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Canada unveils auto bailout planCanada has unveiled a plan to ease pressure on hard-pressed automotive parts suppliers and dealers in tandem with C$4bn in emergency loans to the local subsidiaries of General Motors and ChryslerSource: Financial Times - US homepage | 21 Dec 2008 | 1:27 pm Ten chains 'face closure' in 2009Experts say at least 10 retail chains are at risk of going bust in January as figures show 82% of big retailers are cutting prices.Source: BBC News | Business | World Edition | 21 Dec 2008 | 12:50 pm Getting $120 Trillion Into The Global Economy
The does not include the short-term capital the the Fred is pumping into banks through its emergency lending window. On the other side of the Pacific, the Chinese have their own package for reviving their slowing economic system. Last month, the government in the world's most populated country said it would lay out over $600 billion in the next two years. Spreading the investment of the money over such long periods of time may mean the effect will be too late to halt the current recession. It may keep the downturn from moving into a multi-year catastrophe, if the sums are enough. The head of the IMF says that the amounts the the world's governments want to pump into the economic system are not nearly enough. According to Reuters, "The IMF has called for fiscal stimulus -- higher government spending and temporary tax cuts -- worth $120 trillion, or 2 percent of global annual economic output, to fill the gap caused by slumping private demand following the credit crunch." The arguments about how much is enough will fiddle while Rome burns. It is becoming increasingly clear as the deep economic downturn moves from country to country that the proposed stimulation packages being put on the table are not helping the markets or major financial institutions. If they do not help job creation and business and consumer spending the IMF will have called the ball, meaning the US government $1 trillion program will be like going after an elephant with a pea shooter. Douglas A. McIntyre Source: 24/7 Wall St. | 21 Dec 2008 | 12:26 pm Canadian Aid To GM (GM) And Chrysler Will Cover Two Week's Expenses
The trouble with the capital from Canada is the it will only add two weeks so of wiggle room for the two American companies. According to Reuters, "General Motors of Canada Ltd is eligible for loans of up to $C3 billion and Chrysler Canada Inc for up to C$1 billion." The amounts are less than 20% of the money the US government has put into a short-term bail out. Without a big rescue package from the EU, GM and Chrysler can't make it into the middle of April unless the Obama administration want to issue a stay of execution. Douglas A. McIntyre Source: 24/7 Wall St. | 21 Dec 2008 | 11:05 am Chinese banks to help finance Taiwan investors (Reuters)Reuters - China reached out a hand to diplomatic rival Taiwan on Sunday, offering Taiwanese investors on the mainland $19 billion in financing over the next three years, the latest in a flurry of economic diplomacy by Beijing.Source: Yahoo! News: Business | 21 Dec 2008 | 10:36 am Chinese banks to help finance Taiwan investorsSHANGHAI (Reuters) - China reached out a hand to diplomatic rival Taiwan on Sunday, offering Taiwanese investors on the mainland $19 billion in financing over the next three years, the latest in a flurry of economic diplomacy by Beijing.Source: Reuters: Business News | 21 Dec 2008 | 10:36 am ECB situation different to Fed on rates: Bini SmaghiROME (Reuters) - The European Central Bank is in a very different situation to the U.S. Federal Reserve, which has cut interest rates almost to zero, ECB executive board member Lorenzo Bini Smaghi said in an interview published on Sunday.Source: Reuters: Business News | 21 Dec 2008 | 10:15 am ECB situation different to Fed on rates: Bini Smaghi (Reuters)Reuters - The European Central Bank is in a very different situation to the U.S. Federal Reserve, which has cut interest rates almost to zero, ECB executive board member Lorenzo Bini Smaghi said in an interview published on Sunday.Source: Yahoo! News: Business | 21 Dec 2008 | 10:15 am ECB situation different to Fed on rates: Bini SmaghiROME (Reuters) - The European Central Bank is in a very different situation to the U.S. Federal Reserve, which has cut interest rates almost to zero, ECB executive board member Lorenzo BiniSource: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 10:15 am IMF head worried about lack of fiscal stimulusLONDON (Reuters) - International Monetary Fund chief Dominique Strauss-Kahn said a lack of fiscal stimulus by governments to tackle the global slowdown may make a bad 2009 even worse, according to an interview released on Sunday.Source: Reuters: Business News | 21 Dec 2008 | 8:21 am Chinese banks to offer loans to Taiwan investorsBEIJING (Reuters) - China pledged on Sunday to make available to Taiwan investors in the mainland 130 billion yuan ($18.99 billion) in financing over the next three years.Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 8:03 am A Beverly Hills investor's ties to Madoff sink manyMany in Los Angeles' Jewish community had invested with Stanley Chais, who had seemed like a low-key safe bet. But he had bet all their money in the alleged Ponzi scheme run by Bernard Madoff. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Bill would allow retirees to let nest eggs sit in '09A measure awaiting Bush's signature waives the requirement that a percentage of savings must be withdrawn. Retirees...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Capital Gains Taxes: Top Tips From Folio InvestingVIENNA, Va., Dec. 21 /PRNewswire-USNewswire/ -- Capital gains tax is a tax incurred on the profit realized from the sale of an asset that was purchased at a lower price. You need...Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 8:00 am Can you afford it now?Southern California real estate prices have fallen off a cliff, and buyers are finding that homes and communities that had been out of reach are now in their price range. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Warner Music videos removed from YouTubeNegotiations over licensing fees stall. Warner Music Group's videos began disappearing from YouTube this weekend,...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Give Wall Street scammers hard timeThe Madoff scandal exposes gaping holes in the regulatory system. There's a scene in Woody Allen's "Hannah and...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am He says no to flimsy flip-flopsThe founder of Rainbow Sandals in San Clemente developed rubber footwear that lasts for years. The gig: Founder and chief executive of...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am New California GPS law opens a window of opportunityWindshield mounting, previously illegal, will be allowed in two corners of the glass (not in the middle). How well will it work? ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am More lenders allow 'early workout' loan alterationsHomeowners in financial trouble no longer need to miss two to three months of payments before their mortgage companies can modify their unaffordable loan terms. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Second set of children presents second set of challengesNorth Hills woman will have difficulty retiring with modest savings and four adopted kids to provide for. Patricia...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Bernard L. Madoff is ethically bankrupt -- just like our nationIt is likely that the country needs to stop talking about values. Wall Street financier Bernard L. Madoff offers even more proof that we have none. (" No Hollywood ending in Madoff investment case ," Dec...Source: Infocious RSS raw feed - channel BNPaperBusiness | 21 Dec 2008 | 8:00 am Japan drafts record budget to revive economyJapan drafted a record 88.55 trillion yen (1.01 trillion dollar) budget for fiscal year 2009 in a bid to revive Asia's biggest economy, which is slipping deeper into recession, officials...Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 7:25 am IMF urges spending to spur growthIMF chief Dominique Strauss-Kahn tells the BBC that governments will need to spend more to stimulate economic activity.Source: BBC News | Business | World Edition | 21 Dec 2008 | 6:26 am Economic Preview: Data will contain nothing but coal this weekEconomic data to be released this week won’t add any cheer to holiday celebrations, economists say.Source: MarketWatch.com - Top Stories | 21 Dec 2008 | 5:01 am Areva, Mitsubishi Heavy to tie-up in nuclear fuel: reportJapan's Mitsubishi Heavy Industries and major French nuclear energy company Areva will form a capital tie-up in nuclear fuel production, according to a report. Areva will buySource: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 3:58 am Russia and Ukraine again face New Year gas showdownRussia is heading towards another New Year's showdown with the embattled Ukrainian government over its failure to pay off gas debts amid apparent deadlock in negotiations, analysts say.Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 3:37 am Crisis taking the shine out of luxuryChanel fashion's decision to call off a prestigious but costly global art show is the latest sign that even the shine of the luxury industry is beginning to wear thin due to the crisis.Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 3:22 am U.S. seeks more detail from American/BA on tie-upWASHINGTON (Reuters) - The U.S. government has asked American Airlines, British Airways Plc and Spain's Iberia to supply new information about the potential impact of their proposed...Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 3:18 am U.S. seeks more detail from American/BA on tie-upWASHINGTON (Reuters) - The U.S. government has asked American Airlines, British Airways Plc and Spain's Iberia to supply new information about the potential impact of their proposed alliance on competition.Source: Reuters: Business News | 21 Dec 2008 | 3:18 am Slovaks spend last korunas on Christmas market before euro switchThe Christmas market in Bratislava's main square has become a popular meeting point for Slovaks who want to spend their last korunas before the country switches to the euro on January 1,...Source: Infocious RSS raw feed - channel BNewsBusiness | 21 Dec 2008 | 3:13 am Obama ups jobs goal to 3 millionPresident-elect Barack Obama has decided to increase his goal for creating new jobs after receiving economic forecasts that suggest the economy is in worse shape than had been predicted, two Democratic officials told CNN.Source: Business and financial news - CNNMoney.com | 21 Dec 2008 | 2:50 am Big inauguration equals big price tagWhen President-elect Barack Obama takes the oath of office next month, the nation's capital will be the site of a massive celebration. But local officials are worried they might get stuck with the check.Source: Business and financial news - CNNMoney.com | 21 Dec 2008 | 2:39 am Wall Street: Brace for a volatile weekInvestors return Monday for the last few trading days of what has been a tumultuous year and face a slew of economic reports in a holiday-shortened trading week.Source: Business and financial news - CNNMoney.com | 21 Dec 2008 | 2:34 am The Layoff Kings: The Companies That Cut The Most In 2008 (C)(HPQ)(T)(GM)(BAC)(SBUX)(WFC)(DOW)(JAVA)(JPM)(AMR)(MRK)
The business headlines have been filled with reports of layoffs nearly every day in the last half of the year. A lot of these have come at big, profitable companies, which says something about what they expect in 2009. Obviously, many of the largest cuts came at firms such as Citigroup, which are struggling to stay afloat, or firms such as Bear Stearns which simply disappeared. Here is the 24/7 Wall St. 2008 report on the twenty largest layoffs by company. If a firm cut more than once during the year, those numbers have been combined for an annual total. We extend special thanks to Challenger, Gray & Christmas for its help. 1. Citigroup announced layoffs of just over 73,000. The big bank announced last month that it would let over 50,000 people go on top of 23,000 already fired or that were in the process of leaving. New CEO Vikram Pandit has done an especially poor job of getting Citi back on track. The firm’s stock has fallen from a 52-week high of $31.14 to $7.83. Several stock analysts have cut their fourth quarter earnings estimates. The government’s bailout of the bank, put together last month, may not be enough. Citi may have to raise more capital and fire more people. 2. The Bank of America (BAC) buyout of Merrill Lynch will cost 35,000 people their jobs. There are overlaps at the companies particularly the research and investment banking divisions. A total of 11% of the combined workforce will be shown the door. The layoffs at the newly merged company may not be over. Bank of America is considered undercapitalized. It took on a lot of home mortgages when it bought Countrywide. The net effect of that is that its stock is off as much as Citi’s over the last three months. The BAC roll-up of Merrill and Countrywide probably won’t work without a lot more costs cut. 3. General Motors (GM) has said that its cuts for this year add up to almost 34,000 people. That number is modest compared with the number of jobs the company took out in 2006 and 2007. If the firm goes into Chapter 11 cuts for 2009 may go up again. 4. Hewlett-Packard (HPQ) is one of the most successful tech companies in the world, perhaps because it is ruthless as keeping costs down. It bought IT consulting firm EDS earlier this year and slashed 25,000 people while mashing the two operations together. 5. Lehman Brothers simply does not exist anymore. In September, the company filed for Chapter 11. Some of the people in divisions bought by other companies or kept open waiting for buyers may be OK, but more than 23,000 poor souls were shoved out of work. 6. AT&T (T) is another company which is doing remarkably well, but does not want to face a hard economy with excess staff. The one part of the firm which has done very badly is its traditional landline business. The number of people and businesses who keep a traditional phone is dropping. Too many customers are moving to cell service of VoIP. The phone company chopped 12,000 people earlier this month. Added to other, smaller cuts and the total for the year is more than 17,000. 7. DHL Express cut almost 15,000 people. The ground and air shipping industry is being torn up by people who save money by using the post office or electronic delivery. DHL rivals Fedex (FDX) and UPS (UPS) are also having a hard time. DHL’s parent, Deutsche Post World Net, closed its land and air shipping operation in the US in early November. 8. The California Department of Education shows that the public sector is not being sparred. California has gone to the federal government for aid because of a massive budget deficit. The state is paying some vendors with IOUs and is threatening to cut some services completely. In the midst of all that 14,000 teachers will be out of work. If over-muscled governor Arnold Schwarzenegger cannot get California’s books balanced, the state will be letting a lot more people go. 9. Starbacks (SBUX) founder Howard Schultz came back to the company as CEO when he saw that the people he had put in place to run the company were screwing it up. His return did not make that any better. No one at the firm wanted to believe that customers would not pay $4 for a fancy cup of coffee in a recession, especially when McDonald’s was selling the same product for $2. To keep Starbucks in the black it closed over 600 stores and fired more than 12,000 people. The premium coffee business is not getting any better. The job cuts at Starbucks are not over. 10. Chrysler let over 12,000 people of this year on top of all those who left in 2007. Since the car company is on the brink of Chapter 11, the number of workers who leave the company may still move way up. 11. Citigroup tried to buy Wachovia, but Wells Fargo (WFC) snuck in a side door and got the prize. This was one of a number of large bank and brokerage house mergers. It probably would not have mattered who bought Wachovia. To save money and cut redundant services, the firm cut more than 11,000 jobs 12. Dow Chemical (DOW) is another profitable operation where earnings are being squeezed by the economic downturn. To combat falling margins, the firm is closing 20 plants and laying off 5,000 workers and 6,000 contractors. All those people being let go will be happy to hear the company is keeping its dividend. 13. NASA has said it will need fewer people when the space shuttle goes into retirement. The agency that put a man on the moon is cutting nearly 11,000 jobs. 14. The State of California makes the list twice as it chops seasonal jobs to preserve more cash. That means fewer lifeguards and guards at the state capital. It may also take longer to get a driver’s license. The cuts total more than 10,000 people .15. Sun Microsystems (JAVA) is one of the worst run tech companies in the world. To stay ahead of its revenue trouble it likes to make big jobs cuts every year. In 2008, the total is 9,500. Instead of one big layoff, Sun decided to make one announcement early in the year and one last month. Sun will take a charge of about $600 million. No wonder the stock trades at just over $4. A little over a year ago, shares changed hands at $24. What is surprising is that CEO Jonathan Schwartz is still on board. 16. Bennigan’s filed for Chapter 7 in July. People just can’t afford to eat out the way that they used to. The restaurant company’s 150 company-owned stores shut down. Over 9,000 people lost jobs. 17. JP Morgan Chase (JPM) bought the banking operations of Washington Mutual, a bank which had become bloated with home mortgage loans made when real estate prices were flying up. JPM raised $10 billion to cover the costs of the transaction. It will get part of that money back by cutting over 9,000 people. 18. Bear Stearns simply disappeared in March after being in business for 85 years. JPMorgan bought the place for $2 a share. Because of rumors about Bear’s mortgage holdings customers started to pull their money out. The investment house was gone before it had a chance to say goodbye to its staff. JPM did not need all those bankers and brokers. More than 9,000 people were forced out of work. 19. American Airlines (AMR) was a victim of high fuel costs. Faced with rumors it could not finance its operations with oil well above $100, it had to cut the number of routes it was flying, the number of planes it operated, and more than 8,500 jobs 20. Merck (MRK) was just one of the Big Pharma firms that made big cuts this year. Bristol-Myers (BMY) recently said it would have to go through another round of cuts as patents run out on drugs and price pressure from generics rise. The harsh environment and a forecast of a bad 2009 caused the firm to chop more than 8,000 people. It is hard to believe that just 20 companies have cut over 400,000 people in less than a year, but it is only the tip of the iceberg. Douglas A. McIntyre Source: 24/7 Wall St. | 21 Dec 2008 | 1:54 am Canada unveils plan to help auto industryTORONTO (Reuters) - Canada will follow the United States by providing C$4 billion ($3.3 billion) in emergency loans to the Canadian arms of Detroit's ailing automakers to keep them operating while they restructure their businesses, Prime Minister Stephen Harper said on Saturday.Source: Reuters: Business News | 21 Dec 2008 | 12:26 am Canada unveils plan to help auto industry (Reuters)
Source: Yahoo! News: Business | 21 Dec 2008 | 12:26 am Aer Lingus in shock 2009 profit forecastAER LINGUS will this week drastically revise its 2009 trading forecasts as part of its defence against a hostile bid from Ryanair. It will say it could return to profit next year, or break even, rather than lose €20m (£18.6m).Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Ministers hire UBS for sale of Royal MailTHE government has accelerated its controversial plans to part-privatise the Royal Mail with the appointment this weekend of investment bank UBS to help find an investor.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Website homes in on the crashFOUND, at last – a property business that has had a successful 2008. It’s name? Housepricecrash.co.uk.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am High street braced for Christmas sales carnageUP to 15 national retail chains are predicted to go bust before the middle of January, forcing thousands more shopworkers onto the dole.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am City regulators probe Madoff’s London firmCITY regulators are to scrutinise the operations of Madoff Securities International, the London business controlled and chaired by Bernard Madoff, the man behind the $50 billion ($£33 billion) alleged fraud that has sent shockwaves round the financial world.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Civil Aviation Authority crackdownTHE Civil Aviation Authority has launched a criminal action against online travel agent Travel Republic because it does not participate in a government scheme designed to protect holidaymakers stranded abroad.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Who is the business person of the year?Rudyard Kipling would have made a good judge for our annual competition to find the business person of the year. Over the past 12 months the winners in business have had to pass the test posed by Kipling in “If”, his best-known poem, and “meet with Triumph and Disaster, and treat those two impostors just the same”.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Crunch leaves government casino plans in tattersTHE country’s leading gaming companies have scaled back plans to bid for the 16 new casino licences that were created last year, leaving the government’s strategy for the industry in disarray.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Keith Mills’s row with Coutts hots upTHE row between Sir Keith Mills and Coutts has escalated with the Nectar loyalty card tycoon demanding the private bank guarantee the future of a controversial savings scheme from AIG, the stricken American insurance group.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am Taxpayers to stump up Jaguar loanMINISTERS are considering a direct government loan of several hundred million pounds to Jaguar Land Rover, the Midlands carmaker whose sales have been wiped out by the credit crunch.Source: Latest Business News from Times Online | 21 Dec 2008 | 12:00 am West Coast Bank Donates $5,000 to Police Bombing VictimsLAKE OSWEGO, Ore., Dec. 20 /PRNewswire-FirstCall/-- West Coast Bank has contributed $5,000 to the benefit funds of the Woodburn police officers who were victims of last...Source: Infocious RSS raw feed - channel BNewsBusiness | 20 Dec 2008 | 11:09 pm Ariane makes final launch of 2008A European Ariane rocket carries into orbit two satellites for the same major operator, the first time this happened.Source: BBC News | Business | World Edition | 20 Dec 2008 | 10:44 pm Retailers pushing holiday sales as storm looms (Reuters)
Source: Yahoo! News: Business | 20 Dec 2008 | 10:12 pm Retailers pushing holiday sales as storm loomsSAN FRANCISCO (Reuters) - Retailers opened their doors early to recession-weary shoppers on Saturday in a final, frenzied push to save holiday sales with the added disruption of a winter storm heading for the country's Midwest and Northeast.Source: Reuters: Business News | 20 Dec 2008 | 10:12 pm Best stocks for 2009We're mired in the grizzliest bear market in decades. But the good news is that stocks have been marked down to holiday-sale levels. Here are ten stocks we think are poised for strong returns in 2009 and beyond.Source: Business and financial news - CNNMoney.com | 20 Dec 2008 | 10:02 pm NewsWatch: With D.C. on holiday, U.S. stocks may get new dose of bah, humbugStock investors looking for a little year-end cheer may instead find themselves finishing the holidays with another dose of bah, humbugSource: MarketWatch.com - Top Stories | 20 Dec 2008 | 10:00 pm Large foundation tied to Madoff losses says it will closeThe Picower Foundation, a large U.S. charity that's given hundreds of millions of dollars to medical research and educational initiatives, says it's closing its doors, another victim of the alleged fraud perpetrated by Bernard Madoff, according to published reports.Source: MarketWatch.com - Top Stories | 20 Dec 2008 | 8:50 pm Japan unveils economic aid, Belgian government falls (Reuters)
Source: Yahoo! News: Business | 20 Dec 2008 | 8:36 pm Japan unveils economic aid, Belgian government fallsLONDON/NEW YORK (Reuters) - Japan, Germany and Canada pledged new measures on Saturday to confront a financial crisis that has toppled banks, endangered the global auto industry and now played a part in the demise of Belgium's government.Source: Reuters: Business News | 20 Dec 2008 | 8:36 pm Canada to aid car manufacturersThe Canadian government pledges C$4bn in loans to rescue subsidiaries of US car manufacturers there.Source: BBC News | Business | World Edition | 20 Dec 2008 | 7:58 pm Will the auto bailout work?General Motors and Chrysler LLC are finally getting the money they need to avoid an imminent collapse. But will the bailout actually get them back on the road to profits?Source: Business and financial news - CNNMoney.com | 20 Dec 2008 | 6:55 pm Bush throws lifeline to U.S. automakersWASHINGTON (Reuters) - President George W. Bush bailed out U.S. automakers on Friday with $17.4 billion in emergency loans as he sought to stave off a collapse that would have cost hundreds of thousands of jobs.Source: Reuters: Business News | 20 Dec 2008 | 6:22 pm After Steve Jobs - who runs Apple?Source: Business and financial news - CNNMoney.com | 20 Dec 2008 | 6:19 pm Canada offers $3.29 billion in loans to aid carmakersCanada's federal government and Ontario will offer $3.29 billion in loans to Canadian subsidiaries of the Detroit automakers, according to published reports.Source: MarketWatch.com - Top Stories | 20 Dec 2008 | 6:08 pm US stocks pause ahead of holidays (AFP)
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News: Stock Markets News | 20 Dec 2008 | 5:36 pm Obama picks climate specialist as science adviserUS President-elect Barack Obama underscored his intent to push initiatives on climate change by naming John Holdren, an energy and climate specialist, as the new White House science adviserSource: Financial Times - US homepage | 20 Dec 2008 | 5:07 pm NewsWatch: With D.C. on holiday, U.S. stocks may get new dose of bah, humbugStock investors looking for a little year-end cheer may instead find themselves finishing the holidays with another dose of bah, humbugSource: MarketWatch.com - Top Stories | 20 Dec 2008 | 5:00 pm US to send more troops to AfghanistanThe United States is looking to send 20,000 to 30,000 extra troops to Afghanistan by the beginning of next summer, the chairman of the US joint chiefs of staff saidSource: Financial Times - US homepage | 20 Dec 2008 | 4:43 pm Warner Music pulls out of YouTube licensing dealWarner Music has demanded that YouTube pull down all videos from its artists and songwriters, in a move affecting millions of pieces of professional and user-generated contentSource: Financial Times - US homepage | 20 Dec 2008 | 4:04 pm Software maintenance firms see opportunity in downturnIf the small guys have it right, this could be a chance to steal the titans' lunch.Source: MarketWatch.com - Top Stories | 20 Dec 2008 | 4:01 pm 'Merciless' banks fail customersBanks have come under fire for not heeding Reserve Bank Governor Alan Bollard and sharing struggling borrowers' pain. While falling interest rates - driven by Bollard's enthusiastic cuts to the official cash rate - offer respite to...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Developer rising from the ruinsIf there's one mistake Andrew Krukziener will admit to, it is turning down a $14 million offer to buy the land the Metropolis tower now stands on - a week after he'd paid $11 million for it. That was 14 years ago and the consequences...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Simple steps to increase your home's valueDuring the property market's heated phase, home owners saw the value of their houses soar without having to do so much as lift a paintbrush - but the sands have shifted. Even long time property investor Olly Newland is surprised...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Bernard Hickey: Property pain only just begunIt's tempting to think the worst is over for the housing market. Interest rates are falling fast. In March the two-year fixed mortgage rate was the most popular and hit a high of 9.64 per cent. Now the most popular rate is the...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Development a risky businessFourteen years ago, when the first eager investors began snapping up Metropolis apartments off the plans, Andrew Krukziener never even considered failure. The word had never entered his business vocabulary in the past so why should...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Learn to rein in ChristmasDraw up a budget and cut up your credit card - that will help keep your bank balance in the green over the Christmas break. Sam Bejjani, general manager of financial management organisation enableMe, says the main reason people...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Top tips: Boosting productivity without breaking the bankBusiness communication specialists McMahon Dods on how to boost productivity and be cost-efficient in the current business climate What can I do to get the skills needed to boost productivity? Chances are, like a lot of other...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Test case could help hundreds of angry Blue Chip investorsAuckland Barrister Paul Dale is preparing what he considers will be a test case between Blue Chip investors and GE Finance, an action that could bring hope to investors faced with losing their homes. The case, involving about $500,000,...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm First-home buyers staging comebackSince Reserve Bank Governor Alan Bollard cut the official cash rate by a whopping 150 basis points earlier this month - topping October's then record-breaking 100 basis point cut - chief executive of Mike Pero Mortgages, Shaun Riley,...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Personal banking with a latteThe Bank of New Zealand is trying one of its most radical experiments yet with the traditional bank branch. Gone is the centre-stage teller line and the waiting area outside bankers' private offices. Instead, the inside of its...Source: New Zealand Herald - Business | 20 Dec 2008 | 4:00 pm Gas prices edge lowerGasoline prices dropped Saturday after four straight days of increases, according to a daily survey of gas station credit card swipes.Source: Business and financial news - CNNMoney.com | 20 Dec 2008 | 2:09 pm NewsWatch: Detroit gets its wish -- $17 billion in U.S. loansEnding months of roller-coaster negotiations, President Bush moves to extend up to $17.4 billion in loans to troubled U.S. auto makers.Source: MarketWatch.com - Top Stories | 20 Dec 2008 | 2:00 pm Personal Finance Daily: The week's 10 best Personal Finance stories: Dec. 15-19In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Dec. 15-19:Source: MarketWatch.com - Top Stories | 20 Dec 2008 | 1:01 pm Barney Frank To Paulson: Do It My Way (C)(BAC)
Instead of buying toxic junk off bank balance sheets, he gave a number of banks "loans" to help improve their balance sheets. It now appears that some of the $350 billion will go to Detroit. Paulson appears to want the next and last installment of the money, another $350 billion. He has not said why. Perhaps over the holidays another big bank will get into trouble and he will have to engineer another quick bailout. Barney Frank, Congress's, "TARP czar", says he might agree to encourage the release of the money, if Paulson will spend it the way Frank thinks it should be. According to Bloomberg, "Lawmakers will agree to release the funds in exchange for Treasury Secretary Henry Paulson and Obama agreeing to programs that cut interest rates and forgive a portion of a mortgage’s principal." It really does not matter to Paulson. In less than a month, he will be heading off to live in his mansion and serve on corporate boards. At some point he may even run for the Senate like another former Goldman Sachs (GS) CEO, John Corzine. It should matter a great deal to the new administration. A lack of flexibility in using TARP funds could cause a lot of trouble down the road, especially if firms like Citigroup (C) and Bank of America (BAC) get into more hot water. Given the fourth quarter write-offs that are beginning to show up at financial firms and the recent S&P downgrade of eleven banks, there may well be more trying times ahead of American financial firms. The other issue with using the TARP for mortgages is that it will be nearly impossible to review hundreds of thousand of troubled mortgages to see which homeowners needs help and which do not.The government can set standards, but who will impose them and who will track whether they are working? Bailing out troubled mortgages one at a time could take months. Amnesty can be a complicated process. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Dec 2008 | 12:48 pm China offers Taiwan economic aidA senior Chinese official says China will consider any request for help from Taiwan during the global financial downturn.Source: BBC News | Business | World Edition | 20 Dec 2008 | 12:41 pm Stating The Obvious: No Credit, No Car Sales
Jackson stated the obvious yesterday, but it is an obvious which cannot be stated enough. According to The Wall Street Journal, Jackson said, In the current situation where loans are hard to get, "it's like trying to run an airline without jet fuel," he said. "In the auto business, consumer credit is the jet fuel." That fact makes the current plan to save Detroit a quart low. The program approved by the Bush Administration focuses on cutting costs by twisting the arms of the UAW, creditors, and suppliers. The idea is to bring the cost of running The Big Three way down. There is nothing wrong with the idea, but if vehicle sales in the US keep dropping though 2009 and into 2010, the large cut in expenses won't make enough of a difference to offset plunging revenue. If the government really wants to do something for the industry, it will expand the number of people who quality for low-interest car loans. Consumer access to credit is locked up. Financial institutions do not want to lend money to people who will buy an asset which is likely to lose a great deal of its value the minute it leaves a dealership. An auto-loan assistance program with the government backing the difference between a vehicle's value and value of the loan taken out to pay for it would get financial institutions back into the car lending business overnight. And, dealerships would stop looking like ghost towns. Douglas A. McIntyre Source: 24/7 Wall St. | 20 Dec 2008 | 12:21 pm
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