Glenn Beck, 9.22.2010: $202 Trillion In Debt And Progressive Manipulation Through Regulation

Glenn continues his campaign to get Americans to think and process information like a progressive so as to understand what the progressives are actually working toward within our society; i.e. Obamacare.  He also covers how the progressives are ‘nudging’ the country into a globalist direction, and that when enough Americans actually realize that it is Conspiracy FACT, it will be too late to save our nation.

Remember the economist that Glenn was speaking about earlier in the show? Laurence Kotlikoff’s op-ed pieces from Bloomberg on August 10, 2010.

U.S. Is Bankrupt and We Don’t Even Know It: Laurence Kotlikoff

Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.

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A Peek At Obamacare’s True Cost: Caterpillar & Cahill

Anybody who has a couple of little grey cells speaking to each other amicably will know that Obamacare (as written now) is just the beginning of a universal, single payer, healthcare system that will bankrupt the nation.  Bahana C. Obama states it himself, (and so does Nancy; “Kick open that door, and there will be other legislation to follow,” she said. “We’ll take the country in a new direction.”).

Caterpillar and Massachusetts Treasurer Tim Cahill give us a peek at what the true cost of Obamacare will spiral toward.

Caterpillar:

Caterpillar: Health care bill would cost it $100M

Dow Jones Newswires | Caterpillar Inc. said the health-care overhaul legislation being considered by the U.S. House of Representatives would increase the company’s health-care costs by more than $100 million in the first year alone.

In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan “because of the substantial cost burdens it would place on our shareholders, employees and retirees.”

Caterpillar, the world’s largest construction machinery manufacturer by sales, said it’s particularly opposed to provisions in the bill that would expand Medicare taxes and mandate insurance coverage. The legislation would require nearly all companies to provide health insurance for their employees or face large fines.

The Peoria-based company said these provisions would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.

“We can ill-afford cost increases that place us at a disadvantage versus our global competitors,” said the letter signed by Gregory Folley, vice president and chief human resources officer of Caterpillar. “We are disappointed that efforts at reform have not addressed the cost concerns we’ve raised throughout the year.”

Business executives have long complained that the options offered for covering 32 million uninsured Americans would result in higher insurance costs for those employers that already provide coverage. Opponents have stepped up their attacks in recent days as the House moves closer toward a vote on the Senate version of the health-care legislation.

A letter Thursday to President Barack Obama and members of Congress signed by more than 130 economists predicted the legislation would discourage companies from hiring more workers and would cause reduced hours and wages for those already employed.

Caterpillar noted that the company supports efforts to increase the quality and the value of health care for patients as well as lower costs for employer-sponsored insurance coverage.

“Unfortunately, neither the current legislation in the House and Senate, nor the president’s proposal, meets these goals,” the letter said.

What do you think is going to happen to what is left of America’s small businesses? The mandated insurance that Hawaii companies are required to offer is what caused my and my spousal unit’s layoffs. I wonder how that experiment will work with the rest of the country?

Tim Cahill:
Official: Mass-type care could ‘wipe out’ economy

The Massachusetts treasurer said Tuesday that Congress will “threaten to wipe out the American economy within four years” if it adopts a health care overhaul modeled after the Bay State’s.

Treasurer Timothy Cahill — a former Democrat running as an independent for governor — said the 2006 law has succeeded only because of huge subsidies and favorable regulatory changes from the federal government.

“Who, exactly, is going to bail out the federal government if this plan goes national?” He asked.

Cahill made his remarks after Gov. Deval Patrick, a Democrat, accused him and Republican gubernatorial candidate Charles Baker of being silent amid the ongoing health care debates.

Cahill said he’s called for the state to abandon its plan, and for the federal government not to match it.

“If President (Barack) Obama and the Democrats repeat the mistake of the health insurance reform adopted here in Massachusetts on a national level, they will threaten to wipe out the American economy within four years,” the treasurer said.

Tim Cahill on Beck, 3.19.2010:

Another Blow To Small Business? CIT Files Bankruptcy

I dragged this out of the vault; from July 17th, 2009.  Go here for the timeline of CIT’s problematic financial milestones.

Glenn Beck & Charles Payne; 7.17.09

CIT Files Its Bankruptcy Plan
Customers Gird for Snags; Usually No Chapter 12 for Banks

CIT Group Inc. filed for bankruptcy protection Sunday, in a final attempt to restructure and keep the doors open at the century-old commercial lender.

Now, the lender to nearly a million small and midsize businesses must maintain its customer base as it tries to rehabilitate under Chapter 11 protection. Most financial firms sell off assets or liquidate in bankruptcy amid fears that customers will draw down credit lines and spark a run on the bank.

But CIT garnered support from about 90% of voting debt holders for a prepackaged reorganization plan that could allow the lender to speed through Chapter 11 and emerge with a new business model by year’s end. Under the plan, bondholders will exchange their debt for new debt that matures later, as well as nearly all the equity in a reorganized CIT.

The bankruptcy stay would eliminate some $10 billion in debt from the lender’s balance sheet, the company said. CIT has been weighed down by more than $30 billion in bond debt.

A $2.3 billion taxpayer bailout extended to CIT late last year under the Bush administration will be wiped out in the bankruptcy. Common shareholders will be wiped out, too.

Capmark Files Chapter 11

Here we go kids – with all the hullabaloo about a national emergency for a milder version of the seasonal flu, Cheney’s comments about the resident, Joey Biden off to a GM plant on Tuesday, and the war on Fox News; the collapsing commercial real estate market may just fly under the radar.

Capmark Financial Group Inc. Seeks To Restructure Balance Sheet Through Chapter 11 Reorganization Process (Reuters)

HORSHAM, Pa.–(Business Wire)–
Capmark Financial Group Inc. (“Capmark”) today announced that Capmark and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt and maximizes value for its stakeholders. Capmark`s businesses are continuing to operate in the ordinary course.

Capmark Bank, which recently received $600 million of new equity from Capmark, is not part of the filing. The Chapter 11 proceedings are not expected to have an impact on Capmark Bank, its existing lending commitments and deposits or its ability to conduct trust services. Capmark Bank will continue to serve its customers.

Jay Levine, president and chief executive officer of Capmark, said: “We view this reorganization process as an unfortunate but necessary response to recent unprecedented conditions in financial and commercial real estate markets, which presented a significant challenge for Capmark and similarly situated finance companies. By constraining the availability of capital, these difficult market conditions had a negative effect on all our core businesses.”

Capmark`s subsidiaries filing for Chapter 11 protection include Capmark Finance Inc.; Capmark Capital Inc.; Capmark Equity Investments, Inc.; Mortgage Investments, LLC; Net Lease Acquisition LLC; SJM Cap, LLC; Capmark Affordable
Equity Holdings Inc.; Capmark REO Holding LLC; Summit Crest Ventures, LLC; Capmark Affordable Equity Inc. and 33 other Low Income Housing Tax Credit entities.

Capmark`s financial advisors are Lazard Frères & Co. LLC and Loughlin Meghji + Company. Capmark`s bankruptcy counsel is Dewey & LeBoeuf LLP.

For more information please visit Capmark`s web site at www.capmark.com.

About Capmark®:

Capmark is a commercial real estate finance company that operates three core business lines: lending and mortgage banking, investments and funds management, and servicing.

Are you wondering who Capmark is in the scheme of things?

Major Commercial Real Estate Lender Capmark To File Chapter 11

It’s happening. The long-awaited bankruptcy of big-time commercial real estate lender Capmark is just about here.

WSJ: In 2006, a group led by KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners acquired the lender GMAC LLC’s commercial-real estate business and renamed it Capmark. As of March 31, the investor group owned about 75% of the company, with GMAC and its employees owning the balance.

The Horsham, Pa., company recently reported a $1.6 billion second-quarter loss and warned it might be forced to seek Chapter 11 bankruptcy protection. KKR has already written down its investment in Capmark to zero.

Capmark recently entered an agreement to sell its North American servicing and mortgage-banking operations to a new company owned by Warren Buffet’s Berkshire Hathaway and Leucadia National Corp. for as much as $490 million. Under the deal’s terms, the sale could occur while Capmark is in bankruptcy, but would require a bigger cash payment. Read the whole thing >

Capmark is a very interesting entity:

GMAC from Wiki:

To raise money for reorganization, General Motors divested various assets including GMAC. This divestiture was accelerated at the prompting of investor Kirk Kerkorian and his former representative on GM’s board, Jerome York.

On March 23, 2006, GM announced that it completed the sale of a 78% interest in GMAC Commercial Holding, its commercial real estate subsidiary, for $1.5 billion in cash to a private investment group including Kohlberg Kravis Roberts & Co., Five Mile Capital Partners and Goldman Sachs Capital Partners. The deal includes the payoff of all intracompany debt owed to GMAC, bringing the total value of the deal to $9 billion. The new entity, in which GMAC owns a 21% interest, is known as Capmark Financial Group, Inc.

Now for something completely related.

Get ready, America: Great Depression 2.0
Author who predicted current crisis shows why it’s ‘only the beginning’

Drawing striking comparisons between the Japanese economy in 1988 and the American economy today, a new book by an author who predicted the current crisis warns it’s going to get much worse before it gets better.

Vox Day, a WND columnist, asserts in “The Return of the Great Depression,” by WND Books, the U.S. is only now entering the early stages of the Second Great Depression.

Day said the ideal reader of his book is anyone who scratches his head wondering how the Dow Jones Industrial Average could rise 50 percent in six months despite a rapid increase in unemployment, massive loan defaults and declining global production.

“I think anyone who is shocked at the way the politicians of both parties have continued to put the interests of Wall Street ahead of the interests of American homeowners, workers and small businesses is going to get a lot out of it,” he told WND. “I don’t know if those who were burned by the tech and real estate bubbles will necessarily enjoy reading the book and how the odds were always stacked against them, but it should help them avoid buying into the next investment charade.”

Day writes in “The Return of the Great Depression” that “for anyone equipped with the correct theoretical models of economics, the financial crisis was entirely predictable.”

He points to “the bipartisan push for increased homeownership through low interest rates and relaxed lending standards,” which destroyed wealth rather than creating it.

“But what is less well known,” he writes, “is that long before the subprime lending market erupted in 2004, it was already apparent to a few clear-eyed and contrarian economists that the housing market was possessed of the same irrational exuberance that had propelled the 1999 technology stock bubble to such gravity-defying extremes.”

He cautions: “Many of the same individuals who did not see the crisis coming are now loudly assuring the public that the worst is already past, whereas those who correctly anticipated it tend to be somewhat less optimistic about the future.”

The river is rising

In his detailed analysis, Day explains the U.S. economy has relied on a constant increase of the level of debt to fund its economic growth.

He points out the average annual expansion of commercial bank credit since 1973 is 8.4 percent, which has sustained an average of 3 percent yearly GDP growth.

But total loans and leases at commercial banks have fallen 6.8 percent this year and 8.3 percent since their peak in October 2008. (emphasis mine)

“This is an unprecedented decline,” he warns, “as the largest previous annual contraction was -1.0 percent in 1975. This strongly indicates the onset of the debt deleveraging process predicted by those who foresee a depression-sized event.”

The amount of failed bank deposits as a percentage of total bank deposits is more than twice as high as the rate during the first two years of the Great Depression, he points out, and the FDIC has announced its insurance fund is already in the red and does not anticipate returning to solvency until 2012 at the earliest.

Meanwhile, executives at large multinational industrial companies are privately reporting their future order books look worse for the first quarter of 2010 than they did for the first quarter of this year when the effects of the current crisis were being realized.

The numbers do not lie; unlike politicians….

The Moral Of The Story; Treasury Issued Fringe Benefits

Remember This?

Given what our current VP in charge of nothing said back on the campaign trail, wouldn’t that make the 13 TARP receiving banks who owe back taxes unpatriotic, and would it not make GM suspect?  Once again, read the whole article and cast your eye on TurboTax Timmie’s Treasury Department.

GM bailout has future tax break worth billions

WASHINGTON (AP) – The government bailout of General Motors includes a valuable prize for the ailing carmaker: a tax break that could save GM and its future investors more than $12 billion—if it ever becomes profitable again.

But these are far from ordinary times. The Treasury Department has, in effect, suspended long-standing tax rules for companies that receive bailout money, providing benefits not available to firms that don’t receive government help. New Treasury rules could provide GM billions in tax breaks once it becomes profitable and starts paying taxes again, which could be years away.

For tax purposes, it’s like the government’s ownership never happened, said Robert Willens, a corporate tax accountant in New York.

The new tax rules, issued over the past several months, are part of the government’s massive effort to prop up struggling financial firms and the automobile industry. The goal is to help companies like GM eventually become profitable, so the government can sell its stake, get back its investment and get out of the carmaking business.

The notices have the full effect of a law, even though they aren’t reviewed or approved by Congress. They also apply to banks and other financial firms receiving money from the Troubled Asset Relief Program, or TARP. (empasis added)

But the new rules don’t apply to corporations that are taken over by other private companies. That means Chrysler could lose the value of its tax write-offs in its merger with Italy’s Fiat Group SpA, depending on the structure of the company after it emerges from bankruptcy protection, tax experts said.

The moral of this story is to become part of the government and do not pay your taxes like most of Barack Obama’s appointees and bailed out banker friends. (Did Chrysler not contribute enough to Dem’s campaigns?)

If you are still thinking that anyone besides The Federal Reserve and the Treasury Dept. are running this country….wise up!  This would also explain why writing to your representatives in D.C. is no longer an efficient or logical means of effecting change.

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