.... I was thinking last week, how useful the Torture stuff had been to get people off the Bonus and bank MEME's. This GM stuff is deadly, politically letting the auto companies fail and bailing out the banks... That is one Road Less Traveled. I'd love to know what the 'Inner workings/thinkings' on that are. Either they think they can weather it, or they arn't going to do it. But they could weather it, if they go after the employee free choice act.
But... Trish Regan "running up the defficits is Inflationary"..... OMG buttercup
How about a little Riders on the Storm this morning:
Sunday, April 26, 2009
My Comment on the sunday morning shows
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4 comments:
The justification is clear: the banking industry is essential to interstate commerce, thus it falls under the commerce clause. The auto companies, while large, are not essential.
Furthermore, the bankruptcy of GM does not spell the end of the auto industry, the bankruptcy of Citi and/or BAC would pretty much put an end to the reserve banking system since there is not enough money in the Treasury to guarantee all the deposits in even one of those banks, so there would necessarily be a run on the bank (ie, every bank). The FDIC is already under-capitalized as well, so the next 29 smaller banks that go under this year will begin to fracture that agency anyway.
The more I read about the white paper on the banks' stress test, the more I am coming to realize what a house of cards this is. Yeah, yeah, I know the financial system is based on confidence and all that... but this is ridiculous. The largest banks in the world collectively have only a few percent of their debts covered with assets on hand, and those assets are continuing to drop in value.
When that light bulb goes off, the collective angst will rock the markets. And the federal agencies have shot all their bullets.
by biggest issue is that we aren't dealing with the Systemic risk/too big to fail. Which is due to the failings of our political system, where the banks are just greesing the politicians...
but I'm a big boy and am not surprised by continued injustice.
the FDIC has a huge backstop by congress, but if it does have to draw on it's treasury credit line, that should get congress back in action.
All I was pointing out is that the Public isn't going to like it, no matter what the Reality of it is.
wow... you have the black Helo's this morning...
I still have twenty hours or so to decide if I am going to fade my rotten mood, but I've been looking at charts... (and that is dangerous).
I see a lot of resistance and not a lot of good news necessary to push us through this resistance.
Third derivative game theory tells me the next bit of uncertainty will bring us back to Point E (Aversion), maybe a 23% fib pullback, maybe 38% or even 50%.
The white paper bullshit will need to sink in and I think that when it does the consensus will not be positive. Whose going to be rushing out to buy BAC Monday morning?
GM is dead. Those of us in Michigan have known this for a while. If you define dead as loss of jobs, loss of sales, loss of vendor sales, loss of Pontiac or Hummer brands, loss of share value, loss of the CEO, loss of bond value... which parameter do you want to use? The pulse is agonal and the unions and vendors and bond holders are just jockeying to get their 10 or 15 cents on the dollar. Maybe Utahans don't yet realize it, but we do.
Sure the liberal pro-labor do-gooders will get a few more brownie points by acting shocked that the jobs are gone while Dick Fuld and Ken Lewis vacation in Tahiti, but let's be serious... this was a done deal 6 months ago (or even earlier if you want to state the obvious that GM did not have a business model that was sustainable thru any downturn in the economy, ie, it was going to die with the next recession anyway.) The jobs were all but gone long ago and the $16 Billion already given to GM was flushed down the toilet.
lol.
well I've been complaining about the fact that the auto industry is still running on technology from the 1910's.
And is one of the least innovative industries in the history of business.
I've been rethinking my "Third Derivative diabolical thinking" Thesis.... sounds like "it's different this time, when we just went through short term "Buy the dip" and now a developing "Euphoric Top"... and I also think that I was misreading t-lo on monday tuesday. cause of not enough coffee and just being tired of "The game"
Another thing WE WE WE we we I I I somebody, needs to keep track of is that sometimes she is talking about the Top of a swing, and sometimes the top of the market. for the quarter or so..
Cheer up... you are harshing my Mello... we can be stressed on monday....
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