Markets
Overnight Mixed. Mortgage rate likely to continue upward trend on Fannie, Freddie debt sell-offs. Markets ready for Lehman $360 billion swap unwind.
EU Strong-Arming US to Reshape Capitalism?
President Bush, under concerns of ceding leadership of global financial leadership to the EU, agreed to hosting a global summit to have substantive talks on reshaping global financial systems. Reports indicate that French President Sarkozy was applying significant pressure to President Bush to host such a meeting. Meanwhile, British Prime Minister Gordon Brown (a former British Chancellor of the Exchequer) continues to exert aggressive leadership in the crisis, to escalating popularity and approval.
Deficit Growing, Some Say “Let it Ride.”
The government continues to issue incredible lines of credit and checks to bailout numerous front in the global financial crisis. But, is anyone watching the bank account for (excessive) overdrafts. I guess the first hint was the Time Square debt clock running out of digits. However, politicians seem to think the deficit is not a problem to be concerned with now…more irresponsible thinking?
Rating Agencies Turn in the “Who Done It” Crisis Blame Game
How to Do a Merger with No Money-GM and Chrysler
A GM and Chrysler merger seems a recipe to combine two smaller problems to create one grand meltdown. Here are some of the colossal challenges (costs) to the deal:
- GM is rapidly running out of cash
- GM is already borrowing to cut (cash to cover buy-outs and severances)
- Potentially hundreds of poorly performing overlapping brands to consolidate or cut
- Merger would bring tens of thousands of more workers to cut and plants to close (more borrowing)
Can it get done? Should it get done? This sounds like more fuel in the fire of banking, credit, and government bailout fire.
(photo credit: mikemariano)
About Bill Rice