You are currently browsing the tag archive for the ‘bailout’ tag.
Car execs grilled by Congress on transport to hearing
At this Thanksgiving dinner I will toast some very, very wonderful things to be thankful for; my friends, family and supporters, the collapse of Republicanism, the humiliating implosion and utter failure of the Republican party and unregulated free market doo doo economics and the defeat of racism, fear mongering and paranoia- albeit by a margin too close for comfort. One of my hopes for future Thanksgiving toasts will be the death of the contemporary equivalent of racism- homophobia and maybe beyond that the relegation of Religion to the same fate as The Pet Rock.
The party that scrutinizes every single tax dollar to see that it doesn’t risk ending up in the hands of some shiftless minority or rebuilding and equipping public schools, providing health care to the working poor, cleaning up after corporate polluters, advancing clean energy, or any other horrible “communist” enterprise that might provide for the welfare of American citizens, has just financed their own failure with your money- tax payer money. More accurately, your labor and the labor of your children. The tax haters are in line for their hand outs.
Remember when Bush wanted to privatize Social Security? What a fuckin’ joke! More of that brilliant self-reliance fiscal bull shit. It has finally be laid out plain as the nose on your face- these low tax, free market, self reliant, moral giants are colossal frauds and intellectual neanderthals. They are stricken with an illness that prevents them from giving a shit about anyone but themselves. Fearful, violent witch hunters, empty moral midgets and ethical pygmies that protect themselves from themselves with denial, superstition and Religion and now tax dollars.
The cost of The Marshall Plan, Louisiana Purchase, Race to the Moon, S&L Crisis, Korean War,The New Deal, Invasion of Iraq, Vietnam War, and NASA: TOTALS: $3.92 trillion dollars… Inflation Adjusted dollars!
The current Wall Street gamblers, liars and failures bailout is costing us $4.62 trillion dollars.
Universal health care, securing Social Security, providing books and supplies for our children’s class rooms, enhancing veteran’s benefits? Not a fuckin’ chance. Those are godless Communist programs. Picking up the tab for billionaires who lost money gambling on irresponsible bets and playing multi-billion dollar ponzi schemes? That’s the patriotic, self reliant thing to do. What better way to spend those evil, ill gotten tax dollars? Anyone but the poor and working class.
Never forget the Bush Cheney disaster and the crash of the Republican corporate free market, diaper changing ideology. You’re paying for it and will be for a long time. If we’ve learned our lesson, we can be thankful.
November 12, 2008: The Day in 100 Seconds
How to rack up debt seems to be the first lesson many American college kids learn these days. In Bloomington, the staff at the famed Mother Bear Pizzeria consists of mostly Indiana University students working their way through school. Catching the rare free moment between orders, workers explained the stress they are feeling in these rocky economic times. The recent credit crunch at the banks and the chaos on Wall Street has already added to their worries – undercutting family credit records, draining stock funds, and causing some students to question what their future will hold.
Amid the chaos and chatter about this week’s financial bailout, one clear theme emerged in some quarters: The era of free-market fundamentalism is over. But is it, really?
People all across the country are suffering the fallout from Wall Street’s financial H-Bomb. ANP producer David Murdock and McClatchy Newspaper journalist Tony Pugh have set out on a journey across America to see how economic shock waves from last week’s DC drama are being felt across the land. Their road trip begins in the well-heeled town of Greenwich, Connecticut, where mountains of Wall Street money have created a community seemingly isolated from the tribulations of the common man, but even here, some cracks are beginning to show and those who depend on the rich are beginning to feel the pain.
US stock markets slumped sharply with the Dow Jones falling through the psychologically important 10,000 mark for the first time since October 2004 amid fears that the fallout from the credit crisis will push the country deep into recession.
The Dow Jones fell 569.8 to 9755.5, with the S&P 500 off 64.2 at 1035.0 despite moves by the Federal Reserve to instill confidence in the financial system through capital injections.
Nearly a quarter of the stocks on the New York Stock Exchange hit new lows within an hour of the opening of the markets, with every stock in the Dow Jones index down on the day.
The S&P 500 was flat to its trading level 10 years’ ago, leading US commentators to speak of a “lost decade” in equity markets.
The stock market slumps followed similar moves in Europe where the FTSE 100 was on course for its biggest one-day fall in more than 20 years.
The index of leading shares was down almost 9pc at one stage – the biggest decline since the aftermath of Black Monday in October 1987.
A host of the UK’s biggest banks were rocked by turmoil across the European banking sector, with Royal Bank of Scotland falling 22pc at one stage. Mining stocks were also hit, dragged down by fears of falling demand in the face of a growing global slowdown.
Germany’s Dax was off 7.4pc while the Cac-40 in France fell 8.2pc and Italy’s benchmark S&P/Mib fell 9.17pc – its lowest level since the index was established in September 2004.
Traders in the US said the only way to halt the decline, even temporarily, was for central banks around the globe to push through co-ordinated interest rate cuts.
“There is no support to halt share declines. No one is buying,” said one trader at a big US bank. “We were told to reduce our risk and to stay out of the markets. There is too much irrational behaviour out there.”
The stock market declines will heighten fears over the US government’s power to prop up markets despite its success in pushing through a $700bn (£403bn) bailout of the banking system on Friday.
The Federal Reserve acted to shore up confidence in the banking sector today and free up the credit markets by doubling the amount of money it makes available under its Term Auction Facility to $900bn.
Banks will be able to draw down funds from the facility and maintain liquidity in the face of an interbank lending market that has all but ceased to function.
In Asia, Japan’s Nikkei index lost 4.2pc, South Korea’s Kospi slipped 4.3pc and Hong Kong’s Hang Seng fell 5pc. China’s CSI 300 Index fell 5.1pc, as trading resumed after a one-week holiday.
NEW YORK – Wall Street suffered through another traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points and setting a new record for a one-day point drop as investors despaired that the credit crisis would take a heavy toll around the world. The Dow also fell below 10,000 for the first time since 2004, and all the major indexes fell about 5 percent.
The catalyst for the selling was the growing realization that the Bush administration’s $700 billion rescue plan and steps taken by other governments won’t work quickly to unfreeze the credit markets. Moreover, investors are increasingly unnerved by the paralysis in the credit markets that has started to affect companies trying to borrow for acquisitions or just to conduct their daily operations.
That sent stocks spiraling downward in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel.
“The fact is, people are scared and the only thing they’re doing is selling,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research. “Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working.”
The selling was so extreme that only 107 stocks rose on the NYSE — and 3,121 dropped. That’s a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.
Find out more at The Real John McCain
Oct. 3 (Bloomberg) — The U.S. lost the most jobs in five years in September and earnings rose less than forecast as the credit crisis deepened the economic slowdown.
Payrolls fell by 159,000, more than anticipated, after a 73,000 decline in August, the Labor Department said today in Washington. The jobless rate, the last one reported before the presidential election, remained at 6.1 percent. Hours worked reached the lowest level since records began in 1964.
The world’s largest economy may be headed for bigger job losses as the worst financial meltdown since the Great Depression causes consumers and companies to retrench. A sinking labor market and rising borrowing costs raise the odds Federal Reserve policy makers will cut interest rates by their Oct. 29 meeting.
“The financial panic is a body blow to business confidence, and companies are now battening down the hatches,” Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “We’re in store for very sizable job losses across many industries. A rate cut by the Fed could come before the next meeting.”
Revisions added 4,000 to payroll figures previously reported for August and July. The Labor Department said it was “unlikely” that Hurricane Ike, which struck the Gulf Coast last month, “had substantial effects” on payrolls figures.
After today, the total decline in payrolls so far this year has reached 760,000. The economy created 1.1 million jobs in 2007. […]
The jobless rate is up 1.4 percentage points from September 2007. Since World War II, the rate has risen only twice during similar periods before presidential elections. In both cases — when Bill Clinton defeated George H. W. Bush in 1992 and when Ronald Reagan beat Jimmy Carter in 1980 — the incumbent party lost the election.
Americans will go to the polls on Nov. 4 and the October jobs report is due Nov. 7.
“Voters are extremely angry, and they want someone to blame,” said Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis.
Democratic presidential nominee Barack Obama has opened up a lead over Republican rival John McCain in the aftermath of their first debate and amid growing concerns about the economy, according to a Pew Research Center survey taken Sept. 27 to Sept. 29. A mid-September poll from Washington-based Pew had shown the candidates were in a statistical dead heat.
Earlier in September, a Bloomberg/Los Angeles Times poll showed more respondents said Obama would do a better job handling the financial crisis than McCain, and almost half of the voters believed he had better ideas to strengthen the economy than his rival.
McCain is stuck between a rock and a hard place – his judgment is on the line with Palin – I suppose all he can hope for is that old Palin magic to come through for him – but she can’t always talk out of a teleprompter. McCain at 72 has a job to convince everyone to vote in a fool – and we have already voted in one – and the fireworks of his administration are all around us!
McCain says that he always puts country first. In this important case, that is simply not true.
Will someone please put Sarah Palin out of her agony? Is it too much to ask that she come to realize that she wants, in that wonderful phrase in American politics, “to spend more time with her family”? Having stayed in purdah for weeks, she finally agreed to a third interview. CBS’s Katie Couric questioned her in her trademark sympathetic style. It didn’t help. When asked how living in the state closest to Russia gave her foreign-policy experience, Palin responded thus:
“It’s very important when you consider even national-security issues with Russia as Putin rears his head and comes into the airspace of the United States of America. Where—where do they go? It’s Alaska. It’s just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to—to our state.”
There is, of course, the sheer absurdity of the premise. Two weeks ago I flew to Tokyo, crossing over the North Pole. Does that make me an expert on Santa Claus? (Thanks, Jon Stewart.) But even beyond that, read the rest of her response. “It is from Alaska that we send out those …” What does this mean? This is not an isolated example. Palin has been given a set of talking points by campaign advisers, simple ideological mantras that she repeats and repeats as long as she can. (“We mustn’t blink.”) But if forced off those rehearsed lines, what she has to say is often, quite frankly, gibberish.
Couric asked her a smart question about the proposed $700 billion bailout of the American financial sector. It was designed to see if Palin understood that the problem in this crisis is that credit and liquidity in the financial system has dried up, and that that’s why, in the estimation of Treasury Secretary Hank Paulson and Fed chairman Ben Bernanke, the government needs to step in to buy up Wall Street’s most toxic liabilities. Here’s the entire exchange:
COURIC: Why isn’t it better, Governor Palin, to spend $700 billion helping middle-class families who are struggling with health care, housing, gas and groceries; allow them to spend more and put more money into the economy instead of helping these big financial institutions that played a role in creating this mess?
PALIN: That’s why I say I, like every American I’m speaking with, were ill about this position that we have been put in where it is the taxpayers looking to bail out. But ultimately, what the bailout does is help those who are concerned about the health-care reform that is needed to help shore up our economy, helping the—it’s got to be all about job creation, too, shoring up our economy and putting it back on the right track. So health-care reform and reducing taxes and reining in spending has got to accompany tax reductions and tax relief for Americans. And trade, we’ve got to see trade as opportunity, not as a competitive, scary thing. But one in five jobs being created in the trade sector today, we’ve got to look at that as more opportunity. All those things under the umbrella of job creation. This bailout is a part of that.
This is nonsense—a vapid emptying out of every catchphrase about economics that came into her head. Some commentators, like CNN’s Campbell Brown, have argued that it’s sexist to keep Sarah Palin under wraps, as if she were a delicate flower who might wilt under the bright lights of the modern media. But the more Palin talks, the more we see that it may not be sexism but common sense that’s causing the McCain campaign to treat her like a time bomb.
Can we now admit the obvious? Sarah Palin is utterly unqualified to be vice president. She is a feisty, charismatic politician who has done some good things in Alaska. But she has never spent a day thinking about any important national or international issue, and this is a hell of a time to start. The next administration is going to face a set of challenges unlike any in recent memory. There is an ongoing military operation in Iraq that still costs $10 billion a month, a war against the Taliban in Afghanistan and Pakistan that is not going well and is not easily fixed. Iran, Russia and Venezuela present tough strategic challenges.
Domestically, the bailout and reform of the financial industry will take years and hundreds of billions of dollars. Health-care costs, unless curtailed, will bankrupt the federal government. Social Security, immigration, collapsing infrastructure and education are all going to get much worse if they are not handled soon.
And the American government is stretched to the limit. Between the Bush tax cuts, homeland-security needs, Iraq, Afghanistan and the bailout, the budget is looking bleak. Plus, within a few years, the retirement of the baby boomers begins with its massive and rising costs (in the trillions).
Obviously these are very serious challenges and constraints. In these times, for John McCain to have chosen this person to be his running mate is fundamentally irresponsible. McCain says that he always puts country first. In this important case, it is simply not true.
Sarah Palin Vlog #1: Katie Couric Interview
Sarah Palin Vlog #2: Debate Prep
Sarah Palin Vlog #3: Cramming for the Economics Debate