Trillions down and still bailing

[Tyr]

Is there actually a bottom to the bailout bucket? The next "hit" will be to Pensions. Falling markets and a sour economy have opened a gap of more than $200 billion in the pension plans of S&P 500 companies, including Ford and GM. Will taxpayers get stuck with the bill?

Despite choppy, listless trading, stocks managed to finish at their session high with a gain of nearly 1%. The session's advance helped contribute to a 12% gain for the week. Stocks still shed 7.5% for November
The Fed's own balance sheet has exploded from roughly $900 billion worth of debt in August to around $2 trillion as of last week. Knowledgeable sources expect that to reach $3 trillion by the end of the year.



That means that it will have grown from approximately 6% of gross domestic product to more than 20% in the space of four months. (For perspective, Japan's balance sheet grew from roughly 9% of GDP to 29% over the 10-year period from 1994 to 2004, as it pursued "quantitative easing," which basically involves the central bank making more cash available to banks to ease lending.)

 

[JLM]

I think there's still a long way yet, we COULD go down, but I don't think we'll go that far (like in the days when a man might knock on your door asking for an hours yard work in exchange for a bowl of soup) 90% of the population has it very good today. Next time you are in the lineup at the grocery store just observe the boxes of chips, cookies, cans of pop, dips, condiments, sauces, ice cream, stuff from the deli at $10 a kg. No, we are nowhere close yet.

 

[normbc9]

To quote Bernanke this morning he states we, "are no where near what this nation was in 1932 and hopefully we will never approach that point." I sure hope he is right but I think he is either trying to talk this economy into getting going and trying to avoid a depression. We are in a bad recession and have been since last year. Both Bernanke and Peterson are not impressing me any. If you analyze the $700 billion bailout bill drafted and passed by Congrees most of it has not been complied with. Peterson is adlibbing a lot and now it is showing. We were told this morning the total now is about $7.7 trillion and rising. If you note Bush is trying to stay out of the lime light.

 

[JLM]

This sickening part of it is that the companies that are getting bailed in a lot of cases are the ones who are paying bonuses to C.E.O.s for incompetence, while the wage slave makes up the difference.

 

[normbc9]

I did note that the big 3 exec's were back in front of Congress today. Cghanged group. They all drove some fancy Hybrid of their's out and Ford even announced they are selling their corporate aircraft. All were hat in hand this time too. A remarkable change in attitude as well. I think if one of the folks at the Committee table dropped trou there may even be some fanny kissing take place. The name of the game is "Come Home with the Bacon." They are all trying hard to accomplish that objective.

 

[Tyr]

This sickening part of it is that the companies that are getting bailed in a lot of cases are the ones who are paying bonuses to C.E.O.s for incompetence, while the wage slave makes up the difference.

JLM;

We are talking about the hrly worker at GM/Ford, etc. who make ~$50/hr to put screws into bumpers.... right?

 

[scratch]

The `Big Three 3` thing is sad.

It is based on unacceptable wage demands and benefits and that is the paramount reason for their future demise.

Just an observation.

rgs
scth

 

[JLM]

JLM;

We are talking about the hrly worker at GM/Ford, etc. who make ~$50/hr to put screws into bumpers.... right?

Now we are getting into the realm of the Unions, which I could expound on but I want to check and make sure I haven't reached my quota of enemies for one day first.

 

[DurkaDurka]

Now we are getting into the realm of the Unions, which I could expound on but I want to check and make sure I haven't reached my quota of enemies for one day first.

haha, some members here start foaming at the mouth if you say anything even slightly negative about the unions of this country.

 

[JLM]

haha, some members here start foaming at the mouth if you say anything even slightly negative about the unions of this country.

I guess the old saying "the truth hurts" wouldn't apply here, eh?

 

[Tyr]

haha, some members here start foaming at the mouth if you say anything even slightly negative about the unions of this country.

Unions were a viable and necessary force in the work environment...... in the 30's. They have long ago (the 50's) become redundant and counter productive to any economic model. They have this tendancy to enable the lazy and discourage an organizations "best" employees.

That's why their membership has dropped below 20% of the workforce (which is still 10% too much)