Ford Jellymoulds Posted September 17, 2008 Share Posted September 17, 2008 (edited) Global Markets Are Rattled By Growing Financial Crisis http://www.cnbc.com/id/26755041 Financial markets continued to be pounded by worries that the turmoil sweeping Wall Street would continue to spread around the globe. The $85 billion US government rescue of giant insurer AIG failed to calm the markets as the uncertain fate of other financial institutions continued to unsettle investors. Indeed, shares of the two remaining Wall Street firms, Morgan Stanley and Goldman Sachs plummeted on worries that they may be the next to fall But others worried that the rescue of AIG brings short-term relief but may lead to other problems down the road. "What the U.S. government is doing is basically delaying the recovery of the economy really by keeping AIG alive and by going back to the printing press to issue more U.S. dollars, which long term should be negative to the U.S. dollar," said Ronald Chan, chief investment offer for Asian equities with Fortis Investments in Hong Kong. How will this affect Ford in nobody wants to lend money and if the Feds only way out is to print more money the recession will last longer hit harder than the 1930's great depression, and If the US Government & Fed were to go bankrupt who would bail them out, China? Edited September 17, 2008 by Ford Jellymoulds Quote Link to comment Share on other sites More sharing options...
snooter Posted September 17, 2008 Share Posted September 17, 2008 the AK 47 will bail out the gubment..i dont exect a bailout for any auto company..if they fail they are gone...they just dont matter much anymore..sad but reality.....hell walmart can just sell chicom cars...people will buy..no biggie Quote Link to comment Share on other sites More sharing options...
chucky2 Posted September 17, 2008 Share Posted September 17, 2008 Who will bail the US Gov. out? Why, us of course, the taxpayer. Don't worry though: The Big 3 Exec's and Board of Directors....they'll still get to keep all their $Millions, after making all the bad decisions they were paid not to make. Got to love it..... Chuck Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 17, 2008 Share Posted September 17, 2008 Who will bail the US Gov. out? Why, us of course, the taxpayer. Don't worry though: The Big 3 Exec's and Board of Directors....they'll still get to keep all their $Millions, after making all the bad decisions they were paid not to make. Got to love it..... Chuck your thoughts on AIG?............ Quote Link to comment Share on other sites More sharing options...
Edstock Posted September 17, 2008 Share Posted September 17, 2008 your thoughts on AIG?............ Dean, you obviously missed the service bulletin on WebMonkey: That's the Chucky2 brain you're trying to have rational discourse with. Unfortunately, while a great improvement over the Chucky1, which had trouble perceiving daylight, the Chucky2 mind-set has a fixation for trollage. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 17, 2008 Share Posted September 17, 2008 Dean, you obviously missed the service bulletin on WebMonkey: That's the Chucky2 brain you're trying to have rational discourse with. Unfortunately, while a great improvement over the Chucky1, which had trouble perceiving daylight, the Chucky2 mind-set has a fixation for trollage. guy should go for president...he can solve EVERYONES problems.......expert at all, master of nothing......but he does have a deposit on vaporware.... Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted September 17, 2008 Author Share Posted September 17, 2008 Who will bail the US Gov. out? Why, us of course, the taxpayer. Don't worry though: The Big 3 Exec's and Board of Directors....they'll still get to keep all their $Millions, after making all the bad decisions they were paid not to make. Got to love it..... Chuck Don't you owe the banks a lot money already, where will you find the extra cash from? US Public DEBT $9,637,461,236,643.44 The National Debt has continued to increase an average of $1.77 billion per day since September 28, 2007! Concerned? http://www.brillig.com/debt_clock/ Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted September 17, 2008 Author Share Posted September 17, 2008 guy should go for president...he can solve EVERYONES problems.......expert at all, master of nothing......but he does have a deposit on vaporware.... l can see that Chucky (mlhm5) will have a bit of a problem when tries to force VW Passat diesels on everyone. Quote Link to comment Share on other sites More sharing options...
chucky2 Posted September 17, 2008 Share Posted September 17, 2008 your thoughts on AIG?............ Gov. had no choice but to bail it out...but, that wasn't the OP's question. What the Fed. should do however is seize all assests of the CEO, BoD, etc. at AIG. They need to make it so painful on the rediculously compensated top Leadership at these large failing Corp.'s the rest of these Corp.'s top Leadership start getting their sh1t together. To let the top brass at these companies get these huge packages (which they get because "That's what the other ((overcompensated)) top brass at other companies get"), do a bad job of running the company, let us take the hit, and they still are laughing all the way to the bank....it's not right. If the Fed. is going to spend our money inappropriately (which this is, the Fed. should not be doing this), then they should absolutely be making an example of the Leadership that caused it. On a side note, it's sorta messed up you all make fun of me (based on the diesel thread), since you haven't made one good point that sticks against diesel. Group mentality at its best.....guess that's a good thing though, it's all that's keeping the Big 3 up at this point... Chuck Quote Link to comment Share on other sites More sharing options...
fmccap Posted September 17, 2008 Share Posted September 17, 2008 Don't you owe the banks a lot money already, where will you find the extra cash from? US Public DEBT $9,637,461,236,643.44 The National Debt has continued to increase an average of $1.77 billion per day since September 28, 2007! Concerned? http://www.brillig.com/debt_clock/ US economy: Rudderless and reeling from direct hits The open question is: what do these new liabilities do to the Treasury’s own credit standing? For now, this question is submerged. The traditional practice of fleeing to the US dollar and US Treasury bonds during periods of financial stress and uncertainty has boosted the dollar and kept interest rates low. But sooner or later the large US budget deficit, worsened by recession and bailouts, and the large trade deficit, which requires constant recycling of dollars held by foreigners into US financial and real assets, will result in renewed effort on the part of foreigners to lighten their dollar holdings. When this time arrives, US interest rates will have to rise in order for the government to be able to continue to rely on foreigners to recycle the dollars acquired in trade to finance the US government’s annual budget deficit. The current financial problems have pushed into the background the larger problems of the US budget and trade deficits. Goods and services for American markets that US corporations outsource offshore return as imports, which widen the US trade deficit. Moving production offshore reduces US GDP and employment and increases foreign GDP and employment. Moving production offshore reduces the export capacity of the US economy while raising the import bill. Therefore, how is the trade deficit to be closed? One way is through the dollar’s loss in exchange value, which would reduce American consumers’ real incomes and leave them too poor to purchase the offshored goods and services. How is the budget deficit to be closed when jobs are disappearing and GDP (tax base) is being relocated offshore? Not by higher taxes. Higher taxes are problematic for a recessionary economy in which unemployment, properly measured, is already in double digits (www.shadowstats.com). Some people have speculated that the budget deficit will be closed by dismantling entitlement programs such as Medicare. However, considering the cost of medical insurance, this would be catastrophic for tens of millions of older Americans. The more likely avenue will be a raid on private pensions. The Clinton administration’s appointee, Alicia Munnell, as assistant secretary of the Treasury for Economic Policy, argued that private pensions should face a capital levy to make up for the fact that their accumulation was tax free. I expect that the federal government, faced with its own bankruptcy, will resurrect this argument, as it will be preferable to printing money like a banana republic or Weimar Germany. In the 21st century, the US economy has been kept going by debt expansion, not by real income growth. Economists have hyped US productivity growth, but there is no sign that increased productivity has raised family incomes, an indication that there is a problem with the productivity statistics. With consumers overloaded with debt and the value of their most important asset -- housing -- falling, the American consumer will not be leading a recovery. A country that had intelligent leaders would recognize its dire straits, stop its gratuitous wars, and slash its massive military budget, which exceeds that of the rest of the world combined. But a country whose foreign policy goal is world hegemony will continue on the path to destruction until the rest of the world ceases to finance its existence. Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day-to-day operations and must rely on foreigners to purchase its bonds. The government pays the interest to foreigners by selling more bonds, and when the bonds come due, the government redeems the bonds by selling new bonds. The day the foreigners do not buy is the day the American people and their government are brought to reality. This is not the financial position of a superpower. Will what happened to Lehman Brothers today be America’s fate tomorrow? Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 17, 2008 Share Posted September 17, 2008 (edited) Gov. had no choice but to bail it out...but, that wasn't the OP's question. What the Fed. should do however is seize all assests of the CEO, BoD, etc. at AIG. They need to make it so painful on the rediculously compensated top Leadership at these large failing Corp.'s the rest of these Corp.'s top Leadership start getting their sh1t together. To let the top brass at these companies get these huge packages (which they get because "That's what the other ((overcompensated)) top brass at other companies get"), do a bad job of running the company, let us take the hit, and they still are laughing all the way to the bank....it's not right. If the Fed. is going to spend our money inappropriately (which this is, the Fed. should not be doing this), then they should absolutely be making an example of the Leadership that caused it. On a side note, it's sorta messed up you all make fun of me (based on the diesel thread), since you haven't made one good point that sticks against diesel. Group mentality at its best.....guess that's a good thing though, it's all that's keeping the Big 3 up at this point... Chuck Chuck...you need to read...nutshell to nut case,,,it HAS been reveiwed, it HAS been dismissed and there ARE alternatives being developed...more VIABLE alternatives...is that simple enough for you...but by all means keep ranting.....you obviously know a HELL of a lot more than EVERY manufacturer sans VW.... Edited September 17, 2008 by Deanh Quote Link to comment Share on other sites More sharing options...
atomaro Posted September 17, 2008 Share Posted September 17, 2008 I saw this last night and thought it was pretty funny...it does require powerpoint or something that will open a powerpoint document. http://boombustblog.com/images/stories/wha...256,1,Slide%201 Quote Link to comment Share on other sites More sharing options...
Ron W. Posted September 17, 2008 Share Posted September 17, 2008 (edited) Don't you owe the banks a lot money already, where will you find the extra cash from? US Public DEBT $9,637,461,236,643.44 The National Debt has continued to increase an average of $1.77 billion per day since September 28, 2007! Concerned? http://www.brillig.com/debt_clock/ I don't owe on anything other than my house and of course the mandatory monthly stuff, electric etc. But you can bet your ass I'm concerned, will my concern change anything, will my vote change anything. I sincerely doubt it. The feds need to get off their ass and quit printing and spending money that the public will end up paying for. Dumb 's Edited September 17, 2008 by Ron W. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted September 17, 2008 Share Posted September 17, 2008 Automotive News is reporting that the increasinglly intense credit crunch is affecting the Dealers flooring service. I suspect you will see far less vehicles sitting on dealer lots and far less of any vehicle in stock. I notice that Blackwell Ford by me started that practice a few months ago whereby he has far less in stock in general and is very disciplined on what he orders and how many vehicles he has in stock. Even Bill Brown Ford, a super high volume dealer doing mostly A and Z plans plus mucho fleet sales, has maybe 50% on lots what it used to have even a couple years ago. Lou LaRiche Chevrolet by me doesn't have much in stock anymore either. Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 17, 2008 Share Posted September 17, 2008 I don't owe on anything other than my house and of course the mandatory monthly stuff, electric etc. But you can bet your ass I'm concerned, will my concern change anything, will my vote change anything. I sincerely doubt it. The feds need to get off their ass and quit printing and spending money that the public will end up paying for. Dumb 's next up.......icing on the cake....Iran?......... Quote Link to comment Share on other sites More sharing options...
chucky2 Posted September 17, 2008 Share Posted September 17, 2008 Chuck...you need to read...nutshell to nut case,,,it HAS been reveiwed, it HAS been dismissed and there ARE alternatives being developed...more VIABLE alternatives...is that simple enough for you...but by all means keep ranting.....you obviously know a HELL of a lot more than EVERY manufacturer sans VW.... Lets keep this thread on topic...I already responded to your delusions in the diesel thread. Chuck Quote Link to comment Share on other sites More sharing options...
Deanh Posted September 17, 2008 Share Posted September 17, 2008 Lets keep this thread on topic...I already responded to your delusions in the diesel thread. Chuck and did not listen there either....but your expertise speaks for itself...get obver the fact there is a REASON only two manufacturers have pursued your wishes....two out of how many chuck....results/ facts speak for themselves....ever consider you actually may be wrong...didn't think so....no delusion here....just like the other50 or so manufacturers.....reality....whos delusional? Quote Link to comment Share on other sites More sharing options...
chucky2 Posted September 17, 2008 Share Posted September 17, 2008 and did not listen there either....but your expertise speaks for itself...get obver the fact there is a REASON only two manufacturers have pursued your wishes....two out of how many chuck....results/ facts speak for themselves....ever consider you actually may be wrong...didn't think so....no delusion here....just like the other50 or so manufacturers.....reality....whos delusional? Is your sole function here to contribute cr@p to threads? Is there anything you've contributed to this thread??? There's already a diesel thread, go try and deflect your meaningless points over there.... Chuck Quote Link to comment Share on other sites More sharing options...
FoMoCobra Posted September 17, 2008 Share Posted September 17, 2008 How will this affect Ford in nobody wants to lend money and if the Feds only way out is to print more money the recession will last longer hit harder than the 1930's great depression, and If the US Government & Fed were to go bankrupt who would bail them out, China? This financial crisis will bring on the demise of GM in my opinion. Ford is in much better shape at this point. It's stock was even upgraded yesterday. I think Ford is requesting loans to help GM out more than itself. It somehow feels pitty.. i guess. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 17, 2008 Share Posted September 17, 2008 Ford doesn't want GM to go Ch. 11 because that will put them over a barrel. As far as AIG goes, the FRB now owns a substantial majority of AIG and will sell their assets to the highest bidders to recoup the loan. This is, on a gigantic scale, what the USDA has been doing for years with farmers. Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted September 17, 2008 Share Posted September 17, 2008 International investors will bail us out...well, more like buy american's debt and push out the locals. Some of you guys will have to retire in 3rd world foreign countries because your dollars will be worth more there, but not enough to sustain you here. It's day of reckoning and many will be paying for many years to come. Only the most financially strong (meaning no debt and SMART investments) will survive. Long term, interest rates will climb allowing for foreigners to come and invest in our country, while making it hard for locals to invest on their own. One positive though will be that outside goods will cost more to buy and Ameicans will probably be able to buy domestic goods at a lower price. Some of you all voted for this...Just gotta deal with it... Quote Link to comment Share on other sites More sharing options...
fxcomet Posted September 18, 2008 Share Posted September 18, 2008 Looks like it's time to get out my "Chicken Little Umbrella" again. Jeez, Y'all go hide under yer bed a few days until you feel all better. Quote Link to comment Share on other sites More sharing options...
battyr Posted September 18, 2008 Share Posted September 18, 2008 Don't you owe the banks a lot money already, where will you find the extra cash from? US Public DEBT $9,637,461,236,643.44 The National Debt has continued to increase an average of $1.77 billion per day since September 28, 2007! Concerned? http://www.brillig.com/debt_clock/ For the past quarter, the deficit has been about double this. Quote Link to comment Share on other sites More sharing options...
SVT_MAN Posted September 18, 2008 Share Posted September 18, 2008 (edited) Ford doesn't want GM to go Ch. 11 because that will put them over a barrel. As far as AIG goes, the FRB now owns a substantial majority of AIG and will sell their assets to the highest bidders to recoup the loan. This is, on a gigantic scale, what the USDA has been doing for years with farmers. Bingo, bango, bongo ... If GM goes Chapter 11 bankruptcy, it will put a great deal of strain on some suppliers that are common to Ford and GM as well. No orders from GM means no money in the pockets of those suppliers. Not a good situation all around. Ironically, Toyota had the foresight to know that Ford and GM need to stay in business for them to continue to operate cheaply here in America as well ... Don't get me wrong - really dislike Toyota vehicles - but their management is sharp. The thing that has pissed me off about the Bush administration more than any other thing is that Bush made himself out to be a fiscal conservative who would work on our debt situation, and he's done exactly the opposite the entire time he's been in office. I guess this was bound to happen though. People want everything. They want want want want want. They want lots of services and products but they don't want to pay for them ... once politicians figured out that keeping taxes low and services high kept people happy, things were a go .... If you're going to have a fiscal policy, either lower taxes and cut spending, or raise taxes and raise spending, but dont raise spending and cut taxes. That's kind of like, you know, a business increasing its costs but purposely lowering its revenues! Dumb. No other word for it. Edited September 18, 2008 by SVT_MAN Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted September 18, 2008 Share Posted September 18, 2008 (edited) There are calls for a RTC type corporation. It seems likely, given the current situation--the government now finds itself conservator of more assets, if I may swing a wild guess, than it did during the S&L bailout. The important thing, it would seem to me, would be to attempt to find a reasonable balance between moral hazard and market stability. Frankly, the investors and managers that created this mess need to pay prices. People need to be barred from this industry in the same way that people can be barred from working at FDIC insured institutions. Furthermore, asset sales need to proceed quickly--rather than in an attempt to maximize creditor returns. And in the end, there should probably be an independent regulatory agency that assesses investor risk in the same way that the FDIC does, without providing loss insurance. Likely outcomes: Hedge funds are dead. At least in America. Foreign companies selling hedge funds here will also, likely, have to agree to investor disclosure standards that would curl the toes of yesterday's Swiss bank manager. ABSes are not dead (they're actually useful--when properly administered). However, expect that a new governmental agency will be chartered that will assign prominently disclosed risk ratings to every ABS portfolio, AND investment banks will not be permitted to underwrite a substantial amount of bad paper. Will this make capital hard to come by? Not necessarily. The problem with bad paper is that it's, well, bad. Shouldn't be issued in the first place. Moody's and S&P are going to be obsoleted in many areas by this new governmental agency. Acting as gatekeepers to the legitimate market, government bureaucrats will gain access to financial data that Moody's & S&P never thought possible. When all the dust settles--as with RTC and the S&L crisis, the actual damage done will not be worst case scenario. Oh, and one more thing, you will see hundreds examples of disgusting and embarrassing human conduct. Phonied up outrage, real greed and grasping for power, hypocrisy, conceit, the vanity of the self-absorbed and the preening of the self-righteous. The next several months will be a cavalcade of the very worst characteristics that humans can display put forth by those who have no honest sense of shame, with the sole redeeming aspect being the relative lack of bloodshed. Edited September 18, 2008 by RichardJensen Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.