Entries Tagged as 'Economy'

Black Friday

It’s Black Friday… though I suspect with this economy most retailers will continue to see red rather than black on the balance sheets this year…

Oh, and just because the retails “report” good numbers – keep watch for the “revisions” for the sales numbers that are likely to follow.

Reality sucks almost as much as the economy.

Black Friday on Wikipedia

New Year – Same Down Economy

Retailers started releasing fourth quarter earning reports yesterday.

There’s no surprise here — Target, the number two retailer in the US, announced on Christmas Eve that sales would not meet there expectations; and Master Card also indicated that spending (via credit card) was down.

Wal-Mart, of course, tipped everyone off that they expected a bad retail season when they started their “Black Friday” sales three weeks before Thanksgiving and most retailers followed suit with deep discounts through out the retail season.

While a bad retail season doesn’t by itself mean that the economy will continue to slump, there are certainly enough signs to that effect (personally I’m ignoring the US Department of Labor’s unemployment numbers… they simply don’t make sense, they don’t seem to reflect reality, and they are designed to be misleading).

I certainly don’t have a crystal ball, but the long the economy continues the slide downward the harder it will be to revive.  My instinct tells me that this downturn, like The Great Depression, will not be ended by planning and programs — but by aggression, greed, and exploitation.

The solution to illegal immigration

Wow, it looks like the GOP really knew what they were doing by driving the economy into the toilet.

I guess the GOP realized that they weren’t really getting any traction on protecting American jobs from illegal immigrants through circumventing the law and harassment, so they just decided to make the economy in the United States worse than most every where else in the world…

…and it’s working!

Reports from the Pew Hispanic Center indicate that the number of illegal immigrants entering this country per year has been steadily dropping since 2007.

Maybe this is why the Republican’s have seemingly resisted all the efforts to get the economy back on track.

Region 2009 2008 Change
South Atlantic 1,950 2,550 -600
Florida 675 1,050 -375
Others combined 1,050 1,200 -160
Mountain 1,000 1,200 -160
Nevada 180 230 -50
AZ-CO-UT 700 825 -130

Source: Pew Hispanic Center

The South Atlantic consists of Delaware, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia. The Mountain region consists of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming.

Ups and Downs

Just as the trucking industry tells us that delivery volume has been steadily increasing since the beginning of the years; retailers tell us that consumers are beginning to spend less.

And the Commerce Department announced that the recession was deeper than previously estimated.

Who’s doing the estimates?

Anyone with any sense knew the economy was in bad shape, and that it would likely take a number of years before there was any real improvement, and potentially a decade before we truly recovered.

You have to ask yourself are the people in Washington DC and on Wall Street stupid — or do they just think the American public are so stupid they will believe anything?

Personally I feel this is a catastrophic event in World history that requires leadership to acknowledge it’s severity and begin making long term plans for recovery while creating short term safety nets to keep society afloat.

Just one more sign that anyone who’s been in office in this country isn’t part of the solution — they’re part of the problem.

INCUMBENTS

LA Auto Show

The auto show might be a no show…

With the big three US auto makers in dire financial shape, and most Americans finding themselves worrying more about how to put food on the table than considering a new vehicle… but the show must go on!

Some high lights:

  • The Mini Cooper Electric, the Mini E
  • The new Honda Insight [Concept] – redesigned to be more like the Toyota Prius, alledgedly with better fuel economy, and less expensive.
  • The new Ford Fusion and Mercury Milan hybrid sedans ($1000 more than the Toyota Camry hybrid)
  • The all-new Nissan Cube (similar to, but smaller than the Scion xB)

Several auto makers with drew plans to launch vehicles at the auto show.

This is a mistake that we will pay for for years to come!

Yes, today is Pearl Harbor day, but the title isn’t what Japan’s Admiral Yamamoto said after the attack (that was in fact, “I fear we have awakened a sleeping tiger and filled it with a great resolve”) — it’s actually what Richard Gephardt (of Missouri), then Democratic House Leader, said about the $1.6 trillion in tax cuts that then President George W Bush singed into effect after stepping into the presidency in January 2001.

Georgie and his buddies the conservatives taunted that the huge surplus amassed under the eight years of prosperity of President Bill Clinton was the result of the American government overcharging the average person in taxes.  So they concocted a tax cut (40% of which was targeted at the wealthiest 1% of Americans) which would reverse the projected $5.6 trillion surplus over the next ten years.

Well, ten years later this country is in the worst economic condition since the great depression — unemployment (even by government figures) is in double digits, and there’s really no sign of substantial improvement on the horizon and there’s a debate about renewing those tax cuts…

For the average American the tax cuts makes no difference; even for fairly wealthy Americans they don’t make much difference — it’s really only for the wealthiest of the wealthy that they tax cuts make a substantial difference; or put plainly, it benefits those who are doing fine — and in the long run may harm those who are barely hanging on.

We don’t have a budget surplus any longer (in fact, I’d argue we never had a budget surplus — we had a debt that we could have, and should have, paid down).

President Obama has proposed a tax plan that will give most Americans the same tax savings that the old Bush plan did, but it will remove the tax cuts that the richest Americans got… but I’m not sure we shouldn’t be finding a more equitable way to tax rather than continuing to convolute the tax laws so that those with wealth and power can twist the law to serve their needs.

Economic Recovery

The Fed is telling us that we’re on the road to recovery… that economic activity improved across all 12 regions tracked, and have reminded us that the last time all regions were in a growth mode was prior to December 2007.  Remember, though, the Fed told us all several months ago that economic activity improved in all regions except for St Louis (which was marginal).

The Fed chairman was upbeat in a report to congress that the economy is likely to expand, though slowly – and we needed to be weary of the European debt crisis (and slipped in warnings about high unemployment and a fragile housing market here at home).

But we’re also told by the Labor Department that job openings in April rose to the highest level in 16 month to 3.1 million (from 2.8 million in March).  Remember, these are openings advertised, not necessarily openings filled… and even with those statistics there are 5 unemployed people for each job opening.

I think it’s great to paint a positive picture — but I also think it’s important to keep people well grounded in the reality that the economic down turn is far from over; and while the Fed might like to encourage increased spending to speed a recovery — that’s more of a chicken-and-egg problem than they’re willing to admit… after all nearly 20% of this country is unemployed (though the government clever fuzzy math makes that number out to be much lower), and most of those people aren’t independently wealthy!

Hidden Evil

Many of my friends and I have engaged in intellectual discussions about the evils of society and what most needs to be fixed.

Views of what’s evil, though, largely depend on your perspective — social liberals might call something evil that a fiscal conservative feels is simply just; and vice-versa.

If you’re a conspiracy buff you’ll enjoy reading through the TheHiddenEvil.com.  Volume I contains a number of factoids, and draws interesting conclusions (I’m certainly not going to say I agree with any or all of them).  Volume II builds on Volume I to make some fairly remarkable assertions — of maybe they’re just hard to believe (or hard to read without a giggle or two at least).

With disinformation an accepted practice of government, organized religion, and business it’s always hard to say definitively what is true and what is a shade of gray.

CEO Pay Cut

I don’t think any of them need to worry about landing in the poor house, but here’s a list of the twenty largest pay cuts this year.  I guess the economy must be down — perhaps we can take up a collection to help them all out.


  1. Lloyd C. Blankfein, -$40.1 million
    Company: Goldman Sachs Group (GS)
    2009 salary: $600,000 (same as 2008)
    2009 bonus, options and other comp: $262,657 (down $40.1 million from 2008)
    Lloyd C. Blankfein
  2. Vikram S. Pandit, -$38.1 million
    Company: Citigroup (C)
    2009 salary: $125,001 (down $833,332 from 2008)
    2009 bonus, options and other comp: $3,750 (down $37.3 million from 2008)
    Vikram S. Pandit
  3. James Dimon, -$34.5 million
    Company: JPMorgan Chase (JPM)
    2009 salary: $1,000,000 (same as 2008)
    2009 bonus, options and other comp: $265,708 (down $34.5 million from 2008)
    James Dimon
  4. Robert A. Iger, -$29.5 million
    Company: Walt Disney (DIS)
    2009 salary: $2,038,462* (up $38,462 from 2008)
    2009 bonus, options and other comp: $19.5 million (down $29.5 million from 2008)
    Robert A. Iger
  5. David M. Cote, -$15.9 million
    Company: Honeywell International (HON)
    2009 salary: $1,800,000 (down $25,962 from 2008)
    2009 bonus, options and other comp: $11 million (down $15.9 million from 2008)
    David M. Cote
  6. Richard H. Anderson, -$15.7 million
    Company: Delta Airlines (DAL)
    2009 salary: $600,000 (same as 2008)
    2009 bonus, options and other comp: $1.2 million (down $15.7 million from 2008)
    Richard H. Anderson
  7. Louis C. Camilleri, -$12.4 million
    Company: Philip Morris International (PM)
    2009 salary: $1,500,000 (down $67,308 from 2008)
    2009 bonus, options and other comp: $23 million (down $12.3 million from 2008)
    Louis C. Camilleri
  8. Rupert Murdoch, -$12.1 million
    Company: News Corp. (NWSA)
    2009 salary: $8,100,000* (same as 2008)
    2009 bonus, options and other comp: $9.8 million (down $12.1 million from 2008)
    Rupert Murdoch
  9. Kenneth I. Chenault, -$11.3 million
    Company: American Express (AXP)
    2009 salary: $1,201,923 (down $48,077 from 2008)
    2009 bonus, options and other comp: $15.4 million (down $11.2 million from 2008)
    Kenneth I. Chenault
  10. Mark V. Hurd, -$9.8 million
    Company: Hewlett-Packard (HPQ)
    2009 salary: $1,268,750* (down $181,250 from 2008)
    2009 bonus, options and other comp: $22.9 million (down $9.6 million from 2008)
    Mark V. Hurd
  11. Kenneth D. Lewis, -9.0 million
    Company: Bank of America (BAC)
    2009 salary: 0* (down $1.5 million from 2008)
    2009 bonus, options and other comp: $32,171 (down $9.0 million from 2008)
    Kenneth D. Lewis
  12. Stephen A. Roell, -$8.4 million
    Company: Johnson Controls (JCI)
    2009 salary: $1,371,500* (up $46,500 from 2008)
    2009 bonus, options and other comp: $5.1 million (down $8.5 million from 2008)
    Stephen A. Roell
  13. James W. Owens, -$7.9 million
    Company: Caterpillar (CAT)
    2009 salary: $1,550,004* (same as 2008)
    2009 bonus, options and other comp: $5.2 million (down $7.9 million from 2008)
    James W. Owens
  14. John B. Hess, -$7.8 million
    Company: Hess (HES)
    2009 salary: $1,500,000 (same as 2008)
    2009 bonus, options and other comp: $12.1 million (down $7.8 million from 2008)
    John B. Hess
  15. John T. Chambers, -$6.0 million
    Company: Cisco Systems (CSCO)
    2009 salary: $375,000* (same as 2008)
    2009 bonus, options and other comp: $12.4 million (down $6.0 million from 2008)
    John T. Chambers
  16. Miles D. White, -$3.2 million
    Company: Abbott Laboratories (ABT)
    2009 salary: $1,852,319 (up $56,848 from 2008)
    2009 bonus, options and other comp: $20.1 million (down $3.2 million from 2008)
    Miles D. White
  17. Daniel R. Hesse, -$3.1 million
    Company: Sprint Nextel (S)
    2009 salary: $1,200,000 (same as 2008)
    2009 bonus, options and other comp: $11.1 million (down $3.1 million from 2008)
    Daniel R. Hesse
  18. Thomas M. Ryan, -$3.0 million
    Company: CVS Caremark (CVS)
    2009 salary: $1,400,000 (same as 2008)
    2009 bonus, options and other comp: $14.8 million (down $3.0 million from 2008)
    Thomas M. Ryan
  19. Ivan G. Seidenberg, -$2.9 million
    Company: Verizon Communications (VZ)
    2009 salary: $2,100,000 (same as 2008)
    2009 bonus, options and other comp: $14.9 million (down $2.9 million from 2008)
    Ivan G. Seidenberg
  20. Frederick W. Smith, -$2.7 million
    Company: FedEx (FDX)
    2009 salary: $1,355,028* (down $75,438 from 2008)
    2009 bonus, options and other comp: $6.4 million (down $2.6 million from 2008)
    Frederick W. Smith

Source: Equilar Inc.

US Auto Makers

The “Big Three” US automobile manufacturers are quick to tell you they’re not looking for a bail out, they’re looking for bridge loans.

Well… what’s the difference between a bridge loan to a business that’s likely to fail and giving them money for bad assets?

NADA!

It really doesn’t matter what the wording is, bail out, bridge loan, give away… it’s all the same.  The money from hard working American tax payers being given to companies that have made bad decisions and are looking for someone else to pay the price.

And why isn’t part of the $700B we’ve already approved being used?

Why are we gutting a fund that’s been setup to help create automobiles that move us toward energy independence?

Like so many Americans are asking — Where’s my bail out?

It’s great the congress is grilling the auto makers before they hand out more money — but why didn’t they hold Wall Street to the same standards?

This whole thing is very suspect… I mean all the American who are out of work, are we going to extend unemployment benefits for as long as it takes to turn the economy around?  They certainly didn’t contribute to these short sighted decisions… they don’t get $15 million in compensation per year…

I think before any more of the $700B is handed out, or before we approve more money for short sighted businesses we need to lay down a road map that helps us understand how the average American who’s been hit hard by these events is going to survive.

Maybe we need Twisted Sister to sing “We’re not going to take it…” at the opening of ever congressional hearing and session!