Category Archives: Recession

World Bank forecast is ugly..damn ugly.

The World Bank has released a report that has a very grim outlook regarding the global recession/depression. From WaPo:

The report said that 94 out of 116 developing countries have been hit by economic slowdowns. The World Bank projected that the economic crisis will push around 46 million people into poverty in 2009 through job and wage cuts, as well as declining flows of remittances, the money that foreign workers send to their families. Net private capital flows to emerging markets are plunging, set to fall to $165 billion this year — or 17 percent of their 2007 levels. Falling demand in the West is sparking the sharpest drop in world trade in 80 years, sending sales of the products and commodities of poorer nations spiraling down, the report said.

A great read to start off the week? No, but then…the truth is sometimes very very ugly. What it tells me is that as much as America is hurting, the poorer, third world nations are barely keeping their heads above water.

It ain’t over till the last Exec is done begging.

The Big Three are back on the Hill today, their hats in their hands and their jets out of sight. They got a plan, or so they say. From WaPo:

In its second attempt to persuade Congress to grant the U.S. auto industry $25 billion in emergency loans, Chrysler plans to make the case that automakers can cut their costs and point to the future by forging an alliance to share fuel-efficient vehicle technologies.

Ford will tell lawmakers that it intends to retool plants for smaller, more fuel-efficient cars as a part of its goal of becoming the fuel-efficiency leader in every vehicle category. General Motors will address its $43.3 billion debt burden and an upcoming multibillion-dollar payment to a union-run trust that will cover employee health-care costs.

Meanwhile, the Congress Critters are fighting amongst themselves over who is going to judge these plans. According to WaPo, Nan and Harry have said the following about which groups and/or departments will eyeball the automaker’s plans to get their collective shit together:

In their own letter to automakers last week, Reid and Pelosi said they “intend to give pertinent agencies within the executive branch, the Government Accountability Office, the Board of Governors of the Federal Reserve, as well as outside experts, the opportunity to comment on [the automakers’] work.”

It’s all so jacked up and it will not be getting any better any time soon. Meanwhile, Chase, who now owns Washington Mutual, announced they are shit-canning over 9,000 WaMu employees in the very near future.

Just in time for Christmas gents? How sweet of you.

62,000 workers laid off in June

Yet the idiots in the Federal government insists the unemployment rate remained static. Horseshit mutha fuckas! When 62000 people lose their jobs there is at the very least a blip on the screen, It’s not rocket science but it shows how fucked up our federal government is in delivering the correct news to we, the people. It’s propaganda at its worst m’dear reader.

Add to these numbers the amount of folks applying for unemployment-and you have almost half a million claims being paid to laid off workers around the US. These numbers do not take into account the folks that have used up their unemployment compensation.

All the MSM articles I read for this post quote the governments bullshit line that the unemployment rate remains steady. Once again, the MSM feeds us the bullshit that the federal government is handing out daily. We can’t believe the government and we surely can’t believe the MSM. There is one piece of information in the NYT writeup that seems to point to the truth:

The national unemployment rate climbed a full percentage point over the last year. That does not include people who are jobless and have given up looking for work, or people who have been bumped to part-time jobs from full time. Add in those people and the so-called underemployment rate rises to 9.9 percent. “The number of these underutilized workers is up over one million over the past year,” Mr. Bernstein wrote.

So enjoy your fourth of July..I say that w/tongue firmly planted in my cheek.

Citibank is having a firesale!

Run right down there and see what you can grab, you investor types. From the IHT writeup:

Citigroup, the largest U.S. bank, said Friday that it planned to shed $400 billion of assets within three years and increase revenue by up to 10 percent a year to restore profitability after huge losses tied to the flagging mortgage and credit markets.

Vikram Pandit, who became chief executive in December, announced the plans at a much-awaited presentation to investors and analysts. He has faced growing demands from investors to cut costs, shed poorly performing businesses and reinvigorate a stock price that has fallen more than half in the past year.

Citigroup has lost nearly $15 billion over the past two quarters, and suffered more than $45 billion of write-downs and credit losses since last summer, as the housing slump deepened, subprime mortgages imploded and credit markets tightened. More jobs will be cut, on top of 13,200 cuts announced this year.

Gee, the investors are screaming? LOL…I smirk at the irony of it all…

Layoffs at CBS News..

The recession is hitting the news division at CBS as well as all other departments. From TV Newser:

The corporate-wide CBS job cuts have made their way to West 57th St. Insiders tell us the layoffs at CBS News are division-wide; to editorial, technical operations and the bureaus.

At The Early Show, five people were shown the door yesterday. At least one didn’t go quietly, an insider tells us. A TVNewser tipster writes, “all 5 had run-ins with Shelley Ross” the Senior EP of the show who herself was ousted last month. Dust off those resumes because “more than a dozen” jobs are currently open on the show. The Early cuts were in the works for months, insiders say.

In addition to the cuts, some jobs are being added, some open positions are not being filled, while other jobs are being ‘redefined.’ “We are taking some steps to accommodate changes in technology and newsgathering that make the best use of our staff,” a spokesperson tells TVNewser.

Insiders say the cuts amount to “just over 1%” of the CBS News staff. CBS Corp. reported a 14.6% decline in fourth-quarter earnings. The share price is down 19% so far this year.

Earlier: Cuts at ABC News

Earlier: Cuts at NBC News/MSNBC

Goodness gracious..welcome to the real world news folks. We aren’t spending our money and neither are the companies at advertise. Why isn’t Fox Noise laying off is my only question..