WARNING from Standard Pacific's report tonight: [more]
DETROIT -- General Motors Corp. is looking to cut its U.S. salaried headcount by 15%, or around 5,000 workers, by Nov. 1 as part of a plan to trim $10 billion in annual expenses, according to people briefed on the plan. [more]
In my previous post, the source cited the governor's comments as follows:
Last year, the top 16 banks paid $173 million in taxes last year; this year, its $5 million, a 97% decrease. [more]
Somebody forgot to tell the Stock Market today that our State and Local Governments are facing a ENORMOUS fiscal emergency. Deficits are already HUGE and growing by the day. [more]
Bennigan's declares Chap 7. Thousands of Jobs Lost and Hundreds of Retail Locations Dark.!!!!!! Mervyn's Declares Chap 11. Expect lots of closings...especially in California. [more]
Basically, the Wealth of America(and the world for that matter) is primarily centered in Real Estate, Business Debt and Equity(Stocks and Bonds), and Cash. [more]
Starbucks to close 61 of its 84 stores in Australia, putting almost 700 out of work SYDNEY, Australia (AP) -- [more]
FWIW, not because I agree or disagree with his political views....generally I trend toward being a liberatarian and am politically agnostic.... [more]
We know that the slow down to revenues to New York is worse than post 9-11. However, that pales in comparison to the crisis California faces right NOW!!!! [more]
By PATRICK McGEEHANPublished: July 26, 2008
Government officials in New York are preparing for what could be the biggest single-year decline in pay on Wall Street in history and with it a vexing shortfall in city and state revenues. [more]
July 25 (Bloomberg) -- Chrysler LLC, hurt by plunging prices for used sport-utility vehicles, said its finance unit will stop offering leases to customers on Aug. 1. [more]
Gov. Arnold Schwarzenegger is planning to cut the pay of about 200,000 state workers to the federal minimum wage of $6.55 an hour until a budget is signed, according to a draft of the governor's order obtained by The Times.
Administration officials said Schwarzenegger is expected to sign the order early next week as part of an effort to avert a cash crisis. The controversial move, likely to be challenged in court by public-employee unions, would save the state about $1 billion a month, the officials said. [more]
Because credit is evaporating everywhere. Now all over the world. [more]
Earlier I pointed out that the massive spending from the housing rescue package was going to likely cause selling of dollars and interests rates to rise. Rising interest rates is going to inevitably have downward pricing pressure on housing. [more]
An excellent video by Mr. Denninger that sums up things pretty well.
With the current administration about to leave.....one last lie??????
WASHINGTON -- House and Senate leaders have largely hammered out a compromise deal on a mammoth housing package that would permit the government to bolster Fannie Mae and Freddie Mac in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages. [more]
Last month, riots in Milwaukee......this month Minneapolis....... [more]
McLEAN, Va. - Dogs aren't the only ones casting a longing eye at fire hydrants these days. Fire departments across the country report that thieves are twisting the brass nuts off the tops and selling them for scrap, raising concerns that the hydrants won't work when needed most.... [more]
Texas Instruments: [more]
The following was taken from Mish's Blog and rearranged to clarify the issue(factual correctness is maintained): [more]
At least for a while? Just sit back and think about it for a second. [more]
WASHINGTON -- The country's largest banks, particularly those more likely to fail, will have to make changes to the way they treat deposits, as federal banking regulators prepare for more trouble in the struggling banking industry. [more]
We know a few years ago, many Americans were living paycheck to paycheck. These were people on Social Security, government assistance, lower paying jobs, and highly leveraged. Some estimates ran higher than 50% of the population. [more]
Voit Commercial Brokerage reports that construction of O.C. office buildings plunged 90.8% in the second quarter to 325,276 square feet. Last year in the second quarter, 3.5 million square feet was under construction.
All the added space pushed the second quarter office vacancy rate to 14.46%. A year [ago], vacancies were at 8.95%. ... “You have two negatives — a lot of new product without tenants and you have got an economic slowdown,” says [Jerry J. Holdner Jr., Voit vice president of market research]. [more]
Right now I am talking to more and more people who are taking money out of their local banks. A number are drawing down deposits to get to below the $100K FDIC limits. [more]
Inflation at multi year highs. Producers now being forced to pass on higher pricing. [more]
SimonDelivers To Shut Down Due To Soaring CostsNEW HOPE, Minn. (AP) ―
The innovative online grocer, SimonDelivers.com, says it will shut down in two weeks due to a spike in food and fuel prices. [more]
SAN FRANCISCO (MarketWatch) -- Pilgrim's Pride Corp., struggling to make money in the chicken business amid surging feed-grain costs, said Tuesday it plans to consolidate a tray-pack chicken processing operation and shutter another distribution plant. [more]
The headwinds for buyers get stronger and stronger. [more]
Today is Bastille Day in France commemorating the liberation of modern day France. We in America sometimes call the French.... frogs. In the end, are we really frogs sitting in boiling water thinking its a hottub? [more]
Midwest Airlines to cut 40% of workforce, or 1,200 jobs [more]
The above headline from MarketWatch [more]
LordZ makes fun of minorities. Makes disparaging comments about those that are disadvantaged or may face hurdles in life that some of us are fortunate to avoid. As a strong proponent of free speech, although I may not like what Lordy sayz, the freedom for him to say it is much more important to me than my sensitivities. [more]
It's an end of an era for Dawahares. The Lexington-based chain announced Thursday night it will be closing its 22 remaining stores. [more]
“Mary Kleiss missed a mortgage payment for the first time in her life in June. Now she has missed July’s, and expects to soon lose the house she has lived in for 30 years.” [more]
WASHINGTON (Reuters) - Sen. Charles Schumer on Friday blamed IndyMac Bancorp Inc's (IMB.N: Quote, Profile, Research, Stock Buzz) failure on its main regulator, the Office of Thrift Supervision, and said it should start doing its job. [more]
Unable to maintain sufficient interest reserves on $94 million in debt, beleaguered Virginia-based Comstock Homebuilding Cos. has stopped making scheduled interest or principal payments on the debt and has hired Brad Foster of FTI Consulting as an interim chief restructuring officer. [more]
Good luck. The winds seem at his back.
NOTHING IS TOO BIG TO FAIL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! [more]
Bloomberg News / July 8, 2008
CLEVELAND - Procter & Gamble Co., the maker of Tide laundry detergent and Head & Shoulders shampoo, will raise prices as much as 16 percent because of higher costs for plastic, energy, and paper. [more]
The have been selling houses for the past seven years to people they knew or should have known couldn't afford their product. In many cases, the owned the mortgage companies that provided the financing. [more]
For the past few weeks I have been a bit fixated on the Steve and Barry's saga. The focus is not because the retailer was fast growing and absorbing about 20 million square feet of retail space in a relatively short period of time. Not the fact that it had accumulated around 17,000 employees. Not even the fact that mall owners paid Steve and Barry's hundreds of millions of dollars to move into their spaces, a private equity form fronted it over $300 million in 2006 or that GE Capital provided a line of credit for $200 million as late as March. [more]
Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of carpet, ceramic tile, laminate, wood, stone, vinyl and rugs. [more]
“With sales taxes and housing fees plummeting, cities across Riverside and San Bernardino counties are trying to cover the shrinkage of their main revenue sources by laying off workers, trimming services and cutting back on extras such as travel and conferences.” [more]
4:33[IMB] IndyMac to cut 3,800 jobs [more]
Right now a record number of people are in or preparing for retirement.
The majority of their assets are allocated in stocks, bonds, and real estate.
All three asset classes are losing value right now.
If the current trend continues......what will happen to the value of people's retirement nest eggs and what effect will it have on our economy?
(MarketWatch) -- General Motors Corp., the Detroit auto maker, is preparing to cut thousands of additional white-collar jobs and is mulling whether to sell or close more brands, people familiar with the matter told The Wall Street Journal. GM's stock price is at a half-century low..... [more]
1:52[C] Citi to post Q2 write-downs of at least $8B: UK Times [more]
Almost everyday now, we are reading about a small part of our economy shutting down with nothing to replace it. 600 coffee shops and 12,000 employees. 10% of flights and thousands of workers. Manufacturing plants, insurance companies, banks, retailers, restaurants, trucking companies......few seem to be escaping the pressure of a contracting world economy. [more]
CEO Timothy Hoeksema made that statement in a memo sent Wednesday to employees of Midwest Air, which operates Midwest Airlines and Midwest Connect. The carrier, battered by record-high fuel prices, hopes to restructure its finances and become a smaller, leaner operation to avoid Chapter 11 bankruptcy. [more]
I was reading an article this morning about a Nebraska math teacher going to serve a minimum of 70 months in Federal prison for travelling with her 13 year old male student to Mexico and having sex with him. Don't we have a shortage of math teachers? [more]
I keep hearing people say there is a lot of demand out there and things will pick up soon. [more]
ADP Says U.S. Companies Decreased Payrolls by 79,000
By Bob Willis [more]
Consumers buying less coffee. Fewer cars driven off the lot. Not many homes are being snapped up. Furniture stores are closing down. HomeDepot and Lowes are seeing sales slowing month after month. Restaurants are begging for customers. Retailers having a hard time staying open due to slowing sales. [more]
GM's sales down 18%. Ford's down 26%. Chrysler down 36%. Heck even Toyota down over 20%. [more]