Daily Archives: December 21, 2008

The Obama Bailout Plan: Spending Beyond The Imagination

Uncle_sam"That’s nothing." Percy had leaned forward and dropped his voice to a low whisper. "That’s nothing at all. My father has a diamond bigger than the Ritz-Carlton Hotel." –F.Scott Fitzgerald, "The Diamond As Big As The Ritz"

It has occurred to the administration-in-waiting that every day that passes, every day between now and the January 20 swearing in, is a day in which the diving economy accelerates it move down.

There has not been a single figure on unemployment, housing, or consumer spending that would lead economists to believe that 2009 will be better than this year. As a matter of fact, a consensus is forming that it could be much, much worse.

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Posted on: December 21, 2008 – 9:58 am in Economy

Getting $120 Trillion Into The Global Economy

95129cIt used to be that $1 trillion seemed like a lot of money. Now the Obama administration-to-be says that it plans to put just short of that sum into the US economy over the next two years in the hope of creating between two and three million jobs.

The does not include the short-term capital the the Fred is pumping into banks through its emergency lending window.

On the other side of the Pacific, the Chinese have their own package for reviving their slowing economic system. Last month, the government in the world’s most populated country said it would lay out over $600 billion in the next two years.

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Posted on: December 21, 2008 – 7:26 am in Economy

Canadian Aid To GM (GM) And Chrysler Will Cover Two Week’s Expenses

Batmobile512Canada will put up $3.3 billion in government loans for troubled car companies. GM (GM) and Chrysler have large operations there, particularly plants. A shutdown of the firms would cost thousands of jobs.

The trouble with the capital from Canada is the it will only add two weeks so of wiggle room for the two American companies.

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Posted on: December 21, 2008 – 6:05 am in Autos,