- Saturday, January 31, 2009
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GDP numbers signal more slowdown
The U.S. economy suffered its biggest slowdown in more than 25 years, according to last quarter's GDP figures. And with inventory piling up and consumers slow to buy new things, the outlook's not good. Mitchell Hartman reports. More»
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Exxon's pumping profit in downturn
Exxon Mobil's fourth-quarter earnings fell 33% from a year ago, but it still reported a record profit for 2008. What's it doing that other companies aren't? Sam Eaton reports. More»
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House GOP explains 'no' stimulus vote
House Republicans, none of whom voted for the economic stimulus plan, are defending their positions as criticism from some constituents builds. Jeremy Hobson reports. More»
Marketplace Scratch Pad
News and views on the day's business and financial happenings.
Limiting $$$
Senate Democrats have taken the first step to limit pay for workers at companies receiving federal bailouts. Senator Claire McCaskill of Missouri introduced legislation to cap compensation at such companies at $400,000, the equivalent of the U.S. president’s salary. Another measure being proposed would create a court to restrain executive compensation, according to Bloomberg.
“We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer” by taking multimillion-dollar bonuses.” -Senator Claire McCaskill
- Jan 30, 2009 2:21 PM PT — Doug Krizner
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The Street's losses hurt NYC
Wall Street firms are expected to lose more than $47 billion for 2008, according to New York City Mayor Michael Bloomberg. He expects this year to be worse. The figures have forced the mayor to cut previously planned spending by $1 billion, as the city works to close a nearly $4 billion budget deficit, according to The Wall Street Journal:
…his administration might need to reduce its work force by more than 20,000. The largest reductions would come in the city’s homeless department, the children’s welfare agency and the education department.
- Jan 30, 2009 12:56 PM PT — Doug Krizner
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Fighting "Buy American"
Supporters of free trade, including The U.S. Chamber of Commerce, are trying to kill the “Buy American” provision in the economic stimulus plan, according to Reuters. Critics have called the Chamber’s opposition “economic treason,” but the group’s president fired back:
“Try economic patriotism. Such provisions would cost American jobs, trigger retaliation from our trading partners, slow economic recovery by delaying shovel-ready infrastructure projects and cede our leadership role as a longstanding proponent of free and fair trade and global engagement.”
- Jan 30, 2009 11:51 AM PT — Doug Krizner
- 1 Comments
GDP dives
The economy shrank 3.8% in the fourth quarter, according to the government’s initial estimate. While the drop was not as bad as some economist had feared, it’s the worst showing in 26 years, as consumer spending and business investment all but disappeared. The New York Times quotes economist Alan Levenson:
“It was basically a train wreck for the economy in the fourth quarter.”
- Jan 30, 2009 5:49 AM PT — Doug Krizner
- 0 Comments
Ponziman
Connecticut toymaker Emil Vicale, who manufactures action figures out of his home workshop, has a new character is his lineup: Bernie Madoff. Retailing for $149.99, the “limited edition” Madoff doll features a fistful of $100 bills and a luxury wristwatch painted with real 24-karat gold, according to Dealbreaker.
“He’s wiped out people’s life savings, he’s destroyed their kids’ lives and their grandchildren’s lives. In other cultures, wouldn’t they just cut his head off?”
(dealbreaker.com)
- Jan 29, 2009 10:50 AM PT — Doug Krizner
- 0 Comments
The Fed's mea culpa
In September, the central bank quietly took the unusual step of hiring consumer advocate Allen Fishbein. The move may have been the Fed’s way of admitting failure to see the problems which created the financial crisis. For years, Fishein sounded the alarm about abuses in subprime lending and the dangers of deregulating the banking industry, according to Mother Jones.
…Fishbein’s arrival there is one of several hints that real change is indeed afoot. Recent developments suggest that the Fed is cracking open the doors of the temple and may be taking a more aggressive approach to banking regulation on behalf of consumers.
- Jan 29, 2009 9:11 AM PT — Doug Krizner
- 0 Comments
Fallout: America's Financial Crisis
- Podcast »
After the Bell
Listen to Marketplace's review of the week's top stories on America's financial crisis. Subscribe now.
* An iTunes "Best Podcasts of 2008" selection.
- The Whiteboard »
Mark to market
There's a debate in financial circles over whether banks are unfairly penalized by the requirement that they "mark to market" their holdings. Marketplace Senior Editor Paddy Hirsch explains what that term means. Watch the video.
- Getting Personal »
Q: What's a depression?
What is the difference between a recession and a depression? With daily news of layoffs, unemployment rates, home foreclosures, and the lack of jobs available, it seems like we're in a depression to me.... Thanks. Joeth, Lincoln, NE Read Chris Farrell's answer »
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Taking Stock »
Conversations with individuals who can give us the long view of our economic situation. Get their views.
Here's what I'm doing »
A wide range of people tell how they're handling investments and savings in this tough economy. Get their stories.
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