Daily Reading: December 2, 2008

Reuters reports that Ford expects to breakeven by 2011. This ties-in to the discussion of Hope. Hope and reality can be quite divergent.

Goldman can no longer delay the inevitable. Reuters.

The UAW had better become amiable in a hurry, that is if they like having jobs. AP.

We have a monetary system in which the Federal Reserve can create as many U.S. dollars as it wishes and all of the U.S. Treasury debt outstanding is issued in U.S. dollars. In that light, how is it possible for the U.S. Treasury to default on its debt? It doesn't seem possible to me, but apparently some folks think it could happen. Reuters report on the CNBC website.

Wow, the Big 3 CEO's really do want bailout money. They are reducing themselves to automobile travel in the upcoming trip to Washington. AP.

Sears Holdings post poor results. It is hard to believe that, the once revered investor, Eddie Lampert was buying SHLD at more than $100 per share. Maybe he knows something we don't know. NY Times.

Countrywide is being sued by mortgage investors. Mortgage servicers modifying contracts that they do not own sounds like a recipe for disaster. Is it not obvious that legally enforceable contracts is paramount to our economic system? NY Times.

The most shocking headline of the day: U.S. auto sales are down significantly. AP.

The latest asset price bubble: U.S. Treasury Securities. WSJ $$$ Subscription required. If you don't have, at least, an online subscription to the Journal you should get one now.