It shouldn't be a surprise.

2-5-2009 New jobless claims jump more than expected to 626K

WASHINGTON – New jobless claims jumped far more than expected last week in an already dismal labor market, and there's no relief in sight for workers as mass layoffs persist.

The Labor Department reported Thursday that the number of laid-off workers seeking jobless benefits rose last week to a seasonally adjusted 626,000, from the previous week's upwardly revised figure of 591,000. The latest total is far more than analysts' expectations of 583,000.

As a proportion of the work force, the number of people receiving unemployment benefits is at the highest level since August 1982. But that doesn't include an additional 1.7 million people receiving unemployment insurance through an extension of benefits Congress approved last year, which brings the total to about 6.5 million.



2-5-2009 - Cosmetics maker Estee Lauder Cos. saying its fiscal second-quarter profit fell 30 percent and it plans to begin a four-year restructuring plan that will include cutting 2,000.

Botox maker Allergan Inc. and Time Warner Inc.'s cable division announced large job cuts. A day earlier, PNC Financial Services Group, airplane maker Hawker Beechcraft Corp., Liz Claiborne Inc., King Pharmaceuticals Inc. and aerospace company Rockwell Collins Inc. announced layoffs.

who is the "they" that did not expect this

it becomes an *exponential* loss of jobs as we head into a great Drepression
- if the stupid republicans were still in power, it would be inevitable

now with Obama there is hope

someone to give hope and even a fair plan

some with the brains and the will the last failed administration not only lacked
- they caused this recession
that is the culmination of Reagan's "grand vision"

fat ass out of jobs white boys believing their bullshit ruled by corporations and their churches keeping them in line
a dream that is toxic DUST .. good riddance to it!
= may it never return

The very same CEO's that just laid off a half a million people now report to Obama directly once per month.

Interesting

2-6-2009 Obama names advisers to help right the economy

President Barack Obama is bringing in a team of outside advisers to help steer the economy out of a tailspin, while ridiculing Republicans for clinging to a "losing formula" as the nation plunged to the crisis point.

The president was to name the economic team members Friday as the nation dealt with more bad news in the unemployment report for January. Employers slashed payrolls by 598,000, the most since the end of 1974, catapulting the unemployment rate to 7.6 percent. The rate is the highest since September 1992.

In a feisty speech that sounded like a campaign rally address, Obama took a sharper tone than he has in recent weeks and aggressively challenged Republicans, who voted as a block against the plan in the House and are demanding massive changes to the measure in the Senate.

"We are not going to get relief by turning back to the very same policies that for the last eight years doubled the national debt and threw our economy into a tailspin," Obama said — an implicit criticism of the GOP that was in power during that period.

"We can't embrace the losing formula that says only tax cuts will work for every problem we face," he said.

Obama has already tapped Paul Volcker, a former Federal Reserve chairman and a top Obama adviser, as the leader of the Economic Recovery Advisory Board. Members will include former Securities and Exchange Commission Chairman William Donaldson, TIAA-CREF President-CEO Roger Ferguson and Harvard University professor Martin Feldstein, who wrote a Wall Street Journal op-ed piece last year titled "John McCain Has a Tax Plan To Create Jobs."

Obama friend and campaign finance chairwoman Penny Pritzker also is on the board, as is Caterpillar Inc. Chairman-CEO Jim Owens and General Electric Co. CEO Jeffrey R. Immelt. Two labor officials — Anna Burger of Service Employees International Union and Richard Trumka of the AFL-CIO — also were named to the 15-member board designed to offer Obama advice as he seeks a way to weather the crisis and rebuild the economy.

The new council is intended to be an economic sounding board for Obama — an outside-the-beltway group that will report to the president directly. It will meet regularly with Obama, perhaps once a month. Its mission will include responding to requests from Obama — such as delving into a particular subject — without competing with the National Economic Council or day-to-day decision-making at the White House.

California has the very highest unemployment rate in the nation .. close to 8% ?
- goddamn same sh!t they had with Bush and the democratic congress

Arnie has got to go. He is doing the same thing as the governor he replaced

I said this was going to happen.

Now we are shipping the people with the jobs. Modern day version of slavery.

2-7-2009 IBM Offers to Send Laid-Off Staff to Other Countries

TheAmit writes to tell us that many recently laid off IBM employees have been offered jobs if they will only move somewhere it is cheap to employ them. IBM's new Project Match program offers some financial assistance for moving and immigration help for visas.
"However, the move has not gone well with the IBM staff union. Slamming the offer, a union spokesperson said that not only were jobs being shipped overseas, but Big Blue was trying to export the people for peanuts too. He added that at a time of rising unemployment IBM should be looking to keep both the work and the workers in the United States. "

IBM to laid-off staff: Go to India

NEW DELHI: Armonk-based IBM which recently gave pinkslips to above 2000 employees in the US and Canada has an `innovative’ offer for them: Re-locate to cheaper destinations.

In a move to support the pinkslipped employees, the world’s largest technology employer has asked its laid-off employees in US and Canada to join its projects in cheaper-wage destinations like India, China, Brazil and Eastern Europe.

The company specified that only "satisfactory performers" who are "willing to work on local terms and conditions" should pursue the jobs. The wages paid to those moving would be as per the local standards. The company expects many may get lured by the offer as employees seek for "life experiences".

However, the move has not gone well with the IBM staff union. Slamming the offer, a union spokesperson said that not only were jobs being shipped overseas, but Big Blue was trying to export the people for peanuts too.

2-9-2009 15 Companies That Might Not Survive 2009

It's possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:

Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

[See 5 pieces missing from Obama's stimulus plan.]

Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.

Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.

[See why "Wall Street talent" is an oxymoron.]

Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.

Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.

2-9-2009 Nissan to slash 20,000 jobs and sees annual loss

TOKYO – Nissan announced 20,000 job cuts Monday, the deepest reduction among Japan's automakers in battling the global downturn, as it forecast its first annual loss in nine years.

Some 12,000 of the job cuts will be in Japan, including group companies, and the rest will be overseas. The company did not give a further regional breakdown.

Mamoru Katou, analyst with Tokai Tokyo Research, remained pessimistic about Nissan's recovery prospects.

Toyota and Honda, which both have gas-electric hybrids going on sale this year, are better positioned to boost sales when the recovery kicks in, he said. Nissan does not have a comparable hybrid model.

Nissan's job cuts in Japan — more aggressive than its domestic rivals — show its strategy to take production overseas and take advantage of the soaring yen but that would make the Nissan brand less popular in its home market, Katou said.

Nissan sold 731,000 vehicles worldwide in the quarter ending Dec. 31, down 18.6 percent from the same period a year earlier. Nissan's vehicle sales suffered especially in the U.S., where they dropped 29.7 percent in January.

Nissan remains committed to developing electric vehicles and other zero-emission technology, Ghosn said.

"We don't think this crisis is going to last forever," he said.

A little resentment there for the white collar world Apoppin?

The Bush administration did not cause a worldwide recession. The economy cycles, we were due for a lull. The stock market over values, then deflates. Foreign competition has risen due to more efficient means of shipping and communication, and trade agreements. The housing market was artificially inflated by poor lending practices. Our country was attacked for the first time since Pearl Harbor which not only shook consumer confidence, but lead to a costly war. The country and the populace over extended their credit. The oil industry decided to bend the country over a coffee table.

Not the least of all this is the artificial economy created by labor unions in key industries that cannot be sustained long term. The $3K you pay for each American car tacked on for UAW retirement benefits is one legacy of this, 10% unemployment in MI, and a countrywide fear of locating business there is a good example of this.

Etc.

There are many, many reasons we're seeing the current recession, and this is in no way like the Great depression. 7% unemployment is not like the 25% then.

Do not misconstrue what I'm saying- I think we're seeing a fundamental restructuring of our society, and it saddens me. I'd rather see the UAW guys making $20/hour than unemployed. I'd rather pay $10 for a towel so a guy in Alabama can make $15/hour at the textile factory.

Unless people are willing to go protectionist and raise import tariffs, we cannot compete in manufacturing any more.

The housing market needed adjustment. Unless we all discover oil in our yards and become sheiks most people have a hard time spending $300,000 and up on a house, or coming up with the taxes on it.

I don't have the answer, but I know for sure it isn't "Bush's fault".

I think the hysteria about this situation is half of the problem. As I've noted, my family and the people we know are doing better than ever. However, I've notice people aren't spending like they used to (except me because I've never been cautious) and when people stop spending it ripples through the economy.

I'm in favor of protectionism personally, because I'd rather see my neighbors working at real jobs than busing tables. Not everyone can (or should) be a chemical engineer, we need to provide a living wage labor market for manufacturing and service industries as well.

I agree, this is bullshit.

Protectionism isn't the answer, because then countries become reluctant to trade openly with each other and that only serves to worsen the global recession, not alleviate it.