the sky is falling!!!

A well known professor of physics and Nobel laureate once suggested that the economics recipients of the prize should not be allowed to sit with the other laureates when the prizes were passed out, because as far as he was concerned, economics was not a an authentic science.

 

Hmm..

Looks like the auto bailout is on the brink of getting approved...The thing that I still don't understand is, if Ford won't need the bailout, why can't the other 2??..

It sure is living up to the stigma. I kinda feel sorry for all the Illinois folks though; it happened with the previous IL governor, George Ryan, who is now serving time. It's almost like you guys can't get a reprieve. And if one is to choose between 2 governor candidates, one literally has to choose using the eenie meenie miny moe way; the lesser of the 2 evils. And now, with the President-elect having some of his aides from the Illinois/Chicago area, namely "Rahm-bo" Emanuel, who knows what's up ahead with the upcoming administration.

 

It is FORD that has enough capital to survive and doesnt need the bailout but the issue is if factories that supply the parts shut down, FORD will have to FOLD too eventually.

 

^^Already noticed & amended above..^^

...got tongue-tied with the 3 big auto makers...

 

Sorry then. I spoke too soon.

 

Hmmm..U.S. auto industry being nationalized??..

..is it me or do i get a feeling that with the new $15B bailout, the U.S. auto industry, with the new "car czar" tagging along, will soon be nationalized with government having control/regulations; "extraordinary power to restructure the failing industry"???...hmm

 

Mr. Obama is placing all his bets on massive spending.

“Obama's a poker player,” Prof. Navarro said. “Here we've got a new president coming in who is basically going to bet the entire administration on a fiscal stimulus hand that is at best two jacks.”

With a report from Marcus Gee

© The Globe and Mail

 

As per thread title

California running out of money
By Ben Arnoldy Ben Arnoldy Wed Dec 10, 3:00 am ET
Sacramento, Calif. – California lawmakers just got a Henry Paulson-like ultimatum from state officials: If they don't act, the state could be forced to suspend road, bridge, and other public-works projects as early as next week. Come March, California will be out of cash for even day-to-day operations.

A confluence of the national recession and years of legislative budget games is squeezing the Golden State as never before. Although it's not the largest budget gap the state has ever faced, this time it will be harder for California to get help from private lenders. Standard & Poor's now ranks it lower than any other state except Louisiana, which shares the same rating.

The question is: Will lawmakers finally make the tough budget decisions they've put off for so long?

"Because California does have a perennial budget crisis, it's very easy to fall into the 'boy who cried wolf' syndrome," says Dan Schnur, director of the Jesse M. Unruh Institute of Politics at the University of Southern California. "This time the sky is really falling."

 

u mean chartered accountants?

 

A good CA would say we need more CA's to audit their books

well, bailout leads to more bailouts. The GM bailout of 15B is just a tip of the iceberg. I believe the congress would give bailout to GM but looking for a reason, any plan so they can give the money to GM, even if the plan is drawn out by homer simpsons. So far, GM's plan is worst than what homer simipsons would come up with. Some experts think a real bailout to preserve the auto industry is closer to 125-150B. Right now, AIG is a blackhole sucking up most of the $700 billion bailout. Feedback so far is that TARP is not doing good job of tracking who and where the 700B is going to.

 

look like the 14-15B GM bailout didn't pass the senate. Asian market is tanking already. I heard they were ~99% in agreement, the deal breaker was UAW refusing to take a wage cut to match their japanese auto worker counterparts. Amazing, those UAW workers rather see their company goes bankrupt than having a steady job.

 

Hmm..do i hear $20 billion? do i hear $21 billion deficit??..let's have an auction..

just want to throw in my 3 sens, as a CA resident:
..not a poli-sci expert nor majored in poli-sci, but as i heard it through the Napa Valley grapevine, this whole "California is going bankrupt talk" is repeating itself. Power of compounding? State takes less money but at the same time govt. is still spending at a high level & they're doing the spending with money they don't have. And a great deal of the spending has to do with all the unions (there goes that word, again) that are in CA; esp. the teachers' union. The unions don't want to be cut, the teachers union doesn't want to be cut. Compound all of those contracts with all the borrowing by the state lawmakers (yes, made up of Dems), no wonder CA's deficit has kept on growing.
They think by taxing the people more, to make up for the deficit, it will solve it. But in effect, it'll slow the economy.

Here are a couple of links to read:
http://www.boncherry.com/blog/2008/12/01/state-of-california-going-bankrupt-by-feb-09/
http://whiskeyandgunpowder.com/is-california-going-bankrupt/

What can CA do right now? Well, unfortunately, imo, there's no magic pill to this problem. One thing they can do is, the govt. can stop the high spending. But will they? Now, even if all the lawmakers/the govt. up in Sac-town try to hide the problem, it's gotten so big they probably couldn't lie their way out of it. As an anology, it's almost like one is looking face to face with an elephant. How is one going to ignore the elephant??.
Maybe one way is to completely overturn the lawmakers from the Dems to a more conservative GOP lawmakers?

...aahh, the union, again, eh??..just as i mentioned about them not too long ago..And they'll probably come back, even if the companies go bankrupt..

Speaking of the so called "car czar", as part of the car bailout plan & who's supposed to control those auto car companies, should BWF hire a "badminton czar" to control/investigate all the supposed walk-outs, withdrawals, match-fixings etc.??.....Heck, maybe we can have a "BC czar" to solve all the arguments..oh wait, we already have kwun..

 

well... things happens... u know...