Monday, June 1, 2009

Rush on the GM 'trifecta' deal

From NTC News:
"Protection, socialism and cronyism," Rush Limbaugh told his nationwide radio audience today in describing the $30 billion bankruptcy deal for General Motors announced by President Barack Obama.
Rush was on fire today, doing an economics seminar on the GM deal, talking about Timothy Geithner's China trip, and also addressing the "puzzling" woes in the bond market:
The Federal Reserve is studying significant moves in the U.S. government bond market last week that could have big implications for the central bank's strategy to combat the country's recession.
But the Fed is not really sure what is driving the sharp rise in long-dated bond yields, and especially a widening gap between short and long term yields.
Heh. The sharp rise in long-term bond rates is only "puzzling" to people who know less about market economics than I do, and I'm a liberal arts major. But the list of people who know less than me, however, unfortunately includes the man Obama insisted must be in charge of the Treasury:
Timothy Geithner, making his first visit to China as U.S. Treasury secretary, reassured China that the U.S. must control a massive fiscal deficit and unwind market rescue efforts when conditions improve.
"In the United States, we are putting in place the foundations for restoring fiscal sustainability," he said, adding that he backs a strong dollar policy.
Oh, puh-leeze. It Won't Work, The Fundamentals Still Suck, and Economics Is Not a Popularity Contest. We're on The Road to Weimar America.

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