It sure is. We owe over $500 BILLION to the Treasury, including our current interest debt as it is. They're going to have to make a new chart soon, as we'll be topping over TEN TRILLION all told if this stupid bailout goes through.
Posted on 09/25/2008 1:07:23 AM PDT by FocusNexus
Former General Electric Co Chairman and Chief Executive Officer Jack Welch said the U.S. economy faces a deep downturn in coming quarters, and he supports a proposed $700 billion government rescue package for the financial sector.
"I now believe we are in for one hell of a deep downturn," Welch told the World Business Forum in New York on Wednesday, adding that the first quarter of 2009 will likely be "brutal."
Until recently, Welch said, he had believed the U.S. economy could avoid recession, but he has changed his mind.
"I am now caving," he said. "Get ready for real tough times. They're coming. There is no credit available."
Welch said he supports Republican Presidential nominee John McCain and said he would work for $1 per year on a McCain task force to help the economy if asked to do so. He said McCain's policies would be more likely to create jobs than those of Democratic nominee Barack Obama, in part because Obama is overly beholden to labor unions.
(Excerpt) Read more at reuters.com ...
I'm going crazy over here. The world has turned strange.
Can somebody please tell me how this retired, intelligent CEO of a huge corporation can be so blatantly wrong thinking that the $700 billion dollar pump will fix anything in the short term?
The immediate problem that needs fixing (and I don't see how it can be done) is all of the CDS bets that were made on bond insurance, where the bonds are backed by securities such as mortgage, credit card, and auto loans.
All that this money could be used for is to buy securities BEFORE they're sold to the bond market. That's fine for the future, but will do absolutely nothing for the present.
These guys are rearranging the deck chairs on the Titanic.
Somebody please tell me what I'm missing...
Ergo, we are in for even rougher times than we now face and we can take that to the bank.
Oh, that's right banks won't know what to do either!
The house of CarDS must come down. It will come down whether we want it to or not, and as long as it's up it will drain the economy.
Crashing the house of CarDS will cause a massive devaluation of many assets, but the market is far more tolerant of losses than question marks. Better to have an asset that's known to be worth $0.10 on the dollar than one which may be worth $0.25 on the dollar or maybe $0.0025, but whose value nobody knows.
The search function is not working.
Could it be that he is more knowledgeable on the subject than you are?
Nancy Pelosi and Harry Reid support the bailout as well. Would you like to put them up on a pedestal?
Perhaps what we are missing is the “networking” which might exist between people like Jack Welch and the perps of this disaster. CEOs of large corporations often are credited with economic understand and attributes which they do not possess. Frequently they came by their jobs through being in the right place at the right time. My husband had a corporate job for 32 years and I have seen this happen. I believe when governments, institutions, communities, schools, churches, families...You name it, grow too large, it becomes impossible to for the right hand to even comprehend what the left hand is doing. Everything reels out of control which paves the way for some kind of disaster. Wrongdoing can be well covered in chaotic situations. During times like these we should stick with our principles and not change our system to reflect out and out socialism which has never produced anything but hardship for the masses.
Isn’t Imelt the hand picked successor chosen by Welch?
This bailout is for the 16 'primary dealers' including Goldman Sachs who broker Treasury bonds. If these dealers are not saved, then the US govt is at risk of shutting down due to inability to fund the deficit.
It is time for an accounting.
Well, they attempt to manage the "crisis" after they create it. What usually happens is the mangle the "crisis" they've created. The conditions set forth for this entire episode were created by Congress, not Wall Street. From the financial situation to oil prices to the low dollar, all of it was created either by action or inaction of our Congress. Now, somehow we're supposed to believe that these genius' are the ones that will guide us out of their mess?
The really sad part about all of this is 95% of the poli-turds who are responsible for this mess will be re-elected.....
"pump"? It's buying 700 billion worth of high risk credit debt, freeing up cash flow. We just have to make sure the government collects that debt. The problem I see with this bail out is making sure we know who owes all this debt so it can be collected. Otherwize I'd say forget it as well. let the economy crash.
I was leaning towards retiring anyways. What better time to close a business?
It's a do-able thing. My wife used to work for a firm who's exclusive business was providing this service to investment banks.
I'm not saying it's a piece of cake here,but it's not (as countless MSM dimwits have said lately) impossible.
Thats why they paid him the big bucks. We never would have known something like that.
It sure is. We owe over $500 BILLION to the Treasury, including our current interest debt as it is. They're going to have to make a new chart soon, as we'll be topping over TEN TRILLION all told if this stupid bailout goes through.
Well put. I might be able to stomach this Corporate Socialism if there was some blood of the politicians and their cronies appointed to Fannie and Fred laying on the floor before it was all done, but we both know that isn’t going to happen.
Well aren’t we just the little hall monitor?
No, it certainly won't, but isn't it interesting that everybody is all wound up on throwing money at the problem and not one single congresscritter I've heard has called for a complete and transparent accounting of Fannie and Freddie to see who is culpable for all of this. I think the reason why is because the audit would point straight back to Congress and particularly Barney Fwrank, "Chuck You" Schumer and Chris "gimme yo' money" Dodd.....
Most definitely.
It could also be that he is blind to the reality that is before him, just like all of those other smart people in the investment banks that just came crashing down.
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