This post is by Jim Fitch of Some Assembly Required.
Americans want cheap fuel, no matter what it costs.
Sign Here: JPMorgan, Citigroup, Morgan Stanley. The Usual Suspects. Now they want to take over all the pension funds. With Uncle Sam’s help, blessing, and taxpayer backing. Sort of a consolation prize for not getting their hands on Social Security yet.
Another Shoe: AmeriCredit announced a net loss of $150 million for the quarter. The interesting part is that AmeriCredit’s business is financing new car purchases, and loan originations were down 70% this year over last. Not so much the less lending, but the less buying.
The Road to Perdition: A group of wizards called the Counterparty Risk Management Policy Group III has unfolded the map to the future, where the financial collapse we’re drowning in today will never be repeated. One little problem: the wizards are from Goldman Sachs, HSCB, JP Morgan Chase, Merrill Lynch, Morgan Stanley, Bank of America – everyone but Mozilo and he probably submitted a brief. If these guys can lead us to the promised land, just who was it that lead us into the desert?
Preferences : Pimco’s Bill Gross says that by September Fannie and Freddie will issue preferred stock and the US Treasury will buy it. Mussolini said: “Fascism should more properly be called corporatism because it is the merger of state and corporate power.”
Sun Oil: Norway, the most conservative producer in the North Sea oilfields, will likely end petroleum exports by 2030. Its larger fields are declining at 13% a year. This announcement is in line with predictions made by the Export Land Model. Recall that the UK went from their peak production to importer in less than 8 years.
Mauled: The retailers got beaten up wholesale in July; 60% have reported disappointing results and missed analysts (lowered) expectations. From Wal-Mart and JCPenny to Target, Kohls, A&F, and The Gap. And that’s with the stimulus checks…
Some Assembly Required reflects my
somewhat cynical view of the world on a daily basis. Think of it as having coffee with a curmudgeon. Come visit; bring your own coffee.