Mercury Rising 鳯女

Politics, life, and other things that matter

Archive for October 3rd, 2008

Let the bad times roll

Posted by Charles II on October 3, 2008

Via Calculated Risk, this from Rex Nutting of Marketwatch:

The U.S. recession will be “significantly deeper” than they previously thought, Goldman Sachs economists predicted Friday in a research note. The economy will probably show no growth at all between the middle of 2008 and the middle of 2009, with gross domestic product falling 2% this quarter and 1% next, they said. Two other quarters will show 0% GDP growth. The unemployment rate will likely rise to 8% by the end of next year from 6.1% currently.

The analyst is Hatzius, who I’ve always found dourly realistic.

I take this that prediction is for a moderately severe recession, not as bad as Reagan’s, but worse than Herbert Walker Bush’s. Of course, this piece doesn’t say that things when things start getting better.

Roubini is a little more graphic. Quoting a “senior market practitioner”:

Situation Report: So far as I can tell by working the telephones this morning:

  • LIBOR bid only, no offer.
  • Commercial paper market shut down, little trading and no issuance.
  • Corporations have no access to long or short term credit markets — hence they face massive rollover problems.
  • Brokers are increasingly not dealing with each other.
  • Even the inter-bank market is ceasing [seizing] up.
  • This cannot continue for more than a few days. This is the economic equivalent to cardiac arrest.

    Posted in economy | 2 Comments »

    Just an average hawkie Mawm, my Aunt Fannie/Final

    Posted by Charles II on October 3, 2008

    Sarah Palin. What a liar. In the debate, she said ” In the middle class of America which is where Todd and I have been all of our lives, that’s [paying taxes is] not patriotic.”

    Leonard Doyle, The London Independent:

    On the campaign trail [and in the debate], Sarah Palin has complained of struggling to pay the bills and this week described herself as “an everyday, working-class American” who knows how it feels when the stock market takes a hit.

    But the Palin family income reached comfortably into six figures in her 2007 declaration, capitalising on valuable salmon fishing rights and a series of property deals. Her governor’s salary brought in $125,000 (£71,000), while her husband Todd earned almost $100,000 from his part-time job at BP, combined with income from commercial fishing. The couple appeared to be worth at least $1.2m, including a $500,000 lakefront home, a Piper float-plane and two holiday getaways.

    A MILLION DOLLAR NET WORTH IS MIDDLE CLASS?

    AN INCOME OF $250,000 IS MIDDLE CLASS?

    And yet she tells these lies so easily.

    The transcript is here

    FactCheck’s toothless fact-checking is here. FactCheck focuses on things that come down to the arcana of how the Senate works and anything that has a number attached to it, but misses the more important places where politicians are trying to disinform voters. As Media Matters points out (via Atrios), FactCheck even manages to get a key fact wrong: John McCain did vote against troop funding. The vote is Roll Call 126 on SR 1591.

    Here are what I would consider Palin’s major misleads:
    Read the rest of this entry »

    Posted in liars, Sarah Palin | 2 Comments »

    Government of world’s fifth largest economy nears bankruptcy

    Posted by Charles II on October 3, 2008

    Dow Jones:

    California Gov. Arnold Schwarzenegger warned U.S. Treasury Secretary Henry Paulson in a letter emailed Thursday that the state might need an emergency federal loan of up to $7 billion within weeks, the Los Angeles Times reported Friday, citing a copy of the letter that the newspaper obtained.

    California, among several states frozen out of the bond market by the credit crunch, is nearly out of cash to fund day-to-day government operations and can’t access routine short-term loans it relies on to remain solvent.

    Getting rid of Gray Davis was such a smart thing to do.

    Posted in mortgage crisis, Republicans acting badly | 1 Comment »

    Friday Cat Blogging

    Posted by MEC on October 3, 2008

    Alex says, “PLZ IT CAN BE ELEKSHUN IZ OVR KTHXBYE.”

    Posted in Alexander the Great, Friday Cat Blogging | 1 Comment »

     
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