US Speeding Towards Financial Crash:Two related stories signaled investors today to push the dollar lower in overseas trading last night. First, former GAO chief David Walker notes a bond warning from Moody's that US Treasury bonds may lose their top rating — and that could cost us dearly.
Obama Grants SEIU Wish at Expense of California: This is not the first time such heavy-handed aggression has been displayed by Obama enforcers on behalf of union allies. To the Chrysler bondholders who refused a staggering 70 percent loss on their investment, the Obama administration resorted to a strategy of threats and coercion in an attempt to secure their compliance, as ALG News reported earlier this month. The United Auto Workers (UAW) union was the clear recipient of the "deal," being handed 55 percent of company stock.
Fannie Mae is Losing More Money:Yes, I know. It's hard to believe. Fannie Mae continues to lose money and, even more surprisingly, isn't likely to ever pay taxpayers back for all of the billions that it already has squandered. Rather, it says it will need more bail-out funds — probably another $110 billion this year alone.
Feds are Broke But Keep Right on Spending: There is a cleverly constructed sentence in the AP report about the 2009 budget deficit being $89 billion higher than expected, which will raise the projected annual deficit to $1.8 trillion, or nearly four times as much as the previous record. Here's how AP explained it: "The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama's economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in (emphasis added)." In sports journalism, such a sentence is called covering for the home team, which in this case includes the present and previous White House occupants and the present majority in Congress.
Be sure to follow us on Twitter!