BNN’s Amanda Lang and Kevin O’Leary reported today on SqueezePlay that three U.S. cities have just written letters into the Treasury asking for their own bailouts – Arizona, Pennsylvania and Georgia are starting to look as financially well-off as California, which is completely in the red. Is this a sign of worse to come? What’s the difference between a bailout and a usual subsidy?
It occurred to me earlier today – the irony of a situation in which the US government might “bailout” GM and Ford and yet the same administration failed to build sufficient levees in hurricane-torn New Orleans – let alone all the help and reconstruction that city did not receive when it needed it. But the bailouts of these dinosaur-Detroit automakers get this much attention… amazing.
I’m also more than a bit nervous about this weekend’s G20 meeting – there better not be any drastic tinkering of the world global system – we don’t want to be releasing too many butterflies into world weather maps, if you know what I mean… it’s exactly what David Smick was warning about in his latest book, and I think it shows how we’re now at a politically fragile moment globally as well.
In other words, the economic crisis has grown from a US mess (Aug. 2007-Sept. 2008) into a global financial mess (Sept-Oct 2008) and now this month I think it’s really become more than a mere economic mess. With this G20 meeting, it’s gone political. News reports today showed that Ecuador is going to miss a foreign debt payment, and that Canada and the US are thinking of partnering up in order to save the gas-guzzling market.
I really don’t like the look of any of it. It’s no longer seeming like some storm that’s going to pass over. We al know we’re in a global recession now, but it’s no longer just a recession. The changes that are being made now are going to create new problems in the future. There’s less transparency and more confusion at this point. That’s what’s really holding the markets back.
And I’m really frustrated that our (Canadian) currency isn’t reflecting the real worth of the Canadian balance sheets. It’s completely ridiculous that the most corrupt treasury is seeing all the gains right now.
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