Image via Wikipedia An interesting opinion piece in the Wall Street Journal, penned by Harvard Law School professor Mark J. Roe, argues that putting GM into Chapter 11 bankruptcy may not be as scary as GM management might want you to think: General Motors Corp. is back in Washington, this time asking for $12 billion to add to the $18 billion loan the government approved last year. The possibility of bankruptcy for GM is very real -- the company posted a loss of $30 billion in fiscal … [Read more...]
Obama "Big Bang," Auto Industry, First Time Home Buyer, China Stimulus Package
November 10, 2008 By Leave a Comment
Obama Gearing Up "Big Bang" Reform Plan? The Obama team is analyzing analogies of FDR and attempting to avoid warnings of Carter-style open 100 days. This is certainly on the minds of an Obama economic advisory board that is in full motion on Obama's opening economic moves. "We can't afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, healthcare, education and tax relief for middle-class families," said Mr Obama. "We also need a … [Read more...]
Vote, Consumer Credit Crunch, Auto Sales Sink, Consumers Stop Spending
November 4, 2008 By Leave a Comment
Stop Reading and Go Vote! If you haven't already voted yet: take one last peek at what your vote will mean to your mortgage market, shut the lid on your laptop, head to the polls, do your civic duty, and then get your free coffee! Consumer Credit Crunch Banks are going to turn us into a savings economy after all. Tightening would have been a lot more valuable done over time rather than an overnight choke hold. However, a good short-term belt tightening never hurt anyone in the long-run. It … [Read more...]
Saturday Reading: G7, GM and Chrysler, Paulson-Trust Me
October 11, 2008 By Leave a Comment
(Bloomberg) G-7 agrees to take "all necessary steps" and will back all "systemically important financial institutions." However, they don't trust each other enough to guarantee interbank lending: The G-7 officials shied away from endorsing a U.K. proposal to guarantee lending between banks either by turning central banks into clearing houses for the loans or having governments back them. Paulson confirms his domestic priorities: Paulson signaled his top priority, having secured $700 billion … [Read more...]
