This short clip explains the Broken Window Fallacy so favored by Progressives and Keynesian theory believers.

This quick peek also shows the demise of Obamanomics and of the U.S. if we continue to listen to his crap.

FREDDIE MAC:
Received: $52 billion from taxpayers
Lost: another $6.7 billion
Needs: $10.6 billion more from taxpayers

Freddie Mac’s Big Losses

The New York Times reports:
If you blinked, you might have missed the ugly first-quarter report last week from Freddie Mac, the mortgage finance giant that, along with its sister Fannie Mae, soldiers on as one of the financial world’s biggest wards of the state. [snip]

The news caused nary a ripple in the placid Washington scene. Perhaps that’s because many lawmakers, especially those who once assured us that Fannie and Freddie would never cost taxpayers a dime, hope that their constituents don’t notice the burgeoning money pit these mortgage monsters represent. Some $130 billion in federal money had already been larded on both companies before Freddie’s latest request. (emphasis added)

Have you heard anything from your local poltroons on the “Bailout won’t cost taxpayers a dime!” How about asking that suckface Barney Frank or the “Sandwich Man” Dodd what’s going on with these numbers.

Bush should have told Paulson NO. If the bankers took it in the shorts with their own money the first time around, we wouldn’t be in this mess. De-nutting the banking queen would have been a snap snip too. The MA pus bag is the precipitate cause of the mortgage end of the US financial turd.

Iceland Rejects Icesave Bank Payback Plan

Icelanders have rejected a plan to pay back the British Government for money it lost over the collapse of the Icesave bank in 2008.

Over 93% percent of voters cast ballots opposing the £3.5bn deal to compensate the British and the Dutch state, initial results showed.

Both nations reimbursed citizens who lost money when Landsbanki and its internet banking scheme Icesave folded.

“This result is no surprise,” Prime Minister Johanna Sigurdardottir said. [snip]

The propsed deal would require each person to pay around £90 a month for eight years, and many Icelandic taxpayers say they cannot afford it.

However, the rejection of the deal could jeopardise Iceland’s credit ratings, making it harder to access much-needed funding to fuel an economic recovery.

The island is grappling with a 9% unemployment rate, a 7% annual inflation rate and an economy that is still shrinking. [snip]

Find the ones that put up the scheme, the pols and bankers and take the loot out of their hides.

We need to do the same thing in this country too. All the ones that profited mightily via M&A’s and the Pols from both parties, line them up; start feeding body parts into plastic shredders just like the Hussein kids did in old time Iraq.

Wanna bet the country gets a bunch of money back fast?

It is not often we can see Progressive/liberal investment practices at work. Of course they involve the government at some level…

The Mayor of Burlington VT, Bob Kiss, wishes to continue with this fabulous enterprise.
Here’s your chance you savvy Progressive Party stalwarts to bypass the pernicious money peddling grandées of Wall St.
Show those Wingnuts, you know how to invest for the future too!
Invest directly with the hometown media.

Keep al Jazeera on the air!

Buy Burlington Telecom Bonds now.

Burlington Telecom Misses Payment

BURLINGTON, Vt. —
Burlington Telecom was unable to pay a $386,000 interest payment due Wednesday, city officials said.

The city-owned utility told the Public Service Board last week that it did not have the money to pay its lender, CitiCapital, without help from the city’s pooled cash fund, but the board denied a request to allow the use of that cash on Tuesday. [snip]

Buy the Bonds and save Progressive Economics from DISGRACE!

We’re counting on you to toss good money after bad.

In a prior post I mentioned what N. Roubini’s concerns were about the recovery.
In exchange, an commenter posted  this brilliant bit of blather, from the consignment of cretins that brought you the mess.

WASHINGTON (Reuters) Aug. 23, 2009 “- The $787 billion stimulus package passed in February will fuel a recovery in the moribund U.S. economy this year, Congress’ non-partisan budget watchdog said on Tuesday.”

“Economic activity will begin to rebound in the second half of 2009, largely the result of fiscal stimulus,” the Congressional Budget Office said in its assessment of the federal budget and U.S. economy.

It’s always nice to see what passes for thought from the Obama camp.

Here’s someone whose creds are considerably more lofty, certainly recognized globally, unlike any of the 535 elected nitwits plus the congregated fools at 1600 Pennsylvania Ave.

Ambrose Evans-Pritchard has covered world politics and economics for 25 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London.

Can the soufflé really rise again?

Two facts that should give pause for thought.
1) Japanese data released on Thursday showed that exports fell yet again in July. They are down 39.5pc to the US, and 26.5pc to China.

Japan is the world’s second biggest economy. It lives on exports. It is also a key part of the supply chain for the Chinese economy. How can this hard data be reconciled with the extreme V-shaped recovery already priced in by the markets?

By the way, Toyota is suspending a key production line at its Takaoka plant in central Japan. It is cutting global capacity by 1m vehicles.

2) The Baltic Dry Index measuring freight rates for bulk goods and commodities has been falling almost continuously for eleven weeks, dropping from 4,290 to 2,778 on Thursday.

Is this just a glut of ships or is this telling us what the Shanghai market is also telling us, that credit tightening by the Chinese government is pulling the rug from underneath the latest commodity bubble? [snip]

I have no idea when stock markets and commodities – especially base metals – will reflect the hard facts on the ground (ie, an end to the Chinese construction bubble). Timing is not my forte. Nor is the market.

But I am absolutely convinced that those who think we can return to the status quo ante of the credit bubble as if nothing has happened are delusional. As almost every central banker in Jackson Hole reminded us over the weekend, it is going to be a very long hard slog.

You might wish to read the article for it is from person one more aware than the Obamatron who commented, particularly if you have MONEY at play.

Then again, if you’re a liberal/Prog, you believe in redistribution.
I recommend leaving it there!

This one doesn’t quite follow Lou Dobbs; more to Obama’s method of financial growth.
If you thought Jim Cramer ranted, you AIN’T seen nothing!

At the end, Carnageman reveals the new Obama economy, called:

The Plunder Method

Warning: Language not usually found on NER

Every cotton boll in four states disappears into the paper currency manufacturing plants and the ONE says:

Road fund running low, Obama says

The Obama administration is warning lawmakers that the trust fund that pays for highway construction will go broke in August unless Congress approves an infusion of as much as $7 billion.

Senator Barbara Boxer, chair of the Senate Environment and Public Works Committee, said at a hearing the administration has told senators the Federal Highway Trust Fund will need an estimated $5 billion to $7 billion to keep current construction projects going.
The California Democrat said $8 billion to $10 billion more will be needed to keep the fund solvent through the year ending Sept. 30, 2010.

Transportation Department spokeswoman Jill Zuckman confirmed those figures.
A decline in driving that began in late 2007 has reduced federal gas tax revenue, the primary source of trust fund dollars.

Anyone have a clue why?

The trust fund is separate from the $48 billion in transportation projects included in the economic recovery law enacted by Congress and signed by President Obama earlier this year.

Take the money out of the shovelless $48 billion squandered on 150,000 teenage summer jobs. Use the rest to put back the $8 billion shortfall transfer

Congress approved an emergency transfer of $8 billion in general treasury dollars last fall to make up a projected shortfall - the first time in the history of the program that had happened.
The fund dates to creation of the federal interstate highway program in 1956.

Senator George Voinovich, Republican of Ohio, said it’s clear that Congress must raise the federal gas tax, which is 18.4 cents per gallon. [snip]

Never had this problem until the Donks decided to fight a war on the cheap in ’65, then in the ‘70’s when price controls enacted drove gas prices up and federal interstate highway program funds were put into the general fund by the Democrats.
So Senator George Voinovich, Republican of Ohio, it’s clear that Congress just needs to put the money BACK INTO THE FUND AND LEAVE IT ALONE!

HT/Viking Pundit

Everything in the media is GM-GM-GM-Chrysler. There is more going on than that; the foreign car companies and Ford are taking hits as well.

Ford U.S. May sales decline 24.2%

12:10p ET June 2, 2009 (MarketWatch)

SAN FRANCISCO (MarketWatch) — Ford Motor Co. said Tuesday that total U.S. May sales fell 24.2% to 161,531 vehicles from 213,238 a year ago. By brand, Ford sales fell 25.5% to 137,167 vehicles, Lincoln sales rose 2.4% to 8,566 units, Mercury sales declined 24.8% to 10,221 units, and Volvo sales fell 22.9% 5,577 units. Ford said it will increase North American production by 10,000 vehicles to 445,000 in the second quarter, and by 42,000 vehicles to 460,000 vehicles in the third quarter.

This is from one of the market research for which I pay. (Subscription so I cannot link)
From 6-2-09 on Ford Motor Co. (stock at $6.00/share)

In 2009, we expect losses and sizable cash outlays as Ford proceeds with its restructuring
plan and faces declining North American and global sales.We see F’s contracts with the
UAWenhancing profitability by about $2.5 billion a year starting in 2010. The agreements include unprecedented union givebacks in terms of benefits and work rules, customized to F’s
needs. Still, what is really needed, in our view, is increased demand for Ford’s products.We think Ford’s president and CEO, an automotive industry outsider with experience in turning
around an international manufacturer, has enhanced Ford’s improvement efforts. However,
we are less confident in his or Ford’s ability to consistently bring to market successful vehicles
– one of the company’s most important challenges, in our view. In 2009, we expect the
company to lose market share again.

Risks to our opinion and target price include increased competitive challenges, a greater than
expected decline in demand and production, weaker than projected financial services income,
a greater drop in cash balances than we expect, and failure of one or more competitors
or key suppliers. We are also concerned about Ford’s corporate governance, with Ford family
members having greater voting rights than other shareholders.

As of December 31, 2008, total stockholders’ equity was negative. The stock recently traded
at a price-to-sales (P/S) multiple above that of GM. Based on peer comparative P/S multiples,
our 12-month target price is $2.50, equal to about 0.04X projected 2009 sales per share.

Hotspur posted to what happens to Ford. Obama isn’t going to let Ford sink his favorite son.

The UAW owes him, some union troubles go a long way to helping the disabled. The foreign manufacturers, being non-union, get a different club hammer sickle to cut them down to size.

Are you more confident in Obama’s banks?
Yup, Everybody is!

Except some bankers and, well some lenders and the FDIC and the financiers who know how phony that “stress test” really was.

UPDATE 1-U.S. FDIC restricts interest rates at weak banks

WASHINGTON, May 29 (Reuters) – U.S. banks that are struggling to stay afloat will not be allowed to aggressively ratchet up interest rates to attract customer money, a top bank regulator said on Friday. [snip]

The agency also finalized a rule that expands the FDIC’s debt-guarantee program to include mandatory convertible debt. The FDIC passed an interim rule in February to expand the program, which is designed to boost confidence in banks. [snip]

… The FDIC said on Wednesday that the number of banks on its “problem list” grew 21 percent in the first quarter to 305 institutions — the highest number since 1994. [snip]

The number of seized banks has been consistently creeping upward, with 25 failed banks in 2008, and only 3 in 2007.

FDIC Chairman Sheila Bair said this week that the number of failed banks will continue to grow.

Keep that last sentence a secret.
Or you can help Obamanomics by:

1. Converting some of your wealth to gold
2. Getting all of it out of the banks.
3. Buying long term goods while interest rates are still low.

The Fed cannot fight inflation and grow the economy at the same time.

Pick your poison:
Inflation and I mean high (Carter type) inflation or a flat economy with high interest rates.
Maybe the Messiah will be bountiful and give us both, just like “Peanuts” Jimmuh.

Remember Barney Frank?  He said Fannie Mae and Freddie Mac were solid right before they collapsed.  He’s back with a new scheme to prop up the municipal bond markets that amongst other things would:

• Create a liquidity facility through the Federal Reserve to purchase municipal bonds, much like what the Federal Reserve does with mortgage-backed and federal government bonds.
• Form a temporary federal government program to reinsure municipal bond insurers…
• Provide additional regulation for financial advisors to municipalities….

What could possibly go wrong?  It’s not like California is on the verge of bankruptcy or anything.  How thoughtful of Representative Frank to put the other 49 states on the hook for the financial train wreck taking place in CA.  He’s just a swell guy helping us perform our civic duty:

House Financial Services Committee Chairman Barney Frank (D-Mass.) is leading the effort and has long touted his investments in municipal bonds that finance public projects as a civic duty.

Civic duty or conflict of interest?  I’m the sure the Heinz-Kerrys appreciate this bailout for ultra rich liberals who use municipals to avoid taxes instead of cheating on them like Turbo Tax Tim Geithner.

The ONE is beating up hedge fund managers, bondholders and widows as greedy capitalist pigs.

Shame on them! They won’t part with their secured holdings at pittances between $0.15 and 0.29 on the dollar. Obama wants to give this booty to the unions as a reward for campaign donations.
In return, Mussolini Motors er Fiat will build cars that Obama says you WILL buy!
Government Motors, after it restructures, by grabbing every widow’s mite will build their cars everywhere but in the US.

Under Restructuring, GM To Build More Cars Overseas

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.

As a result, the long-simmering argument over U.S. manufacturers expanding production overseas — normally arising between unions and private companies — is about to engage the Obama administration.

Essentially in control of the company, the president’s autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations.

“It’s an almost impossible dilemma,” said former labor secretary Robert B. Reich, now a professor at the University of California-Berkeley. “GM is a global company — so for that matter is AIG and the biggest Wall Street banks. That means that bailing them out doesn’t necessarily redound to the benefit of the U.S. or American workers.

“More significantly, it raises fundamental questions about the purpose of bailing out these big companies. If GM is going to do more of its production overseas, then why exactly are we saving GM?” [snip]

Force them into bankruptcy court, where Obama cannot play around. The courts will deal fairly, correctly according to established law and cut Obama’s bully tactics out of the equation, the unions too.

The more Obama loses, the more America wins.

3D, Living Color & Sensurround

Obamadigital™ bring this horror show to real life right in your neighborhood, starring members of your Congressional Delegation.

Admission: Present and Future Earnings

Attending the G-20 meeting?

Go attired in style; let the ONE know how you stand on overspending.

Get your BT/DT T-shirt!

Let your DC clowns know, YOU KNOW!

Dressed in his best suit, TOTUS delivered a power speech to the Nation laying out at his feet his economic plans.

Was it Prof Dodd in the cloakroom with a noose?

Ah, it was Obama, with the lead pipe, in the Oval Office.

You have to like the way Gibbs dazzles the media with mouthwork. With what a bunch of clowns, the ONE has surrounded himself.