I had to do a double take when I read this, amazed considering there are about 160,000 jobs directly with GM alone in the United States, but now multiple major press sites are reporting Obama Denies Bail Out for GM & Chrysler
The White House says neither GM nor Chrysler submitted acceptable plans to receive more bailout money, setting the stage for a crisis in Detroit and putting in motion what could be the final two months of two American auto giants.
The Obama administration, however, has decided not to require the automakers to immediately repay government loan money they previously received, since that would force both companies into Chapter 11 bankruptcy.
The Zero Hegdge blog has quite the bombshell story, a trader anonymously spilled the beans on AIG being used as a funnel for U.S. taxpayer money to other banks. In layman's terms:
For those to whom this is merely a lot of mumbo-jumbo, let me explain in layman's terms:
AIG, knowing it would need to ask for much more capital from the Treasury imminently, decided to throw in the towel, and gifted major bank counter-parties with trades which were egregiously profitable to the banks, and even more egregiously money losing to the U.S. taxpayers, who had to dump more and more cash into AIG, without having the U.S. Treasury Secretary Tim Geithner disclose the real extent of this, for lack of a better word, fraudulent scam.
Go to Zero Hedge in link for the technical trading details of the post.
I hate to sound like a conspiracy person, but when it fits, it fits. Welcome to the New World Order. According to Bloomberg the G20 has committed to global regulation that would look like:
As most econo-geeks know by now, the Federal Reserve is monetizing treasuries in an effort to lower interest rates, which in theory should encourage people to borrow and spend.
“The Fed’s monetization of government borrowing is in economic terms a hugely powerful liquidity tool,” said Lena Komileva, head of Group of Seven market economics in London at Tullett Prebon Plc, the world’s second-largest interdealer broker. “It also helps to address investor fears, by depressing government yields and private sector borrowing costs and signaling a firm commitment by the Fed to keep monetary liquidity flowing for a long time.”
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Good Morning! Rise and Shine! Get that Cup O' Joe...
break out the O.J....hang out with the pooch...time to check out the Funnies!
Mark Fiore is one of my favorite cartoonists, but he still hasn't gotten embedding media down. Below are some select economics cartoons from his site. Click on the images to start the cartoons.
President Barack Obama's auto industry task force was expected to offer additional aid to General Motors Corp. and Chrysler LLC while setting firm deadlines for the companies to get concessions from their stakeholders.
Buried deep in the article detail paragraphs is this:
Both companies are trying to reduce their debt by two-thirds and convince the United Auto Workers union to accept shares of stock in exchange for half of the payments into a union-run trust fund for retiree health care costs. The loan agreement also called for executive pay cuts and labor costs that are competitive with Japanese automakers with U.S. operations.
In other words, going to almost Walmart wages for advanced manufacturing jobs.
Prof. Paul Krugman has generated some surprsing criticism from the likes of Barry Ritholtz and Bonddad for an article he posted the other day in the New York Times, entitled The Market Mystique:
Here are the crucial paragraphs:
Above all, the key promise of securitization — that it would make the financial system more robust by spreading risk more widely — turned out to be a lie. Banks used securitization to increase their risk, not reduce it, and in the process they made the economy more, not less, vulnerable to financial disruption.
....
I don’t think this is just a financial panic; I believe that it represents the failure of a whole model of banking, of an overgrown financial sector that did more harm than good. I don’t think the Obama administration can bring securitization back to life, and I don’t believe it should try.
It's Friday Night! Party Time! Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!
I'm in a fairly foul mood about what is going on with Obama policy despite so many shouting from the roof tops this is not what they voted for...
So, I thought a stroll down history lane on how while WWII raged on U.S. and British banks were doing business with Hitler was in order to set the tone.
Capitalism is based on competition of a variety of competitors, without competition there is no free market, but only a market for the too big to fail, without real competition capitalism is a combination of firms allied in monopoly to exterminate competition and control prices a trust that controls the liberty of the market, that shackles the rights of consumers, and holds the economy hostage to ransom by the self called best and brightest that crashed the system.
Let us not confuse liberty with freedom or worse with libertine license to satisfy our whim and abuse the rights of the rest. Liberty is the result of Justice protecting the weak, avoiding enslavement of the most vulnerable, shaking the yoke of servitude, on the other hand freedom is the total absence of restraint or lack of restraint.
It's Friday Night! Party Time! Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!
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