The Onion asks, Should The Government Stop Dumping Money Into A Giant Hole?
In The Know: Should The Government Stop Dumping Money Into A Giant Hole?
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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November 13th, 2008 at 8:48 pm
General Motors, Ford, Chrysler have been in “serious shit” since the 1970’s. The unions have ingratiated and protected their members to create enormous costs over the last 40 years to keeping the companies from being competitive. It’s all about employee costs past and present.
The Bush Administration, today, finally made their best announcement in the last 8 years. “Do not give the Automobile companies any money – they have a fundamental problem – employee costs – that will (my words) suck the funds dry”
Bush’s only other worthy statement was declaring victory when we originally entered Iraq – why we have been there since then will haunt that man who goes in his closet every day to hide.
Bankruptcy will force the Auto Giants into Court where a Judge can alter the contracts with the unions.
The Unions will appeal – a quick run to the Supreme Court – where the unions will bleed – this process is a must. After the Supreme Court – then consider giving the Auto Giants money.
November 13th, 2008 at 10:35 pm
Wow, really felt like I was listening to CNBC there for a minute.
November 14th, 2008 at 12:27 am
I can’t sleep and I made money today providing my option sale tips out on the ask tomorrow. Not worried about losing the whole option trade barring some catastrophe overnight either.
Would have figured it should have been exactly opposite. Looked like world was coming to a halt again this morning and I slept like a baby last night. What gives?
November 14th, 2008 at 10:47 am
barry- did you hear the latest bad news?
http://www.youtube.com/watch?v=bNmcf4Y3lGM
November 14th, 2008 at 12:49 pm
yeah I posted that last week
http://www.ritholtz.com/blog/2008/11/foreclosing-hitler/