"G.M. to Close Hummer After Sale Fails" (NYT)

"General Motors said on Wednesday that it would shut down Hummer, the brand of big sport utility vehicles that became synonymous with the term gas guzzler, after a deal to sell it to a Chinese manufacturer fell apart.

The buyer, Sichuan Tengzhong Heavy Industrial Machines, said in a statement that it had withdrawn its bid because it was unable to receive approval from the Chinese government, which was trying to put a new emphasis on limiting China’s dependence on imported oil and protecting the environment.

Tight financial markets also hurt the deal. When the commerce ministry did not bless the transaction, the well-capitalized Chinese banks became reluctant to lend money to Tengzhong, even though it tried to set up an overseas subsidiary to buy Hummer. That left Tengzhong trying to borrow money from Western banks that have been curtailing their lending even to established borrowers, much less a little-known company from western China..."

U.S. projected deficit for '09

I read in the elevator, yes the elevator, that the U.S. projected deficit for '09 is nearly 9% of GDP!!! Holy shrapnel, makes my finances look manageable :)

"In Booming Dubai, Call It the Anti-'Credit Crunch'" (Wall Street Journal)

"The booming Persian Gulf is starting to suffer from its own form of a credit and lending crisis.

As oil-fueled economic growth in the region surges, banks are finding that they don't have enough cash to meet all the demand from businesses to expand their operations.

The development means that unless banks are able to boost their deposits or develop new financial instruments, a lack of finance could provide an important brake on how quickly the region can grow....

"One of the big issues in the U.A.E. is the lack of financial instruments," says Mohsin Khan, the IMF's regional director for the Middle East and Central Asia. In particular, the fund is working to develop markets for "sukuk" bonds, a form of Islamic fund raising that can be traded without violating the Koran's prohibition on usury.

The value of sukuks issued rose to $47.10 billion in 2007 compared with about $25 billion in 2006 and $10 billion in 2005."...

Another factor adding to the crunch is the dollar's recent strength, which has driven away many foreign speculators who had bet the U.A.E. would cut its peg to the dollar, or revalue the local currency, the dirham."

"Kiva: We Let You Loan to the Working Poor"

Make small loans to people in need around the world, get paid back, and do it all over again!!

"Kiva's mission is to connect people through lending for the sake of alleviating poverty. Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world..."