*Ford and GM should have STELLAR 3Q
1 week later, U.S. "Cash for Clunkers" is low on cash
The U.S. government's "Cash for Clunkers" program, aimed at boosting new-car sales, has been met with so much enthusiasm that it is running out of money a week after it was launched. Lawmakers said Transportation Secretary Ray LaHood told them Thursday that the program would shut down at midnight. Later that day, White House spokesman Robert Gibbs said the program would not be suspended and that the administration would work into the night to find a way to keep the rebate program running. The Washington Post (31 Jul.)
*here's your bailout people. We have tried to absorb those less fortunate in terms of housing and now we are all SUBPRIME.
Regulator doubts Fannie, Freddie can repay rescue funds
Federal Housing Finance Agency Director James Lockhart expressed doubt that Fannie Mae and Freddie Mac will ever be able to repay the $85 billion they received from the government. "Their book is so large," Lockhart said. "It's hard for me to see that they will be able to repay all of that." His comments are a public acknowledgment that taxpayers likely will lose billions of dollars from financial rescues despite claims that the funds were investments that would be regained. The Washington Post (7/31)
*some investment tips. But caution ahead, now that everyone is interested, it may not be the best time to buy
Little-known inflation hedge gaining new popularity
Until recently, relatively few investors even knew about a remarkably safe investment that brings with it the benefit of an inflation hedge, the market-indexed CD. This particular certificate of deposit differs from most other CDs because its interest rate is linked to an index or, in some cases, several indexes. The Wall Street Journal (7/29)
*Obama has pointed to the rise in the stock market to attest that his stimulus is working. Told ya so.....
U.S. stimulus not creating construction jobs, group says
Only 22% of 900 construction and construction-related companies surveyed received U.S. stimulus-funded contracts, according to the Associated General Contractors, the survey's sponsor. "Based on these results, it is clear that while the stimulus is having an impact on the industry's ability to save or retain jobs, it does not yet appear to have much impact on companies' ability to hire additional workers," said Stephen Sandherr, the trade group's CEO. Reuters (30 Jul.)
*the other day they said they were going to rein in the pace of loans. See how much power the stock market holds? It dropped 5% after that news. Now they are taking a page from US playbook, LIE and SPEND!
China to keep loose monetary policy, central bank says
The People's Bank of China said it will continue its loose monetary policy to calm traders fearful of a possible tightening. Su Ning, the central bank's vice governor, said the bank "will unswervingly continue to apply appropriately loose monetary policy and consolidate the economic recovery momentum." The statement was released after China's stock market posted its biggest daily decline in eight months. China Daily (Beijing) (31 Jul.)
*Canada had said their Recession is over on Monday. I said YEAH RIGHT!
Canada's recovery on shaky ground, prime minister says
Calling hints of an upturn a "so-called recovery," Canadian Prime Minister Stephen Harper warned that it is too early to say the nation has emerged from recession. "We're still in the middle of a global economic crisis ... I know there are some signs of optimism, but the so-called recovery at this point is extremely fragile," he said. Reuters (30 Jul.)