Dire economic news continues, Obama does little

Despite continued evidence suggesting President Obama’s policies are hurting much more than they’re helping, with regard to the economy, the President is continuing down the same road of bailouts and federal spending.

First, the dollar which was trashed handily under President Bush continues to take a beating:

LONDON (Reuters) – The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.

The dollar’s latest decline started when ratings agency Standard & Poor’s cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.

Moody’s Investor Service said on Thursday it was comfortable with its triple-A sovereign rating on the United States but that it was not guaranteed forever.

“The main issues are related to yesterday’s movement on fears that the U.S. might lose its triple-A rating,” said Roberto Mialich, FX strategist at Unicredit in Milan.

“This exacerbated the dollar’s losses over the last few days … (and) for the time being it’s hard to imagine a sharp reversal of the dollar’s trend.”

The dollar index, which measures the currency’s strength against major trading partners, fell 0.3 percent to its lowest since late December, before steadying.

The index is on track for its biggest weekly drop in two months, when the Federal Reserve launched its large-scale purchases of U.S. Treasuries in late March.

Minutes of the Fed’s April meeting, published this week, showed it considered buying more securities to spur recovery, a move which would inject more dollars into the market.

The loss of the United States’ AAA rating didn’t happen overnight, it is due to Obama doubling, no tripling down on President Bush’s massive spending and deficits. Had President Obama chosen a more responsible, more stimulative direction, we may be heading out of this situation instead of heading off a financial cliff.

What irritates me is that everyone, including Democrats, complained about President Bush’s deficits. However, President Obama has made the situation measurably worse instead of approaching this differently. One can’t help but wonder if it’s that the federal government can’t learn or that it won’t learn.

We could have done a number of things that would have truly stimulated the economy. Instead we’ve wasted billions and continue to waste billions on failed ventures like keeping General Motors out of bankruptcy, which didn’t happen as many of us rightly predicted.

Here’s more elaboration on the topic care of good ‘ol Glenn:

Sounds like fun.

  • Bill Hedges

    “Obama not concerned about U.S. credit rating change”
    Fri May 22, 2009 12:42pm EDT

    WASHINGTON (Reuters) – “President Barack Obama is not concerned about a possible change in the United States’ triple-A credit rating, the White House said on Friday.”

    “The dollar dropped to its lowest level this year on Friday and was on track for its biggest weekly fall in two months on concerns about the United States’ AAA-rating status.”

    “Moody’s Investor Service on Thursday said it was comfortable with its triple-A sovereign rating on the United States, but the rating was not guaranteed forever.”

    If Obama does not go back to Congress and get all his booty canceled, impeach him. Declare Biden unfit for office, and impeach the Speaker. Not sure about Reid, he has in recent times shown a little common sense. But don’t trust.

    GM is on life support__Really dead

    “White House Reportedly Prepares GM for Bankruptcy, Plays Down Possible GMAC Takeover”

    “The Obama administration is preparing to move GM into bankruptcy while seeking to play down the prospect of taking over GMAC, the financing arm of the automaker.”

    FOX News.com

    Friday, May 22, 2009

    “Under the GM draft bankruptcy plan, the automaker would receive just under $30 billion in additional federal loans, a source told the Post, which would up the government’s overall investment in the company to nearly $45 billion.”

    Nate said_”We could have done a number of things that would have truly stimulated the economy. Instead we’ve wasted billions and continue to waste billions on failed ventures like keeping General Motors out of bankruptcy, which didn’t happen as many of us rightly predicted”

    Darn straight we did Nate. Have them like $ 7 trillion today. Government still fighting letting Bankruptcy Court do it’s thing. Making General Motors a mean lean fighting machine. Not a Obama Green House butterfly covered golf cart death trap maker.

    Acorn and Unions gave us Obama. May be the dealth of us. Remember sir saying we might not recovery. Now I see what he meant. Guyis smart. Knows what will happen with his ideas.

    This “Credit Card Bill Of Rights” law we now have did not have 5 day transparency as promised by sir. Yet the law does not go into affect for 9 months. What was the rush sir. Only good thing in law is you can carry gun into National Parks in 9 months.

    You folks with marginal credit will be losing your card. And good credit risk like myself will be paying fee to have card. Somebody always pays baby. Nothing is free.

    Watch provided Beck video and learn facts of life.

    With all this money government is spending, means less for us and higher interest because of higher demand for money. Called supply and demand. Throw in no AAA, China stop loaning and cashing in their paper, massive withdrawal of money from stock market____Better prey to your economical maker__20% unemployment might be a blessing. Treasury notes could be used to start fires in fireplace.

    Obama is not concerned___L.O.L.

  • Bill Hedges
  • Bill Hedges

    “GMAC Receives $7.5 Billion In New Treasury Aid
    Aid Will Keep Loans Available To American Car Buyers”

    JEANNINE AVERSA, Associated Press Writers

    POSTED: Thursday, May 21, 2009
    UPDATED: 3:02 am EDT May 22, 2009

    WASHINGTON — “Auto lender GMAC Financial Services will receive $7.5 billion in additional government aid to keep loans flowing to would-be buyers of GM and Chrysler vehicles and shore up its capital postion — marking the second time the government has stepped in to prop up the lender.”

    “To help GMAC raise additional funds, the Federal Deposit Insurance Corp. took the rare step Thursday of allowing the junk-rated company to gain access to its debt guarantee program. GMAC will be allowed to issue as much as $7.4 billion in debt, guaranteed by the FDIC in case the company defaults on payment.”

    “In addition, the Federal Reserve waived rules to give GMAC’s new bank, called Ally Bank, more leeway to make loans to GM customers.”

    Did you read that last long sentance. Does it remind you anything. Maybe “sub-prime”. Government is slow learner if it learns at all…

    “The government also has instructed GMAC to assemble a new, smaller board of directors, which the company has been putting together. It eventually will include the CEO, two trustees appointed by the Treasury Department to represent the government’s interest, and three independent directors to be elected by the rest of the board.”


    Cars designed by Pelosi…Obama hub caps…

  • Bill Hedges