Archive for the ‘Bankruptcy’ Category

American Workers, Businesses Cut Back; Obama Launches Spending Spree

March 6, 2009

It seems ironic in this desperately weak global economy, that as workers and businesses cut back, the Obama Administration has launched a world class spending spree.

To investors and Wall Street, the problem isn’t irony but deep doubt and the fear of even worse economic times ahead.

Most Americans now say the U.S. government could go bankrupt.

Most Americans Now Say America Could Go Bankrupt

But the president has now seen his stimulus passed, with about $1 trillion in new spending and interest on the debt.  He also offers to overhaul an entire raft of ills he sees: energy, education, health care, banks and their lending, people hurt b bad mortgage deals, and the lest goes on and on.

The only thing we know for sure about the Obama proposed health care reform is this: it will cost hundreds of billions (and probably trillions of dollars), it will be formulated largely by the same people who wrote the stimulus, and, according to the President of the United States, it will not add one cent to the U.S. debt.  In fact, the president says, reforming health care will lead to a more robust economy!

If Barack Obama owned a small business undergoing an audit; the auditors would recommend immediate bankruptcy, a sell off of all assets, and for Obama and other “business leaders” like Barney Frank and Christopher Dodd to seek other lines of work as they await trial for cooking the books.

Unemployment Highest Since 1983; Business Leaders Have No Confidence in Obama Economic Plan, Team

The American economy is dead: and the Obama recovery plan calls for an endless stream of new government spending to get us all out of this hole.

My grandfather, who was a foundation digger in the 1920s, used to tell me: when you are in a hole this big, put down your shovel….

Presidency of Fear

Obama’s Brazen Deception: Why The Stock Market Won’t Recover Soon

 Senate Halts Obama Spending; At Least For The Week End

 Obama plan to prevent foreclosures won’t help many California homeowners

“People that create American wealth are going on strike”

 Geithner’s Hand Picked Deputy at Treasury Drops Out


Most Americans Now Say America Could Go Bankrupt

March 5, 2009

With the stock market in a nose dive and the U.S. government spending borrowed money like a drunken sailor, more than 60% of Americans now believe the U.S. could literally go bankrupt.

And as Americans watch news reports on how all this federal money (ie your money and my money) is being spent by the likes of Barney Frank, some are starting to wonder if all this spending will do any good, if it is fair and honest, and if it will prevent disaster (or as Barack Obama has sermonized: “catastrophe”).

Even if the “stimulus” and other Obama spending measures slow the economic downward slide, it is getting more doubtful that the Obama plan will restore investment, prosperity and economic growth in America — as investors seem to be saying in the stock market.

And is it all fair?  Should luxury car salesman Chadi Moussa get a new mortgage with your money and my money?  Should Americans and American companies be allowed to fail?

In the every-player-gets-a-trophy never-never land of liberal American, apparently nobody will be allowed to fail.  So the net reult may be that we all fail….


Chadi Moussa bought his home in Dublin, Calif, for $2.24 million in 2005. Its value and his income have since fallen by half. Now he wants a government bailout.  Heidi Schumann for The New York Times


The stock market has plunged to its lowest point in decades, unemployment is up, and home foreclosures are sweeping the country. Still, Americans think it can get even worse – a lot worse. Fully 61 percent of Americans think it is possible the United States government could literally go bankrupt. That’s according to a new Fox News poll released Thursday.

By Chris Anderson

And what about the billions of dollars the government has spent since last fall to get the economy back on track? Many Americans think its simply not working: 44 percent say “things would be the same as they are today or even better” without the spending, while 38 percent think “things could have been a lot worse,” without the spending. Another 14 percent think it is too soon to tell.

Some 60 percent of Americans now describe themselves as confident “about the future security of your job,” down from 64 percent in September 2008 and 82 percent in October 2007.

Lower earning workers are the least confident in their job security. Nearly half (45 percent) of households with annual incomes under $50,000 are confident in their job security, compared to 70 percent of higher earning households.

Opinion Dynamics Corp. conducted the national telephone poll of 900 registered voters for FOX News from March 3 – March 4, 2009. The poll has a 3-point error margin.

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How Banks Are Worsening the Foreclosure Crisis

February 13, 2009

The bad mortgages that got the current financial crisis started have produced a terrifying wave of home foreclosures. Unless the foreclosure surge eases, even the most extravagant federal stimulus spending won’t spur an economic recovery.

Business Week

The Obama Administration is expected within the next few weeks to announce an initiative of $50 billion or more to help strapped homeowners. But with 1 million residences having fallen into foreclosure since 2006, and an additional 5.9 million expected over the next four years, the Obama plan — whatever its details — can’t possibly do the job by itself. Lenders and investors will have to acknowledge huge losses and figure out how to keep recession-wracked borrowers making at least some monthly payments.

So far the industry hasn’t shown that kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are still at it today, working overtime to whittle down legislation backed by President Obama that would give bankruptcy courts the authority to shrink mortgage debt. Lobbyists say they will fight to restrict the types of loans the bankruptcy proposal covers and new powers granted to judges.

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A foreclosure sign is posted in front of a townhouse in Herndon, ... 
A foreclosure sign is posted in front of a townhouse in Herndon, Virginia. President Barack Obama’s quest to bridge Washington’s sharp political divides has been dealt another blow with the surprise exit of his commerce secretary pick, Republican Judd Gregg.(AFP/File/Paul J. Richards)

Will More Bankruptcies Follow Tribune’s?

December 10, 2008

Although Tribune Co. has the distinction of being the first major newspaper publisher to seek bankruptcy protection in this sour economy, it is hardly alone in facing the deadly combination of high debt and declining advertising revenue.

For a sense of who might be next, consider publishers that have put individual papers up for sale or have had trouble meeting their debt contracts.

By Anick Jesdanun            
The Associated Press

A picture of the Tribune tower in Chicago, Illinois December ...

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Nation-Wide Media Giant “Tribune Company” Files for Bankruptcy

December 8, 2008

Media giant Tribune Co., saddled with billions in debt since it became a privately held company last year, has hired bankruptcy advisers, according to its flagship newspaper, the Chicago Tribune. 

The Chicago-based company owns a coast-to-coast empire with television stations and newspapers in most of the nation’s largest cities. Its holdings include the Los Angeles Times; cable television super-station WGN in Chicago; the Baltimore Sun; and WDCW-50 in Washington, the CW affiliate. The company even owns the Chicago Cubs. 

By Frank Ahrens
Washington Post Staff Writer

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The Cubs may be for sale…