Ireland may come to regret joining the EU
@ November 13, 2008 # No Comment Yet
For the past decade Ireland has experienced huge economic growth, 7.5% per year, as evidenced by huge jumps in immigration and building. Major American companies, such as Dell, have flocked to the Emerald Isle to take advantage of Ireland’s new found prosperity. Many credited inclusion in the European Union and adoption of the euro for the growth. Unfortunately, that which giveth may very well taketh away. Ireland is in trouble and the EU may be adding to the problems.
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American Express. Is the wallet empty?
@ November 12, 2008 # No Comment Yet
American Express wants $3.5 billion in taxpayer bailout money, which explains why earlier this week Amex was deemed by the Federal Reserve to be a “bank holding compnay”, giving it access to Fed financing.
American Express has hit troubled times recently because its business model relied heavily on selling packages of credit card debt to investors; [...]
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Homeowner rescue plan unveiled
@ November 11, 2008 # No Comment Yet
In an effort to prevent more foreclosures, Fannie and Freddie are stepping up plans to modify hundreds of thousands of at-risk mortgages. Interim Assistant Treasury Secretary for Financial Stability, Neel Kashkari, hopes the move will help stabilize the flagging housing market.
The plan is to target loans made prior to Jan 1, 2008 that are 90 [...]
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Time, Inc. to layoff…taking volunteers
@ November 11, 2008 # No Comment Yet
Like many companies in the publishing industry, Time, Inc. has announced plans to layoff workers, citing a reduction in ad revenue. Magazines owned by Time, Inc. are looking for 83 volunteers to be laid off. Sports Illustrated, People, Time and, ironically, Fortune and Money, are all looking to trim jobs.
Print is dead, people. Stop killing [...]
More on page 187
California budget about to implode
@ November 11, 2008 # No Comment Yet
Unless drastic action is taken, California will be close to 30 billion in the whole by June 2010. California’s deficit has been a tremendous problem for years now, but it has become dire in the face of the current national economic meltdown. To make matters worse, it is now predicted that California’s tax revenue will [...]
More on page 185
Flash: The wealthy forced to cut back on skiing
@ November 11, 2008 # No Comment Yet
Montana’s Yellowstone Club, an exclusive golf and ski club, filed for bankruptcy on Monday. The Club is also an exclusive residential community, with houses on the ski slopes and golf course starting at two million dollars.
While my first instinct is to mock this story, it is never good for the obscenely wealthy to tighten their [...]
More on page 183
GM nearing the end of the road
@ November 11, 2008 # No Comment Yet
Shares of GM are trading at $2.92, the lowest price in 65 years, pulling down other automakers and parts suppliers. In order to survive, JP Morgan says that GM needs a bailout either from the US government or the parts suppliers. This would be over and above the $25 billion already allotted for loans to [...]
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Shocker: Banks want to forgive your credit card debt!
@ October 30, 2008 # No Comment Yet
In addition to the financial market meltdown that banks are facing due to the mortgage crisis, they are also losing billions of dollars from unpaid credit card debt. Major banks are asking the government to allow them to forgive up to 40% of some customers’ debt so that the customers will be able to pay [...]
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Bad economy fuels airfare price cuts
@ October 30, 2008 # No Comment Yet
Major airlines announced that they will be cutting fares for the holiday season to combat the decline in passengers due to the unstable U.S. economy. The price slashing was initiated by Northwest Airlines and competitors soon started lowering their fares as well. The fare sale could save passengers up to 25%.
“We know the economy is [...]
More on page 142
Agriprocessors former manager arrested, company fined $10 million
@ October 30, 2008 # No Comment Yet
The son of Agriprocessors’s owner, who was a former manager at the kosher meat processing facility, was arrested for identity theft and allegedly helping many of Agriprocessors’s illegal employees obtain fake documents. He is also accused of sheltering the undocumented workers for financial gain. Authorities say a witness reported that Sholom Rubashkin gave him money [...]
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EA faces 580 job cuts and lowers income outlook amidst falling shares
@ October 30, 2008 # No Comment Yet
Amid the current economic crisis, Electronic Arts (EA) reduced its profit outlook for the year after a decrease in sales and a 14% stock fall. The video game company announced it will cut 6% of its staff to cope with the unstable economy. EA reported a $310 million stock loss and hopes to save $50 [...]
More on page 136
Economic crisis results in 760,000 layoffs so far
@ October 30, 2008 # No Comment Yet
760,000 jobs have been eliminated as of September 2008, and a quarter of U.S. employers are expected to layoff many more within the next year. Employees in both Wall Street and middle America are feeling the impact of the current economic crisis. The Department of Labor has reported an estimated 110,000 job cuts in financial [...]
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Motorola delays phone launch, cites bad economy
@ October 30, 2008 # No Comment Yet
Motorola has announced that it will not ship its very first Android phone until the end of 2009. Motorola blames the delay on company factors and the economic meltdown. The company’s co-chief executive officer and CEO of Mobile Devices, Sanjay Jha, explained in a statement “…we are no longer targeting the third quarter of 2009, [...]
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CBS reports $12 billion loss
@ October 30, 2008 # No Comment Yet
CBS reports a $12.4 billion loss after having to write down the company’s value assets and suffering a decline in the advertising market. Although it reported a loss, the media giant says it will have enough money for its dividend. CBS also announced that it expects a percentage fall in its 2008 fiscal operating income.
SOURCE
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U.S. faces an economic contraction
@ October 30, 2008 # No Comment Yet
The U.S. economy is suffering its largest contraction in seven years as consumers have pulled back on spending and have reduced business investment. The United States Commerce Department described the third quarter as the largest consumer pullback since 1980, with a 0.3 % U.S. gross domestic product shrink.
SOURCE
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74,000 jobs will be eliminated if GM & Chrysler reach agreement
@ October 30, 2008 # No Comment Yet
74,000 jobs may be lost if GM and Chrysler reach an agreement on their proposed merger. The joint agreement could cost Chrysler 24,000 management and manufacturing jobs, along with 50,000 auto parts manufacturing jobs as a result of a reduction in car models and the closure of Chrysler plants. Automakers are facing an economic downturn [...]
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American Express to reduce staff and programs
@ October 30, 2008 # No Comment Yet
American Express is cutting 7,000 management jobs across the the country in hopes of saving $1.8 billion. The credit company has instituted a hiring and salary freeze and announced possible bonus reductions for its employees. AmEx will also reduce certain rewards programs for customers, as well as spending on marketing and advertising. Interest rates for [...]
More on page 121
Google reduces job perks
@ October 30, 2008 # No Comment Yet
The economic meltdown has even started affecting the most stable of US companies. Google is reducing some employee perks in its New York office in the wake of poor stock performance. Cafeteria hours will be reduced, as well as the selection of food items. Tuesday afternoon tea has been eliminated as well. Oh, the horror!
Google [...]
More on page 119
Rate cut won’t help Japan
@ October 27, 2008 # No Comment Yet
Bank of Japan’s current central bank interest rate is .5%, compared to the 1.5% in the United States. Economic and Fiscal Policy Minister Kaoru Yosano has said that cutting the rate in half, to .25%, would have no positive affect on the Japanese economic situation. It is likely that the Bank of Japan will not [...]
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Brilliant: LAPD refuses to ask immigration status
@ October 27, 2008 # No Comment Yet
Former LAPD Chief Daryl Gates helped create Special Order 40 in 1979; this order limits when LAPD officers can ask a victim or suspect about his or her immigration status.
Some Los Angeles City Council members are seeking to amend the order claiming that it prevents police from dealing with illegal immigrant gang members. The shooting [...]
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