The Nation’s View of TARP Management

“The more details emerge, the clearer it becomes that Washington’s handling of the Wall Street bail out is not merely incompetent. It is borderline criminal.”

Naomi Klein

Read the full article here.

The Nation is self-described as “the flagship of the left.” So take all of this with a grain of salt.

Today’s Economic Headlines

Jobless claim hits 4 million. Highest since July 1992
Crude prices fall below $50 a barrel, first time since May of 2005.
Dow down is down 200 points in early trading, still below the 8,000 mark.
GMAC applies to become a bank.
Japan’s Nikkei drop more than 6% in one day
U.S. dollar is rising
Gold rises on to $750 an ounce. A gloomy economy is pushing the prices higher.

Senate Votes No on Auto Bail out

The AP reports

Note to the CEO of GM. Not good to fly to Washington D.C. on your private 36 million dollar jet and beg for $25 billion tax payer bailout! It is estimated the flight round trip to D.C. cost $20,000. Are you kidding me! This is outrageous.

Watch the news report here.
Side note: GM has 8 luxury jets in their fleet!!

Paul Farrell of MarketWatch – Great Depression 2 by 2011?

This is the first time I have heard a main stream media type (Paul Farrell of MarketWatch) predict the next Great Depression by 2011.

Will we have a prolonged and deep recession or will we see soup lines in the coming years? Is he right or wrong?

Government Money Hole AKA Government Bail Out

The Onion has done it again! This is so funny! You must watch!

Is this the end of the dollar Standard?

According to Ron Paul we are witnessing the end of the dollar as the standard. But what will replace it?

A world currency? Gold?

What do you think?

Good Video Debate on The GM Bail Out

Sen. Carl Levin (D-MI) Pro Bail out:
We bailed out Chrysler in the 80’s and the Airlines in 2001, so we should do it for the Big Three in 2008. He argues the Big Three are not making the same mistakes they did in the 70’s. They are innovating and looking to make fuel efficient cars. The tax hit would be too great.

Sen. Richard Shelby (R-AL) Against the Bail out:
The Big Three failed to innovate. We need the company to restructure, get better leadership and realistic contracts with it employees. “They are going to have to change their whole model.” Let free markets work.

What do you think?

President Jimmy Carter’s Speech on Energy

Does this sound familiar? It should…

The Republicans are Right NO Bail Out

Update:

For all of you who argued with me about the big three missing market trends in relation to SUV vs. Hybrid, hear straight from the horse’s mouth. They acknowledged I was right.

“We also biased our product mix toward pick-up trucks and SUVs. And, we made commitments to compensation plans that have proven to be unsustainable in today’s globally competitive industry. We have paid dearly for these decisions, learned from them and are working hard to correct them by restructuring our U.S. business to be viable for the long term.”

Again, yes there was a demand for SUVs but it was a downward trend. They did not see the upward trend of green cars…

I just watched Henry Paulson fumble his way through a Congressional hearing regarding the Wall Street bail out, and as a tax payer I was not pleased. However, Paulson and the current Republican Congress are against giving the Detroit based Auto industry $25 billion in bail out money. I agree.

In early 2000 the leadership of the “Big Three” missed the trend from gas guzzling SUVs and trucks to more full efficient cars. Maybe the Auto industry leadership thought the “Rock and Roll” bubble economy would never end. Perhaps the industry was simply too “drunk” on their boom time success and they took their eyes of the shifting and evolving markets. Meanwhile, their competitors, Toyota and Honda soared into the top spots, riding the hybrid wave. Markets called out and the Japanese Auto industry responded in spades. When I drive around Los Angeles it seems like every other car is a Toyota Prius.

If the Big Three do not get a bail out, they will be forced to restructure their business. This is not a bad thing. This is the free markets doing its job. Out of the restructure will come a leaner and meaner Auto industry. A government bailout will only reinforce failed leadership in Detroit. When American companies are forced to refocus and do more with less, amazing innovation takes place. America needs innovation and not bailouts.

If Prince Williams County Can Practice Free Markets…

Why can’t our government? Killing free markets is not the way to end this economic recession. In actuality it makes matters much worse. Bail out after bail out, will not save this market. Only the free markets will.

Seems Prince Williams County, a suburb of Washington D.C. knows this and has taken matters into their own hands. They are having a fire sale on real estate. Homes in the area are down 41% from last year.

Homes are now priced at what they are really worth. And guess what the strangest thing is happening people are buying homes up left and right. Even with lending standards of 20% down, real proof of income and a good credit score are once again the norm. Ready the Washington Post story here.

Yes, folks it’s the return of the free market.

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