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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (35700)	6/2/2009 10:17:26 AM
From: TimF	Read Replies (1) \| Respond to of 71588

I'm not saying it should be spent faster. I'm using that blog post to point out how even if one thinks a stimulus is what's needed, the reality is that spending that much additional money takes a long time and so can't provide for a timely stimulus. If a large stimulus is really wanted, tax cuts (with an immediate reduction in withholding) would seem to be a better way to go, or perhaps just drop the idea that you can fine tune the economy with fiscal policy.

To: DuckTapeSunroof who wrote (35700)	6/2/2009 10:18:17 AM
From: TimF	Read Replies (1) \| Respond to of 71588

Bond market punishes companies after auto rift: report Tue May 26, 2009 4:56pm EDT By Dena Aubin NEW YORK (Reuters) - Scores of companies are being punished in the bond market as the Obama administration's policies on General Motors and Chrysler LLC create new risks for creditors, a veteran bond strategist says. As GM teeters toward a bankruptcy filing and Chrysler attempts to restructure in bankruptcy court, the Obama administration is offering most of the recovery value of those companies to "a favored political class, in this case the United Auto Workers, leaving creditors with very slender debt recoveries," Christopher Garman, founder of Garman Research in Orinda, California, said in a report released late on Friday. President Barack Obama and a more tightly Democratic-controlled Congress were sworn in January. To gauge whether those cases have made debtholders wary of other companies with so-called favored political classes, Garman compared spreads, or bonds' extra yields over U.S. Treasury yields, for companies with collective bargaining agreements with the high-yield bond market as a whole. While the two performed in line with each other since 2003, they diverged sharply in February, with spreads on companies with organized labor gapping nearly 11 percentage points higher than the market as a whole, according to Garman's research. The gap in spreads has persisted and was about 9 percentage points as of mid-May, Garman said. The gap appeared shortly after strategists reported signs that bondholder negotiations with GM were unraveling... reuters.com Message 25686356