Today’ Age reports that the Trust will try to raise $280 million from the issue. Some of that will be used to pay off nearly $450 million in securities that mature in December. Hmm. Selling more debt to pay off old debt. There’s never a bad time for that if you don’t have cash.
August 27th, 2009 | Dan Denning | 6 comments | ContinuedAll Posts Tagged With: "government"
Rich Blamed for Financial Debacle of Last Few Years
Their governments all have in it for them…taxes on ‘the rich’ are rising. The Democrats are talking about financing the entire nation’s health care system on the backs of the super-rich.
August 26th, 2009 | Bill Bonner | 4 comments | Continued
The Codependent Relationship Between China and the United States
Each enabled each other’s excess. China added mightily to the world’s supply – far more than was actually needed. America, meanwhile, did heroic work on the demand side.
August 24th, 2009 | Bill Bonner | 7 comments | Continued
Cash for Clunkers Widely Thought to Help Revive Economy
But who listens to Bastiat or Hayek? Ten countries have taken up ‘Cash for Clunkers’ programs. In Britain, the government puts up 2000 pounds to grease the deal…with a total of 300 million earmarked for the program. In America, the ‘Cash for Clunkers’ program was extended last week…
August 17th, 2009 | Bill Bonner | 0 comments | Continued
Buying and Holding a Bad Strategy if Bank Earnings Remain Unpredictable
If we’re right, households have just begun reducing their debt loads. It will take years for the leverage in the system to be wound down. See Bill’s comments about that below. If you’re buying bank stocks you’re assuming credit and debt growth will resume once this recession is over. That’s a big assumption. And probably stupid.
August 12th, 2009 | Dan Denning | 4 comments | Continued
Central Bank Creates Excessive Amounts of Money to Expand Government Spending
But this is not about any of that, but about the way that the government has now “changed the way it accounts for natural disasters, such as Hurricane Katrina,” which ought to make you suspicious, especially as it was done for “eliminating much of the prior volatility in income calculations”, whatever in the hell that means.
August 11th, 2009 | Mogambo Guru | 0 comments | Continued
The Long Emergency
The reason behind this mass delusion is not hard to find: it’s based on wishing, especially the wish to retain all the comforts, conveniences, luxuries, and leisure that had become normal in American life. These are now ebbing away in big gobs for most of the population…
August 5th, 2009 | James Howard Kunstler | 2 comments | Continued
Feds Have Economy on Life Support
There was a crash and credit crunch at the end of last year. Then, the feds panicked. They fought back with monetary and fiscal stimulus. Rates were cut to nearly zero. The Fed flooded the system with cash and easy credit – buying up Wall Street’s bad investments…propping up bad banks…and guaranteeing trillions worth of bad debt.
July 16th, 2009 | Bill Bonner | 0 comments | Continued
Economy Not Going Back to Normal Any Time Soon
Economists are still talking about an “exit strategy.” But in view of what is actually going on in the economy, they’ll probably want to stay on this highway a lot longer. This is the long road to ruin, of course.
July 9th, 2009 | Bill Bonner | 3 comments | Continued
Reserve Bank of Australia Will Meet to Determine the Price of Money
This denial of reality should be interesting to watch. When a credit bubble deflates and an economy breaks its addiction to reckless debt, the sensible thing to do (since you’re repairing your balance sheet) is dial things back a bit. Save. Cut back on the gadgets. Eat more staples. Wear a sack cloth.
But if you still believe that you can get something for nothing-well then yes-you’d continue to borrow and spend like a madman.
July 6th, 2009 | Dan Denning | 9 comments | Continued