Posts Tagged ‘bail out’
I can definitely tell many have already moved in to “holiday” mode! There were only 13 submissions this week. Still not too shabby, but expected. Also, I received word this weekend that The BoBo Carnival of Politics will be the featured Carnival again over at Blog Carnival on Monday, December 29th. So, make sure you guys get your submissions in this week for the December 28th edition as that will be the one seen by everyone that comes by and checks it out. That will be the last carnival of 2008! I’m not expecting too many at all that edition anyway considering it’s right in between Christmas and New Years. Hopefully, there will be enough bloggers out there that have a real life and will be on vacation – unlike this BoBo!
So, without further adieu – here is this week’s edition:
I’m still wondering just what exactly her qualifications are for being a Senator considering she has no experience in politics at all. I too am in agreement with Kuby.
ANTHONY PHIRI presents Leaders And Commentators:Views Of A Maverick Intellectual posted at AS Online Journal & Top 10 Website Rankings Index, saying, “It’s all about free speech and meaningful argument, nothing else.”
Interesting blog you have there Anthony. You might want to check the page you linked to. Your adsense banner ad cuts right through the middle of your last post, your page bottom banner actually cuts right through the following post, and it appears that something is missing from the top of same article. Other than that, I enjoyed your discussion on Caroline Kennedy. But, I would have to disagree with your conclusion – she is in no way prepared to be a Senator in THIS country.
David Lamb presents Mr. Keynes Finds a New Home: The exportation of American economic policy posted at Inside Government.
Another excellent post by those guys over at Inside Government (no, I’m not biased or anything). Looks like other nations who were against lowering rates during a recession and increasing deficit spending just might be seriously considering it. David lays it out very well in this discussion.
debergerac78 presents Was Governor Blagojevich really that stupid? posted at The Business Ethics Blog, saying, “The Illinois governor’s attempt to peddle a Senate seat for money or favors would have Lincoln spinning in his grave.”
I wouldn’t say he is that stupid – I would say that he’s that brazen. Given he grew up in Chicago politics where corruption is the norm – to him he truly believes he didn’t do anything wrong. Hell, he even challenged the FBI just days before he was arrested. Fortunately for the rest of us and Illinois – this politician is about to find out just how wrong he is and just how wrong and fraudulent those Chicago politicians – like Obama – really are!
Ah yes. I referenced this in a previous post this week related to the bailouts. Bradley actually has 3 parts to this series with an expected 4th. There is some idiot out there calling for a boycott of the state of Alabama because of the foreign auto manufacturers there. These are various responses from Bradley to some of the most ridiculous crap found on that other site.
Welcome back Aahz. When I read this article on Drudge earlier in the week I was absolutely floored. Those parents are idiots. Do you really thinks he believes his own bullshit explanations? I feel bad for those kids. Once they hit mainstream schools their lives are going to be miserable. Kids can be cruel to one another. It wouldn’t surprise me if teachers begin to refuse to accept or teach them because they will refuse to call them by there names.
Hey Yid! Shalom. Mashlomech! You got my vote. I love that line “Jewish by insemination” Sure to be a classic.
Dude – that really sucks. If they are going to follow her and Al Sharpton – they should have given you equal time as well. But, I do have to agree – you are more unqualified that Pamela Geller. You still have my vote. I also have to point out – an inside curve is practically a guaranteed homerun.
Ain’t that the truth! It’s just the corrupt politics of the Chicago machine. As stated earlier – he probably really believes he did nothing wrong since this is business as usual in Illinois. It still amazes me that anybody would think that Obama isn’t corrupt considering he learned his politics by these same people. But – I still want to hear Bloggy’s side. It will make for some great entertainment and interesting blogging!
Well – I’m just going to reiterate something I said in a previous post – GWB is a freakin’ idiot. The good news is that our representatives listened to us this time. The bad news is – the President is a freakin’ idiot. I don’t really buy in to your idea that we’re a nation of pussies. I think what is happening is that a lot of us out here are trying to figure out what we can do short of a complete pillage and takeover of D.C.
Buck Says presents Auto Bailout: A Horse With Two Ends posted at Buck Says, saying, “The Auto Bailout has politicians lining up left and right with little attention to the possible scary results of their actions”
Welcome, Buck! Well, as we all know – the good news is our representatives heard us. The bad news is, President Bush is an idiot. One of the other aspects that you failed to mention is that almost $2,000 of any American built car goes directly to those union organized legacy costs. The foreign automakers are able to put a heckuva lot of cool stuff in their cars for that extra $2000 which is why they are more attractive and affordable. I agree with your assessment there – bankruptcy never should have been taken off the table. It would have forced the UAW to make concessions. Unfortunately, Bush gave the automakers $17.4B with now strings attached. They just have to submit a plan by viability plan by March otherwise the loan comes due. My only question is – what if the plans aren’t worth shit and Congress and Obama reject them – how the heck are we taxpayers going to get $17.4B back from the automakers when they won’t have it?
I thought his choice of Warren was pretty odd myself given Obama’s politics and promises to you guys on the left. Looks like we right-wingers aren’t the only one’s who will be watching now! But, what surprises me is that it surprises you guys. He clearly stated in a debate that he is opposed to gay marriage. Why wouldn’t he invite a pastor who opposes gay marriage to give the invocation? The reason why I thought it odd that he invited Warren is the fact that Obama is a follower of Black Liberation Theology – why would he invite an Evangelical? But, still – we on the right were warning you guys on the left for the last year that he’s not showing his true face. He was only saying what he needed to say to get the power. He has lied about his entire history and denied his relationships with far-left radicals. It doesn’t surprise me that he has done an about face. It looks like you guys will be left without hope because he has changed. Is this the change you were expecting?
U.S. Common Sense presents Political Blog Listing posted at U.S. Common Sense, saying, “I still need at least four bloggers to volunteer for a free blog review. Anyone who just wants their site listed is more than welcomed to participate.”
Everyone should take him up on this. It’s a great opportunity to get your site listed and to get some good advise regarding your blog. He gave me some good pointers – which I haven’t implemented yet – but plan on it. Sometimes its a good thing to get another eye on things.
That concludes this edition. Submit your blog article to the next edition of The BoBo Carnival of Politics using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Well, considering there was a debate last night – you’d think that would be my topic of discussion today. Nope, sorry – there’s something more important that we need to discuss – this country’s financial and economic security!
As we’re on the eve of yet another vote on this stupid bail-out plan by the government – and – it is expected to pass this time around – there is something else that is not being widely reported right now. No amount of money provided to the financial sector is going to make a difference if the “silent run” on the banks continue.
A “silent run” is different from a regular bank run. A bank run is when all the customers line up to withdraw all of their deposits from a bank thinking that bank is going to fail. When that happens, banks can no longer fulfill their obligations. A silent run is a withdraw of all the uninsured deposits (those above the $100,000 cap). This explains the reason why the senate has proposed an increase to $250,000 – to keep those depositors from taking the largest amounts out.
I’m sure you’ve heard that Wachovia was sold to Wells Fargo – the reason being is because of the “silent run” on that bank. While most of us may not be in that position, the problem is, once the silent run starts – the bank runs follow. No amount of bail out is going to help this economy if the banking system shuts down entirely. What has happened as a result – as I am putting this piece together – is that the credit lending system is in a near freeze. The banks have to freeze right now because of the silent runs going on all around the country. People with more than $100,000 in deposits are withdrawing funds to below the insured amount and moving them elsewhere (not necessarily in to other banks).
As the banks are seeing their deposits decline, they stop lending money in fear they will not be able to fulfill those credit obligations. I’m not talking about Joe Public who wants a $5,000 LOC. We’re talking about major loans to other banks and mortgage companies. Part of the failure of Wachovia and WaMu was that other banks would not provide them short-term loans to cover their liquidity. So, even if these banking institutions get the bailout to sell off their bad debt – this just brings them back to zero on their balance sheets. This does not help them with regards to their credit and loan obligations. They need actual money in the bank to lend it out.
“It’s going to get much, much worse,” said Gregory Peters, head of credit strategy at Morgan Stanley in New York. “The credit markets are effectively shut, the CP market, which there’s not enough focus on, is under complete duress. That can’t be sustained, as that’s the lifeblood of corporations funding themselves.”
Commercial banks and bond dealers borrowed $348.2 billion from the Fed as of yesterday, an increase of 60 percent from the prior week amid the worsening credit freeze.
The freeze won’t end with the bailout because, as you can see – they are already borrowing money from the Feds outside of the bailout – and the system is still in a freeze. These types of freezes effect businesses outside of the financial industry – businesses that need to meet payroll and inventory.
Just a real quick Operations Management lesson – Have you ever heard of JIT Inventory? JIT stands for Just In Time. Many large manufacturers rely on JIT. For instance, when Ford builds a car – as the car is going down the assembly line – lets say they are about to put on the headlights. They don’t keep a huge inventory of headlights because the cost to store them would be astronomical. So, what they do is set up an arrangement for the supplier to provide a set amount of headlights at specific intervals throughout the manufacturing process whereby reducing inventory storage costs. Savings that can be past on to the consumers. In order for this JIT system to work, Ford needs to have cash available on a regular basis to pay the supplier to provide the inventory. They do this on revolving lines of credit.
So – when credit lines freeze – Ford can’t pay the supplier – the supplier can’t produce or deliver – cars don’t get built – the auto industry shuts down because they can’t put headlights in their cars. This has nothing to do with the bail out that is intended to purchase bad debt. This has everything to do with making sure there is still money in the banks to lend out – which can’t be done if customers are withdrawing their money.
Please – keep your money in the bank! If you have deposits of less than $100,000 it is insured. You can’t lose that money. It is yours. If I’m fortunate enough to have readers that have more than $100,000 in deposits – please don’t take that money out of your bank. In the least – if you withdraw – only do so down to the insured limits – move your money in to another bank. As long as the money is still flowing within the banks – it might ease the tension and fears in the lending market that could help break this freeze.
While the bailout might provide some confidence in the markets – we the people putting our money in the banks need to do our part as well – have confidence in the banks and keep it where it is.
UPDATE! Well – that bail out bill just passed in Congress 263 – 171. Here’s the REAL reason this bill passed – these are the “incentives” or PORK as I like to call it!
October 2, 2008 2:40
I spent some time this morning with the Joint Committee on Taxation score of the “tax extenders” portion of the bailout bill. The rough cost of the additions, which your children and grandchildren will pay, is $110 billion through 2018. This includes an Alternative Minimum Tax patch, and lots of tax subsidies for renewable energy. Some other highlights:
$2 million excise tax exemption on “certain wooden arrows designed for use by children.”
$49 million in tax breaks for people (in Alaska, mostly) receiving compensation from the litigation over the Exxon Valdez oil spill.
$100 million in tax breaks for “certain motorsports racing track facilities.”
$179 million in tax incentives for “investment in the District of Columbia.”
$49 million for a charitable deduction for corporations who donate books to libraries.
$33 million for an economic development credit in American Samoa.
$61 million in added credits for “steel industry fuel” also known as liquefied coal waste sludge.
$397 million for the “domestic production activities deduction” for film production
$81 million to extend and modify treatment of “certain film and television productions.”
Well – that pretty much just sucks now don’t it? Here I was, all prepared for the second coming of Jesus now that Congress did not pass that stupid assed bail out bill. I had the clown-mobile all packed up and ready to go. The BoBo Family was put on alert and they had all their gear ready. I grabbed up all my seltzer bottles, balloons, over-sized shoes, noses, hand guns, and rifles and crammed them in to the back of the ol’ BoBo Mobile (BTW – you know how much shit you can pack in to a clown car? Holy crap!) just waitin for the financial armageddon.
Well – as I sit here – DJIA is UP almost 300 points at mid-day. I thought it was supposed to crash? I thought people were supposed to start jumping out of windows on wallstreet? – actually – I’d still like to see that anyway! But, supposedly, as all of our so-called smart leaders had told us while whipping us up in to a frenzy – if this bill didn’t get passed – we would find ourselves in the middle of a collapse proportionate and equivalent to the collapse of Russia. Maybe there is someone out there smarter than me that can explain to me if that were true – why is the stock market on the increase today?
Oh – wait – I get it. Congress is on vacation today! There’s no one in D.C. to interfere with and screw up business today. Awesome! Also, could it actually have to do with the fact that our stock market is just ONE indicator out of a whole host of economic indicators? See, the thing today is, even if the market crashes – business for the rest of us will actually continue! People will get sick and need healthcare – so, doctors, hospitals, insurance companies, and all those that have anything to do with healthcare will still be working.
Everybody needs to eat – so – grocery stores, corner markets, farmers markets, farms, truckers, distributors, etc – will still be working because we as consumers will still be buying food.
Same thing with housing – we all need shelter – while some may not be able to afford their own homes – there will still be apartment complexes, homes for rent, etc. As the foreclosures start coming on the market – this opens up more inventory for the smart investors – prices come down and investors can afford to rent them out cheaply. Now would not be the time to flip them.
Certainly, our dollar may decline which will cause prices to go up, oil/gas will go up, etc – but – as long as you are not stupid about your money and actually budget – you can make it through. Do you really need that Hostess Ding Dong?
I saw this coming last year. I started moving all my money in to cash-based investments (cd’s, money markets, etc.), gold, and coin collections – things that have real tangible value. I started paying down my debt last year – we only have 2 credit cards now with small balances – the rest will be available credit lines in case of emergencies. Additionally, while I am the first to rail against those who force global warmongering on us – you know I’ve been all for conservation – I put solar panels on my roof. With all the state and local rebates, federal tax incentive, and local exemptions, I saved a lot of money putting it in. I got rid of my hot water heater and turned off the circuit breaker to that tank. I save $100/month alone on that.
What I’m saying is – if you’re smart about your money – you will survive any hardship coming our way as a result of Congress’s failure to pass the bail out bill (and rightfully so). Yes, there will be some trickle down as a result – but – catastrophic and world changing to the rest of us? I don’t think so.