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http://www.forbes.com/home/2008/11/1...12bailout.html
Attempting to solve a financial crisis that resulted from too much debt - by going into debt. Hope it's worth it.
http://biz.yahoo.com/ap/081112/wall_street.html
"We were wrong before. This is what we should have done. Certain this time, guys, seriously."
http://biz.yahoo.com/rb/081112/busin...ial6.html?.v=6
It seems one flaw in the Welfare state is becoming apparent... who deserves help? And who decides what to give, to whom?
http://www.cnbc.com/id/27662540/
Wasn't I saying this would happen like, not two or three months ago
http://www.bloomberg.com/apps/news?p...efer=worldwide
Great news: banks are now "sourcing" their debt "competitively". Translation: everyone's competing for government money. This is what some might call the "looting" or "parasitic" stage of a corporate welfare state.
http://www.dailymail.co.uk/news/arti...e-economy.html
These people truly believe that continuing to over-stimulate the market to unsustainable levels is "good", and that a recessionary period where the market re-adjusts would be "disastrous".
I'm incredibly biased, of course, but to me it seems like perhaps our politicians are really just pulling shit out of their ass.
According to CreditSights, a research firm in New York and London, the U.S. government has put itself on the hook for some $5 trillion, so far, in an attempt to arrest a collapse of the financial system.
http://biz.yahoo.com/ap/081112/wall_street.html
Though Paulson's announcement marks a major shift in the original bailout plan and rattled investors, Wall Street analysts generally believe the Treasury is now on the right path.
"That's really what they should have done originally," said King. "First and foremost, we have to make sure banks are going to survive and then we can worry about lending. This is the quickest and most efficient way to do that."
"Buying bad assets doesn't do that," he said.
"That's really what they should have done originally," said King. "First and foremost, we have to make sure banks are going to survive and then we can worry about lending. This is the quickest and most efficient way to do that."
"Buying bad assets doesn't do that," he said.
http://biz.yahoo.com/rb/081112/busin...ial6.html?.v=6
Elsewhere, some efforts to cure both national economies and companies ailing from the credit crisis looked like they were in danger on Wednesday.
The International Monetary Fund withheld official backing for a $6 billion bailout plan for Iceland, the Financial Times reported, putting loans to the North Atlantic country at risk.
Some of British bank Barclays' biggest shareholders have threatened to vote against a plan to raise 7 billion pounds ($10.8 billion) of capital unless it improves terms of the deal, British newspapers reported.
Aides to U.S. President-elect Barack Obama, meanwhile, were playing down reports of tension with the Bush administration over help for the stricken car industry.
Democratic congressional leaders said they would push for emergency legislation to bail out struggling U.S. automakers, possibly by amending the $700 billion rescue program, which now only applies to banks and other financial firms.
Paulson on Wednesday said that non-financial firms as well as banks may need additional cash infusions but that he saw "implementation difficulties" aiding companies that were not federally regulated.
General Motors Corp, Ford Motor Co and Chrysler LLC are seeking $25 billion in urgent assistance, in addition to loans to develop fuel-efficient cars.
The World Bank said more countries were seeking its help and its president, Robert Zoellick, warned that global trade may decline next year for the first time in more than a quarter century as the credit crisis reduces trade financing.
Zoellick said the bank expected its lending to increase to $35 billion this year from $13.5 billion last year.
The International Monetary Fund withheld official backing for a $6 billion bailout plan for Iceland, the Financial Times reported, putting loans to the North Atlantic country at risk.
Some of British bank Barclays' biggest shareholders have threatened to vote against a plan to raise 7 billion pounds ($10.8 billion) of capital unless it improves terms of the deal, British newspapers reported.
Aides to U.S. President-elect Barack Obama, meanwhile, were playing down reports of tension with the Bush administration over help for the stricken car industry.
Democratic congressional leaders said they would push for emergency legislation to bail out struggling U.S. automakers, possibly by amending the $700 billion rescue program, which now only applies to banks and other financial firms.
Paulson on Wednesday said that non-financial firms as well as banks may need additional cash infusions but that he saw "implementation difficulties" aiding companies that were not federally regulated.
General Motors Corp, Ford Motor Co and Chrysler LLC are seeking $25 billion in urgent assistance, in addition to loans to develop fuel-efficient cars.
The World Bank said more countries were seeking its help and its president, Robert Zoellick, warned that global trade may decline next year for the first time in more than a quarter century as the credit crisis reduces trade financing.
Zoellick said the bank expected its lending to increase to $35 billion this year from $13.5 billion last year.
http://www.cnbc.com/id/27662540/
In recent days the government also has stepped in to to assist credit-card company American Express and ramped up its aid to insurer American International Group.
That has raised the issue of why the government is willing to provide help to Wall Street financial firms but not assembly-line workers in Michigan.
There are, in fact, increasing calls for a second economic stimulus package to help consumers and small businesses as well as more help for distressed homeowners.
"At some point you have to say this doesn't make any sense anymore," Isaac says. "I don't know whether we draw that line after General Motors and Ford or before General Motors and Ford. But at some point we have to draw the line."
That has raised the issue of why the government is willing to provide help to Wall Street financial firms but not assembly-line workers in Michigan.
There are, in fact, increasing calls for a second economic stimulus package to help consumers and small businesses as well as more help for distressed homeowners.
"At some point you have to say this doesn't make any sense anymore," Isaac says. "I don't know whether we draw that line after General Motors and Ford or before General Motors and Ford. But at some point we have to draw the line."
http://www.bloomberg.com/apps/news?p...efer=worldwide
General Electric Co. said the U.S. government agreed to insure as much as $139 billion in debt for lending arm GE Capital Corp., the second time in a month it has turned to a federal program designed to help companies during a global credit crunch.
Granting GE Capital, which isn’t a bank, access to a new Federal Deposit Insurance Corp. program may reassure investors and help the unit compete with banks that already have government protection behind their debt, said Russell Wilkerson, a spokesman for the Fairfield, Connecticut-based company. Coverage would be for about $139 billion, or 125 percent of total senior unsecured debt outstanding as of Sept. 30 and maturing by June 30.
“Inclusion in this program will allow us to source our debt competitively with other participating financial institutions,” Wilkerson said. GE sent investors an e-mail about the program today and posted the letter on its Web site. “Our participation is a positive development for our investors.”
Granting GE Capital, which isn’t a bank, access to a new Federal Deposit Insurance Corp. program may reassure investors and help the unit compete with banks that already have government protection behind their debt, said Russell Wilkerson, a spokesman for the Fairfield, Connecticut-based company. Coverage would be for about $139 billion, or 125 percent of total senior unsecured debt outstanding as of Sept. 30 and maturing by June 30.
“Inclusion in this program will allow us to source our debt competitively with other participating financial institutions,” Wilkerson said. GE sent investors an e-mail about the program today and posted the letter on its Web site. “Our participation is a positive development for our investors.”
http://www.dailymail.co.uk/news/arti...e-economy.html
Interest rates could be slashed to zero for the first time as the Bank of England battles the deepening recession.
Governor Mervyn King said he is ready to reduce rates to ‘whatever level is necessary’ to counter the economic storm.
He warned Britain’s economy could shrink by at least 2 per cent during 2009, pushing inflation into negative territory for the first time in almost half a century.
Governor Mervyn King said he is ready to reduce rates to ‘whatever level is necessary’ to counter the economic storm.
He warned Britain’s economy could shrink by at least 2 per cent during 2009, pushing inflation into negative territory for the first time in almost half a century.
I'm incredibly biased, of course, but to me it seems like perhaps our politicians are really just pulling shit out of their ass.
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