Archive for October 8th, 2009

Geithner demands you save more! and spend more!

Thursday, October 8th, 2009

Story

I’m really coming to the conclusion that Geithner is an idiot, not just a misguided globalist who wants the IMF to run the world.

While he and the Federal Reserve’s Bernanke are holding interest rates as close to zero as is possible, Geithner now says he wants Americans to save more.   Why would people save more money to earn 1% interest? or lock in for a longer term when most people expect inflation to come back at some point?

At the same time we are being told to save money, the government is urging us to buy stuff we can’t afford (new cars, houses, appliances) to stimulate the economy.   The government itself is spending money like a drunken Pelosi, and is considering a second stimulus package.

None of this makes any sense.

Posted in Politics, Timothy Geithner Watch | 1 Comment »

Bankruptcy Watch – Accuride

Thursday, October 8th, 2009

Accuride makes parts and accessories for commercial trucks. Due to the recession and environmental law changes, demand for new trucks is very low at the moment. The company is basically surrendering itself to the Private Equity firms and lenders to whom it owes money via chapter 11 bankruptcy..

Posted in Bankruptcy Watch, Financial Collapse | No Comments »

Who will tell you the truth?

Thursday, October 8th, 2009

One of the criticisms of the economic crisis in 2008 was the claim that the credit rating agencies were asleep at the switch, and didn’t warn investors in CMOs (Collateralized Mortgage Obligations – think Freddie Mac and Fannie Mae) that the mortgage portfolios were getting more and more risky.

The issue on the table is how do you find a balance that protects rating agencies so they aren’t intimidated by the threat of lawsuits for publishing negative information, but not protect them so thoroughly that they are immune from the consequences when they fail to report bad news.

Last month, a group called Audit Integrity, which is an industry research firm that focuses on risky or fraudulent business practices, published a list of “the 20 companies most likely to end up in bankruptcy”. Hertz was one of the 20, and is now suing Audit Integrity and encouraging the other 19 companies to do the same.

(One of the 20 has already been removed, but that was due to a data problem from the company that supplies the data that goes into their risk model)

Story

Posted in Uncategorized | No Comments »