March 2009

Obama Releasing Trade Policy - Push for Panama?

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Supposedly today the USTR office of the Obama administration is releasing a new trade policy agenda. Bloomberg is reporting:

President Barack Obama plans to ask Congress to approve a long-delayed free-trade agreement with Panama and establish “benchmarks” so that accords with South Korea and Colombia can be ratified in the future, a report said.

In its first annual report on trade policy, the Obama administration also said that it plans to ask Mexico and Canada to rework provisions of the North American Free Trade Agreement.

“If we work together, free and fair trade with a proper regard for social and environmental goals and appropriate political accountability will be a powerful contributor to the national and global well being,” said the report, which was released by the U.S. Trade Representative’s office.

What Real Residential Investment's Cliff-SPLAT! indicates about the Recession

We all know by now that the economy is cliff-diving. Many bloggers can ably describe the dive in progress. One of the distinguishing things I have been trying to do over the last year is to look ahead to determine, "Where is the bottom of the cliff, and When do we get there?" Unlike most recessions, which might be described as bungee-jumps, where you get to the bottom and rebound quickly, this recession heralds a secular change, as housing and financial bubbles burst. In those circumstances, typically there is a crash or cliff-diving stage (also described by Russ Winter as the "guillotine" phase) followed by a slower, more sideways, grinding stage (described by Russ Winter as the "sandpaper" stage). Or, as I've described it many times, a Slow Motion Bust.

A more visual depiction of such crashes is to liken them to going over the American falls. First there is the free-fall, then the bouncing to the bottom of the rubble. For example, in my last blog, I noted how new home sales almost had to be nearing the bottom of the cliff. Or, visually:

Enough of Everything but Dollars - The Money Party at Work

Enough of Everything but Dollars

The Money Party at Work

Michael Collins

The government bailout of failed financial institutions locks you into years of debt payments in behalf of the large private banks, debts that you did not create.

By all appearances, it also locks the country into years of a weak economy.  That means unemployment, underemployment, and more suffering for those willing to work, but left out of the job market.  It means lowered opportunities for those who do work and troubles for dependants and indigents.  Vital national priorities including affordable health care and the massive effort required to save everyone form calamitous environmental catastrophes are now on hold or under funded.

Ladies - You are not Getting Equal Pay for Equal Work, Scream Loudly ok?

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The New York Times asks the simple question, Why Is Her Paycheck Smaller? :

Nearly every occupation has the gap — the seemingly unbridgeable chasm between the size of the paycheck brought home by a woman and the larger one earned by a man doing the same job.

It doesn't matter where the job lies on the income spectrum: all but a handful fall below the bar of equal pay. The percentage gap is about the same for lower-wage workers, like medical assistants, as it is for higher-wage workers, like physical therapists.

They have a nice, interactive graph which shows the details on the wage gap.

The article states the reason is good old fashioned discrimination but then refers to personal choices.

Throwing Good Money After Bad - AIG gets another $30 billion

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AIG may get another $30 Billion.

AIG has already received $150 billion to back $300 billion in derivatives contracts.

The Wall Street Journal gives a little more detail:

The new funding is intended to support AIG as it absorbs $60 billion in quarterly losses and operational and competitive upheaval. Under the plan, the insurer will repay much of the $40 billion it owes the Federal Reserve loan with equity stakes in two AIG units overseas -- Asia-based American International Assurance Co. and American Life Insurance Co, which operates in 50 countries.

Repayment was originally supposed to be in cash with interest. In addition, AIG will securitize $5-$10 billion in debt, backed with life insurance assets, to further reduce its debt burden.

Sunday Morning Comics - Consumerism Edition

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Sponsored by The Debt Collector's Job Creation Program - Our Economy is 70% shopping. To qualify, for retraining, shop with your favorite failed bank credit card and in a few months new debt collection jobs will be created!
Cup O' Joe

 

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!

 

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