Damn, I must have missed something in the good ol’ Constitution. Somewhere, there must be an Amendment that says “When businesses get run into the ground, the government should buy them.” Because that’s more or less what’s going on today as the latest move by corpgov is to move toward ownership by the government of General Motors.
I know, you’re wondering “How is it that as taxpayers we own 79% of AIG – yet don’t have a seat on the board there – and now ‘government’ is going to own GM for a while before selling it off to whoever at some point in the future. Would yah pinch me?”
Sorry, no can do. Both of my arms are black and blue from all the pinching of late. Remember when the linguistics from HPH were talking about we’d get into a period where ‘surreal’ would leap from every day events? Well, this sure feels like surreal jumping out of a dark financial alley to me, for sure.
If I read the intentions clearly, the new company would be initially owned by the government and which would then sell it off to….here’s where it gets sticky: Some would be given to the Unions (which means government is buying something for unions…hmmm….). And some would be given to bondholders in GM, apparently because interest which bond holders have been getting was never really supposed to include risk premium. And then, whatever is left may be sold off.
‘Scuse me while I go pinch myself again…maybe my fingers aren’t enough. Got a pair of ViceGrips I can borrow? Getting to where I could lock a couple of pairs on my arms more of less permanently, weird as the news is lately.
So here’s my new idea: Instead of me paying $30K in income tax this year, how about I just buy a new Chevy and we’ll call it square? WTF, right? TARP me baby!
No yellow journalism around here, no sir. Just a NY paper kind of headline to get you to consider the ramifications of oversight if the “SEC may be stripped of its power under Obama.”
Not that it’s a bad thing, per se. It just seems to me in a moment of coffee-induced logic that what we need are overseers overlooking the oversighters, not just giving the foxes (banksters and the Fed) still more power. Honest in oversighters would be nice, since the headline that “SEC lawyers investigated for insider trading” are still ringing in my eyes. Gotta talk to my optho-doc about that….
Oh…what’s that? There go those murmuring voices again.. You say if they already own the money supply, they already own everything? Minor twitchnicality.
What Goes Up
…comes down and kills nearly 100 in Indonesia.
What Goes Up, II
No surprise here: “California voters reject budget crisis measures” is this morning’s biggest non-surprise. Why so? because people in the Republik of Kalifornia are Free Lunchers of the fxirst magnitude.
Odd Crimes Dept.
“Man demands dentures during alleged stick up”. Lemme see: “You money or your teeth…” ViceGrips, please.
“Democrats won’t fund Guantanamo closing for now.” Too much money to be made in the war business. Well, can’t no anything really new – like an initiative to make America 100% sustainabl;e in everything in 5-years – since that might hurt some of the ruling class investments. War on…you know, as in rhymes with moron.
Secrets Revealed Dept.
Ah…what’s this? All kinds of sensitive info about the Clintonista regime has gone missing? “Authorities probe missing disk with Clinton administration data.“
Say, since we all paid for everything that goes on in the White House, don’t we – the American public – own all that information? I mean, just wondering….
To Market To Market
Ah…here I am in an inter-commodity strangle – long silver, short gold, expecting a whack-attack before delivery…but who knows. The Us dollar is looking weak, however, and so the outcome of the strangle may be a wash – or worse. If the price of gold gets whacked back to $906 I will win my bet. Commodity options are the moral equivalent of pull tabs.
In terms of news, crude inventories come out this morning – and I know all about crude, LOL - and the FOMC minutes this afternoon, just in time to push me into nap land. which leaves only the Leading Economic Indicators (LEI) tomorrow to round out the week, unless the mass layoff numbers come out. That’s a number that really gets downplayed by those not facing the prospect of living under and overpass.
Speaking of which, the Michigan legislature has given homeowners facing foreclosure 90 days to work out a mortgage deal. Now to see if the governor will sign it ==> quick!