Important News - Nov. 14
By Daniel at 14 November, 2009, 2:22 pm
I Got Suckered By Cash For Clunkers
If you see a slate-blue Hyundai redlining at 55mph down the right lane of I-270, feel free to lean out the window and yell, “Thanks, Steve, for being a patriot!” At first I was thrilled when the government gave me cash to buy a new car. Then I realized I got suckered.
“SACRAMENTO — With high unemployment continuing to eat at California’s tax revenues, and risky budget gimmicks failing to materialize, the state’s deficit next year could hit a staggering $25 billion.
If worst-case scenarios hold true, several insiders who track the state’s financial picture tell the Mercury News, the deficit through June 2011 would be billions higher than previous estimates.
Gov. Arnold Schwarzenegger’s best-case estimate earlier this week was half that sum, at $12.4 billion. Assembly Republican leader Sam Blakeslee of San Luis Obispo floated a number as high as $20 billion during water “negotiations.
“The Pension Benefit Guaranty Corp. said Friday that its deficit had almost doubled to $22 billion in fiscal 2009 and that its exposure to future losses from weak companies had more than tripled”
“SAN FRANCISCO (MarketWatch) — Naples, Fla.-based Orion Bank, which had $2.7 billion in assets as of last month, was closed by regulators Friday — one of a trio of failures that will cost the federal deposit insurance fund just over $1 billion.”
“Many economists use California’s exports as a gauge of the state’s rebound potential. According to September’s numbers, California still has a long way to go.
The state’s merchandise exports, at $10.35 billion in September, were up 3.2% from August but still down 16.3% from the same month last year, according to an analysis of Commerce Department data released Friday.”
“(AXcess News) New York - Film studio Metro-Goldwyn-Mayer has confirmed that it is looking for a buyer. The producer of such films as the “Pink Panther” and “James Bond” 007 series is seeking a buyer after getting an extension on its debt from creditors.
MGM has until January 31st to may a payment on $4 billion of debt before creditors step in and take over the famed film studio and its movie inventories.”
“At the end of September, commercial real estate sales for the year were down 84 percent compared with the previous 12-month period, according to San Francisco-based LoopNet, an online marketplace for commercial real estate listings.”
Most banks are holding foreclosed houses forever, so as not to sell them at a loss and be forced to take writedowns.
Other banks, it seems, are selling houses they don’t even own…
The forecasted number is lower than the peaks of 2006 and 2007 but slightly higher than the $239 billion spent during the holidays in 2005. We’re skeptical about the proposition that Americans will spend slightly more this year than they did in 2005.
THE rise in unemployment that has occurred in the current recession has been hardest on young workers, while having a smaller effect on older workers than previous downturns. Women have been more likely than men to hold on to their jobs.
When your currency is weak, people will buy goods from your country especially if their currencies are stronger than yours. This is because this will permit them to ship a larger amount of goods at a lower price that before. Exporters in the country should have a time of their life during this period where the U.S dollar is at an all time low.
That’s $45B out of the banksters pockets at a time when the large (bad guy) banks cannot afford it. Of course the ruling let’s them “account” for it later….surprise.
Do you remember the “Bank Stress Test” that declared all those banks were “well capitalized” few months back? That stress test assumed a maximum 10% unemployment rate…the latest release is 10.2%! (although we all know it’s closer to 20%).
Word on the street is Tim Geithner is livid at Shelia Bair of the FDIC for being so mean to his brethren.
Look for a “too big to fail” bank to fall some Friday night in the near future. Sure looks like fun in December!
Coming off its highs of 2009, the Dow is heading for its first down day of November, which is pretty much a non-event and arguably overdue. But there’s plenty more down days ahead for the Dow, and big ones, according to Charles Ortel, managing partner of Newport Value Partners.
When this current “hope-based” rally ends, Ortel believes the Dow will fall into the 5000-6000 range, based on the followings
What is driving these highs? It certainly isn’t the economy.
- saxplayer00o1
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