danf

Time for the U.S. Economy to Reindustrialize

"The President doesn’t want foreigners to lend us any more of our own money to buy any more of their trinkets."

The president doesn't think about this at all. If it's not on the teleprompter it's not in the presidents mind. The president has never had a real job in his life. He has no idea of what it means to produce. If anything, I suspect the president wants exactly what is described here - please foreigners keep lending us money so I can be the dispenser of goody's.

I don't know what the answers are any more than any one else, but to imagine that anything meaningful is going to come from the state is a sign that we still have a long way to go through this process.

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

Lots on sensitive feelings on display about calling our president names. He is however just a man and not particualarly crucial to the survival of our society. I recall much worse names being hurled at Bush 1 and 2. And I clearly remember the glee of the media in showing the shoe being thrown at the president. I personally refer to the president as Princess Obama.

The unfortunate thing is that the consequences of whatever Ob does now wont show up for 5 or 7 years. So OB will take credit for the recovery that would come along naturally and will be out of office when the consequences of what he does now manifest themselves in the future.

My own take is that the article is spot on. The unions are the favored constiuency of the government. It would be better for the economy if chrysler were liquidated rather than have the company run for the benefit of the UAW and the administration. Such a liquidation might inject some reality into the greater economy.

When the means of production are nominally in private hands, but the enterprise is run to benefit the interests of the state - we have a classic description of National Socialism in Germany 1933 - 45

Point of No Return or Perfect Buying Opportunity?

Regarding BAC, the market seems to be pricing in a significant cut in the dividend. Yield at these prices is 9.4%. I would certainly buy that if I didn't think a 50% dividend cut is coming in the next quarter or 2.

Any thoughts out there on BAC dividend ? Maybe this is one of those difficult places where announcement of a dividend cut would actually be a catalyst for the stock to turn around