May Not Survive 2009

[Ron61]

A list of companies that they say may not survive 2009. Also on a more positive note, I saw that GM may be about to buy Delphi back or at least a major part of it. Nothing official yet.

http://finance.yahoo.com/news/15-Com...-14279875.html

Ron

[95CobraR]

I'd say that a few of those companies may go into bankruptcy, and their stockholders and unsecured creditors will lose their money.

However, most of those companies will re-organize (secured bondholders will own the equity) and continue to operate successfully. It's just the way capitalism works. All of those companies have one similar problem: Too much debt on their balance sheets.

[FWB]

at the current rate of spending i would be surprised if the U.S. economy survives 2009.

[95CobraR]

Originally Posted by FWB

at the current rate of spending i would be surprised if the U.S. economy survives 2009.

I agree. It isn't so much that I disagree with some government spending that is targeted at real stimulus programs (which I've seen little of), but the current H.R. 1 program is just a waste of our money.

The Stimulus Tragedy
Obama bets that we can spend our way to

President Obama has started to play the "catastrophe" card to sell his economic stimulus plan, using yesterday's terrible January jobs report to predict doom unless Congress acts. No doubt he'll get his way, but the tragedy of this first great effort of the Obama Presidency is what a lost opportunity it is.

Everyone agrees that some kind of fiscal stimulus might help the economy, and that running budget deficits is appropriate in a recession. The stage was thus set for the popular President to forge a bipartisan consensus that combined ideas from both parties. A major cut in the corporate tax favored by Republicans could have been added to Democratic public works spending for a quick political triumph that might have done at least some economic good.

Instead, Mr. Obama chose to let House Democrats write the bill, and they did what comes naturally: They cleaned out their intellectual cupboards and wrote a bill that is 90% social policy, and 10% economic policy. (See here for a case study.) It is designed to support incomes with transfer payments, rather than grow incomes through job creation.

http://online.wsj.com/article/SB123396623933859023.html

The 90% is wasteful. The 10% needs to be expanded to allow business owners to increase their economic power in order to grow jobs and real economic GDP.

I am not worried. I am currently trying to figure out how to cheat on my taxes. I think that will qualify me for a Cabinet position, and I then will invite every member of Club Cobra to Washington for a real demonstration.

[wtm442]

Let em fold. Its only capitalism. I do not like today's socialism.

Of course, if the company I worked for 33 years was about to go belly up and my monthly retirement check would vanish ... OMG ... I'd be in Washington with my Bailout "xxxxx" Company Now.