Basically if u had an account with UBS(the swiss bank).
US goverment now is going into ur offshore swiss accounts and put you in jail for not paying half of what you earned OUTSIDE of America to the US goverment! So they can give it to AIG and other wall street firms+Airlines+the random shitty enviourment companies+General Motors+Chrysler. Or basically any company who is retarded enough to go bankrupt.
As some of you know I dont visit this site anymore and I have a blog some other place and this is a copy of my last post there (If you want to leave comments about why am I still posting here and some other stuff like that please PM me)
So Government is now into the business of insuring cars! As you may know GM is basically done. And US government spent around 14B to get to the point that I and many engineers said around 4month ago. GM CEO had to leave and as a matter of fact the whole company has to go bust and get bought by small sectors. And you can be sure that in 3 month there wont be any GM. Unless obv Opera or Limbaugh come on and say something about it and congress in fear of not-getting re-elected pass some new laws. Which will only postpone the inevitable.
I actually read their plan few month ago about how they are going get out of the mess they are in and its very interesting how people running biggest car companies on the planet has absolutely no fucking idea where and what the problems are.
Also Chrysler is hoping to get bought by Fiat. To just remind you how low things have gotten. read This article from around 4 years ago. where Fiat was forcing GM to buy it back then!!!
Another interesting sad point is that government is trying to practically flush a big chunk of cash down the toilet by propping up New Energy/"Green" companies. As someone who is in the middle of the mess and into the research of these things I can tell you that there is no need and future for this type of stuff at the current stage we are in. There wont be any clean energy and there wont be anything getting invented by any of these guys and they all know that. The are just too dumb to realize the whole picture.
The only way we can move on from fossil fuel is by oil running out and prices going up. By pumping money into these non-efficient "zombie" companies who are only alive because of lobbying and politics, you are avoiding resources to efficient people who are driven by demands and needs of the market. People who can make stuff that are actually useful.
As some of you know I dont visit this site anymore and I have a blog some other place and this is a copy of my last post there: (as a matter of fact after posting blogs here I realize why the admins here are so short minded and insted of dealing with problems just ban people. Most of you guys who are new here and post are too dumb that the only way to deal with you is to ban you )
March 14 (Bloomberg) -- The U.S. sought to ease Chinese Premier Wen Jiabao’s concern about the security of his country’s investments in U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.
“There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs said yesterday at a briefing in Washington.
Gibbs was responding to comments from Wen that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” Wen said at a press briefing in Beijing.
President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of U.S. debt sales to fund a $787 billion stimulus package and a deficit this year forecast to reach $1.5 trillion. Investors abroad own almost half of all U.S. debt outstanding, and China last year overtook Japan as the biggest foreign buyer.
Wen’s comments contributed to a decline in Treasuries yesterday. Yields on benchmark 10-year notes rose as high as 2.96 percent, from 2.85 percent a day earlier, and closed at 2.89 percent.
White House National Economic Council Director Lawrence Summers, asked yesterday about Wen’s remarks, said overseas “confidence” in Treasuries would be hurt without the administration’s steps to end the economy’s decline.
China held $696 billion in U.S. Treasury debt as of Dec. 31, more than Japan’s holdings of $578 billion. Foreign holdings of U.S. Treasury debt at the end of last year totaled $3.1 trillion.
The Treasury also offered a response that sought to reassure investors.
“The U.S. Treasury market remains the deepest and most liquid market in the world,” Treasury spokeswoman Heather Wong said in an e-mailed statement. “President Obama is committed to taking the steps necessary to restore growth and put this country on the path of fiscal sustainability, including cutting the long-term deficit in half over the next four years.”
During the first five months of fiscal 2009, which began Oct. 1, the U.S. budget deficit swelled to a record $764.5 billion for the period, compared with a $265 billion shortfall during the same period a year earlier. The shortfall this year already has exceeded the record $459 billion gap for all of 2008.
The administration is “tackling many long-ignored problems, ensuring that the U.S. will be in a stronger position than ever,” Wong said. “We are facing whatever challenges come up and will continue to do so.”
Treasuries have handed investors a loss of 2.7 percent in yuan terms this year, according to Merrill Lynch & Co.’s U.S. Treasury Master index. Chinese holdings of the securities surged 46 percent last year, according to Treasury Department data.
“Of course we are concerned about the safety of our assets,” Wen said after an annual meeting of the legislature. “To be honest, I am a little bit worried.”
China should seek to “fend off risks” as it diversifies its $1.95 trillion in foreign-exchange reserves, Wen said. Yu Yongding, a former adviser to the central bank, said in an interview on Feb. 10 that the nation should seek guarantees that its Treasury holdings won’t be eroded by “reckless policies.”
Treasuries have benefited from demand as a haven in the past two years as financial companies reported $1.2 trillion in credit losses. China boosted holdings of government debt as it lost more than $5 billion from investing $10.5 billion of its reserves in New York-based Blackstone Group LP, Morgan Stanley and TPG Inc. since mid-2007.
“China won’t sell the U.S. debt now as that will only drive down Treasury prices, hurting not only the U.S. but also the value of its own investments,” said Shen Jianguang, a Hong Kong-based economist at China International Capital Corp., an investment bank partly owned by Morgan Stanley.
U.S. Secretary of State Hillary Clinton urged China, while visiting officials in Beijing on Feb. 22, to continue buying U.S. debt, which she called a “safe investment.”
I was reading some article before in a magazine about Obama reassuring the market and it had a line saying “you know thing are really bad when president is talking stock market.” After reading that article first thing comes to mind is that things are really bad when Chinese are worried about their money in US.
I think this is not only very interesting it’s also very scary. If foreign buyers of US debts get concerned about their money it means that US won’t be able to borrow in order to finance their government. With concerns growing about the future of US economy maybe we will see a "run on the FEDs" by its debtors. US having around 10 trillion, which is one year of GDP, in debts and around half of that to foreigners will have hard and maybe even impossible time to pay back the lenders. Which means their only option will be to "rev up their printings machines" and that will cause inflation or maybe even hyperinflation in US. The American government having big fixed costs such world’s biggest military and no money will be a very dangerous situation not only for US but for the whole world.
We saw Lehman and BearStern going broke. AIG is down the toilet. And most importantly GM which was the true flagship of US economy is going broke. So what makes people think that US government who is doing the same exact thing as those companies is immune? We used to have a saying that anyone takes a bribe other than the ones who are truly faithful to God, because they have really high prices. I believe in US and western economy faithfully, but their price is just getting too high.
I think the America will come out of this (hopefully) but a generation or two has to pay and work through their nose for the mess we are creating now. And the reason is that many American voters are just too dumb to realize you cannot let a loser not to lose. Let’s face it half the nation voted for McCain and Palin!
As some of you know I dont visit this site anymore and I have a blog some other place and this is a copy of my last post there:
Obama's economy plan is failing hard on soo many levels. They are basically violating every possible rule set out by free market.
After the previous administration failed so hard by saving special interest and bailing out loosing companies on wall street now Obama, who is screaming change on top of his lungs, not only doing the same crap job as before but only more of it. Not letting the capitalism and free market doing its job its about the worse thing you can do. Saving out loosing companies. Creating zombies by injecting money to failed banks and companies. Buying assets that no one wants. And the latest trying to regulate CEO's pays! When are they going to learn? The system will only work if you let the bad ones loose. If you keep bailing out and helping loosers and those who make bad decisions you are not only discouraging productive people you are doing massive damage to the system.
It might sound tough. But people who made bad decisions HAVE TO live on the streets and get kicked out. People who are 50 year of age and screwing bolts at GM plants at $50/hour HAVE TO loose their job. CEO's who manage billions of dollars HAVE TO get 10+mil/year pay to stay motivated. Just because some lazy ass idiot didn't go to school and get an education and get fooled by some mortgage broker is on the street doesn't mean that EVERYONE in the country has to cut back on their lives. If people who make bad decisions don't pay who will be motivated to make good decisions? What happened to moral hazard?
Why Obama is doing EXACTLY the same as Bush? Postponing the problem by creating zombie companies wont solve the problem it will only make things worse. Helping poors and bad decision makers has never solved anything it will only make things worse.
@wisdom. The way he is going I doubt he will be able to adjust in later times. Running huge deficits. Bailing out companies and ganging public against them. Trying to save countless of useless unproductive jobs. The economy is trying to get rid of trash and goverment doesn't let it. What makes people think all these will be easier to do in the future?
As some of you know I dont visit this site anymore and I have a blog some other place and this is a copy of my last post there:
Obama and his dumb economic plan is going to be a huge disaster for economy of not only us but the whole world.
The first reason we got into this situation is because of people spending and LIVING on borrowed money. The way bank system works is that basically for every dollar you put into the bank goes out and loans $5. And everyone in US go out and buy on these borrowed money and this drives the price up.
Even though this system might work for a couple of years but as prices go up and people can not afford anymore and cant get loan everything goes down the toilet. And we are there now. The prices want to go down now since no one can afford anything anymore. Banks dont loan out cause they know you cant afford anything.
And what Obama is going to do is to basically print more money. And cut interest rate! So basically he is trying to encourage people to go borrow and spend! He is encouraging the same exact behaviour that got us into this mess!
And if all that is not enough for you on the remote chance that his plan fails on job creation side for the average people. Most of us going to have HUGE inflationary prices on TOP of the debt we can not afford to pay back!
I always said before the election that when Obama gets into office its going to be just another clown like the rest. But his take on the economy (which is the most important issue now) is BEYOND stupid.
I am no veteran on the issue but I read ALOT about this recently and there are thousands who agree with me. The arguments on the other side is just soooo beyond reality stupid and Fayth based that has zero credibility.
Dont get me wrong I really respect the man and I love what he is doing on every other issue but his stand on economy is going to be the cause of his massive failure.
All I can say is that everyone should just sit and pray that me and thousand of others who thinks the same as me are wrong. But also note how all the markets go down as soon as these packages and plans for spending pass.