Stefan B.
05-27-2009, 03:09 AM
link original:
http://www.lifeaftertheoilcrash.net/BreakingNews.html
Washington Post: A Make or Break Week for the Future of General Motors
The clock is ticking on a June 1 deadline for General Motors to restructure, and this make-or-break week is expected to bring more plant closures, employee concessions and other last-minute efforts. Without changes, the automaker will have to file for bankruptcy protection by next Monday.
Reuters: "Stage is set for the largest-ever U.S. industrial bankrupty filing"
The largest U.S. automaker had so far failed to gain anywhere near the 90% of bondholder support desired to stave off bankruptcy, two sources familiar with the discussions told Reuters on Tuesday. Bondholders have until midnight to make their final decision on the tender. As of midday Tuesday, the source said the company had only "low-single-digit" interest.
NY Times: A General Motors Bankruptcy Would be the Most Complex Ever
How many lawyers will end up working on G.M.’s expected bankruptcy case still is not clear, but in legal circles, the joke is that there may not be enough experienced bankruptcy lawyers available to handle the filing.
Kunstler: "About a week remains before GM is reduced to lunch meat . . .. . . the bankruptcy of General Motors may set in motion a chain of events that will accelerate the destructive unwind of the bad credit economy, the damage to our bond values, the loss of faith in our currency, and the authority and legitimacy of our leaders. This last dire outcome might be allayed if, say, President Obama directed his policy efforts to the items in the paragraph above, that is, a reality-based agenda for true change in how we live - but who can feel confident about that happening these days? Maybe it will take a horrifying chain of events to get Mr. Obama there. And then, tragically, he may be overwhelmed by the chain of events itself . . .
Business Week: A GM Bankruptcy Could "Devastate" Entire U.S. Economy
There's a strong probability the decision to push GM into bankruptcy will be disastrous. The mere threat of bankruptcy caused GM's U.S. sales to fall by 50% in the first quarter from already depressed levels. If GM were to file Chapter 11 bankruptcy, sales would decline even further . . . Then there are the thousands of suppliers, organized in multiple tiers, that support GM. This system depends on a vast, delicately balanced series of contracts and long-term relationships. Many of these suppliers are already hanging on by
their fingernails. The longer the uncertainty of bankruptcy lasts, the more likely they are to delay making crucial parts and the more likely it is that some will simply go out of business. In cases where alternate suppliers are not available, GM's assembly lines could even . . . be forced to shut down.
CNN Money: Judgement Day For Chrysler, Hundreds of Dealers is at Hand
Wednesday is judgment day for Chrysler and hundreds of auto dealers, when their fate could be decided in bankruptcy court, but some experts think it's already a done deal. The federal judge in Chrysler LLC's Chapter 11 case could decide on May 27 whether the automaker can pull its choice assets - its best-performing factories and dealerships - out of bankruptcy and sell them to a newly-formed incarnation of itself, called Chrysler Group.
UK Telegraph: China Issues Warning to Top Member of US Federal Reserve
China has warned a top member of the US Federal Reserve it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds. Richard Fisher, president of the Dallas Federal Reserve Bank, said: Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."“ I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed the preoccupation of those that were invested with their surpluses mostly in the United States . . ."
UK Telegraph: "S&P’s Warning to Britain Marks the Next Sage of this Crisis"
Governments had taken drastic measures to shore up their capital and ensure their survival. But the mountain of debt that had poisoned the financial system had not disappeared overnight. Instead, it was shifted from the private sector onto the public sector balance sheet. Britain has taken on hundreds of billions of pounds of bank debt and stands behind
potentially trillions of dollars of contingent liabilities. If the first stage of the crisis was the financial implosion and the second the economic crunch, the third stage is where governments topple under the weight of this debt.
Wall Street Journal: Americans Clash With Immigrants Over Job Openings
Now, with U.S. unemployment at a 25-year high, they are also fiercely coveted. American workers -- who for years have largely avoided fruit -picking, office-cleaning and meat-processing shifts -- are increasingly vying for these jobs with immigrants, creating flashpoints . . .
Asia Times: "California faces a frightening new peril, massive budget cuts"
Big cuts, in areas such as public instruction, public safety, corrections, parks and just about everything the state government pays for are now considered inevitable. Even this may not be enough. Many are contending the crisis will not end until the cash-strapped federal government in D.C. provides assistance to the cash-strapped California government . . .
Economist: For California, a "Savage" Round of Budget Cuts Now Awaits
As a result of California’s election, the state now faces a $21.3 billion gap between revenues and spending. Life, which has been no picnic for many in this state since the recession began, is about to get a lot worse. There have already been two rounds of budget cuts since last autumn. A third, savage, round must now follow. Just as Mr Obama is trying to give more people access to medical care, California will be taking it away . . .
The Big Money: Hold on Tight, California the Next Casaulty in Bailout Ward
So where do we stand now? Well, first the federal government is now going to have to guarantee California's debts. Let's face it: California really is too big to fail . . . even as the federal government is desperately ramping up its stimulus spending, Schwarzenegger and the Legislature will be hacking away at anything that pokes its head up in, cutting spending Hoover-style.
UK Independent: Cold, Hunger, Job Losses Ignite Dissent in Russian Town
The Kremlin's worst fears are being played out in a small town outside St Petersburg, as angry residents of crisis-hit Pikalevo marched upon the offices of the mayor and demanded improved living conditions. The final straw came when the town lost heating and hot water as the local power station couldn't afford to keep running. Even kindergartens and hospitals were left without hot water. The town's gas supply was also cut off.
Washington Post: Housing Market Bust Leaves Most Sellers with a Loss
In the past six months, most Washington area sellers have lost money on houses they purchased since prices started climbing in 2000, according to a Washington Post analysis. In the first three months of this year, 62% of local home sellers accepted less than they paid for their homes, in part because aggressively priced foreclosures have dragged down prices . . .
San Francisco Chronicle: Signs of More Trouble Ahead for Housing Market
Warren Buffett and Alan Greenspan say the housing market is near bottom. Peppy real estate agents and gloomy stock-market traders alike eagerly embrace that supposition. Wall Street is so hungry for good news that stocks rallied at the barest hint of upbeat indicators several times this month. But an array of pending issues undercuts the turnaround theorists.
Wall Street Journal: There's No Sign the Housing Market Has Hit a Bottom
For the first quarter, the S&P/Case-Shiller U.S. National Home Price Index posted a 19.1% drop from a year earlier, the biggest quarterly decline for the reading's 21-year history. Separately, the monthly numbers showed 15 of 20 major metropolitan areas posted price declines of more than 10% from a year earlier, with the Sun Belt continuing to be hit hardest [of all].
NY Times: Britain's Top Divorce Lawyer Says Business "Never been better"
For years, just the word that London’s premier divorce lawyer, Raymond Tooth, was calling was enough to spread fear and loathing among a certain class of wealthy British men. And now, under the pressure of the financial crisis, more divorcing wives than ever are turning to Mr. Tooth to make sure they get as much money as they can, even as the fortress of their husbands’ riches crumbles. "I have never been so busy," Mr. Tooth said . .
http://www.lifeaftertheoilcrash.net/BreakingNews.html
Washington Post: A Make or Break Week for the Future of General Motors
The clock is ticking on a June 1 deadline for General Motors to restructure, and this make-or-break week is expected to bring more plant closures, employee concessions and other last-minute efforts. Without changes, the automaker will have to file for bankruptcy protection by next Monday.
Reuters: "Stage is set for the largest-ever U.S. industrial bankrupty filing"
The largest U.S. automaker had so far failed to gain anywhere near the 90% of bondholder support desired to stave off bankruptcy, two sources familiar with the discussions told Reuters on Tuesday. Bondholders have until midnight to make their final decision on the tender. As of midday Tuesday, the source said the company had only "low-single-digit" interest.
NY Times: A General Motors Bankruptcy Would be the Most Complex Ever
How many lawyers will end up working on G.M.’s expected bankruptcy case still is not clear, but in legal circles, the joke is that there may not be enough experienced bankruptcy lawyers available to handle the filing.
Kunstler: "About a week remains before GM is reduced to lunch meat . . .. . . the bankruptcy of General Motors may set in motion a chain of events that will accelerate the destructive unwind of the bad credit economy, the damage to our bond values, the loss of faith in our currency, and the authority and legitimacy of our leaders. This last dire outcome might be allayed if, say, President Obama directed his policy efforts to the items in the paragraph above, that is, a reality-based agenda for true change in how we live - but who can feel confident about that happening these days? Maybe it will take a horrifying chain of events to get Mr. Obama there. And then, tragically, he may be overwhelmed by the chain of events itself . . .
Business Week: A GM Bankruptcy Could "Devastate" Entire U.S. Economy
There's a strong probability the decision to push GM into bankruptcy will be disastrous. The mere threat of bankruptcy caused GM's U.S. sales to fall by 50% in the first quarter from already depressed levels. If GM were to file Chapter 11 bankruptcy, sales would decline even further . . . Then there are the thousands of suppliers, organized in multiple tiers, that support GM. This system depends on a vast, delicately balanced series of contracts and long-term relationships. Many of these suppliers are already hanging on by
their fingernails. The longer the uncertainty of bankruptcy lasts, the more likely they are to delay making crucial parts and the more likely it is that some will simply go out of business. In cases where alternate suppliers are not available, GM's assembly lines could even . . . be forced to shut down.
CNN Money: Judgement Day For Chrysler, Hundreds of Dealers is at Hand
Wednesday is judgment day for Chrysler and hundreds of auto dealers, when their fate could be decided in bankruptcy court, but some experts think it's already a done deal. The federal judge in Chrysler LLC's Chapter 11 case could decide on May 27 whether the automaker can pull its choice assets - its best-performing factories and dealerships - out of bankruptcy and sell them to a newly-formed incarnation of itself, called Chrysler Group.
UK Telegraph: China Issues Warning to Top Member of US Federal Reserve
China has warned a top member of the US Federal Reserve it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds. Richard Fisher, president of the Dallas Federal Reserve Bank, said: Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."“ I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed the preoccupation of those that were invested with their surpluses mostly in the United States . . ."
UK Telegraph: "S&P’s Warning to Britain Marks the Next Sage of this Crisis"
Governments had taken drastic measures to shore up their capital and ensure their survival. But the mountain of debt that had poisoned the financial system had not disappeared overnight. Instead, it was shifted from the private sector onto the public sector balance sheet. Britain has taken on hundreds of billions of pounds of bank debt and stands behind
potentially trillions of dollars of contingent liabilities. If the first stage of the crisis was the financial implosion and the second the economic crunch, the third stage is where governments topple under the weight of this debt.
Wall Street Journal: Americans Clash With Immigrants Over Job Openings
Now, with U.S. unemployment at a 25-year high, they are also fiercely coveted. American workers -- who for years have largely avoided fruit -picking, office-cleaning and meat-processing shifts -- are increasingly vying for these jobs with immigrants, creating flashpoints . . .
Asia Times: "California faces a frightening new peril, massive budget cuts"
Big cuts, in areas such as public instruction, public safety, corrections, parks and just about everything the state government pays for are now considered inevitable. Even this may not be enough. Many are contending the crisis will not end until the cash-strapped federal government in D.C. provides assistance to the cash-strapped California government . . .
Economist: For California, a "Savage" Round of Budget Cuts Now Awaits
As a result of California’s election, the state now faces a $21.3 billion gap between revenues and spending. Life, which has been no picnic for many in this state since the recession began, is about to get a lot worse. There have already been two rounds of budget cuts since last autumn. A third, savage, round must now follow. Just as Mr Obama is trying to give more people access to medical care, California will be taking it away . . .
The Big Money: Hold on Tight, California the Next Casaulty in Bailout Ward
So where do we stand now? Well, first the federal government is now going to have to guarantee California's debts. Let's face it: California really is too big to fail . . . even as the federal government is desperately ramping up its stimulus spending, Schwarzenegger and the Legislature will be hacking away at anything that pokes its head up in, cutting spending Hoover-style.
UK Independent: Cold, Hunger, Job Losses Ignite Dissent in Russian Town
The Kremlin's worst fears are being played out in a small town outside St Petersburg, as angry residents of crisis-hit Pikalevo marched upon the offices of the mayor and demanded improved living conditions. The final straw came when the town lost heating and hot water as the local power station couldn't afford to keep running. Even kindergartens and hospitals were left without hot water. The town's gas supply was also cut off.
Washington Post: Housing Market Bust Leaves Most Sellers with a Loss
In the past six months, most Washington area sellers have lost money on houses they purchased since prices started climbing in 2000, according to a Washington Post analysis. In the first three months of this year, 62% of local home sellers accepted less than they paid for their homes, in part because aggressively priced foreclosures have dragged down prices . . .
San Francisco Chronicle: Signs of More Trouble Ahead for Housing Market
Warren Buffett and Alan Greenspan say the housing market is near bottom. Peppy real estate agents and gloomy stock-market traders alike eagerly embrace that supposition. Wall Street is so hungry for good news that stocks rallied at the barest hint of upbeat indicators several times this month. But an array of pending issues undercuts the turnaround theorists.
Wall Street Journal: There's No Sign the Housing Market Has Hit a Bottom
For the first quarter, the S&P/Case-Shiller U.S. National Home Price Index posted a 19.1% drop from a year earlier, the biggest quarterly decline for the reading's 21-year history. Separately, the monthly numbers showed 15 of 20 major metropolitan areas posted price declines of more than 10% from a year earlier, with the Sun Belt continuing to be hit hardest [of all].
NY Times: Britain's Top Divorce Lawyer Says Business "Never been better"
For years, just the word that London’s premier divorce lawyer, Raymond Tooth, was calling was enough to spread fear and loathing among a certain class of wealthy British men. And now, under the pressure of the financial crisis, more divorcing wives than ever are turning to Mr. Tooth to make sure they get as much money as they can, even as the fortress of their husbands’ riches crumbles. "I have never been so busy," Mr. Tooth said . .