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That ought to be a fascinating dinner discussion.
-----
"Hope for the best, prepare for the worst"
Wouldn't a name like "Ponzi Planet" be more approprite in light of recent events.. Or "Fantasy Planet"
Kohn said that while he doesn't expect to see deflation in the next five years, "I can't say the risk is zero." (from WSJ)
Seriously?
He doesn't know what inflation will be in five months ...
We need a Planet Czar !
Hat tip to whomever posted this Barron's link on insider transactions on the last thread - any interested market observers should take a gander at the plot at the bottom of the page...
energyecon,
Whoa! That's an attention getter!!!
-----
"Hope for the best, prepare for the worst"
DQNews reports all of Santa Monica had 4, yes four SFR sales last month. A 3 year supply. This might have something to do with only a handful being under a million.
The People on Planet Money don't get the whole picture ...
The RE bubble has burst the underlying 30 year Greenspan bubble.
We could have survived just an RE bust ... it's at least 4 times that size ...
TJ&TB,
That is what I thought - had to go back and find out who posted it - ht to Lionel for the link.
Anyone who wants to do their own research try Insidercow
An example being this eye opener for TOL
Sybase Oracle
East West Bank Corpse
Sea men antics
I am starting to feel a bit like Dr. Manhattan in 'The Watchmen' right now, you know.. the part where he confesses about having lost the ability to care about humans
________________________________________________
Dudley Says Fears of Scrutiny in TALF Are 'Misplaced' (Update1)
(http://www.bloomberg.com/apps/news?pid=20601087&sid=azMveknELeO8&refer=home)
By Craig Torres and Timothy R. Homan
April 18 (Bloomberg) -- Federal Reserve Bank of New York President William Dudley said investors hold "misplaced" fears that participation in a $1 trillion central bank program to revive lending will bring government scrutiny.
The Term Asset-Backed Securities Loan Facility, aimed at supporting financing of loans to credit card borrowers, students, car buyers and small businesses, is off to a "slow start," Dudley said, recording just $6.4 billion in loans. "Investor anxiety about using the program has risen."
i can explain exactly how to use the insider trading information that energycon references above, to your best advantage
see this conversation between gen george armstrong custer and his mule skinner indian scout and you will understand
Lucifer
It's called a m
e
l
t
d
o
w
n
Silent words OK.
Unopened letters friend?
please be nice to me.
CR
Here come all the CR groupies. I would go if I was in the area....
Nice, mock. A great book and superb movie.
It is funny how people complain when they are the other end of the gun.. I guess that thought never crossed his mind when he did the same to others in his last company
__________________________________________
Laid Off And Looking
The Wall Street Journal follows eight out-of-work M.B.A.s as they search for jobs in a post-meltdown world.
Work Experience is a Liability
Posted by Spencer Cutter
A few others have discussed age discrimination on this blog and how interesting it is that, the bloggers who have found jobs also just so happen to be among the youngest. I've also discovered another form of discrimination that comes with age, which I'll call 'experience' discrimination. Throughout my interviews, I've realized that instead of actively seeking out candidates who are experienced and can provide valuable insights to their organization, as one would expect, the employers I've spoken with seem to be actively avoiding anyone with more than five years of related work experience
The man the myth the legend
Lucifer (member) wrote on Sat, 04/18/2009 - 7:16pm.
Young employees are cheap, malleable and unaware ...
I am not against using protesting doctors and their families as fish food.. we will require a few wood chippers for that.
______________________
Universal Care Could Be Thwarted by Disappearing Docs
APRIL 17, 2009, 1:08 PM ET
In the debate about universal health care, ensuring that all people have insurance is equated with making sure all individuals will receive health care.
That's not necssarily the case, says Marc Siegel, a New York doctor, in a opinion piece in the WSJ. A growing number of physicians are dropping out of insurance plans, particularly the giant programs sponsored by the government - Medicare and Medicaid. That means a patient may have coverage but still have trouble affording care, according to Siegel.
Nearly 30% of Medicare patients surveyed by the Medicare Payment Advisory Commission in 2008 said they had trouble finding a primary-care physician. Another survey cited by Siegel of docs in Texas found only 38% said they took new Medicare patients. And he says 10% or more doctors dropped out from two big New York HMOs a year.
Past tense.. used to be!
//Young employees are cheap, malleable and unaware//
Regarding the operation of Fractional Reserve Banking.... The creator of the film "Money as Debt" has posted a new web page that deals with some of the discussion we had in a previous thread. Please see http://paulgrignon.netfirms.com/MoneyasDebt/disputed_information.html
Also note that he is apparently working on a sequel, "Money as Debt II: Promises Unleashed"
I think a few death marches would also do protesting doctors and their families a lot of good... Plus you could televise it on pay per view and make money off shows that follow the progress and attrition of these death marches.
Nearly 30% of Medicare patients surveyed by the Medicare Payment Advisory Commission in 2008 said they had trouble finding a primary-care physician.
I wonder how many master plumbers they had trouble finding at less than minimum wage?
Comic Relief!
___________
WEEKEND INVESTOR
Grab the world by the horns
Five ways to set up your portfolio for a global stock-market recovery
By Barbara Kollmeyer, MarketWatch
Last update: 1:01 p.m. EDT April 17, 2009
Comments: 67
http://www.marketwatch.com/news/story/Five-ways-set-up-your/story.aspx?guid={575E8955-200E-49A6-8224-3CCD44F1811D}&dist=SecMostRead
o.jeff (member) wrote on Sat, 04/18/2009 - 7:23pm.
Regarding the operation of Fractional Reserve Banking.... The creator of the film "Money as Debt"
~~~
Money as Debt is a must ... Most economists have NO IDEA what money actually is!
Therefore they profer linear answers for multi-dimensional problems ...
enegycon --excellent link. Thanks. That graph tells it all.
Lucifer,
It's a typo.
It should read: "...global stock market recovery in 2028."
VeeDub_a-you van
Butterflies wildflower-za
three in a boat.
when you're alone, you are alone
More comic relief!
____________________
Business Grads Looking Beyond Wall Street
TOPICS:Earnings | Economy (U.S.)
By: Steven Greenhouse, The New York Times | 18 Apr 2009 | 09:10 AM ET
For the last decade, a job at Riana Paige, an undergraduate senior at the Wharton School of Business, had a high-paying internship at JPMorgan Chase last summer and was disappointed when she did not receive an offer for a full-time job after graduation. Now she is pursuing a job teaching in Dubai, or working for a wine importer.
Daniel Miller, a Wharton senior who interned last summer at a boutique private equity firm in Manhattan, became so discouraged by his search for jobs in finance that he began thinking about becoming a rabbi.
Jessica Levy, also a senior at Wharton, the nation's most prestigious undergraduate business program, was stunned when her supervisor at UBS told her that although she had done a terrific job as an intern, the bank could not offer her a job after graduation. Her dreams of investment banking quashed, she recently took the Foreign Service exam and is vying for a job at the State Department.
"A lot of my peers, we're exploring things that we used to not even think of as an option," Ms. Levy said. "A finance major who was minoring in music was suddenly looking into opening a jazz club. All of a sudden, I saw that a lot of Wharton people were interesting."
Minor problem.. 
//It should read: "...global stock market recovery in 2028.//
Lucifer,
The schadenfreude is everywhere you look.
Can he read entrails?
_______________________
Ask The Experts: How Do I Pick a Financial Planner?
Published: Thursday, 16 Apr 2009 | 2:04 PM ET
By: Bill Losey
On the Money Contributor
My husband and I have made the decision to start working with a financial planner this year. The problem is there are so many to choose from. How do I know who I can trust and who is a good fit for me? -Sally, IL
Sally, the term "financial advisor" is a very broad term so you should begin to narrow your focus by determining what you need – a generalist, or a specialist in areas such as retirement, tax, investments, or estate planning, etc.
Anyone can call themselves a financial planner or financial advisor; at this point there is no minimum experience or education required by law. To protect yourself, I suggest you only work with a person who has attained the CFP or Certified Financial Planner designation, and has a minimum of 5-10 years experience counseling individuals. This credential demonstrates a base level of knowledge, a degree of integrity, adherence to a strict code of ethics, and a continuing education requirement. While there are millions of "financial planners" nationwide only 55,000-60,000 of those individuals have completed the coursework to become a CFP professional. This should be a starting point for you.
Samdog (member) wrote on Sat, 04/18/2009 - 7:33pm.
Lucifer,
It's a typo.
It should read: "...global stock market recovery in 2028."
~~~~
They told me it was in the 5th quarter !
You mean someone still has enough 'finances' to worry about?
html tag strikethrough.
wonder why?
This might have something to do with only a handful being under a million.
Listed under a million. Obviously much, much more belong under a million.
-----
"Hope for the best, prepare for the worst"
Time for bed. G'night folks ....
I think this is a prayer
________________
Friday, 17 Apr 2009
Week Ahead: Market's Gains Could Have Staying Power
Posted By:Patti Domm
The wave of corporate earnings reports in the coming week could wash over the stock market without eroding its recent gains.
That's the view of some traders, who have been waiting for weeks for the rally to show signs of fading and have been surprised stocks have weathered the first battery of earnings reports so well. "Everyone is starting to go short because they're afraid, but the market keeps going up," said Michael O'Hare, head of equities trading at LaBranche Financial.
Barron's link on insider transactions on the last thread
When 90% of the net worth of the insiders are tied up in stock that has gone from 100 to 30, a upward move from 30 to 50 is bound to trigger some selling. I am not sure that the Barron's graph tells us anything ..
Another Prayer
___________
Bloom or bust?
After months of gloom, some say the signs of economic revival are in full bloom. The Globe's Barrie McKenna looks at the numbers and matches them with reality
BARRIE MCKENNA
From Saturday's Globe and Mail
E-mail Barrie McKenna | Read Bio | Latest Columns
April 17, 2009 at 8:38 PM EDT
WASHINGTON - Call them what you will: Glimmers of hope, tentative signs or green shoots. Hints of recovery are beginning to punctuate the pervasive gloom, and fears of economic cataclysm that seemed so real in the depths of winter are receding.
Not long ago, a slew of celebrity economists, including Princeton University's Paul Krugman and New York University's Nouriel Roubini, were predicting global implosion on the scale of the Great Depression. There would be near-total economic meltdown, systemic bank failures, long soup kitchen lines and vast swaths of major cities darkened by foreclosures.
Hold on a minute.
Tentatively, with asterisks next to the caveats, there is a sense that we may now have escaped this worst-case scenario - in Canada, the U.S. and much of the world. Instead of being perched at the edge of the abyss, it now appears unlikely that we're in for a replay of the Dirty Thirties, when the global economy virtually ground to a halt.
WTH is a "financial planner" going to tell you these days? All the CFP gospel isn't worth spit these days.
Everything you need to know can be learned through three sources...
Ramsey -- Take three jobs and live like a pauper
Denninger -- Walk on any debt they can't force you to pay
Mogambo Guru -- Convert every FRN to gold, guns & groceries ASAP
-----
"Hope for the best, prepare for the worst"
From Zero Hedge:
"The biggest financial institution in Florida, $14 billion BankUnited of Coral Gables, was told by its regulator, the Office of Thrift Supervision, to find a buyer who would raise its depleted capital to acceptable levels or risk a government takeover. In an ominously sounding "prompt corrective action directive", the OTS has essentially given the bank a 20 day ultimatum."
http://zerohedge.blogspot.com/2009/04/and-so-it-begins-biggest-florida-b...
I am not sure that the Barron's graph tells us anything
It tells us insiders find FRNs have a better future than stock in their own companies.
-----
"Hope for the best, prepare for the worst"
Exhibit A
Reserve managers keep buying Treasuries …
Posted on Friday, April 17th, 2009
By bsetser
Chinese reserve growth has slowed. Russia's reserves are down in the first quarter (though most of the fall was in January). Saudi foreign assets fell in January and February.
Exhibit B
US doesn't name China a currency manipulator
Posted on Wednesday, April 15th, 2009
By bsetser
This wasn't exactly a surprise, despite Secretary Geithner's comments in January. The US made a large global stimulus - and a larger IMF - its priority in the G20, not exchange rate reform.
Anonymous wrote on Sat, 04/18/2009 - 7:46pm.
Barron's link on insider transactions on the last thread
When 90% of the net worth of the insiders are tied up in stock that has gone from 100 to 30, a upward move from 30 to 50 is bound to trigger some selling. I am not sure that the Barron's graph tells us anything ..
Then go to the "insider cow" link a little further below. Insiders are selling ahead of an S & P 500 earnings season that may be historic.
Im not ready for the recovery story to emerge...
1 week 4 days.
CR, have fun! Break a leg!
Arbeit Macht Frei
_____________
Ensure Your Retirement Bliss by Working Longer: John F. Wasik
Commentary by John F. Wasik
April 13 (Bloomberg) -- Although a troubling number of executives and brokers with bailed-out firms still seem to be on track with an ultra-cushy retirement, yours might be derailed.
Reality-check time: You probably won't be able to retire when you hoped to unless you make a lot more money and save it.
Since your retirement funds are probably ravaged, it's no surprise that you may need to work longer. This is bitter news, though there are some unexpected benefits to retiring later.
Longevity may be on your side. The typical 65-year-old will live to be 83 and one in 10 at that age will live into their 10th decade, the U.S. Social Security Administration says.
Staying in the workforce helps. Several retirement systems across the world, including U.S. Social Security, will boost payments the longer you postpone leaving the workforce.
Instead of being perched at the edge of the abyss, it now appears unlikely that we're in for a replay of the Dirty Thirties, when the global economy virtually ground to a halt.
Lucifer - may I call you Lucy? 
- this guy at least writes as if he understands the dimension of the problems: that we face something that will make the Great Depression look cheery.
If we were only so lucky!
//Instead of being perched at the edge of the abyss, it now appears unlikely that we're in for a replay of the Dirty Thirties//
it now appears unlikely that we're in for a replay of the Dirty Thirties,
Damn when did I lose the ability to read? I thought he said "likely".
BTW, I'll be having dinner with Alex and friends. - CR
Well have a drink at dinner for me CR - about that time I'll probably be in a truckstop or wayside trying to get a few winks somewhere in Indiana or Ohio - heading east. Give them hell for not working harder to 'franchise' it across the NPR universe. Okay? I would be listening to them then if they were.
I'll promise to report back on the 'real economy' on my return.
The debt to GDP ratio in the 30's was half , even after the full blown depression hit,
as it is today ...
"Sell in May, go away." It works in bull and bear markets.
bobn,
This summarizes my view if we do not migrate to to a newer system.
http://dilbert.com/strips/comic/2009-04-16/
Minor detail
"The debt to GDP ratio in the 30's was half , even after the full blown depression hit"
Lucifer (member) wrote on Sat, 04/18/2009 - 8:15pm.
Minor detail
"The debt to GDP ratio in the 30's was half , even after the full blown depression hit"
~~~~
Well ... if you say it's so it must be true ... lol
bobn,
This summarizes my view if we do not migrate to to a newer system.
http://dilbert.com/strips/comic/2009-04-16/
LOL. I know nothing of your wealth, but you certainly have taste.
Has Deleveraging Even Begun? (Not For the Fainthearted)
@ Naked Capitalism
http://www.nakedcapitalism.com/2008/07/has-deleveraging-even-begun-not-f...
"The March 31 (20008) level was 350% of GDP. The previous peak occurred in 1933, during the Great Depression, at just under 270% of GDP. Note that the peak was reached due to the start of the rapid fall in GDP taking hold faster than debts were written off, a dynamic not in operation now. So the comparable level to our situation is in fact lower than the 270% peak.
Comic Relief:
U.K. Pub Owners Face Rising Debt Tab
Pub owners say they can't keep up with cheaper retail beer prices. "The supermarkets are killing trade" in pubs, says Anne Biggs, a former Punch publican, or saloonkeeper, in St. Helens in northwest England.
http://online.wsj.com/article/SB123983548909122725.html
I'll be there. Any chance for a CR meet and greet?
Barron's has a nice SHORTS info.
I'll be in the area, but i am just too lazy to .... There is a nice pizza place down the road
mmckinl,
The real big problems do not concern debt. It is the collapse of banking, trust and jobs as we know it.. We better have a new system ready soon or.. never mind.
CR, the work Alex and Ira Glass and a few others on radio have done to explain what happened, and is happening, is some of the finest reporting I've seen. Please let him know that he has serious admirers of his work inside the financial community. Enjoy the event! Sounds like a blast.
Timmy giving some soothing words to the Japanese.
No worries, mate
The Devil wrote on Sat, 04/18/2009 - 8:36pm.
mmckinl,
The real big problems do not concern debt. It is the collapse of banking, trust and jobs as we know it..
~~~~
Really?
Isn't the reluctance to nationalize banks all about trying to save bond and share holders.
Isn't the reluctance to nationalize banks causing the Zombie Economy we now have ...
The only way we get out of this is to write down massive amounts of debt which of course
means the wealthy take a severe haircut ...
The real big problems do not concern debt.
You're kidding, right?!? It was ALWAYS about debt, the rest of the problems are just the consequences of too much debt. It's the debt that masked the underlying structural problems in our entire economy.
I've always felt like flying to DC, going to Congress, and screaming at the top of my lungs "It's the Debt, Stupid!".
-----
"Hope for the best, prepare for the worst"
:: ::
CR, the work Alex and Ira Glass and a few others on radio have done to explain what happened, and is happening, is some of the finest reporting I've seen. Please let him know that he has serious admirers of his work inside the financial community. Enjoy the event! Sounds like a blast.
:: ::
What he said.
Seriously - CR - tell them what a great job they are doing... and of course you too.
And now we are increasing our debt in order to combat our debt problem.
BTW, I hope Petruno learned a lot from these guys, because he certainly didn't have a clue about any of it himself.
-----
"Hope for the best, prepare for the worst"
And now we are increasing our debt in order to combat our debt problem.
You're drunk? Have another drink!
-----
"Hope for the best, prepare for the worst"
Debt is just a secondary complication of the disease. Think of it as the fever that accompanies pneumonia.. can cause complications by itself. However taking something to reduce the fever (debt) does not cure the underlying infection (a screwed up belief and control system). Reducing the fever at best stops things from getting worser, and makes the patient more comfortable until antibiotics kill the pathogen.
The real disease is that we cannot have our current economic system (based on old concepts) with all the developments of the last 100 years.. nor can we go back.
Unless the living standards of most human beings are raised to a first world level.. this problem cannot be solved.
Unless a poor black african has the same living standard as you soon, you will reach their level or worse
Lucifer
The real disease is that we cannot have our current economic system (based on old concepts) with all the developments of the last 100 years.. nor can we go back.
~~~~
The Solution would be along these lines ...
First we must rationalize all debt ... nationalize the banks ... deal with the fall out in the FIRE sector and Pension Plans.
Second we must print money WITHOUT DEBT. We underwrite this with carbon taxes, Tobin or FTT taxes, and greatly increased income
taxes on the well to do and corporations while imposing a 15- 20% tariff on imports.
To underwrite the poor and middle class we need Medicare for All and monthly stipend checks on the order of $1200 per family ...
We begin to regenerate domestic industry based on the import tax to create jobs ... We lower the work week to 30 hours ...
Current probability for such action .0001%
Unless a poor black african has the same living standard as you soon, you will reach their level or worse
Or, you can choose to push them out of your sandpit.
We lower the work week to 30 hours
HAHAHA... unless you work for the government that won't do much. Small business and "exempt" employees constitute a majority of the well-paying, productive jobs in this country, and they don't give a sh!t about a "standard work week".
-----
"Hope for the best, prepare for the worst"
The biggest source of our current situation is income inequality across countries.. The PTB exploit that arbitage to get rich at the cost of the average person in all countries.
Unless you eliminate that arbitage they will keep on playing this game.
Jobs can only exist if consumers exist.. we will have to pay people to spend..
Taxes are only part of the solution.. taxes can work only if we remove excess arbitrage.
That is correct.. but unless we make sure that everyone on the planet has,at the very least, a lower middle class lifestyle.. irrespective of whether they have a job.. soon nobody will have a job.
"Current probability for such action .0001%"
Either that you will be soon digging your own grave..
"Or, you can choose to push them out of your sandpit."
And now we are increasing our debt in order to combat our debt problem.
We are socializing the debt so that J6P's grandkids can fund the imminent retirement of the bankers and their wealthly, bond-holding friends.
TJ and The Bear (member) wrote on Sat, 04/18/2009 - 9:47pm.
We lower the work week to 30 hours
HAHAHA... unless you work for the government that won't do much. Small business and "exempt" employees constitute a majority of the well-paying, productive jobs in this country, and they don't give a sh!t about a "standard work week".
~~~~~
OK ... we lower it to 25 hours a week ... maybe then they will care ...
"Pay" everyone enough to give them a lower middle class lifestyle.. adjust "pay" according to price changes.
Make sure that this money is not carried over to the next year or invested..
People with jobs get basic amount + whatever their job pays.. They can do anything with the money they earn but they must spend every cent of their "pay".
TJ and The Bear
and they don't give a sh!t about a "standard work week".
~~~~
new rule ...
All salaried employees make say, 40K a year mandatory ...
"Arbeit Macht Frei
_____________
Ensure Your Retirement Bliss by Working Longer:"
Everybody under 50 will get a cheap plastic medal, 30 food stamps and a final solution "red pill" for the retirement. Lucky ones will be just shot when they hit 85.
RedHulk,
The "Logan's Run" environment would appear eminently preferable. Live fast, die young.
-----
"Hope for the best, prepare for the worst"
Actually, Asian "your kids pay your retirement" could come back to western nations. It might be actually good for parenting because if you raise your kids to become "no good lazy punks", there goes your retirement
Actually, Asian "your kids pay your retirement" could come back to western nations.
I think that is inevitable. I expect many retired boomers will live under the same roof with their grandchildren.
--
The Zombie Apocalypse begins when U3 hits 15%
The whole question boils down to wealth ...
What is wealth ...?
How durable is wealth ...?
In what forms can wealth be stored ...?
How much wealth can be saved in aggregate ...?
Google search reveals some articles on Martin Armstrong :
http://www.nytimes.com/2007/02/16/business/16jail.html?_r=1&sq=martin%20...
How Mr. Armstrong has been held for so many years without a trial is a tangled and bizarre tale. Mr. Armstrong, his lawyers say, has been stuck in a surreal situation in which criminal prosecutors have never had to prove their 24-count indictment at trial while the civil case tied him up. Nevertheless, they have gotten their desired result - a lengthy prison term for Mr. Armstrong.
http://www.topix.com/forum/business/TS8IHELKS6G8FDV65
Articles by Martin :
http://www.scribd.com/kzuur58
http://www.scribd.com/doc/3932687/The-Greatest-Bull-Market-In-History-Ma...
Very Insightful at the very least.
I'm also a regular PM listener, and they're doing an excellent job. I'd love to hear what Adam's & Alex's personal take is on the bailout. So far, they've managed to remain professional, but from all the insiders they talk to, they've got to hear a lot of behind the scenes scuttlebutt. For example, I'd love to know to what level Obama himself is involved in the treasury planning...
------------------
sacrealstats
The original episode of This American Life - "The Giant Pool of Money" - was beyond educational. I had been reading Calculated Risk a bit by that point, but my knowledge of the global economic crisis and its root causes was deeply enhanced by their piece. Basically, their thesis is that cheap credit and free-flowing money (I'm looking at you, Greenspan) in the beginning of the decade created all this "wealth" worldwide. And that money had to be put somewhere, people needed to find a place to invest it. So they kept chasing asset after asset - real estate became the big one.
OT--another sign of the times-- This week, San Jose (the 10th largest city in the U.S.) cancelled their annual 4th of july celebration and fireworks dsiplay due to lack of funds.
Dave in SV
Hmmmm, seems like the commenting system is acting up. Ken, are you tweaking it now?
Recognizing this isn't a GM thread, two interesting compare and contrast articles from Bloomberg -
'Spring has come to Stuttgart. Cafes are full and young people walk arm in arm through the city's crowded pedestrian malls. The central train station is spotless as are the city's parks. Germany's Motown is clearly no Detroit.' (It sure isn't - the TGV and the ICE both stop at that train station, but on the other hand, most Germans consider Stuttgart to be appallingly provincial and soul deadeningly ugly, so there might be some comparisons still to be made.) Ooops - this was the comparison part -
'Merkel's Car Laws
The government also intervenes in the marketplace in ways that help the environment, foster innovation and influence the design and sale of cars. Most recently, Chancellor Angela Merkel's coalition government agreed to triple funds available for payments to buyers of new low-emission vehicles who scrap their old cars.
Under the plan, drivers can claim a 2,500 euro subsidy when trading in a car that is at least nine years old, provided the new car meets stringent anti-pollution standards. The government says it expects 2 million purchasers to apply for subsidies, costing it 5 billion euros this year.
Since the program provides a flat subsidy regardless of the new car's price, it favors makers of smaller, cheaper vehicles, many of them imports, at the expense of BMW, Audi and Mercedes. But it does get cheaper, more fuel-efficient cars on the road.
If the laws overseeing auto manufacturing in the U.S. seem burdensome, they are minor compared with those governing German automakers, who are on the hook even when their cars are scrapped. Germany's "End-of-Life Vehicle Act" requires auto manufacturers and importers to collect worn-out cars and to make sure that stringent recycling targets are met. These recycling requirements influence the DNA of car design, affecting decisions as fundamental as what materials to use and how parts are installed and removed.'
http://www.bloomberg.com/apps/news?pid=20601039&sid=aZ93JIvKP.i8&refer=home
And now the somewhat less coherent contrast -
'U.S. lawmakers may let cars made overseas qualify for a proposed "cash-for-clunkers" program in a bid to secure passage of the measure, designed to help revive domestic auto sales at a 27-year low.
An option under consideration would distribute subsidies to new-car buyers based on manufacturers' U.S. market share, said Representative Edward Markey, who crafted the idea. The approach may overcome objections that an original plan subsidizes North American-made products only.
--------------------------------------------------
Consumers would get vouchers worth as much as $5,000 for trading in models from 2001 or earlier for a new vehicle, under the legislation Sutton proposed March 17. The program may spur sales by more than the 21 percent increase witnessed in Germany in February while improving the environment, Sutton has said.
--------------------------------------------------
"We hope it's crafted in such a way that all manufacturers can participate," Stanton said. "We would hope that at the end of the day a consumer could be able to use the incentive to purchase the vehicle that he or she wants."'
http://www.bloomberg.com/apps/news?pid=20601109&sid=aRH4Ec_ZRtsU&refer=home
Note the major differences in approach - the German plan accepts that many imports will be bought (the French are extremely good at making efficient small cars, even if their profit margin is generally miniscule), while the American plans started from a point of simply subsidizing the American auto industry. Further, the German plan is not interested in helping a car buyer purchase the car they 'want' - instead, an eligible car purchase has to meet the very latest standards for emissions, efficiency, and recycling. In other words, as is often the case in German industrial policy (for lack of a better word), industry is pushed to stay at the forefront of the marketplace, providing products that meet standards which are not easily mass produced by a lower cost competitor (the VW diesels are a good example). Further, reducing emissions and fuel consumption is considered a self-evident public good - basically no one in Germany debates the value of clean air, or the desirability of importing less oil.
But the American program eschews simplicity in favor of spreading government money around proportionately to support the status quo (forget the idea that an American car built in 2009 is significantly more efficient or less polluting - the Bush Administration was able to fend off virtually all such regulatory burdens), and is a fairly straightforward subsidy to the car industry. It doesn't even pretend to impose any sense of purpose in creating a market for vehicles which are likely to be in higher demand in the future. The world is unlikely to be interested in buying giant fuel hogs, after all. (Radio reported anecdote - Obama's current GM provided state vehicle was too large to drive in Baden-Baden - he needed to use another one. Baden-Baden is not a place where it is rare to find the more than occasional Rolls tooling around, either.)
Even more interesting, the German plan is broadly considered to be tax/revenue neutral. The VAT on the new car, many of which would not have been purchased without the incentive, tends to equal the incentive. The American plan is a simple handout, not that I would expect it to be so described, even by the majority of posters here - being that a likely number of posters here would likely find a $5,000 subsidy something they would take advantage of, regardless of their principled stand against handouts for others.
......that sounds fine for Germany I guess. Point out to me where something like that is even hinted at in The Constitution....
- - - - -
Black 
Ranch
'Point out to me where something like that is even hinted at in The Constitution.'
Excuse me? Where is your local DMV found in the Constitution? For that matter, where are automobiles found in the Constitution?
The German program is basically being run out of the German equivalent of the DMV.
However, this may help - Article I, section 8 of the U. S. Constitution grants Congress the power to "lay and collect Taxes, Duties, Imposts, and Excises, to pay the Debts and provide for the common defense and general Welfare of the United States." I would think that 'general Welfare' covers the broad outlines well enough, the same way Congress can mandate safety and pollution regulations related to the production and use of a variety of goods, not simply automobiles. Or we could dive into the mire of the commerce clause, but for now, 'general Welfare' would seem a solid starting place for congressional authority.
(Radio reported anecdote - Obama's current GM provided state vehicle was too large to drive in Baden-Baden - he needed to use another one. Baden-Baden is not a place where it is rare to find the more than occasional Rolls tooling around, either.)
That is more of an armored personnel carrier than a car.
I listened to a Planet Money bit on NPR. The story was about global trade with a specific example of a company having a business slow down and deciding to send ships around Africa rather than pay the fees of the Suez canal. Some of the links between the wide-ranging players and impacts analyzed in the story were tenuous, but the girl reading it sounded attractive. Please post pix.
Less the a 60 hr work week is part time!
'hat is more of an armored personnel carrier than a car. '
Absolutely, though I wouldn't have quite phrased it that way. What struck me is that apparently no one thought about its size ahead of time, just assuming that it would be possible to drive it.
The other thing that struck me is just how interesting a metaphor it is - from an American perspective, Baden-Baden is simply not built to American standards. But these days, not too many people are all that interested in American perspectives or standards, as their own are perfectly serviceable, or at least better fitted to their lives than what Americans think is correct or proper.
The Washington Consensus is finally collapsing into history's dustbin because Washington refuses to play by the rules that it forced others to follow.
"To underwrite the poor and middle class we need Medicare for All and monthly stipend checks on the order of $1200 per family ..."
Don't forget the circuses. That would mean cable and a TV set are perquisites granted with citizenship.
Pavel Chichikov
American charity is 90% enabling and 10% help. Our local new government apartments have washer, dryer, cable TV and landscape maintenance. Pretty good living with no incentive to move up.
CR writes: "Note: I will be at this event tomorrow night."
At: as in nearby, in the general close proximity?
At as in seated, within the audience?
At as in perched rooftop thereby not interfering with any GPS or other satellite transmissions?
At as in lurking in the shadows?
At as in a part of the program, scheduled participant?
A bit of specificity needed?
BSR would agree. He also would correctly point out that there is nothing within our Constitution concerning this. The Constitution is silent on this matter.
CR does this mean you are going to finally break your radio and TV silence? I know you are not big on personal publisity, but your voice is an important one on these issues. You are more quailified to speak than 99,99% of all people we hear on air (and I woiuld include myself in the 99.99% on those occasions I am on the air). This would be a very welcome development.
RE: the traveling circus referred to more often as the President's 'entourage'.
Who would want to take on a job where you need armored car security 24/7, such that the so called limo provided cannot navigate European roads. A fucking battalion sized armored column where ever you go.
If it were me, I'd have a few guys named Vito, Tony, another guy named Tony and a scary one named Rocco. They could hire their nephews and a cousin and that's it. That's all I'd need. And their wives, named Shelly and Angie could watch out for the missus and the kids. Although I sold my kids before they were weaned--better price then, especially if they have blue eyes.
I was in the local branch of BankU 6-9 months ago and the Manager and others said not to worry, they were going to be sold to venture capitalists. I said a lot of other entities wanted the same thing--but good luck for them.
lawyerliz--finance the REOs.
Liz, a customer of mine is a courier here in Panama City. The bulk of his work was running mortgage paperwork from here to Peoples First HQ in Tallahassee. He said at the main branch in Tallahassee all the tellers have been let go and that managers are now acting as tellers. They already have a cease and desist order from OTS....He also said he used to carry boxes and boxes of mortgages back in the boom, now barely anything. After his conversations with me, he now looks at the parking lot on Friday afternoons to check for pizza delivery people...haha
Managers acting as tellers? That should work out well.
Yesterday we went to family day at NASA.
We were allowed to walk through the VAB. Before I was only in a corner inside once.
Saw the Aries (Ares?) rocket pieces up close.
The inside of the VAB reminds me of a gothic cathedral, as to light and space. A very ugly, very grey gothic cathedral. Also similarities of expense and national purpose.
We went out to see the wind profiler, which is the hub's pet project and is about 3 acres of pipes and wires stuck in the ground in the middle of nowhere. He fully expected that a guard would accost us, but nobody did. There were some tank like objects on a railroad spur 4 or them. Which said on the side, in large letters, "NO HUMPING".
Well I guess that told me.
I wonder what that means in that context. Trying to connect by bumping together???
lawyerliz--finance the REOs.
12 hours without a new post? Wow. I'm glad CR actually has a life and went off somewhere and did something. Makes for a duller blog, but the man needs a break!
testing on firefox
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I guess he just couldn't stay away!
CR have fun -- can you lobby for an episode on stress testing?
That chart is amazing, it looks as if we have a chance for a real capitulation starting in May with a nice entry position to finally go long.
Or the end of the world.
Are they're money trees on planet money. I heard that in California a lot of homes came with money trees ....
Lucifer (member) wrote on Sat, 04/18/2009 - 9:33pm.
Unless a poor black african has the same living standard as you soon, you will reach their level or worse
Well said.
It is amusing that this event is being held at the Broad Stage. Eli Broad was the found of what is now KB Home, and also SunAmerica (now part of AIG).
BTW, I'll be having dinner with Alex and friends.
best to all.
Calculated Risk