As I’ve been telling you for nearly a month, General Motors is going to be out of cash by the end of this year, mere days from now. If that happens, they won’t be able to write checks to their employees, suppliers, dealers, or bondholders. They’ll have opened a path that leads to a forced liquidation of their business. What part of “out of cash” don’t | Read More »
The news background is relatively benign this morning. Stock markets in Asia and Europe are stronger, after five days of relentless and at times violent selling. Credit markets are just as dysfunctional as ever, but not much worse. There are several things to watch over the next several days: corporate earnings, global countermeasures to the crisis, and further aggressive actions by the Fed and Treasury. | Read More »
Yesterday’s somewhat anticlimactic news from Capitol Hill was that the Senate passed a new (and disgustingly pork-laden) version of the Paulson rescue proposal. Asian stock markets fell on the news, although overnight-dollar interest rates also fell somewhat. The action moves back to the House of Representatives, which is expected to vote on the new draft on Friday. In failing to pass the previous version the | Read More »
I’m going to get into three things with you this morning. First, I’d like to address the issues raised by many respected people, in regard to the suppression of private interests by an agency of government. To do this, I’m going to fill in some of the history of Fannie and Freddie. Second, I’ll give more detail on the exact terms of the Treasury takeover | Read More »
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