20 November 2008, 3:28 am
About six months ago, when the we were hearing the first rumblings of the sub prime crisis spreading into related sectors of the economy, Congress was investigating steroid use in major league baseball. Now Congress is taking testimony on a proposed auto bail out when they've already approved 30 billion outside of the additional 25 billion now requested . . . so a "term" modification of the original loan would hold the company for an estimated five to six months based on current losses of about 6 billion a month. But here's why Congress is once again doing the most MORONIC thing possible at the most MORONIC time possible . . . Because no less than five major retailers are expected to file bankruptcy at the beginning of the New Year . . . due to banks calling in lines of credit. It's expected that the banks are waiting until AFTER the Christmas season to call in loans and then will all spring simultaneously if not in collusion. Let me spell this out for you . . . it is expected that major retailers will have not just one but all of their loans called after Christmas. The banks are only allowing retail to survive through the holiday season so that the retailers have the money when the banks call . . . Billions of dollars will be lost . . . hundreds of thousands of jobs . . . from the sales clerk to the manufacturer . . . gone in January. Retail, when compared to the automotive industry, is the bigger fish . . . so why is Congress acting on this before hand? Since most of the banks have taken a bite of the tax subsidized apple via various lending schemes . . . shouldn't Congress PREVENT these banks from doing this? All opinions welcome . . . there's not a right or wrong answer but I would love to know what you think . . . Thanks. http://online.wsj.com/article/SB122714438806843117.html... Read More »
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