Little Interest in Green as Americans stay focused on the current U.S. financial crisis.
Well, it seems there has been little headline news about global warming, green issues and green fuel alternatives this week as the financial crisis unwinds and the fallout has started. The “gang of 20” (a group of so-called bipartisan senators) has made a statement concerning the environment and oil drilling issues.
Election year has poisoned debate on expanded drilling?
A bipartisan group of senators who sought a compromise in the rancorous energy debate won’t introduce their bill before lawmakers adjourn for the elections, several Senate aides said Thursday. Instead, the so-called Gang of 20 will offer a statement of principals outlining their agreement on a host of divisive issues, including expanded offshore drilling. They plan to offer legislation once the political season has ended, according to an aide to a Democrat involved in the discussions. The aide said that the election-year environment has poisoned the atmosphere and hampered the chances of passing a bill on such a controversial campaign topic. Source, The Hill.
The green movement is taking a back seat to the U.S. and its current financial dilemma as oil speculators are staring to jump back into the oil speculation market. Oil costs are on the rise again. You be the judge. China is looking at buying Morgan Stanley and what else is going to happen to the U.S. before this mess is straightened out?
Stock Market Meltdown?
Why doesn’t the federal government get it as the stock market almost had a complete melt down last week? Pure Chaos and there is a lot of blaming going on. I doubt if anything our do-nothing Congress tries, just may be to little to late or their decisions will make matters worse. Are we already so broke, the crisis cannot be fixed? We will find out before long. Remember, all the money spent so far has not stopped the home foreclosures? This is really one of the critical issues that has to be address, but at what Cost?
From the Washington Post: The market was 500 trades away from Armageddon last Thursday, traders inside two large custodial banks tell The Post.
Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level – a 22 percent decline! – while the clang of the opening bell was still echoing around the cavernous exchange floor.
According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning. Amazing, the crisis as of today, is still hanging around, yet we are all still here. The best simple solution is keep the government and government control out of solving these problems.
Cash is King.
Warren Buffett, the financial giant, is gobbling up companies like the old Pacman game and as the old adage goes, Cash is King, is truer than ever in financial markets.
Berkshire Hathaway has the highest of 10 investment-grade credit ratings by both S&P and Moody’s Investors Service. S&P rates Mid American at A-, four levels above junk status. Uh, wonder how good Fannie Mae and Freddie Mac’s grade is rated after the government bail out of these really poorly managed companies? Buffett is making deals at a time when others can’t. A yearlong contraction in global credit markets has choked funding for leveraged buyouts and reduced corporations’ ability to acquire rivals, shrinking the value of announced mergers 29 percent to $2.29 trillion this year from the same period in 2007. Buffett welcomes “tuck-in” deals when he can acquire businesses and place them under managers who have already shown their stuff at Berkshire,” he said in a letter to shareholders last year.
OMAHA, Neb. (AP) – Warren Buffett, one of the world’s best known and wealthiest investors, is betting $5 billion that the U.S. financial system is not about to collapse.
Buffett buys into Goldman-Sachs for $5 billion. Read the article!
Was Warren Buffett right when he said that derivatives and the crazy financing of Wall Street would bring the destruction to Capitalism? With the government taking over running financial institutions, does this mean the end of capitalism? Socialism in its grandest form. Government controlling a nations banks and banking system.
Sept. 18 (Bloomberg) –Krispy Kreme Donuts Inc. is offering “Kredit Krunch Treats,” 12 deep-fried rings for the price of seven. To truly reflect the current zeitgeist, sprinkle them with arsenic.
Day by day, the world of finance is discovering to its cost just how right Warren Buffett was earlier this decade about the dangers posed by the derivatives market.
“Weapons of financial mass destruction,” was how the billionaire investor described the new fangled securities.”The range of derivatives contracts is limited only by the imagination of man or sometimes, so it seems, madmen,” Buffett said in his 2003 letter to Berkshire Hathaway Inc. shareholders.
AIG, American International Group Inc. makes a bold statement that comes true, but ends up a nightmare!
A year ago, American International Group Inc. said only a U.S. housing market crash of “depression proportions” would pose a problem for its $32.6 billion of mortgage-backed securities and collateralized debt obligations tied to the sub-prime market.
Should we infer from AIG’s collapse, then, that a depression is imminent? Most of those hits came in the derivatives arena. AIG revealed last year that it had $64 billion at risk in contracts representing AAA rated CDO portions, known as “super senior” debt. This stuff turned out to be not quite so super after all; the insurance company has posted losses of $18.5 billion over the past three quarters after its financial-products trading division generated about $25 billion of write-downs. Don’t forget General Electric, it may be the next major U.S. company to seek government assistance to survive the current credit crunch!
Our Congress bailed on the U.S. citizens last week and billions of dollars are being asked from the American taxpayer. What happens to future inflation from all the fiat money that has been printed and billions more will be printed and pumped into the system and this still may not save the financial destruction of America. Socialism is here to stay as the government takes over the banking system.
Hard Working Americans Make Up the U.S. Economy. Americans are being asked to cough up $700 billion dollars to fix the mess that our Congress, Yes our Congress and greedy people, messed up. Americans have always paid the price when the chips are down. There are going to be problems, and this to will pass, because of the people who pay the price everyday, the citizens of the U.S. If we think these economic conditions are tough and this is the end of the world, wait till the crisis for Social Security comes calling to be paid.