Boom times for barter

When money's tight, cash-free transactions can keep you afloat

In this tough economy, Valerie Whitlock uses two forms of currency: money and barter. ¶ The 37-year-old actress and writer from Studio City holds down sporadic film and television gigs to cover her rent, utilities, car payments and insurance. For everything else -- head shots and haircuts, clothing and cut reels -- she trades her handcrafted jewelry. ¶ She started swapping for goods while at work on the set. But now the classifieds website Craigslist and her MySpace page for Fancy Pants Jewelry have become great places to find even more trading partners. Her best scores include microdermabrasion treatments, a used Apple G4 iBook computer and Marc Jacobs jeans. ¶ "Jewelry-making has become a creative outlet for me as well as an extra income and barter tool," Whitlock said. "It has made a huge difference in my life." ¶ As the financial crisis makes cash and credit increasingly scarce, the ancient custom of bartering is booming. Cost-conscious consumers are getting creative to make every dollar count. ¶ Some are dusting off books, DVDs, video games and other little-used items to trade for necessities or gifts. Others are exchanging services such as house painting for Web design or guitar lessons for clerical work. ¶ These newly minted cheapskates are seeing the world through green eyeshades, cutting costs wherever and whenever they can. ¶ "In the last couple of months, it's been like a bucket of cold water in our faces," said Mary Hunt, founder of money management site DebtProofLiving.com. "It has woken us up. We are paying attention to what things cost."

Source: L.A. Times - Business | 16 Nov 2008 | 8:00 am

Bail out Big Three carmakers? Sure, with conditions

To start with, let's require the U.S. automakers to come up with a blueprint for a 100-mile-per-gallon car.

As Glendale attorney Bruce Ehrlich filled up his gas tank in Los Angeles last week, he told me he wasn't happy about the prospect of a multibillion-dollar bailout of the U.S. auto industry. But he understood the need for some taxpayer aid.

Source: L.A. Times - Business | 16 Nov 2008 | 8:00 am

Tyler Goldman: Giving pop culture more fizz

The chief of Buzznet says his sites have attracted more than 37 million users, in part because of the community's ability to constantly supply new content.

The gig: Chief of Buzznet Inc., a Los Angeles-based Internet company he describes as a one-stop shop for pop culture.

Source: L.A. Times - Business | 16 Nov 2008 | 8:00 am

Citigroup to cut 10 percent of jobs: source

NEW YORK (Reuters) - Citigroup Inc plans to shed about 10 percent of its global workforce, a person familiar with the matter said Friday, as the bank tries to return to profitability and faces mounting criticism of Chief Executive Vikram Pandit.
Source: Reuters: Business News | 15 Nov 2008 | 12:40 pm

World leaders confront global crisis

World leaders convened Saturday for a second straight day hoping to tackle a financial crisis that has ricocheted across the globe and left the United States and other countries on the brink of deep recessions.

Source: Business and financial news - CNNMoney.com | 15 Nov 2008 | 11:55 am

Obama urges Congress to quickly pass rescue plan

CHICAGO (Reuters) - U.S. President-elect Barack Obama on Saturday urged lawmakers to quickly pass at least "a down payment" on a new economic rescue plan to help resuscitate the ailing American economy.
Source: Reuters: Business News | 15 Nov 2008 | 11:10 am

World leaders pledge action plan to fight crisis

WASHINGTON (Reuters) - World leaders grappling with the worst financial crisis since the Great Depression of the 1930s pledged on Friday to deliver a concrete plan to ward off recession and prevent future meltdowns.
Source: Reuters: Business News | 15 Nov 2008 | 11:08 am

Auto Review: 2009 Dodge Challenger R/T

The Dodge Challenger seems like a nice compromise for those who remember the pony cars of the '70s but now want more comfort and convenience, as well as better build quality, for their dollar. It is also a second chance for those who might have missed the Challenger the first time around.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 11:00 am

Auto Review: 2009 Ford Mustang GT

Ford seems to find ways to keep making the Mustang more interesting. Among this year's efforts is an all-glass roof. Move the sunshade back, and you get the effect of riding in a convertible without the drafts.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 11:00 am

More disruption as Air France strike enters second day

Air France passengers faced cancellations and delays on Saturday as a strike by pilots went into a second day, but with a glimmer of hope the union may call off its action after...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 10:43 am

Pakistan asks IMF for rescue loan

Pakistan has asked the International Monetary Fund for a loan of at least $7.6bn, its top economic adviser says.
Source: BBC News | Business | World Edition | 15 Nov 2008 | 10:43 am

Pakistan to get at least $7.6bln from IMF

Cash-strapped Pakistan will receive a rescue package worth at least 7.6 billion dollars from the International Monetary Fund, a senior government official announced Saturday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 9:50 am

Auto bailout backers offer to cut $25 billion size

Facing an uphill battle in Congress and stiff opposition from President George W. Bush, supporters of a government bailout for the sinking U.S. auto industry are offering to reduce its $25...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 9:26 am

World leaders grapple with crisis

Leaders will discuss plans to combat the global financial crisis in Saturday's G20 talks, but there is little hope of quick solutions.
Source: BBC News | Business | World Edition | 15 Nov 2008 | 9:01 am

Thai car sales fall 15.4 percent in October

Thailand's car sales fell 15.4 percent in October in the steepest loss of the year, apparently triggered by the global financial crisis, car manufacturer Toyota said Saturday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 8:51 am

Japan's Sharp to reduce LCD panel production: report

Japan's Sharp Corp. will cut production of liquid crystal display panels to cope with reduced demand due to the global economic slump, the Nikkei newspaper reported Saturday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 8:07 am

Obama needs eager bond buyers

The federal government will be issuing massive amounts of debt to finance recovery efforts in the coming months.

As a measure of the Obama administration's success or failure in the next year, a stock market recovery would be a positive. So would an uptick in the housing market.

Source: L.A. Times - Business | 15 Nov 2008 | 8:00 am

Retail sales post a record drop in October

The 2.8% decline surpasses the mark set in November 2001, with auto sales falling the most. Retail sales plunged...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

Dow ends hectic week with loss of 337 points

The index recedes to 8,497 during the final 45 minutes of trading, a lightning-fast drop even given the market's recent turmoil. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

Bush seeks use of fuel-efficiency loans to bail out Big Three

The White House is opposed to allocating part of a $700-billion rescue fund to Detroit. But the loan idea has environmentalists and small carmakers worried. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

Obama needs eager bond buyers

The federal government will be issuing massive amounts of debt to finance recovery efforts in the coming months. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

Hey, your shade trees are blocking my solar array

Going green is creating a new kind of tension between neighbors, as a Culver City dispute shows.

One neighbor loves his solar panels, which have cut his energy bill and are helping to combat global warming. The other neighbor adores his trees, which boost his property value and capture greenhouse gases. ¶ So what happens when one guy's greenery casts a shadow on the other fellow's solar array? ¶ It's an environmental battle that's heating up. And not just on Helms Avenue in Culver City, where the two neighbors -- furniture maker Gary Schultz and architect Michael Rachlin -- have begun using some decidedly un-sunny language to describe each other. ¶ "He's arrogant," said Schultz, who installed the solar panels.¶ "He has been a chronic sort of complainer," said Rachlin, who planted the stately date palms. ¶ Testy letters and e-mails have been flying between the two. There is talk of litigation. ¶ California has embarked on an ambitious program to install photovoltaic panels on 1 million roofs in California by the end of 2017. So it was perhaps inevitable that property owners, who already fuss with one another about everything under the sun, would end up feuding about that as well.

Source: L.A. Times - Business | 15 Nov 2008 | 8:00 am

Sun Microsystems, fighting for survival, to lay off 18% of its workforce

The computer firm says it may cut as many as 6,000 jobs as it cuts costs to offset a 27% decline in sales of its high-end servers and as it undergoes extreme restructuring in a worsening economy. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

Hey, your shade trees are blocking my solar array

Going green is creating a new kind of tension between neighbors, as a Culver City dispute shows. One neighbor...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

FDIC says plan could help 1.5 million owners keep homes

The agency proposes using $24 billion in government funds to back mortgages that are modified to make them more affordable. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 8:00 am

World leaders pledge action plan to fight crisis (Reuters)

Reuters - World leaders grappling with the worst financial crisis since the Great Depression of the 1930s pledged on Friday to deliver a concrete plan to ward off recession and prevent future meltdowns.

Source: Yahoo! News: Business | 15 Nov 2008 | 7:00 am

At economic summit, China carries the big stick

Pressure mounts on Beijing, with its huge foreign exchange reserves, to do more to help alleviate the financial crisis.

As global leaders gather today for an economic summit in Washington, no one may feel the spotlight's glare as much as Chinese President Hu Jintao.

Source: L.A. Times - Business | 15 Nov 2008 | 6:12 am

At economic summit, China carries the big stick

Pressure mounts on Beijing, with its huge foreign exchange reserves, to do more to help alleviate the financial crisis. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 6:12 am

110 banks have asked for $170B under bailout plan

At least 110 banks have requested more than $170 billion from the Treasury Department's rescue fund, and many more are expected to have submitted applications before Friday's deadline. ...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 5:27 am

Market Snapshot: U.S. stocks focus on G20 talks, key economic reports

Investors will turn their attention next week to economic data and the possibility of further intervention by U.S. and foreign leaders as woes pile up for the American auto industry at home and many industries around the globe.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 5:01 am

College sports try to fend off blitz from economy

While Georgia practices just beyond the walls of his office, Alan Thomas toils over his own game plan. He's no Mark Richt, but this administrator's work from behind a desk is just as...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 5:00 am

Colombia pyramid scheme enrages small investors

A collapsed pyramid scheme that cost millions and sent swindled investors rioting in the streets continued to plague southwestern Colombia late Friday, with two people dead, 13 towns under...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 4:25 am

Boeing's Agreement With SPEEA Provides Market-Competitive Pay and Benefits

SEATTLE, Nov. 14 /PRNewswire-FirstCall/ -- The tentative agreement reached today between Boeing (NYSE: BA) and the Society of Professional Engineering Employees in...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 4:04 am

Bulk of top Merrill brokers to join BoA

NEW YORK (Reuters) - Merrill Lynch & Co said on Friday that the majority of its best-performing financial advisors will join Bank of America Corp when that bank buys Merrill at the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 15 Nov 2008 | 3:46 am

Wall Street sells off as consumers snap wallets shut

NEW YORK (Reuters) - U.S. stocks fell on Friday after a record drop in retail sales last month heightened fears that American consumers' reluctance to spend will push the economy into an even deeper downturn than currently expected.
Source: Reuters: Business News | 15 Nov 2008 | 3:07 am

Retail sales in record fall, but sentiment up

WASHINGTON (Reuters) - Sales at U.S. retailers suffered a record decline in October as fears of recession sapped spending, but part of the drop was due to slumping gasoline prices which helped buoy consumer confidence.
Source: Reuters: Business News | 15 Nov 2008 | 3:06 am

Citigroup (C) May Cut 35,000 More Jobs

Citigroup (C) CEO Vikram Pandit will have an employee meeting on Monday in the hope that he can calm concerns that the huge financial company is falling apart. With its stock below $10 there have been mounting concerns about whether the government might have to come in with a AIG-like bailout or to arrange a sales of the company to another one of the major banks.

While Pandit is thanking his people for all of their effort, it appears that Citi is looking at cutting 10% of its total workforce which would be about 35,000 people.

According to Reuters, "Citigroup Inc plans to shed about 10 percent of its global workforce,"

Even cuts of that magnitude may not be enough. Several bank analysts expect Citi to lose more money next year. The firm still hold derivatives which may well have to be written down as the housing and credit markets continue to drop. Citi also has a huge pool of consumer debts attached to loans and credit cards.

Citi may simply not be able to stay ahead of the curve.

Douglas A. McIntyre

Source: 24/7 Wall St. | 15 Nov 2008 | 3:06 am

Senate to take up auto bailout, Bush offers plan

WASHINGTON (Reuters) - The U.S. Senate plans to take up a proposal to bailout distressed automakers, while the White House on Friday warned of partisan gridlock and recommended another route to get billions to Detroit fast.
Source: Reuters: Business News | 15 Nov 2008 | 3:00 am

Fidelity Investments to cut 1,700 more jobs (Reuters)

Reuters - Fidelity Investments, the world's biggest mutual fund company, told employees on Friday it will cut a further 1,700 jobs on top of 1,300 already announced.

Source: Yahoo! News: Business | 15 Nov 2008 | 2:59 am

Fidelity Investments to cut 1,700 more jobs (Reuters)

Reuters - Fidelity Investments, the world's biggest mutual fund company, told employees on Friday it will cut a further 1,700 jobs on top of 1,300 already announced.

Source: Yahoo! News: Business | 15 Nov 2008 | 2:59 am

Fidelity Investments to cut 1,700 more jobs

NEW YORK (Reuters) - Fidelity Investments, the world's biggest mutual fund company, told employees on Friday it will cut a further 1,700 jobs on top of 1,300 already announced.
Source: Reuters: Business News | 15 Nov 2008 | 2:59 am

Latin American Markets: Brazil declines capped by Vale's gain; Mexico slips

Brazil's benchmark index slips, with losses capped by a rise in shares of Companhia Vale do Rio Doce following the miner's report of positive signals in the metals market.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 2:14 am

Fidelity adds 1,700 to job cuts

Mutual fund manager Fidelity Investments said Friday that it will cut 1,700 more jobs in the first three months of 2009 in the latest round of cost cutting.

Source: Business and financial news - CNNMoney.com | 15 Nov 2008 | 1:48 am

Dismal end to week for stocks

Stocks slumped Friday, with investors abandoning a recovery attempt, as the worst retail sales on record ignited fears of a long recession.

Source: Business and financial news - CNNMoney.com | 15 Nov 2008 | 1:45 am

4 insurers seek thrift status

Four insurance companies applied Friday to become thrift holding companies and acquire savings and loans, which opens the door for them to seek bailout funds.

Source: Business and financial news - CNNMoney.com | 15 Nov 2008 | 1:45 am

Lehman needs deal on assets with its European unit

LOS ANGELES (Reuters) - Bankrupt Lehman Brothers Holdings Inc has filed court papers seeking approval to communicate with its European operations for help unwinding billions of dollars in assets that "sit unmanaged" and at risk of losing significant value.
Source: Reuters: Business News | 15 Nov 2008 | 12:52 am

Retailer Of Yoga Clothing Stretches For Profits In Tough Economy

Strapped consumers aren't going in much for sprucing up their wardrobes with new threads.

Source: Investor's Business Daily: BUSINESS | 15 Nov 2008 | 12:43 am

Business Briefs - Friday

Boeing deal may avoid 2nd strike. The aircraft maker reached a tentative agreement on a four-year contract covering nearly 21,000 Boeing BA...

Source: Investor's Business Daily: BUSINESS | 15 Nov 2008 | 12:43 am

Money Changes Everything

The current U.S. financial crisis began unraveling in the real estate industry's subprime lending sector midway through last year.

Source: Investor's Business Daily: BUSINESS | 15 Nov 2008 | 12:43 am

In Brief - Friday

KeyCorp (KEY) and Synovus (SNV) said they'll both get cash infusions from the Treasury. KeyCorp will get $2.5 bil, Synovus will receive $973 mil.

Source: Investor's Business Daily: BUSINESS | 15 Nov 2008 | 12:43 am

Trends & Innovations - Friday

Travelers accepting a la carte fees

Source: Investor's Business Daily: BUSINESS | 15 Nov 2008 | 12:43 am

This lender boasts booming business

This Italian lender is booming during the global economic crisis -- and loan repayments have been no problem. Delinquent borrowers may lose more than a house, however.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 12:35 am

Treasury attacked over $700bn bail-out

Neel Kashkari, the senior US Treasury official in charge of the package, was criticised as questions were raised whether the Bush administration had deceived Congress over handling of the funds
Source: FT.com - US homepage | 15 Nov 2008 | 12:31 am

Senate to take up auto bailout, Bush offers plan (Reuters)

Reuters - The U.S. Senate plans to take up a proposal to bailout distressed automakers, while the White House on Friday warned of partisan gridlock and recommended another route to get billions to Detroit fast.

Source: Yahoo! News: Business | 15 Nov 2008 | 12:24 am

Stocks to Watch: Stocks in focus for Monday

Among the companies whose shares are expected to see active trade in Monday's session are Target, Lowe's, Covidien, GM, and Ford.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 12:20 am

Leaders temper G20 ambitions

World leaders played down expectations of dramatic breakthroughs at the start of this weekend's Group of 20 summit on the economic crisis, conceding that the political transition in the US made big decisions unlikely.
Source: FT.com - US homepage | 15 Nov 2008 | 12:14 am

Kashkari as Paulson's 'chump'?

Money & Co. blog: Treasury's point man for the financial-system rescue gets blasted at House hearing.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 15 Nov 2008 | 12:11 am

Kashkari as Paulson's 'chump'?

Source: L.A. Times - Business | 15 Nov 2008 | 12:11 am

Retail sales sink as Dems seek auto industry loans (AP)

AP - The worst monthly drop on record for retail sales set off new alarm bells about the economy Friday, stepping up pressure on policymakers to figure out how to combat what increasingly looks to be a severe recession. Confronting opposition by the Bush administration, Democrats in Congress said they would try next week to pass $25 billion in emergency loans for the auto industry, so wobbly that one or more of Detroit's Big Three could go under.

Source: Yahoo! News: Business | 15 Nov 2008 | 12:08 am

Energy firms 'profit from poor'

Energy suppliers are being accused of making some of their biggest profits from their poorest customers.
Source: BBC News | Business | World Edition | 15 Nov 2008 | 12:05 am

Buffett's Berkshire hikes ConocoPhillips stake

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 15 Nov 2008 | 12:02 am

UK in for 'prolonged recession'

A severe downturn is unavoidable and the recession will be painful and prolonged, the British Chambers of Commerce warns.
Source: BBC News | Business | World Edition | 15 Nov 2008 | 12:01 am

House price recovery 'could take ten years'

Homeowners will have to wait a decade before property prices return to 2007 levels, a leading estate agent said yesterday.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

Wall Street gets jitters on weak sales data

American retail sales fell at their fastest rate for almost two decades last month providing new evidence that the world’s biggest economy is weakening far faster than expected.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

Freddie Mac says it is worth less than zero

Freddie Mac, the US mortgage giant, yesterday admitted that it is so overwhelmed by its liabilities that without government backing, it would no longer be a viable business. The company said that it had lost $13.7 billion ($£9.2 billion) in the third quarter of the year and begged for $13.8 billion from the US Treasury in rescue funds.$
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

New Star sparks rumours of rights issue

New Star Asset Management, the struggling fund manager, renegotiated its banking covenants yesterday in a move that added £3.5 million to its debt bill and spurred speculation that it could be pushed into an emergency rights issue.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

Nokia issues second profit warning as spending wanes

Nokia, the world’s largest mobile phone maker, issued its second profit warning in three months yesterday blaming a “sharp pull back” in global consumer spending over the past few weeks.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

RBS and Citigroup add to dole misery as big companies axe 16,000 in week

On a grim day for British jobs, the struggling Royal Bank of Scotland said yesterday that it was preparing to make 1,000 redundancies while the global bank Citigroup began to hand out P45s in London.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

After Hours: GM, Ford up as loan proposal gains key support

General Motors and Ford see their shares rise in the evening, lifted after a report that President George W. Bush is in favor of extending loans to the struggling U.S. auto industry.

Source: MarketWatch.com - Top Stories | 15 Nov 2008 | 12:00 am

Gordon Brown risks run on the pound, says George Osborne

Britain is heading for a “collapse of sterling” if Gordon Brown persists with trying to borrow his way out of trouble, George Osborne says in an interview with The Times today.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

GKN brakes even harder as car sales keep slowing

GKN offered fresh evidence of the dramatic contraction in the car industry yesterday as it said was cutting production at twice the rate it announced just over two weeks ago.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

Need to know: InBev go ahead ... Citigroup job cuts ... Logica

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

Saving car giants will cause havoc, Gordon Brown warns US

In a veiled warning to the next American President, Gordon Brown described protectionism as the “road to ruin” yesterday as international tensions surfaced at the start of the G20 summit in Washington.
Source: Latest Business News from Times Online | 15 Nov 2008 | 12:00 am

VIX Index of U.S. Stock Option Prices Retreats 10.8% to 66.31

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 11:58 pm

Oaktree's Pavlik Likes UltraShort and UltraLong S&P 500 ETFs

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 11:56 pm

Insurers in last-minute bid for access to bailout money

Several insurers, including Hartford Financial and Genworth, make last-minute bids for billions of dollars in government money.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:48 pm

Weekend Edition: Frugality becomes the latest holiday shopping fashion trend

With the downturn in the economy exacerbated by rising unemployment, the financial sector meltdown and stock market volatility, consumers' confidence has hit rock bottom and their desire to spend is in a freeze mode. And with this happening just on the verge of retailers' critical holiday shopping season, some industry analysts predict this will be the worst season in at least 17 years.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:37 pm

Citigroup to cut 10 percent of jobs: source (Reuters)

Reuters - Citigroup Inc plans to shed about 10 percent of its global workforce, a person familiar with the matter said Friday, as the bank tries to return to profitability and faces mounting criticism of Chief Executive Vikram Pandit.

Source: Yahoo! News: Business | 14 Nov 2008 | 11:34 pm

FundWatch: Fidelity to cut 1,700 jobs early next year

Fidelity Investments plans to cut roughly 1,700 jobs during the first quarter of 2009, according to media reports, as the world's largest mutual fund manager grapples with the effects of the market meltdown.

Source: MarketWatch.com - Top Stories | 14 Nov 2008 | 11:29 pm

For many, the holiday party's over

Company cutbacks are so severe right now that many are skipping the annual holiday party. Scott Jagow talks to Jo Bennett of Battaglia, Winston, Amrop, which does a survey about corporate holiday events.
Source: Marketplace Money | 14 Nov 2008 | 11:18 pm

Economic Diary on Inflation, Leading Indicators, Housing

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 11:12 pm

Here's what I'm doing: Staying spirited

Dan Yates runs a tour boat company in Portland, Oregon, and he's trying to keep the spirit alive in a down economy. In our latest "Here's what I'm doing," he tells us he doesn't believe in cutting back on the party.
Source: Marketplace Money | 14 Nov 2008 | 11:12 pm

AutoNation's Jackson Says Auto Bankruptcy `Not an Option'

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 11:05 pm

On the Ball: N.Y. Giants' Success, Kiwi Challenge, Nascar

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 10:51 pm

Facing foreclosure, some go to church

African Americans could lose up to $90 billion from foreclosures, according to a recent study. As Jenee Darden reports, some predominantly black churches are offering help to those in need of a financial rescue.
Source: Marketplace Money | 14 Nov 2008 | 10:42 pm

FDIC says plan could help 1.5 million keep homes

WASHINGTON -- Publicly breaking with the Bush administration's official stance, the Federal Deposit Insurance Corp. proposed Friday to use $24 billion in government funding to help 1.5 million American...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 14 Nov 2008 | 10:38 pm

New Warren Buffett & Berkshire Hathaway Stocks T-Z (TMK, USB, USG, UNP, UPS, WBC, WMT, WPO, WFC, WLP, WSC)

We have outlined the changes in the holdings of Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) and consolidated these into alphabetical order from "T to Z" for the quarter ended on September 30, 2008:

• Torchmark Corp. (NYSE: TMK) 2.82 million
• US Bancorp (NYSE: USB) over 72.9 million; looks UP from June
• USG Corp. (NYSE: USG) 17.072 million shares (same)
• Union Pacific Corp. (NYSE: UNP) 8.9 million shares (same)
• United Parcel Service (NYSE: UPS) 1.429 million shares (same)
• WABCO Holdings (NYSE: WBC) 2.7 million shares (same)
• Wal-Mart Stores Inc. (NYSE: WMT) over 19.9 million shares (looks same)
• Washington Post (NYSE: WPO) over 1.72 million shares (same)
• Wells Fargo (NYSE: WFC) roughly 290.4 million shares (looks same, but likely larger now)
• Wellpoint Inc. (NYSE: WLP) 4.7773 million shares (same)
• Wesco Financial Corp. (NYSE: WSC) 5.7 million shares (same)

BUFFETT HOLDINGS "A to H"
BUFFETT HOLDINGS "I to S"

You can join our open email distribution list to hear about other IPO's, secondary offerings, private placements, merger, special situations, rumors, Warren Buffett developments, and more.

Jon C. Ogg
November 14, 2008

Source: 24/7 Wall St. | 14 Nov 2008 | 10:26 pm

Hartford Financial soars on plan to join TARP

NEW YORK (Reuters) - Hartford Financial Services Group Inc , a property and casualty insurer beset by worries about capital levels, said on Friday it agreed to buy a small savings and loan, making it eligible to raise up to $3.4 billion from the U.S. government's bank bailout plan.
Source: Reuters: Business News | 14 Nov 2008 | 10:18 pm

Ailing autos may be Obama's vehicle

Source: L.A. Times - Business | 14 Nov 2008 | 10:10 pm

New Warren Buffett & Berkshire Hathaway Stocks I-S (IR, IRM, JNJ, KFT, LOW, MTB, MCO, NKE, NSC, NRG, PG, SNY, STI)

We have outlined the changes we have seen in the holdings of Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) and these were put into groups in alphabetical order from I to S for the quarter ended on September 30, 2008:

• Ingersoll-Rand (NYSE: IR) 5,636,600 shares (same)
• Iron Mountain (NYSE: IRM) 3,372,200 shares (same)
• Johnson & Johnson (NYSE: JNJ) listed as almost 62 million (roughly same)
• Kraft Foods (NYSE: KFT) about 148 million shares
• Lowes Companies (NYSE: LOW) 6.5 million shares; Down from 7 million in June
• M&T Bank Corp. (NYSE: MTB) 6.71 million shares (same)
• Moody's (NYSE: MCO) 48 million shares (same)
• Nike Inc. (NYSE: NKE) 7.641 million shares (same)
• Norfolk Southern (NYSE: NSC) 1.933 million shares (same)
• NRG Energy (NYSE: NRG) 5,000,000 shares; UP from 3.238 million in June
• Procter & Gamble (NYSE: PG) more than 105.8 million shares (same)
• Sanofi Aventis (NYSE: SNY) more than 3.9 million shares (same)
• Sun Trust Bank (NYSE: STI) more than 3.2 million shares (same)

BUFFETT HOLDINGS "A to H"
BUFFETT HOLDINGS "T to Z"

You can join our open email distribution list to hear about other IPO's, secondary offerings, private placements, merger, special situations, rumors, Warren Buffett developments, and more.

Jon C. Ogg
November 14, 2008

Source: 24/7 Wall St. | 14 Nov 2008 | 10:09 pm

Budweiser takeover gets clearance

Stella Artois brewer Inbev gets approval from regulators to take over Budweiser maker Anheuser Busch in a $52bn deal.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 10:09 pm

Work Life: Locations manager

She gets a script and she finds a place to shoot it. And then there are the little things involved. We follow Locations Manager Nancy Haecker around as she preps for features and TV shows.
Source: Marketplace Money | 14 Nov 2008 | 10:04 pm

New Warren Buffett & Berkshire Hathaway Stocks A-H (AXP, BUD, BAC, BNI, KMX, KO, CMCSA, COP, CDCO, COST, GCI, GE, GSK, HD)

Source: 24/7 Wall St. | 14 Nov 2008 | 9:57 pm

Bank fees could get you in the end

For the last 10 years, bank fees have been going up consistently. Scott Jagow talks to Bankrate.com's Greg McBride, who tells us where customers are getting stung the most.
Source: Marketplace Money | 14 Nov 2008 | 9:53 pm

Straight Story: Look across the board

Treasury Secretary Henry Paulson has shifted his focus to consumer lending, but not to foreclosures. Economics correspondent Chris Farrell tells Scott Jagow we need more across-the-board solutions.
Source: Marketplace Money | 14 Nov 2008 | 9:43 pm

Sun Microsystems to cut up to 18% of workforce

Sun Microsystems, the troubled US computer systems company, took an axe to its workforce as it reacted to the economic downturn and tried to deal more effectively with deep-seated problems in its business
Source: FT.com - US homepage | 14 Nov 2008 | 9:43 pm

US stocks fall on weak sales data

Leading US shares fall on Friday as renewed worries about the economic outlook lead to profit-taking.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 9:43 pm

White House says Democrats heading for "gridlock" on autos

WASHINGTON (Reuters) - The White House on Friday said it stood ready to accelerate loans to the troubled auto industry, but that congressional Democrats were headed for "partisan gridlock" by proposing to use funds from a $700 billion financial rescue package.
Source: Reuters: Business News | 14 Nov 2008 | 9:43 pm

Freddie: $25B loss, taps tax dollars

Freddie Mac reported a $25 billion quarterly loss Friday that forced the mortgage finance giant to tap $100 billion in bailout money set aside by the government.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 9:37 pm

Wall Street sells off as consumers snap wallets shut (Reuters)

Reuters - U.S. stocks fell on Friday after a record drop in retail sales last month heightened fears that American consumers' reluctance to spend will push the economy into an even deeper downturn than currently expected.

Source: Yahoo! News: Business | 14 Nov 2008 | 9:36 pm

US retail executive urges action on spending

JC Penny chief executive called for government action to boost consumer spending as new figures showed a record fall in sales last month
Source: FT.com - US homepage | 14 Nov 2008 | 9:36 pm

Bill Gates & Cascade New Stock Holdings (AN, BRK-A, CNI, KOF, FSCI, FMX, GBL, TV, OTTR, PCX, LGBT, PNM, RSG, SIX, BEE)

Source: 24/7 Wall St. | 14 Nov 2008 | 9:35 pm

FDIC's aggressive mortgage plan

In a surprise move, FDIC Chairwoman Sheila Bair Friday unveiled details of her plan to have the government help delinquent homeowners.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 9:31 pm

GM failure: The shockwave

If General Motors really does run out of money by the end of the year, as it predicted was possible the impact would be felt far and wide - to hundreds of suppliers, rival automakers and ultimately dealers across the nation.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 9:30 pm

Helping Homeowners

WASHINGTON

Congressmen from both parties hammered the young czar of the federal economic rescue plan Friday, saying financially foundering homeowners were getting nothing from the $700 billion bailout that Congress approved last month.

Despite their entreaties, Neel Kashkari, the 35-year-old Treasury official who oversees the bailout package, said his agency would focus on propping up banks because that was the best way to leverage the funds available.

His remarks came as the Federal Deposit Insurance Corp. proposed using a slice of the bailout—$24.4 billion—to help more than a million homeowners avoid foreclosure.

The contrasting strategies suggests that fundamental differences are simmering inside the Bush administration.

The subcommittee hearing with Kashkari came a day after Treasury Secretary Henry Paulson said he would shift from buying up problem assets to bolstering credit and bank loan capacity. That seemed to ignite lawmakers, fresh from the election season, who complained today that the bailout wasn't doing enough to curb mounting foreclosures.

"It's very clear that Treasury cannot and will not make the effort to keep people in their homes," California Republican Darrell Issa said.

Subcommittee chairman Dennis Kucinich of Ohio said the newest version of the bailout "breaks with congressional intent, contradicts public assurances previously made by the Treasury and leaves the federal government without an adequate mechanism to stem the tide of home foreclosures."

Defending the plan, Kashkari said that the plan would not solve all the country's economic woes.

"It's not a stimulus. It's not an economic growth plan," he said. "It's an economic stabilization plan."

The nuance, which Kashkari left unexplained, didn't seem to mollify indignant lawmakers. Kucinich and others said they feared the bailout was being used to pay dividends to investors and bonuses to executives instead of alleviating the plight of homeowners.

 That didn't seem to impress Kashkari, a former Goldman Sachs executive. While the White House today appointed a new special inspector general to monitor the bailout plan, Congress still has the power of the purse. Lawmakers could bar the release of the second portion of the rescue funds, about $350 billion, or alter the conditions for their use.

Kashkari said the Treasury continues to "aggressively examine strategies to mitigate foreclosures and maximize loan modifications, which are a key part of working through the necessary housing correction."

The F.D.I.C., however, said it has already examined foreclosure-mitigation measures and would like to implement one as quickly as possible. By reducing rates, extending terms, and occasionally forgiving some principal, it could cut mortgage payments enough to keep many families in their homes—about 1.5 million borrowers, at a total cost of $24.4 billion.

F.D.I.C. officials say they want to direct some of the $700 billion to pay for that.

Congress may well take up the proposal next week, when members return for a lame-duck session. Democratic lawmakers have been pushing for more direct help for homeowners; the Bush administration, however, has a different approach, which Kashkari explained today.

He said the rescue plan was aimed at making investments that would eventually return the money to the federal government. This is "fundamentally different from just having a government spending program" that distributes money without any chance of a return, he said.

Even if the government spent all $700 billion on buying mortgage loans, Kashari said that amount would only help a sliver of the country's 55 million mortgage loans.

Instead, he said, the Treasury is about to take stakes in 20 more banks, both large and small, across the country, arguing that this was the "best way" to boost the overall economy.Related Links
When Stabilization Isn't Stimulus
The Blurry Bailout
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Source: Portfolio.com: Top 5 | 14 Nov 2008 | 9:30 pm

Daycare costs becoming too much

The cost of childcare is outpacing inflation, leaving parents with a tough call: Find more money or find another way to care for their kids. Jaime Bedrin reports.
Source: Marketplace Money | 14 Nov 2008 | 9:24 pm

Freddie Mac seeks $13.8bn lifeline

Freddie Mac has asked the US government for a $13.8bn lifeline after suffering a record $25.3bn quarterly loss on large credit-related writedowns
Source: FT.com - US homepage | 14 Nov 2008 | 9:23 pm

Gold lures buyers after hitting a 14-month low

Source: L.A. Times - Business | 14 Nov 2008 | 9:21 pm

This season is no holiday for retailers

With retail sales having their biggest drop in record in October, the holiday shopping season is looking pretty bleak. How bad will it be? Scott Jagow gets the report from Marketplace's retail maven, Stacey Vanek-Smith.
Source: Marketplace Money | 14 Nov 2008 | 9:11 pm

S&P Profits Down 19%, Record Retail Sales Drop, Video Gaming

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 9:02 pm

Clouds gather over Canary Wharf

Canary Wharf is facing the threat of rapidly emptying office blocks as big corporate tenants review their needs after the wave of bank mergers triggered by the financial crisis
Source: FT.com - US homepage | 14 Nov 2008 | 9:00 pm

U.S. Judge Rules Citigroup Didn't Cheat Fund on Swap

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 8:52 pm

Dexia sells FSA after heavy quarterly loss

Dexia, the Franco-Belgian bank, agreed the sale of Financial Security Assurance, the monoline insurer that brought it to the brink of collapse
Source: FT.com - US homepage | 14 Nov 2008 | 8:46 pm

Sharing tales of money woes and wins

How much did you pay for that set of golf clubs you never used? Don't be ashamed, you're not alone. Eve Troeh reports that folks are coming out of the closet to tell tales of money wasted -- and to find help.
Source: Marketplace Money | 14 Nov 2008 | 8:43 pm

We're All Banks Now

In a sign of how far we have come from the last banking fiasco, the S&L fiasco of the early 1990’s, as how as how deep the current financial crisis is, one of the nation’s biggest insurance companies wants to become a savings and loan.

The Hartford Financial Services Group has applied to the Office of Thrift Supervision to become a savings and loan holding company.  The move will let Hartford apply for money under the Treasury Department’s Tarp program.

The Treasury official spearheading Tarp, Neel Kashkari, told Congress today that the department was about to approve applications from 20 banks.

The promise of new capital for Hartford sent its shares surging more than 30 percent in the last minutes of trading.

As part of its conversion, Hartford is acquiring a small savings bank, the parent of the Federal Trust Bank, for $10 million.

“We are taking these actions as a strong and well-capitalized financial institution looking for maximum flexibility and stability,” said Ramani Ayer, The Hartford’s chief executive.

Other insurers may soon follow, including Genworth Financial.

Both MetLife and Allstate already own an S&L, so getting new status would be easier for them.


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Source: Portfolio.com: Top 5 | 14 Nov 2008 | 8:30 pm

Spam drops after host shutdown

Worldwide spam plummets since Tuesday when a Washington Post investigation led to a shut down of San Jose, California Web host McColo.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 8:25 pm

Wal-Mart's Black Friday deals: High tech

Wal-Mart is highlighting flat screen TVs, Blu-ray players, Xbox 360 consoles and home computers in its much-anticipated Black Friday deals this year, according to a copy of the retailer's circular received by CNNMoney.com.

Source: Business and financial news - CNNMoney.com | 14 Nov 2008 | 8:17 pm

Lehman staff set to get bonuses

The remaining UK staff at the failed investment bank Lehman Brothers are to receive their annual bonuses despite the firm being in administration.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 8:14 pm

Citigroup (C) CEO Pandit Say Bank's Revenue Is "strong and stable'': Shares Stay Below $10

Source: 24/7 Wall St. | 14 Nov 2008 | 8:14 pm

Sowanick Says U.S. Automakers Should Be `Put Out of Business'

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 7:56 pm

Buiter Says G20 Too Large a Group for `Meaningful Decisions'

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 7:39 pm

Signs of life in economy

Even as the economic outlook worsens, the seeds of recovery are being sown. It will be a while before the harvest, economists warn, and as with any crop all sorts of things might go wrong. But the things which need to happen...
Source: New Zealand Herald - Business | 14 Nov 2008 | 7:30 pm

Eurozone enters first recession

The eurozone fell into its first ever recession even before October's intensification of the global financial market crisis, official figures have shown, adding to fears that worse economic news is yet to come
Source: FT.com - US homepage | 14 Nov 2008 | 7:20 pm

Getting Personal

This week, Scott Jagow and economics correspondent Chris Farrell answer questions on what a church should do with a large donation and how a teenager should invest her $500.
Source: Marketplace Money | 14 Nov 2008 | 7:03 pm

G20 leaders gather to battle financial crisis

WASHINGTON - The leaders of the G20 most powerful nations gathered in Washington last night to plan a new era of international co-operation aimed at preventing a repeat of the financial crisis that has engulfed the global economy. Diplomats...
Source: New Zealand Herald - Business | 14 Nov 2008 | 7:00 pm

Nokia braces for drop in phone sales

The handset maker predicted sales would fall next year in what would be only the second such decline in 15 years
Source: FT.com - US homepage | 14 Nov 2008 | 6:37 pm

Obama camp hints at key role for Clinton

Given the lingering resentment among some of Hillary Clinton's staff at what was seen as her mistreatment by Barack Obama when he was drawing up his shortlist for vice-president, many were still sceptical about any possible role.
Source: FT.com - US homepage | 14 Nov 2008 | 6:09 pm

HBOS sees risk of nationalisation

HBOS says that it could face nationalisation if its proposed takeover by Lloyds TSB is not approved by shareholders.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 6:06 pm

Over the Counter, But Not Under the Radar

Treasury Secretary Hank Paulson has more than once said he's not afraid to change his mind to accommodate changing circumstances. The rest of the Bush administration is now adopting that philosophy, though critics are already complaining that it's doing so too late to do much good.

A presidential working group consisting of senior officials from the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission concluded today that it would be a good thing to get a handle on the trillions of dollars of over-the-counter derivatives contracts at the heart of the latest chapter of the economic meltdown.

The first step in reining in this previously secretive and unregulated market is to establish credit default swap central counterparties—clearinghouses between parties that own debt instruments and others willing to insure against defaults.

Some of these counterparties, which could be banks but not interdealer brokers, should be up and running before the end of the year, the working group said.

Such clearinghouses would provide a window at least into the $58 trillion market for credit default swaps, permitting market participants and regulators to see who is assuming which risks—and thus be able to determine whether the companies collecting fees for guaranteeing debts actually have the assets to make good on their promises.

The failure of companies like American International Group to stockpile enough collateral to back up vast pools of credit default derivatives is behind the $100 billion government bailout of the firm and the crippling lack of trust in credit markets generally.

"The virtually unregulated over-the-counter market in credit default swaps has played a significant role in the credit crisis, including the now $167 billion taxpayer rescue of A.I.G.," S.E.C. chairman Christopher Cox said in a statement.

"Bringing transparency to this market is vitally important," Cox added. "The S.E.C. has regulatory and supervisory authorities over the clearing agencies that may be established for credit default swaps, and we will use those authorities to strengthen the market infrastructure and to protect investors."

The working group sketched the outline of the proposed new regulatory structure in a set of policy objectives. Because the market for credit default swaps and other derivative contracts involves companies regulated by different federal agencies—banks overseen by the Fed, securities firms that report to the S.E.C., and futures and options traders covered by the C.F.T.C.—those agencies have formally agreed to "cooperate, coordinate, and share information."

The agencies were quick to add that they would "take all actions reasonably necessary to preserve, protect, and maintain all privileges and claims of confidentiality related to nonpublic information" they gather in the course of monitoring the over-the-counter derivatives market.

But they were equally swift to add that some regulation of the market was needed, and fast.

"A well-regulated and prudently managed C.D.S. central counterparty can provide immediate benefits to the market by reducing the systemic risk associated with counterparty credit exposures," the working group said in a statement.Related Links
S.E.C. Reasserts Its Relevancy
Will $700 Billion Be Enough?
The Hedge Fund Collapse


Source: Portfolio.com: Top 5 | 14 Nov 2008 | 6:00 pm

The ways stores entice shoppers to buy

Marketing expert Martin Lindstrom says stores have ways to get shopppers to spend. Kai Ryssdal gets him to reveal some.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

Drop in consumer spending has merits

Is it really so bad that consumer confidence continues to erode? Commentator Amity Shlaes says that if consumers aren't spending, then they're saving, investing or beefing up that college fund, and that can be a good thing.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

Automaker woes and bailout switcheroo

The $700 billion bailout isn't just about banks anymore, and automakers are begging for a cut. Kai Ryssdal recaps the week with Jerry Seib of the Wall Street Journal and Leigh Gallagher from Fortune magazine.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

Investors line up to exit hedge funds

Hedge fund investors can withdraw their money only once a year, and Nov. 15 is the day. Fund managers say requests to get out are unusually high this time. Sally Herships reports on what that could mean.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

The G-20 gathers to look for a cure

Leaders of the world's 20 biggest economies are meeting in Washington to work on the global economic crisis. Washington Bureau Chief John Dimsdale reports.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

Online shopping isn't clicking either

Google's ad business was supposed to be recession-proof. But Google and companies like it rely on search-related ads and fewer people are clicking on them. Stacey Vanek-Smith reports.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

Citigroup to raise card rates, cut jobs

If you've got a Citigroup credit card in your wallet, be prepared. The company plans to start raising interest rates for some customers. And it's rumored to be considering tens of thousands more job cuts. Jeremy Hobson reports.
Source: Marketplace | 14 Nov 2008 | 5:27 pm

FTSE 100 climbs up (AFP)

AFP - London shares advanced on Friday led by oil and commodities despite concerns over a looming recession.

Source: Yahoo! News: Business | 14 Nov 2008 | 5:21 pm

Nicola Expects U.A.E., Saudi, Qatar to Weather Downturn

Source: Bloomberg - All Podcasts | 14 Nov 2008 | 5:21 pm

Sun Micro to cut up to 6,000 jobs

Computer hardware maker Sun Microsystems is to cut up to 6,000 jobs in a bid to reduce costs.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 5:20 pm

Eurozone officially in recession

The eurozone officially slips into recession after new figures show that the economy contracted 0.2% in the third quarter.
Source: BBC News | Business | World Edition | 14 Nov 2008 | 5:02 pm

Sun (JAVA): Fire CEO Schwartz And Chair McNealy And Save $4 Million

Fire the two clowns who run Sun Microsystems (JAVA) and the firm saves about $4 million in cash compensation. Compared with the 5,000 to 6,000 people the company will let go to save about $700 million the amount may seem small, but every little bit helps.

Sun has fired people in several restructurings since Jonathan Schwartz took the CEO job from Scott McNealy, a Harvard man who is one of company's founders. The duo have managed to get the Sun stock price from $25 in October of 2007 to $4 today. It seems only right that they hold hands and leave with the people whose jobs they have been responsible for.

According to the Sun proxy, which came out in September, McNealy made $1 million in base salary and $782,000 in non-equity incentive compensation. Schwartz had a base salary of $1 million and got over $1 million in non-equity comp of his own.

Schwartz also got a $52,000 car allowance. He must have a pretty nice ride.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 4:38 pm

Liam Dann : The day the credit crunch hit crisis point

While equity markets continue to behave as erratically as a three-year-old on a sugar high, there is a slightly more reassuring picture of the credit crunch emerging. Take a look at the graph above. It is nicknamed the Ted Spread...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Brian Gaynor : Unemployment stats point to fate of economy

Unemployment statistics have become one of the most important indicators as far as the economy is concerned because any further job losses will prolong the downturn. Based on this assessment, the recent rise in unemployment is...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Car industry bailout low on gas

Senate Democrats pressed ahead yesterday with plans to vote next week on a US$25 billion ($44.27 billion) emergency loan plan for US carmakers as the motor industry and business groups readied a lobbying onslaught to overcome Republican...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Microsoft man on mission for millions

As Microsoft's chief financial officer, Chris Liddell might be one of the most powerful executives in the world but he is also the dad rooting for his sons on the sideline of the American football pitch, and the Kiwi working to open...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Fisher move sparks speculation

Infrastructure specialist Lloyd Morrison has snapped up a 26 per cent stake in fund management firm Fisher Funds, spurring talk that Morrison may be preparing for future public private infrastructure investments with the new National-led...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Plunge in profits has Rakon tumbling

Former market darling Rakon plumbed an all-time low yesterday after reporting a 66 per cent plunge in half-year profits. Shares in the quartz crystal components maker fell as much as 45c, or 26.6 per cent, to $1.24 - well under...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Treasury paints grim picture of growth but Key sticks to guns

On Thursday, Treasury painted a very ugly economic picture for the incoming National government with cash deficits increasing, growth shrinking, tax revenue diminishing and unemployment rising. Prime Minister elect John Key was...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

Brent Sheather: Nothing warm about negative returns

Venture capital, a concentrated equity portfolio, big bets on small companies, an investment strategy so secret not even its own shareholders are allowed to know exact details of the portfolio. You might think that this is the latest...
Source: New Zealand Herald - Business | 14 Nov 2008 | 4:00 pm

How Does $14 Trillion In Consumer Debt Get Paid Back? It Doesn't

US consumers have taken on $14 trillion in debt, which may not seem like a lot, but it is up 137% in a decade. That is what rising housing prices and easy credit will get the economy, a total sum of capital borrowed which cannot ever be paid back.

According to Reuters, "At $14 trillion, the debt load is now roughly equal to the entire economy's annual output. " A great deal of this money was taken from financial firms for home mortgages, credit cards, and car loans, just the kind of loans people cannot pay back in a recession, especially those poor citizens who have lost their jobs.

The "Catch 22" of the economy as it stands now is that credit has become exceedingly tight and employment has become endangered. Citigroup (C) said it would raise rates on its plastic which may make it more money but will also cause a rise in default rates.

As the economy contracts, the relationship of debt to GDP goes in the wrong direction and, in a period when it would be best to see consumers with cleaner balance sheets, matters deteriorate instead.

If GDP falls at a rate of 5% next year, it will wipe out about two years of gains. In a leveraged society that would cause a default on more than 5% of the consumer debt load. Little capital is coming to the consumer, so little that he may not be able to stay solvent. "Deleveraging", as it is quaintly called, works that way. That would put at least $3 trillion to $4 trillion in debt at risk of default measured against the growth in debt since 2006.

Any analyst or economist looking at these numbers would probably conclude that pushing $700 billion of relief into the current liquidity hole is not sufficient. It would also seem that the $1 trillion in write-offs which financial institutions worldwide have taken due to the credit crisis is only the beginning of a process which will become much more painful and costly

Where will all the money come from to cover these losses? The answer is "no where."

Douglas A. McIntyre.

Source: 24/7 Wall St. | 14 Nov 2008 | 3:48 pm

24/7 Day Trading Alerts: Strip Club, Naked Lady Stock Rocks (RICK)(WYNN)(NOK)(TXN)(QCOM)(ERIC)

Rick’s Cabaret (RICK) may be in a business which many investors disapprove of. It runs strip clubs. Nonetheless, the stock is soaring today.

Another vice stock, Wynn (WYNN) is trading heavy on a new stock offering.

After Nokia's warning that global handset sales have gone to hell, stocks in the sector including Texas Instruments (TXN), Qualcomm (QCOM), and Ericsson (ERIC) are having a bad day.

Douglas A. McIntyre

Source: 24/7 Wall St. | 14 Nov 2008 | 2:51 pm

China, Back To Candles & Rice Farming

Source: 24/7 Wall St. | 14 Nov 2008 | 2:17 pm

Wallets Wide Shut

As if warnings and bankruptcies by retailers weren't signs enough, the government has released a strong confirmation that consumer spending has squealed to a halt.

Retail sales shrank 2.8 percent in October, the fourth consecutive monthly fall and the steepest decline since the Commerce Department began keeping records in 1992. September sales fell a revised 1.3 percent.

The October slump was felt across a broad range of retailing categories. Of the 13 categories, only three showed small gains in sales for the month. One, perhaps not surprisingly, was "food services and drinking places." Thank goodness that the new Depression doesn't have prohibition.

Retail sales may only get weaker as job losses mount and worries persist over the automobile industry and some financial institutions. Tighter restrictions and higher rates on credit cards will also keep wallets shut. That's a big problem as consumer spending accounts for some 70 percent of the economy.

Earlier this week, David Leonhardt of the New York Times noted in his column: "With Wall Street edging back from the brink, this crisis of consumer confidence has become the No. 1 short-term issue for the economy. Nobody doubts that families need to start saving more than they saved over the last two decades. But if they change their behavior too quickly, it could be very painful."


Related Links
The Limits of Unemployment Statistics
Job Security
Fed: Wall Street Needs More Time


Source: Portfolio.com: Top 5 | 14 Nov 2008 | 2:00 pm

Bernanke leaves door open to another rate cut

Warning that financial markets remain under "severe strain," Federal Reserve Chairman Ben Bernanke pledged today to work closely with other central banks to fix global financial problems and left open the door to a fresh interest rate cut to help brace the sinking U.S. economy.

Source: L.A. Times - Business | 14 Nov 2008 | 1:41 pm

Brother, Can You Spare $14B?

Freddie Mac, along with its sister Fannie Mae, was seized by the government in September and is splashing out the red ink.

The mortgage-finance company has reported a loss of $25.3 billion for the third quarter, reflecting largely charges and write-downs on deferred tax assets and on securities in its portfolio.

The loss means that the company's net worth is less than zero, meaning that liabilities outstrip its assets. As a result, Freddie is asking the Treasury for $13.8 billion under its agreement with the government. Freddie says it expects to receive the funds by November 29.

The government put Freddie and Fannie into conservatorship in order to pump enough capital into them to keep them operating and help to steady the housing market. Estimates of how much taxpayers may need to spend on the two companies vary, but today's results suggest that the total will be very large indeed.

"These companies don't really care what they report right now" that their shares are trading under $1, Paul Miller, an analyst at Friedman Billings Ramsey Group told Bloomberg News. "You could very well get losses north of $100 billion on both of these companies."



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Source: Portfolio.com: Top 5 | 14 Nov 2008 | 1:30 pm