When The American Motor Companies go into chapter 11 restructuring, trickling down to hundreds of thousands of jobs lost either directly or indirectly, and then snowballing worldwide, on top of the wasted 800 Billion dollar "bailout" that is having absolutely no effect on the current financial meltdown, will a panic arise? Is it time to start stock pilling Canned goods? What do you think? Are you ready?
No one is buying cars in this economic meltdown, do we just keep throwing money at the auto makers to keep them afloat? When does the bleeding stop?
Update: January, 2009
GM Faltering, asking for more Government Help-
General Motors is seeking more assistance from Washington, this time in the form of a tax break. The automaker may have to pay up to $7 billion in income taxes, stemming from stipulations of a $13.4 billion loan from the federal government. At the root of the issue is the company's plan to mete out its remaining stock to debt holders, the United Auto Workers union, and the federal government, in effect reducing its debt to $33.5 billion from $62 billion. In the past, the government has limited this type of transaction; however, doing so this time around impede "the government's effort to keep GM afloat," the
WSJ says.
GM lobbied Congress to add a provision to the
new $819 billion stimulus bill that would wipe out its tax liability, but the bill passed through the House Wednesday without the provision.
Together, the Big Three employ 239,000 workers in the United States. Counting other businesses that depend on the automakers, economists estimate that 2.5 million jobs would be lost if all three went out of business.
Sharpest decline in economy in 26 years. The US GNP declined 3.8% in just the last few months of 2008
http://money.cnn.com/2009/01/30/news/economy/gdp/index.htm
The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Hong Kong-based Tyche, told CNBC on Thursday.
“We expect a depression in the United States. We expect a depression, very possibly, also in Europe,” Hennecke said on “Worldwide Exchange.”
Hennecke, who previously worked as an investment adviser at Hong Kong’s Bridgewater Ltd. and is a frequent guest on CNBC and Bloomberg Television, explained:
The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.
“We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply.”
When the government can no longer pass the United States’ “immense debt” on to taxpayers, it will turn to the holders of U.S. dollars,
leading to the eventual downfall of the currency, Hennecke said.
“Definitely, it (the dollar) is not a safe place to be invested in, as real inflation is closer to 10 or 11 percent than the actual inflation numbers given by the U.S. government,” Hennecke said on “Worldwide Exchange”.
For those in the States- Do you think the new stimulus bill will help you in the near future? think again...Most are long term programs and/or tax breaks that will not come into play for years.
http://www.newsweek.com/id/182762/page/1
Your tax dollars hard at work (2009 Trillion dollar Stimulus Bill)
1. The package commits $4.5 billion to a new electrical grid, which (says the White House) will help finance 3,000 miles of transmission lines and 40 million "smart meters."
2. "launches the most ambitious school modernization program on record,"
3. "computerizes every American's health record in five years"
4. "undertakes the largest weatherization"—insulation—"program in history."
5. $50 million for the National Endowment for the Arts
6. $20 million for "fish passage barriers" (a provision to pay for the removal of barriers in rivers and streams so that fish could migrate freely)
7. $1.7 million for pig odor research in Iowa;
8. $2 million 'for the promotion of astronomy' in Hawaii;
9. $6.6 million for termite research in New Orleans;
10.$2.1 million for the Center for Grape Genetics in New York
Also Includes 14 earmarks requested by lawmakers for projects sought by PMA Group, a lobbying company at the center of a federal corruption investigation.
The Congressional Budget Office estimates that in fiscal 2009 (through this September) about 21 percent of the new spending and tax cuts would flow to the economy. For 2010, the estimate is an additional 44 percent. The total of 65 percent means that, by the CBO's estimate, about a third of the $819 billion package would be spent after fiscal 2010.
devil:
what a total ''BELL END'' 
