Category: Economy (Page 9 of 12)

AutoNation expands share buyback

May 9, 2011 / Staff

The domestic auto industry is doing very well, and that’s reflected in the news coming from AutoNation:

AutoNation Inc. (NYSE: AN – News) announced that its board of directors has authorized the repurchase of up to an additional $250 million of common stock under its existing share buyback program. This has increased the total authorized amount under the program to $395.9 million.
Last year, the automotive retailer had increased the authorization amount during May and July by $250 million each. In the first quarter of 2011, the company repurchased 1.8 million shares at an aggregate price of $58.8 million, reflecting an average price of $32.60.
During the quarter, AutoNation reported a rise in profit to $70.3 million or 46 cents per share from $58.8 million or 34 cents in the year-ago period driven by strong new and used vehicle sales. The profit exceeded the Zacks Consensus Estimate by 3 cents per share.

This is excellent news for the economy, and hopefully we’ll see gas prices start to decrease, giving Americans more disposable income.

Economy, General Business

auto business auto industry AutoNation gas prices new car sales new cars used car sales used cars

Obama discusses energy policy

March 30, 2011 / Staff

President Barack Obama gave a speech today on his energy strategy at Georgetown University in Washington. He addressed some of the recent controversy regarding domestic oil production, noting that oil production is at an 8-year high in the US, and that we can insist on safety with sensible regulation and still produce oil from offshore sites.

Obama urged oil companies to make greater use of the federal leases both onshore and offshore to prop up domestic oil output. The oil industry and GOP lawmakers have been loudly complaining about delays in the permitting of offshore drilling in recent months. But an irked administration, which had pledged tougher scrutiny of drilling applications after last year’s massive Gulf of Mexico oil spill, fired back Tuesday with an Interior Department report that revived earlier debates about whether oil companies were exploiting the leases they already have.
Obama has made energy a priority since taking office, with the increase in automobile fuel efficiency marking perhaps his greatest impact. As part of the economic stimulus package adopted in 2009, he also won about $70 billion in grants and loan guarantees to promote energy efficiency, advanced batteries for cars and renewable energy. He has said that in addition to energy benefits those monies will create what he calls “green jobs.” But he poured a large amount of effort into winning passage of a cap-and-trade climate bill, which failed.

Economy, Energy

advanced batteries for cars automobile fuel efficiency cap-and-trade domestic oil production energy policy green jobs Obama administration offshore oil drilling oil prices President Obama renewable energy

TARP was a huge success

March 28, 2011 / Staff

Robert Samuelson is a grouch. Nobody would ever accuse him of looking at the sunny side of things, particularly when it comes to budgetary matters.

With that in mind, here’s his sober assessment of TARP.

It isn’t often that the government launches a major program that achieves its main goals at a tiny fraction of its estimated costs. That’s the story of TARP — the Troubled Assets Relief Program. Created in October 2008 at the height of the financial crisis, it helped stabilize the economy, used only $410 billion of its authorized $700 billion and will be repaid most of that. The Congressional Budget Office, which once projected TARP’s ultimate cost at $356 billion, now says $19 billion. This could go lower.
Almost everyone loves to hate TARP. It’s a favorite political sport of liberals, conservatives, Republicans, Democrats — and the public. A Bloomberg poll last October asked how TARP had affected the economy. The results: 43 percent said it weakened the economy; 21 percent said it made no difference; only 24 percent said it helped, with 12 percent unsure one way or another. Commentators in newspapers from The Wall Street Journal to The New York Times disparage TARP.
Wrong.
One lesson of the financial crisis is this: When the entire financial system succumbs to panic, only the government is powerful enough to prevent a complete collapse. Panics signify the triumph of fear. TARP was part of the process by which fear was overcome. It wasn’t the only part, but it was an essential part. Without TARP, we’d be worse off today. No one can say whether unemployment would be 11 percent or 14 percent; it certainly wouldn’t be 8.9 percent.
That benefited all Americans. TARP, says Douglas Elliott of the Brookings Institution, “is the best large federal program to be despised by the public.”

This demonstrates just how out of touch many Americans are these days. Sure, there’s plenty of justifiable anger. But this program served its purpose.

Economy, Finance, Markets

Robert Samuelson TARP Wall Street Wall Street bailout

Dealing with the foreclosure crisis in Cleveland

December 11, 2010 / Staff

This video describes how the city of Cleveland, and one housing court judge, are dealing with the massive foreclosure crisis. In particular, the city is tearing down condemned homes and making the owners and the banks cover the cost.

Economy, Real Estate

Cleveland foreclosures Cleveland mortgage Cleveland real estate foreclosure crisis home foreclosures

Online poker legislation is still a longshot

December 8, 2010 / Staff

Poker fans all over American suddenly become interested in politics now that Senate Majority Leader Harry Reid is trying to slip in a provision legalizing online poker into the tax cut compromise.

Now some lawmakers want to allow U.S.-based casino companies to get into the game — and a cut of the $25 billion-a-year pie — by quietly pushing for a change in the law before the end of this year.
A draft bill, first reported by the Wall Street Journal and obtained by ABC News, would legalize online poker playing in the U.S., and establish licensing and reporting requirements for companies, as well as safeguards for consumers. It would also generate tax revenue from wagers, for state and federal governments.
Forms of online gambling other than poker would remain prohibited under the bill.
Legalization of online poker forums has long been sought by the U.S. casino industry which says federal gaming regulations have unfairly handicapped their business in a flourishing online marketplace and left American consumers vulnerable.

The problem is that the bill is rigged to favor established casino interests in Nevada, so you have many saying the bill isn’t fair and that it’s a payback to Reid’s campaign supporters.

That said, it’s ridiculous that millions of Americans are prohibited from participating in an activity they enjoy.

Where does it stand now? Many Republicans are against it – they want to tell you how you can live our life.

But Harry Reid insists he still pushing the deal in the lame-duck session. It’s an uphill climb, but anything can happen.