Look who is next ask for Obama bail out??!

6/2/09

Not surprisingly, look who will be next for Obama bail out? It is the state of California. Read the following:

""Declaring that "California's day of reckoning is here," Gov. Arnold Schwarzenegger said today the state should turn its dire budget straits into an opportunity to make government more efficient.

Speaking to a relatively unusual joint session of the Legislature and other constitutional officers, Schwarzenegger acknowledged the billions of dollars in spending cuts he has proposed to close a $24.3 billion hole in the budget will be devastating to millions of Californians.

"People come up to me all the time, pleading 'governor, please don't cut my program,'" he said. "They tell me how the cuts will affect them and their loved ones. I see the pain in their eyes and hear the fear in their voice. It's an awful feeling. But we have no choice.

"Our wallet is empty. Our bank is closed. Our credit is dried up."

The short-term problem faced by lawmakers is closing the budget gap in time for state officials to go the private investment markets and borrow billions of dollars to get the state through the first months of the fiscal year that starts July 1.

State Controller John Chiang has warned that without such loans, the state's coffers will run dry by the end of July. Chiang said last week that as a practical matter, the budget must be patched up by mid-June in order to give officials time to borrow the money.

To do that, Schwarzenegger has proposed a plan that relies partially on accounting maneuvers and borrowing funds from coming fiscal years, but mainly on deep cuts in nearly every program funded by state government.

Those range from cutting spending on K-12 schools, community colleges, the University of California; releasing some non-violent prisoners a year early; closing 80 percent of the state's parks, and wiping out or paring back on health and social service programs for California's neediest residents. ""

My comments: Are you all ready Mr. President will be the superman again to waste our money to bail out state of California very soon. Whats your bet? I see he will very soon. In term of production measured by territory GDP. Aside state of California's GDP is ranked #5 in whole global world. Yes, you are right. It is even bigger than India, England, France,...whatever countris you can think of. It is another gaint blackhole that our government is going to dump US$$$ away. WTF, WTF......Are we insane??! I am not but white house people do not care. Good luck to everyone especially people living in Sunshine State California. Have you recently enjoy any fruits from CA??!

Now, its official!! Welcome to "Government Motor"

6/1/09

As everyone expected, General Motor is now officially become "Government Motor". Our government love to own every piece of our living. Indeed, after mortgage gaints, FRE & FNM, insurance leader, AIG, banks like C and BAC, now the GM. What else do we expect our government go to bail out more? We are keep printing more and more $$ to save those garbage companies that should be liquidated. However, it does create very damn good excuse for polictians and companies directors to draw our taxpayers money into their huge piggy bank. Do you expect auto sales will rebounce coming months and years?! Even Toyota has trouble to foresee future. How could GM can reply over$50 billion money back to us?! If so, in 5 years. I do not believe this shit. WTF, another gaint black hole to waste our $$$. I am very pissed off by this non-sense but I cannot do anything rather express my feeling here. Good luck to America and good luck to us. I do not see bright future anymore as our government drawing the deficit higher and higher to no end land. Another Trillion here and there.

Oh? Do Fed need to double down now?

5/27/09

The Fed has been buying US Treasury because they want the mortgage rate keep floating below 5%. However, the above chart is clearly showing that Treasury is trading against what Fed wishes. Fed has failed?! It would be little early to say so right now. But some economists have predict this will not work. I would say so it does not work because the chart is showing what is going on. Doom to US. Forget to say, GM is going to bankrupt. Also, California is asking US government bail out with its debt of over $41 Billions. Well, if our WTF administration going to bail out California, you all will expect more states, cities.....will ask for the same package. WTF, keep print print print.....US$$. There is no end our national debt for sure.

Look who waste our taxpayer money !!!

5/23/09

The Administration is starting to face some resistance in Congress about its plan to put GM (GM) into Chapter 11 using Treasury money to sustain the company as it works it way back to profitability. The government put another $4 billion into the car company yesterday. In the process of a government supported bankruptcy, $27 billion in bondholder capital will probably become worthless, GM workers will be laid off, and hundreds of dealers will be closed.

Fundamentally, taxpayer money will be used to restructure GM in such a way that thousands of taxpayers will lose their jobs.

According to the FT, “hopes that GM can follow a similarly rapid path through court are being dimmed by a building backlash from lawmakers, some of whom are claiming that creditors’ rights are being given short shrift while others complain about job cuts and the closure of dealerships.”

The argument by Congressmen who are opposed to the process may get some “traction”. Blue collar workers around the country should be enraged by seeing their peers being thrown out of jobs with support from the Treasury. Local towns and cities will have to support workers at dealerships that close. Financial firms will have to ask themselves if their rights could ever be undermined by a process driven by the financial might of the American government.

Of course the entire GM restructuring process will raise national unemployment.

As the pockets of resistance grow, GM may not has as easy a path through a bankruptcy court has Chrysler has had.

My comment: WTF our government doing??! Another $4 Billion. Another ?Billion there..maybe Trillion...Damn. I know America is going to be broke for sure. We are doomed 100%.

Truth about Option ARM !!

5/20/09

U.S.

Alt-A active: $469 billion

When we talk about the $500 billion in Alt-A mortgages this is what we are talking about. Last time I checked $469 billion does not mean the problem has gone away. Businessweek came out with a chart only last month showing how Pay Option ARMs will be recasting over the next few years: See above Chart

I’ve added a reference point for all those people who seem to think that Option ARMs and Alt-A loans have somehow disappeared from the market. The game is just starting. Currently, we are seeing less than $2 billion per month of these loans recasting. However, in 2010 we are going to start seeing $8 to $10 billion per month recast, nearly 5 times the current rate. The chart states “months to 1^st reset” but they are referring to recasts brought on by negative amortization. And as you will see, since the majority of these loans are in California the bulk are underwater Jacque Cousteau style.

The above I reprint from other blogger. Folks, the real game is just started. I am expecting more foreclosure coming for whole country with no end in sight. And I do not see our stock market would doing any good later part of year.

Bulls Trap again??

5/18/09

What do we have today? Another gap up Bulls trading day again. However, it will pullback tomorrow morning hours. The intermediate term high has been reached and I remain bearish. Is this another bulls trap?! These days there are too many bad news going on and I have been very very disappointed about our government action. Good luck.