Newspaper logo  
 
 
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

09.21 Greed is killing Alaska's salmon habitat – but we can still save it

09.21 Trump administration poses new threat to birds in allowing ‘incidental’ killings

09.20 Al Gore Is Still Optimistic [24:06 video; rather than future Frankenstein governments, how can we better ensure having brilliantly efficient & competent governments?]

09.20 The $11 trillion question Chris Cillizza can't answer

09.20 Florence sparks pollution fears after excrement-filled 'hog lagoons' overflow

09.20 EU must end new petrol and diesel car sales by 2030 to meet climate targets – report

09.19 Air pollution linked to much greater risk of dementia

09.19 Shell and Exxon's secret 1980s climate change warnings [that capitalists suppressed this for continuing profit is the most unforgivable crime ever]Trump administration rolls back methane pollution rule despite harmful health impacts [continuing in the tradition of stupid capitalism at all costs]

09.18 'I was horrified that children are breathing air this dirty inside the school' [if your government isn't working, change it!]

09.17 For Whom the Climate Bell Tolls

News Media Matters

09.22 Progressives to DNC: It Would Be 'Insane' Not to Hand Over Twitter Account to Ocasio-Cortez

09.20 Morning Edition’s Think Tank Sources Lean to the Right

09.19 Taibbi: Bernie Sanders’ Anti-Amazon Bill Is an Indictment of the Media, Too

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

09.22 As Right-Wingers Push Trump to Fire Rosenstein, Here's What to Do If He Does

09.21 400,000 Americans in 900 Cities Ready to Take to Streets If President Trump Fires Rosenstein After NYT Bombshell

09.18 Voters Are Ready for a Green New Deal. Are Democrats?

09.18 'This Election Is Last Chance to Stop Them': Kudlow Confirms Trump and GOP Ready to Gut Safety Net After Midterms [Yes, there are far too many sociopaths]

09.18 You'll miss Trump one day

Justice Matters

09.22 Why isn't Mark Judge testifying about Kavanaugh? He is an alleged witness

High Crimes?

09.20 Trump Should Be More Worried About the Brennan Dossier

09.19 'Killing a generation': one million more children at risk from famine in Yemen [Does America's government have empathy? Does it understand the concept of morality? The Saudi Air Force would be ineffective without U.S. military assistance...]

09.19 ‘Tied to trees and raped’: UN report details Rohingya horrors

09.16 Merchants of Death Profit from the Bombing of Children as a US-Backed War Goes Largely Ignored

Economics, Crony Capitalism
International & Futurism

09.22 Which nation is 'most generous' to refugees? Certainly not the US

09.18 Racist rioting in Chemnitz has reopened Germany’s east-west split [We are all mixed-race after 10,000 generations. Helping suffering people makes us feel good, so become their friends instead.]

09.18 'Unconscionable' and 'Appalling': In Affront to Those Fleeing US-Backed Wars and Persecution, Trump Slams Door on Refugees

09.17 How to Humanely Solve Europe's Migration Crisis

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Thinking About Accelerations
Newspaper logo

ECONOMIC ANALYSIS:

Thinking About Accelerations

by Fred Cederholm
While the projected costs of the remedies/fixes skyrocket (now in the $TRILLIONS), there is still little reason to celebrate the beginning of any turn-around(s)! The daily news revelations continue being horrific; and bad as things are, we are only being carefully spoon fed the negatives in bite sized parcels that we can absorb and cope with.
I’ve been thinking about accelerations. Actually I’ve been thinking the unfolding recession/depression, cheer-leaders/ fear-leaders, the 2009 Stimulus Bill, bank failures, and the auto industry bailout. It is almost like we have entered one of those Star Trek Sci Fi anomalies where everything is changing and accelerating, but when we take stock of where we are and attempt to grasp the progress we are making (or have made) we discover that our situation is much as it was without any change!

You see while the numbers assessing the economic, financial, and monetary crises continue to escalate; and the projected costs of the remedies/fixes skyrocket (now to THIRTEEN FIGURE DIGITS – as in TRILLIONS), there is still little reason to celebrate the reaching of the bottom(s), or the beginning of any turn-around(s)! The daily news revelations are horrific; and bad as things are, we are only being carefully spoon fed the negatives in bite sized parcels that we can absorb and cope with. I mean... would the public have (swallowed and) approved the $ 5 plus TRILLION in bailouts, take-outs, guarantees, restructurings, TARPs, and capital infusions that have been “invested” in saving Wall Street investments banks, and money center commercial and retail banking TO DATE with the knowledge that at least TWO MORE TRILLION will be needed in the coming weeks or months to keep “the plates spinning on the poles” until the next trip to Uncle $ugar’s trough? I don’t TH*NK so. Besides... it is not just the financial services segment(s) - it is the auto industry, the real estate sector, state and local governments, retailing, and employment in general. Things are tough all over. A TRILLION here, a TRILLION there, pretty soon you’re talking real (or unreal) money!

The country passed the Presidential mantle and an expanded majority of Congress to the Democrats because they campaigned on making “Change that we could count on...” Their message in these times of malaise and uncertainty during the pre-election and pre-swearing in transition was that of “we can do it, we have the solution, and we will take you there.” In the span of less than six months, it is amazing how the cheer-leading message of hope and optimism has morphed into the fear-leading message(s) of direness, expediency, and cost escalation. True, not all was their fault.

The current gospels of restorative salvation materialized last week in “the do or die” form of the 2009 Stimulus Bill. This was to be a core game plan to stem the negative tsunamis of unemployment, bankruptcies, corporate (and household) retrenchments, liquidations, foreclosures, and pretty much all backtracking in general. It will do none of these. I would like to go “bullet point by bullet point” as to why I feel this is the case, but I cannot. I diligently tried to download (and read) the full 1,071 page text of the FINAL “committee reconciled bill” that was passed last week by the House of Representatives and the Senate, but it was simply not available to me. Congressmen and Senators hadn’t seen or read it before they agreed to approve the almost TRILLION dollars in expenditures! “Change we can count on...” hardly! Bipartisan support for fixing a broken system.... hardly! A “be all and end all solution to our troubles”...hardly! Nothing new here in any format!

Friday saw 4 more takeover/shutdowns of US banks. This brings the February total to 7 - with two more Fridays to go. Regulators seized 6 banks in January - making THAT the highest monthly toll since 1993. A total of 25 banks were shuttered (and re-sold) in 2008. This matched the combined total for all of 2001-2007. Home foreclosures soared and bank profits continue to tumble. More than 250,000 foreclosures were filed in January. A 10th month foreclosures exceeded a quarter million! The Geithner plan for the remaining $350 BILLION of TARP money, plus an option to expand THAT by TWO TRILLION more, failed to appease the markets at home, or at the G-7.

This week both GM and Chrysler are going to submit detailed plans of how to fix their ailing industry. These should be a real dog and pony show – make that a hybrid and SUV show. Will they be able to justify more BILLIONS in loans, government guarantees, and concessions without shifting more of their manufacturing operations abroad, or extorting more union worker contract concessions here?

I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


Copyright 2008 Questions, Inc. All rights reserved. Fred Cederholm is a CPA/CFE, a forensic accountant, and writer. He is a graduate of the University of Illinois (B.A., M.A. and M.A.S.). He can be reached at asklet@rochelle.net.


Copyright © 2009 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on February 16, 2009.

 

Public Service Ads: