At the same time the economy is tanking oil prices are being allowed to skyrocket affecting 100% of every aspect of our lives as you are all experiencing. As of yet I have been posing the question of how High the prices will go before many can no longer afford to drive to work and American Demographics are drastically changed as a result! in response to yesterdays story Larry sent me a story that seems to be the beginning of the end for most Americans flying and it brought this whole mess full circle for me knowing Bush is allowing things to happen in this country until he can find an excuse to take total control of our America and stay in Power. Anyway first the story:
“The airlines can’t afford it. Traditionally, oil companies extended credit for 14 or 21 days and some as long as 30 days. Now, most American airlines are on prepay. South West is one of a few likely to still get credit.” The extent of the cash squeeze was highlighted last week when American Airlines said that it would charge $15 per bag checked even as it revealed plans to shed 75 aircraft, shrinking the airline’s capacity by 12 per cent. The price of jet fuel has risen by 60 per cent since January and American Airlines paid $665 million more for fuel in the first quarter of this year than in the same period of 2007. The credit crunch is likely to worsen and a number of financial institutions will fail, according to research from Atradius, the credit insurance group which conducted a global survey of its customers’ views of the financial outlook. Although Atradius said that companies expect the number of failures to be small, about 65 per cent expect there to be failures.
The group added that direct exposure to sub-prime lending is higher in Europe than in the United States even though the bulk of the sub-prime mortgage defaults are in the US and many of the securities these loans are packaged into would have originated from US-based mortgage companies.
“Some explanation for this may be investments by European companies in US securities offering higher returns and more frequent use of secondary financial markets to securities receivables by European countries,” it said. Atradius added that only 12 per cent of companies across the world do not expect an economic slowdown in the next year. In Britain, more than 90 per cent of companies surveyed expect a slowdown, the highest percentage. About one in six companies expects a slowdown of only the national economy; a quarter expect a slowdown of the global economy and half expect a slowdown of both. The expectation of a slowdown is also high in Mexico, the United States, Spain, Italy, France and Belgium and lowest in Sweden and the Netherlands.
* Weasel Dog pointed out growing Airlines Bankruptcies which will help in Bush's end goal! Airline Bankruptcies would also bring another bailout for us. What I was thinking about is that Knowing Bush's oil connections Sending me this just turned on a light bringing everything that is happening full circle. Leaving Bush once again to appear the hapless victim as he appears forced to action and have to take total control. Bush could put an end to all this as far as I am concerned. Her is the friggen Decider! We all see that the slime has the power to force whoever he wants to do whatever he wants. Bush set in motion the demise of many average Americans with his implementation of new credit rules and Bankruptcy laws amongst a myriad of other laws designed to further reign in average Americans and enrich the wealthy further widening the divide between the classes. Over the years he has also had Greenspan setting up the demise of many average Americans with a banking, financial, and housing system designed to entrap many. Lastly the oil companies seem to be putting the last nail in the coffin raising prices uncontrolled to what has rapidly become a crisis level and at a very opportunistic time for Bush.