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AOL names Google's Tim Armstrong as CEOAOL has lured away a senior executive at Google to be its new chief executive officer and chairman.Source: Latest Business News from Times Online | 13 Mar 2009 | 11:34 pm American Apparel Secures Needed Investment (APP)
The notes provide for a security interest in all assets of the company and its subsidiaries, subject to prior liens under the existing revolving credit facility. Lion Capital also received warrants for an aggregate amount of 16 million shares of American Apparel common stock. They can be exercised at a strike price set at a 5% premium to the 30-trading day average of $2.00 per share with a March 2016 expiration. This would equate to a pro forma ownership in American Apparel of approximately 18%. Neil Richardson and Jacob Capps of Lion Capital intends to join the board of directors of American Apparel. American Apparel will use the proceeds to retire its existing second lien credit facility. American Apparel will not issue any additional warrants to SOF Investments (prior lien holder). The remaining proceeds will be principally used to reduce the outstanding balance under its revolving credit facility, repay a portion of a shareholder note, pay fees and expenses related to the transaction, and for working capital purposes. The early indications show American Apparel up 17% at $1.75 in early pre-market trading indications. Its 52-week trading range is $1.20 to $10.25. Jon C. Ogg Tagged: APP      Source: 247 Wall Street | 13 Mar 2009 | 12:23 pm Global market rebound set to continue at US open (AP)
Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 12:23 pm Stock futures jump as Citi chairman fuels bank optimism (Reuters)
Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 12:22 pm Wall Street set to extend gains for 4th session (AP)
Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 12:22 pm Fitch cuts top rating on Buffett's BerkshireSINGAPORE (Reuters) - Warren Buffett's Berkshire Hathaway was stripped of its 'AAA' credit rating by Fitch, barely hours after S&P cut General Electric Co's top-tier rating, as the global financial crisis pummels America's corporate titans.Source: Reuters: Business News | 13 Mar 2009 | 12:17 pm More stimulus needed? PossiblyWell, that didn't take long.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 12:15 pm Oil below $47 after 11 percent jumpSINGAPORE (Reuters) - Oil edged down below $47 a barrel on Friday ahead of OPEC's meeting this weekend which pushed prices up by more than 11 percent in the previous session, helped by better-than-expected economic data.Source: Reuters: Business News | 13 Mar 2009 | 12:15 pm Tax havens offer concessions on bank secrecyBERNE/VIENNA (Reuters) - Switzerland, Austria and Luxembourg offered concessions on Friday in a bid fend off a global crackdown on tax evasion but insisted their bank secrecy principles remains intact.Source: Reuters: Business News | 13 Mar 2009 | 12:15 pm Oil climbs ahead of OPEC meetingOil prices continued to rise Friday morning, after surging nearly $5 a barrel in the previous session, as investors eyed rising stock prices and a meeting of key producers.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 12:14 pm £50000 to be won in our free Fantasy Fund Manager gameThe Telegraph in association with JP Morgan is offering readers the chance to win £50000 worth of prizes in our free Fantasy Fund Manager competition.Source: Telegraph Finance | 13 Mar 2009 | 12:12 pm Finance ministers and bankers lay G20 groundworkFinance ministers and central bankers from the G20 nations arrive in the UK today to lay the groundwork for the meeting of leaders from the 20 biggest economies in two weeks in London.Source: Latest Business News from Times Online | 13 Mar 2009 | 12:11 pm Switzerland to cooperate on tax evasionThe Swiss government has agreed to exchange information with other states investigating tax evasion.Source: Telegraph Finance | 13 Mar 2009 | 12:10 pm Icahn: no plans to shop Lions GateLOS ANGELES (Reuters) - Activist investor Carl Icahn said he has no plans to push for a sale of Lions Gate Entertainment Inc in the current environment, but criticized the Hollywood studio's expenses for being too high and called its purchase of TV Guide "reckless."Source: Reuters: Business News | 13 Mar 2009 | 12:08 pm Icahn: no plans to shop Lions Gate (Reuters)Reuters - Activist investor Carl Icahn said he has no plans to push for a sale of Lions Gate Entertainment Inc in the current environment, but criticized the Hollywood studio's expenses for being too high and called its purchase of TV Guide "reckless."Source: Yahoo! News: Business | 13 Mar 2009 | 12:08 pm O'Reilly leaves Independent firmSir Anthony O'Reilly, the chief executive of the Ireland's Independent News & Media, is to step down.Source: BBC News | Business | World Edition | 13 Mar 2009 | 12:06 pm UPDATE 1-Healthways to settle lawsuit with former employeeMarch 13 (Reuters) - Healthcare management provider Healthways Inc agreed to a $28 million settlement of a lawsuit related to its former Diabetes Treatment Center of America business and said it would...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 12:05 pm Tax havens offer concessions on bank secrecy (Reuters)Reuters - Switzerland, Austria and Luxembourg offered concessions on Friday in a bid fend off a global crackdown on tax evasion but insisted their bank secrecy principles remains intact.Source: Yahoo! News: Business | 13 Mar 2009 | 12:04 pm UPDATE 1-Pacific Energy gets creditor protection in CanadaMarch 13 (Reuters) - Pacific Energy Corp said it obtained creditor protection in Canada after filing for Chapter 11 bankruptcy earlier this month, adding that the decline in crude oil prices made it difficult...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 12:03 pm Switzerland eases banking secrecySwitzerland, Austria, and Luxembourg become the latest countries to agree concessions on bank secrecy.Source: BBC News | Business | World Edition | 13 Mar 2009 | 12:02 pm Another auto supplier may fallRead full story for latest details.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 12:00 pm Oil rise above $47 as investors eye OPEC meetingKeeping prices in check was a report from International Energy Agency, which lowered its estimate for global oil demand in 2009. Benchmark crude for April delivery was up 58 cents to...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:56 am Oikocredit: Profit for Good UseFinancial Statements 2008 Show Solid Fundamentals and Positive Results AMERSFOORT, The Netherlands, March 13 /PRNewswire/ -- In a time when most financial...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:53 am American Axle gets "going concern" notice (Reuters)Reuters - American Axle & Manufacturing Holdings Inc's auditors have said the auto supplier may go out of business because of pressure on its main customers, General Motors and Chrysler .Source: Yahoo! News: Business | 13 Mar 2009 | 11:48 am American Axle gets "going concern" noticeNEW YORK (Reuters) - American Axle & Manufacturing Holdings Inc's auditors have said the auto supplier may go out of business because of pressure on its main customers, General Motors and Chrysler .Source: Reuters: Business News | 13 Mar 2009 | 11:48 am Euro saviour?Will the euro save Eastern Europe's economies?Source: BBC News | Business | World Edition | 13 Mar 2009 | 11:45 am Fitch cuts Roche rating on Genentech dealLONDON, March 13 (Reuters) - Fitch Ratings on Friday cut its credit rating and outlook on Roche Holding citing the company's increased debt after a deal was reached for it to buy the 44 percent it did...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:44 am Chinese premier Wen Jiabao worried about US debt.Wen Jiabao casts doubt over China's willingness to provide financial support for President Obama's 787bn stimulus plan.Source: Telegraph Finance | 13 Mar 2009 | 11:42 am Ex Google exec in at AOLTim Armstrong, a former Google executive, was named the new chairman and Chief Executive Officer of AOL, according to a statement released Thursday.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 11:40 am Top Analyst Upgrades (ALU, AGN, AMAG, EIG, JPM, LOGI. MCD, PALM)
Alcatel-Lucent (ALU) Raised to Outperform at Baird. JON C. OGG Tagged: AGN, ALU, AMAG, EIG, JPM, LOGI. MCD, PALM      Source: 247 Wall Street | 13 Mar 2009 | 11:38 am FTSE 100 heads for best week in two monthsThe bluechip index of the UK's 100 leading companies is heading for its best week in more than two months but investors remained doubtful that markets have ended their losing streak.Source: Telegraph Finance | 13 Mar 2009 | 11:33 am Knight Capital Group Releases February 2009 Volume StatisticsJERSEY CITY, N.J., March 13 /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (Nasdaq: NITE) today released U.S. equity volume statistics for the month of February 2009 atSource: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:30 am Associated Materials and AMH Holdings Report Fourth Quarter and Year-End ResultsCUYAHOGA FALLS, Ohio, March 13 /PRNewswire/ -- Associated Materials (the "Company") today announced results for the quarter and fiscal year ended January 3,...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:30 am Twitter business model found!Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 11:23 am Sara Lee weighs sale of European business: report(Reuters) - Sara Lee Corp , which is focusing on its core food and beverage business, is examining a sale of its European household and personal-care business, the Wall Street Journal said,Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:21 am Sara Lee weighs sale of European business: report(Reuters) - Sara Lee Corp , which is focusing on its core food and beverage business, is examining a sale of its European household and personal-care business, the Wall Street Journal said, citing people familiar with the matter.Source: Reuters: Business News | 13 Mar 2009 | 11:21 am Stocks look for gain No. 4Friday the 13th could be a lucky day for investors, who appeared ready to extend the week's stock rally to a fourth straight session.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 11:17 am Babcock & Brown faces collapse after creditor voteThe investment firm collapsed into bankruptcy, ending the public life of the Australian group that for years cut a swathe on the world stage with its particular brand of infrastructure investingSource: Financial Times - US homepage | 13 Mar 2009 | 11:17 am Switzerland breaks with tradition on tax evasionThe Swiss government says it will cooperate on cases of international tax evasion, breaking with a long-standing tradition. The Finance Ministry under President Hans-Rudolf Merz said...Source: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:17 am Let's thank Bernard Madoff for a fraud we can at least all understandWell that was quick. Over in an hour and a quarter. Guilty plea. Jail. Our Serious Fraud Office really does have a lot to learn.Source: Telegraph Finance | 13 Mar 2009 | 11:16 am Madoff fraud investigation widensWith Bernard Madoff now behind bars, attention turns to whether others were involved in his $50bn (£35bn) fraud.Source: BBC News | Business | World Edition | 13 Mar 2009 | 11:12 am American Axle gets "going concern" noticeNEW YORK (Reuters) - American Axle & Manufacturing Holdings Inc's auditors have said the auto supplier may go out of business because of pressure on its main customers, General MotorsSource: RSS feed - channel BNewsBusiness | 13 Mar 2009 | 11:10 am Sir Anthony O'Reilly makes way for his son Gavin at Independent News ? Media helmSir Anthony O'Reilly is to step down at a time of mounting pressure for the indebted newspaper group.Source: Telegraph Finance | 13 Mar 2009 | 11:09 am CNN.com: The Stewart-Cramer smackdownSource: Business and financial news - CNNMoney.com | 13 Mar 2009 | 11:08 am Clash over stimulus spending clouds G20 outlookLONDON (MarketWatch) -- Don't look for the world's most powerful economic policy makers to come up with a sweeping prescription for a deepening global and disastrous financial crisis when they gather this weekend in southern England.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 11:08 am China 'can boost stimulus plan'China's Premier Wen Jiabao says Beijing can boost its economic stimulus package should the global crisis deepen.Source: BBC News | Business | World Edition | 13 Mar 2009 | 11:07 am China worried about safety of U.S. debtRead full story for latest details.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 11:06 am Stocks futures point to higher Wall St open(Reuters) - Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes are up 0.3-0.6 percent, pointing to a higher start on Wall Street on Friday.Source: Reuters: Business News | 13 Mar 2009 | 11:01 am Goldman Sachs Dumps Wal-Mart From Conviction Buy List (WMT)
JON C. OGG Tagged: WMT      Source: 247 Wall Street | 13 Mar 2009 | 10:50 am FDIC says it may raise guarantee fees: report(Reuters) - Federal Deposit Insurance Corp (FDIC) officials advised the largest U.S. banks on March 9 that they may be charged more for the agency's debt guarantees, Bloomberg said, citing people familiar with the matter.Source: Reuters: Business News | 13 Mar 2009 | 10:43 am On Berkshire: Loses AAA, Buffett Salary & No AIG (BRK-A, AIG)
It also looks like the Oracle of Omaha took a $100,000.00 salary. When you come in at #2 in the world’s billionaires list on Forbes, who needs a salary? Buffett also told Bloomberg in another interview that he also was given the opportunity twice to invest in (rescue) American International Group Inc. (NYSE: AIG) but he refused. He merely noted that the insurer needed more than what he could provide. On top of Buffett defending and explaining many of his positions early this week in a long CNBC interview, it has been a pretty active week at the insurance giant and conglomerate. Jon C. Ogg Tagged: AIG, BRK-A      Source: 247 Wall Street | 13 Mar 2009 | 10:37 am Stocks futures point to higher Wall St open (Reuters)
Source: Yahoo! News: Business | 13 Mar 2009 | 10:26 am Stocks futures point to higher Wall St open (Reuters)Reuters - Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes are up 0.3-0.6 percent, pointing to a higher start on Wall Street on Friday.Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 10:24 am Buffett's Berkshire loses 'perfect' ratingRead full story for latest details.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 10:24 am Sir Anthony O'Reilly: sporting legend and respected businessmanSir Anthony Tony O'Reilly a sporting legend and respected businessman has had a difficult year.Source: Telegraph Finance | 13 Mar 2009 | 10:19 am Currencies: Euro gains ground as equities riseThe euro consolidates recent gains versus the U.S. dollar and gains ground versus the Japanese yen Friday as equity markets continue their rebound.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 10:19 am Will GE (GE) Dump Forecasts After Debt Downgrade?
Some analysts think that GE (GE) will use a downgrade of its debt by S&P as cover for reducing forecasts for earnings out of its large financial unit. It would be an admission by the conglomerate’s management that the ratings agency knew more about the company’s prospects than the company did. According to Bloomberg “General Electric Co. may reduce its 2009 profit target for GE Capital after Standard & Poor’s lowered debt ratings and predicted “considerably weaker” results for the finance arm.” It seems unlikely that GE management would be so craven as to use the credit downgrade as a way to unmask reduced forecasts that it must have known about for weeks. Such as action would also be terribly transparent. GE cutting forecasts on the heels of the S&P action would make the company look bad in a way that its stock performance has not. It would raise the issue of whether GE is willing to game the system of what analysts say about the firm as an excuse for poor forecasting. Douglas A. McIntyre Tagged: GE      Source: 247 Wall Street | 13 Mar 2009 | 10:18 am Bear Stearns: One year since its collapseHow will you mark the anniversary of Bear Stearns' demise? With a quiet celebration if you're JPMorgan Chase.Source: Business and financial news - CNNMoney.com | 13 Mar 2009 | 10:14 am IEA warns non-Opec oil supply growth at riskThe world will have to rely on the Opec oil cartel alone for any increase in oil production this year because countries outside the group will fail to raise their supply, the developed world's energy watchdog saidSource: Financial Times - US homepage | 13 Mar 2009 | 10:10 am Europe Says It Has Spent Enough To Save Economy
At the G20 summit, where the US and several Asian nations said that they were ready to pony up more cash to save the world, most countries on the continent demurred. According to Reuters, “We consider that in Europe we have already invested a lot for the recovery, and that the problem is not about spending more, but putting in place a system of regulation so that the economic and financial catastrophe that the world is seeing does not reproduce itself,” French President Nicolas Sarkozy told a news conference. What was left out of the conversation about which nations want to shovel more money into the system and which simply want stricter rules about how it is spent is that the European central banks may be seeing resistance to raising more money. With the US, Japan, and UK in the international markets raising capital, there may be a squeeze on that is making finds more expensive. The debt of France may not be as attractive as US debt. If so, France may not be willing to pay a premium to add to its coffers. Either the members of the EU think that the US is foolish to focus on spending and not regulating, or European countries can’t afford to play the game of who can raise the most capital. Douglas A. McIntyre       Source: 247 Wall Street | 13 Mar 2009 | 10:03 am Commodities Corner: Silver's discount to gold sticks out like a sore thumbSilver's trading at an eye-catching discount to gold these days, and some analysts have been debating whether the white metal is severely undervalued given its many industrial uses and its ability to double as a precious metal.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 10:00 am More Price Pressure On OPEC
The effort to get oil prices back up and get more money flowing to OPEC members who are becoming increasingly desperate for cash got a blow as estimates of crude consumption for this year were cut. According to MarketWatch, “The International Energy Agency on Friday revised down its forecast for 2009 global oil demand by around 300,000 barrels a day to 84.4 million barrels a day, or a roughly 1.5% fall year-on-year, on a reassessment of demand prospects.” If the recession hits levels estimated by the IMF and World Bank a 1.5% drop in demand may only be the beginning of a long period when the economies of the US, Europe, Japan, and even China do not need anywhere near the amount of oil they have required over the last decade. Cautious consumers and businesses may simply lose their ability to pay for as much oil, diesel, and gasoline as they have in the past. If the American economy has double digit GDP drops two or more quarters in a row and Chinese factory production and exports keep diving, OPEC may only be seeing the early stages of its troubles. Douglas A. McIntyre       Source: 247 Wall Street | 13 Mar 2009 | 9:48 am SAS prices $700 million rights issue at big discountSAS Group, the owner of Scandinavian Airlines, confirms plans to raise 6 billion Swedish kronor ($700 million) via a rights issue -- heavily discounted -- to bolster its financial position.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 9:43 am Savers should act now to maximise returnsThe reduction in the base rate to 0.5 on Thursday was a bitter blow for savers but the signs aren't good for borrowers either.Source: Telegraph Finance | 13 Mar 2009 | 9:38 am Movers & Shakers: Friday's biggest moving stocksAmong the companies whose shares are expected to see active trade in Friday’s session are Time Warner Inc., Toyota Motor Corp. and Berkshire Hathaway, Inc.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 9:35 am China Admits US Debt Is Losing Favor
According to the FT, the Chinese premier said, “We have lent a huge amount of money to the United States. Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried. I request the US to maintain its good credit, to honour its promises and to guarantee the safety of China’s assets.” Since the price of credit default swaps on US Treasuries is going up, the financial markets share some of China’s concerns. It would be nice to believe that there are no storm flags up as the US goes further and further into debt. But, the combination of what is likely to be falling tax revenue due to the recession and increased spending to bailout a rising number of segments of the economy as they falter means that the costs of getting GDP back into green numbers is rising by the day. It may be that the Administration and Congress will be faced with the limits of American borrowing power sooner than they realize. It will come as a shock that the supply of capital for the government is not limitless. But, the fact is that the walls are closing in. Douglas A. McIntyre       Source: 247 Wall Street | 13 Mar 2009 | 9:34 am Oil dips below $45 a barrel before Opec meeting$The price of oil slipped below $45 a barrel this morning as Opec member states prepared to gather in Vienna to consider further production cuts.$Source: Latest Business News from Times Online | 13 Mar 2009 | 9:33 am Nikkei climbs on stimulus hopesJapanese shares see their sharpest one-day gain of 2009 after the government pledges to outline a stimulus plan by April.Source: BBC News | Business | World Edition | 13 Mar 2009 | 9:30 am FTSE 100: Will this week's bounce bear a bitter harvest?The jury is still very much 'out' as to whether this week's bounce is just a bear market correction or an indication of something better.Source: Telegraph Finance | 13 Mar 2009 | 9:29 am The gold rush: Is it too late to jump on the bandwagon?Savers have been snapping up gold. But is their timing right?Source: Telegraph Finance | 13 Mar 2009 | 9:17 am Fixing The Car Industry By Fixing Cars (F)(GM)(TM)
There are several reasons this may not happen and they will make being in the business of making and selling new cares less attractive even when the recession ends. The US car companies will have to augment what they do now to become profitable and remain profitable because the business that they were in for a century has changed too much. When growing tobacco started to become less profitable for farmers, they rotated some portion of their land to growing corn. Between feed and the ethanol industry they did well. As a matter of fact, the ethanol industry had a supplier and that allowed the alternative energy movement to grow into an industry. The stages of car ownership that work to the benefit of the car company and its dealers begin when the consumer buys a car, but often ends when the auto warranty expires. Once car owners have to pay real cash to keep their vehicles running, they often try to find alternatives to dealer-based service. The small business website Manta lists 135, 967 auto repair shops in its directory. There are probably many more than that but getting an accurate count of businesses that may employ only one or two people is almost impossible. The National Automobile Dealers Association, in contrast, reports that about 21,000 car dealers employed 1.1 million people in 2006. Since there are probably more than 100 million cars and light trucks on the road, many people are getting their cars repaired at some place other than a new car dealership. As car sales have dropped, the relationship between the manufacturers and dealers has become extremely contentious. The dealers blame the auto companies for a lack of good products and access to consumer credit. The car companies want the dealers to buy more inventory to give them much-needed cash flow. Dealers are going out of business and fairly soon Chrysler and GM may be gone. The idea that car sales are going to go back to the 16 million level even if GDP begins to grow rapidly is a pipe dream. Americans realize that a well-built, well-maintained car is good for 100,000 miles or more and perhaps six or seven years of use. Americans are learning that the hard way because they can’t afford new cars, but it is a lesson which is not likely to be unlearned. People are going to keep cars longer and fewer new cars are going to be sold. New car companies are in the business of selling parts, and, by the way, making refurbished engines. Parts suppliers to the major car companies are insolvent in some cases and almost every firm in the industry is facing years of declining demand. The maintenance of cars that are no longer new but have to be repaired over time is a tremendously large and very profitable business. Building and selling new cars has lost most of its luster. And, it is not a stand alone industry any more. There is too much competition and not enough money in it. A company like Ford has the opportunity to get into a very profitable business which would bring in billions of dollars in sales a year with only a very modest investment. A car owner who has a vehicle that was made in 2005 with 80,000 miles on it can probably be made nearly new. It can certainly by rebuilt so that it is at the level that a “certified pre-owned” car is. Most of the auto dealers take low mileage trade-ins and, after a few modest repairs, sell them as nearly new. They even carry a warranty. A car dealer with skilled mechanics and parts from the original manufacturer can take a four- or five-year-old car and transform it into one that operates like a one-year old car with a modest amount of work. It is profitable work for the car dealer and the car company which supplies the parts. It helps keep parts manufacturers in business and pushes up sales through the entire chain of industries that make, sell, and service automobiles. If Ford does go into the business of rebuilding millions of its own cars for customers, the group that will suffer is independent mechanics. The first and most powerful argument against a major car company refurbishing its own used products is that it will keep people from buying new cars. In some cases that is true. But, the fact that Ford’s sales monthly are down as much as 40% undercuts the logic. As people keep cars longer, the argument will be less compelling. Most new vehicle buyers now probably fall into two groups. The first are people whose vehicles are so old or badly damaged that they need a new car. The other group is people who want a new car, can afford a new car, and will walk into a dealer and buy one any day they please. By not refurbishing a Ford and making money in the process, the No.2 US car company risks having some of its owners buy a Toyota (TM) when the time comes. But, a Ford owner who wants his Ford made “good as new” is going to come back to Ford (F). The counter to the concern that people who want a rebuilt car will not buy a new car is that dealerships are empty, as empty as graveyards at midnight. Offering to refurbish cars at a fair price will bring in a lot of customers. Most of those people will at least look at the new models. With $5,000 cash back and 0% financing for a decade, some of those customers will trade in what they have and leave with the latest model. Right now, those potential buyers won’t set foot in a dealership. Once their warranties are up, they will go to the least expensive mechanic with a reasonable reputation and ask him to install rebuilt parts. Ford and its peers have a chance to revitalize most of the dealerships, their suppliers and their own companies while making a lot of money in the process. The cost of refurbishing a car can be financed, just like a used car can be. A person who pays $4,000 to upgrade a car he already owns is probably a better risk than someone who buys a used car with 20,000 miles on it for $20,000. The car company has a chance to make money on each and every customer who comes in to have his car improved. Ford could also wait and hope that it will have 15% of a US car market that produces 16 million vehicle sales. It will be waiting for a day that will never come. Douglas A. McIntyre Tagged: F, GM, TM      Source: 247 Wall Street | 13 Mar 2009 | 9:10 am Anthony O'Reilly steps down as head of INMAnthony O’Reilly is standing down as chief executive of Independent News and Media (INM), it was announced this morning.Source: Latest Business News from Times Online | 13 Mar 2009 | 9:09 am Indications: U.S. stock futures suggest markets are ready to rally againU.S. stock futures indicate a stronger start for Wall Street on Friday, which would mark four days of gains in a row, in a quiet day for corporate news and little economic data on which to focus.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 9:09 am Madoff says felt compelled to deliver "at any cost"NEW YORK (Reuters) - Bernard Madoff, who cultivated a worldwide mystique as he churned out amazingly steady returns for his investors year after year, finally admitted it was all a lie, saying he had felt compelled to deliver "at any cost."Source: Reuters: Business News | 13 Mar 2009 | 9:03 am In The Blink Of An Eye, The Economy Got Better
The first trigger for the elation was a comment by one of the least respected executives in the recent history of Wall St. Vikram Pandit, who many think ran Citigroup (C) into the ground. He said recently that the bank had been profitable for the first two months of the year. If this week marks the bottom of the stock market and the beginning of the end of the recession, his words will join “Remember The Alamo” and “The British Are Coming” in the history books. Just two days after Pandit’s comment, the head of another beleaguered firm, Bank of America (BAC), said the company would not need another dime from the government and that it would make money in 2009. Ken Lewis has been maligned for his role in buying brokerage firm Merrill Lynch and then not noticing that it had lost $15 billion late last year. And, oh yes, then may have illicitly paid some of that money in bonuses to Merrill management. There were more signs of recovery to come today! GM (GM) said that the $2 billion that it was supposed to need in March could sit in the Treasury a little longer. The car company did not say exactly why it still had money. Perhaps it decided not to pay most of its suppliers or got dealers to make early payments for inventory. What might have derailed the good feeling about a big recovery in the economy was the announcement of retail sales for last month. They were well down compared to last year, but, in Wall St.’s special language “not as bad as expected.” There were green lights everywhere, but not enough momentum to turn on the afterburners that keep traders moving into the market. That last ingredient showed up when GE (GE) disclosed that S&P had cut its coveted AAA rating to AA+. Some expected the downgrade to be worse or that S&P would indicate it saw more bad news coming for the large conglomerate. That did not happen. So, the news was “better than expected” and whatever gravity had been holding stocks down disappeared. Two important announcements were largely unnoticed. The first was that several measurements of unemployment worsened, approaching levels not seen since the early 1980’s. Also obscured by the elation was the important disclosure that the average American household lost 18% of its net worth last year. Since that process has obviously continued in the first two months of this year, that number could be close to 25%. At its core, the information is a considerable warning that the ability of Americans to become consumers again is still severely compromised. It is another clear sign that the balance sheets of large financial firms which have exposure to mortgages or any type of consumer credit are likely to be faced with more losses, even if they are unexpected. That seems possible since all of the bank losses of the last two years were unanticipated, at least according to the managements at the companies. The musing of bank presidents are a bad set of leading economic indicators. So is news that a car company which is already insolvent will not need money today. It will need that money tomorrow, and tomorrow and tomorrow. Douglas A. McIntyre Tagged: BAC, C, GE, GM      Source: 247 Wall Street | 13 Mar 2009 | 9:03 am BofA seeks more jumbo mortgages: report (Reuters)Reuters - Bank of America Corp is seeking to produce more "jumbo" mortgages, which can range from $417,000 in most areas to as much as $729,750, Barbara Desoer, the bank's head of mortgage, home equity and insurance services told Bloomberg in an interview.Source: Yahoo! News: Business | 13 Mar 2009 | 8:55 am World markets rally on recovery hopes (AFP)
Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 8:52 am London stocks rise at open (AFP)
Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 8:46 am Nikkei soars 5.2% as Asian stocks rise on financials, oilMost Asian markets jump on Friday to end the week on a buoyant note, with financials pacing the advance after an extended rally on Wall Street, while energy-related stocks rise on firm crude-oil prices.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 8:35 am Berkshire loses top credit ratingWarren Buffett's company was stripped of its AAA credit rating, barely hours after General Electric lost its top-tier rating, as the global financial crisis pummels America's corporate titansSource: Financial Times - US homepage | 13 Mar 2009 | 8:08 am London Markets: Banks and insurance stocks lead London higherU.K. shares jump higher in the final session of the week, with banks and insurance stocks leading a broad-based rise.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 8:03 am Sales up at pub firm WetherspoonPub operator JD Wetherspoon says it has had a "successful" half year after reporting a rise in sales.Source: BBC News | Business | World Edition | 13 Mar 2009 | 8:01 am Wetherspoons attacks Government over taxationJD Wetherspoon, the pubs group, hit out at the Government for imposing “unsustainable” levels of tax on the industry as it reported a 2 per cent rise in profits.Source: Latest Business News from Times Online | 13 Mar 2009 | 8:00 am Administration for Australia bankAustralia's second largest investment bank, Babcock & Brown, has gone into administration.Source: BBC News | Business | World Edition | 13 Mar 2009 | 7:51 am Oil prices end Middle England's love affair with AgaAga Rangemaster, the upmarket kitchen supply group, announced a 46 per cent drop in pre-tax profits and scrapped its final dividend payment as hard-pressed consumers steered clear of the expensive stoves.Source: Latest Business News from Times Online | 13 Mar 2009 | 7:48 am Europe Markets: Europe stocks tick higher for a fourth day on FridayEuropean shares jump higher on Friday, with banks and oil producers leading a broad-based advance that put stocks on track for a fourth-straight session of gains.Source: MarketWatch.com - Top Stories | 13 Mar 2009 | 7:48 am Australian stocks: Market closes over 3pc upSYDNEY - The Australian stock market closed more than three per cent stronger after Wall Street extended its rally for the third consecutive session. At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 109.7 points, or...Source: New Zealand Herald - Business | 13 Mar 2009 | 7:23 am 'Sorry' is not enough, Madoff's victims sayAs the disgraced financier is taken away in handcuffs, victims of his Ponzi scheme still want to know whether he acted alone and whether they will be compensated. ...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Activision shares fall on stock sales by CEO, co-chairmanChief Executive Robert Kotick and co-Chairman Brian Kelly collectively sell millions of shares after exercising options due to expire this year and in 2010. ...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am The Venza: comfort food for Toyota loversThis crossover, resembling a slightly deflated Lexus RX, is a safe but boring choice. Don't bother parsing it...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Optimism prevails on Wall StreetStocks rise for a third consecutive session as investors respond to good news. But some fear another sell-off. ...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am 'Sorry' is not enough, Madoff's victims sayAs the disgraced financier is taken away in handcuffs, victims of his Ponzi scheme still want to know whether he acted alone and whether they will be compensated.Even with Bernard L. Madoff heading to prison Thursday after confessing to an epic Ponzi scheme, the intrigue over his case deepened as embittered victims pressed the government to find out who may have helped him and where the money went. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Final hurrah for men's retailer Kimmel-MeehanThe landmark haberdashery on Montrose's picturesque Honolulu Avenue is going out of business after more than 50 years.For more than 50 years, Kimmel-Meehan has tended to the fine clothing needs of generations of men from its storefront on Montrose's picturesque Honolulu Avenue. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Optimism prevails on Wall StreetStocks rise for a third consecutive session as investors respond to good news. But some fear another sell-off.Starved for months for upbeat news, Wall Street suddenly is getting some -- and investors are showing they haven't forgotten how to respond. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am California regulators approve Edison rate hikePlan to raise prices to fund infrastructure is protested by consumer groups, which dispute estimates of costs.Depending on who's calculating, monthly electric bills for many residential customers of Southern California Edison Co. will increase by between $2 and $4 because of a rate hike approved Thursday by utility regulators. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Watchmen looking for audiencesThe Warner Bros. superhero epic generates buzz but falls short of blockbuster status at the box office.Everybody is talking about "Watchmen." Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am The Venza: comfort food for Toyota loversThis crossover, resembling a slightly deflated Lexus RX, is a safe but boring choice.Don't bother parsing it. Toyota says the name of the new Venza is a phonological construction out of the words "adventure" and "Monza," the famous Italian racetrack. Good Lord. That's so far-fetched you need a starship to get there. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Peter Rice in line to be Rupert Murdoch's new No. 2The Fox Searchlight president, who brought 'Slumdog Millionaire' to the screen, is named to lead Fox Broadcasting.The low-key Fox movie executive who shepherded the offbeat Oscar winners "Slumdog Millionaire" and "Juno" was put in line Thursday to become Rupert Murdoch's No. 2, spearheading his News Corp. media empire in Hollywood and on Wall Street. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Biotech deals involve 3 firms in Bay AreaSwiss giant Roche says it will buy Genentech, in one of two mergers.The pharmaceutical industry's wave of consolidation hit California on Thursday with the announcement of two major deals, including Swiss drug giant Roche's agreement to pay $47 billion to gain full control of biotech pioneer Genentech Inc. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Lawmakers push cruise-safety billThe measure includes requiring cruise lines to install peepholes on cabin doors and report crimes at sea to U.S. agencies.Just days after FBI agents boarded a Princess Cruises ship in Los Angeles and booked a head waiter on suspicion of rape, lawmakers introduced legislation Thursday that would require cruise lines to report crimes at sea, improve ship safety and employ doctors trained in assault examinations. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Icahn berates Lions Gate top brassThe corporate raider ups the ante with an offer to buy up the firm's convertible debt.Carl Icahn, one of Wall Street's most feared corporate raiders, has taken off the gloves and ratcheted up his war with Hollywood's largest independent movie and television studio. Source: L.A. Times - Business | 13 Mar 2009 | 7:00 am Watchmen looking for audiencesThe Warner Bros. superhero epic generates buzz but falls short of blockbuster status at the box office. Everybody...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am General Electric loses top credit ratingWASHINGTON -- General Electric Co. lost its top credit rating from Standard & Poor's today over concerns of rising loan losses and lower earnings at its lending arm, GE Capital.Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Lawmakers push cruise-safety billThe measure includes requiring cruise lines to install peepholes on cabin doors and report crimes at sea to U.S. agencies. ...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am California regulators approve Edison rate hikePlan to raise prices to fund infrastructure is protested by consumer groups, which dispute estimates of costs. ...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Three Quest execs to pay more than $300,000 in fines to close backdating caseThe software maker improperly awarded millions of stock options from 1999 to 2002, the SEC says. An Aliso Viejo...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Biotech deals involve 3 firms in Bay AreaSwiss giant Roche says it will buy Genentech, in one of two mergers. The pharmaceutical industry's wave of consolidation...Source: RSS feed - channel BNPaperBusiness | 13 Mar 2009 | 7:00 am Chinese Premier concerned about assets in USThe Chinese Premier admitted this morning that his goal of 8 per cent growth for the world’s third-largest economy would be tough to meet this year, but he had more weapons in his armoury if need be to ensure Beijing reaches that target.Source: Latest Business News from Times Online | 13 Mar 2009 | 6:48 am NZ stocks: Market climbs over 1pcThe New Zealand share market gained along with a rising United States stock market but not at the same pace. The benchmark NZSX-50 index closed up 31.77 points, or 1.275 per cent, at 2523.394. Turnover was worth $80.90 million....Source: New Zealand Herald - Business | 13 Mar 2009 | 6:42 am Wen 'worried' about China's US assetsChina will increase public spending further this year to boost its economy if needed and already has contingency plans in place to do so, Premier Wen Jiabao said at his annual press conferenceSource: Financial Times - US homepage | 13 Mar 2009 | 6:35 am China says can spend more; U.S. banks cheer markets (Reuters)Reuters - China said it was ready to pump more money into its economy and saw a pick-up in trade, offering another glimmer of hope for the battered global economy as signs that big U.S. banks may be turning around lifted world stocks.Source: Yahoo! News: Stock Markets News | 13 Mar 2009 | 6:34 am Currency: Dollar rises to US52c markThe New Zealand dollar settled into a range today having risen to the highest level in about a month on the small cut in the official cash rate cut yesterday. By 5pm today the NZ dollar was buying US52.00c from US51.24c at 5pm...Source: New Zealand Herald - Business | 13 Mar 2009 | 6:03 am Fisher & Paykel thrown $80 million lifelineLeading New Zealand appliance maker Fisher & Paykel Appliances has secured a lifeline from banks until April 30. The company said today it had established an interim $80 million funding facility and negotiated a waiver of the group's...Source: New Zealand Herald - Business | 13 Mar 2009 | 5:25 am NAACP says bank giants steered blacks to bad loans (AP)
Source: Yahoo! News: Business | 13 Mar 2009 | 5:25 am Kiwi investors force Babcock & Brown in voluntary administrationDebt-laden investment firm Babcock & Brown Ltd has been placed into voluntary administration after NZ investors rejected a proposed debt restructure. Babcock says it has appointed David Lombe and Simon Cathro of Deloitte Touche...Source: New Zealand Herald - Business | 13 Mar 2009 | 4:30 am Get Paid to Roll Over Your Retirement Plan (Deal of the Day)Rising unemployment not only displaces workers, it displaces 401(k)s and other retirement accounts, too. And for brokerages, this trend has created a rare opportunity: a chance to steal retirement-account clients from their competitors. When layoffs occur, some employers automatically clear out the accounts of former employees with balances of $5,000 or less, while others charge higher fees if the former employee wishes to stick with the company plan, says Pamela Hess, director of retirement for Hewitt Associates, a human resources consultant. Hoping to grab these potentially lucrative long-term customers, brokerages like TD Ameritrade (AMTD) and E*Trade (ETFC) are offering cash bonuses of up to $500 and other incentives to those who either open a new IRA or roll over their existing account into one. “Rollover money is very sticky, and very profitable,” says Hess. “Companies are eager to woo those dollars.” But consumers shouldn't just move their cash solely for the bonus, warns Sheryl Garrett, founder of the Garrett Planning Network, a national group of fee-only financial planners. That strategy is OK if you were transferring a checking or savings account (more on those bonuses here). But with retirement accounts, choosing one based on its investment options and fees is much more important. Also, transferring 401(k), IRA or other retirement account balances is a process rife with potential tax missteps, says Ed Slott, a New York-based CPA who specializes in IRAs. “Do it wrong and you may get the $100 bonus, but now the $300,000 you transferred is taxable,” he says. (For tips on how to properly roll over your account, ready our story here.) Here are some of the bonuses currently being offered:
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Ahead of the 11PM episode, the AP reports that Stewart did not go easy on Cramer, even after JC did some pre-show buttering up of the TDS host:
NEW YORK - Jon Stewart hammered Jim Cramer and his network, CNBC, in their anticipated face-off on "The Daily Show."In an interview taped Thursday afternoon that went far beyond its allotted time, Stewart repeatedly chastised the "Mad Money" host and CNBC for putting entertainment above journalism. He also accused the financial news network of willfully ignoring corporate dishonesty.
For his part, Cramer disagreed with Stewart on a few points, but mostly agreed that he could have done a better job foreseeing the economic collapse. Cramer called himself a "fan of the show" and said his network was "fair game" to Stewart's criticism.
Source: Dealbreaker | 13 Mar 2009 | 2:00 amCitigroup to nominate new board members: report (Reuters)
Reuters - Citigroup Inc is preparing to nominate some four new members to its board, including former U.S. Bancorp chief executive Jerry Grundhofer, as soon as next week, according to the Wall Street Journal.
Source: Yahoo! News: Business | 13 Mar 2009 | 1:55 amCitigroup to nominate new board members: report
NEW YORK (Reuters) - Citigroup Inc is preparing to nominate some four new members to its board, including former U.S. Bancorp chief executive Jerry Grundhofer, as soon as next week, according to the Wall Street Journal.
Source: Reuters: Business News | 13 Mar 2009 | 1:55 amProfits up at Genesis Energy
Genesis Energy has reported a $48.93 million profit in the six months to December 31, up from $31.39m in the same period last year. The state owned energy company said the profit was bigger than it had expected. It attributed this...
Source: New Zealand Herald - Business | 13 Mar 2009 | 1:32 amRetail sales fall, hit by vehicle sales plunge
Retail sales fell in January as vehicle sales fell sharply and fuel sales also dropped. Total retail sales were down by a seasonally adjusted 1.1 per cent from December, with vehicle sales down 11 per cent and fuel sales down 2.6...
Source: New Zealand Herald - Business | 13 Mar 2009 | 1:00 amBusiness Briefs - Thursday
Apple to unveil iPhone software. The maker of the iPhone, iPod and Mac said it will hold an event Tue. to preview new software for its smart...
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amAfter The Close - Thursday
AEROPOSTALE (ARO), a specialty teen retailer, said its Q4 EPS rose 9% to $1.01, beating views by a penny. Revenue increased 17% to $690 mil....
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amObama Health Plan Could Benefit Hospitalist Doctors
On your way to work one morning, you get in a terrible car accident and are rushed to the hospital. You eventually wake up to find yourself lying...
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amJob Losses Hit Home: Unemployment Rise Hurts Housing Values
The latest U.S. job-loss figures spell out a troubling story for homeowners, in areas hit hard by the housing downturn and elsewhere.
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amTrends & Innovations - Thursday
New battery charges in seconds
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amIn Brief - Thursday
Imax (IMAX), a maker of movie systems, said its Q4 loss narrowed to 11 cents ex items, beating views by 3 cents. Revenue fell 13% to $28.1 mil....
Source: Investor's Business Daily: BUSINESS | 13 Mar 2009 | 12:36 amHigh hopes
Is the French plan to shake up the banlieue working?
Source: BBC News | Business | World Edition | 13 Mar 2009 | 12:01 amTourism dream fades
A tour operator tells how the number of visitors to Senegal is tumbling, as part of the BBC Africa economy week
Source: BBC News | Business | World Edition | 13 Mar 2009 | 12:01 amStandard Life's brush with equity death pays dividends
Standard Life's near-death experience has served it well. Five years ago, amid very familiar worries about the solvency of the nation's life insurers, the Edinburgh-based life and pensions giant was forced to dump £7 billion of equities and switch its portfolio towards less risky bond investments.
Source: Latest Business News from Times Online | 13 Mar 2009 | 12:00 amSir Fred Goodwin: Financial Services Authority accused of hypocrisy in blocking investors' revolt
The Financial Services Authority was accused of hypocrisy yesterday after it emerged that it had blocked an attempt last April by institutional investors in Royal Bank of Scotland to vote against Sir Fred Goodwin, then the chief executive.
Source: Latest Business News from Times Online | 13 Mar 2009 | 12:00 amLehman Brothers: Lawyer had to haggle to keep the lights on
A £600-an-hour City lawyer was left haggling with EDF, the French energy company, in a desperate attempt to keep the lights on at Lehman Brothers' London headquarters just hours after its American parent collapsed, it has emerged.
Source: Latest Business News from Times Online | 13 Mar 2009 | 12:00 amBofA chief says bank expects profit this year
Ken Lewis, chief executive of Bank of America, said that the bank was profitable for the first two months of 2009 and expected to make money for the full year
Source: Financial Times - US homepage | 12 Mar 2009 | 11:46 pmMadoff 'deeply sorry' as he pleads guilty to 11 charges
The former Nasdaq chairman and once-respected New York broker faces spending the rest of his life in prison after pleading guilty to 11 felony counts ranging from wire fraud and money laundering to making false filings to the SEC
Source: Financial Times - US homepage | 12 Mar 2009 | 11:42 pmAOL appoints Google executive as chief
Tim Armstrong, the president of Google's North American sales team, has been poached to be chief executive of AOL
Source: Financial Times - US homepage | 12 Mar 2009 | 11:30 pmFaint signs of economic life lift stock market (AP)
AP - Faint but welcome signs of optimism emerged Thursday from the most troubled corners of the economy the banking system, the automakers and cash-desperate stores and helped push the stock market to its best three-day run in four months.
Source: Yahoo! News: Stock Markets News | 12 Mar 2009 | 11:29 pmWall Street's "rocket" rise stirs doubts on staying power (Reuters)
Reuters - The three-day run-up in U.S. stocks on Thursday is bringing desperately needed relief for bruised investors, but the bounce off 12-year lows is stoking fears that it may be a little too rapid to be sustainable.
Source: Yahoo! News: Business | 12 Mar 2009 | 11:27 pmWall Street's "rocket" rise stirs doubts on staying power (Reuters)
Reuters - The three-day run-up in U.S. stocks on Thursday is bringing desperately needed relief for bruised investors, but the bounce off 12-year lows is stoking fears that it may be a little too rapid to be sustainable.
Source: Yahoo! News: Stock Markets News | 12 Mar 2009 | 11:27 pmIndicator: No Ads
The empty walls of the London Underground. Gareth Jones
Gareth sends this photo of a Tube station in London, noting that it's "usually full of advertising."
Send your photos and economic indicators to planetmoney@npr.org or add them to our Facebook group.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 10:24 pmWrite-Offs: 03.12.09
$$$ Nobel-prize winner backs world currency [The Australian]
$$$ Yale's Money Manager Says 'Buy' [Dealbook]
$$$ Welch condemns share price focus: Former GE chief calls shareholder value strategy 'insane' [FT]
$$$ "Ms. Burnett, whose day job is to report on the teetering economy, was shown last Sunday night shilling for Mr. Trump. It's one thing for NBC to promote the reputation of a business tycoon who makes money for the network; there's no synergy in denting the credibility of one of its most visible business reporters." [NYT]
Source: Dealbreaker | 12 Mar 2009 | 10:22 pmOh, You Thought That Was Money. It's Not Money. It's Stimulus.
The New York Times summed it up wonderfully yesterday:
Suppose the federal government gave you and your neighbor $500 each to buy a new bike, but what you really wanted was a $250 shopping spree for running gear instead. So you offered to sell your $500 federal check to your neighbor for $250 in cash so everyone's dreams could be realized.That is essentially what several cities in Los Angeles County planned to do with federal stimulus money, until the local transportation authority, its face slightly reddened, pulled the plug on the plans. A spokeswoman in Washington for the House Committee on Transportation and Infrastructure said Wednesday that the swaps would be illegal.
It is hard not to find some irony here. A Credit Surplus Swap? Nope. Forbidden. Stimulus money is a different kind of money. Spending it is a different kind of spending. We would have thought you'd understand that by now.
Cities' Plans to Swap Cash for Stimulus Are Stopped [The New York Times]
Source: Dealbreaker | 12 Mar 2009 | 9:22 pmThe Obama Rally!
Wow! Screaming right along! Maybe we can talk him out of messing with taxation on partnership interests if we get a little 2% and 20% going here.
The Obama Portfolio (Since Inception): +7.03%
Earlier: The Obama Portfolio
Source: Dealbreaker | 12 Mar 2009 | 9:13 pmHow the Dow Jones industrials fared Thursday (AP)
AP - Stocks rose for the third day Thursday after an accounting board told Congress it may recommend a let-up in accounting rules for troubled banks. Retail sales figures also came in better than anticipated, General Electric Co. saw its credit rating cut by less than expected, and General Motors Corp. said it will not need a $2 billion loan it previously requested from the government.
Source: Yahoo! News: Business | 12 Mar 2009 | 8:39 pmHow the Dow Jones industrials fared Thursday (AP)
Source: Yahoo! News: Stock Markets News | 12 Mar 2009 | 8:39 pmThe Taller They Are....
Economic upheavals often end up shuffling around a lot of names. One stadium sponsor slips beneath the dark, frigid waves, another brands its logo on the same spot without a second thought. One endorsement drops off, another endorsement steps up (but for a lot less dough). The tallest building in North America starts to see a lull in lease renewals and... it changes its name from "The Sears Tower" to "The Willis Tower."
This shouldn't be surprising, really. Sears moved their headquarters from the building in the 1990s. The terms of this most recent change, however, are surprising.
The Sears Tower has just shy of four million square feet available for tenants. How much of this is UK insurer Willis Group Holdings leasing to capture naming rights for the massive structure? About 3.5%. If it occurred to you that this might tell us quite a lot about who was in control of the negotiations, you aren't alone.
"233 S. Wacker Drive LLC," a group including, among others, Joseph Chetrit and American Landmark Properties, bought the 110 story building in 2004 for just under $850 million. It was then refinanced for about $780 million in 2007, when things were, shall we say, a bit more optimistic. The picture starts to fill out when you realize that Ernst & Young, a long-time Sears Tower tenant, reportedly declined to avail themselves of their 2012 option to renew their lease. At 380,000 square feet, their aversion to offices in the tallest building on the horizon comes as something of a blow. Naming rights? Sure thing! How soon can you move in?
Of course, we tried to reach Eddie ("ESL") Lampert to ask him why Sears would permit themselves to lose title to the highest restrooms above street level in the world (they are on the 103rd floor), but no one would return our calls.
Source: Dealbreaker | 12 Mar 2009 | 8:31 pmSwiss action sparks talk of 'currency war'
The Swiss National Bank moved to weaken the Swiss franc, the first time a big central bank has intervened in the foreign exchange markets since Japan sought to weaken the yen in 2004
Source: Financial Times - US homepage | 12 Mar 2009 | 8:14 pmJim Cramer Starting To Sweat
As previously mentioned, Jim Cramer was on Martha Stewart this morning, baking pies. The topic of tonight's appearance on Jon Stewart came up, of course, with M. Stewart telling JC that he ought to pretend the dough he was pounding "is Jon." To be honest, the whole TDS vs. CNBC got kind of boring to us last week, but we were sort of looking forward to some (dramatically staged) thrown down fisticuffs between two Jews. Now that our attention has been directed toward this "please don't hurt me business" from Cramer, we gotta say it doesn't look like that's going to happen:
In a prelude to his Daily Show duel tonight, Jim Cramer was on Martha Stewart's show this morning sounding a little conciliatory, offering up a sympathetic glimpse into his very soul -- perhaps in an effort to take the wind out of Jon Stewart's acerbic, piercing wit. "The reason why it's been so hard for me, the attacks, is that early on I patterned my show off of his, which is that you can do an entertainment business show," he told Martha. "And then suddenly to be attacked by a guy that's your idol makes it difficult."Is Jim Cramer Buttering Jon Stewart Up? [Daily Intel]
Source: Dealbreaker | 12 Mar 2009 | 8:02 pmEllen Zentner Sees Much `Pent-Up Demand' in U.S. Economy
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 7:48 pmShlaes Says Hoover, Roosevelt Made Great Depression Worse
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 7:44 pmPresented By:
Source: Dealbreaker | 12 Mar 2009 | 7:42 pmDivorce Clawbacks
Listen, girls... be careful about timing when it comes to that settlement. Strike the wrong balance between the cash bonus and more incentive aligned, long-term compensation in the deal and you might find yourself the subject of Divorce Settlement Clawbacks. Or perhaps, Alimony Modification.
A City fund manager hit by the credit crunch went to the Court of Appeal today in an attempt to secure a cut in the £9.5 million divorce settlement he made to his former wife.Bryan Myerson claimed that his former wife, Ingrid, was awarded 43 per cent of the couple's £25.8 million fortune when the settlement was agreed in February last year.
She was awarded £9.5 million cash, but he took most of his shares in the couple's stocks in Principle Capital Holdings, where Mr Myerson worked as a fund manager.
Since, the share price has plummeted by 90 per cent and the divorce, as it stands, leaves Mrs Myerson with 105 per cent of the couple's assets while her former husband, who still owes her £2.5 million in cash, would have to borrow money to pay her.
I say tough cookies Bryan. You were the one who elected to take your share in equities. Now we are supposed to give you a free put option to boot? Not to mention, that once you modify these terms, if the shares recover, Bryan is going to be sitting pretty and the Mrs. will be the one looking for modification.
City tycoon pleads poverty in £10m divorce [Times Online]
Source: Dealbreaker | 12 Mar 2009 | 7:42 pmDan Loeb Will DJ Way Through '09
We knew there was a reason we loved Third Point and here's what: musical accompaniment.
Source: Dealbreaker | 12 Mar 2009 | 7:34 pmHear: In Court With Bernie Madoff
Madoff arrives at court. Stan Honda/AFP/Getty Images
Bernie Madoff is headed to jail after pleading guilty to charges stemming from a massive Ponzi scheme. NPR reporter Jim Zarroli was at the courthouse today. He checks in with Planet Money to describe the scene and what happens next.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 7:32 pm'The Nature Of Slow Money'
Dante Hesse, organic dairy farmer, needs to raise $700,000. NPR
A bunch of you have been asking about economic growth and sustainability. Today on All Things Considered, we hear from an organic dairy farmer who has turned to his customers for help financing a bottling plant in his barn.
In his way, Dante Hesse is part of the new Slow Money movement. It's the brainchild of venture capitalist Woody Tasch, author of Inquiries into the Nature of Slow Money from Chelsea Green.
You can read an excerpt from his book with the story. Here's a nugget from Tasch:
Organized from "markets down" rather than from "the ground up," industrial finance is inherently limited in its ability to nurture the long-term health of community and bioregion. These limits are nowhere more apparent than in the food sector, where financial strategies optimizing the efficient use of capital have resulted in cheap chemical-laden food, depleted and eutrophied aquifers, millions of acres of GMO corn, trillions of food miles, widespread degradation of soil fertility, a dead zone in the Gulf of Mexico, and obesity epidemics side by side with persistent hunger.» E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 12 Mar 2009 | 7:15 pmKids Make The Darndest Financial Responsibility Posters
PM contributor Chana Joffe-Walt pointed us to this contest, sponsored by the National Foundation for Credit Counseling. School kids across the country come up with a poster to illustrate the phrase "I'm Going To Be A Millionaire Because I..." It's kind of like a local talent contest version of the weird Feed The Pig ads where people hand money over to a porcine fellow dressed in a pink seersucker suit.
Most of the posters are pretty straightforward -- laying out a plan that might plausibly lead to financial success somewhere down the line. But we like this one best, and would like to encourage the idea that puns are the surest route to riches.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 7:12 pmButler Wick's Batcheller Says GE Long-Term Outlook Is Positive
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 7:00 pmCredicorp Rated `Overweight' In New Coverage at HSBC
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 6:58 pmBernie Madoff To Get Laid Once A Week?
Maybe! As you know, Ponzi Boy's bail was revoked a few hours ago, and he'll be bunking at Manhattan's Correctional Center until his June 16th sentencing. Where he'll be headed after that is the question. While many raining righteous indignation on the fraudster's ass are hoping he'll go to a place where his ass (and the pounding of it) is figured squarely into the equation, a supermax isn't necessarily in the cards. Defense attorney Jeff Chabrowe has told Esquire that the Otisville Correctional Facility in Mount Hope, New York, is a likely contender. What'll the sojourn be like? Let's find out!
Source: Dealbreaker | 12 Mar 2009 | 6:40 pmWelch condemns share price focus
Jack Welch, who is regarded as father of the 'shareholder value' movement, has said the obsession with short-term profits and share price gains that has dominated the corporate world for over 20 years was 'a dumb idea'
Source: Financial Times - US homepage | 12 Mar 2009 | 6:13 pmUp Together: Job Loss, Foreclosure
Foreclosures spiked by 30 percent last month. All told, 290,631 homeowners got either the news or the boot, depending on how far along in the process they were. The Mortgage Bankers Association calculates that 11.18 percent of all loans was either in foreclosure or at least one payment behind.
The fear now is that the new foreclosures are driven by rising unemployment, and not fallout from the subprime mortgage crisis. New weekly claims rose by 9,000, to 654,000.
The other day at church coffee hour, of all places, I met a guy who does risk management for a major bank. He says they're solid through 10 or 11 percent unemployment. That's in the neighborhood of the Federal Reserve's "adverse scenario" for stress testing banks, at 10.3 percent unemployment next year.
But by any measure, the rising unemployment is bad news for banks.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 6:12 pmOpen Thread: What Is The Economy?
Cashing it in. Avery Cook
John from Kansas City, Mo. sends this great little puzzler:
For fun, I was playing with an electronic 20 questions game (20Q) and decided to try and use "economy" as the target for the poor little gizmo to guess. It had no idea of my philosophical bent and I tried to cut it a few breaks. As a 'thing', vegetable and mineral don't qualify. Animal ? It has a life of sorts. Does it have legs? Does it stand on two legs? Does it have a tail? Perhaps this could serve as a creative whack to one's head, to get one thinking along a different line...» E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 12 Mar 2009 | 5:45 pmTokyo backs US push for action
Japan has backed US efforts to ensure next month's G20 summit focuses on the need for co-ordinated action to support the world economy rather than long-term efforts to improve financial regulation
Source: Financial Times - US homepage | 12 Mar 2009 | 5:12 pmTo Bail Out the Country, Stop Bailing Out Corn
In lay terms, a bailout is just another kind of subsidy. We’ve been bailing out corn, which appears in everything from soda to ethanol, since around 1933. Why not pull the plug on one bailout–corn–to finance the current one? From the Environmental Working Group:
Over the past twelve years, taxpayers have spent $56 billion on corn subsidies paid to over 1.5 million recipients, making it the top crop for federal assistance. Wheat subsidies ranked second, which paid $22 billion to more than 1.3 million recipients, followed closely by cotton subsidies, which provided $21 billion to over 247,00 recipients over the period.
Wired reports:
“We’re seeing that corn is the number-one reason that fast food is so cheap and available,” said Meredith Niles, a food policy analyst at the Center for Food Safety who was not involved in the study. “U.S. programs are subsidizing obesity in this country.”Another article claims that…
…a little noticed analysis buried in an April 2008 report from the federal Energy Information Administration (EIA)1 shows that the corn-based ethanol industry received $3 billion in tax credits in 2007, more than four times the $690 million in credits available to companies trying to expand all other forms of renewable energy, including solar, wind and geothermal power.Corn ethanol subsidies will cost taxpayers a whopping $5 billion in 2010 if they are continued at current rates.
Corn ethanol is an inefficient, carbon-munching source of renewable energy. It is carbon neutral, meaning that it eats up as much diesel and natural gas to produce as it saves in the end. Heavy subsidies incentivize Midwestern farmers to grow ethanol cash crops in place of food. We already eat corn-fed beef, eat chocolate with corn syrup, suck on throat lozenges containing the stuff. There is no need to put it inside our cars, too.
Subsidizing corn accomplishes nothing. The government needs to get smart and stop doing it. The cash flow diverted from corn can then subsidize things we actually need.
And right now, we need many things more than we need ethanol.
Source: Business Pundit | 12 Mar 2009 | 5:06 pmHow ecstasy empire fell from its high
Despite its reputation as the love drug, ecstasy has a violent back story. Host Kai Ryssdal talks with "Chemical Cowboys" author Lisa Sweetingham about the investigations that ended an ecstasy empire.
Source: Marketplace | 12 Mar 2009 | 5:03 pmPharmaceuticals go on buyout binge
Swiss drug maker Roche is acquiring U.S. biotech giant Genentech in a $47 billion deal. Sam Eaton reports on the latest example of a pharmaceutical company buying out a competitor to boost its product line.
Source: Marketplace | 12 Mar 2009 | 4:55 pmColleges' tech cuts slow innovation
With budget-conscious universities cutting funding for high-tech research, potential breakthroughs that could stimulate the economy are being put on the back burner. Janet Babin reports.
Source: Marketplace | 12 Mar 2009 | 4:55 pmAll the talk about 'Google Voice'
Kai Ryssdal speaks with New York Times technology columnist David Pogue about how a new service called "Google Voice" could change the communication lines.
Source: Marketplace | 12 Mar 2009 | 4:55 pmLife insurers need a federal lifeline
At least a dozen struggling life insurance institutions are following in banks' footsteps, hoping to get a bailout from the U.S. Treasury. Steve Henn reports.
Source: Marketplace | 12 Mar 2009 | 4:55 pmGermany insists it's doling out stimulus
As international finance leaders prepare to meet, there is disagreement over how to get the global economy back on track. As Stephen Beard reports, Germany is saying it's already spending a lot to stimulate its economy.
Source: Marketplace | 12 Mar 2009 | 4:54 pmWhere's the rest of the Madoff money?
Disgraced investor Bernard Madoff pleaded guilty to masterminding a $50 billion Ponzi scheme, the largest in history. So where did all that money go? Bob Moon reports.
Source: Marketplace | 12 Mar 2009 | 4:54 pmLow Fees Hurt FDIC
Earlier this month, the FDIC put in place new fees for the banking industry in order to shore up the fund it uses to protect bank deposits. While small bankers were outraged at the new increases, FDIC Chairman Shelia Bair argued that they were necessary to keep the deposit insurance fund from becoming "insolvent this year."
The number of bank closures has skyrocketed this year, already 17 banks have failed in the first months of 2009, compared to just 25 total failures last year. But before the recent crisis, the FDIC was dealing with relatively few collapses. There were no bank failures in 2005 and 2006 and just three in 2007. So where is all the money? Wasn't the FDIC just socking away fees in the last five years in preparation for such a downturn?
According to the Boston Globe, apparently not.
The fund ran short of money during the savings and loan crisis of the 1980s, prompting the agency to increase fees to make up for the shortfall.Then, a booming economy left banks flush with cash, and by 1996 the insurance fund was considered so large that it could grow through interest payments and fees charged only to banks with high credit risk. Congress agreed that premiums didn't need to be collected if the fund was sustained at a level that was considered safe. Thus, about 95 percent of banks paid no premiums from 1996 to 2006, including some new ones that did not have to pay a premium, the FDIC said.Congress requires the insurance fund to stay over 1 percent of all insured deposits. As of December 31, the fund was at just 0.40 percent.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 4:50 pmCallow Says European Union Facing `Extreme' Stress Test
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 4:47 pmFoerster Discusses Bernard Madoff's Ponzi Scheme
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 4:30 pmReally Big Payback
If you're the kind of person whose appetite for retribution was whetted rather than satisfied by Bernie Madoff's guilty plea this morning, and if the news of the huge jump in foreclosures has you gunning for banks, we've got a little something for you.
"Drag Me To Hell", a new movie by Sam Raimi, the director of the "Spiderman" and "Evil Dead" trilogies. Hell's plot centers around a young bank employee (Alison Lohman) who forecloses on a home owned by a frail old woman. In response, the crone saddles Lohman with a curse that somehow involves demons, flies in the mouth, mud, bearded dudes with accents and Justin Long. Can you think of better punishment?
Somewhat scary trailer after the jump.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 4:24 pmIndian Startup Wants to Sell Cow Urine Cola
Cola is bad for you, but cow pee cola is very healthy, according to a group who wants to sell it as an elixir in India. From the UK Telegraph:
The Rashtriya Swayamsevak Sangh, India’s leading Hindu cultural group, has developed Gau Jal or Cow Water, at its research centre in the Indian holy city of Haridwar on the River Ganges, and hopes it will be marketed as a ‘healthy’ alternative to Coke and Pepsi.
In some Indian states, cow dung and urine are sold in regular dairy shops alongside milk and yogurt, and “ayurvedic” Indian health food companies make porridge, toothpaste and tonic drinks which claim to cure ailments ranging from liver complaints to diabetes and cancer. The urine is also believed to have disinfectant properties while the dung is used in many Indian village huts as a clean and antiseptic flooring.
Now, the RSS’s Cow Protection Department has invented a new urine-based soft drink it hopes will promote its health-giving properties to a wider market. “We refer to gau ark (cow urine) as gau jal (cow water) as it has immense potential to cure various diseases. We have developed a soft drink formula with gau jal as the base and it has been sent to a laboratory at Lucknow for testing,” said director Om Prakash.
His team is now focusing on packaging, marketing, and of course preservation to stop its curative drink from going whiffy in the summer heat.
This might not be as disgusting as it sounds, depending on how much urine is involved. Red Bull, after all, contains an animal bile derivative. However, “urine as the base” does sound a little suspect. Would you drink it?
Source: Business Pundit | 12 Mar 2009 | 3:19 pmYou're Paying For That How??
I've studied quantum mechanics. I'm fine with subatomic particles being in multiple places at once. The warping of space-time? Extra dimensions? I'm cool with all that.
But financial accounting? Boy, some strange stuff in there, as I was reminded of yesterday.
I was at the Treasury Department for a briefing about the upcoming G20 meeting, where the U.S. will try to get nations to pledge a huge amount of money to an emergency fund at the International Monetary Fund, in case the IMF needs it to loan to faltering nations.
The proposed increase is $500 billion. And the U.S. would be kicking in some large chunk.
The tricky accounting part is that although Congress has to approve our contribution. The money would NOT appear anywhere on the budget.
This caused quite a kerfuffle. The reporters buzzed around afterward, asking, "How was this possible?"
A Treasury official explained that this is standard accounting for other dealings with the IMF. It's seen as an "exchange of assets" -- the U.S. promises the money, and gets a "claim" on the fund.
The idea is there is no way the IMF will go bankrupt. So we don't have to include money we kick in on our budget. It's essentially off the books.
So why not pledge a trillion dollars to the fund? I asked. No good answer.
I think it must be that at some point people would lose faith in the financial soundness of the U.S. government.
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Source: NPR Blogs: Planet Money | 12 Mar 2009 | 3:11 pmWho's To Blame? Not Him.
Bret writes:
I'm that guy who's blameless that you guys talked about on your "who's to blame" segment. I put 20% down on my condo when I bought it 2 years ago, I make my mortgage payments, I have credit card debt but it is all at 0% interest and I have at least enough money in a high interest earning (over 4%) checking account to pay off the credit card balance at a moments notice.I even balance my checkbook register regularly.As part of my own little stimulus package, within the last month I bought a pair of skis that I can use but didn't really "need" (although they were on sale for a pretty good deal). So, at the risk of jinxing myself, I declare "it's not my fault!"» E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 12 Mar 2009 | 3:04 pmMoran Sees U.S. Economy Improving in Second Half of 2009
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 2:22 pmFlickinger Says Wal-Mart to Benefit From Produce Changes
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 2:00 pmHaynes Says Blue Chip America Is `Essentially on Sale'
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 1:54 pmFrenkel Says Madoff's No Plea Bargain Helps Others Implicated
Source: Bloomberg - All Podcasts | 12 Mar 2009 | 1:49 pmBen Stein Says No to Cap and Trade
The inimitable Ben Stein writes about why cap and trade is a bad idea:
Two main ways to address the issue are under discussion. One would involve a nationwide system of credits for carbon burning, with a total cap. The credits would be traded in national and maybe world markets. Entities that emit more carbon gases would have to pay more to buy these credits, and those who saved carbon would pay less and be able to sell credits to heavier users.
The other idea is a direct tax on carbon emissions of a stable amount. The proceeds might be refunded in whole or in part to energy producers to help with other goals, such as producing cleaner fuels.
Both ideas have merit, but there is a tricky little history to “cap and trade,” which seems to be President Obama’s favored approach. Because the credits would be traded on an exchange, or somewhere else, their prices would fluctuate. They could even fluctuate wildly, as prices of traded items often do. (See the stock, bond and commodity markets if you’re looking for examples.)
Of course, the new system would be a great benefit to the people who traded the credits. But how about the rest of us? Haven’t we just had a big lesson in what happens when we put traders ahead of producers and consumers? Have we forgotten that lesson already?
The Stein article brings up a broader point of taxation vs. the free market in general. Should the government avoid creating new markets that are extremely vulnerable to speculation and manipulation? Or is that kind of market-creating activity crucial to creating the bubbles that keep the economy afloat (between major crashes)?
Source: Business Pundit | 12 Mar 2009 | 12:08 pm
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