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Business Forum Wall Street rises on bets that economy is improving at News Forum - Reuters - Stocks rose on Friday as a recent spate of improving economic data beckoned investors back into equity markets ...

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Old 06-19-2009, 10:50 AM   #1
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Default Wall Street rises on bets that economy is improving

Reuters - Stocks rose on Friday as a recent spate of improving economic data beckoned investors back into equity markets for a second day, but analysts warned sentiment remained fragile.




Wall Street rises on bets that economy is improving
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Old 06-19-2009, 08:44 PM   #2
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Angry

Already startin' to get hot...

Could be a long, hot Summer ahead
Friday 19th June, 2009 - Summer begins in 3 days. We can hardly wait. We predict it will be a killer.
Quote:
Several interesting things are likely to happen this summer.

1) Unemployment rates will go up.

2) Rising joblessness will increase rates of defaults, foreclosures, and bankruptcies. Not just at the consumer level - but throughout the system...including banks, states, businesses, as well as households

3) The stock market will take a dive as earnings fall and investors realize that there will be no quick recovery

Oh, and one more thing: U.S. bonds could collapse. But watch out...here's where it gets tricky. Another swoon in the stock market could send investors running for the smelling salts in the bond market. A collapse of bond prices, on the other hand, could send them helter skelter into stocks.

It is impossible to predict what will happen - or when - in the markets. So let us turn our attention to the real economy. Here, we see the picture more clearly: We're in a depression. We write depression with a small 'd.' We're saving the big one for later. Few economists or analysts will tell you we're in a depression. They're looking at "green shoots" and rising trendlines. They'd do better to read a little history. Such as the history of the Great Depression.

More Could be a long, hot Summer ahead
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Jobless rate rises in nearly all states
June 19, 2009: Forty-eight states and the District of Columbia post unemployment rates rise in May, while only one state - Nebraska - registers a decrease.
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Forty-eight states and the District of Columbia recorded unemployment rate increases in May, the government reported Friday. One state registered a rate decrease, and one state had no rate change. Several states and regions posted their highest unemployment rate since the report debuted in 1976. Over the year, jobless rates were higher in all 50 states and the District of Columbia. Michigan once again led the nation with a 14.1% jobless rate, up from 12.9% a month earlier, followed again by Oregon at 12.4%, up from 12% in April. Thirteen states have rates above 10%.

Michigan's 1.2 percentage point increase from April was also the largest jump in the country, followed by Rhode Island's 1 percentage point hike. Both states are suffering from the devastation in the manufacturing sector. Michigan, in particular, was hit by Chrysler's plant shutdown early in the month and a series of GM plant closings. The California, Nevada, North Carolina, Oregon, Rhode Island, South Carolina, Florida and Georgia rates were the highest for those states since the report was first issued.

Vermont recorded no change in its rate, while Nebraska's rate declined by 0.1 percentage point to 4.4%. Nebraska and North Dakota tied for the lowest unemployment rates in the nation. The national unemployment rate rose to a 26-year high of 9.4% in May, up from 8.9% in April. Nonfarm payroll employment decreased in 39 states and increased in 11 states and the District of Columbia in May. The largest over-the-month decrease in jobs occurred in California, followed by Florida, Texas, and Michigan.

The West reported the highest regional jobless rate, 10.1%, followed by the Midwest, 9.8%. The last time any region had a rate of at least 10% was September 1983, when the Midwest posted a rate of 10.1%. The Pacific and South Atlantic regions posted record highs. The Northeast recorded the lowest rate in May, at 8.3%. The spike comes a month after the unemployment rate declined in more states -- 21 -- in April, which bureau officials called an aberration. "Generally the states are going to follow what's happening on the national level," said Brian Hannon, economist in the local area unemployment statistics division.

Jobless rate rises in nearly all states - Jun. 19, 2009
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Old 07-14-2009, 01:16 AM   #3
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Red face

Trouble in the bonds market?...

CIT: Not Too Big to Fail
July 13, 2009, The lender's problems stem from high costs of borrowing, not bad loans. Critics say a prepackaged bankruptcy is the answer to its woes
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For taxpayers who have seen the government prop up one financial service giant after another, the story line was a familiar one: Caught in the throes of a liquidity squeeze, executives at CIT Group (CIT) spent the weekend frantically huddling with Washington policymakers in hopes of securing a bailout that would ensure the $75 billion firm—a key lender to nearly a million small and midsize businesses—could stay afloat.

CIT seemed to be following a script that had won similar firms a bailout. Late last week, CIT retained a law firm to prepare a possible bankruptcy filing, and for good measure, prepared an internal memo—leaked to the media—that its demise would put 760 manufacturing clients at risk and "precipitate a crisis" for as many as 300,000 retailers.

With the economy still fragile and the financial markets weak, it would seem a good bet that the Obama Administration would provide the 101-year-old lender with the financial support it needs to keep the credit flowing. But Washington insiders are betting that this time the Administration won't yield to CIT's demands for a full-blown bailout—and will instead try to push the New York-based lender into an orderly bankruptcy that will enable it to emerge in short order as a stronger, more profitable lender. "I think CIT Group would be a perfect candidate for a prepackaged bankruptcy, and I think the government could help play a role in providing the financing to help it emerge from Chapter 11," says Bert Ely, a veteran financial-services industry consultant in Alexandria, Va. A CIT spokesman did not respond to a request for comment, but on July 12 the company issued a statement confirming that it "remains in active discussions with its principal regulators on a series of measures to improve the companys near-term liquidity position." Among the measures CIT says its discussing is access to federal loan guarantees—which CIT wants but which regulators are reluctant to grant, an Administration official told BusinessWeek.

BACKING AWAY FROM BAILOUTS
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