November 2008

FDIC now backing all long-term bank debt

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Combine this announcement with the Federal Reserve already being the lender of last resort for all short-term corporate lending, and we have the taxpayer now backing the entire financial system.

WASHINGTON (AP) -- The FDIC will guarantee up to $1.4 trillion in U.S. banks' debt for more than three years as part of the government's financial rescue plan.

The directors of the Federal Deposit Insurance Corp. voted Friday to approve the plan, which is meant to break the crippling logjam in bank-to-bank lending.

The FDIC will provide temporary insurance for loans between banks -- except for those for 30 days or less -- guaranteeing the new debt in the event of payment default by the issuing bank.

Friday Movie Night - Roger & Me

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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!

 

Roger & Me

GM, along with Ford and Chrysler are now asking for $25 Billion dollars. We are hearing devastating reports of 3 million jobs lost, 4% decline in US GDP, in other words a tail spin cocktail for a bad economy, if GM or the US automakers were allowed to go into Chapter 11 bankruptcy.

 

With the Auto Bail Out theme, I thought it appropriate to show Michael Moore's famous documentary Roger & Me.

 

Google video has the entire documentary online to watch. (click the link). Note, you can watch this full screen.

If you have not seen this it's a treat and if you have, notice some of the same similarities. Pets or Meat!

UPDATE 8 : NEWSFLASH: Geithner nomination and the return of Lawrence Summers?

NBC is reporting that Federal Reserve Bank of New York President, Timothy Geithner has been nominated by President-elect Obama to be the new Treasury Secretary.

As new developments occur, I will update. Below is a brief from Wikipedia about the nominee.

After completing his studies, Geithner worked for Kissinger and Associates in Washington, DC, for three years and then joined the International Affairs division of the US Treasury Department in 1988.

In 1999 he was promoted to Under Secretary of the Treasury for International Affairs and served under Treasury Secretaries Robert Rubin and Lawrence Summers.

Obama Picks Cheap Labor & Guest Worker Queen Janet Napolitano for DHS!

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What bodes ill for United States Technical and Science Professionals is Obama's choice for Department of Homeland Security, AZ Governor Janet Napolitano.

So much for change right? So much for the United State middle class or U.S. workers!

Computerworld points out DHS controls the guest worker Visas, including H-1B.

United States Set to Lose Global Dominance

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There is a new report by the National Intelligence Council which concludes the United States global dominance in economic strength, political and even military power is set to wane.

Which countries will take it's place? Why the very countries we offshore outsourced our jobs to!

The National Intelligence Council (NIC) predicts China, India and Russia will increasingly challenge US influence.

It also says the dollar may no longer be the world's major currency, and food and water shortages will fuel conflict.

If the United States Dollar is no longer the reserve currency, this causes all sorts of problems, as described in the referenced post for the United States, especially running massive deficits.

labor and manufacturing process for autos

Does anyone know where I can find out about the manufacturing process of each of the automakers? I want to learn, from start to finish, how a car or truck is made by each of the companies. Right now, I'm thinking of visiting several plants, if that is even doable. The reason is I'm doing research for a series I plan on doing for Economic Populist. Any assistance would be greatly appreciated.

China: employment situation turning "grim"

In the US voters opted for "Change we can believe in". In China, according to Bloomberg, workers are taking a rather more direct route:

Labor strife is a ``top concern'' as the job outlook turns ``grim,'' Yin Weimin, head of the Ministry of Human Resources and Social Security said today at a briefing....

It's a ``challenge to the regime's legitimacy when economic growth slows,'' said Joseph Cheng, a politics professor at City University of Hong Kong....

``People losing their jobs could well lead to more protests,'' said Kevin O'Brien, a professor of political science at the University of California, Berkeley ....
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A survey of 84 cities showed demand for workers fell 5.5 percent in the third quarter, the first decline in years....
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