Amba at Ambivablog shares notes from a recent conversation with a friend who is very concerned about the global economic situation:
Schwarzenegger just asked for 7 billion; basically, CA is broke. Seven more states are insolvent, will go broke by the end of the year, have completely overspent, and can't print money like the feds can.The DJIA opened under 9300 today, and is down 30% year-to-date.L.A. seeks 400 million dollar bailout separate from CA as a state. Cannot meet its obligations on its bonds, or anything. Expect other municipal bonds to tank. The city of Detroit is gone. Bonds worthless [...]
Iceland just went broke . . . other European countries will follow.
Auto companies are about to ask for 75 billion. They can no longer extend auto loans.
In 2012 the boomers start to retire; they can't afford to.
So what solutions do our Presidential candidates offer? More government entitlement programs, higher taxes, and using federal (i.e., our) money to buy out "bad" mortgages. I don't think either of them have any idea what they're doing or any thing driving their proposals except political pandering.
UPDATE: The Dow closed under 8600 today. It's down almost 40% over the last year.
2 comments:
Don't forget, they're going to add more regulations - you know, like SOX, that actually make the problem worse.
There's no problem so bad that government intervention can't make it worse.
As far as running things, I think government should stick to defense, public health, the mail, and Streets and San.
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