United States Heading towards a Depression?

That's what happens when you put a welfare recipient who's never worked a day in his life in charge of the money. He's been living pretty high on the hog ever since he got in. No pun on the pork/hog thing BTW... It is ironic that one of the wasteful spending measures or "port" was on actual Pork.

 

OMG how did you find that?

 

Obama has hit a new low according to rasmussen among likely voters. Rasmussen is an accurate poll not that crap gallup. He is now 50% approval 49% disapproval. He is now steadily losing voters who had voted for him last november.

http://www.rasmussenreports.com/pub...ministration/daily_presidential_tracking_poll


Support for "obamacare" scam is also declining rapidly.


http://www.rasmussenreports.com/pub...overage_is_top_health_care_concern_for_voters

http://www.dickmorris.com/blog/2009/07/17/urgent-action-needed-on-health-care/

 

So you quit and left. I guess that answers that question.

 

It is always so exciting when a sissy talks tough.
Have you ever seen blood or iron? When did you take arms to defend your country? Didn't you say that you were suffering from missing balls syndrome and that was the reason you could not join despite all your big talk and fighting?
And what do you do when your country economy suffers? Put your tail between your legs and leave your country and because you are such lover of freedom , you decide to move to Singapore where the government controls almost every aspect of life.

 

The problems at CIT financial have been temporarily resolved as bond holders (lenders) have agreed to convert loans into equity for the time being, meaning CIT does not need to pay these lenders off for the amts converted to equity.

While the extremist right wing "financial wizards " like to pontificate about what should or shouldn't be done by the government...and basically suggest that no govt money should have been spent on anyone...the plight of CIT financial gives an eyeball into the issues of the recession and how its impact is so widespread.

One thing, evidently CIT invested in residential mortgage backed securities over the past few years...and took an enormous hit as those values plummeted, just a all investors did.

CIT basically is a financial arm to small businesses including small to medium sized manufacturers (often to retailers) and to retailers themselves.

To see how their business operates take a look at this link...http://online.wsj.com/article/SB124779123756354885.html.

When news of their imminent collapse hit the markets, it instantly cut business for some of their clients as the above article points out.

Similarly, problems with CIT financial are negatively impacting other businesses in this chain...as this article from Birmingham, Alabama points out...http://www.bizjournals.com/birmingham/stories/2009/07/20/daily6.html

As businesses like this fail, it is as if the world's financial statements take an enormous hit. Asset values drop. The above example is one more small example of the Incredible world wide asset loss from the crash of the real estate markets, the crash of investments from the residential backed securities, etc.

The nut of all this is an incredible loss in ability to spend. Hence we have things like US total new car auto sales dropping from about 16 million/year (that's all auto manufacturers-domestic and foreign) to less than 10 million/year. That seems to have caused a reduction of about $170 billion in total sales (6 million cars at an average new car sales price of about $28,000/car)

Lose about $170 billion in sales...and that might reduce payrolls by about $85 billion to $120 billion (by my accounting)

It all crescends into a massive destructive negative cycle.

I find CIT interesting because it directly impacts hundreds of thousands of small businesses.

Some of the extremist Right Wing "philosophers" here have yelled loudly about small businesses....and how they are so like "us" as opposed to big businesses. Seriously, folks, what do you think about this part of the crisis.

Should there have been help from the govt to help a company that aids the underpinning of small businesses or not?

Frankly, I'm glad the lenders made a deal. I'm a big fan of small businesses. I co-run a small bunch of them and I know too many small businesses. I love to see them prosper and service their customers. The best of them become huge. Microsoft started as a bunch of college age programmers. Marriott Corporation started as a breakfast/lunch/dinner mid to low priced restaurant.

As it is, I'm sure the lenders, who are huge financial institutions, made the deal they made, because they had no recourse. If CIT went bankrupt, they were going to lose up to billions. Converting debt to equity is a desperate last gasp effort. CIT has negligible equity value now. The lenders had no choice. They were going to lose big time if the company went bankrupt.

I get tired of listening to the naive purveyers of the minority partisan extremist right. I don't think they have a whit of common sense when it comes to how the economy works and how to keep it humming.

Frankly, when the recession of the early 90's hit it was a result of a terrible financial institution/commercial real estate bubble. The huge growth of the remainder of the 90's occurred from an enormous surge in technology led by telecom.

When the recession of the early 2000's hit it was a result of a bubble in the telecom world primarily and secondly from the first dot.com implosion.

The slow recovery that arose from that came about because of residential real estate. Now residential real estate burst....and it is far bigger and worse than the preceeding recessions.

Frankly I hope technology whirs up its engines and makes some huge advances in the next couple of years. Lord knows we need it.

 

It's all public record, but our media is not interested in sharing this. Only Drudge report so far.

 

Here are some of those "extremists" who worry earlpearl so much:

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, 'the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.' -- Thomas Jefferson

Good intentions will always be pleaded for every assumption of authority. It is hardly too strong to say that the Constitution was made to guard the people against the dangers of good intentions. There are men in all ages who mean to govern well, but they mean to govern. They promise to be good masters, but they mean to be masters. -- Daniel Webster

Property must be secured or liberty cannot exist. -- John Adams

When the people find they can vote themselves money, that will herald the end of the republic. -- Benjamin Franklin​

Can you imagine an entire nation founded by extremists such as these!

 

tx, Will. Now that you both asked, what are you doing for American business....and have left the country....keep reading, philosophizing, and lecturing to the rest of us how to act....from your perch outside of the nation.

btw, you'll excuse me as I visit the chicken pen and see how the rest of the chickens are doing.

 

Nice coming from an overweight kid that lives in his parents basement. You've had the luxury of living under the shield of protecting the US has provided you. You should be thanking people like Will and others here for keeping you safe.

 

Hence the reason most democracies fail.

 

LOL.

Mia, you should stop, you are killing with laughter. Every one here knows that you and little willy are members of missing balls chicken squad. How can little willy protect anyone when according to his own posts, he need his wife and her gun to keep him safe from the bogeyman?

 

The only posts talking about chickens and trailer parks are your own. The reality is you are a prepubescent runt living in mom's basement with nothing better to do than further your pedo agenda and annoy people in the DMOZ and P/R forums. Do us all a favor and just leave. You've never once contributed anything useful to any discussion here. But I'll let your own posts speak for themselves.

 

The truth hurts.

You and your friends are just a bunch of loud mouth chickens. You were, are and will be always be, just a bunch of cowards who despite all your big talk will never dare to pick up a gun or take a stand and fight.

 

Kids... Proving once again that the moderation here sucks ass! Any other forum would have kicked this guys and the others like him long ago.

 

Which forum kicks out people for telling the truth? Is it that little shi*ty forum that your friend little willy runs?

 

This one used to. Of course as many times as you've been banned lately, its pretty evident some of that sentiment remains. You'd be a good candidate for a permanent ban of course.

 

In the mean time, you can run around and give anonymous red rep as usual or go to other sites and pretend you are another member of this forum. It seems that is all you are good for.

 

I highly recommend that anyone who can escape the United States do so, while it is still safe and possible to do so.

When employment crosses 10%, people are going to get nervous. When it crosses 25%, people are going to become violent. And they won't be violent towards the government that made them poor. They will be violent towards the people whom the media tell them to blame for their joblessness -- the "rich". "Rich" to the liberal means anyone who isn't on the public dole.

People who wait to escape the U.S. will find it much harder to do so. The Obama administration is already drafting laws to prevent Americans from taking their money abroad. As more of the 'working class' escapes America, more laws will be put into place to prevent them from leaving. The state cannot afford to let it's tax base run away. Soon you will see that border fence completed, but the barbs won't be on the side you expected.

 

This is one more great example why the extreme right wing is to be ignored by anybody with a modicum of sense...and who is repelled by the idea of utter extremism.

Will: Who are you to tell the rest of us what is good for America, how the nation should be operated and how are economic system should work.

You didn't like the election results so you got up and left. You quit. You don't have the nation's best interests at heart.

America was built by people who worked within it and at it. It wasn't built by quitters. Often it was built by people who left other nations that oppressed its people, had poor economies and few opportunities. It has been a wonderful world wide example of absorbing people, not without difficulties. Every new group of immigrants have suferred from the attacks of those who came before them. Yet not going through change easily it trudges on and accepts those who enter its shores.

Frankly, your leaving is another example of why the extremist position of the far right holds no weight, and is primarily responsible for shrinking its political party, the Republican Party. You don't have the nation's best interests at heart...you have your personal best interests at heart, couldn't give a r@ts @ss about the rest of the nation....and when you don't get what you want you quit.

Reminds me of a little baby.

At times over the years I found myself agreeing with some of your thoughts...but at this point you have shown your true colors...and they should be painted selfish and quitter.