According to the Wall Street Journal, the Treasury Department has cut the amount of cash it intends to invest in two key programs, part of a shuffling of resources designed to give the government wriggle room in case it needs to launch fresh bailouts. Initially, the Treasury said it planned to invest $100 billion from its bailout funds in TALF (Term Asset-Backed Securities Loan Facility). Now, it will contribute $55 billion.
Also, the Wall Street Journal has said that The Fed is buying hundreds of billions of dollars of low-interest-rate mortgages guaranteed by Fannie Mae and Freddie Mac. The purchases, which so far amount to $250 billion and could grow to $1.25 trillion, have driven mortgage rates to historical lows, inducing house purchases and sparking a refinancing wave.
In an Associated Press blurb, five banks have paid back about $353 million back in loans already. The banks are: Iberiabank Corp. of Lafayette, La.; Bank of Marin Bancorp of Novato, Calif.; Old National Bancorp. of Evansville, Ind.; Signature Bank of New York; and Centra Financial Holdings Inc. of Morgantown, W.Va.
Internationally this week, the G-20 (that is, the top 20 policy makers) met this week to discuss the economy in London. In a Bloomberg article, world leaders agreed on a regulatory blueprint for reining in the excesses that fed the worst financial crisis in six decades and pledged more than $1 trillion in emergency aid to cushion the economic fallout. Who the money is going to, and what it entails seems a bit more vague, though.
In state news this week, it seems like the only thing keeping Michigan alive is final four basketball. Yes, that’s right. The news is spinning that people are forgetting about the economy, the market, and the job loss in lieu of watching Michigan State in Final Four glory.
In a Bloomberg Press article, Frank Gegovic, 32, general manager of Detroit Beer Co. said, “It’s going to make people forget what’s going on for about three days.”
Why? Well, if you believe an L.A. Times article, the recession is a “he-session”. That is to say, more men are affected by job loss than women. In February, the unemployment numbers were 8.8% for men and 7.3% for women, according to the Bureau of Labor Statistics. The wide difference is only supposed to get wider.
However, no amount of basketball is going to have Michiganders forget that more state budget cuts are on the way, according to a Free Press article. The reason? State tax collections are falling $100 million a month short of dire predictions made three months ago.
But, don’t worry, public schools and universities are protected under the federal stimulus. It’s welfare, unemployment, prisons, and revenue sharing that are going to take the hit.
What’s unemployment going to be like for March? Well, probably higher since unemployment in Jackson County was up to 11.1 percent. So, expect it to go up even a little bit for last month. We’ve pushed to the 12 percent mark, and it doesn’t look like it’s going to end anytime soon.
Friday, April 3, 2009
Wednesday, April 1, 2009
Central michigan students given advice, perspective on the economy and the future
The small Grawn lecture hall filled slowly with accounting and business students looking to get extra credit and advice. Well dressed business professionals and Central Michigan University professors stood in a small circle at the front of the room shaking hands and chattering excitedly.
Jody Patton, senior director of development in the college of business administration at Central, introduced speakers Richard Levick, Esq., chief executive officer and president of Levick Strategic Communications and author of the book Stop the presses; as well as Glen Ware, Esq., managing director of the Washington D.C. bureau of PricewaterhouseCoopers.
"Do you know what the TATA is?" Levick started. "Because it's already deciding the future in Detroit. The cheese has moved, and most of you don't know what's going on."
The room was deadly silent as Levick and Ware scolded, doled out advice to students, and discussed what it meant for business professionals to deal with the financial crisis in the "war room".
"First an event will take place, and you may only get a letter from a senator in congress asking a question," said Levick. "If you don't start early and 'crack the book' on getting things done, within hours other senators will be writing angry form letters demanding answers, then the bloggers, and then the traditional media."
The two focused specifically on the global market and how it's affecting the national scheme of how things are run on wall street and businesses today.
"You may finally be able to settle things down by 10 o'clock, and you'll think you're done," said Levick. "But, you're not. You're on a 24 hour cycle. Because the foreign regulators will just be waking up in Hong Kong. And, they'll want answers, too."
Students all over the room shifted a little uneasily throughout the presentation as the two asked pointed questions, walking up and down the aisles of the lecture room.
"How many of you read the Wall Street Journal?" asked Ware. Reluctantly, a small number raised their hands. "There are about 150 people here, and only this many read. You need to read."
The two speakers both agreed that the world knows about the United States, but people in the United States knows very little outside it's borders.
"We have never been in a more vulnerable position before in our country's history before, ever," said Wane. "And everybody from bus boys to CEOs need to pursue excellence, be distinct and better, or this ship will 'go down'."
The discussion wrapped up with the two giving the strongest advice of the day.
"Understand your own personal strength," said Levick. "Enter the market place like you're on a good date. Know about your date, dress well for your date, and be passionate about it."
Although the question seemed to be talked about by many of the students before the lecture started, none asked the question of the future job market for students graduating within the next couple years. However, the two answered it because it's been asked before by others.
"We've been through these types of crises before and survived it," said Wane. "The recovery will be quicker than imagined because communication is much more instant. Freshman and sophomores will likely enter a booming market."
Bio on Richard Levick
Glen Ware and an interview he did about corruption with David Janson of Bulletproofblog
Jody Patton, senior director of development in the college of business administration at Central, introduced speakers Richard Levick, Esq., chief executive officer and president of Levick Strategic Communications and author of the book Stop the presses; as well as Glen Ware, Esq., managing director of the Washington D.C. bureau of PricewaterhouseCoopers.
"Do you know what the TATA is?" Levick started. "Because it's already deciding the future in Detroit. The cheese has moved, and most of you don't know what's going on."
The room was deadly silent as Levick and Ware scolded, doled out advice to students, and discussed what it meant for business professionals to deal with the financial crisis in the "war room".
"First an event will take place, and you may only get a letter from a senator in congress asking a question," said Levick. "If you don't start early and 'crack the book' on getting things done, within hours other senators will be writing angry form letters demanding answers, then the bloggers, and then the traditional media."
The two focused specifically on the global market and how it's affecting the national scheme of how things are run on wall street and businesses today.
"You may finally be able to settle things down by 10 o'clock, and you'll think you're done," said Levick. "But, you're not. You're on a 24 hour cycle. Because the foreign regulators will just be waking up in Hong Kong. And, they'll want answers, too."
Students all over the room shifted a little uneasily throughout the presentation as the two asked pointed questions, walking up and down the aisles of the lecture room.
"How many of you read the Wall Street Journal?" asked Ware. Reluctantly, a small number raised their hands. "There are about 150 people here, and only this many read. You need to read."
The two speakers both agreed that the world knows about the United States, but people in the United States knows very little outside it's borders.
"We have never been in a more vulnerable position before in our country's history before, ever," said Wane. "And everybody from bus boys to CEOs need to pursue excellence, be distinct and better, or this ship will 'go down'."
The discussion wrapped up with the two giving the strongest advice of the day.
"Understand your own personal strength," said Levick. "Enter the market place like you're on a good date. Know about your date, dress well for your date, and be passionate about it."
Although the question seemed to be talked about by many of the students before the lecture started, none asked the question of the future job market for students graduating within the next couple years. However, the two answered it because it's been asked before by others.
"We've been through these types of crises before and survived it," said Wane. "The recovery will be quicker than imagined because communication is much more instant. Freshman and sophomores will likely enter a booming market."
Bio on Richard Levick
Glen Ware and an interview he did about corruption with David Janson of Bulletproofblog
Tuesday, March 31, 2009
Daily Round Up: Michigan Economy [now with personal glib!]
"You want to make a plan for tomorrow. Right now, you work hard all day long and go home worried about losing your job the next day," he said, standing outside the entrance of the plant that makes Dodge Ram and Dakota pickup trucks. Read about it.
“The unemployment numbers in Michigan continue to stack up, with layoffs announced seemingly on a daily basis,” Hoekstra said. “Lansing needs to implement the right policies and incentives to again become an attractive destination for job providers and new business investment.” Read the article
However, it should be noted to readers that Pete Hoekstra is running for Governor in 2010. His website here
[Personally, and feel free to ignore my opinion, the man looks like John McCain except less dynamic. He talks like a republican and spins the "I want to have a conversation" line worse than Hillary Clinton.]
Not really economy related, but can Sports wins help take your mind off the unemployment? Maybe.
[From the home newspaper for me, CM life.]
“The unemployment numbers in Michigan continue to stack up, with layoffs announced seemingly on a daily basis,” Hoekstra said. “Lansing needs to implement the right policies and incentives to again become an attractive destination for job providers and new business investment.” Read the article
However, it should be noted to readers that Pete Hoekstra is running for Governor in 2010. His website here
[Personally, and feel free to ignore my opinion, the man looks like John McCain except less dynamic. He talks like a republican and spins the "I want to have a conversation" line worse than Hillary Clinton.]
Not really economy related, but can Sports wins help take your mind off the unemployment? Maybe.
[From the home newspaper for me, CM life.]
Daily Round Up: World Perspective
World Bank Sees Russian Economy Contracting 4.5%
Why?
"oil prices slumped and global contagion spread, driving up unemployment and pushing more people into poverty, the World Bank forecast." Read here
World stocks take turn for worse [the picture is pretty worrisome]
Why?
"oil prices slumped and global contagion spread, driving up unemployment and pushing more people into poverty, the World Bank forecast." Read here
World stocks take turn for worse [the picture is pretty worrisome]
Daily round up: bailout
President Obama said yesterday that General Motors and Chrysler can expect further aid from his administration, but new conditions will be attached to any aid package. Read more
Treasury Secretary Timothy Geithner this week unveiled his plan to jump-start the banking system with the Public-Private Investment Program, or PPIP. It calls for Treasury to combine as much as $100 billion in bailout money with private capital to buy toxic assets lurking on banks’ books. To get hedge funds to buy into these rancid asset pools, the government plans a slew of inducements and guarantees that basically shield the hedge funds from risk. read more
"I think there's far too much faith in him," says [Neython] Murillo, referring to Obama's economic bailout plans to return the U.S. to prosperity. "He's just one man."
The thing about faith is that it often requires someone to believe in things they can't see or explain. But when you see everything around you falling apart, and the explanations why seem as varied as the commentators giving them, it can be difficult to have heart. Read more
The truth is that there will be no trillion-dollar bailouts for individual Americans. But there are a variety of measures beginning to take effect that are meant to prop up family finances. Read more
Declaring that the country had reached the end of the road with Detroit's automakers, President Obama on Monday mapped a new course for bailed-out General Motors Corp. and Chrysler in a series of moves designed to force the hands of workers, creditors and others with a stake in the companies. Read more
Treasury Secretary Timothy Geithner this week unveiled his plan to jump-start the banking system with the Public-Private Investment Program, or PPIP. It calls for Treasury to combine as much as $100 billion in bailout money with private capital to buy toxic assets lurking on banks’ books. To get hedge funds to buy into these rancid asset pools, the government plans a slew of inducements and guarantees that basically shield the hedge funds from risk. read more
"I think there's far too much faith in him," says [Neython] Murillo, referring to Obama's economic bailout plans to return the U.S. to prosperity. "He's just one man."
The thing about faith is that it often requires someone to believe in things they can't see or explain. But when you see everything around you falling apart, and the explanations why seem as varied as the commentators giving them, it can be difficult to have heart. Read more
The truth is that there will be no trillion-dollar bailouts for individual Americans. But there are a variety of measures beginning to take effect that are meant to prop up family finances. Read more
Declaring that the country had reached the end of the road with Detroit's automakers, President Obama on Monday mapped a new course for bailed-out General Motors Corp. and Chrysler in a series of moves designed to force the hands of workers, creditors and others with a stake in the companies. Read more
Monday, March 30, 2009
Editoral: Where's the revolution?
The Article the inspired me
Why aren't we standing up, screaming and shouting, stomping and rampaging? Why aren't we filling the streets with angry, pitchfork grabbing mobs? Where's the fire? Where's the passion? Where's the anger, people?
Aren't you mad as hell and not going to take it anymore?
I have been. I made a few personal vlogs about it (and, they weren't my finest hour, for sure), but at least it was something. Maybe that's where the revolution is taking place. On twitter, on facebook, and on youtube... maybe.
There's something that the 60s had that my generation somewhat lacks: the ability to organize. Some professors on Central Michigan's campus would love to assert that we're not motivated to gather. I find that personal ridiculous. In fact, I grope to find time for myself away from organizations. Though, going back to my community college days, I've always been a club whore filling up my time with organizational meetings and outreach programs.
I know that people like protesting when they get to do it. In May 2008, I was doing a "mock" protest for a French class to remember Mai 1968, a time when France completely shut down because of protesting Parisian laborers.
And, then, again, in September of 2008 (around the time all the economic issues were going down), Central Michigan students protested a very "inflammatory" religious leader.
If that's the case, what's the problem? Isn't this affecting Central Students? Not directly; no. It's sad, but if it doesn't inconvenience the college kids directly, they don't really care.
For example, there would be hell to pay if you take away their distractions like cellphones, ipods, or facebook apps. But, talk to them about the economy, and you get a lot of blank stares.
"What, the economy? I don't know what's going on with all of that."
I usually get brushed off when I bring it up. President Obama will handle it.
Maybe it's ignorance then. I know that at the end of the semester when all these graduates of our fine university get dumped into a very unstable, very scary, very shaky economy that can't sustain the workers we have right now, I know that a few more people will start to care.
The hearts of young people are there; it just hasn't been realized that it's a viable protest worthy thing yet.
Until then, I'm just twittering my thumbs about the issue.
Or, just twittering.
R.e.
Why aren't we standing up, screaming and shouting, stomping and rampaging? Why aren't we filling the streets with angry, pitchfork grabbing mobs? Where's the fire? Where's the passion? Where's the anger, people?
Aren't you mad as hell and not going to take it anymore?
I have been. I made a few personal vlogs about it (and, they weren't my finest hour, for sure), but at least it was something. Maybe that's where the revolution is taking place. On twitter, on facebook, and on youtube... maybe.
There's something that the 60s had that my generation somewhat lacks: the ability to organize. Some professors on Central Michigan's campus would love to assert that we're not motivated to gather. I find that personal ridiculous. In fact, I grope to find time for myself away from organizations. Though, going back to my community college days, I've always been a club whore filling up my time with organizational meetings and outreach programs.
I know that people like protesting when they get to do it. In May 2008, I was doing a "mock" protest for a French class to remember Mai 1968, a time when France completely shut down because of protesting Parisian laborers.
And, then, again, in September of 2008 (around the time all the economic issues were going down), Central Michigan students protested a very "inflammatory" religious leader.
If that's the case, what's the problem? Isn't this affecting Central Students? Not directly; no. It's sad, but if it doesn't inconvenience the college kids directly, they don't really care.
For example, there would be hell to pay if you take away their distractions like cellphones, ipods, or facebook apps. But, talk to them about the economy, and you get a lot of blank stares.
"What, the economy? I don't know what's going on with all of that."
I usually get brushed off when I bring it up. President Obama will handle it.
Maybe it's ignorance then. I know that at the end of the semester when all these graduates of our fine university get dumped into a very unstable, very scary, very shaky economy that can't sustain the workers we have right now, I know that a few more people will start to care.
The hearts of young people are there; it just hasn't been realized that it's a viable protest worthy thing yet.
Until then, I'm just twittering my thumbs about the issue.
Or, just twittering.
R.e.
Weekly Economic News roundup
According to the Associated Press, New claims for unemployment benefits rose to 652,000 from the previous week's revised figure of 644,000 according to the Labor Department. The total number of people claiming benefits jumped to 5.56 million, worse than economists' projections of 5.48 million, a ninth straight record and the highest total on records dating back to 1967.
So, it’s not looking good. Or is it? Three days ago, the stock market had a one-day jump of over 500 points that could have been a good sign or just a fluke in the spiraling.
The unemployment rate for Feb. nationally was 8.1 percent, from 6.9 percent. According to a New York times article, the one-month jump was the largest on record. Michigan itself had a rate of 12 percent (according to a Detroit News Article).
In fact, a Business Week article suggested that even though the nationally unemployment rate is expected to be at 8.4 percent or so that it may look as though it’s stabilizing. This means that the worst of the whole recession could be behind us. The article, however, was quick to mention that even though the GDP recovers, it may not be able to stop the jobless rate from going as high as 9 or 10 percent. It’s all just speculation at this point.
And just because I like hearing about things abroad, the unrest about the employment has reached a terrible peak in France with workers protesting (when AREN’T they protesting, honestly?) by burning tires and marching on the Presidental Palace.
According to an article on Chron.com, Rising public outrage at employers on both sides of the Atlantic has been triggered by executives cashing in bonus checks even as their companies were kept afloat with billions of dollars in taxpayers’ money and unemployment soars. The controversy in France is against 3M, and Clairox (a tire maker). In fact, in France it’s gone as far as kidnapping of employers, marches, and strikes.
And the bailouts, according to the FBI, will lead to more Fraud cases, mentioned in a Reuters article. From the article: The expected surge in economic crimes will place further strain on an agency already stretched thin as it investigates mortgage fraud, terrorism and corrupt politicians, FBI Director Robert Mueller said.
If the bailout nationally were getting a lot of criticism and bad rap, it’s worse on the state level. From Mlive.com: “For the past month, Republicans have ridiculed Gov. Jennifer Granholm for only slashing $670 million from the fiscal 2010 budget and relying on Obamabucks to patch the rest of the $1.4 billion hole.”
In a Free Press article, however, Michigan Retailers have little faith in the stimulus (about 65 percent of retailers are saying that in the Michigan Retail Index) in that it won’t trickle down to them.
And, they might be right. Especially when a large lump sum comes into people’s possession, it seems as though they use the money to pay bills or to save the money for a “rainy day”. However, the stimulus package doesn’t allow for a large lump sum. It’s smaller increments over time.
However, the governor is positive President Obama’s plan will be beneficial to Michigan. From a Free Press article: the governor said federal officials prefer to call the American Recovery and Reinvestment Act, or ARRA, will bring about $18 million in spending to Michigan, creating or preserving about 109,000 jobs over two years.
Sources:
• Lansing: Through the looking glass”.
http://tinyurl.com/c4gkkm
• Vital Signs: Is Unemployment Near a Peak?
http://tinyurl.com/dgbgmg
• Stimulus Aid won’t help, most Michigan Retailers say http://tinyurl.com/c5vvd2
• Granholm: Stimulus Projects will lift Michigan’s future http://tinyurl.com/ckmy8v
• City jobless rate takes highest-ever one-month leap
http://tinyurl.com/c5jypg
http://tinyurl.com/dmuscl
• Bailouts fuel outrage in France, too http://tinyurl.com/dx3nym
• Stimulus, Bailout will lead to more Fraud: FBI http://tinyurl.com/dd358c
So, it’s not looking good. Or is it? Three days ago, the stock market had a one-day jump of over 500 points that could have been a good sign or just a fluke in the spiraling.
The unemployment rate for Feb. nationally was 8.1 percent, from 6.9 percent. According to a New York times article, the one-month jump was the largest on record. Michigan itself had a rate of 12 percent (according to a Detroit News Article).
In fact, a Business Week article suggested that even though the nationally unemployment rate is expected to be at 8.4 percent or so that it may look as though it’s stabilizing. This means that the worst of the whole recession could be behind us. The article, however, was quick to mention that even though the GDP recovers, it may not be able to stop the jobless rate from going as high as 9 or 10 percent. It’s all just speculation at this point.
And just because I like hearing about things abroad, the unrest about the employment has reached a terrible peak in France with workers protesting (when AREN’T they protesting, honestly?) by burning tires and marching on the Presidental Palace.
According to an article on Chron.com, Rising public outrage at employers on both sides of the Atlantic has been triggered by executives cashing in bonus checks even as their companies were kept afloat with billions of dollars in taxpayers’ money and unemployment soars. The controversy in France is against 3M, and Clairox (a tire maker). In fact, in France it’s gone as far as kidnapping of employers, marches, and strikes.
And the bailouts, according to the FBI, will lead to more Fraud cases, mentioned in a Reuters article. From the article: The expected surge in economic crimes will place further strain on an agency already stretched thin as it investigates mortgage fraud, terrorism and corrupt politicians, FBI Director Robert Mueller said.
If the bailout nationally were getting a lot of criticism and bad rap, it’s worse on the state level. From Mlive.com: “For the past month, Republicans have ridiculed Gov. Jennifer Granholm for only slashing $670 million from the fiscal 2010 budget and relying on Obamabucks to patch the rest of the $1.4 billion hole.”
In a Free Press article, however, Michigan Retailers have little faith in the stimulus (about 65 percent of retailers are saying that in the Michigan Retail Index) in that it won’t trickle down to them.
And, they might be right. Especially when a large lump sum comes into people’s possession, it seems as though they use the money to pay bills or to save the money for a “rainy day”. However, the stimulus package doesn’t allow for a large lump sum. It’s smaller increments over time.
However, the governor is positive President Obama’s plan will be beneficial to Michigan. From a Free Press article: the governor said federal officials prefer to call the American Recovery and Reinvestment Act, or ARRA, will bring about $18 million in spending to Michigan, creating or preserving about 109,000 jobs over two years.
Sources:
• Lansing: Through the looking glass”.
http://tinyurl.com/c4gkkm
• Vital Signs: Is Unemployment Near a Peak?
http://tinyurl.com/dgbgmg
• Stimulus Aid won’t help, most Michigan Retailers say http://tinyurl.com/c5vvd2
• Granholm: Stimulus Projects will lift Michigan’s future http://tinyurl.com/ckmy8v
• City jobless rate takes highest-ever one-month leap
http://tinyurl.com/c5jypg
http://tinyurl.com/dmuscl
• Bailouts fuel outrage in France, too http://tinyurl.com/dx3nym
• Stimulus, Bailout will lead to more Fraud: FBI http://tinyurl.com/dd358c
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