The following propaganda video was made by GM “to explain some of the economic impacts in the country today.”
So let me get this right. Auto sales are down, no one is really buying new cars because they have no money, or can’t get a loan and thus the Big 3 are suffering. So they are asking for a bailout, so they can pay Union worker to either stand around and get paid, or work and make fewer cars that no one is going to buy and sit on lots and pay off their pensions and healthcare benefits to those who have retired.
And in the meantime, the Big 3’s demand for supplies lowers, thus the suppliers aren’t making as much money and lay off people or go out of business, just so the Union’s can stand around and half work still getting paid their same wage (which with all benefits has been determined to be around $70 an hour), and also so the Big 3 can pay their pension funds to those who no longer work for the Big 3?
And in this video, GM says they are responsible for generating $693 billion in new vehicle sales. Well, they aren’t this year, now are they or they wouldn’t be asking for welfare now would they?
And all the Big 3 are good for is $60.1 billion in 2009? $54.3 billion in 2010 and $42.0 billion in 2011? That’s all the Big 3 are good for? Pfftt…….
Did I miss anything?
Ya know.. welcome to the recession Big 3 and all your 239,000 employees, all your 775,000 retirees and family, and 2 million who use the Big 3 for healthcare. Welcome to misery like the rest of the United States who have no jobs, and millions who don’t have healthcare benefits. Because right now “I see no profit” in it for me, the average taxpayer and all I see is you getting bailed out by the Feds, while all your employees and retirees get things that the rest of the country is losing right now. And ya know, 1.2 million people are unemployed right now, and you suddenly seem concerned about an additional 3 million (according to your skewed numbers). Tell ya what, yes to your bailout however, EVERY taxpaying American in 2009 gets a 2010 vehicle for $500.00. How’s that for a deal?
BTW, the Senate plans to introduce legislation Monday attaching an auto bailout to a House-passed bill extending unemployment benefits. A vote is expected as early as Wednesday. Again, the House can’t do it’s job, and the Senate cleans up for the House.
So why is it I ask, that a bank bailout was made in around three days from start to finish, and now its going to be the same for the Big 3, yet a stimulus package for taxpayers is taking MONTHS?
Hartford Financial Services Group Inc. (HIG) said it is going to try to turn itself into a savings an loan to gain access to federal funds for the banking sector. To pull this off, the 198-year old insurance company is going to spend $10 million to buy Federal Trust Corp. (FDTR), a thrift holding company based in Florida and founded in 1988 for $1 a share. Federal Trust Corp (FDTR) was issued a cease and desist order in May by the FDIC ordering it to improve its lending practices and raise capital.
Simultaneously, Hartford is applying to take part in the $250 billion CPP under the $700 billion TARP. The deadline for application was Friday. Hartford estimated it would be eligible for a $1.1 billion to $3.4 billion investment from the Treasury if its application is accepted.
In their announcement however, they state “The Hartford’s purchase of Federal Trust Corporation is contingent on Treasury’s approval of The Hartford’s participation in the CPP (Capital Purchase Program).” [Is that even legal to make that claim? Yes we want the company as long as we can have some of the action, but if not, then we aren’t going to buy the company.]
It is interesting to note how the stock jumped after this announcement on Friday. I don’t think I have to point it out to you.
Also, life and mortgage insurer Genworth Financial Inc (GNW.N) said on Sunday it applied for capital under a U.S. government program, after reaching a deal to buy a bank, bringing it under federal regulation. The bank is InterBank fsb of Maple Grove, Minnesota with about $1 billion in assets. Genworth declined to say what amount of capital it was seeking. In the past year shares of Genworth have fallen from $25.45 to as low as $1 last week and posted a $258 million net loss for 3rd Q, 2008.
There were two other insurers that pulled this. Lincoln National (LNC) who applied to acquire Newton County Loan and Savings Banks. And believe it or not Aegon NV a DUTCH firm that owns U.S. insurer Transamerica, applied to acquire Suburban Federal Savings Bank. So I guess even if you are not a U.S. company but you own a U.S. insurance company, you can apply for U.S. funds under this program to pay for your Dutch company?!?!?
I think Congress forgot to add something that is/was being taken advantage of. Well, at least only two cases are know about at least, since the deadline for applications was last Friday. And if approved, they will sell preferred shares, along with warrants for common shares, to the Treasury that pay 5% annual dividends for the first five years, which then escalates to 9% thereafter. The companies must also adopt the Treasury Department’s standards for executive compensation and corporate governance for as long as the Treasury holds equity issued under the program. Then again, we’ve seen how well that works with AIG.
Last Thursday, Nov 13, a fight broke out at UC Berkeley, but this was no “normal” fight. And please note, I am NOT taking sides for ANYONE as you read this. And no, don’t email me or leave a message that I am contributing to the problem. This is not a new problem, there is already a problem there, the problem has been there for 10 years, including a magazine at one time entitled “Zionish: the Forgotten Apartheid” promoting Hamas and Hizbullah, and it needs addressed.
Last week, there was a concert promoting Israel Liberation Week and was sponsored by the Zionist Freedom Alliance student group. Around 5:30 PM three members of Students for Justice in Palestine hung up two Palestinian flags on the building above where the concert was going on. The students said they were responding to the anti-Palestinian lyrics they heard.
Three individuals, which included one who was a performer at the concert, went up to the balcony where the flag was being displayed. All three men were Jewish. A fight broke out.
ASUC officials who witnessed the fight said the three men interrupted ASUC meetings on the second floor in order to reach the balcony. They added that the fight prompted about four members of the audience to run up to the second floor.
“I went up to the second floor because the message they were sending was an abomination to our national rights,” said Gabe Weiner, ASUC former senator. Weiner was handcuffed and later cited with battery by UCPD. One additional student and one non-student were cited for battery, with both of them also being Jewish. (Gabe can be seen in the middle in an unrelated picture.)
Witnesses said that the Arab students shouted anti-Semitic curses and epithets throughout the incident, calling the Jews “Nazis” and “dogs,” and threatening to kill them. According to one witness, as many as 20 anti-Israel students participated in the fight.
Husam Zakharia, said the rap lyrics he heard spurred him to hang up the Palestinian flag. “We’re going to go up and we’re going to put up our Palestinian flag in silent protest-exercising our freedom of speech to say we’re here and we exist,” he said, adding that he was surprised by the reaction. Zakharia was hit in the face during the altercation.
According to blogger who states he has taught part-time at UC for 10 years, “the entire UC system has been plagued for some years by tension between Jewish and Muslim students due to the Israeli-Palestine issue.” Pro-Israel students at UC Berkeley have complained of anti-Israel and anti-Semitic harassment.
In a September incident, a poster promoting Israeli-Palestinian peace on a bus stop outside Eshleman Hall was vandalized with anti-Semitic marks and symbols. The Berkeley Police Department was investigating the incident as a hate crime, which Berkelely Police Officer Andrew Frankel said was “unusual.” [Frankel must not have worked at UC-Berkeley when four years ago, Chancellor Berdhal announced a 30-member task force to tackle hate crimes.]
At the time, the Dean of Students Poullard said he hoped the incidents [of hate related vandalism] would make students more conscious of preventing incidents of hateful speech. “I think it’s a reminder to all of us what we must be vigilant to create a safe space,” he said. “I think something good will come out of this.” [Yea, like what happened last week?]
In early September SJP claimed that one of their boards had been vandalized. The board “displayed an image of the apartheid wall that Israel is constructing in and around the West Bank, as well as a caricature of Handala, a famous cartoon of a Palestinian refugee by cartoonist Naji al-Ali.” One Jewish member of the SJP has argued that there is no such thing as a Jewish nation and that Jews have no claim to any territory anywhere.
Below however, in early October, ASUC Senator John Moghtader and Weiner lead a disruptive protest by Tikvah Students in October at a lecture titled “Israel, Palestine, and the Rule of Law: A Discussion on The Rights and Wrongs of Israel’s Occupation of Palestine.”. Because of this incident, the Jewish Student Union (JSU), student-led body that oversees 15 Jewish student groups, placed Tikvah: Students for Israel on probation.
The president of the JSU told Tikvah that if they issued an open letter to Students for Justice in Palestine apologizing, they would be taken off probation. Moghtader said it wasn’t going to happen. (In 2002, Students for Justice protested a Holocaust Remembrance Day commemoration where 79 pro-Palestinian protestors were arrested. SJP was put on suspension so no one is innocent here.)
Additionally, as for how long this has been going on, lets take a look at a few months in 2002 on UC campuses alone regarding anti-Semitism.
■ Feb 7, 2002 – Pro-Palestinian students staged a protest at the UC-Berkeley calling Israel an “apartheid state” and Israel Prime Minister Ariel Sharon a war criminal. Demonstrators also staged a skit, during which cardboard models of “Palestinian homes” were crushed by students holding photos of Prime Minister Sharon in front of their faces.
■ Feb 16-18, 2002 – A nationally promoted conference at the UC-Berkeley served as the kickoff for a student-led campaign to encourage universities to divest themselves of stock in corporations that do business with Israel.
■ March 27, 2002 – The UC-Berkeley Hillel Center was vandalized with anti-Israel and anti-Semitic graffiti and the glass front door was smashed in with a cement block.
■ April 6, 2002 – A construction site for new dormitories at UC-Santa Barbara was defaced with anti-Israel/anti-Semitic graffiti including the phrases: “Anti Zion/Nuke Israel,” “God Hates Jews,” and “Burn the Torah.”
■ April 9, 2002 – Campus police at UC-Berkeley arrested 79 pro-Palestinian protestors who had stormed into a classroom building in an attempt to disrupt a Holocaust Remembrance Day commemoration. In the aftermath of the incident, the university suspended the student organization, “Students for Justice in Palestine,” pending an investigation.
■ April 9, 2002 – A “National Day of Action in Commemoration of Massacre of Village of Deir Yassine April 9 1948” was held at UC-Davis, to coincide with Holocaust Remembrance Day activities.
■ April 12, 2002 – At UC-Riverside the Muslim Student Union sponsored a rally and protest for Palestine that concluded with a march to Riverside’s City Hall.
■ April 15, 2002 – Muslim student groups at UC-Berkeley and UC-San Diego posted fliers featuring fabricated, distorted and out-of-context quotations from the Talmud and other rabbinical literature. Samples include: - “A Jew is permitted to rape, cheat and perjure himself, but he must take care that he is not found out, so that Israel may not suffer.” - “A Gentile girl who is three years old can be violated.” - “The Jews are human beings, but the nations of the world are not human beings but beasts.”
■ April 15, 2002 – Al Kalima, the Muslim newsmagazine at UC-Irvine, jointly published a highly anti-Israel publication entitled “Zionism: the Forgotten Apartheid.” The magazine publicly lauds and promotes both Hamas and Hizbullah as legitimate and noteworthy resistance movements. The magazine has also been distributed at UC-San Diego.
■ April 24, 2002 – The Muslim Student Association at UC-San Diego sponsored a talk by Hatem al-Bazian, a speaker whose anti-Semitic and anti-American views were challenged by Hillel members, who placed fliers around campus that featured al-Bazain’s quotes. Muslim students who witnessed what Hillel members were doing began to scream and taunt the Jewish students: one allegedly made threats of physical harm.
■ May 2, 2002 – Following the rejection of a divestment resolution before the UC-Berkeley student government, a group of 500 protestors gathered to object to the University administration’s suspension of the Students for Justice in Palestine group.
■ May 7, 2002 – The Muslim Student Association at UC-San Diego distributed filers on campus titled, “The Jenin Massacre.” At the same time, fliers appeared on campus with an anti-Semitic diatribe written by the right-wing extremist and former Klansman David Duke.
■ May 14, 2002 – At UC-Irvine, an anti-Israeli demonstration featured the display of mock “body bags” of Palestinians “murdered” by the Israeli army.
As for this year, it seems the trend is down, as prior to the above incident, only four cases of bias-related crime has been reported on UCPD this year. Want more examples? How about another? Or another? Or another? There are way too many to list here, and against Jews.
And in 2005 when there was to be an anti-terror rally at Berkeley, that included the wreckage of Jerusalem Bus #19, that was destroyed in a suicide bombing that killed 11 and wounded 45, it almost never took place due to a crowd of 300 pro-Palestinian, and Socialist group protestors. In their protest, the expressed their outrage that Jews, Christians and other supporters of Israel and America had dared to gather and speak out against terrorism. About 40 pro-Palestinian college students waved Palestinian flags and used bullhorns to chant “Down with Israel!” and “Down with the U.S.A..”
RANT:
Obviously the UC system endorses anti-Semitism on their campuses as they continue to let it occur. And remember, I don’t take sides however, it seems that those who are pro-Palestinian are getting away with way too much and when pro-Israel students attempt something, the pro-Palestinian students make their lives miserable based upon the information I have found.
However, I do believe that those groups or individuals on campus that have repeatedly been put on probation or suspension due to basically what should be called hate crimes, should be suspended permanently. What is it going to take before this is addressed on UC campuses? Or is UC-Berkeley turning into a pseudo “war zone” like Israel and Palestine, where there has been fighting since the beginning of time, and thus this kind of activity will continue on also?
When a student can not even walk out of their dorm without fear of having to defend themselves because of their religion, then that school is not worth the paper the diploma is printed on. No student should have to defend themselves to get an education.
This is not the West Bank, this is not Palestine, this is the United States. If you want lines, go to to Israel, as there will be NO LINES of “my area” and “your area” as its “our area” as in WE THE PEOPLE here in the United States and that is what this country is based on. If you don’t like it, then leave it. No one is making you stay here. You want to fight for your religion, then go to Israel. Don’t like what I have to say? Hmm.. FIRST AMENDMENT, thank you. Because I really don’t care what you believe when it comes to God, as long as you aren’t pushing it down my throat, or blowing up or killing people because they aren’t “your” religion.
Hey, we bailed out the investment companies. Then we bailed out banks. Companies such as American Express have jumped on the bailout wagon. The Big 3 Auto Companies now want money. Now JC Penny wants a piece of the action. I’ve never heard so much whining in all my life.
The CEO of JC Penny is now lobbying for a federal bailout plan to boost consumer spending and come to the rescue of the retail industry. While US retail spending fell by a record 2.8% in October from September, JC Penny’s 3rd Q profits fell 53%. Additionally, they disclosed a 22% decline in the value of their pension plan, due to the stock market collapse. But yet, the company saw a profit of $0.90 to $1.05 a share, although the return on their stock is at –60.74% for YTD and they are still planning on building 17 new stores.
On Friday, Mike Ullman, Chief Exec at JCP, called for government action to boost consumer spending since they are not making money like they use to. Can anyone say GREED?
Seriously, you are still making a profit, investors are still making a profit, and you plan to build 17 new stores in this economy, and you think you are suffering? Talk about a lazy, greedy company and I thought AIG was bad….. Maybe it’s just time for JC Penny’s to go like other retail outlets. I personally haven’t stepped in a JC Penny’s in about 20 years as there are other retail outlets that have a better variety of goods, higher quality goods with lower prices… and I’m not talking about WalMart.
JCP seems to think their 2008 Christmas Campaign, “Red Box Gifts” will convince consumers that JCP offers products similar to those found at higher-end stores at much better prices. Who needs a “Luggage Locator” for $19.99? Or a “Pet’s View Camera” for $39.99? Or maybe a Coca-Cola Vending Machine for $149.99? Yea, I’m gonna run right out and buy those things that are just so important to existing in a recession……. This just goes to prove that JC Penny has gone from the good old days of selling items that were useful and needed in the home, to dependent upon sales of goods that are good for absolutely NOTHING.
But on “useful” gifts in the “Red Box Gifts” section, lets look at the Cuisinart 4-cup Coffeemaker. Their page advertises that it was originally $39.99 but now is $29.99, and is only available online. So remember that JCP’s promotion is to offer products similar to those found at higher-end stores at much better prices as a campaign, lets look around, shall we? Amazon: $29.95 (Or if you want it in pink $23.99); Bed Bath & Beyond: $29.99; Kohl’s: $39.99 (but is on sale at $33.99); Macy’s: $29.99.
So let’s look at another item. The KitchenAid® 5-qt. Artisan Stand Mixer with an original price of $379.99 but is now, $299.99 but this one is available in stores. Home Depot: $299.99; ACE Hardware: $269.99 (with free shipping in the US); Bloomingdales’: $299.99; Macy’s: $299.99; Target: $299.99
So, how is JCP any cheaper? Can you say MARKETING SCHEME boys and girls?
So if we are bailing out all these banks, all these financial institutions, bailing out automakers, wanting to bailout retail outlets now, and planning on another stimulus package, why are we still using money? Seriously, sounds like to me that we might as well get rid of the dollar, everyone works for handouts, and everyone gets everything for free since taxes are going to be so high in the long run, no one makes any money. And yes, I am being sarcastic, but it seems like that is what everyone wants.
So is the United States in a recession? Well, first lets look at what the “official” definition of what a recession is and how it “officially” is determined. Then lets look at the numbers here in the United States and see where we stand. And I’m asking for anyone to help me with a theory of what happened in June, 2008.
RECESSION DEFINITION
[Hey, its like Conjunction-Junction! Sorry… I know it was bad.]
Currently Japan, Germany and all of Europe have announced that they are in a recession as of the end of the 3rd Quarter. Basically here in the United States, we have the “luxury” of not being in a recession until our government tells us we are.
A Recession is “officially” considered two consecutive quarters (six months) of negative growth in the Gross Domestic Product (GDP). This is highly debatable and depends really upon who is talking. It also may take into other factors such as increasing unemployment levels, increasing inflation, house prices declining, the stock market dropping and the value of the dollar dropping.
The Gross Domestic Productis a number that is defined as the total market value of all final goods and services within a country in a given period of time. To make a long story short;
GDP = consumption + gross investment + government spending + (exports – imports)
Consumption is how much one buys. Gross Investment is the cost of investing. Government Spending is how much the government is spending. And exports are how many goods or commodities a country is sending outside the country and imports is how many goods or commodities a country is receiving from outside the country.
A Depression is suppose to be when the GDP drops over 10%, presumed in one quarter. I could be wrong about this, but who wants to use the “Big D” word?
UNITED STATES AND RECESSION
Technically, the United States is in a recession if you go by the two quarters of negative GDP growth, but I haven’t heard any “official” announcement.
GDP:
Quarter
Rate
Difference from previous quarter.
1st Q (Jan - Mar)
2.5%
+ 0.1%
2nd Q (Apr - Jul)
2.1%
- 0.4%
3rd Q (Aug - Oct)
0.8%
- 1.3%
And one other thought to ponder. If it were not for the government bailing out the banks, and now companies like American Express where would we be? It’s not so much to think about then being bailed out, its more of the point that if they weren’t, they would be gone.
Additionally, the US automakers are now asking the government for money. And in a new report, which I will be blogging about next, even retail outlets are now asking the government for money, such as JCPennys. Additionally, retail outlets are going out of business. Circuit City has closed 155 stores. Linens and Things are gone. Banks have been failing, 19 so far this year alone. States are running out of money. I’ve seen and read about all of these things happening, but not all at one time. What is it going to take before someone says the “R” word for the United States?
A FEW MORE CHARTS FOR YOU TO GANDER AT
I have to honestly say, I’ve never seen the numbers quite like this.. all at one time. Something happened in June 2008 to cause all this mess. Because if you look at the numbers, by month, major jumps across the board began in June 2008. If you look by quarters, jumps began in 2nd Q, 2008 with both continuing in July, 2008.
All I can remember happening is that gas prices spiked to over $4.00 a gallon, thus causing transportation prices to increase, causing the price of goods to increase. I also remember grocery prices seemed to jump about 30-40% around that time. I don’t recall any “financial” failures at that time. Anyone else have any ideas?
UNEMPLOYMENT
CONSUMER PRICE INDEX
The average price of consumer goods and services purchased by households. To understand the numbers, the Bureau of Labor Statistics based the number 100 on an average of 1982 - 1984 prices. This is called the base. The base CPI is changed every so often with the last time being in 1967. Basically this is so that you don’t notice that there has been a 1000%+ inflation since the start of this measure, which I will show via the inflation graph. The other thing to note is that if the CPI goes up, that means things cost more to purchase and respectively, if it goes down, then something costs less to purchase.
So how to understand the number. Lets say an item cost $1.00 on average between 1982-1984. If today, in 2008 that same item costs $1.85 then the index would be at 185. In the most current data the Sept, 2008 CPI is 218.78. That means a 118.78% inflation from 1982 prices. In other words, what on average cost $1.00 on average between 1982-1984 now costs $2.18
CPI IS NOT the same thing as Inflation.
INFLATION
So now that one understands what the CPI is, lets look at what inflation is. Inflation is simply “an increase in the price you pay for goods.” In other words, a decline in the purchasing power of your money. It is more like a “percent” whereas CPI is a “measure”.
For example, today $1.00 in 1984 has the same buying power as $2.11 in 2008. If you compare this number $2.11 to the CPI number which is $2.18, you see they are close enough to be nearly the same. CPI: 218.78 compared to the 1984 base. Buying Power: $1.00 (1984) = $2.18 (2008) which is a CPI of 218.00 using the 1982-1984 base. Which means what cost $1.00 in 1984 would cost you $2.18 today.
So when you see the price of something from the Great Depression and say “WOW that is CHEAP!” Its not quite accurate. Buying Power: $1.00 (1933) = $16.83 which is a CPI of 1683. This also means what cost $1.00 in 1933 would cost you $16.83 today.
For example, 1 dozen eggs in 1933 cost $0.15. Now at first glace that is REALLY cheap. But when you add in inflation, that same dozen eggs would be equal to $2.40 in 2008. And the price of eggs today,not on sale does cost around $2.00, so in fact, prices were MORE expensive during the Great Depression. I will get more into this comparison at a later date on a separate post.
But the thing to remember from the graph, is inflation is increasing, at a rather fast rate compared to two years ago and one year ago.
PERSONAL SAVINGS
Personal Savings is just what it means. It means how much money we are NOT spending.
CONSUMER SPENDING aka Personal Consumption Expenditures
This one for some reason, I’m having a hard time finding the exact numbers for however, here’s a graph from the BEA with the August data missing for some reason. This shows that we are not spending the money we are making.
BALANCE OF TRADE
The balance of trade is the difference between the monetary value of exports and imports. A negative balance of trade is known as a trade gap, and means more is being imported than being exported. We as a nation have been importing more goods for a considerable amount of time, versus the amount of goods we export. Thus if consumer spending goes down in the United States, it effects the rest of the world.
So here’s another question? Are we in a recession?
