Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Saturday, January 10, 2009
Why the Economic Stimulus Packages are Doomed to Fail / Economics / Credit Crisis Bailouts
By: Oxbury_Research
The Sahara Desert used to have fish. Many people do not know this, but over the last 120,000 years or so, there were no less than three distinct time periods when what is now a desolate expanse of sand was instead covered with rivers, lakes, and grasslands. In fact, millions of years ago, evidence points to the area being a prehistoric ocean. Read full article... Read full article...
Friday, January 09, 2009
Obama’s Inflationary Bond Market Busting Stimulus Plan / Economics / Credit Crisis Bailouts
By: Money_Morning
When is There “Too Much” Stimulus?
Martin Hutchinson writes: The Congressional Budget Office's announcement Wednesday that 2009's budget deficit was going to be $1.19 billion - before a nickel of President-elect Barack Obama's stimulus plan has been included - raises a crucial question for the U.S. economy: Is there too much stimulus, and what effect would too much stimulus have?
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Wednesday, January 07, 2009
Great Economic Paradox of Stimulus and Bailout Packages / Economics / Credit Crisis Bailouts
By: John_Mauldin
There is an ongoing debate on the current nature of the economic environment and what should the response be by government. Today's Outside the Box by Paul McCulley takes up one view, arguing that we need a federal response and stimulus package to protect the overall economy and save capitalism from itself. Tomorrow, I am going to send yet another view arguing that by doing so we are hurting the prudent investor and businesses that did not over-leverage and behaved responsibly. Both are important to understand. And as I will argue on Friday in my 2009 Forecast Issue, both are right. And that is one of the great economic paradoxes that we are faced with today. Navigating through this period is particularly challenging, but I think it is critical that you understand what Paul says today and what Bennet Sedacca will say tomorrow. Understanding what is going to happen, whether or not we agree with the philosophy behind it should be our goal, as it will make us better able to respond with our own portfolio and business decisions.Read full article... Read full article...
Tuesday, January 06, 2009
Obama Dreaming of Deficits / Politics / Credit Crisis Bailouts
By: Oxbury_Research
Jan. 5 (Bloomberg) -- President-elect Barack Obama’s economic stimulus package will include hundreds of billions of dollars worth of tax breaks for individuals and businesses, according to a transition official and Democratic aides. Obama is asking that tax cuts make up 40 percent of a stimulus package, the people say.Read full article... Read full article...
Tuesday, January 06, 2009
U.S. Banks Refuse to Detail How They’re Spending Federal Bailout Money / Interest-Rates / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: After receiving hundreds of billions of dollars in taxpayer-funded federal bailout money, the biggest U.S. banks say they can't track how that money is being spent.
Some of the banks are outright refusing to discuss the matter, a new study has found. Read full article... Read full article...
Friday, January 02, 2009
Bailouts Breeding Something for Nothing Economic Policy / Economics / Credit Crisis Bailouts
By: Mike_Shedlock
How "Something For Nothing" Ideas Become Policy - Leaders all over the world are now in an Undeniable Shift to Keynes even though every such attempt in history has failed. Please consider the madness:
The sudden resurgence of Keynesian policy is a stunning reversal of the orthodoxy of the past several decades, which held that efforts to use fiscal policy to manage the economy and mitigate downturns were doomed to failure. Now only Germany remains publicly sceptical that fiscal stimulus will work.
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Wednesday, December 31, 2008
GMAC Bailout: A Sign of the Times / Companies / Credit Crisis Bailouts
By: Oxbury_Research
WASHINGTON — The Treasury Department said Monday that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.(The Huffington Post)
GMAC will also potentially receive up to $1 billion from the Treasury in the form of an equity purchase. Shocking right? Not if you have two eyes and can read beyond a 4th grade level.
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Tuesday, December 30, 2008
U.S. Treasury Starts to Make Subprime Auto Loans / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
One day after the treasury (taxpayers) injected $6 billion into the failing auto industry GM, GMAC ease lending rules to entice car buyers . General Motors Corp and its GMAC funding affiliate launched programs on Tuesday to lure U.S. car and truck buyers back into showrooms as the largest U.S. automaker tries to revive its sagging fortunes.
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Friday, December 26, 2008
Fiscal Insanity Virus Strikes Canada, Sweden, Italy, IMF / Economics / Credit Crisis Bailouts
By: Mike_Shedlock
The world health organization has confirmed new cases of the extremely contagious Fiscal Insanity Virus (FIV) that is rapidly spreading the globe. Canadian Finance Minister Jim Flaherty is one of the latest victims as evidenced by the headline Flaherty gives banks deadline to lend more . Read full article... Read full article...
Monday, December 22, 2008
Fiscal Insanity Virus Rapidly Spreading The Globe (Part 2) / Interest-Rates / Credit Crisis Bailouts
By: Mike_Shedlock
This post is a continuation of Dangerous Virus Rapidly Spreading The Globe (Part 1) . If you have not yet done so, please read part 1. The symptoms of the FIV disease are complex. Part 1 addresses the symptoms and part 2 below continues with more symptoms and a discussion about preventative measures and cures.
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Monday, December 22, 2008
Why Credit Crisis Bail-outs are Bad News for Investors / Stock-Markets / Credit Crisis Bailouts
By: MoneyWeek
The banks were too big to fail. Everyone agreed on that, it seemed.
But once you give one lot of badly run, bust companies a bail-out, it becomes a lot harder to justify knocking back the rest. And soon everyone has their hand out.
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Tuesday, December 16, 2008
Government Bailouts the Ultimate Ponzi Scheme Heading for Financial Collapse / Stock-Markets / Credit Crisis Bailouts
By: Joseph_Russo
Notwithstanding the success of a 2nd American Revolution - Politicians, Bankers, Power Brokers, Lobbyists, Wall Street, and Huge Trans-National Corporate Conglomerates have collectively succeeded in delivering their subtle-monopoly deathblows to American Free Market Capitalism. In doing so, they have destroyed the constitutional fortress which once protected and kept shining the beacon of American ideals and free enterprise.Read full article... Read full article...
Tuesday, December 16, 2008
The Next Big Bailout- Madoff!! / Stock-Markets / Credit Crisis Bailouts
By: Brady_Willett
With the financial markets already in a state of panic and the global recession expected to worsen in 2009, we can ill afford to allow the financial institutions, charities, and rich idiots that entrusted Bernard Madoff with their money to go bust. As for the widespread contention that since Mr. Madoff committed fraud he deserves to go to jail, do not think of Madoff as operating a ponzi scheme so much as a Strong Armed Perception Fund (SAP Fund), and don't think of him as breaking the law so much breaking new ground in the arena of fictitious returns.Read full article... Read full article...
Tuesday, December 16, 2008
The Biggest Scam of All: Governments Saving us from the Credit Bust / Stock-Markets / Credit Crisis Bailouts
By: MoneyWeek
The world's becoming a riskier place.
For a while there, it seemed that risk had been abolished. All through the boom, we still had terrorism, and we still had wars – but they didn't seem that important. They were sideshows, niggling little inconveniences in an otherwise near-perfect world.
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Tuesday, December 16, 2008
Federal Reserve Characteristics of a Crime Syndicate Faces Lawsuits / Interest-Rates / Credit Crisis Bailouts
By: Jim_Willie_CB
The principal missing piece in the grand American mosaic of banking destruction, corrupt collusion, fraudulent bonds, Wall Street control, suppressed regulators, compromised ratings agencies is JUSTICE . Foreign entities are aghast as the lack of prosecution, remedy, and removal from positions of power, as policy continues to be set by the participants responsible for the structural failure and prevalent fraud. Their actions are reaching climax levels. The climax of the Wall Street strangehold is the confiscation of the TARP funds to date. However, whatever has not been nationalized is subject to lawsuits . The pattern of human behavior indicates that lawsuits can spawn additional lawsuits, and quickly control is lost. It is open season on Citigroup, Bank of America, and perhaps other lesser players. Read full article... Read full article...
Monday, December 15, 2008
Credit Crisis Bailouts- No Free Lunch / Stock-Markets / Credit Crisis Bailouts
By: Captain_Hook
I will never forget the walk down the long narrow hallway to the offices of my economics professors in university, and in particular, on the door of one a solitary sign permanently fixed saying ‘NO FREE LUNCH'. At the time, this particular professor was not my favorite because I viewed him as a bit of a ‘hard-ass', where I was unable to calculate the exacting standards he wanted in my work. However as time has passed, this has all changed. Now, with the experience of life behind me, it's almost as if I am viewing the world through his eyes, looking at all the rot and corruption that permeates almost every aspect of our society. Read full article... Read full article...
Friday, December 12, 2008
Fed Policy Makers Wasting $10 Trillion on Bailout Liabilities / Economics / Credit Crisis Bailouts
By: David_Haas
What These Dangerous Clowns Don’t Understand - I had the unnerving experience last night of staying up late watching C-Span as U.S. Senators hammered and then shot down the bailout bill for the Detroit“Big 3″
(a misnomer?) automakers. I must admit, there was a great deal of heart-felt passion in the words of the representatives who were courageous enough to speak out and it was this rare display of authenticity and, dare-I-say, credibility that kept me watching.Read full article... Read full article...
Friday, December 12, 2008
Trillion Dollar Bailout Liabilities Desensitisation / Interest-Rates / Credit Crisis Bailouts
By: Andy_Sutton
In the current climate, where the overriding opinion of most mainstream financial commentators is that deficit spending is a good thing and the only thing better than one bailout is two bailouts, it is time to inject a bit of logic and sanity.
Sure, I made the argument in last week's edition that IF the Feds are going to throw over $8 Trillion at the financial system which produces nothing, why not throw Big Auto a bone? At least they produce something. However, this line of reasoning should not be taken as any kind of endorsement of our Bail-o-Matic Congress or its actions.
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Friday, December 12, 2008
Stock Markets Nosedive as Senate Says No to Auto Bailout / Stock-Markets / Credit Crisis Bailouts
By: PaddyPowerTrader
Detroit's auto bailout drives down a Congressional cul-de-sac. To add to this, GM has hired a bankruptcy lawyer, Bank of America is to cut 35k jobs and weekly jobless claims have soared to 573k (a two year high). Just to rub salt in the wounds, JP Morgan's Jamie Dimon tells us that 2009 is going to be another anus horribulus horror show for banks. Its no wonder the Dow Future is off 275 as I scribble.Read full article... Read full article...
Thursday, December 11, 2008
Bernanke and Paulson Attempting to Resuscitate Flawed Market Model / Stock-Markets / Credit Crisis Bailouts
By: Mike_Whitney
Even though the Federal Reserve is now the biggest single participant in the financial system, the myth of a "free market" still lingers on. Go figure? The Fed has expanded its balance sheet by $2 trillion, guaranteed $8.3 trillion of dodgy mortgage-backed paper, provided a backstop for bank deposits, money markets, commercial paper, and created 8 separate lending facilities to ensure that underwater financial institutions can still appear to be solvent. The whole system is a state subsidized operation buoyed on a taxpayer-provided flotation device which bears no resemblance to an invisible hand. Read full article... Read full article...