Monday, June 1, was the end of an era for the American automotive industry. As nearly everyone not living in the jungles of Borneo knows by now, once-mighty General Motors, the flagship corporation of American automobile manufacturing and one of the most potent symbols worldwide of American industrial might, slid into Chapter 11 bankruptcy after the Great Recession dealt the long-foundering giant the coup de grace. In what is being billed as the fourth-largest bankruptcy in American history and the largest ever for an industrial manufacturer, GM claims $82.29 billion in assets against almost $173 billion in debt — this, be it duly noted, after billions in federal government bailout monies have been shoveled GM’s way.
The Securities and Exchange Commission (SEC) made public on April 8 several alternative plans under consideration for regulating the activities of short sellers. Short selling, the inverse of purchasing stock shares in the hope that share prices will rise, consists of borrowing shares, selling them, and then repurchasing them at a later date and returning them to their owner. Short selling is undertaken when a stock is expected to decline in value; a short seller who borrows a thousand dollars worth of stock, sells them, and then repurchases them and returns them to their owner when the stock's value has declined to $500, pockets a profit of $500.00.
“Is Barack Obama More Pro-Business Than Ron Paul?” led the headline on the popular blog at LewRockwell.com. “Yes,” Rockwell sarcastically answered his own question in a concise one-liner, “according to the Beltway's National Chamber of Commerce, which measures willingness to build the corporate state.”
Chinese Premier Wen Jiabao’s remark that he was “worried” about the $1 trillion in U.S. debt he was holding caused such a chill down the spine of world financial analysts that even the White House felt forced to respond immediately. “There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs shot back that same day.
Down, down, down goes the Dow (and all the other stock indexes), and how much further the markets are likely to fall before the recession bottoms out is becoming an increasingly vexed question. The Dow is now well below 7,000 for the first time in 12 years, and bearish market analysts are now wondering: is Dow 5,000 a reasonable expectation? 4,000? Or lower still?
On Tuesday, February 18, President Barack Obama achieved one of his first major goals in office by making his $787 billion stimulus plan a reality. TheWashington Post reported: "President Barack Obama ... signed into law a plan meant to create jobs, encourage people to spend money and in general feel better about the economy." Is it the economy Obama wants the people to feel better about or is it the president himself?
In a December 23 communication sent to the American Civil Liberties Union's benefactors, administration and finance director Alma Montclair reported that the organization will not receive the sum of $850,000 from two foundations whose contributions were counted on to continue the group's work. The unnamed donors, she stated, have been "forced to close their doors and terminate their grants" because they "have been victimized by the Madoff scandal."
The enactment of the now-notorious $700 billion bailout package did not stop the downward slide of the stock market, as its proponents had promised. Recall that when the stock market took a steep drop on the day the House rejected the first bailout bill, hysteria-mongers on Capitol Hill and in the news media warned that that steep decline was a harbinger of things to come unless a bailout was passed, and quickly.
Following a roller coaster day on Wall Street that saw the Dow close under 10,000 for the first time in years, the Federal Reserve has announced that it will invoke emergency powers under which it will buy billions in commercial paper — short-term debt instruments — in order to provide credit to companies other than those in the financial sector that have been stung by the collapse of the credit market.
The recent precipitous climb in global food prices is nothing less than “mass murder,” according to UN food envoy Jean Ziegler. In a recent interview with an Austrian newspaper, Ziegler, commenting on the climb in commodities prices that have triggered food riots in Haiti and growing lines from Latin America to Africa to Asia of hungry people seeking UN food handouts, suggested that the food shortages are a consequence of globalization.