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Obama: General Motors and Chrysler – Gone in 60 Days March 30, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Obama, General Motors, and Chrysler each bought an extra sixty days before they must face the inevitable.

The inevitable is bankruptcy for all three.

Obama may not have caused the auto industry meltdown, and there is real argument whether the auto makers are to blame either, however who is to blame will be invisible to history, only the fact of catastrophic bankruptcy remaining on the record of each. All that remains for the moment is finding a suitable time for the wake.


The fact of the matter is that it is not auto industry inefficiency that needs fixing – if it were, model companies like Honda and Toyota would not be down 50% and falling. The economic environment that existed when automakers sold a historic 16 million units in North America is gone for good, Obama himself admitting a return to the age of easy credit is impossible now. With North American auto sales at nearly 8 million units and falling, and break even being 13+ million units, it defies common sense that GM and Chrysler will be able to craft a business plan that will see them overcome an economic death spiral, and outperform the Japanese by magnitudes at the same time.

Today, Obama did the scene set for the end, drawing a line in the sand legless and broken automakers have no way of crossing. General Motors and Chrysler – gone in 60 days.

Main Site Link: Screambucket.com


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Rick Wagoner, GM President, Fired by Obama March 30, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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GM President Laid Off

The Obama White House fired General Motors President (of the private aircraft fame) Rick Wagoner, one day before the next model bailout rolls off the line.

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Main Site Link: Screambucket.com


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AIG Fallout Begins : “Dear AIG – I Quit!” March 25, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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The Obvious and Inevitable Begins

What do people do who have the weight of the world on their shoulders, are not paid, are threatened with death by piano wire, taxed at 90%, have limits put on their income, and suffer endless bus tours of their private residences filled with people that hate them?

Why they quit and go to democratic nations with free markets of course. Duh.

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UK Lines Up With US in Approaching International Stimulus Battle March 25, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Old West vs New East?

What does Gordon Brown want in exchange for his compliance?

International regulation.

The times they are a changin’

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AIG : In Defence of Fallen Heroes March 24, 2009

Posted by aetiusromulous in news, politics, Video, YouTube.
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Americans Fiddle, While America Burns.

Here’s the thing.

The American financial system has been doing this sort of thing since its inception. There were a few collapses along its 125-year history, and once in a while regulation was imposed as a reaction to events. Once the crisis receded from memory, regulation was relaxed and off it all went again. De-regulation is the status quo, the natural state of the Wall Street mojo. Regulation free cowboy finance built America…for whatever that is worth.


While the big guns of Wall Street were shooting up the corral, the lifestyle of the average American rose in their wake. Financial shenanigans fuelled the great consumer society. Absolutely no homeowner in America was calling for anybodies head when the value of their own main asset was riding the wave along with them. These guys were heroes and it is with no small irony these “contracts” were signed back in those, good old days.

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AIG Debacle : Mistrust and Anger Derail Hope of Salvation March 22, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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America Fiddles While Rome Burns

Underneath the thin vernier of populism, banking system melts away.

Careful what you wish for….

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Auto Giants Sieze Cars From Dealers Lots March 19, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Credit Crisis Collapse

In an example of the crazy world we live in now, auto manufacturers are siezing the cars of their dealer network for non payment. This manouver is designed to clean up their balance sheets, and no doubt, looks brilliant to the bean counters.

No car stores. Great thinking.

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American Federal Reserve Unloads Everything At Continuing Meltdown March 18, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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 Historic Intervention

This better work, ’cause there is nothing left.

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AIG CEO Edward Liddy : An American Hero March 18, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Really ! He Is, Honestly

It may not be a WWII battle field, but the economic catastrophe that is AIG will certainly yield similar results.

Edward Liddy accepted the Generalship of the mess without any kind of pay or compensation, and after the bad guys had breached the walls. Patton he is not, but he deserves the same respect. And he deserves to be listened too.

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10 Issues That Are Crippling the Auto Industry March 18, 2009

Posted by aetiusromulous in Commentary, Economics, news, politics, Video, YouTube.
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A Handicappers Guide to Betting on Big Auto

 1) Market Meltdown

        Even the best of the best are hurting because there just isn’t the demand there was in the past. All automakers are hurting.

2) Market Demographics

        The Baby Boomers fueled the era of huge Auto, and they are very quickly moving out of the market for cars (Hearse demand may rise however)

3) Business Model

        Huge volumes of extremely expensive products demand massive credit for consumers to make purchases. Worse, the ancient “new model every year” plan has become unsustainable, causing as it does incredible investments in R&D and annual retooling of complex assembly plants.

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