Thursday, May 07, 2009

Crony Capitalism Catches Up to Obama

..and, by extension, ourselves, our families, and our children.

Change, but no hope:

U.S. stocks slid on Thursday as investors took profits from the technology sector's recent surge, while analyst downgrades hurt telecoms and a tepid response to a government bond auction raised fears about public finances.

Investors worried that poor demand for government debt could raise the cost of capital and hamper chances of a U.S. economic recovery.

U.S. debt prices slid, sending the 30-year Treasury bond yield to its highest since November.
"The auction is big news because now it's showing that maybe the Chinese don't want our bonds. If the cost of capital for the United States becomes more expensive, then the recession is going to take that much longer to get out of," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

I'm sure Obama's utterly reckless $3 trillion-plus budget plan, submited with no real way to pay for it, might have had something to do with it. Or maybe it was the way Obama tried to screw Chrysler's debt holders in order to protect his votes from the UAW...

Day 108, and the world has lost faith in America's ability to pay its bills. Well, that's change, all right....

Update: You think we aren't a Thugocracy now? This is how Obama's people spoke with the investors who refused to take a soaking on the Chrysler deal in order to help Obama's union supporters:

Confronting the head of a non-TARP fund holding Chrysler debt and unwilling to release it for any sum less than that to which it was legally entitled without compelling cause, this country's "Car Czar" berated the manager of said fund with an outburst of prose substantially resembling this:

Who the fuck do you think you're dealing with? We'll have the IRS audit your fund. Every one of your employees. Your investors. Then we will have the Securities and Exchange Commission rip through your books looking for anything and everything and nothing we find to destroy you with.

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