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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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Economic Democracy Demands One World Balance March 29, 2009

Posted by aetiusromulous in Commentary, news, politics.
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ar-logo1Economic Democracies have  been living exponentially. It’s a big word, and it’s a big concept.

What it boils down to is this; that nobody alive in any culture of “progress” today knows anything other than bigger. Alternatively, if you like, all participants in democratic free markets have the shared expectation that they will have more tomorrow than they did today. In fact, we can go further and say that anything other than more, bigger, or better represents a failure of our governance that we all battle with equal fear, and vigor.

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Jim Cramer : Why Is Everybody Pissed Now? March 28, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Where Have the Righteous Been For 30 Years?

It’s a fact – nobody was bitching about the “Masters of the Universe” while they were driving America’s asset values shy high.

It is a tad rich that now, when the system everybody helped build  – and enjoyed exponentially – has collapsed under its own bubble thin weight, the knives re out for a few good men who made it all so, and for so long.

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Main Site Link: ScreamBucket.com


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Roubini and Taleb: This Just The Beginning? March 26, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Fundamentals Still Unaddressed

While individual nations try and save themselves, the real problem is the international system that created the mess. This will require global solutions not just in finance, but across the socioeconomic spectrum.

Currently, the effort has been directed at putting us back where we were before the “Black Swan” hit, a false premise to begin with as our last lives were built on unsustainable bubbles. Anybody who thinks the value of their home is going to ever return to where it was before is…nutz.

Main Site Link: ScreamBucket.com



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UK Treasury Sale Fail: Nobody To Buy The Debt March 25, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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Obama Stimulus Plan Crashes Into Reality

The only way to put money into the system – QE, “Quantitative Easing” – is to sell debt for cash. The UK appears to be the only large industrial nation willing to support that route, however it has failed today to realize on the action as it’s treasury auction failed to attract interest.

The Obama plan depends on the worlds sovereign funds and investors to buy it’s treasuries, and this is the first stark sign that it may not go as planned.

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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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EU Strengthens Opposition to Obama Plan March 25, 2009

Posted by aetiusromulous in Economics, news, politics, Video, YouTube.
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“Road to Hell”

The EU, backed by most other major holders of US debt, are getting pretty pissed about rescuing America at their expense.

The result could be a failure to coordinate world wide stimulus spending, which would collapse the American dollar, and cause nations holding trillions in American debt to both dump the USD, and move to a more internationally stable financial regime.

Let loose the dollars of war?

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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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Financial Collapse Ignores “Talking Heads” March 23, 2009

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“For Effective Incantation Knowledge is Neither Necessary nor Assumed”

“On Sunday ( October 27, 1929) there were sermons suggesting that a certain measure of divine retribution had been visited on the Republic and that it had not been entirely unmerited. People  had lost sight of spiritual values in their single minded pursuit of riches. Now they had their lesson.   

 “Almost everyone believed that the heavenly knuckle rapping was over and that speculation could again resume in earnest. The papers were full of prospects for next week’s market.

 “…In a concerted advertising campaign in Mondays papers, stock market firms urged the wisdom of picking up these bargains promptly. “We believe” said one house, ” that the investor who purchases securities at this time with the discrimination that is always a condition of prudent investing, may do so with utmost confidence”.

The Great Crash,1929 – John Kenneth Galbraith

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