBA bill, oops I mean bankruptcy reform passed in 2005, this stopped many people from being able to get out of their debts.
The Institute for Supply Management's factory index fell to 38.9 from 43.5 in September; 50 is the dividing line between expansion and contraction. The Commerce Department said separately that construction spending fell for the eighth time in 10 months in September
There has been enormous campaign rhetoric on tax incentives to offshore outsource American jobs. But can corporate tax policy alone really do much?
Firstly, what are Politicians even talking about? When corporations keep profits in a foreign country, they don't pay taxes on that money in the United States. A reasonable explanation:
Ok, I know I'm late on the humor thing this past weekend. But a friend gave me this, who I may add is more anti-trade than you are Robert! Anyways, he showed me this comic strip, I thought it was funny.
The two Presidential campaigns have now spent $1 billion dollars.
That's $8 dollars per vote
Doesn't even including the primary season and additional money, this is just Obama and McCain.
Too much to put under the mattress: All the presidential candidates in the 2007-2008 contest took in $1.55 billion, nearly twice the amount collected by candidates in 2004 and three times the amount from 2000. The total includes fundraising for the primaries as well as the general election.
The total is almost the same as what the Federal Trade Commission says food and beverage companies spend in a year marketing their products to children.
You ever have one of those weeks? You know, where one bad thing leads to another. That, by Wednesday you wish it were Friday, and by Friday you wish it were Saturday? One of those weeks that could be summed up with those three words....what..the...fuck? That, my dear Economic Populists, has been my week. So why bring that up at all? I feel I owe you all an apology. You see, every week I put out my little cruddy column, Manufacturing Monday (or Tuesday), yet this week nothing came out. Now I know I'm not one of the better bloggers out there on the web. Far from that, and I know my econ stuff isn't the best either, that goes to the two folks who I think are the kings of that, Bonddad and Jerome a Paris. I'm a piece of crap compared to them, a rookie, a guppy, a greenhorn, a Padawon Jedi Learner, well you get the idea.
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