Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Friday, December 05, 2008
Armageddon Prevention Bailouts- Big Bank Vs. Big Auto / Companies / Credit Crisis Bailouts
By: Andy_Sutton
In watching what could easily be considered a three-ring circus weren't the implications so dire, the latest push for access to bailout billions has commenced. GM, Ford, and Chrysler executives piled into the most fuel efficient models in their fleet to begin a second pilgrimage to Washington DC. The move to hybrids which was somewhat humorous was brought on after Big Car execs were chastised by members of Congress for the use of private jets and also for a lack of candor about past mistakes. At stake, at least according to the execs, is the future of the US auto industry. Read full article... Read full article...
Friday, December 05, 2008
Why GM is More Bailout Worthy Than Citigroup / Companies / Credit Crisis Bailouts
By: Money_Morning
Martin Hutchinson writes: Financial journalists, most of whom spend more time writing about derivatives than carburetors, have been scathing about the possibility of an auto industry bailout, even though they've happily accepted multiple bailouts for the financial sector.
Of course, the reality is that bailouts are likely to do more harm than good in the long run, regardless of what sector they are in. But given the choice, I would rather bail out General Motors Corp. ( GM ) than Citigroup Inc. ( C ), because the automaker has a better long-term future.
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Tuesday, December 02, 2008
Big 3 U.S. Auto's $25 Billion Bailout / Companies / Credit Crisis Bailouts
By: Mike_Stathis
An Offer the Big 3 Can't Refuse: $50 Million per Mile - Just as I was ready to pass out in my chair last night, I regained full consciousness after hearing a news headline. Can you guess what caught my attention? No, it wasn't the buyout of AIG's asset management business by our friends in Dubai . And no, it wasn't over Citigroup's purchase of a Spanish construction company using taxpayer funds. In fact, although these deals were recently announced, they didn't make the headline news. Instead, it was more on the rumor that the Big 3 auto execs plan to drive, possibly via car pool in a Chevy Volt to Washington today. Their purpose of course is to present a “more structured” bailout plan; in other words, a better rehearsed begging session. Read full article... Read full article...
Tuesday, December 02, 2008
The Neo-Alchemy of the Federal Reserve / Economics / Credit Crisis Bailouts
By: Dr_Ron_Paul
As the printing presses for the bailouts run at full speed, those in power are no longer even pretending that the new giveaways will fix our problems. Now that we are used to rewarding failure with taxpayer-funded bailouts, we are being told that this is "just a start," more funds will inevitably be needed for more industries, and that things would be much worse had we done nothing. Read full article... Read full article...
Monday, December 01, 2008
Bailouts Now Expanding to Consumers / Economics / Credit Crisis Bailouts
By: Peter_Schiff
Keeping track of the ever mutating bailout debate is becoming increasingly difficult. With the Federal money spigots now thrown wide open, and with no one of influence advising restraint, the only debate is where to direct the torrent. During the past week, the talk began with Detroit and Citigroup, but by Friday had shifted to a massive "stimulus package" to bail out consumers. The early buzz includes some very large figures. But first, a bit of a recap:Read full article... Read full article...
Thursday, November 27, 2008
Home Owner Credit and Mortage $800 Billion Stimulus Package / Housing-Market / Credit Crisis Bailouts
By: Money_Morning
Mike Caggeso writes: U.S. Federal Reserve and Treasury Department announced yesterday (Tuesday) $800 billion worth of stimulus measures to rev up three primary engines of the U.S. economy – homebuyers, consumers and small businesses. Read full article... Read full article...
Wednesday, November 26, 2008
How John Lee Would Clean Up the Financial Mess and Put $800 billion to Work (Part I) / Economics / Credit Crisis Bailouts
By: John_Lee
The Fed and US Treasury announced today a further plan to buy up to $800 billion of mortgage backed securities. This is in addition to the $700 billion financial bail-out package announced in September. In just past 3 months, over $1.5 trillion has been committed to help home owners and solve financial crisis.Read full article... Read full article...
Tuesday, November 25, 2008
Spreading Bailouts Damaging to Long-run Economic Health / Politics / Credit Crisis Bailouts
By: Dr_Ron_Paul
This week the bailout of the Big Three automakers was under heavy consideration in Congress's lame duck session. I have always opposed government bailouts of private organizations. Back in 1979 Congress had hearings about bailing out Chrysler and I was on record pointing out that these types of policies are foolish and very damaging to the long term economic health of our country. They still are.Read full article... Read full article...
Tuesday, November 25, 2008
Citigroup Bailout Raises Viability Questions For Entire Banking System / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
Still more details are emerging from the weekend bailout of Citigroup . And in what is no surprise in this corner, it appears Citigroup is not well capitalized and Faces Pressure to Slim Down .
The government rescue of Citigroup Inc. reversed the perilous slide of the company's stock, but pressure is mounting on its executives and directors to do even more to stabilize the financial giant.
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Monday, November 24, 2008
U.S. Financial System Bailout Mushrooms to $7.4 Trillion / Stock-Markets / Credit Crisis Bailouts
By: Richard_Shaw
This news leaves us simply speechless.
Nov. 24 (Bloomberg) — Fed Pledges Exceed $7.4 Trillion to Ease Frozen Company Credit — The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.
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Monday, November 24, 2008
Citigroup Bailout Agreement Reached / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
The Wall Street Journal is reporting U.S. Agrees to Citigroup Bailout .The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.
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Sunday, November 23, 2008
Citigroup Imminent Failure and Government Rescue Bailout / Companies / Credit Crisis Bailouts
By: Money_and_Markets
Citigroup, the nation's second largest banking conglomerate, is on the brink of failure.
Its stock price collapse is the canary in the coal mine, wiping out over nine-tenths of the company's market cap since its 2007 peak, decimating two-thirds of its value just last week alone.
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Friday, November 21, 2008
The Truth About Bailouts / Economics / Credit Crisis Bailouts
By: Peter_Schiff
As the Federal bailout bonanza prepares to spread beyond the mortgage and financial sectors to fill Detroit's depleted coffers, few economic or policy analysts have spared a thought for the destitution of the U.S. government itself. Put simply, our government doesn't have enough spare cash to bailout a lemonade stand let alone a bloated and failing industry that is losing tens of billions of dollars per month. Washington can only offer funds that it has borrowed from abroad or printed. Unfortunately, the nation is in the grips of a delusion that money derived from these sources has the power to heal. But history has clearly shown that borrowed or printed money only has the power to destroy.Read full article... Read full article...
Tuesday, November 18, 2008
U.S. Treasury the Final Bailout / Economics / Credit Crisis Bailouts
By: Money_and_Markets
Martin Weiss writes: We have come to a major crossroads in the history of our nation, a time when you must understand all the relevant events in far greater depth, and see the likely future with far greater clarity.
Indeed, I feel this need is so critical and urgent, I am providing you this morning with the most elaborate gala issue in the history of Money and Markets .
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Tuesday, November 18, 2008
Corporate America on the March for Billion Dollar Government Handouts / Stock-Markets / Credit Crisis Bailouts
By: Paul_J_Nolte
The billion-dollar march. As companies file into Washington to get in line for a government handout (cleverly disguised as a bailout!), the markets continue to mark down stocks in advance of the Christmas selling season. The TARP program, passed with the understanding that “toxic” bank debt would be purchased has been scuttled in favor of direct injection of capital into the banking system. Admittedly a better program, but the “on the fly” approach is making the market nervous that the powers that be do not have a mental grasp of the situation. A complicating factor is we are in the dead zone for both Congress and the President, making new policy creation tricky at best. Read full article... Read full article...
Monday, November 17, 2008
More Bailouts Coming, U.S. Automakers, Freddie Mac and Foreign Exporters / Companies / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: This week is shaping up to be another active one on the bailout-and-financing front.
First and foremost, Congress returns to work this week to consider a once-unthinkable proposal: Put up billions in taxpayer-backed loans so that Detroit's “Big Three” can be saved. Expect a fight, however, as the bailout debate finally moves past banks to focus on General Motors Corp. ( GM ) , Ford Motor Co. ( F ) , and Chrysler Corp .
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Sunday, November 16, 2008
Peeking Under the Troubled Assets Relief Program (TARP) / Stock-Markets / Credit Crisis Bailouts
By: HRA_Advisory
[The following comments went out to subscribers prior to the US Election and Hank Paulson's latest change of tack but our comments on where we expect things to turn first haven't changed. – Eds] - Its too soon to say de-leveraging and “de-Funding” is over, and all trading desks can do is respond to calls by marking up more red on screens while it continues. However, various measures to unlock credit do seem to be creating at least the potential for trading bottoms. Credit market risk measures such as the TED spread are starting to narrow. We don't expect them to return to normal for a long time but that is not required for a rally. Read full article... Read full article...
Saturday, November 15, 2008
Paulson's Blunders as Debt Securitization Market Remains Frozen / Interest-Rates / Credit Crisis Bailouts
By: Mike_Whitney
Henry Paulson's time at Treasury has been one pratfall after another. Even so, on Tuesday he managed to out-due himself. Paulson held a "surprise" press conference where he announced that the $700 billion Troubled Asset Relief Program (TARP) wouldn't be used to buy troubled assets after all. Instead, the money will used to bail out insurance giant AIG, provide extra capital for the banks to hoard, and now (this is new part) give money to "nonbank financial institutions, like insurers and specialty-finance companies" so they can lend to credit-worthy consumers. (Isn't that why we gave money to the banks?) Read full article... Read full article...
Tuesday, November 11, 2008
Glenn Hubbard Wannabe Fed Chairman Devises New Bailout Plan / Interest-Rates / Credit Crisis Bailouts
By: Brady_Willett
Although he didn't get the nomination to replace Greenspan, Columbia's Glenn Hubbard often comments on what he believes is the best path for policymakers to take. Yesterday Mr. Hubbard was at it again, offering a brief commentary on the Nightly Business Report:Read full article... Read full article...
Monday, November 10, 2008
Let the Bankrupt Banks Fail / Politics / Credit Crisis Bailouts
By: Ayn_Rand
Everywhere today politicians are blaring that they must save America's financial institutions, alleging catastrophic risk to the economy were any to fail. Paulson and the entire Bush administration, in a discernible panic, are now pouring $700 billion into the big banks, having already bailed out AIG, Fannie Mae, Freddie Mac, and Bear Stearns to the tune of $300 billion. Read full article... Read full article...