Posted tagged ‘bailouts’

Another Bailout for GMAC? Seriously?

October 28, 2009
From Clusterstock:
Tim Geithner’s getting ready to shovel more taxpayer money down the rat hole, this time to GMAC.

GMAC, in case you’re in understandable denial, has been bailed out twice already.

And now Tim Geithner wants to shovel another $2.8 billion in.
What is the US taxpayer getting in exchange for all these GMAC bailouts?

Preferred stock.

Why are we getting preferred stock, which is neither a claim on the future upside of the company’s equity, nor a senior debt security that will be completely repaid in the event that taxpayers finally get mad as hell and won’t take it anymore?

Because Tim Geithner is worried that if he makes the folks who voluntarily lent money to GMAC — the bondholders — lose so much as a cent, the entire US economy will collapse.

Unbelievable. Sooner or later something has to give. And when it does, it won’t be pretty.

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Debtor’s Revolt!

September 9, 2009

I am free, no matter what rules surround me.  If I find them tolerable, I tolerate them; if I find them too obnoxious, I break them.  I am free because I know that I alone am morally responsible for everything I do. 

~Robert A. Heinlein, The Moon is a Harsh Mistress

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Human history begins with man’s act of disobedience which is at the very same time the beginning of his freedom and development of his reason. 

~Erich Fromm, Psychoanalysis and Religion

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As long as the world shall last there will be wrongs, and if no man objected and no man rebelled, those wrongs would last forever. 

~Clarence Darrow

The Fed Under Fire

September 8, 2009

Over 18,000 Attend Protest Event in Cinncinnati

September 5, 2009

cincinnatirally090409-600x450Issues, not politics, is their cup of Tea
An estimated 18,000 attend event at Voice of America Park in West Cherster Twp

Some were clad in colonial-era costumes. Some hoisted signs or waved American flags. But the thousands who filled the lawn in front of the National Voice of America Museum of Broadcasting on Saturday afternoon, Sept. 5, were consistent in their passionate plea for change.

Whether it was health care reform, a country at war, education, government bailouts, the national debt or Congressional term limits, it was the issues — not politicians — that took center stage at the rally hosted by the Cincinnati Tea Party.

The crowd continued to grow throughout the afternoon, and an estimated 18,000 people had come together at the event’s peak, according to Butler County Sheriff Richard K. Jones.

Jones said the crowd Saturday nearly doubled that of the Tea Party’s event he witnessed in Columbus, which drew an estimated 10,000 people to the state’s capital in April.

Saturday’s rally drew people from all over the region, many to view the day’s highly anticipated town hall-style forum featuring U.S. Reps. Jean Schmidt and Michael Turner, Ohio gubernatorial candidate John Kasich and House Minority Leader John Boehner, R-West Chester Twp.

“It was college football’s opening day, and we were looking at some serious competition,” said Chris Littleton, director of the Tea Party’s Community Groups, which include West Chester and Liberty townships, Monroe and Fairfield. “These people came out to talk about their personal liberties being taken away instead. That’s crazy. It’s bizarre.

“People are engaged and (the movement) is going to continue to gather steam and momentum,” Littleton said. “People are engaged and saying, ‘I’m going to make my voice heard, I’m going to be politically active.’”

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Obama Plans to Slash the Federal Deficit in Half

February 22, 2009

Hey America, watch me pull a rabbit out of my hat!

obama_hat_trick1

Tuesday night, February 24th, President Obama will address a joint session of Congress and is expected to lay out his plan to cut the federal deficit in half by the end of his first term.

This ought to be good. I’ll be parked in front of C-Span with my popcorn because this speech is guaranteed to be good for some laughs. I really want to know how the man who spent nearly a trillion dollars we don’t have earlier in the week thinks he can cut the deficit in half along with “plans to broaden health care coverage to eventually insure everyone. Moving the country toward greener energy sources. Expanding education opportunities. Overhauling financial industry regulation“.

I want to know how a man who a few short months ago said deficits don’t matter can now say “We can’t generate sustained growth without getting our deficits under control,” with a straight face.

It will all be just a lot of hot air, I’m sure since the plan rests “on the assumption that the economy recovers from the current slump” and does not consider “additional spending on economic stimulus or bailouts of the financial or other sectors“.

Where will the money come from? “Winding down the war” in Iraq, eliminating Bush’s tax cuts on families earning more than $250,000 a year (raising their tax rate from 35% to 39.6%), increasing the capital gains tax by 5%, closing corporate tax “loopholes” and taxing the earnings of hedge fund managers as normal income rather than as capital gains. 

Not mentioned, of course, is that while “winding down” in Iraq, Obama is “winding up” in Afghanistan and Pakistan. Obama authorized 17,500 additional troops to Afghanistan just a few days ago and The Raw Story reported yesterday that Obama is expanding miliary operations in Pakistan.

There is also no mention of how businesses – especially small businesses – might be able to create jobs when suddenly faced with a much higher tax bill. Common sense says higher taxes will lead to more layoffs and more businesses closing down completely.

Obamanomics. It will make you laugh till you cry.