TARP Banks not lending

TARP Banks cleaned out the vault.
TARP Banks claimed no fault.
All the president’s advisers and all the president’s men
Couldn’t get the Banks lending again.

Banks that have received TARP funds can choose whether to make more loans to add income or keep the TARP money to shore up reserves.
A bank can survive low operating earnings for several quarters, but will be closed if insolvent for as short a time as a month.
The banks are choosing loss of profit for the short term, in other words, no money to lend to us or for business loans.  So  they choosing to invest in  leveraging of the TARP funds.
It looks at this point that one use of the TARP money is for mergers and acquisitions. We the people, are being fleeced by the banks that help get us into this mess.
See at the table below.

Banks	Investment		Purpose	Status	Total TARP %
	Billions	Directed at
Bank of America	$15	China Construction Bank	Investment	Committed	80%
PNC Financial	$5.2	National City	Purchase	Planned	66%
US Bancorp	$6.6	Downey Savings & Loan Association and PFF Bank & Trust	Purchase	Done	Not released
Zions Bancorp	$1.4	“Acquisition plans”	Purchase	Possible that it has been done	Not released
BB&T	Not disclosed	“Expansion plans”	Through Purchases	Possible that it has been done	Not released

To read more go to Money Morning

Are you looking for a job? Free call could change your life.

Workplace expert Challenger, Gray & Christmas will hold its annual job-search call-in on Dec. 29th and Dec. 30th 2008.

The Chicago firm is suspending its normal business operations Monday and Tuesday to take calls from anyone needing job-hunting advice. The call-in runs from 10 a.m. to 6 p.m. both days and is free. The telephone number is 312-332-5790. With job cuts continuing to rise, the service is likely to be more crucial than ever.

Write your questions down before you call and have a sample of your resume on hand.
More layoffs are expected to continue through the first half of 2009.Measures to solve the financial crisis will take time to work their way through the economy.

In the meantime, finding a job is taking longer. The median search for those who get jobs will take nearly 4.4 months, up from 3.6 months for earlier in the year.

It is important for job seekers to understand that even amid the slowdown there is the need for organizations to continue hiring to build strength, as well as replace employees who leave or retire. So the jobs are out there.

What can you do to increase your chances?

• Be aggressive. Don’t just post résumés online. Use other methods as well.
To search for jobs NOW click here.

• Mine your social and professional networks. Let everyone know you’re looking. Be specific about what position you are looking for. Keep an updated resume handy to give to your network contacts.  The more people who know you are looking, the greater your chances of landing a job.

• Meet with new people everyday. Whether it’s an official interview or informational chat over coffee with a friend. It is key to meet face-to-face frequently with your network and friends and keep them in the loop.

• Contact the person who makes the hiring decisions, not human resources. HR usually doesn’t make the final decision.  The heads of various departments decide when new people are needed. So, if you want to work in sales, get the name of the head of sales. Use your contacts. Use Linkedin

• Seek interviews when others are not.  Be flexible when interviewing.  Let the interviewer know you’re willing to meet before or after hours and weekends.

• Do not take a holiday. Many job seekers take a vacation from job-hunting during the holidays, figuring that no one’s hiring. Looking for work during the holidays when nobody else is looking. Shows you’re enthusiastic about the job prospect.

Sticky TARP pot

As President Bush is leaving office, he has announced a plan to aid ailing automakers GM and Chrysler Corp.

The plan loans money from the pot that is suppose to be used to rescue the beleaguered financial sector through TARP.
GM and Chrysler have until March 31st to come up with a long-range plan for survival. In order for any plan to work, it depends on the economy and consumers buying cars.
The plan is to include compromise coming from the automakers creditors that are part of the financial sector that in turn is being rescued by us, the American taxpayer through the Troubled Assets Relief Program (TARP).
The goal of TARP is to encourage banks to resume lending again at levels seen before the crisis, both to each other and to consumers and businesses. This would include the automakers.
Why are TARP funds being used to extend loans to the automakers when the banks should be giving credit to consumers to buy autos and to business such as auto dealers that drive the auto industry? What is the TARP funds being used for?
The Associated Press contacted 21 banks that received at least $1 billion in government money and asked just four questions:
1. How much has been spent?
2. What was it spent on?
3. How much is being held in savings?
4. What’s the plan for the rest?
None of the banks provided specific answers. Some banks said they simply didn’t know where the money was going.
“We’re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.
There has been no accounting of how banks spend TARP money. Lawmakers called bank executives to Capitol Hill last month and begged them to lend the money — not to hoard it or spend it on corporate bonuses or to buy other banks. But there is no method in place to make sure this is happening. There are no consequences for banks that don’t comply. Nada!

3 million jobs at stake

The leaders of General Motors Corp, Chrysler LLC and Ford Motor Co are testifying before the U.S. Congress this week.

Without a bailout, GM and Chrysler have advised, they risk running short of cash in the next few months.Analysts warn that a bankruptcy by any of the Detroit Three would touch off a cascade of failures that would cost tens of thousands of jobs and threaten retiree benefits for millions more.
The U.S automakers employ 240,000 in the United States directly. Indirectly they support more than 4.5 million other workers including thousands of dealerships and parts suppliers. Up to 3 million jobs could be at stake in a bankruptcy.
If a bailout passes, governments in Europe and Asia will almost certainly seek assurances that a bailout would not give U.S. car makers an unfair trade advantage in the U.S. market. Unfair advantage?
What do you think of a bailout of the Big Three U.S. automakers? Should we bail them out? Can we afford a potential to lose 3 million jobs?

Citigroup bloodletting

Citigroup had reported that 23,000 people were being axed less then 2 weeks ago. Instead the bloodshed continues as they plan to axe about 35,000 jobs or 10 percent of its global workforce.

Chief Executive Vikram Pandit has called for calm amongst its employees. He bought 750,000 common shares of Citi in an effort to show confidence in Citigroup.

Meanwhile, Citi is reportedly notifying some of its credit-card customers that their interest rates are increasing an average of three percentage points. Citigroup is one of the nation’s largest issuers of credit cards, with 54 million active accounts.

For anyone that is effected by a layoff from Citi look for here for a job. It’s free and is an aggregate of all online job boards. Click here

Gloomy Sun axes off heads

Sun Microsystems Inc. will be axing up to 6,000 jobs. That is 18 percent of its employment force world-wide.

Sales of its high-end computer servers have taken a nose-dive. Sun could be forced to sell itself or some of its assets as the economic crisis deepen problems facing Sun Microsystems. It has been struggling since the dot com bubble burst in the early 2000s.
Sun’s desperate to cut costs and survive as an independent company. Sun’s shares have fallen so sharply they’ve crossed a gloomy future, driving the company’s market value below its cash on hand. It looks like a good time to buy stocks in Sun at the price of $4.12
Investors essentially believe the company is valueless. Sun’s latest misery has ramped up gossip that one of the most storied names in the computer industry could be snapped up on the cheap by bigger rivals such as Hewlett-Packard currently priced at $30.46.
, IBM Corp. currently priced at $80.33.
and Dell Inc.trading at $10.89.

Hemorrhaging jobs across America

A brief recap of job losses taking place today across America.
Analysts say 10,000 hourly workers probably will lose their jobs as part of Daimler Chrysler’s effort to cut costs at its Chrysler Group by more than $2 billion, or $1,000 for every car sold in the United States. Meanwhile, Daimler Chrysler AG said Wednesday its fourth-quarter earnings plunged 40 percent on weaker demand from Chrysler.
Ford said it would cut nearly 2,300 North American salaried jobs by the end of January as a result of its deteriorating domestic auto business.
OfficeMax Inc. is taking the ax to more jobs. The Naperville-based office supply store chain announced Thursday it is cutting about 245 corporate staff and field management positions
Citigroup has lost more than $20 billion in the last year, and has cut more than 20,000 jobs in that same period. Citi’s global staff stands at about 352,000 now, and the firm has a target to trim that to about 290,000 by next year, the report said, citing a person familiar with the company’s plans.
Traffic and toll revenue are down on the Pennsylvania Turnpike, so the agency that runs the highway system is cutting jobs. Officials wouldn’t say how many of the 2,250 employees were expected to lose their jobs. Layoffs could follow.
The warning is out – Mayor Richard M. Daley says a parade of corporate chief executives have told him huge layoffs are planned around the city and will carry into next year.
The number of workers affected by mass layoffs so far this year in Central Florida has risen 207 percent — and experts believe it will worsen before the economy settles.

Yum Brands will cut several hundred jobs at Pizza Hut in Dallas, at its Taco Bell headquarters in Irvine, Calif., and at the company’s headquarters in Louisville, KY.Yum’s Brands also has the KFC, Long John Silver’s and A& W brands under its umbrella. A spokesman for Pizza Hut said staff members at the company’s Dallas headquarters would be notified of the cuts Wednesday. The company didn’t specify how many positions would be impacted.

One Hamilton steel maker is laying off workers and another will shut down over Christmas, sending more than 5,000 workers home, as the global financial crisis continues to batter the steel industry.

Headquarters of QVC in West Chester, a TV retailer began layoffs yesterday in a plan that, over the next 14 months, will cut about 900 jobs, most in West Chester. Nationwide, retailers are predicting a brutal holiday season

No matter what President Obama does for the next year to help stanch the bleeding of our economy, it will take time for its effects to ripple down to the average person.  Hang onto your hats, people. This is going to be a bumpy ride.

Jobless rate may climb to 17% for Galveston

3,800 will lose their full-time jobs dealing a staggering blow to both families and the Galveston economy. Current unemployment rate is at 10 %. The total population in this island community is about 58,000. About 3,800 full-time jobs will be cut at the University of Texas Medical Branch as officials sharply cut back the island’s only hospital after Hurricane Ike caused severe flooding and deep financial losses.

Employees targeted for layoffs will receive pay until mid-January to help them through the holidays. By the middle of next week, medical branch officials will begin unveiling a detailed plan and notifying employees about their job status.

Houston, which is about 50 miles away, has an unemployment rate of just 5.1 %. For the families that will be getting notices of layoffs, Houston might be a long commute but you might be able to also find jobs in some of the cities between. Try this job search for the Galveston and Houston job market. It is an aggregate of all the major job search engines in one location.

File for unemployment and get information on your benefits in Texas here.

Corporate Welfare

While American Express is being investigated by the US Dept. of Justice regarding its surcharge practices, it’s still seeking around $3.5 billion in taxpayer-funded money from the federal government. Note that Ken Chenault, the CEO of American Express makes in total compensation $26,249,876 a year.

The card issuer is not directly hit by the housing crisis is requesting taxpayer cash from the Federal government. Retailers, automakers and many others that have been hit by the slowing economy have not gotten government assistance.

Do you believe that the federal government with our tax dollars should pay to bailout AMEX, a credit card company?

Postal Service going postal

USPS has 670,000 workers. They need to shed about 40,000 employees to avoid the first layoff in USPS history. This is a scary time for the United States Postal Service.

The fear is that only a small portion of the employees will accept outstanding early retirement offers. Then the United States Postal Service will have to go postal and ax employees till they have the 40,000 or 6% of their labor force reduced.

Last month, nearly 3,700 employees had accepted early retirement offers in the first of three rounds of early-retirement offers. The second round of early retirement targets 67,0000 employees with the offer expiring Nov. 21 ^st. The third round of early retirement offers to 17,000 workers expires Jan16th.

Postal workers worry the deepening financial crisis could exacerbate the agency’s problems, which were brought on by rising energy costs, rising paper costs, and a heavier public reliance on the Internet to pay bills and communicate.

Please take the National Poll in the above tab.