@ 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; [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ 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, [...]
@ 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
@ 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
@ 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 [...]
@ 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 [...]
@ 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 [...]
@ October 12, 2008 # No Comment Yet
Chrysler, the number 3 US auto manufactuer and GM, the number 1 US auto manufacturer, are rumored to be discussing a merger. Chrysler’s majority owner is Cerberus Capial Management LP. The talks hit a bump when the question of how to value Chrysler’s losing operations came up.
In the proposed deal, Cerberus would get GMAC and [...]
@ October 11, 2008 # No Comment Yet
Barack Obama was in Philadelphia, Pennsylvania on 10/11/08 and discussed the economic meltdown with supports. Obama feels that McCain “…doesn’t really seem to get what’s going on with this crisis. When it first started, he talked about how the fundamentals of the economy are strong. Where I come from, nothing’s more fundamental than a job.”
Obama’s [...]