Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (214980)	8/10/2009 9:10:00 AM
From: James Hutton	Read Replies (1) \| Respond to of 306849

G.E. fiddling with the books? No way.

To: DebtBomb who wrote (214980)	8/10/2009 10:19:28 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

A hearty thanks to Clint, Bush, O, Grrenspan, Paulson, Berspanky, Geithner, Raines, Dodd, Frank, GS investment banks and the rest of government that went along with them. Special commendation to Giant Squid. --------- ‘Lost Couple of Decades’ Looming for U.S. Economy: Chart of Day bloomberg.com Aug. 7 (Bloomberg) -- The U.S. economy may be just as sluggish during the next 20 years as Japan’s economy was in the last 20, according to Comstock Partners, a money manager founded and run by Charles Minter. Stimulus programs and a surging money supply aren’t likely to “solve a problem of excess debt generation that resulted from greed and living way beyond our means,” the firm wrote yesterday in an unsigned report on its Web site. “We could wind up with a lost couple of decades.” The CHART OF THE DAY shows U.S. total debt and gross domestic product since 1952, along with the ratio between them, based on data compiled by Bloomberg. The ratio rose in the first quarter to 372 percent even as household borrowing dropped for a second straight quarter, an unprecedented streak. The U.S. is headed for “a deleveraging period” in which the amount of so-called private debt, including consumer borrowing, collapses as government borrowing explodes, Comstock wrote. Assuming that private borrowers pay down debt at the same pace as they did in Japan after its 1980s economic bubble burst, the savings rate will climb to about 10 percent in 2018, the report said. The estimate was made in a study by the Federal Reserve Bank of San Francisco that Comstock cited. It’s more than double the 4.6 percent rate for June. Citing the study in addition to its own research, Comstock wrote that reduced borrowing may curtail growth in U.S. consumer spending by 0.75 percentage point annually on average during the next nine years. (To save a copy of the chart, click here.) To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net

To: DebtBomb who wrote (214980)	8/10/2009 10:39:47 AM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

What is surprising is that Immelt hasn't got the axe already. He clearly lost control of the young Turks in the finance division who levered into CRE. Maybe he even approved. Now accounting scandals. I have gotten clobbered on my GE short. You can be sure that they are making lots of dough off of the silly windmills. I read in Bloomberg yesterday that the transmission infrastructure required for T Boone et al could run $130 billion. Someday we will wake up to the renewable insanity - to include carbon. GE made a whole lot of dough on turbines for CCGT in the late '90s. Then it went to zero over about six months. That will be repeated with the wind turbines. It has already happened with the ethanol stills.