posted
A lot of banks up here are allowing borrowers to basically short sale their homes to themselves...
Example...John and Mary owe $100,000.00 on their home. They have a 30 year mortgage at 6.5% interest. Comparable homes in that area are now selling for $70,000.00
John and Mary approach the bank and inform them that they are having trouble with their payments and that homes have decreased so much in value that they are seriously considering walking away.
The banks are refinancing their home for between $70,000.00 and $80,000.00 instead of going through the expense of a short sale or foreclosure.
posted
Information Tech here - software services etc. - IBM - very profitable but wants to cost cost so as to profit more-- May layoff employees to hire contractors and outsource to India as so many tech firms do - India Business Machines as many IT firms - Not only do they employ alot of folks from India in the USA but outsource so their economies grow while american way of life is at risk -these IT firms get tax breaks from USA - I think if any firm is aided by the American govt - it should be illegal to outsource heavily- americans first -
So, the american worker continues to bleed even in strong industries... because contractors and outsourcing is cheaper -
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But-- who has/will bailout this financial mess? will it be India, etc or USA?
Bear Sterns known for outsourcing jobs - who bailed them out? Not only do americans lose jobs to third world countries but pay so companies dont fail?
"Wall Street’s losses are fast becoming India’s gain. After outsourcing much of their back-office work to India, majority of banks are now exporting data-intensive jobs from higher up the food chain to cities that cost less than New York, London and Hong Kong, either at their own offices or to third parties.
Bank executives call this shift “knowledge process outsourcing,” “off-shoring” or “high-value outsourcing.” It is affecting just about everyone, including Goldman Sachs, Morgan Stanley, JPMorgan, Credit Suisse and Citibank — to name a few".
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quote:Half of the people have full-time jobs but don't earn enough to keep up with the rising prices of health care, energy and food.
And it is only going to get MUCH worse with the Federal Government printing funny money out of thin air to bail out all these big banks, Freddie, Fannie, GM (coming soon), the airlines (also coming soon), etc. The hidden tax of inflation is going to make what dollars we do have all but worthless!
It is not the federal government that prints the money. Welcome to America.
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quote:It is not the federal government that prints the money.
Well, actually it IS the federal government that prints money. It is the Bureau of Engraving and Printing which is part of the Department of Treasury.
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I know that is what the one on the north side of town calls itself and they print all sizes of bills. It is definitely part of the Federal Government.
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Close Window Emergency meeting held to discuss Lehman Brothers Friday, September 12, 2008 WASHINGTON - The Federal Reserve Bank of New York held an emergency meeting Friday night with top Washington policymakers and major financial institutions to discuss the future of Lehman Brothers.
The meeting, which was attended by Treasury Secretary Henry Paulson, was held at the offices of New York Federal Reserve Bank president Timothy Geithner. The meeting was confirmed by Fed spokeswoman Michelle Smith.
Smith refused to disclose what financial institutions participated in the meeting or whether the group had reached any conclusion over how to resolve the crisis facing Lehman Brothers.
She said that in addition to Paulson and Geithner, Christopher Cox, the chairman of the Securities and Exchange Commission, was in attendance for the discussions.
The private sector participants were described by Smith only as "senior representatives of major financial institutions."
However, the Wall Street Journal reported on its website that this group included Morgan Stanley chief executive John Mack and Merrill Lynch chief executive John Thain among others.
Earlier in the day a person familiar with Paulson's thinking said that the treasury secretary was opposed to the use of any government money to bail Lehman Brothers out of its financial difficulties.
Lehman Brothers, the nation's No. 4 investment bank, was racing to find a buyer two days after it laid out a restructuring plan it said would raise badly needed money it lost on bad bets in real estate holdings.
The person, who spoke on condition of anonymity because of the sensitivity of negotiations, said Paulson believes the Lehman situation is different in two critical aspects from the government-assisted rescue of Bear Stearns back in March.
This person said that Paulson believed that financial markets have been aware for some time of the difficulties facing Lehman and have had time to prepare and the Fed is now allowing investment banks in need of emergency loans to borrow directly from the Fed just as commercial banks can do.
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Close Window What's worth saving at Lehman Brothers? Saturday, September 13, 2008 NEW YORK - With Lehman Brothers' survival in question, officials of major global banks and the U.S. government were in weekend negotiations aimed at resolving the investment bank's precarious financial situation. Wall Street CEOs were being asked to come up with a way to deal with Lehman's problems and avoid the risks they posed to the financial industry and the broader economy; one of the options being explored was a purchase of Lehman by one of its healthier competitors.
Here are answers to some questions about Lehman Brothers Holdings Inc., and why other banks might be interested in buying some or all of its assets.
Q. Since Lehman's stock price has plunged 95 percent to just $3.65 a share this year, is there anything of the company worth saving?
A. Despite its badly damaged reputation, Lehman still ranks as one of the world's most respected securities firms. The company has leadership positions in stock and bond sales and trading, investment banking, and managing money for wealthy people and institutions. It also is a global franchise, with 28,000 employees in more than 50 offices in over 23 countries.
Q. Which of Lehman's businesses are potential suitors most interested in buying?
A. Its investment banking and trading operations routinely rank among the highest in the industry. For instance, Lehman is ranked eighth in the global mergers and acquisitions so far this year, advising on deals with a total value of $105 billion, according to financial data provider Dealogic.
The investment management business, which includes asset manager Neuberger Berman, is also a prized asset. Analysts believe it could fetch up to $10 billion in a sale.
Q. How much money was Lehman earning before the credit crisis disrupted the bank's earnings?
A. This year, Lehman's results have been marred by $6.9 billion of losses from its battered real estate portfolio and other risky investments. But, the company wowed Wall Street just a year earlier with record earnings and revenue. The firm made $4.2 billion in profit last year through $19.3 billion of revenue.
Revenues for the company's business selling and trading stocks and bonds hit $6 billion in 2007. The investment banking division posted $3.9 billion of revenue, and money management activities reported $3.1 billion of revenue.
Q. Then what caused all the damage?
A. Lehman has more than $60 billion of mortgages and asset-backed securities on its books. Those assets have been severely devalued because of the credit crisis that has hit almost all financial institutions to some degree. That's led to nearly $7 billion of losses and write-downs at Lehman this year.
A week ago, Chief Executive Richard Fuld hoped to save the bank by spinning off about $30 billion in rotting commercial real estate assets into a new publicly traded company. The balance of the real estate assets still left on Lehman's books were to be sold or written-down; a vulture investor would be a likely bidder for Lehman's distressed commercial real estate portfolio, buying the assets for just pennies on the dollar.
However, Wall Street signaled its rejection of the idea, sending Lehman's stock down by 75 percent last week, leading to this weekend's negotiations.
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quote:Originally posted by Upside: What's your profession and how is your industry? Just curious. As some of you know, I'm the owner of a small business, a steel service center. For the most part my business is wholly dependent on the manufacturing industry and related/support industries. August was a record month for us. Some of that can be attributed to unprecedented increases in the price of steel but certainly not all of it. Year to year, we're up about 20% in gross sales and roughly the same in profits.
I'm by no means saying that the economy isn't in trouble but at least so far, my little corner of it isn't. So who's feeling it and who isn't?
what do you mean 20%? you pirate
i just got 400 feet of angle and square tubing here in MS and i paid double what i paid early last year...
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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quote:Originally posted by Upside: What's your profession and how is your industry? Just curious. As some of you know, I'm the owner of a small business, a steel service center. For the most part my business is wholly dependent on the manufacturing industry and related/support industries. August was a record month for us. Some of that can be attributed to unprecedented increases in the price of steel but certainly not all of it. Year to year, we're up about 20% in gross sales and roughly the same in profits.
I'm by no means saying that the economy isn't in trouble but at least so far, my little corner of it isn't. So who's feeling it and who isn't?
what do you mean 20%? you pirate
i just got 400 feet of angle and square tubing here in MS and i paid double what i paid early last year...
Raise your prices, I just did. lol
-------------------- Let's Go METS!!!
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quote:Originally posted by jordanreed: If I raise my prices>..i lose the jobs..
workers from south of the border will do my job for half the price.
I cant compete with that.
That sucks, you must have one of those jobs Americans dont' want to do.
I know a couple of small contractors who have the same problem around here.
The roofing industry is controlled by frontmen who then send a crew of illegals to do the work. Having insurance has become quite an issue but most people just want the cheap price and will take the risk.
Office cleaning and landscaping are the worst. You can't legally operate either.
-------------------- Let's Go METS!!!
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Americans will do all kinds of jobs always have and always will and we are the hardest workers in the world IMHO.
We just don't work for slop pay a living wage and you will get hard working legal Americans to work for you it just is better for profit to hire illeagals for nothing that are scared to ask for a living wage.
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posted
Thomas Jefferson said it best when he said, “I place economy among the first and most important of republican virtues, and debt as the greatest of the dangers to be feared.” Our country is on an unsustainable path. Congress must become more responsible and set a better example for our future generations. Otherwise, eating vegetables and treating people kindly will be the least of our children’s concerns.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.
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quote:Originally posted by CashCowMoo: Thomas Jefferson said it best when he said, “I place economy among the first and most important of republican virtues, and debt as the greatest of the dangers to be feared.” Our country is on an unsustainable path. Congress must become more responsible and set a better example for our future generations. Otherwise, eating vegetables and treating people kindly will be the least of our children’s concerns.
Yes, so long as it is pointed out that the "republican" of which Jefferson spoke (and of which he was the leader) was in no way connected to the republicans of today. Indeed, the republican party of that day still exists and has been renamed to become today's democratic party.
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