Can these massive bail outs cause the United States to default on it's own debt?
There. I said it.
Honestly I don't know the answer but it is something I sure want answered. Otherwise it's like we have the bad uncle here, the gambling addict who we bail out and bail out yet he keeps ending up in Las Vegas only to be killed by a gang of loan sharks after we're out our life savings.
Is that scenario possible?
Let's find out.
Economists are now tallying up the numbers and estimating the effect of the latest bail out on the federal deficit and it ain't pretty.
Ok, this is my bad. I was looking over my last Manufacturing Monday. It seems that Windows Live Writer reposted it. Can you please set it more downwards where it belongs, and not at the top? Thanks. Sorry for any inconveniences.
The CNBC screen flashed with massive losses of hedge funds. 18% down, 14% down, 20% down.....
It appears Dr. Doom is batting 1000 for he just predicted the hedge funds would be next to collapse.
While they are blaming a ban on short selling, one foreboding issue pops up:
Some pension funds and endowments that have relied on hedge funds for a stable, higher-than-average source of investment returns have been watching the unfolding trouble with alarm
U.S. Securities and Exchange Commission Chairman Christopher Cox said Congress should grant authority to regulate the credit-default swaps market amid concern the bets are helping fuel the global financial crisis.
Lawmakers should ``provide in statute the authority to regulate these products to enhance investor protection and ensure the operation of fair and orderly markets,'' Cox told the Senate Banking Committee today at a hearing in Washington.
You heard it. He said it. Representative Peter DeFazio called Treasury Secretary Paulson's Bail Out Bill a bunch of B.S.....
The Reaction? Damn straight Congressman DeFazio!
If only we had more of you to represent us!
Anyone not familiar with Congress Representative Peter DeFazio of Oregon, you should be. This is one guy who cannot be bought and speaks some obvious truth and votes accordingly! Pander? Not this guy and he sure as hell isn't pandering in this speech.
Greetings folks, and welcome to another episode of Manufacturing Monday! Well it seems another European firm has opened up a factory here in the good ol' US of A. Meanwhile, Chevy's turning to foreign sources for lithium batteries for it's upcoming Volt. Finally, we take a look at a push to investigate foreign pharmaceutical labs.
Supposedly Democrats have the gall to ask that these bastards leveraging their companies 40:1 and pocketing the cash not have their multi-million dollar golden parachutes and that is the sticking point.
Here is what Democrats want, which appear to be the shares and unless I'm reading this wrong, nothing about paying good money for worthless debt.
Limitation on Authority
1. In General
The Secretary may not purchase, or make any commitment to purchase, any troubled asset unless the Secretary receives contingent shares in the financial institution from which such assets are to be purchased equal in value to the purchase price of the assets to be purchased.
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