Short term credit funding in the credit markets today is 20-30%
Long term they are paying 6-12%
Overnight bank to bank lending....7%.... That is an all time high... it's actualy 6.8something%
Tuesday, September 30, 2008
Microsoft, Schering-Plough See `Entire Economy' in Jeopardy
Sept. 30 (Bloomberg) -- Officials from microsoft to office depo and Schering-Plough Corp. said the government's failure to bail out the U.S. banking industry put the ``entire economy'' at risk unless a deal comes soon.
``The various sectors of the economy are so intricately linked, we need to recognize that the entire economy turns on what happens here,''
The liquidity crisis has spread beyond Wall Street, threatening earnings at businesses from retailers to technology companies. The Treasury's toolkit to protect the financial system is ``substantial but insufficient'' after the $700 billion bailout failed to pass, Paulson said yesterday.
``I absolutely cannot believe it,'' said David Cosper, chief financial officer of Sonic Automotive Inc., the third- largest U.S. publicly traded auto retailer. ``I don't think the House knows what they're doing. We need this, the markets are frozen, banks are being taken over -- it's a crisis. I think they're leaving it in the lurch and going on a break.''
``We are witnessing a most unfortunate and untimely collision of politics and economics,'' Miller said. ``This is not just about Wall Street. It is affecting Main Street. Bold action is required before there is further erosion of confidence.''
What a bunch of Whiny baby's right?.... They don't know anything about buisnsess..... It's all these Wall Street Fat cats...this is good for the economy..... Right?
``The various sectors of the economy are so intricately linked, we need to recognize that the entire economy turns on what happens here,''
The liquidity crisis has spread beyond Wall Street, threatening earnings at businesses from retailers to technology companies. The Treasury's toolkit to protect the financial system is ``substantial but insufficient'' after the $700 billion bailout failed to pass, Paulson said yesterday.
``I absolutely cannot believe it,'' said David Cosper, chief financial officer of Sonic Automotive Inc., the third- largest U.S. publicly traded auto retailer. ``I don't think the House knows what they're doing. We need this, the markets are frozen, banks are being taken over -- it's a crisis. I think they're leaving it in the lurch and going on a break.''
``We are witnessing a most unfortunate and untimely collision of politics and economics,'' Miller said. ``This is not just about Wall Street. It is affecting Main Street. Bold action is required before there is further erosion of confidence.''
What a bunch of Whiny baby's right?.... They don't know anything about buisnsess..... It's all these Wall Street Fat cats...this is good for the economy..... Right?
Monday, September 29, 2008
I'm not sure if this is good for the economy
Story
"The credit crunch is sucking liquidity out of global trade and the shipping business, leaving cargoes stranded on docks"
"The demand for goods is there; there is just not enough liquidity to move those goods around."
"It has happened to us and it is happening everywhere to everyone," he said. "The whole system has come to a state of chaos."
I don't know about anyone else... but I think being unable to ship goods around the world is a problem for not only our, but for the global economy.
But I do hear It's all Ok I hear... this is good to clean out the system.... We don't need Imports or exports... We can survive without them....
No worries The House has adjourned till Thursday..... and you can count that they will be right on top of this... like they have for the 2 years "The market" has been flashing red at them, and they have been ignoring it.
I have faith that once unemployment hits 20% they will do something...
We will be fine, it's a good thing..... I hear.
"The credit crunch is sucking liquidity out of global trade and the shipping business, leaving cargoes stranded on docks"
"The demand for goods is there; there is just not enough liquidity to move those goods around."
"It has happened to us and it is happening everywhere to everyone," he said. "The whole system has come to a state of chaos."
I don't know about anyone else... but I think being unable to ship goods around the world is a problem for not only our, but for the global economy.
But I do hear It's all Ok I hear... this is good to clean out the system.... We don't need Imports or exports... We can survive without them....
No worries The House has adjourned till Thursday..... and you can count that they will be right on top of this... like they have for the 2 years "The market" has been flashing red at them, and they have been ignoring it.
I have faith that once unemployment hits 20% they will do something...
We will be fine, it's a good thing..... I hear.
friend just emailed me
"do you think there should be a bail-out"
"You better hope so, cause when the school district has to cut back, because of the loss of tax base... Guess who is on the short list for seniority"
"You better hope so, cause when the school district has to cut back, because of the loss of tax base... Guess who is on the short list for seniority"
WOW do I know how to see asshatery comming
Fun fun fun....
I hope some of our banks can survive
After over the weekend the 2 largest banks in the country, have failed.... Jeez I sure hope that if that doesn't keep happen. the cascading effects aren't bad..... and don't spread to all the credit unions.
Lets all cross our fingers and Pray.....
Here is the Roll call vote
If things get bad in the next few years...... we can all do some very useful finger pointing at Matheson and Bishop.
No worries, hey apparently they are going to find some stop gap matter to unfreeze the largest credit markets in the world.
Cross your fingers and hope and dream kids....
I hope some of our banks can survive
After over the weekend the 2 largest banks in the country, have failed.... Jeez I sure hope that if that doesn't keep happen. the cascading effects aren't bad..... and don't spread to all the credit unions.
Lets all cross our fingers and Pray.....
Here is the Roll call vote
If things get bad in the next few years...... we can all do some very useful finger pointing at Matheson and Bishop.
No worries, hey apparently they are going to find some stop gap matter to unfreeze the largest credit markets in the world.
Cross your fingers and hope and dream kids....
Sunday, September 28, 2008
You know it's the end of the world when...
(you have to take this tongue-n-cheek, as much as an atheist as I am).
When Moveon.org is on the same side as the house republicans....
it's best to break out the tinfoil hats.
When Moveon.org is on the same side as the house republicans....
it's best to break out the tinfoil hats.
This is fun
With all the market drama,.... I tell you here is a signal of sentiment for a significant low.
An old girlfriend, called me thursday or friday. I guess she wanted to talk about the market. Or not so much, she probably wants to get back together.
Funny I told her she needed to take her 401K defensive last year, and she was all "Oh I forgot, until like June."
What is funny is she was calling me, after she broke up with me.. Last june....
Why did we break up?
Well I'm just a hoot.... I go to bed at like 9pm if I'm staying up late, Get up at 3am. I like to sleep with cnbc on... or not so much like to, but end up doing it. And I take a lot of naps.
Oh... and when I'm not doing all that, I like to watch documentaries.
Beyond all that, I tend to be anti-social... and irritable with people.... Which reminds me. I was out having lunch at a bar yesterday... Well not so much a bar, but one of those stupid "fudrucker" like places, that make my skin crawl. But I'm at the bar, and people try and have conversations with me.
This is what I said in the course of lunch.
I told one person that "When he was in Kindergarten, he must not have learned that lesson 'keeps hands to self' "
Then the bartender, she was talking about how huge her daughter was, but in height and girth. I Told her it was all the steroids in the Meat, and how they grow the cows all big and fat, of course what you feed the cows to, become the same way. "Oh", She said. Then I commented, "you will think "Oh!" when she then develops massive emotions problems, as a side effect. But don't worry they will sell you even more drugs for that.
Yep.... I'm a hoot.
An old girlfriend, called me thursday or friday. I guess she wanted to talk about the market. Or not so much, she probably wants to get back together.
Funny I told her she needed to take her 401K defensive last year, and she was all "Oh I forgot, until like June."
What is funny is she was calling me, after she broke up with me.. Last june....
Why did we break up?
Well I'm just a hoot.... I go to bed at like 9pm if I'm staying up late, Get up at 3am. I like to sleep with cnbc on... or not so much like to, but end up doing it. And I take a lot of naps.
Oh... and when I'm not doing all that, I like to watch documentaries.
Beyond all that, I tend to be anti-social... and irritable with people.... Which reminds me. I was out having lunch at a bar yesterday... Well not so much a bar, but one of those stupid "fudrucker" like places, that make my skin crawl. But I'm at the bar, and people try and have conversations with me.
This is what I said in the course of lunch.
I told one person that "When he was in Kindergarten, he must not have learned that lesson 'keeps hands to self' "
Then the bartender, she was talking about how huge her daughter was, but in height and girth. I Told her it was all the steroids in the Meat, and how they grow the cows all big and fat, of course what you feed the cows to, become the same way. "Oh", She said. Then I commented, "you will think "Oh!" when she then develops massive emotions problems, as a side effect. But don't worry they will sell you even more drugs for that.
Yep.... I'm a hoot.
here is the "New Plan"
According to reports late tonight, negotiators have (re-)reached a tentative deal on the bailout of the financial system. Full story here, but the gist as follows:
- $700-billion in total
- $350-billion immediately, with some of that earmarked for the insurance initiative championed by House Republicans
- "Reasonable" limits on severance packages
- Warrant coverage
- Some sort of tithing of the financial sector in five years if the bailout isn't profitable
- Government must renegotiate bad mortgages it acquires to try to keep people in houses
- Full text Sunday, as is a House vote, and then a Senate vote Monday
This is the same plan as Thursday... After 3 days of negotiating....... It's the same fucking thing.....
Thank God McSame came in and Got McSame Program.... He Saved us from Himself... and his Tax cuts for the rich and deregulation....
What a Joke
McCain the asshole
I've had it with, this joke of a moron.....
I've been a fan, for most of my life. But it's become apparent to me...... that the point of creating the Thursday disaster by the house republicans, was to create a problem he could solve. And to try and look like saviors... Everything they seem to be working on... seem to be the same things already in the plan.
Even better, it's great that he is a "Hail Mary" player... that he is one of those guys who works himeslf into a corner.... that has to make a desperation move to get himself out of it.....
Charming way to run a country...
"we have moved ourselves onto the brink of WW3.... and now McCain came in... Like a maverick... And saved us from his own Inaction."
Talk about Co-Dependency.
One can hope that Obama is finally some form of reasonable Leader for our country.
I'd just like to see a few years of not being embarrassed by the lack of leadership by our representatives. .... I can Dream can't I?
I've been a fan, for most of my life. But it's become apparent to me...... that the point of creating the Thursday disaster by the house republicans, was to create a problem he could solve. And to try and look like saviors... Everything they seem to be working on... seem to be the same things already in the plan.
Even better, it's great that he is a "Hail Mary" player... that he is one of those guys who works himeslf into a corner.... that has to make a desperation move to get himself out of it.....
Charming way to run a country...
"we have moved ourselves onto the brink of WW3.... and now McCain came in... Like a maverick... And saved us from his own Inaction."
Talk about Co-Dependency.
One can hope that Obama is finally some form of reasonable Leader for our country.
I'd just like to see a few years of not being embarrassed by the lack of leadership by our representatives. .... I can Dream can't I?
The government as safety net.
Any one else sick of my civics/economics Rants.... Rambles.
I was running this morning, and realizing ... that for the most Part... Y'All are used to it. I imagine its worse than usual since, I am so busy, I'm just trying to squeeze these posts in... I can't imagine that some of my Unedited thoughts. Don't involve some Awful sentences that fade into Blather.... Or entire posts..... But I kind of have a ton of affection for you all for Enduring it.
There are those who argue that "These are Free market Capitalists, Let those who live by the sword die by the sword."
I agree...
but... again we are all in the same boat, and they take us down with them... Unfortunately.
It is Governments job to act as safety net, for all of us. Just as if an uninsured person gets in an accident, it's our societies job to make sure that they don't die.
The last time we had pure Free market capitalism was the dark ages.... "Well that is feudalism, not capitalism".... and yet my argument would be... In a pure free market capitalist system, we would all probably be JPMorgan's Handmaidens, and his spawn would just be spending their time convincing us that they were ruling by divine right.
This is a great video from this week... Just shows how crazy things are:... it starts slow.. then picks up
http://www.cnbc.com/id/15840232?video=868551308
Don't doubt... there is no magic solution.... Things are ugly, and you can't wave a wand. Tightening belts is a good plan.
But this whole issue makes you realize... House republicans don't see government as safety net... Which makes you ask... "What do they think the purpose of government is?"
As they tried to use the collapse of the banking system to push through MORE DEREGULATION, AND MORE TAX CUTS FOR THE WEALTHY..... it's like they wanted to double down on the same destruction....
And that after 7 days of negotiations.... Suddenly they have a new plan.... As opposed to the usual political sausage making. I also think its funny that the first thing they came out and said was "We Agree, there is a Crisis". It's like being on the short bus.
I also love that you can't get a list of those being obstructionists....
Funny... If we did collapse the entire spine of Free market Capitalism... the good thing would be that when we started again... We could just scrap it and start with socialism. Wouldn't that be throwing it in the face of the douchbag Republicans.... Shows what fools they are.... If you end the Shell game.... they Would end up without a chair....
Too bad it would involved too many people running around the country in box cars trying to find jobs, and people running around the country trying to get jobs as Fruit Pickers. ;)
Another interesting thing... I have a couple friends, who are somehow mad at me.... Because somehow I guess this is a bail out of "Me"... and yet... If you knew traders Like I know the good ones. They don't care. They are happy to make money on the upside or downside.
Most of you probably think less of me.... But I'm the same way. Upside downside... Unfortunately it's about me, I'm here to make money.
My purpose here on this blog the past few weeks, is to try and show a few people what the "correct choice is" Meaning, what I see is the choice that is has the least amount of pain for our society.
Again.... Let me tell you all, My highest probability... What I believe is the most likely thing ... Is that we have the 40 year flood. I "hope" that we, avoid it and that we as People are evolving, and can manage to avoid being what I see as being "Rats in a maze", or Like Kids who haven't been burned by the stove in So many years... We just have to touch what ever that weird Hot thing is. One can think that with the "information age" we can do better.
I "Hope" we can avoid it.... But hope is not an investment Strategy.
It's hard... Sometimes it's the road less traveled, and Making the hard choices.
(Shhhh, Let me let you in on something... It's all ways the road less traveled, and always about making the hard choices ;)
I was running this morning, and realizing ... that for the most Part... Y'All are used to it. I imagine its worse than usual since, I am so busy, I'm just trying to squeeze these posts in... I can't imagine that some of my Unedited thoughts. Don't involve some Awful sentences that fade into Blather.... Or entire posts..... But I kind of have a ton of affection for you all for Enduring it.
There are those who argue that "These are Free market Capitalists, Let those who live by the sword die by the sword."
I agree...
but... again we are all in the same boat, and they take us down with them... Unfortunately.
It is Governments job to act as safety net, for all of us. Just as if an uninsured person gets in an accident, it's our societies job to make sure that they don't die.
The last time we had pure Free market capitalism was the dark ages.... "Well that is feudalism, not capitalism".... and yet my argument would be... In a pure free market capitalist system, we would all probably be JPMorgan's Handmaidens, and his spawn would just be spending their time convincing us that they were ruling by divine right.
This is a great video from this week... Just shows how crazy things are:... it starts slow.. then picks up
http://www.cnbc.com/id/15840232?video=868551308
Don't doubt... there is no magic solution.... Things are ugly, and you can't wave a wand. Tightening belts is a good plan.
But this whole issue makes you realize... House republicans don't see government as safety net... Which makes you ask... "What do they think the purpose of government is?"
As they tried to use the collapse of the banking system to push through MORE DEREGULATION, AND MORE TAX CUTS FOR THE WEALTHY..... it's like they wanted to double down on the same destruction....
And that after 7 days of negotiations.... Suddenly they have a new plan.... As opposed to the usual political sausage making. I also think its funny that the first thing they came out and said was "We Agree, there is a Crisis". It's like being on the short bus.
I also love that you can't get a list of those being obstructionists....
Funny... If we did collapse the entire spine of Free market Capitalism... the good thing would be that when we started again... We could just scrap it and start with socialism. Wouldn't that be throwing it in the face of the douchbag Republicans.... Shows what fools they are.... If you end the Shell game.... they Would end up without a chair....
Another interesting thing... I have a couple friends, who are somehow mad at me.... Because somehow I guess this is a bail out of "Me"... and yet... If you knew traders Like I know the good ones. They don't care. They are happy to make money on the upside or downside.
Most of you probably think less of me.... But I'm the same way. Upside downside... Unfortunately it's about me, I'm here to make money.
My purpose here on this blog the past few weeks, is to try and show a few people what the "correct choice is" Meaning, what I see is the choice that is has the least amount of pain for our society.
Again.... Let me tell you all, My highest probability... What I believe is the most likely thing ... Is that we have the 40 year flood. I "hope" that we, avoid it and that we as People are evolving, and can manage to avoid being what I see as being "Rats in a maze", or Like Kids who haven't been burned by the stove in So many years... We just have to touch what ever that weird Hot thing is. One can think that with the "information age" we can do better.
I "Hope" we can avoid it.... But hope is not an investment Strategy.
It's hard... Sometimes it's the road less traveled, and Making the hard choices.
(Shhhh, Let me let you in on something... It's all ways the road less traveled, and always about making the hard choices ;)
Saturday, September 27, 2008
Punnish those responsible
I have a story...
2 years ago, I was doing my thing... Drinking in a bar. I'm there talking to this Young Lady, and in the middle of all this she receives a phone call. She is talking to someone and trying to get them a loan for a home. During the course of the phone call she keep prompting them. "We are really close, if only you could tell me about something else you have that could help us get across the line, Maybe you have another part time job you forgot to tell me about, or a 401 K." It was clear to me she was Prompting them to lie to her. so they could qualify for the loan. I have no doubt, she doest' have a job anymore qualifying people for Loans. She is one of the "salesmen who made money loaning money to people on homes they couldn't afford, to be packaged into these MBS.
I was working on a job, and we hired some temp workers, one of these guys was selling his home because he had qualified for a home that after the ARM reset, he couldn't afford it. ... Well He lost his house. He is one of the "speculators who caused this problem"
A friend of mine Purchased an investment property for 2 Million, When he was going through the process he was amazed because everyone in the process knew that he could qualify for any amount of money, all he had to do was Lie about it. Fortunately, though he has lost a tremendous amount of value in the property, he could still afford it. Because he didn't over extend himself. But the mortgage broker, the Realtors... Those guys are out of business now.
I just saw a Moveon.org advertisement, and I saw democracy now Last night. All of this plays out like we are going to Bail out Goldman Sachs, and that the guilty parties aren't being punished. It seems to me that the Thousands of mortgage lenders, The Brokers, the Salesmen, the Irresponsible Borrowers. Many of the bad banks, Bear Stearns, Lehman Brothers,.... Have imploded.
But there is a Domino affect, These aren't Fat cats being bailed out, It's our economy. It's trying to get the lifeblood of the economy going again, Lending. Sure there has been too much lending, and it's contracting. But who is going to get the Loans in this Contraction? Rich people. People with 680 Credit, BlueCollar people trying to buy a home, Small business' trying to buy some new equipment to expand, or even to stay current on bills.
Imagine what would happen if your car broke down, and you didn't have credit to pay the mechanic to have it fixed, and ended up losing your job because you kept being late because you couldn't pay for the repairs, until you saved some money.
There is so much blame to spread around... and it's valid... But so many of the bad actors have taken the pain, and will continue to lose homes, and lose jobs.
If history is any reflection, Banks can sit and not loan money for years, and it could cause a Serious contraction in the economy The likes of which we haven't seen in decades. Or we can help the banks Recapitalize. And get some reasonable credit going in the economy.
It's not just the "goldmans Sachs" in this economy who are responsible for the problem, there are tons of people we all know and care about who were responsible, and who have and are paying for their mistakes.
It's obvious to me that we very much want to cut our noses off to spite our faces and it's the most Probably outcome, because we don't realize that this decision is whether or not we will Make this economic pull back even worse, that it needs to be.
We want to punish the guy with the Top hat in the Monopoly game, with the Cigar.... he is a Myth, and with contracting economics, and credit.... It is that kind of fat cat who will survive, and who will be first in line to get credit. It wont' be the average Joe..... Goldman Sachs happens to be a Bank, and we are going to try and recapitalize the banks.
I can argue the points of the Rescue plan till I'm blue in the face, As originally proposed, the goal was not just to buy MBS but to even buy loans from credit unions, thrifts, and regional banks. That is the goal. Who knows if in the Sausage making that is our legislative process, if suddenly we will only be buying loans from the bad actors.... But things aren't perfect... I'm a big kid, I can accept that things aren't perfect.... the important thing is that we get some credit flowing into this system. And help the banks Help us.... They do it to make money, and if the government doesn't help them, there is no chance they can help us, to rebuild the economy.
I'm sorry I keep going on about this, But this is the Classic Economic mistake. To make a foolish economic decision based on some Idealistic notion about punishing the guilty... We are all in this boat together, and there are enough bad actors that have been punished and will still be punished. The question is How many Innocent bystanders are going to lose jobs for these Idealistic notions. How many Automechanics, chicken pluckers, High school kids working at sonic, do we want to punnish. All the while trying to punnish "Goldman Sachs"... Who BTW will never pay.... They will fire some people as the industry contracts... But they will never pay... and neither will the "Huntsmans, the Levitts, and the Numerous 'Fat cats' "... those guys in the monopoly game.... are so far ahead of the game, they are untouchable.... But the Little guys trying to get home loans arn't, they are the Pawns in this game.
2 years ago, I was doing my thing... Drinking in a bar. I'm there talking to this Young Lady, and in the middle of all this she receives a phone call. She is talking to someone and trying to get them a loan for a home. During the course of the phone call she keep prompting them. "We are really close, if only you could tell me about something else you have that could help us get across the line, Maybe you have another part time job you forgot to tell me about, or a 401 K." It was clear to me she was Prompting them to lie to her. so they could qualify for the loan. I have no doubt, she doest' have a job anymore qualifying people for Loans. She is one of the "salesmen who made money loaning money to people on homes they couldn't afford, to be packaged into these MBS.
I was working on a job, and we hired some temp workers, one of these guys was selling his home because he had qualified for a home that after the ARM reset, he couldn't afford it. ... Well He lost his house. He is one of the "speculators who caused this problem"
A friend of mine Purchased an investment property for 2 Million, When he was going through the process he was amazed because everyone in the process knew that he could qualify for any amount of money, all he had to do was Lie about it. Fortunately, though he has lost a tremendous amount of value in the property, he could still afford it. Because he didn't over extend himself. But the mortgage broker, the Realtors... Those guys are out of business now.
I just saw a Moveon.org advertisement, and I saw democracy now Last night. All of this plays out like we are going to Bail out Goldman Sachs, and that the guilty parties aren't being punished. It seems to me that the Thousands of mortgage lenders, The Brokers, the Salesmen, the Irresponsible Borrowers. Many of the bad banks, Bear Stearns, Lehman Brothers,.... Have imploded.
But there is a Domino affect, These aren't Fat cats being bailed out, It's our economy. It's trying to get the lifeblood of the economy going again, Lending. Sure there has been too much lending, and it's contracting. But who is going to get the Loans in this Contraction? Rich people. People with 680 Credit, BlueCollar people trying to buy a home, Small business' trying to buy some new equipment to expand, or even to stay current on bills.
Imagine what would happen if your car broke down, and you didn't have credit to pay the mechanic to have it fixed, and ended up losing your job because you kept being late because you couldn't pay for the repairs, until you saved some money.
There is so much blame to spread around... and it's valid... But so many of the bad actors have taken the pain, and will continue to lose homes, and lose jobs.
If history is any reflection, Banks can sit and not loan money for years, and it could cause a Serious contraction in the economy The likes of which we haven't seen in decades. Or we can help the banks Recapitalize. And get some reasonable credit going in the economy.
It's not just the "goldmans Sachs" in this economy who are responsible for the problem, there are tons of people we all know and care about who were responsible, and who have and are paying for their mistakes.
It's obvious to me that we very much want to cut our noses off to spite our faces and it's the most Probably outcome, because we don't realize that this decision is whether or not we will Make this economic pull back even worse, that it needs to be.
We want to punish the guy with the Top hat in the Monopoly game, with the Cigar.... he is a Myth, and with contracting economics, and credit.... It is that kind of fat cat who will survive, and who will be first in line to get credit. It wont' be the average Joe..... Goldman Sachs happens to be a Bank, and we are going to try and recapitalize the banks.
I can argue the points of the Rescue plan till I'm blue in the face, As originally proposed, the goal was not just to buy MBS but to even buy loans from credit unions, thrifts, and regional banks. That is the goal. Who knows if in the Sausage making that is our legislative process, if suddenly we will only be buying loans from the bad actors.... But things aren't perfect... I'm a big kid, I can accept that things aren't perfect.... the important thing is that we get some credit flowing into this system. And help the banks Help us.... They do it to make money, and if the government doesn't help them, there is no chance they can help us, to rebuild the economy.
I'm sorry I keep going on about this, But this is the Classic Economic mistake. To make a foolish economic decision based on some Idealistic notion about punishing the guilty... We are all in this boat together, and there are enough bad actors that have been punished and will still be punished. The question is How many Innocent bystanders are going to lose jobs for these Idealistic notions. How many Automechanics, chicken pluckers, High school kids working at sonic, do we want to punnish. All the while trying to punnish "Goldman Sachs"... Who BTW will never pay.... They will fire some people as the industry contracts... But they will never pay... and neither will the "Huntsmans, the Levitts, and the Numerous 'Fat cats' "... those guys in the monopoly game.... are so far ahead of the game, they are untouchable.... But the Little guys trying to get home loans arn't, they are the Pawns in this game.
Friday, September 26, 2008
GE Capital Limits New-Restaurant Franchisee Lending
GE Capital's franchise finance arm is becoming more stringent in pricing and issuing loans for new franchisees, a pullback by one of the largest lenders to restaurant operators in the latest sign that Wall Street's turmoil is spreading to small businesses.
"We are still active in the restaurant industry and we continue to quote deals where it's competitive and appropriate," White said. "In this environment, we're taking a longer look and even a closer look than we have in different times and that just makes sense."
Certainly" don't cry for me" that there won't be more Sonic restaurants. My point is it's spreading beyond Lehman brothers and Goldman Sachs.
"We are still active in the restaurant industry and we continue to quote deals where it's competitive and appropriate," White said. "In this environment, we're taking a longer look and even a closer look than we have in different times and that just makes sense."
Certainly" don't cry for me" that there won't be more Sonic restaurants. My point is it's spreading beyond Lehman brothers and Goldman Sachs.
Smoot-Hawley Tariff act
Smoot-Hawley act-
The act was pioneered by Senator Reed Smoot, a Republican from Utah, and Representative Willis C. Hawley
After the economic downturn and crash of 1929, Smoot Hawley was enacted and it was a Very Popular move, Enacted by our Legislative branches.
When running for president in 1928, one of Hoover's many campaign promises to help beleaguered farmers had been to raise tariff levels on agricultural products.
A petition was signed by 1028 economists in the United States asking President Hoover to veto the legislation, organized by Paul Douglas, Irving Fisher, James TFG Wood, Frank Graham, Ernest Patterson, Henry Seager, Frank Taussig, and Clair Wilcox.[5] Automobile executive Henry Ford spent an evening at the White House trying to convince Hoover to veto the bill, calling it "an economic stupidity".[6]J.P.Morgan's Thomas Lamont said he "almost went down on my knees to beg Herbert Hoover to veto the asinine Hawley-Smoot tariff,
(Interesting parallel as every business leader in the country and economist of any repute is begging our government to do something to Re-liquify banks Right now. Volker, Greenspan, Pimco, Jack Welch, Clinton, and even Paulson fell onto one knee to beg for passage.)
In the opinion of most economists, the Smoot-Hawley act was partially responsible for the severity of the Great Depression.[2][3]
Unemployment was at 7.8% in 1930 when the Smoot-Hawley tariff was passed, but it jumped to 16.3% in 1931, 24.9% in 1932, and 25.1% in 1933.[11]
For those of you who don't understand, I'm drawing a parallel between PASSING Smoot-Hawley........ and NOT doing everything we can to help Re-Liquefy banks right now.
Sometimes we take action because something is very popular by the voters, or Don't take action because something is unpopular. To disastrous results, It is expected that sometimes for our legislative branch to Rise above politics and do what is best for the country, regardless of it's popularity. Sometimes the best decisions are not popular. As the minority opinions against the war in Iraq have shown, and we are lucky if our politicians can take the heat for the correct decision as opposed to the Popular one.
The act was pioneered by Senator Reed Smoot, a Republican from Utah, and Representative Willis C. Hawley
After the economic downturn and crash of 1929, Smoot Hawley was enacted and it was a Very Popular move, Enacted by our Legislative branches.
When running for president in 1928, one of Hoover's many campaign promises to help beleaguered farmers had been to raise tariff levels on agricultural products.
A petition was signed by 1028 economists in the United States asking President Hoover to veto the legislation, organized by Paul Douglas, Irving Fisher, James TFG Wood, Frank Graham, Ernest Patterson, Henry Seager, Frank Taussig, and Clair Wilcox.[5] Automobile executive Henry Ford spent an evening at the White House trying to convince Hoover to veto the bill, calling it "an economic stupidity".[6]J.P.Morgan's Thomas Lamont said he "almost went down on my knees to beg Herbert Hoover to veto the asinine Hawley-Smoot tariff,
(Interesting parallel as every business leader in the country and economist of any repute is begging our government to do something to Re-liquify banks Right now. Volker, Greenspan, Pimco, Jack Welch, Clinton, and even Paulson fell onto one knee to beg for passage.)
In the opinion of most economists, the Smoot-Hawley act was partially responsible for the severity of the Great Depression.[2][3]
Unemployment was at 7.8% in 1930 when the Smoot-Hawley tariff was passed, but it jumped to 16.3% in 1931, 24.9% in 1932, and 25.1% in 1933.[11]
For those of you who don't understand, I'm drawing a parallel between PASSING Smoot-Hawley........ and NOT doing everything we can to help Re-Liquefy banks right now.
Sometimes we take action because something is very popular by the voters, or Don't take action because something is unpopular. To disastrous results, It is expected that sometimes for our legislative branch to Rise above politics and do what is best for the country, regardless of it's popularity. Sometimes the best decisions are not popular. As the minority opinions against the war in Iraq have shown, and we are lucky if our politicians can take the heat for the correct decision as opposed to the Popular one.
More
People talk about "the market" Like I've said before. 1/1000 of "the market" is that number you hear about: the Dow Jones Industrial Average, which supposedly reflects the U.S. Economy.
What is going on is this....
the stock market is the stock market, and well, it's just crazy, It tends to be the worlds largest gambling Parlor.
But
The Credit markets right now..... Well the only way a loan is being made, is that people are buying government bonds, then the Federal reserve is then Loaning that money back to the financial institutions... Which Make your Credit cards work, The ATM's, Umn..... Allow Money to flow from One bank to another.
But, the nasty thing that is going on is that, companies that need to borrow money short term are paying between 7-30% for it. You think your credit card rates are expensive, those are the rates Legitimate companies are getting, Like GE, John Deer.
Long term rates are 5-8%, Boeing is paying 6.25% for a 6 month bond.
Imagine the rate you would pay if you were a 15 person business in salt Lake, It would be such a high rate that if you just needed to borrow money for 30 days until you get some invoices payed, If you could get credit, you would pay big for it, and you arn't a "Wall Street" guy being bailed out.
Lehman brothers just failed, the guys who worked to build these nightmair MBS' Those guys have jobs, they always will. The traders got jobs from Barklayes, The people who suffer are the Tellers at Washington Mutual, who's branch just went under. Or the Small business' who can't get Credit.
I can buy into the Machiavellian arguments, I'm a huge fan of Darwin. but this is neither, We all pay in this downturn, and it's not those who Messed up, who pay.... it's the people who "the shit runs Downhill to". The people smart enough to create these problems, are smart enough to get out of the way.
But... We are all in this boat together... Never forget that...
What is going on is this....
the stock market is the stock market, and well, it's just crazy, It tends to be the worlds largest gambling Parlor.
But
The Credit markets right now..... Well the only way a loan is being made, is that people are buying government bonds, then the Federal reserve is then Loaning that money back to the financial institutions... Which Make your Credit cards work, The ATM's, Umn..... Allow Money to flow from One bank to another.
But, the nasty thing that is going on is that, companies that need to borrow money short term are paying between 7-30% for it. You think your credit card rates are expensive, those are the rates Legitimate companies are getting, Like GE, John Deer.
Long term rates are 5-8%, Boeing is paying 6.25% for a 6 month bond.
Imagine the rate you would pay if you were a 15 person business in salt Lake, It would be such a high rate that if you just needed to borrow money for 30 days until you get some invoices payed, If you could get credit, you would pay big for it, and you arn't a "Wall Street" guy being bailed out.
Lehman brothers just failed, the guys who worked to build these nightmair MBS' Those guys have jobs, they always will. The traders got jobs from Barklayes, The people who suffer are the Tellers at Washington Mutual, who's branch just went under. Or the Small business' who can't get Credit.
I can buy into the Machiavellian arguments, I'm a huge fan of Darwin. but this is neither, We all pay in this downturn, and it's not those who Messed up, who pay.... it's the people who "the shit runs Downhill to". The people smart enough to create these problems, are smart enough to get out of the way.
But... We are all in this boat together... Never forget that...
My bets
So.... Regardless of what I think we should do.... My bet overall is that we suffer the stupidity of the 40 year flood. Too many people don't know what it would be to really suffer extreme economic foolishness. It's like when we haven't been in a war for too long, and the kids get all worked up and Nationalistic, Start thinking we can take on the world.
Too many people think that somehow "Let Do" economics will pull it's way out of this. We may have to prove that it's a mistake. There is a reason that we don't live in a pure democracy, some issues are very complicated, and need study to understand the consequenses. Thats where those idiots we elect come in. And they are fools.
The republicans that are revolting are the young ones, the ideologues, the ones who don't believe in moderation.
I'm a realist..... we are extremely stupid, we want to see a protracted economic downturn.... It's been to long since we experienced one.
There are a million possible plans, but our legislative branch has sat on their hands as the fuse has been lit on this. They have done nothing for 2 years as this has unrolled, warned repeatedly as time ticked on.
Now like Little kids, when the chips are down, and when the "men" need to step up and make the hard choices. The little irresponsible republican babies, have run back to their mamam's to suck their thumbs, and wont' live up to the hard choices that need to be made.
INDECISION IS DECISION.
The people who are trying to pull back from this don't have a plan, don't want to negotiate... in fact they seem to think they can take their ball and go home. This is the most irresponsible thing possible.
Besides My bet that we are fools.... I'll also bet that this is a game to have "Superman McSame" to come in and rescue them.
Too many people think that somehow "Let Do" economics will pull it's way out of this. We may have to prove that it's a mistake. There is a reason that we don't live in a pure democracy, some issues are very complicated, and need study to understand the consequenses. Thats where those idiots we elect come in. And they are fools.
The republicans that are revolting are the young ones, the ideologues, the ones who don't believe in moderation.
I'm a realist..... we are extremely stupid, we want to see a protracted economic downturn.... It's been to long since we experienced one.
There are a million possible plans, but our legislative branch has sat on their hands as the fuse has been lit on this. They have done nothing for 2 years as this has unrolled, warned repeatedly as time ticked on.
Now like Little kids, when the chips are down, and when the "men" need to step up and make the hard choices. The little irresponsible republican babies, have run back to their mamam's to suck their thumbs, and wont' live up to the hard choices that need to be made.
INDECISION IS DECISION.
The people who are trying to pull back from this don't have a plan, don't want to negotiate... in fact they seem to think they can take their ball and go home. This is the most irresponsible thing possible.
Besides My bet that we are fools.... I'll also bet that this is a game to have "Superman McSame" to come in and rescue them.
Thursday, September 25, 2008
Back at it.
Last night I listened to the Congressional Budget office director Pert Orszag, Talk about the "bailout/Rescue plan"... You know.... My life is exciting... super crazy... I'm watching this on C-Span2.
He said some very sobering things. In no way was he as measured, as the treasury secretary or our fed chairman.
Today, Though I hear this being quoted:
"Bailout could deepen crisis, cbo chief says"
I was stunned, I didn't remember this part of the testimony.... only I read it and realize there is a word there...COULD... "Could deepen"
Lets look at some of the other things he said: This is from His blog
Severe credit crunch could have devastating effects on Economies.
In sum, the problems occurring in financial markets raise the possibility of a severe credit crunch, which could have devastating effects on the U.S. and world economies.
There is that Could Word again..... What is the rest of that.... Devastate????.... My word... What could it Devastate... U.S. and World Economies.
In a WSJ story he is quoted.
Prices of some assets are below their fundamental value
In the current environment, though, with short-term financing difficult to obtain, the arbitragers have difficulty stepping into the market. “It is therefore at least possible that the prices of some assets are below their fundamental value,”
Orszag said.ok.... again... that word is "possible"
Now, here is another story :
A watchdog agency says Washington's plan to rescue Wall Street will eventually cost "substantially less" than the often-quoted amount of $700 billion US.
So.... As the economic game of brinkmanship goes on, as Taxpayers revolt at the idea of providing liquidity to Banks. Don't doubt, this game is serious. The affects are serious... I don't know what plan is the right plan... but the banks need to be recapitalized before they can start lending.
and banks can wait for decades to do it on their own, as they have during every deep economic contraction.... they are not here to provide the economy with credit, they are here to make money.
If Government wants them to "help the economy", The government needs to help them.
But I'm sure the solution the Republicans just offered: "Tax cuts", you insure the MBS, More Deregulation.....
Don't worry, McCain will come to save the day.
He said some very sobering things. In no way was he as measured, as the treasury secretary or our fed chairman.
Today, Though I hear this being quoted:
"Bailout could deepen crisis, cbo chief says"
I was stunned, I didn't remember this part of the testimony.... only I read it and realize there is a word there...COULD... "Could deepen"
Lets look at some of the other things he said: This is from His blog
Severe credit crunch could have devastating effects on Economies.
In sum, the problems occurring in financial markets raise the possibility of a severe credit crunch, which could have devastating effects on the U.S. and world economies.
There is that Could Word again..... What is the rest of that.... Devastate????.... My word... What could it Devastate... U.S. and World Economies.
In a WSJ story he is quoted.
Prices of some assets are below their fundamental value
In the current environment, though, with short-term financing difficult to obtain, the arbitragers have difficulty stepping into the market. “It is therefore at least possible that the prices of some assets are below their fundamental value,”
Orszag said.ok.... again... that word is "possible"
Now, here is another story :
A watchdog agency says Washington's plan to rescue Wall Street will eventually cost "substantially less" than the often-quoted amount of $700 billion US.
"The administration probably will spend that amount of money buying bad debt from ailing financial institutions," said Peter Orszag, director of the Congressional Budget Office, a federal agency that examines and criticizes various government proposals.
"[But] the government would sell the acquired assets and thus generate income that would offset at least much of the initial cost," he said in testimony Wednesday before the U.S. House of Representatives' budget committee.
So.... As the economic game of brinkmanship goes on, as Taxpayers revolt at the idea of providing liquidity to Banks. Don't doubt, this game is serious. The affects are serious... I don't know what plan is the right plan... but the banks need to be recapitalized before they can start lending.
and banks can wait for decades to do it on their own, as they have during every deep economic contraction.... they are not here to provide the economy with credit, they are here to make money.
If Government wants them to "help the economy", The government needs to help them.
But I'm sure the solution the Republicans just offered: "Tax cuts", you insure the MBS, More Deregulation.....
Don't worry, McCain will come to save the day.
Tax cuts for the rich will help everything
The republican plan is to:
For you to insure the MBS.
They also want to remove "tax barriers"
and Provide Tax Relief to companies.
tax relief for individuals.
We may have just found the Fat cats....
For you to insure the MBS.
They also want to remove "tax barriers"
and Provide Tax Relief to companies.
tax relief for individuals.
We may have just found the Fat cats....
McCain to save the day
.... Sounds like instead of trying to attempt to buy the bonds at a market price. What the Republicans want to do is have you insure the bonds.
-- Benjamin Franklin
"We must hang together, gentlemen...else, we shall most assuredly hang separately."
More Wall Street Fat Cats Go down!
Bill Heard Enterprises Inc., one of the nation's larger Chevrolet retailers, went out of business on Wednesday, the latest victim of turmoil roiling the domestic auto industry and its vast dealer network..
....
A slew of domestic-brand dealers have been forced to close by the combined impact of tanking truck sales, soaring fuel costs and the national credit crisis.
...
Domestic brand dealers across the U.S. are becoming increasingly strained as Detroit's auto makers and their once-profitable financing units move quickly to cut losses, making it tougher for customers to get financing and more expensive for dealerships to operate
Yep.... Sons of Bitch WALLSTREET FAT CATS.
There is a factor of car companies being stupid, I'll admit.... I keep trying to point out that wall street has taken a ton of lumps. This stuff Trickles down to main street. There are now a few thousand Auto mechanics, and salesmen without jobs.
But.... yep We will show these Wall street fat cats.
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