the second Great…..Discussion

Okay, when do we start calling it “Depression”?

All of this ‘crisis’ management may be doing more harm than good – and for a change I’m not referring to economics, but psychology. Mob dynamics in particular.

Financial fears are hammering asian stocks (It’s fascinating to me to watch Australia increasingly be lumped in with Asia financially.) – because we’ve such reason to be confident in our banking system.

GM and Chrysler may need even more money – and the situation is getting decidedly ‘odd’

Ford, the only U.S. automaker not seeking U.S. loans, said the UAW will accept stock for half of the payments into a so- called Voluntary Employee Beneficiary Association, or VEBA. The Ford agreement appears to require more cash up front than agreements sought by GM and Chrysler to keep $17.4 billion in aid, Brian Johnson, a Barclay’s analyst said.

My imagination runs away with me and suddenly I’m hearing the voice of Sandra Bullock telling me that “in the future all cars are made by Ford.” An employee owned company that has since bought up it’s American competition. An …. odd image that.

A related image comes from the fact that More money is being flushed down the banking toilet. The real kicker (for me) was contained in this bit:

The deepening global downturn is dragging down all kinds of businesses, and, with no bottom to the recession in sight, investors sent Wall Street down Monday. The Dow Jones industrial average tumbled 251 points to its lowest close since May 7, 1997, while the Standard & Poor’s 500 index logged its lowest finish since April 11, 1997. It’s as if the decade’s dot-com surge, collapse and subsequent recovery never occurred.
The Dow is just over 100 points from 7,000. Both indexes have lost about half their value since hitting record highs in October 2007.
In an unexpectedly assertive joint statement after two weeks of bank stock declines, the Treasury, the Federal Reserve and federal bank regulatory agencies announced that the government might demand a direct ownership stake in major banks that do not have enough capital to weather a deeper economic downturn. The government will begin conducting a test of the banks’ financial health this week.
Administration officials emphasized that nationalizing any of the major banks was their least favorite solution, but they acknowledged that some banks may be both too big to fail and too fragile to endure another round of shocks without substantial government help.

(Emphasis mine.) In other words, just the right size to be money hemorrhaging dead weight for years to come. I don’t agree with the nationalizing the banks thing, okay (the government just isn’t that competent okay?) but even if I did, why make them something the government is even more responsible for if doing so wont’ bring them back to solvency? What is to be gained by exercising federal control over them besides changing who the crooks are? Why should an agency directing us into a hole of runaway inflation be made responsible for bank security? And it’s really looking increasingly likely that soon the government will exercise voting stakes as shareholders. I say thee Doom.

the US is to give Israel 900 million dollars for Gaza reconstruction

Clinton said during her Asia trip this month that she would attend an international donors conference in Egypt on March 2 to discuss reconstruction in Gaza.
She provided no other details, but a U.S. official in the United States said Monday that the Obama administration’s donation will likely top $900 million in humanitarian and rebuilding aid to the Palestinian Authority to help Gaza recover from Israel’s offensive against Hamas last month.
The official, who spoke on condition of anonymity because the donation had not received final approval, said the exact amount was still to be determined.
The official added that the aid would not go to Hamas. U.S. officials have no formal contacts with the Islamic militant group Hamas, which runs a separate Palestinian administration in the Gaza Strip.

So we’re still pretending that we’re not slavishly loyal to Israel…yet we’re donating 900 million dollars to them? (900 million dollars we don’t have. 900 million that could be spent on ‘humanitarian aid’ that might just be a little more actually humanitarian than rewarding Israel for being prats.)

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~ by Auntie Ranty on February 24, 2009.

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