German Banks Need $175 Billion

From Reuters:

Germany’s 10 biggest banks need 127 billion euros ($175 billion) of additional capital, German newspaper Frankfurt Allgemeine Sonntagszeitung reported, citing a study by economic research institute DIW.

The paper on Sunday cited Dorothea Schaefer, research director for financial markets at DIW, as saying the ratio of banks’ equity capital to balance sheet total needs to rise to at least 5 percent.

A source said this month that the International Monetary Fund has estimated European banks overall could face a capital shortfall of 200 billion euros…

And from what I’ve heard, German banks are the healthy ones…you get to France and Spain and you start to find banks with really bad finances.

Bail outs and free money and borrowing and printing…all to keep Greece from defaulting and thus spinning the Eurozone down to destruction.  And what has it all accomplished?  Greece is still going to default (in a real sense, Greece already has…but the official announcement hasn’t been made by the Ruling Class, therefor the MSM doesn’t admit it, either) and once-stable economies – like Germany’s – are also being ruined.  All they did was throw good money after bad…it would have been better if Greece had defaulted two years ago.  Just as it would have been better if back in 2008 no one had stepped in to “save” the global financial system.  Sure, it stopped a Great Depression…but only for a little while.  We’re still going to get one.

It would be the irony of ironies if Germany’s financial plight proved the final trigger for the collapse.  The Germans – with long memories of pre-WWII financial troubles – kept their financial house in order.  To be sure, Germany’s welfare State is just as unsustainable as any in Europe, but at least the German’s had a handle on it…and Germans remain highly productive workers so they are at least generating wealth to pay their bills.  Not so in the rest of Europe…elsewhere, you do have the welfare State (often more generous than Germany’s) but without anyone willing to do any hard work, at all.  Now Germany threw her weight behind the irresponsible European Union members and will pay a price for being generous rather than realistic. The really bad news is that if Europe does fall apart, I bet dollars to donuts that the lazy parts of Europe will blame Germany…welfare bums don’t like it when the spigot is cut off and they tend to blame those who hold down a job.

HAT TIPMish’s

Obamunism! Unemployment Claims Jump

First time claims for unemployment came in at 428,000 against the “experts” expectation of 410,000; continuing claims are at 3,726,000 against an expectation of 3,700,000.  What I really want to know – in both first time and continuing claims, the expectation was that they would decline.  Who expected this?  Why?  What bit of information out there would lead any financial prognosticator to expect a decline in unemployment?

I think we’ve simply got a bunch of idiots – public and private sector – running the economy.  People who don’t know how things are made, mined and grown and can only predict things based upon assumptions on borrowed and printed money.  For crying out loud, things are lousy out there…you’d at least expect some caution and have the prediction be for things to remain as lousy as they were last week, not get better.

Aside from that, we are seeing more and more indicators of a double dip recession here in the United States while Europe shows ever more signs of financial implosion (day by day there is a new rumor floated of some miracle money to come through to bail out Europe…eventually, they’ll run out of rumors).  Obama’s jobs bill will do nothing to get us back to work but even if we manage to make things improve, the coming crash of Europe will be a huge hit to our economy.  Only a complete re-working of our economic life to make all taxation and regulation geared towards wealth creation will get us permanently out of this mess…and that can’t happen as long as any liberal, anywhere, has a say in what goes on.

Solyndra II?

Not satisfied with having thrown hundreds of millions away on Solyndra, the Obama Administration is now going to throw billions – from a Department of Energy press release:

U.S. Energy Secretary Steven Chu today announced the Energy Department finalized a $1.2 billion loan guarantee to Mojave Solar LLC for the development of the Mojave Solar Project (MSP).  When complete, the 250MW solar generation project located in San Bernardino County, California will increase the nation’s currently installed concentrating solar power (CSP) capacity by approximately 50 percent.  Abengoa Solar Inc., the project sponsor, estimates it will fund more than 900 construction and permanent operations jobs…

Sounds great, huh?  But we’ve heard this before from DoE:

Vice President Joe Biden, appearing via satellite from Washington D.C., today announced the Department of Energy has finalized a $535 million loan guarantee for Solyndra, Inc., which manufactures innovative cylindrical solar photovoltaic panels that provide clean, renewable energy. The funding will finance construction of the first phase of the company’s new manufacturing facility. Annual production of solar panels from the first phase is expected to provide energy equivalent to powering 24,000 homes a year or over half a million homes over the project’s lifetime.  Solyndra estimates the new plant will initially create 3,000 construction jobs, and lead to as many as 1,000 jobs once the facility opens.  Hundreds more will install Solyndra’s solar panels on rooftops around the country…

Will the new loan guarantee prove better than the last, or is this good money after bad?  Also, did the people running Mojave Solar LLC donate to President Obama?  Other Democrats?  How often have they been to visit the White House?  Is this a hard-nosed, business decision or just another political pay off?

HAT TIPZero Hedge

Median Male Earns Less Than in 1968

From Zero Hedge:

While the fact that a record number of Americans are living in poverty should not surprise anyone at this point, what should surprise many is that according to Table P-5 of the Census report of (Lack of) Income, the median male is now worse on a gross, inflation adjusted basis, than he was in… 1968! While back then, the median income of male workers was $32,844, it has since risen declined to $32,137 as of 2010. And there is your lesson in inflation 101 (which we assume is driven by the CPI, which likely means that the actual inflation adjusted income decline is far worse than what is even reported). The only winner: women, whose median inflation adjusted income over the same period has increased by 188%. That said, it is still at 65% of what the median male makes. So injustice all around…

Why has this happened?  Because since 1968 we have gone about destroying – via taxation, regulation, lawsuits and “nimbyism” – the ability of Americans to make, mine and grow things.  We can’t all answer phones in call centers, nor can all of us be computer programmers.  We have to make things, mine things and grow things…we have to produce wealth.  If we do, then wages rise…if we don’t, then they stay flat or decline.

It is time to restore the American economy be removing the barriers to wealth creation.  We have to allow people to work for a living – if we do, then wages will start to rise, fewer people will need government assistance and our overall finances – public and private – will improve.  If we don’t, then we die as a nation.  It is as stark as that.

And in order to do all that, we must over turn the current Ruling Class – they are in charge of Big Government and Big Corporation.  They are very well off and don’t care at all about how the average American lives.  They live in a world where struggle is non-existent, the family is unimportant and God is forgotten. As long as they are latched on to us, things cannot improve.  Remember that as we go in to 2012…anyone who is unwilling to shake up the status quo is unworthy of support…and the more revolutionaries  (ie, TEA Partiers) we can elect, the better.

White House Pressured OMB on Solyndra Loan

From the Washington Post:

The Obama White House tried to rush federal reviewers for a decision on a nearly half-billion-dollar loan to the solar-panel manufacturer Solyndra so Vice President Biden could announce the approval at a September 2009 groundbreaking for the company’s factory, newly obtained e-mails show.

The Silicon Valley company, a centerpiece in President Obama’s initiative to develop clean energy technologies, had been tentatively approved for the loan by the Energy Department but was awaiting a final financial review by the Office of Management and Budget…

Hey, gotta rush it through – Biden needed a photo-op and Obama donors didn’t want to wait around for a payoff on their investment!  I mean, my goodness, its not like it was real money – it was taxpayer money!  You can do anything you want with that!  As long, that is, it goes to line the pockets of liberal crony-capitalists…

Investigate all loans by the US government to all entities – for profit or not for profit; any time the US government guaranteed a loan, we need to find out just how and why it was done.  Who got paid?  Once we know that, we’ll be able to really unravel the corruption.

Hatch: Who Wrote the SEIU Goon Handbook?

Senator Hatch’s press release:

U.S. Senator Orrin Hatch (R-Utah) today wrote to National Labor Relations Board (NLRB) member and former Service Employees International Union (SEIU) official Craig Becker to inquire about his involvement in union intimidation efforts. The letter sent to Becker comes after the SEIU’s “Contract Campaign Manual” was made public. The handbook tells union members to purposefully try to damage their employers’ reputations by coming up with allegations against their employers and managers and to even break the law to gain leverage in contract negotiations.

In the letter, Hatch writes that, “the manual explicitly advises union members to engage in tactics designed to attack the reputation of an employer as well as its managers and to purposefully damage an employer’s relationship with vendors and customers.  In addition, it advises employees to uncover “dirt” on management officials and publicize the information in order to obtain leverage in contract negotiations.  The manual even goes so far as to encourage union members to disobey certain laws when it serves the union’s purposes.”…

As a matter of free speech, you can write all the books on how to be a union thug you like – but who writes the thuggery how-to books is a matter of public interest.  Did Becker write it?  If not, then who?  Inquiring minds want to know…

As the unions become ever more irrelevant to the average, American worker they do appear to becoming more desperate in their tactics.  Remember, when you intimidate an employer you are also intimidating employees…if you are willing to smash the property of a corporation which can call upon financial resources to fight back, imagine what effect that will have on individual workers who have no such resources?  Essentially, the unions are trying to scare everyone – to prevent anyone from challenging the unions.  And that works out to a prohibition against challenging the union bosses, who often don’t act as if they give a fig for the cares of workers.

Finding out who wrote this manual is a good, first step in trying to curb this intimidation…and to call unions back to their duty.  A union dedicated to representing the legitimate interests of workers who voluntarily belong to the union is  good thing…but a union dedicated to advancing the cause of a particular party and keeping the bosses rolling in wealth, that is another mater, entirely.

Watching the Euro Crisis

Mish notes that Greek 1 year bonds have hit 108% – meanwhile, over in Italy (from Bloomberg):

Italian bond yields surged at an auction today and Greek Prime Minister George Papandreou failed to reassure investors that his country can avert default as the euro region’s debt crisis worsened.

Italy sold 12-month bills today to yield 4.153 percent, up from 2.959 percent a month ago as demand fell…

I seem to remember Greek 1 year bonds being something like 4 or 5% a year ago…this is an economic model starting to unravel.  And it is kind of hard to keep a lid on it when you read stories from Europe of plans for an “orderly default” for Greece.

Could be a very wild, financial ride this week…

UPDATE:  Greek 1 year bonds reach 139%.

We Can’t Touch Social Security, Unless…

…Obama needs a tax cut and his liberal base won’t let him cut taxes that need cutting.  Jim Quinn over at Zero Hedge explains the problem:

…The party that presents Social Security as a well run outstanding example of government at its finest has decided the best way to create jobs is to double down on you paying even less in payroll taxes than you did this year. We know for a fact the average person will get between 25% and 125% more than they paid into Social Security. The Obama plan last year and again this year is to drastically reduce the amount paid into the Trust fund, so you can have the privilege of consuming the same amount of food and energy at a much higher price. Brilliant plan! It is amazing how liberals and Keynesians can have such disregard and scorn for future generations who will be handed this bill with no means to pay.

The Republicans went along with the 2011 payroll tax cut of 2%. They will go along with the 3.1% payroll tax cut. You see, this is how politics works. Since the payroll tax was “temporarily” cut, whoever lets the payroll tax cut expire will be declared a tax hiker. Therefore, the “temporary” payroll tax cut will be extended indefinitely, further impoverishing future generations. Meanwhile, how many jobs did the first payroll tax cut create? How many will the extended and increased payroll tax cut create? None! Obama is using the George Bush tax rebate check method of destroying the country. Both decided to address a government spending problem by reducing revenues. This is par for the course and explains why the economy is teetering on the verge of collapse…

And we really shouldn’t go along with Obama’s next installment in “temporary” payroll tax reductions.  I know, I know – for us GOPers, a tax cut is always a good thing…and it is, at the end of the day, better that people keep more of their own money.  But if we go along with this, then all we’ll have done is allow Obama to get a campaign talking point while further shoving us in to bankruptcy.  We must balance our budget – this is not a thing we can kid around with or kick down the road.  We have, at most, three or four years before the whole thing falls apart and our government finances become like Greece’s.

For us in the GOP, our duty is to demand massive, across-the-board budget cuts – and, yes, demand tax reform, too; but budget cuts come first.  And in the end, balancing the budget is so important that we must not even shy away from tax cuts…but not until at least $500 billion is reduced from spending.  And I don’t mean “over ten years”…I mean that in FY 2012 (which starts October 1st) we must spend at least $500 billion less than we spent in FY 2011.  If we can’t get at least that, then no tax increase in any way, shape or form can be agreed to.

To call this a serious moment in our nation’s history is to downplay what we’re going through.  Our economy and the global economy teeter on the brink of collapse.  If it does collapse, then hundreds of millions of people will begin to suffer very gravely.  In spite of asinine stories about China replacing us, the fact is that unless the United States pulls out of recession, no one really will.  Only America, properly governed and with a rational economic policy can do what needs to be done.  Our payout if we don’t act properly will be poverty and, very likely, a rapid rise in global tyranny leading to eventual war.

This is not the time for gimmicks – but that is likely all we’re going to get from Obama.  But we, of the Republican party, must have none of that – we must stand for solid, responsible policies which will actually cure the illness…and we must be courageous enough to go in 2012 on such a platform.  Let Obama and his liberals play games, let us save America.

Obamunism! Americans Flee to Canada for Jobs

Just how is that hopey-changey thing working out for ya?  From the Tucson Sentinel:

Usually, you hear stories of people fleeing to America, not the other way around.

But the jittery state of the U.S. economy is driving an increasing number of its citizens to seek better prospects north of the border.

Americans are the latest economic refugees, and they’re heading to Canada…

…Americans make up the second-largest group of temporary workers in Canada, only behind Filipinos, most of whom work as nannies…

It is only a small number of Americans, so far…but, my goodness, what a reversal of fortune?  Land of the Free, Home of the Brave…and off to Canada you go because you can’t get a decent job in the United States.  Not exactly carrying our national goal of allowing people to pursue happiness, now are we?

2012 can’t get here fast enough…

HAT TIPInstapundit

Meanwhile, Over in Europe

From Ekathimerini:

The government is facing the possibility of not being able to pay wages and salaries in October if its international creditors do not approve the pending 8-billion-euro sixth installment immediately.

The country’s foreign lenders have made disbursement conditional on the government’s adoption of new measures that will target the collection of at least 1.7 billion euros. Without the sixth tranche, the public purse will be 1.5 billion euros short on October 17.

The prospect of a freeze in payments appeared even more serious on Thursday, after Greek commercial banks failed to cover the sum of 300 million euros of supplementary, noncompetitive bids for Tuesday’s auction of T-bills, providing only 155 million. The shortfall is interpreted as a clear message by banks to the government that they are unwilling to fund future issues of T-bills…

Greek one year bonds are approaching 100% as the financial world fully expects a Greek default some time in the next 12 months – which means that Money is figuring there is nothing the European Union can do to avoid default.  Money is right – there isn’t anything.  Oh, they could maybe put it off for a while, but they can’t stop it.  Greece owes too much money and no elective government of Greece would ever have popular support for bankrupting the people of Greece so that banksters can be bailed out (a dictatorship could do it…and one does wonder if the Euroweenies are considering that?).

And once Greece does default, look out!  The financial world will be in for a crash like no one has ever seen before.

HAT TIPMish’s

UPDATE:  More on the Eurocalypse.