Tag: bankruptcy

Electric car company shuts down

11:25 pm

For once, the taxpayer doesn’t get screwed: The electric car company Aptera has shut down due to lack of interest from investors and the lack of a loan from the government.

The California company was counting on a federal loan – and private investments to match the loan – so that it could start producing its very first electric vehicle. Aptera said it was close to securing a $150 million from the U.S. Department of Energy, but it couldn’t line up the private dollars necessary to complete the loan application process.

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American Airlines files for bankruptcy

9:22 am

American Airlines files for bankruptcy. Note this as well:

American was the only major U.S. airline that didn’t file for bankruptcy protection in the aftermath of the 2001 terrorist attacks that triggered a deep slump in the airline industry. The last major airline to file for bankruptcy protection was Delta in 2005.

This list of bankrupt airlines does not include Southwest, however, which has seen its business boom in the past decade. I wonder, could these other airlines be driving customers away with their high baggage fees, complex ticket rules that end up costing customers money or convenience, and their willingness to go along with the abuses of the TSA?

Whenever I can, I fly Southwest, because they don’t charge for baggage and allow me to change or cancel flights without penalty. However, I also fly as little as possible these days, mostly to avoid being treated like a criminal by the TSA. And I know I am not alone in this.

Thus, all airlines have lost business due to TSA abuse. You’d think they’d wake up and start to fight this government intrusion into their operations.

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Supercommittee gives up

8:38 pm

The day of reckoning looms: The Congressional supercommittee has given up. The perspective of one member of the committee can be read here. Key quote:

The Congressional Budget Office, the Medicare trustees, and the Government Accountability Office have each repeatedly said that our health-care entitlements are unsustainable. Committee Democrats offered modest adjustments to these programs, but they were far from sufficient to meet the challenge. And even their modest changes were made contingent upon a minimum of $1 trillion in higher taxes—a move sure to stifle job creation during the worst economy in recent memory.

Even if Republicans agreed to every tax increase desired by the president, our national debt would continue to grow uncontrollably. Controlling spending is therefore a crucial challenge. The other is economic growth and job creation, which would produce the necessary revenue to fund our priorities. [emphasis mine]

This needs repeating: regardless of whether you think we should raise taxes in this situation, no tax increase can eliminate the deficit. The problem is out-of-control spending that needs to be seriously curbed.

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Supercommittee to the rescue

12:08 pm

The Supercommittee to the rescue!

They’re the new superhero group of Superfriends from the Supercongress who are going to save America from plummeting over the cliff and into the multitrillion-dollar abyss. There’s Spender Woman (Patty Murray), Incumbent Boy (Max Baucus), Kept Man (John Kerry) and many other warriors for truth, justice and the American way of debt. The Supercommittee is supposed to report back by the day before Thanksgiving on how to carve out $1.2 trillion dollars of deficit reduction and thereby save the republic.

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We’re still not cutting

8:49 am

The day of reckoning looms: We’re still not cutting.

In the spring fight to avert a government shutdown, Republicans promised $100 billion in real cuts but then compromised for $38.5 billion in future savings. In reality, the Congressional Budget Office found the deal still resulted in an increase of more than $170 billion in federal spending from 2010 to 2011. The “largest spending cut in history” ended up being a spending increase.

And this:

But the [super]committee isn’t really trying to cut spending. It seeks only to spend the country into bankruptcy a little slower. Rather than letting the country rack up $23.4 trillion of debt by 2021, the supercommittee hopes to keep it to $21.3 trillion. It’s the difference between speeding off a cliff at 91 miles per hour versus 100 miles per hour.

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Senate rejects House funding bill; shutdown looms

2:38 pm

Senate rejects House funding bill; shutdown looms.

While we chatter about superficial election debates and a falling satellite, the federal budget continues to crash and burn. What I find disturbing about the events in the Senate is this quote:

Democrats in the Senate, who are in the majority, oppose Republican efforts to roll back “green” energy programs to pay for aid for victims of Hurricane Irene and other disasters. They say disaster aid, usually a bipartisan issue, should not require cuts elsewhere — especially to programs creating green jobs — as the GOP majority in the House now demands. [emphasis mine]

So how do the Democrats expect to pay for this disaster aid? Will the money grow on trees?

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