Bulls, Bears & Bucks #49: 50.000 banen weg bij Citigroup

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US May Lose Its 'AAA' Rating
The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.
"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

"In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke sa

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Op woensdag 12 november 2008 19:31 schreef Billary het volgende:

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http://www.cnbc.com//id/27641538 (filmpje).

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Op woensdag 12 november 2008 19:58 schreef Sigmund_Freud het volgende:

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Dat zou pas ECHT een signaal afgeven..."US May Lose Its 'AAA' Rating" zie het helaas nog niet zo snel gebeuren want helemaal onafhankelijk zijn die rating bureaus niet - dat hebben we de laatste maanden wel gezien..

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Op woensdag 12 november 2008 20:15 schreef Dinosaur_Sr het volgende:

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belangrijker nog: niemand heeft er belang bij, dus gebeurt het ook niet

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Fed Defies Transparency Aim in Refusal to Disclose

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

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Paulson Shifts Focus of Rescue to Consumer Lending (Update3)

By John Brinsley and Robert Schmidt

Nov. 12 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy devalued mortgage assets.

``Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards,'' Paulson said today in a speech at the Treasury in Washington. ``This is creating a heavy burden on the American people and reducing the number of jobs in our economy.''

Paulson's remarks are an acknowledgement that the pitch he made to Congress for the bailout hasn't delivered what was promised. Paulson sold the rescue plan as a way to rid bank balance sheets of illiquid mortgage assets, and he may encounter resistance from Congress for the remaining $350 billion in TARP funds after using most of the first half to buy bank stakes.

Lawmakers will ``put his feet to the fire,'' said Kevin Petrasic, a former official at the Office of Thrift Supervision, now an attorney with the Paul, Hastings, Janofsky & Walker law firm in Washington. ``I'm not sure how you get around dealing with what is clearly the congressional intent.''

Paulson said he has no regrets for the revised plan. ``I will never apologize for changing a strategy or an approach if the facts change,'' he said at a press conference.

Treasury and Federal Reserve officials are exploring a new ``facility'' to bolster the market for securities backed by assets, Paulson said, adding later that the program would be ``significant in size.'' Officials are considering using a portion of the bailout money to ``encourage private investors to come back to this troubled market,'' he said.

Private Capital

The Treasury chief said the department is also considering having companies that accept new taxpayer funding get matching private capital. Buying ``illiquid'' mortgage-related assets -- the reason the Troubled Asset Relief Program was established a month ago -- is no longer being considered, he said.

``Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role,'' he said.

Paulson has committed all but $60 billion of the initial $350 billion allocated by Congress to take equity stakes in banks and in insurer American International Group Inc. Lawmakers, who could reject Treasury requests for the remaining $350 billion, are pushing for aid to automakers including General Motors Corp. Paulson is resisting.

Automakers' `Viability'

Automakers ``are a key part of our manufacturing industry and manufacturing is critical,'' Paulson said in response to a question after his prepared remarks. ``We need a solution, but the solution has got to be one that leads to viability.''

Paulson said he has no timeline for notifying Congress of his intent to use the remaining TARP funds, and reiterated that he's ``comfortable'' that $700 billion is ``what we need'' to stabilize the financial system.

With less than three months left in the Bush administration, demands for assistance from foundering companies will likely escalate. The Treasury two days ago took a $40 billion stake in AIG. American Express Co. this week converted into a bank-holding company, making it eligible for funds.

Democrat Barack Obama assumes the U.S. presidency on Jan. 20. Obama said last week his economic team will ``review the implementation'' of the rescue plan, suggesting he may have different priorities for its use.

In his remarks today, Paulson said that the Bush administration ``has taken the necessary steps to prevent a broad systemic event.''

Still, the secretary said that conditions remain ``fragile'' and that the stability of the financial system continues to be his highest priority.

Paulson also said that the Treasury will continue to look for strategies to help homeowners avoid foreclosure.

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Op woensdag 12 november 2008 20:59 schreef SeLang het volgende:


Vrije markt economie

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Op woensdag 12 november 2008 21:53 schreef pberends het volgende:

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Lijkt wel socialisme inderdaad. Waarom ze GM in stand willen houden is me een raadsel. Waarom geven ze het geld niet aan Tesla Motors zodat hun kunnen uitbreiden en echt auto's kunnen maken waar vraag naar is ?

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Intel says fourth-quarter results to be 'below expectations'

Intel Corp. said late Wednesday that it expects financial results for its current, fourth fiscal quarter to be "below expectations." The chip maker and technology bellwether Intel Corporation said it now expects fourth-quarter revenue to be $9 billion, "plus or minus $300 million," which is lower than the company's previous expectation of between $10.1 billion and $10.9 billion. "Revenue is being affected by significantly weaker than expected demand in all geographies and market segments," Intel said in a statement. "In addition, the PC supply chain is aggressively reducing component inventories."

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Op woensdag 12 november 2008 20:59 schreef SeLang het volgende:

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Het oorspronkelijke bailout plan is dus gewoon mislukt. (voorspelbaar overigens)

Nu wil men geld gaan gebruiken om o.a. de autoindustrie te gaan steunen. Nog los van het feit dat bedrijven als GM niet voor niets in de problemen zijn gekomen (ze hebben slechte strategische keuzes gemaakt en hebben m.i. eigenlijk geen bestaansrecht meer) zet dit een stevige protectionistische koers in. Tientallen miljarden staatssteun voor zwakke industrieen. Oneerlijke concurrentie dus. Andere landen zullen dan wel moeten volgen door ook staatssteun te gaan geven, of anders importheffingen te introduceren, etc.

Vrije markt economie

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Op woensdag 12 november 2008 21:53 schreef pberends het volgende:

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Lijkt wel socialisme inderdaad. Waarom ze GM in stand willen houden is me een raadsel. Waarom geven ze het geld niet aan Tesla Motors zodat hun kunnen uitbreiden en echt auto's kunnen maken waar vraag naar is ?

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Op woensdag 12 november 2008 20:59 schreef SeLang het volgende:
Nu wil men geld gaan gebruiken om o.a. de autoindustrie te gaan steunen. Nog los van het feit dat bedrijven als GM niet voor niets in de problemen zijn gekomen (ze hebben slechte strategische keuzes gemaakt en hebben m.i. eigenlijk geen bestaansrecht meer) zet dit een stevige protectionistische koers in. Tientallen miljarden staatssteun voor zwakke industrieen. Oneerlijke concurrentie dus. Andere landen zullen dan wel moeten volgen door ook staatssteun te gaan geven, of anders importheffingen te introduceren, etc.

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Op woensdag 12 november 2008 23:18 schreef Billary het volgende:
Erg vermakelijk:

Peter Schiff Was Right 2006-2007

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Op woensdag 12 november 2008 22:16 schreef LXIV het volgende:

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Wanneer GM valt zal de staat al die pensioenen moeten ophoesten. Plus al die andere uitkeringen die ontstaan. Dat kan meer kosten dan het overeind houden van GM.

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Op donderdag 13 november 2008 02:10 schreef Dinosaur_Sr het volgende:

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welkom in USA. Als GM failliet gaat, staat het personeel met lege handen. Dit is Nederland niet.

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Op donderdag 13 november 2008 02:10 schreef Dinosaur_Sr het volgende:

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welkom in USA. Als GM failliet gaat, staat het personeel met lege handen. Dit is Nederland niet.

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Op woensdag 12 november 2008 21:52 schreef pberends het volgende:

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http://www.tijd.be/nieuws(...)lson.8102855-442.art

Grappig. Dus als Paulson met een nieuwe oplossing hiervoor komt gaan de beurzen weer sky-rocketing?

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Op donderdag 13 november 2008 10:25 schreef MoltiSanti het volgende:

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wat is het voordeel van bank worden?

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Op woensdag 12 november 2008 21:10 schreef Basp1 het volgende:

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Ik denk dat we onze overheid maar moeten overtuigen dat we voordat het grote banen verlies in nederland begint alvast fokker maar weer nieuw leven moeten gaan in blazen en met een flinke zak overheidsgeld.

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First-time claims for U.S. unemployment insurance rose last week to the highest level since September 2001, when the economy was last in a recession, as weakening demand led companies to fire more workers.

Initial jobless claims increased by 32,000 to a larger- than-forecast 516,000 in the week ended Nov. 8, from a revised 484,000 the prior week, the Labor Department said today in Washington. The total number of people on benefit rolls jumped to the highest level since 1983.

Restrictive credit and slumping demand are causing companies to retrench by trimming payrolls and investment. Rising joblessness will further squeeze consumer spending, which accounts for more than two-thirds of the economy, and threaten a protracted downturn, economists said.

``The labor market is only reinforcing a very pessimistic picture,'' Linda Barrington, a labor economist at the Conference Board, said in a Bloomberg Television interview. ``When you start to see the downward pressure on wages as well as the credit crunch, that's only going to make consumers much more nervous.''

Trade Deficit Narrows

Another government report showed the U.S. trade deficit narrowed more than forecast in September as a record decline in the cost of foreign crude oil caused fuel imports to tumble. The gap shrank 4.4 percent to $56.5 billion, the smallest in almost a year, from $59.1 billion in August, the Commerce Department said today in Washington. Excluding petroleum, the deficit widened as overseas sales of American-made goods dropped by the most since 2001.

Economists surveyed by Bloomberg had anticipated a reading of 480,000, based on the median of 40 projections in a Bloomberg News survey, from the originally reported 481,000 in the prior week. Estimates ranged from 465,000 to 500,000 initial claims.

The total number of Americans receiving jobless benefits rose to 3.897 million in the week ended Nov. 1, the highest level since January 1983.

The four-week moving average of initial claims, a less volatile measure, rose to 491,000 last week, the highest since March 1991, from 477,750 a week earlier. So far this year, weekly claims have averaged 400,600, compared with an average of 321,000 for all of 2007, when the economy added a total of 1.1 million jobs.

The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 2.9 percent. These data are reported with a one-week lag.

Thirty-six states and territories reported an increase in new claims, while 17 reported a decrease.

Unemployment Rate

The labor market is weakening as the economy appears to be in its first downturn since 2001. The jobless rate rose to 6.5 percent in October, the highest since 1994, the government said last week.

Employers cut 240,000 jobs last month, for a total so far this year of 1.2 million jobs lost, while the total number of unemployed Americans jumped to 10.1 million, the highest level in a quarter century, according to last week's jobs report from the Labor Department.

Job Cuts

The monthly non-farm payrolls numbers reflect job growth and they tend to fall as the weekly initial jobless claims figures, which reflect firings, rise.

Companies are trimming staff as consumer spending is forecast to fall through at least March, according to economists surveyed by Bloomberg early this month. Banks, faced with mounting losses and writeoffs as the financial crisis spread over the past year, have been sacking thousands of workers.

Citigroup Inc. and Goldman Sachs Group Inc., faced with a weakening economy and the prospect of mounting losses, began firing workers as part of the firms' plans to cut more than 12,000 jobs, people with knowledge of the matter said last week.

Goldman, which converted last month from the biggest U.S. securities firm into a commercial bank, on Nov. 5 began telling about 3,200 employees, or 10 percent of its workforce, they were out of a job, according to one of the people who declined to be identified because the decisions were confidential.

Citigroup began notifying staff last week who are affected by the bank's plan to discard 9,100 positions over the next 12 months, or about 2.6 percent of its headcount, another person said.

Both New York-based firms have already cut staff, and are among the banks and brokerages worldwide that have shed almost 150,000 jobs since the subprime mortgage market collapsed last year.