This is ridiculous. Read it on your own, but how can we keep giving the broken companies money? $51 billion thus far... when will it end?
Read more here.
The Fed keeps pushing back the timeline for an economic recovery and will probably start bailing out government pensions, more state budgets, the University of Phoenix, and maybe even retail companies if it keeps going this way. Their estimates were "revised down" but did not provide an update on the forecasts. So they basically have no idea what the hell is going on. I can't even tell the difference between Ben Bernanke and Ben Stiller. GAC. Get A Clue.
Unemployment is hovering around 8.5% and some companies have avoided layoffs by cutting their 401k match... The next wave of layoffs is coming after the first quarter earnings announcements. THYCAN. Take Home Your Computer At Night.
There's a gigantic confidence problem in the corporate world. Everyone is worried about losing their job... therefore not spending money on unecessary items. You don't have to be a genius to figure out that this has a trickle down effect and ultimately results in more jobs being cut and companies not hitting their number again in the second quarter. AMAJWBN. April, May, And June Will Be Nasty.
All bets are off when it comes to the Fed. They keep printing more and more money out of thin air... there may be a temporary drop in prices but then inflation will hit hard once everyone realizes how many US dollars are in circulation. The fed was wrong when they met in January, how are the decisions they are making now (only 3-4 months later) supposed to instill confidence in the American people? If you keep guessing maybe you'll get it right eventually? Is that what we're supposed to believe? DUMB. Do Ur Math, Bernanke.
Consumers are still much too cautious and will remain that way until housing prices stabilize and the banks come clean. No matter how you slice it, we're trying to cure the current economic problems with a band-aid and it really deserves major surgery. If this phony plan works it's only going to postpone problems that will arise again in 10 years... then we can relive this all over again. Maybe we rally again until 2016, until all of the baby boomers are forced to start withdrawing from their 401ks... TCAR/D. Then Comes Another Recession/Depression.
I'm sure the government will come up with a fancy acronym to solve that problem as well... maybe the CHAOS... China Has All Our Savings.
50 milllion retirees are receiving $250 payments from the government over the next few weeks as their share of the $787 billion package is enacted. Let's do some quick math... 50,000,000 x $250.00 = $12,500,000,000.00. The government is spending over $12 billion to stimulate the economy by giving retirees a lousy $250.
Economists say the payments will help out just as the recession is showing signs of easing a little. I'd like to know what economists are saying this... maybe Denture Cream, Model Airplanes, and Cribbage Boards see a boost, but $250 doesn't go far these days.
The $600 stimulus for the rest of America didn't work, what makes them think this will have an effect? The checks are going to those who receive Social Security, Supplemental Security Incom, railroad retirement or veteran's disability benefits. Maybe that $12.5 billion should just go towards Social Security! The government know that the fund is going to run out when all the baby boomers start taking payments so why not start funding it with extra money now?
Or better yet spend it on something to actually help the economy in the long run. We're putting a $250 band-aid on a trillion dolllar knife wound.
Read more here.
Citibank has received $45 Billion in federal bailout money and also failed the government stress test... and now they're requesting permission to pay bonuses to certain employees. I know that America is the land of the free and the home of the brave... but come on.
And the stock is up almost 9 percent this morning after failing a test. Pretty sure my stock never went up after failing tests back in college.
Read more here.
On April 27, 1937 the U.S. Social Security system made its 1st benefit payment. This is very significant because 72 years later the system is still "working". But watch out, the Madoff Ponzi Scheme was nothing compared to Social Security. The last payment isn't too far off... we'll just need a "bailout" to keep the largest Ponzi Scheme of all time, known as Social Security, alive. Don't count on it.
The Treasury is preparing for a Chrysler Chapter 11 Bankruptcy as early as next week. So much for all that bailout money... Remember how much it's costing every American Taxpayer? Refresh your memory here. I love throwing money into a black hole... or burning it. Same thing.
Read more on story here.
GM is still struggling to survive on the $13.4 billion loan it received from the government... and there's a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. It took decades to create this mess, there's no way it's getting fixed in a matter of months. If General Motors was reading material, it wouldn't be a book... it would be a single chapter...Chapter 11.
Read more here.
Out of the original $700 billion, only $109.6 billion is left in the government's financial bailout fund.
The Treasury Dept. expects the fund tol be boosted over the next year by about $25 billion as institutions like Goldman Sachs pay back the fund. That would bump the total up to $134.6 billion, still relatively small when looking at the situation.
The details behind the numbers of the bailout were made available in a letter from Treasury Secretary Timothy Geithner to Elizabeth Warren, the head of the Congressional Oversight Panel. A letter...who writes letters these days? At least use some email, no wonder the government is so inefficient.
The Treasury has already given over $115 billion to AIG, Citigroup, Bank of America and the automakers. Now it's looking like they will need more. The $109.6 billion is what's left to provide additional funds to the auto companies and deal with any of the nation's largest banks found to need more cash after the "stress tests" are completed at the end of this month. That's ALL that's left at this point, unless an emergency bailout bill gets sent to congress and somehow passes...
The Obama administration already tried to get more money in a bill sent to congress requesting $750 billion, but lawmakers said there's no way they'll approve boosting the fund. Thank goodness... We're in huge amounts of debt and trying fix it by spending more money...this seems a little backwards to me. I agree that you need to help out the banks to ensure there isn't massive failure, but how is the US government going to pay all this money back when there's additional money needed for social security, pensions and actually running a government.
According to the Associated Press, the Fed once again pushed back the timeline for an economic recovery and will probably start bailing out government pensions, more state budgets, the University of Phoenix, and maybe even retail companies if it keeps going this way. Their estimates were "revised down" but did not provide an update on the forecasts. So they basically have no idea what the hell is going on. I can't even tell the difference between Ben Bernanke and Ben Stiller. GAC. Get A Clue.
Unemployment is hovering around 8.5% and some companies have avoided layoffs by cutting their 401k match... The next wave of layoffs is coming after the first quarter earnings announcements. THYCAN. Take Home Your Computer At Night.
There's a gigantic confidence problem in the corporate world. Everyone is worried about losing their job... therefore not spending money on unecessary items. You don't have to be a genius to figure out that this has a trickle down effect and ultimately results in more jobs being cut and companies not hitting their number again in the second quarter. AMAJWBN. April, May, And June Will Be Nasty.
All bets are off when it comes to the Fed. They keep printing more and more money out of thin air... there may be a temporary drop in prices but then inflation will hit hard once everyone realizes how many US dollars are in circulation. The fed was wrong when they met in January, how are the decisions they are making now (only 3-4 months later) supposed to instill confidence in the American people? If you keep guessing maybe you'll get it right eventually? Is that what we're supposed to believe? DUMB. Do Ur Math, Bernanke.
Consumers are still much too cautious and will remain that way until housing prices stabilize and the banks come clean. No matter how you slice it, we're trying to cure the current economic problems with a band-aid and it really deserves major surgery. If this phony plan works it's only going to postpone problems that will arise again in 10 years... then we can relive this all over again. Maybe we rally again until 2016, until all of the baby boomers are forced to start withdrawing from their 401ks... TCAR/D. Then Comes Another Recession/Depression.
I'm sure the government will come up with a fancy acronym to solve that problem as well... maybe the CHAOS... China Has All Our Savings.
The US Government may end up aiding the automakers with up to $100 billion. Yes, billion. Let me write that out for you: $100,000,000,000.00. Citizens for Tax Justice, a taxpayer watchdog group, states that there are 117 million taxpayers in the United States. Even if these numbers are slightly off, it's somewhere around $854.70 per American taxpayer. How is the defecit going to be cut when we're spending money like this on a business model that will not work without massive restructuring?
Even the new CEO of General Motors, Fritz Henderson, is quoted "if it's required, that's what we'll do"... obviously talking about bankruptcy. So why are we still throwing money in this black hole if bankruptcy is still an option. The current model is flawed and there needs to be deeper restructuring, which is why the old CEO, Wagoner, was given the boot. Michigan is in a world of hurt and this uncertainty does not help the cause. More jobs are going to be cut (unemployment rising!) through 2012 and the company must be leaner that it projected in February. Seriously, February? That was 2 months ago. How can the people running one of the largest American corporations not realize the severity of the situation 2 months ago?
Henderson has stated that one of the happiest days of his life will be when General Motors will repay the American Taxpayers. I can't wait. I'm going to take that $800 bucks and put it towards a Camry (just kidding).
We need American automakers, get with the program, restructure, go bankrupt, whatever is needed and start the process of restoring the confidence Americans have in American cars.
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