Economy is OK if the news is NOT AS BAD AS EXPECTED

Recent news which is said to be good since it is not as bad as predicted.

Fed’s Bank Results ‘Reassuring,’ Show No Insolvency

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Federal Reserve stress tests on the 19 biggest lenders show Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. together require about $54 billion, said people familiar with the conclusions.
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White House spokesman Robert Gibbs yesterday suggested that the Obama
administration may seek management changes at some banks. Officials will want to “ensure that going forward they felt that the management was in place to remedy the situation and ensure long-term viability without continued government assistance,” he said.

Bank of America Chief Executive Officer Kenneth D. Lewis, 62, was ousted as chairman on April 29 ……….

Jobs Report Giving Investors Mixed Picture On US Economy

The pace of layoffs slowed in April when employers cut 539,000 jobs, the fewest in six months. But the unemployment rate climbed to 8.9 percent,………………..

Job losses in February and March turned out to be deeper, according to revised figures. Employers cut 681,000 positions in February, 30,000 more than previously reported.
They cut 699,000 jobs in March, more than the 663,000 first reported. The deepest job cuts of the recession —741,000 came in January.

Jobs: A little less bleak

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Wachovia senior economist Mark Vitner and Gilliam both say they’re worried about the impact on jobs in coming reports from the bankruptcy at Chrysler, which will result in a 30-to-60 day shutdown at all of its plants, and the possible bankruptcy at General Motors (GM, Fortune 500). The loss of jobs — not just at those companies but at their dealers and suppliers — will be substantial.

And Vitner said that while Wachovia is projecting that there will be economic growth by the fourth quarter of this year, it’s projecting that unemployment will continue to rise into 2010, topping out at 10.8% in April of that year.

“We are moving in the right direction, but the recession is not over, and even when it’s over that’s not an end of the tough times,” said Vitner.

Wow a bank stress test with an 8.4% unemployment shows the banks will be OK, current unemployment is 8.9% and expected to exceed 10% in the next year.

I wonder if a new stress test will be needed so that the federal government can take over the banks.

GM & Chrysler Bankruptcy

G.M., Leaking Cash, Faces Bigger Chance of Bankruptcy

Even after receiving $15.4 billion in federal loans, General Motors is once again on the brink of financial collapse.

The automaker’s first-quarter earnings released Thursday showed that G.M. was losing more money and sales than it was in late December, when the government began its bailout…………..

This is occurring as Chrysler is in Bankruptcy

Chrysler Files to Seek Bankruptcy Protection

President Obama forced Chrysler into federal bankruptcy protection on Thursday so it could pursue a lifesaving alliance with the Italian automaker Fiat, in yet another extraordinary intervention into private industry by the federal government.
Flanked by his automobile task force of cabinet secretaries and business advisers in the White House’s grand entranceway, Mr. Obama announced a plan that would allow the United Automobile Workers, through their retirement plan, to take control of Chrysler, with Fiat and the United States as junior partners. The government would lend about $8 billion more to the company, on top of the $4 billion it had already provided……

If this is the good things that comes out of companies being to big to fail and then being supported by a federal government which is to big to fail.

This just proves that the US federal government is to bg and needs to be dismantled and let the states try to run things since the feds have screwed things up so badly.

States start to fight back vs central government

More and more states are starting to realize that the federal government over the last 100 years has become more and more about a large central power and limiting the rights of states and individuals to do as they desire.

Not all are being successful but the challenges to federal authority are being started and a very important fight that will rival the civil war in its importance to the future of America is coming. Which side will people choose and who will prevail, the fight is between a central government which tells everyone how to run their life vs state and individual rights.

This should be decided law based on the 10th Amendment but power corrupts and the creation of a central power will most certainly result in a very corrupt entity.

When the NY Times even takes notice (even though it is downplayed in significance) one knows that the elite media and Washington Power brokers are worried.

two examples
Oklahoma
Montana

For more about states rights go to tenthamendmentcenter

GM will move jobs out of US using Taxpayer Money

This is our wonderfully brilliant central government planning that was started by Bush and is being completed by Obama.

Under Restructuring, GM To Build More Cars Overseas

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.
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Everyone needs to call their congressman (woman) and tell them thanks for letting the executive branch of the federal government spend out tax dollars to send jobs out of this country.

Just the normal expected result of the government helping out.