True – we have one presidient. However you shoud not hide behind that when the markets need some level of understanding on what he is going to do.

I contend he does not know much about economics and is being brought up to speed ( I hope).

In the end the “one president” wall is easy to hide behind is equivelent to the voting present precident.

They used to produce 17 million and are now down to under 11 million. I predict it is going to get worse as the current recission will last untill 2010.

Furthermore: I live in the Detroit areas and Rick Wagner has been reducing work force in the face of a strong union and a white collar force used to perks and not working to hard. Right now senior management has taken a 30% pay cut, travel is severly restricted and things like tuition reimbursemet are cut out.

New management in GM is doing the cutting of work force (white and blue) however it will take some time to work this out. I agree – they might not survive.

I really blame the Michigan Political Deligation in letting the Big Three going for such a unsubstantiated request. I guess they thought that since AIG got the easy money, the gravy train should continue.

LD –

would be interested in your opinion in terms to the economists you listen to. Also – might be interesting to get a article on bonds as I think there is limited knowledge versus the equity stock market.

The big three also did not get value from their lobbyists in terms of letting them look stupid in the hearings.

This can’t be….any other time people as for O-shit’s position and why isn’t he doing something, he comes up with his newest vague talking point “there is only one president at the time”. SO SURELY, HE ISN’T TRYING TO MAKE THAT NOW TWO PRESIDENTS AND OVER STEPPING NANCY PELOSI AND REID? NAAHHHHH

I told you, Barry owest the auto industry and his sell out is calling for payback now. I was amused over their same rhetoric on tv interviews. O-shit (shhh, not the real president that is only one at a time) discussed this even on 60 mins where he wanted “a bridge loan, not a bridge loan to no where (auh huh huh huh). And then the CEO’s give interviews, “we’re looking for a bridge loan”. SURE, this negates demands for restructure and changes.

Obama Team Said to Explore `Prepack’ Auto Bankruptcy (Update2)

By Linda Sandler and Jeff Green

Nov. 21 (Bloomberg) — President-Elect Barack Obama’s transition team is exploring a swift, prepackaged bankruptcy for automakers as a possible solution to the industry’s financial crisis, according to a person familiar with the matter.

…Bankruptcy is just one option being examined. Obama told CBS News’s “60 Minutes” on Nov. 16 that government aid to automakers might come in the form of a “bridge loan,” advanced if the industry could draw up plan to make itself “sustainable.” The president-elect earlier urged Congress to approve as much as $50 billion to save automakers, using the model of Chrysler’s bailout in 1979.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRfqFMhlj5lk&refer=worldwide

We have to throw expensive parts overboard because it should not be on the inventory, 38k a piece of pump parts, just to get past the inspection. We had to order everything back right after the inspection since we will be needing them at sea. We pay over $750 for a metal door that you can buy for $150 in the open market because of the certification of sea worthiness(and the door wasn’t even an water tight door, yuk). We paid for a hundred dollar screw because we order only 1 or 2 at a time instead of go out and buy them on the shelf.

What I am trying to say is that the politicians and Generals are crooks. There could be huge saving from wasteful spending if they truly wants to without harming our strength. The system was setup since WWI to benefit big corporations.

After all, O-shit! wanted to give them double what Congress was even talking, he said, 50 BILLION Dollars.

They need to give payback for their support and they are using our money to do so, period.

Congress already aproved 25 billion in September for them. But the Big (now small)3 didn’t want the money to come to streamline and develop new technology. They want a loan to do as they wish for current business. This is all just so outrageous. They are the reason they are here, even still after all the help they have received over the decades.

They pocked the money Gore arranged for Bill Clinton to give to help them create new technology in the late 90′s. WHAT DID THEY DO? They POCKETED THE MONEY, made deals with the Oil industry for gas guzzling, killing the Electric Car and GAVE US HUMMERS.

The reason you see Sherrod Brown and Voinovich, just like the others, pushing for aid, is because the Auto industry is heavy there. You should see the plants. But, they’ve been cutting back jobs and shutting down plants already and will continue, with or without our tax dollars. And it’s the uneducated workers that think this will save their jobs so the Senators are putting on a show. It’s up to the rest to do what they know is right and stop giving our tax dollars to these Corporations paying for their High on the Hog way of life, waste and bad decisions and poor business practices.

But the Democrats have no real economic intelligence and are guttless and are afraid of doing whats right and just keep giving away our dollars, growing debt, just because the HOPE it will appear better.

I wonder if you read Karl Denninger at The Market Ticker (http://market-ticker.denninger.net/ for those that are curious) and what you thought of his comments? His conclusions, if the ship isn’t righted, are grim indeed.

Bummer. America, it was good while it lasted. Maybe if we’d have put money into education so that people weren’t so stupid, it could have worked out. I’ll miss you.

Thanks.

There is what I call the “Economic Tsunami Wave” caused by opposing forces acting simotaniously.

Lending has always increased the money supply due to the “bank multiplier effect.

With lending on hold the money supply will contract causing a deflation of cost for goods and labor and an increase in interest paid on borrowing.

Money borrowed in good times with cheap, easy to get dollars and paid back in hard times with expensive, hard to get dollars, favors the lender and the borrower suffers.

But the Fed has lowered the interest rates and increased the money supply through bailouts and incentive give aways.

The deflationary undertow caused by the shrinking of the “bank multiplyer” is pullin back the waters, leaving dry shore for a half mile out to sea.

This invites the lender to venture out just before the Tsunami Wave, (always visable on the horison) Of Hyper Inflation hits wiping out all assets.

The U.S. economy is right now entering just such an “Economic Tsunami Wave”.

Don’t get sucked in!

Cash Is King!

Wait for it!

Wait!

I will confess that I am the furthest thing from an expert on commodities. That said, I am currently working on some things that focus on the energy space specifically. As I get up the learning curve in that sector I willdefinitely pass my thoughts along to you and everybody here at NQ.

What I do know is that hedge funds generally speaking were long a LOT of commodities through the middle part of this year and short financial stocks. They made a lot of money for a period of tiem on that trade but then when commodities started coming down in the lat Summer and the SEC prohibited the shorting of financials in September these hedge funds lost their shirt. Granyed the declining demand for commodities has hurt their prices but also the unwind of a lot of long positions in commodities by these hedge funds has also played a big factor.

Hope this helps.

In regard to other countries repaying debts, I doubt that we may every really know. I am guessing that everything is negotiable when it comes to foreign relations.