The question of the day is how long will the $700 Billion dollars in the TARP (Troubled Asset Relief Program) last? The Federal Reserve approved American Express as a Bank this morning. The government is investing at least $250 Billion to recapitalize U.S. financial institutions. Is it time for major industrial corporations to convert to Banks?
As I walk down NYC streets, I notice an abundance of vacant taxi cabs driving by. I also notice a lack of customers in boutiques and department stores. Can we conceive of Macy’s, Yellow Cab or General Motors as a Bank? In time we may be able to individually convert into Bank holding companies.
It is clear that TARP # 2 will be in place next year when President Obama takes office. We probably will need another $900 Billion to fund TARP #2. The worst Credit Crunch since the Great Depression is here.
Random thoughts… Las Vegas is in the news today. General Growth Properties (the second largest mall operator in this country) may declare bankruptcy next year as it is having trouble refinancing its debt. GGP owns and operates retail shops at the Venetian and Palazzo hotels in Las Vegas. The Las Vegas Sands Corporation which owns the Venetian and Palazzo has lost 94% of its market value this year. They raised $525 million today to avoid bankruptcy…….remember the market can’t go up unless every willing and unwilling seller has sold. We are getting close….
As I walk down NYC streets, I notice an abundance of vacant taxi cabs driving by. I also notice a lack of customers in boutiques and department stores. Can we conceive of Macy’s, Yellow Cab or General Motors as a Bank? In time we may be able to individually convert into Bank holding companies.
It is clear that TARP # 2 will be in place next year when President Obama takes office. We probably will need another $900 Billion to fund TARP #2. The worst Credit Crunch since the Great Depression is here.
Random thoughts… Las Vegas is in the news today. General Growth Properties (the second largest mall operator in this country) may declare bankruptcy next year as it is having trouble refinancing its debt. GGP owns and operates retail shops at the Venetian and Palazzo hotels in Las Vegas. The Las Vegas Sands Corporation which owns the Venetian and Palazzo has lost 94% of its market value this year. They raised $525 million today to avoid bankruptcy…….remember the market can’t go up unless every willing and unwilling seller has sold. We are getting close….
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1 comment:
I love the taxicab photo. The image with the zooming taxicabs going by clearly illustrates how quickly this global economic mess has appeared. It is beginning to be felt all over the place.
I think you're right. If I applied to become a bank...or if my company (VERONA) applied to become a bank the US FEDS would probably be ecstatic to the concept.
Will there really be a TARP #2...frightening; yet, likely. Reading your words inspire me to SAVE my $$$. :( Maybe I can sell a few photographic canvas pieces this holiday season.
I look forward to your next blog "scoop". You're a good writer with a knowledgeable edge.
Hugs,
Michael ;)
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