More bad economic news

[pyrangello]

Here's some direct news from me, I own a welding shop and we also take care of repossessed homes. In northern michigan there are no construction jobs going at all , the repos are coming in big time, triple than what it was 5 years ago. 150,000 people have permanently moved out of this state in the last 2 years and our state leaders raised taxes last year. Another brillant move . The checks and balances are coming fast and furious and it's up to all of us to keep it together to help one another . You ain't seen anything yet as the worst of this is now at our doorsteps. Hang on and dig in!

[Dantheman62]

AP
Economy shrinks at 3.8 percent pace in 4Q
Friday January 30, 9:41 am ET
By Jeannine Aversa, AP Economics Writer
Economy shrinks at 3.8 percent pace in fourth quarter, worst showing in quarter-century


WASHINGTON (AP) -- The economy shrank at a 3.8 percent pace at the end of 2008, the worst showing in a quarter-century, as the deepening recession forced consumers and businesses to throttle back spending.


Although the initial result was better than economists expected, the figure is likely to be revised even lower in the months ahead and some believe the economy is contracting in the current quarter at a pace of around 5 percent. The current January-March period, they said, will probably turn out to be the worse quarter for the recession.

"The downturn is intensifying. The fourth quarter is worse than it looks," said Mark Zandi, chief economist at Moody's Economy.com.

http://biz.yahoo.com/ap/090130/economy.html




Caterpillar to cut another 2,110 production jobs
Caterpillar Inc. says to shed another 2,110 jobs, expanding earlier cuts

PEORIA, Ill. (AP) -- Caterpillar Inc. on Friday announced 2,110 new job cuts as the heavy equipment maker scales back production to match falling demand.

The cuts at three Illinois plants -- in Aurora, Decatur and East Peoria -- come after the company announced other work force and cost-cutting actions earlier this week.

http://finance.yahoo.com/news/Caterp...-14206886.html

[Dantheman62]

Dow Chemical to cut 400-500 Mich. jobs
Dow Chemical to cut up to 500 Mich. jobs as part of previously announced layoffs

MIDLAND, Mich. (AP) -- Dow Chemical Co. said Friday it would cut between 400 to 500 jobs near its Midland, Mich., headquarters as part of a previously announced global layoff plan.

The nation's largest chemical maker said last month it would slash 5,000 full-time jobs -- about 11 percent of its total work force -- close 20 plants and sell several businesses to rein in costs amid the economic recession.

"The decision to reduce jobs is one the company never takes lightly," said Mike Gambrell, executive vice president of manufacturing and engineering operations and head of Dow's restructuring program. "However, the global financial crisis, combined with recent and steep declines in customer demand, have intensified the company's need to accelerate cost-cutting measures."

http://finance.yahoo.com/news/Dow-Ch...-14209286.html

[J_rod7]

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The following proposal has been sent to the Editor of my local newspaper, to the Editor of the New York Times, to Mr. Obama through comments@whitehouse.gov to all my friends in my address book, entered in the Forum discussion group at FIGU.org, and entered on the blog-site of President Obama. All this is NOT ENOUGH to get action.

I am asking everyone here to PLEASE pass this along in every format possible, re-write it in your own words if you like. LET'S GET ATTENTION TO THIS PROPOSAL in ALL THE RIGHT PLACES.

Mr. Editor: This letter is addressed to President Obama on behalf of the people of America.

~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~ ~~~~~

Mr. President Obama, and All Senior Staff of the President,

With great respect for you, and the work you are engaged on the path of our national economic recovery.

I am a citizen of true Spiritual orientation, I am not either atheist nor agnostic. I humbly make this suggested proposal...:

TAX ALL "RELIGIOUS" ORGANIZATIONS.

TAX THE LANDS, OFFICES, BUILDINGS, BUSINESSES, AND SUBSIDIARY HOLDINGS OF ALL "CHURCHES."

"Churches" are obviously defined to mean all Catholic, Protestant, aligned and non-aligned groups, Mosques, Temples, Synagogs, and etc. of every 'faith,' denomination, or orthodoxy. None can cry "foul" or "discrimination," as this proposal applies to all such organizations.

Too many of these are hiding revenue, income, stocks, bank accounts, profit-making assets and businesses behind the false facade of "religious exemptions."

The time has come now, for all such "exempt" religions to pay their 'fair-share.'

The only exemptions to be allowed for "churches," should be those projects directly engaged in TRUE humanitarian efforts.

Such exemptions should be allowed for Hospitals of such religious organizations; for Schools; for food, shelter, medical, and emergency aid assistance that such organizations establish.

Also exempt, should the 'Native American' churches and their associated projects. However, profits from 'Casino activity' should be taxed.

Also, for consideration: eliminate the IRS 1040 Sch-A deduction for 'donations to churches.'

There are literally many Billions of dollars to be realized from the application of taxation to all otherwise Non-Humanitarian holdings of all the 'religions' and 'churches.' These 'churches' have hidden assets and profits from the eyes of scrutiny far too long. In these times of the greatest crisis in the economy of our nation, every available resource must be applied to the solution.

Sir, you and your staff should include this proposed solution to the considered Tax-Relief package for the acceptance of Congress. I do hope that you will give this proposal serious consideration. I vote: YES, and ask the same of you, sir.

I am but one citizen who supports you in ALL your efforts, and I commend you for the work you are doing.

My hope is for your continued success.

With great Respect,

Rodney Morrill
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If we are going to come out of this economic crisis, we need to have our Engines firing on all cylinders. This may also serve to break the grip that the religious nut-jobs have had on our government. Break the Dogma which has blinded the reason of the people.

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[Dantheman62]

Macy's cuts dividend, eliminates 7000 positions
Monday February 2, 2009, 1:20 pm EST

Reuters) - Macy's Inc (NYSE:M - News) said on Monday it is cutting 7,000 positions and sees 2009 same-store sales down between 6-8 percent. Macy's shares fell 14 percent on the news.

http://finance.yahoo.com/news/Macys-...-14226135.html

Originally Posted by pyrangello

Here's some direct news from me, I own a welding shop and we also take care of repossessed homes. In northern michigan there are no construction jobs going at all , the repos are coming in big time, triple than what it was 5 years ago. 150,000 people have permanently moved out of this state in the last 2 years and our state leaders raised taxes last year. Another brillant move . The checks and balances are coming fast and furious and it's up to all of us to keep it together to help one another . You ain't seen anything yet as the worst of this is now at our doorsteps. Hang on and dig in!

There were layoffs at my place of employment early this year 2009 too.

[Northern Boy]

Best of luck to you I know some guys that have done it and it turned out to be the best thing they ever did

[Dantheman62]

PNC Financial swings to 4Q loss, plans job cuts
PNC Financial to cut 5,800 jobs after it reports 4th-quarter net loss

CHARLOTTE, N.C. (AP) -- PNC Financial Services Group Inc. said Tuesday it plans to cut 5,800 jobs following its acquistion of National City Corp. last year and said it swung to a loss during the fourth quarter.

PNC said it posted a loss of $248 million, or 77 cents per share, due to increased credit provisions and costs associated with its $3.9 billion purchase of Cleveland-based National City in December. A year earlier, PNC earned $178 million, or 52 cents per share.

http://finance.yahoo.com/news/PNC-Fi...-14234855.html




Motorola loses $3.6B, suspends dividend, CFO exits
Motorola reports loss of $3.6B in 4th quarter, suspends dividend, CFO leaves

NEW YORK (AP) -- Motorola Inc. posted a massive fourth-quarter loss Tuesday as it recorded charges to reflect the dwindling value of its cell phone business. The maker of telecommunications equipment also suspended its dividend and announced the departure of its chief financial officer.

http://finance.yahoo.com/news/Motoro...-14233159.html



LONDON – Britain's capital cleared the soggy remnants of a paralyzing snowstorm on Tuesday as businesses counted the multibillion-pound (-dollar) cost.

An estimated 6 million people skipped work Monday when the largest snowstorm to hit London in 18 years stopped bus and subway services, grounded airliners and hobbled businesses.

The Federation of Small Businesses said the cost to Britain's economy through lost productivity could be as high as 3 billion pounds ($4.3 billion).

http://news.yahoo.com/s/ap/20090203/...ritain_weather

[Dantheman62]

Japan's Panasonic to cut 15,000 jobs, shut plants

TOKYO – Panasonic Corp. said Wednesday it will slash as many as 15,000 jobs and shut 27 plants worldwide, joining a slew of major Japanese companies announcing deep cuts as the global slowdown batters the world's second-largest economy.

The world's largest maker of plasma display TVs also announced a net loss for the October-December quarter and lowered its forecast for the fiscal year through March to a net loss of 380 billion yen ($4.2 billion), its first annual loss in six years.

http://news.yahoo.com/s/ap/20090204/...arns_panasonic

[Dantheman62]

But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:

Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.


Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.

Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.



Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.

Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.

http://finance.yahoo.com/news/15-Com...-14279875.html

[Dantheman62]

GM cuts 10,000 salaried jobs, trims employees' pay
GM eliminates 10,000 salaried jobs, cuts employees' pay as it works on viability plan

NEW YORK (AP) -- General Motors Corp. is planning to slash another 10,000 salaried jobs this year, saying the cuts are unavoidable with a government restructuring deadline looming and industrywide sales in one of the worst downturns in history.

The Detroit-based automaker said Tuesday it will reduce its total number of white-collar workers by 14 percent to 63,000. About 3,400, or 12 percent, of GM's 29,500 salaried U.S. jobs will be eliminated.

Most of the company's remaining salaried employees will have their pay cut.

In its plan to Congress submitted late last year, GM said it would have to reduce both salaried and hourly positions so that the company could become viable for the long term. The company said it plans to reduce its total U.S. work force from 96,537 people in 2008 to between 65,000 and 75,000 in 2012, but it did not specify how many of the surviving jobs would be salaried or hourly.

http://finance.yahoo.com/news/GM-to-...-14307259.html

[Dantheman62]

Wholesale inventories plunge by most in 17 years
Wholesale inventories plunge 1.4 percent in December, steepest drop in nearly 17 years

WASHINGTON (AP) -- Wholesalers cut back on their inventories in December by the largest amount in nearly 17 years, and economists say more reductions are likely amid the deepening recession.

The ongoing inventory reductions mean wholesalers likely will order fewer new goods, leading to reduced production and potentially more job layoffs.

The Commerce Department said Tuesday that wholesale inventories plunged by 1.4 percent, nearly double analysts' expectations of 0.8 percent and the steepest since records began in January 1992. It also was the fourth straight monthly decline.

http://finance.yahoo.com/news/Wholes...-14309035.html

[Dantheman62]

Goodyear cutting nearly 5,000 jobs after 4Q loss

CLEVELAND (AP) -- Goodyear Tire & Rubber Co., the biggest U.S. tire maker, said Wednesday the global economic slowdown will force it to cut nearly 5,000 jobs this year after it posted a fourth-quarter loss and revenue sank 21 percent.

The cuts equal almost 7 percent of the Akron, Ohio-based company's work force and follow the elimination of about 4,000 jobs in the second half of last year.

Goodyear lost $330 million, $1.37 per share, in the fourth quarter, after a profit of $52 million, or 23 cents per share, a year earlier.

The company lost $1.18 per share, excluding one-time charges or gains, in the most recent quarter. Analysts surveyed by Thomson Reuters expected a loss of $1.03 cents per share on that basis.

Sales dipped to $4.1 billion from $5.2 billion a year earlier.

http://biz.yahoo.com/ap/090218/earns_goodyear.html

[Dantheman62]

GM, Chrysler seek nearly $22 billion more U.S. loans

DETROIT (Reuters) – General Motors Corp and Chrysler LLC requested nearly $22 billion in additional U.S. government loans and said they had reached tentative deals with the United Auto Workers union to reduce labor costs.

The two automakers, which have so far received $17.4 billion in loans from the U.S. Treasury, also detailed plans to cut jobs and idle plants as part of sweeping restructuring plans submitted under the terms of their federal bailout.

GM said it was making progress on complex deals to reduce some $48 billion in debt owed to bondholders and the United Auto Workers union but had fallen short of an initial requirement to complete those agreements by Tuesday's deadline for submitting the plans to U.S. officials.


In response to signs of a prolonged slump in demand, GM said it would step up cost-cutting, eliminating 47,000 jobs this year and a total of 14 U.S. plants by 2012.

Chrysler, meanwhile, will reduce capacity by 100,000 units and cut 3,000 jobs this year.

GM said its money-losing Swedish subsidiary Saab could be forced into bankruptcy as soon as this month even as GM continues to negotiate support with the Swedish government.

GM also froze expansion plans in Thailand and said it would seek new concessions from its unions in Canada and Europe.

Earlier, Chrysler's former owner, Germany's Daimler, posted a fourth-quarter loss as it wrote down the value of a $1.5 billion loan to the automaker. Daimler previously wrote off the full value of its 19.9 percent stake in Chrysler.

Under the Chrysler restructuring plan, that $1.5 billion loan from Daimler and another $500 million loan from Cerberus would be converted into equity in a recapitalized company.

http://news.yahoo.com/s/nm/20090218/bs_nm/us_autos