December 2008

First off, thanks to everyone who reads my blog and particularly to those who take their time to write in with comments.    As you can see from the comments section, I post all that come in - both positive and negative - so long as they don't contain offensive language. The stories going on today in America generate passion on both sides.   Many of my entires on the automakers, government, ... read more

Cheap and easy credit helped get the American economy into this mess, but apparently cheap and easy credit is going to get us out.   At least that's what General Motors is hoping, but the government-backed easy money may create more headaches than it cures. Today the government agreed to give GM financing arm G.M.A.C an additional $6 billion dollars.  It's a move to help GM provide ... read more

Interesting interview with Grant Thorton Partner Kim Rodriguez today.  She has been working in and around the auto industry for 20 years and few know more about the industry from a financial perspective than she does. We discussed the big issue few seem to be talking about - the pension obligations.  It is an incredibly difficult situation.   On one hand the men and women of the industry ... read more

Scary story of the day: California may be broke in two months. According to the AP: California's chief financial officer warned Monday that the state would run out of money in about two months as hopes of a Christmas budget compromise melted into political finger-pointing by the end of the day.   Republican Gov. Arnold Schwarzenegger began the day on a cheerful note, suggesting that ... read more

With all the negative news this year it's nice to find a headline to smile out.   Thanks to the smart folks at The Onion for this "story." ... read more

Here's the scenario: The roof of your house is on fire.   At the same time a tree falls in your yard, smashing your neighbors fence.   The neighbor comes out and you begin discussing the broken fence, how to fix it and who should cover the cost.   You spend lots of time talking about this, reach a deal and feel good about it.    All while your roof keeps burning and eventually the ... read more

This just crossing ... the UAW is unhappy with some terms of the auto loan and will ask President-Elect Barack Obama to change some of the terms it views as 'unfair.' The union demanded the loan - got it  less than 2 hours ago - and now wants it changed.  You can't make this stuff up, folks. Below is the official UAW release.   It's clear they believe the incoming administration will ... read more

Quick thoughts on the auto rescue loan news... GM and Chrysler received their loans from the U.S. government today.   Ford is not participating in the program.    General Motors and Chrysler will get $13.4 billion now, with GM to receive another $4 billion in February.    The loan requires the automakers to become "viable" by the end of March, 2009.    As I wrote last week, ... read more

Denmark-based Saxo Bank each year comes out with a list of "outrageous" predictions for the next 12 months.    According to the firm they are an "attempt to predict rare but high impact 'black swan' events that are beyond the realm of normal market expectations. Compiled as part of the bank's 2009 Outlook, the thought exercise this year present a dismal view of the global financial ... read more

Despite being widely hated, ridiculed and otherwise smacked down by the public, the $700 billion dollar TARP program may turn out to be the best investment the taxpayer made all year. The folks over at Bianco Research (run by Jim Bianco, one of the smartest and most respected bond analysts in America) published a note today called "Tracking the Trust Cost of the TARP."  This is their ... read more