Automakers had a setback when the Congressional Budget Office doubled their estimate of the cost to the government to insure against default to $7.5 billion, rather than $3.75 billion.
Any tie in to US citizens to get those jobs? Nary a word anywhere!
Remember how the government didn't bail out Lehman? Just just one little thing about that.
NEW YORK, Sept 16 (Reuters) - The Federal Reserve Bank of New York took the unusual step of providing some $87 billion in financing to units of bankrupt Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) to prevent disruption in trading markets as customers flee, according to a filing on Tuesday.
JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) advanced $87 billion to Lehman on Monday to help clear and facilitate securities transactions with customers and clients of Lehman "to avoid disruption of financial markets," according to documents filed in U.S. Bankruptcy Court for the Southern District of New York.
The New York Fed then repaid the advance, according to filings. A Fed representative declined to comment.
Lehman's holding company filed for bankruptcy on Monday, and although its broker-dealer units are not covered under the bankruptcy filing, customers typically unwind trades with a dealer whose holding company is bankrupt.
On Tuesday, at the request of Lehman and the New York Fed, JPMorgan advanced $51 billion to Lehman as part of a so-called second day advance. Court documents did not specify whether the New York Fed will repay the second amount.
Instead of detailing specifics, Obama spends most of his time attacking McCain.
Here's Obama's plan:
More oversight of financial institutions that borrow from the government
reforming requirements for all regulated financial institutions
requiring greater transparency
a streamlining of regulatory agencies
a new policy of regulating institutions for “what they do, not for what they are”
cracking down on trading activity that constitutes market manipulation; and establishing a process that identifies risks in the financial system earlier.
Note the similarity to McCain and again, the lack of specifics.
This is not good, either candidate, in my opinion. Obama full speech text.
Tightening capital requirements vs. taxpayer money, at least in details is about the only shades of difference, yet both plans are so damn vague it is very difficult to differentiate between them.
One thing if one wants to lead, they don't open with a defensive attack. What can I say, someone needs to read the Art of War.
I'd love to see some analysis on speculators. We kind of dropped that ball and while we have claims speculators drove up the market, then the downside of this must be true for that claim to be valid.
Oil continued to collapse today, closing at $91.15, after falling as low as $90.51 a barrel. This means that Oil is down almost $10 in 2008, and only about 15% higher than at this point last year.
This was not a "rational" move, any more than the sudden moves from $121 to $139 a barrel were a few months ago. This move, more than anything else, probably reflects (1) margin calls, as speculators caught long when Oil fell below $100 had to liquidate; and (2) forced liquidation by those who have to sell their "winners" in order to raise funds to cover other liquidity requirements (e.g., banks, insurance companies, pensions, hedge funds).
So it would be no surprise at all to see the price of Oil "boomerang" at least temporarily back over $100.
“We need a 9/11 commission, and we need a commission to figure out what went wrong and how to fix it,’’ he said. “And I know we can do it and how to do it.”
He continued the reformulation – that when he says the fundamentals of the economy, he is referring to the workers – at the rally here. “The working people of the state of Florida and this nation are the most innovative, hardest working, the best-skilled, most productive, most competitive in the world,’’ he said. “And this foundation of our economy, the American worker, is strong. But it’s been put a great risk by the greed and mismanagement of Wall Street and Washington.’
huh, if McCain so much believes in workers why won't he stop enabling outsourcing and bringing in foreign guest workers to displace them and lower wages?
How about it McCain, ya gonna actually get a clue that the economy in a Democracy is the middle class?
I think a commission is a good idea. But this is happening right now, so action right now is important. Going over the destruction and dead bodies after the fact will also be useful but won't help right at this moment.
CNBC is reporting the word is AIG will declare bankruptcy tomorrow. There is a question if they will get a bail out now but overnight their $40B need went up to $70B or so.
It's astounding, not clear if they will but the talk is sure sounding identical to Lehman over the weekend. Hunting the globe looking for cash and doors are shutting.
The stats are great, but I suggest a micro analysis.
Hire yourself into a factory.
Spend a little time "inside".
If you are a creative type, it won't take long for you to see hundreds of "problems/opportunities" for improvement in the manufacturing process.
I don't know any factory floor worker who doesn't know how to reduce the costs and improve the productivity of his operation.
These "opportunities" are going to waste. Why is that?
Answer that question and find the fix and you can restore the preeminence of US Manufacturing - even against global competition.
But, beware. The "answers" require a fundamental change in the way manufacturing is done. It requires a basic change in the way manufacturing is done. It requires a fundamental change in the currently accepted theory of capitalism!
Obama yesterday held a phone call with one-time Treasury secretaries Robert Rubin and Lawrence Summers, who won praise a decade ago for helping avert other potential meltdowns, and former Federal Reserve Chairman Paul Volcker, credited with halting the raging inflation of the late-1970s and early-'80s.
McCain on Saturday talked with Harvard economics Professor Martin Feldstein, a onetime adviser to President Ronald Reagan, Stanford University economist John Taylor and former Hewlett- Packard Co. Chief Executive Carly Fiorina.
May I suggest the first step Senator McCain is to realize Fiorina is a fired CEO turned lobbyist and have no formal training in economics much less years of research and a PhD?
Wouldn't that be nice? And while you're at it, why don't you consult the real economists of the day, regardless of party or even philosophy, start looking at those balance sheets and plain get off of your corporate generated supply side philosophy?
Now...isn't Rubin with Citigroup and connections to Goldman Sachs, weren't they assuredly part of this debacle?
and to be fair, Feldstein is on the board of AIG and also promoting partial privatization of social security...
And they are consulting these people...just now?
Shouldn't they have been consulting with them over a year ago? How about while in the Senate? You know, ages ago...
It appears Feldstein is promoting a partial refinancing package to deal with declining housing prices.
As far as this article claiming Obama had a plan 3 years ago, I believe that is fiction. Previous post on Obama and subprime.
AIG has been given special permission to access $20 billion of capital in its subsidiaries to free up liquidity by the state of NY
AIG rejects private equity injection but seeks $40bn bridge loan from Fed as it faces a potential downgrade from credit ratings agencies that could spell its doom
I've been out of work for 5 years and had a few job offers in other cities, but just can't afford to pay $100K in capital gains tax on my house just to take a job in another city where
the job pays $100K. I would have to work 10 years to save up from that $100K capital gains tax just to move. So, I stay in
my house and draw down on my savings. THe headhunter said he
can't find people with 20 years job experience to be managers who can move and
so his company is moving the whole department offshore including 20 jobs for younger workers.
So I call the home tax, the "outsourcing tax".
Another friend drives
2 hours in the morning and 2 hours at night because he can't
afford to move an give the government $100K in capital gains.
Remember, when you sell a home, you need the same amount
of money to buy another home. Better to just
waste gasoline than lose life savings.
I just a news flash that said "AIG is inverted". I have no idea what that means specifically. Something seemingly is imploding on AIG, but why and how and what, it's too confusing.
The Fed changed their asset swap rules, but do they have any treasuries left to swap? There are rumors that the Fed is now buying equities.
And then you have the implosion at AIG. It takes a lot of time just to keep up with all this.
Keynes told FDR in 1933 to borrow and expand the deficit to 12 percent of GDP. The 1934 spending was $3.4Fillion in a $39Billion Economy - the extra spending was $1.7Billion - a 50 per cent increase in the budget but 4 percent of GDP.
We probably need a similar size stimulus now to stop the meltdown. Any thoughts on the size of the stimulus?
FDR wrote about Keynes in a letter that 'I didn't understand one thing that man said.'
Big Three CEOs to lobby Congress on auto loans:
now they want $25B and the CBO says:
Any tie in to US citizens to get those jobs? Nary a word anywhere!
I just sent out the $3T Stiglitz Iraq war estimate claiming this is currently about $500B and ...hitting maybe $1T...
but now I'm wondering. Surely someone out on the Internets has a nice little bailout counter.
I also posted last night that report on an analyst in Asia with the "D" word for US and EU.
That's another question, where is the tipping point in US national debt where the US would actually default?
Ah, corporate socialism. I guess that's what happens since our government represents the corporations and not the people.
Remember how the government didn't bail out Lehman? Just just one little thing about that.
I'm sorry but this is not good.
Instead of detailing specifics, Obama spends most of his time attacking McCain.
Here's Obama's plan:
Note the similarity to McCain and again, the lack of specifics.
This is not good, either candidate, in my opinion. Obama full speech text.
Tightening capital requirements vs. taxpayer money, at least in details is about the only shades of difference, yet both plans are so damn vague it is very difficult to differentiate between them.
One thing if one wants to lead, they don't open with a defensive attack. What can I say, someone needs to read the Art of War.
I'd love to see some analysis on speculators. We kind of dropped that ball and while we have claims speculators drove up the market, then the downside of this must be true for that claim to be valid.
Oil continued to collapse today, closing at $91.15, after falling as low as $90.51 a barrel. This means that Oil is down almost $10 in 2008, and only about 15% higher than at this point last year.
This was not a "rational" move, any more than the sudden moves from $121 to $139 a barrel were a few months ago. This move, more than anything else, probably reflects (1) margin calls, as speculators caught long when Oil fell below $100 had to liquidate; and (2) forced liquidation by those who have to sell their "winners" in order to raise funds to cover other liquidity requirements (e.g., banks, insurance companies, pensions, hedge funds).
So it would be no surprise at all to see the price of Oil "boomerang" at least temporarily back over $100.
This is eerily similar to the idea in the early aughts that the dot.com meltdown wouldn't necessarily spread to the "old economy".
Well, McCain, at least in terms of the rhetoric, seems to be getting in front of this (sound plans and policy are of course another beast!)
McCain Calls for Commission:
huh, if McCain so much believes in workers why won't he stop enabling outsourcing and bringing in foreign guest workers to displace them and lower wages?
How about it McCain, ya gonna actually get a clue that the economy in a Democracy is the middle class?
I think a commission is a good idea. But this is happening right now, so action right now is important. Going over the destruction and dead bodies after the fact will also be useful but won't help right at this moment.
CNBC is reporting the word is AIG will declare bankruptcy tomorrow. There is a question if they will get a bail out now but overnight their $40B need went up to $70B or so.
It's astounding, not clear if they will but the talk is sure sounding identical to Lehman over the weekend. Hunting the globe looking for cash and doors are shutting.
The stats are great, but I suggest a micro analysis.
Hire yourself into a factory.
Spend a little time "inside".
If you are a creative type, it won't take long for you to see hundreds of "problems/opportunities" for improvement in the manufacturing process.
I don't know any factory floor worker who doesn't know how to reduce the costs and improve the productivity of his operation.
These "opportunities" are going to waste. Why is that?
Answer that question and find the fix and you can restore the preeminence of US Manufacturing - even against global competition.
But, beware. The "answers" require a fundamental change in the way manufacturing is done. It requires a basic change in the way manufacturing is done. It requires a fundamental change in the currently accepted theory of capitalism!
Bloomberg:
May I suggest the first step Senator McCain is to realize Fiorina is a fired CEO turned lobbyist and have no formal training in economics much less years of research and a PhD?
Wouldn't that be nice? And while you're at it, why don't you consult the real economists of the day, regardless of party or even philosophy, start looking at those balance sheets and plain get off of your corporate generated supply side philosophy?
Now...isn't Rubin with Citigroup and connections to Goldman Sachs, weren't they assuredly part of this debacle?
and to be fair, Feldstein is on the board of AIG and also promoting partial privatization of social security...
And they are consulting these people...just now?
Shouldn't they have been consulting with them over a year ago? How about while in the Senate? You know, ages ago...
It appears Feldstein is promoting a partial refinancing package to deal with declining housing prices.
As far as this article claiming Obama had a plan 3 years ago, I believe that is fiction. Previous post on Obama and subprime.
I got this for the RGE newsletter:
Your graphs and explanation give a better detailing on manufacturing stats and health I don't think I have read before.
Less inflation, I am just so, so thrilled.
Seems to be making sure Corporate lobbyists, NASSCOM and Silicon valley have unlimited guest worker Visas.
That is a scream funny...and huge sections of Vista were offshore outsourced....almost an analogous feedback loop.
I have no idea what you are talking about for you get an exemption up to $250k of profit. article on exemption.
I've been out of work for 5 years and had a few job offers in other cities, but just can't afford to pay $100K in capital gains tax on my house just to take a job in another city where
the job pays $100K. I would have to work 10 years to save up from that $100K capital gains tax just to move. So, I stay in
my house and draw down on my savings. THe headhunter said he
can't find people with 20 years job experience to be managers who can move and
so his company is moving the whole department offshore including 20 jobs for younger workers.
So I call the home tax, the "outsourcing tax".
Another friend drives
2 hours in the morning and 2 hours at night because he can't
afford to move an give the government $100K in capital gains.
Remember, when you sell a home, you need the same amount
of money to buy another home. Better to just
waste gasoline than lose life savings.
I just a news flash that said "AIG is inverted". I have no idea what that means specifically. Something seemingly is imploding on AIG, but why and how and what, it's too confusing.
The Fed changed their asset swap rules, but do they have any treasuries left to swap? There are rumors that the Fed is now buying equities.
And then you have the implosion at AIG. It takes a lot of time just to keep up with all this.
That's on main street and neither of them have barely mentioned it. Then....401ks.
Keynes told FDR in 1933 to borrow and expand the deficit to 12 percent of GDP. The 1934 spending was $3.4Fillion in a $39Billion Economy - the extra spending was $1.7Billion - a 50 per cent increase in the budget but 4 percent of GDP.
We probably need a similar size stimulus now to stop the meltdown. Any thoughts on the size of the stimulus?
FDR wrote about Keynes in a letter that 'I didn't understand one thing that man said.'
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