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Paulson is saying that the TARP plan will now be used also for consumer lending...

Boehner Demands Federal Reserve Identify Recipients of Loans

This is getting interesting.

What we are seeing is what a world with moral hazard in the rear view mirror loos like.
Just recently a CEO stated that the market was not pricing in the value of the bailout to his organization. Wow!
So, back to moral hazard. Home depot is having a tough time. They will deploy credit to stimulate sales, and they are convinced that should their credit delinquencies rise that they can get those delinquencies bailed out. So again, it is NOT about credit worthiness, its about are you big enough to get Fed assitance when it all goes wrong. Home Depot is betteing they are.
I am still betting Boeing will ask for cash.
I am betting GE will incresae its demands for money.
I am bettting United Airlines and then other air line competitors will do the same.
Commercial RE in many forms will, not the least of which will be mall owners.
This is all so sad. It is entirerly predictable that everyone wll hold out their hand and that any program that is created will have the obvious if unintended consequence of shifting the problem to eslwhere.

Try to get a student loan from one of the banks. Just try.

Retailers offer seller-financing to move inventory - they take on the credit risk in exchange for generating sales now. It presents a somewhat distorted view of what the credit market looks like. Also, behind the curtain, they may have acquired that inventory by squeezing credit from _their_ suppliers. The ultimate at-risk holder of this debt is their bank and their supplier-chain. Besides, if the company is facing the prospect of bankruptcy anyway, why not try to stimulate sales at someone else's expense?

Add to this the moral-hazard point that has already been outlined so well by Duke. If the worst case is either a Ch.11-aided write-down of debt, with an additional 'upside' prospect of a government bailout - then Party On!

The only example I can think of as an indicator of availability of retail credit to a consumer where the risk cannot be passed on to a bagholder is the jumbo mortgage market. It is currently running close to 9.5%, with stricter documentation requirements.

I quit my job to retire early to Boise back in 2005 and haven't worked since. I recently got a backup VISA card through one of my banks and got approved although with a low $7,500 limit. Not bad for no job no prospects. Note: the last time I checked my FICO it was around 820 - paid off house, record of paying off cars, etc.

For those who are interested in the future of fusion here is a story of Arnold Schwarzenegger visiting Lawrence Livermore National Laboratory. My friend is a lead test engineer there, and in the picture, Arnold is looking at a 'target' that he designs and has built. Like I said before, this is a giant sphere of lasers that is the size of a football stadium all focusing onto this little target.

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/11/11/BA1C141SDO.DTL

I am still betting Boeing will ask for cash.

I am betting Boeing will get the USAF tanker contract, no matter what the proposals say.

Peter, that article is related to my thesis and why we don't completely agree that the free market is the source of innovation. I don't know of a privately built giant nuclear fusion testing facility anywhere, do you?

There's Gulf Atomic in San Diego, although my knowlege about them is old.

See for instance http://query.nytimes.com/gst/fullpage.html?res=9F07E2DD1238F931A15751C1A967948260

Cool, General Atomics is a contractor to LLL and is actually my friend's employer. It is a public private partnership.

On topic, I got a $20,000 line at Lowes in 1 minute a few months ago, they have not adjusted it, I keep getting mail offers all the time to go use my card. I just got it to get 10% off the refrigerator I was buying.

MBNA/now BoA has left my large lines intact and continuously send offers to get me to spend.
Discover does as well.

Your reader asks the same questions I do, which is "What credit crisis?" On a personal level the only line that was adjusted was my WA MU equity line. I got a letter saying it was lowered due to falling house prices, that is the only impact on a personal level that I see.

I am involved in the construction of a commercial building. Private money dried up for the broker to finish the funding in a multi stage deal. Even though I don't like how it was done, some influencial people in my group got a small bank to make a loan which normally a bank wouldn't do in a normal market on a construction project.

I believe that the reckless banks should be allowed to fail because there are plenty of smaller conservative banks who actually are now seeing entrepreneurial opportunities. They're the ones who are lending on the critical stuff, all the big guys are taking bailout money and holding onto it because they are themselves overextended.

Malcolm,
After graduating in physics from UCSC in 1975, I entered a PhD program at UCSD in part to study with Keith Bruckner, who then was the top laser fusion guy around, and in part to use the partnership with Genral/Gulf Atomic which Bruckner led. I didn't get along with UCSD at all and left with an MA, but I do remember back in the late 1970's that GA was doing their own research in-house.

Peter, that article is related to my thesis and why we don’t completely agree that the free market is the source of innovation. I don’t know of a privately built giant nuclear fusion testing facility anywhere, do you?

Ok, I agree.

I am being lazy, but I am assuming that Lawrence Livermore is doing the inertial pellet design? I thought that work had stopped? I know they still have the ignitian facility there but that is not for fushion.
Right now we are still movin forward to the Tokamak design using toroidal magnetic containment for the plasma. But fushion is at least 20 years away (with unlimited funding) and more likely 40-50 years away.

As for Student Loans. Once the governement chooses to bailout securitized credit cards and auto loans, student loans will join the parade. Then you will very much be able to get student loans. Ofcourse, you will have to loan more as I think CA will have to drastically cut its support to the UC and State system.

there is no credit crunch. There never was.

All we have experienced is a massive transfer of wealth to the banks. More specific, to the 5 biggest banks.

Every acronym they make up is geared towards transferring more wealth their way. Even the Fannie housing program launched yesterday is just another mirage of help to the people, when it really only benefits banks.

Even more disturbing is that our government has essentially given our entire livelihood to the banks. Even in a best case scenario, we will be in poverty for decades trying to pay off the debt our government has put us in just in the last 2 months.

We need Andrew Jackson back. He foresaw this day well over a century before it came.

Who gives a fuck about saving the financial system? It only exists to bleed money from the common man. God forbid we lose that.

Malcolm:

Sure, Government is still trying to find a BIG way to solve the problem: that's one of the troubles with innovation getting channeled through bureaucracy: the kingdoms always get bigger. So they're still doing big-ass lasers (which have errrmm... other uses) and big-ass Tokamaks, and the real innovation is going to happen (has happened!) with condensed matter *cold* fusion, funded by VC groups (I know some who are in it).

CF got mugged by the Tokamak/LL crowd because it is the most direct threat to their soup-line they can imagine. Therein lies the proof of Peter's principle.

This is why governments need to be *strongly* regulated.

Wow! VCs are sinking cash into Cold Fushion?

I guess bigger suprises have happened in the Universe, but I promise to eat the Empire State Building if that ever works out.

I thought Adobe bought ColdFusion a while ago.

Quantum mechanical tunnelling does work. That's how flash memory works. I'm willing to believe that under certain circumstances two nuclei can fuse even without having the necessary energy to get over the hump via tunnelling. But finding those circumstances is going to be a bitch.

I think this has been ere before, but here's Nobel Laureate Brian Josephson (he of the Josephson Junction), on the issue:
http://www.lindau-nobel.de/MediaContainer.AxCMS?type=lectures&LaureateID=6847

About the first half of the lecture is what is relevant to the point.

But finding those circumstances is going to be a bitch.

It seems like they're already found: Q>>1 in calorimetric readings, fusion byproducts (e.g. tritium production), neutron production, self sustaining reactions up to many hours or more.

REPRODUCIBILTY.

The issue seems not whether it happens, but WHY.

Beyond that, there is the issue of scalability up to reasonable use, where the Tokamak/Laser Implosion folks have a scalability down issue. And that initial several billion investment. Provided ITER ever gets past the governmental conference stage.

Guys, you're missing the general point. There are no privately funded giant stadium sized testing facilities because it is an undisputed fact that private business doesn't fund fundamental research. What private business does is take the technology through different transfer agreements and spins them into commercial applications.

Sure, you can cite examples on smaller scale, but only government can fund the really large experiments. Of course when the answers are discovered entrepreneurs will exploit the technology in the most efficient ways. In this specific case, the reason is not to find cold fusion methods, that will be a social spinoff, the real reason LLL is conducting this research is due to the nuclear test ban treaty. It is a way to test weapons systems without exploding full scale nuclear devices.

As always though, I am reminded that I am in good company here, and you guys never cease to amaze me with your backgrounds. I'm constantly impressed with the talent that I find here.

It was a validating experience to have my friend read my thesis and tell me internal policies supported my points. The main one is that research is only undertaken when it is not competing with the free market.

Peter, yes, there are controls that are required to stop things like politics corrupting the process. In general government sponsored research is only conducted for specific social reasons such as defense, health, and scientific exploration. Consideration is given to whether the research would be undertaken in the commercial sector.

I was about to post that I was skeptical about this, but then I saw this in my inbox:

>> CONGRATULATIONS ON YOUR RECENT CREDIT LINE INCREASE!

Your credit line is now $30,000*

Sigh.

Thanks Uncle Ben! I can almost smell the helicopter exhaust!

(what do you mean I have to pay it back?)

LOL, they see us as the real bailout. Kewp, I think we're supposed to run out and spend every penny, we'll figure out how to pay it back later. You're being a party pooper by asking distracting questions like "How am I supposed to pay it back?"

WTF??? Just as we're sitting here dismissing the notion of tightening consumer credit I stumble across this cluster fuck:

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-111208.aspx

Changes to $700 billion bailout
Just weeks after President Bush signed the government's $700 billion rescue plan for the financial markets, the plan is changing, Treasury Secretary Hank Paulson said today.

Wall Street wasn't impressed, with the Dow losing 100 points while Paulson spoke.

He said the government will use the remaining $350 billion of the $700 billion in rescue funds to address the dismal consumer situation.

The government is holding off on buying troubled mortgage assets from financial companies, he said. Money that is saved by not buying the risky mortgage securities can be used to help the market for student and auto loans, as well as credit card receivables.

"Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards," Paulson said in a news conference today. "This is creating a heavy burden on the American people and reducing the number of jobs in our economy."

I'm starting to wake up to why we went off the gold standard.

A debt-backed currency is an amazing weapon against the citizenry if used properly; being backed by a promise of future work vs. a hard asset. As its fiat, if someone works themselves to death and defaults, the Fed can just print new money to replace it. Without it even being inflationary!

The following future closings and permanent mass layoffs were reported in California.

Actel Corp. at 2061 Stierlin Court in Mountain View is undertaking a 10% reduction in its workforce. Approximately 60 positions are being eliminated.

Activision Blizzard is laying off 6 employees on Nov. 7 at 4247 S. Minnewana Ave. in Fresno and 20 employees on Nov. 7 at 6060 Center Drive, 5th Floor, in Los Angeles.

AIGM and 21st Century Insurance Co. is closing down and laying off 106 employees on Dec. 26 at 1800 E. Imperial Highway, Suite 100, in Brea.

Americam Airlines Inc. is laying off 28 employees on Nov. 1 at North Terminal-Baggage Service Office in San Francisco.

American Airlines Inc. is laying off 53 employees on Nov. 1 at 400 World Way in Los Angeles.

American Eagle Airlines Inc. is closing down and laying off 84 employees on Nov. 2 at 903 and 835 Airport Drive in San Luis Obispo.

AT&T California is laying off 48 employees on Nov. 23 at 2600 Camino Ramon in San Ramon.

Avery Dennison Corp. is closing down and laying off 22 employees on Nov. 30 at 10721 Jasmine St. in Fontana.

California Fraternal Order of Police Fundraising is closing down and laying off 103 employees on Oct. 31 at 4660 Spyres Way in Modesto.

Calsonic Kansei is closing down and laying off 57 employees on Oct. 31 at 9 Holland in Irvine.

Castaic Brick is laying off 64 employees on Nov. 26 at 32201 Castaic Lake Drive in Castaic.

Chase Home Lending is closing down and laying off 58 employees on Dec. 5 at 2633 Camino Ramon in San Ramon.

Conagra Foods Inc. is closing down and laying off 25 employees on Nov. 22 at 200 Boysenberry Lane in Placentia.

CP Meilland LLC is laying off 181 employees on Oct. 31 at 631 Walker St. in Shafter.

Ebay Inc. is laying off 184 employees on Nov. 1 at 2145 Hamilton Ave. in San Jose.

Exel Inc. is laying off 102 employees on Dec. 8 at 601 Kinetic Drive in Oxnard.

First Collateral Services Inc. (Citigroup Inc.) is closing down and laying off 26 employees on Dec. 31 at 1855 Gateway Blvd. in Concord.

Gate Gourmet is laying off 325 employees on Nov. 2 at 6701 W. Imperiasl Highway in Los Angeles.

Goodrich Aerostructures Inc. is laying off 87 employees on Nov. 19 at 850 Lagoon Drive in Chula Vista.

Greene Tweed is closing down and laying off 13 employees on Nov. 4 at 7101 Patterson Drive in Garden Grove.

Heller Ehrman LLP is closing down and laying off 76 employees on Nov. 28 at 333 S. Hope St. in Los Angeles; 68 employees on Nov. 28 at 4350 La Jolla Village Drive in San Diego; 404 employees on Nov. 28 at 333 Bush St. in San Francisco and 134 employees on Nov. 28 at 275 Middlefield Road in Menlo Park.

Hemet Valley Skilled Nursing Facility is closing down and laying off 104 employees on Nov. 30 at 1117 E. Devonshire Ave. in Hemet.

Hemosense Inc. is closing down and laying off 29 employees on Dec. 2 at 651 River Oaks Parkway in San Jose.

Homecomings Financial LLC is laying off 21 employees on Oct. 31 at 1650 Corporate Circle, Suite 100, in Petaluma.

Indymac Bank is laying off 56 employees on Nov. 12 at 1 Banting in Irvine.

International Paper Co. is closing down and laying off 86 employees on Dec. 5 at 10555 Iona Ave, in Hanford.

Johnson Controls is closing down and laying off 36 employees on Dec. 7 at 1900 Prairie City Road in Folsom.

Kmart Store #4240 is closing down and laying off 89 employees on Dec. 14 at 19600 Plummer St. in Northridge.

Land America is laying off 130 employees on Nov. 14 at 275 W. Hospitality Lane in San Bernardino.

Maxim is laying off 78 employees on Oct. 26 at 3725 N. First St. in San Jose.

Nexframe is closing down and laying off 72 employees on Nov. 24 at 4819 File Court in Stockton.

NYK Logistics (Americas) Inc. is laying off 142 employees on Dec. 1 at 2417 E. Carson St., Suite 100, in Long Beach.

Perotsystems is laying off 58 employees on Nov. 5 at Building 233a M/S 233-1 NASA Ames Research Center in Moffett Field.

Ralphs is closing down and laying off 55 employees on Nov. 15 at 12625 Frederick St. in Moreno Valley.

Riverside Cement Co. is laying off 85 employees on Dec. 10 at 1500 Rubidoux Blvd. in Riverside.

Science Applications International Corp. is laying off 89 employees on Nov. 1 at 10260 Campus Point Drive in San Diego.

Sconza Candy C. is closing down and laying off 82 employees on Nov. 14 at 919 81st Ave. in Oakland.

Siemens Healthcare Diagnostics Inc. is laying off 151 employees on Dec. 30 at 5700,5716,5722,5736 W.96th St. & 9625 Bellanca St. in Los Angeles.

Smurfit-Stone Container Corp. is closing down and laying off 108 employees on Nov. 16 at 19635 E. Walnut Drive in City of Industry and 114 employees on Nov. 23 at 2525 S. Sunland Ave. in Fresno.

Symantec is laying off 172 employees on Nov. 1 at 350 Ellis St. in Mountain View.

The Boeing Co. is laying off 58 employees on Nov. 28 at 2401 W. Wardlow Road in Long Beach.

The Western Union Co. is laying off 54 employees on Nov. 30 at 100 North Point in San Francisco.

United is laying off 59 employees on Oct. 31 at 1 World Way in Los Angeles; 107 employees on Dec. 7 at Los Angeles Int'l Airport in Los Angeles and 499 employees on Dec. 7 at San Francisco Int'l Airport in San Francisco.

Washington Mutual is laying off 51 employees on Dec. 31 at 9200 Oakdale Ave. in Chatsworth.

West Marine Products Inc. is laying off 390 employees on Dec. 25 at 500 Westridge Drive in Watsonville.

Boehner Demands Federal Reserve Identify Recipients of Loans
House Republican leader John Boehner is calling for the Federal Reserve to disclose the recipients of almost $2 trillion of emergency loans from American taxpayers and the troubled assets the central bank is accepting as collateral.

Boehner, in a prepared statement, is also calling on the Federal Reserve to comply with a Freedom of Information Act request from Bloomberg News requesting detail about the loans.
...
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, there is little disclosure about how the program is being implemented.

I just hate it when they start talking about nuclear physics.

I just hate it when they start talking about nuclear physics.

The real future of fusion is in Inertia/electrostatic confinement systems like the one developed by Dr. Bussard. The fusion reaction he was after creative mostly helium as a waste product. There would have been very little nuclear waste with his system.

http://en.wikipedia.org/wiki/Robert_W._Bussard

It is a huge loss to mankind that this man was not given the resources to develope this technology before he passed away.

creative=create

Smurfit-Stone Container Corp. is closing down and laying off

LOL. I always laughed driving past the Smurfit plant in Santa Clara, which took over National Can Co. years ago. Does a Smurf-it plant paint everything blue?

PermaRenter's list is sad, but I don't find it alarming. Am I missing something? This seems like the norms of some businesses cutting back. For the whole state it doesn't seem like a lot of people.

Is this list part of some plant closing law where companies with more than 100X people have to give a certain notice?

I'm ballparking the list is less than 2,000 people. Is there any measure of how that compares to stable times?

I should think there are 10s of thousands of people losing their jobs in construction related businesses. I can tell you of many hungry loan originators though I doubt they will get much sympathy here.

heh. I find it very funny that just as we talked about not getting a student loan, bam, Paulson is now throwing TARP money to cover collateralized student loans. And so, students are bailed out.