Archive for December, 2009
I just read another such stat:
Two years ago, researcher J.D. Power predicted China would pass the U.S. in auto sales in 2025.
Scratch that… they’re doing it this year… estimated 12.7 million cars and trucks will be sold in China in 2009 compared to 10.3 million in the U.S.
That’s a helluva research miss, eh?
I’ve said it before and I’ll say it again: Lots of measures are important… but nothing trumps the price of oil… it affects everything… for example, with short-term oil coming down, watch consumer sentiment magically improve in the following month or two.
Here was yesterday’s AIG headline:
"AIG reduces government borrowings by $25 billion"
Sounds great, eh?
Not so fast.
AIG isn’t paying us back (like a lot of other banks have/are). Rather, they are spinning off two units and preparing to take them public.
For this, we (the U.S. taxpayer) gets $25 billion in preferred stock.
Here’s the problem: We already own 80% of AIG… which means we already own 80% of these two spin-offs… but, percentage-wise, AIG is giving us (the U.S. taxpayer) far less than our actual ownership stake.
I mentioned this once before here. Go figure this quote:
"AIG continues to make good on its commitment to pay the American people back," AIG CEO Robert Benmosche said in a statement.
Bull shit. Is anyone watching this guy
P.S. How does this math work?!?
"As of Sept. 30, AIG had tapped $122.31 billion of the aid package and owed the government $85.66 billion in loans. Tuesday’s separation of AIA and Alico would reduce the outstanding aid package to $97.31 billion and the amount owed in loans to $60.66 billion."
Looks like they’re reducing what they owe by $50 billion, not $25 billion… !