We’re expecting the job losses report to come out today - I know for a fact that a lot of companies cut back in the month of October - AMD was one of them as a couple people I know were laid off.  If you haven’t heard Dell is also allowing employees to take a voluntary severance package in leu of further job cuts.  

Oh and the other thing that really pisses me off is the US auto-industry.  They are asking for some of that 700bn tax payer bailout.  Just like the banks, the auto-industry put themselves in this position.   While I feel really bad for the workers, I think the management for the auto-industry can go fuck themselves.  I’m not paying for your mistakes and poor management - they continued to tool up to sell more and more non-fuel efficient vehicles.  They continued to hold back innovation in an effort to continue to make profit.   I want the US auto-industry to crash hard.

Yeah, all those tax breaks and extra stuff they tacked on, guess what we now are strapped with an extra 100 billion that they didn’t tell you about.  Check this out:

I’m glad.  They need to come to terms with the fact that tax payers don’t want to foot the bill that is supposed to take care of us, but also other countries?  There are other methods of fixing the problem and they need to go back and propose something that works not just throwing money at it.

WASHINGTON - In a stunning vote that shocked the capital and worldwide markets, the House on Monday defeated a $700 billion emergency rescue for the nation’s financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive without it. The Dow Jones industrials plunged nearly 800 points, the most ever for a single day.

Democratic and Republican leaders alike pledged to try again, though the Democrats said GOP lawmakers needed to provide more votes. Bush huddled with his economic advisers about a next step. The House was to reconvene on Thursday instead of adjourning for the year as planned.

The stock plunge began even before the 228-205 vote to reject the bill was officially announced on the House floor. The decline for the day surpassed the 721-point previous record, on the day after the Sept. 11, 2001, terror attacks, though in percentage terms it was well short of the drops on Black Monday of October 1987 and at the start of the Depression.

In the House chamber, as a digital screen recorded a cascade of “no” votes against the bailout, Democratic Rep. Joe Crowley of New York shouted news of the falling stocks. “Six hundred points!” he yelled, jabbing his thumb downward.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home. Not enough members were willing to take the political risk just five weeks before an election.

“No” votes came from both the Democratic and Republican sides of the aisle. More than two-thirds of Republicans and 40 percent of Democrats opposed the bill.

Good, I will be watching those guys who had the “Yes” votes.  Those are the ones that can’t be trusted.

Now folks don’t get me wrong, I have a 401k, I have a morgage, sure I’m loosing money in my 401k when stocks take a plundge.  But you know what, 401k is long term and those of you who are a year or less out should already have moved your money to less volitile earning nest and if you haven’t you diserve the loss because you can’t manage your money.  For those of us who have 10, 20, 30 years before retire now is the time to buy more stock, to up your percentage in the 401k because you have my buying power and it will benifit you in years to come.

How does this effect you on the street.  This means that its harder to get a home loan right now, its harder to get a car loan, its harder to get a credit card.  If you’re a busines owner and need a loan, it could be harder but its not impossible, not only that why not look at venture capitolists, they are looking to sink their money into something else and small business is a great thing for them.

Friday News Update:

Today will be a crazy day in news.  So much turmoil in the economical market.

WaMu folded last night, and JP Morgan has aquired it after licking their lips.

Rocket Man (Human Jet) flew across the english channel today and it took less than 10 minutes.  He did it 99 years after French (I’m better than you) Louis Bleroit became the first person to cross the channel by airplane.

The 700 billion dollar bailout plan (called rescue plan now because they want to market it better) is resuming today, many state they won’t meet an agreement (which they shouldn’t bail anyone out).   Seriously I see all these execs jumping out their windows from high rises with huge billowing golden glowing paracutes and dollar bills flying from their pockets (if only I was an artist).

Bush will be making a statement this morning on the bailout, I’m not holding my breath.

http://www.salon.com/comics/tomo/2008/09/23/tomo/

The FED made a shocking announcement today when they publicly stated that they were offering the largest insurance company in the world AIG an $85 billion bailout package.

American International Group, AIG, will be receiving a federal loan from the Federal Reserve Bank of New York in the amount of $85 billion, in exchange for 79.9% stake in the company. AIG’s assets exceed $1.1 trillion dollars and planned to declare bankruptcy today. If they had, their collapse would have sent world stock markets and financial concerns into chaos.

“[A] disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance,” the Fed said in a statement.

The Federal Reserve Board will be replacing the company executives, possibly with FED employees, and maintain controlling interest in the company as well as a position on the board of directors. They claim that customers will not notice a difference in this exchange of power.

“Taxpayers will be protected”, the Fed said, “because the loan is backed by the assets of AIG and its subsidiaries. The loan is expected to be repaid from the proceeds of the asset sales.”
“We are working closely with the Federal Reserve, the SEC and other regulators to enhance the stability and orderliness of our financial markets and minimize the disruption to our economy,” said Treasury Secretary Henry Paulson. “I support the steps taken by the Federal Reserve tonight to assist AIG in continuing to meet its obligations, mitigate broader disruptions and at the same time protect the taxpayers.”
AIG’s official company statement is: “AIG is a solid company with over $1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues. We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis.”
“The failure of AIG could have caused unprecedented global ripple effects”, said Robert Bolton, managing director at Mendon Capital Advisors Corp. “If AIG fails and can’t make good on its obligations, forget it. It’s as big a wave as you’re going to see.”

In the face of one of the most dramatic money crises that the United States has ever faced, the Dow Industrial still closed 141.51 points above yesterday.

All weekend we have heard rumors that AIG will join Lehman Brothers, Fannie Mae and Freddie Mac in the long line of moneylenders and investment firms that are both filing for bankruptcy and begging for federal bailout.

“All of the financials are in complete disarray. There is a tremendous amount of nervousness, which is breeding volatility,” said Anthony Conroy, head trader at BNY ConvergEx.

Fox News Reports:

“With the clock ticking on AIG, reports swirled of a possible government rescue of the world’s largest insurer. Bloomberg reported late Tuesday the Federal Reserve is considering a “loan package.” AIG was also boosted after new SEC filings showed its former CEO, Maurice “Hank” Greenberg, is considering a proxy fight for his old company. ”

“No bailout plan was announced before the end of trading and the Treasury Department has not officially changed its plans, leaving AIG in the same predicament it started the day in. Late Monday AIG suffered a major setback when major ratings agencies downgraded the insurer’s credit ratings, making it increasingly difficult to raise cash.”

AIG has officially filed for federal loans and support in this time, and have so far been denied. They claim to have a better case for bailout than either Freddie Mac or Fannie Mae, as their troubles stem not from over extending loans, but from the massive down turn in the economy.

Yesterday, former head of the FED Alan Greenspan referred to this as a “Once a century monetary crisis” further fueling the comparisons to the great depression that began in 1929.

“The enormous swings in the stock market reflect the level of concern and confusion on Wall Street about AIG. Various reports indicated if AIG didn’t raise new capital — it is reportedly seeking $70 billion to $75 billion — it would be forced to follow in the footsteps of Lehman Brothers by filing for bankruptcy.”

In it’s first unamyous decision in over a year, the Federal reserve has voted to freeze interest rates. As well as mandate that the Federal Funds Rate not change from it’s current 2%.

In one ray of bright light for the fininacials in trouble, the British bank Barclay’s has entered into an agreement with embattled Lehman Brothers to purchase control of their U.S. capitals market business, giving the giant some much needed capital. There is debate as to whether it will be enough.