Thursday, March 19, 2009

Friday the 13th, Economic Ground Hog Day

One number keeps repeating in the global economic ground hog day. It's 13. Consider the news:

1. The U.S. government mobilized $13 trillion to address the financial crisis.
2. American citizens lost $13 trillion in wealth, with millions losing jobs.
3. 13 firms (receiving some of the $13 trillion in support) owe back taxes.

Out of 23 firms, 56% welshed Uncle Sam's IRS. Funny, UBS helped 17,000 cheat on their taxes and the firm got over $64 billion in government money.

4. GM received $13 billion in funds and requested up to $17 billion in additional funds.

Treasury announced a $5 billion program to support auto suppliers. It guarantees payment for parts shipped to ailing car companies. One benefactor is The Carlyle Group, with numerous auto supplier firms. Heaven forbid, Carlyle ponies up any of their $40 billion in dry powder. Taxpayers sponsored corporafornication continues! Private equity underwriters (PEU's) win again.

When will Treasury send billions to auto dealers? Carlyle's Mack McLarty and billionaire Bob Johnson may need help. Maybe, Paulson/Geithner already did.