tag:blogger.com,1999:blog-46810430467956714882024-03-13T09:33:55.218-07:00Hobby EconomistA Blog about US and Global EconomyRazib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.comBlogger39125tag:blogger.com,1999:blog-4681043046795671488.post-6174229160852713932009-08-23T16:53:00.000-07:002009-08-23T16:54:49.002-07:00Why Yahoo is Making Less Profit than Google?<p class="MsoNormal"><span style="font-family:Verdana;">It seems that in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region>, Yahoo is viewed by almost same number of visitors like Google but still, Google makes much more profit than Yahoo. According to <a href="http://money.cnn.com/2009/08/23/technology/yahoo/">David Goldman of CNN Money</a>:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">Yahoo reaches 80% of Internet users -- same as Google -- but its focus on content over search has yielded a lower profit than its rival. Is that misguided or bold?<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">I don’t think that the matter is that simple. It is true that Google is behind when it comes to content but what we should not forget is that with Adsense and Blogger, Google has helped to create bloggers like me to create content. Yahoo is following old style business method. I live in a third world country and still, I can earn my livelihood with Adsense and Blogger. The best part is that it is absolute free. On the other hand, it is impossible to do such thing with Yahoo. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">So, what is happening is that Yahoo is providing content but not helping people like me. On the other hand, Google is helping thousands of people like me to produce content in Internet and then making money through our efforts. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">I have no complain against Google and instead, I am perhaps grateful to them that I can earn some money with their support. No Wonder, Google is making more profit than Yahoo. <o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com12tag:blogger.com,1999:blog-4681043046795671488.post-30676067260644719822009-08-22T09:30:00.000-07:002009-08-22T09:37:29.848-07:00Swine Flu Crisis: More Panic Less Attack<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CADMINI%7E1%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style="font-family: Verdana;">Now, in many countries of <st1:place st="on">Asia</st1:place>, millions of people are afraid of the possible outbreak of Swine Flu. Well, the main problem is that people do not have adequate knowledge about this disease. So, they think it is very bad and it can kill many. However, I like to state here that until now, very few people have died from this disease. In fact, many more people die from fever and mosquito or water born diseases each year. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family: Verdana;">The media can play a vital role in dispersing the fear. If people become afraid then they lose mental strength. There is some kind of medicine for this disease and you can find more information here:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family: Verdana;"><a href="http://health.usnews.com/articles/health/healthday/2009/08/21/swine-flu-vaccine-seems-safe-in-early-trials.html">Swine Flu Vaccine Seems Safe in Early Trials</a><o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family: Verdana;">So, do not panic please. <o:p></o:p></span></p> Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com1tag:blogger.com,1999:blog-4681043046795671488.post-52638624255232507672009-07-03T13:24:00.000-07:002009-07-03T13:26:38.157-07:00British Airways: What more can be done to save money?<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CMehdi%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >British Airway PLC grounded aircrafts, cut seat numbers and postponed the delivery of 12 new A380 Airbus to save money. In June 2009, the airline carried 2.93 million passengers which was 5% lower compared to the figure of June 2008. The airline is going to cut 3,500 jobs and freeze payments. Already, the BA administrations went into talks with the union but nothing happened. Further discussions are going to be held in the coming weeks. <a href="http://www.forbes.com/feeds/ap/2009/07/03/ap6617173.html">Forbes.com</a> reports:<o:p>
<br /></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p><blockquote> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >BA said that in response to the "challenging economic conditions" it was cutting its summer capacity by 3.5 percent, rather than the originally forecast 2.5 percent. Capacity for October through March 2010 is expected to be down by 5 percent.<o:p>
<br /></o:p></span></p></blockquote><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >British Airways’ planes were 79.6% filled up in June 2009 which was 81.4% in 2008. In such “challenging economic conditions,” the airline is taking all necessary steps to cut costs. The airline is also grounding three Boeing 757 aircraft in the middle of next year and three Boeing 747-400s this coming winter. British Airways also postponed the delivery of its first six A380 airbus that were supposed to come in 2012. The rest six planes will arrive within 2016.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.forbes.com/feeds/ap/2009/07/03/ap6617173.html">Forbes.com</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com6tag:blogger.com,1999:blog-4681043046795671488.post-50696018068714435272009-07-03T12:28:00.000-07:002009-07-03T12:30:46.845-07:00Teck Resources is selling its stake to China Investment Corporation<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CMehdi%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="City"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >In order to reduce its debts, <st1:city st="on"><st1:place st="on">Vancouver</st1:place></st1:city> based Canadian mining company, Teck Resrouces Ltd., is selling its 17% stake to China Investment Corp. (CIC) for $1.5 billion. <span style=""> </span>Out of this money about $10 million will be used to clear bank debt. Currently, the sale is waiting for regulatory approval and it will be closed on July 14, 2009.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >CIC is buying Teck Resources 101.3 million class B voting shares. CIC would also invest in the company’s future projects. In June 2009, Teck Resources sold its <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >one-third interest in Waneta Dam to BC Hydro for $710 million. The company also collected funds worth $700 million by selling its top assets. <span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >In July 2008, Teck Resources acquired Fording Canadian Coal Trust for $9.8 billion but after the deal was done product prices went down and hurt the company’s profitability. In early 2009, Teck Resources was exempted a portion of its debt. The company is also looking for a partner to invest in its coal business.</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.google.com/hostednews/ap/article/ALeqM5gd_U2lQLbGsnh5NYRXG7WLQEV6pQD9974P903">AP</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-16464738321470867972009-06-23T08:45:00.000-07:002009-06-23T08:54:21.746-07:00Nature and Urban Life: Absolute Write Blog Chain June 2009<p class="MsoNormal"><span style="font-family:Verdana;">This is the time for an Absolute Write Blog Chain. It is a blog chain without any theme. So, you can expect some dramatic change in tone and topic as the blog chain progresses. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">I am starting June blog chain with this entry. The last few days were full of stress for me. It is very hot in my country. Monsoon Rain was supposed to come last week and it has not come yet. 2 weeks ago, I had to take my wife to a hospital because she became sick from summer heat. Today, she again felt weak and I became afraid. Fortunately, I did not need to take her to the hospital again. Even I am not well these days. I live in a city with more than 10 million people and like any urban dweller; I have lost touch with nature. Air conditioner is out of my ability and electric fan is the best thing that I can afford. This problem has made me think about nature. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><span style=""> </span>I am now 34 years old and when I was 10-11 years old, there were just half the amount of people in my city. There were many more trees and nature summer was more moderate. I know that many people in Europe and <st1:country-region st="on"><st1:place st="on">America</st1:place></st1:country-region> like to believe that there is nothing called global warming. Well, I can tell you from my experience that it is real. Climate has really changed a lot in the last 2 decades. It is true that the people in my own society and country have a lot of contribution in global warming but at the same time, too much consumption of resources in the rich Western countries is the main villain behind the changing nature of global climate. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">In <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region>, I think that there are more than 700 cars against 1,000 persons. In my own country, it is not even 5 cars against 1000 persons. I have no complain against US consumers. They work hard and they enjoy life with their hard earned money. Not only that, we the people living in the third world countries, have our own fair share of bad activities to harm nature. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">All I know is that we do not live in an isolated world any more. I wish that our political leaders and decision makers could come to this realization. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">Next in blog chain is Fokker Aeroplanbau in his blog: <a href="http://rightfarright.blogspot.com/">I'm Always Right, Far Right</a><o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">I wonder what he will say about it. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">The participating blogs in June 2009 blog chain are:<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><a href="http://hobbyeconomist.blogspot.com/">Hobby Economist</a><br /><a href="http://rightfarright.blogspot.com/" target="_blank"><span style=""> </span>I'm Always Right, Far Right<br /></a><a href="http://farseeingfairytales.blogspot.com/" target="_blank"></a><a href="http://farseeingfairytales.blogspot.com/">Far Seeing Fairy Tales</a><br /><a href="http://www.benjaminsolah.com/blog">Benjamin Solah, Marxist Horror Writer</a><br /><a href="http://writerchicktalks.com/" target="_blank"></a><a href="http://writerchicktalks.com/">Writer Chick Talks</a><br /><a href="http://www.alleslinks.com/" target="_blank"></a><a href="http://www.alleslinks.com/">Delirious</a><br /><a href="http://beyondtourism.wordpress.com/" target="_blank"></a><a href="http://beyondtourism.wordpress.com/">Beyond Tourism: Florida's Yesteryear</a><o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><a href="http://four-lettered-words.blogspot.com/">Four-Lettered Words</a><br /><a href="http://www.randomwriterlythoughts.blogspot.com/">Random Writerly Thoughts</a><br /><a href="http://expressiveworld.com/">Expressive World</a><br /><a href="http://tikanewman.blogspot.com/">Tika Newman</a><br /><a href="http://www.billwardwriter.com/">BillWardWriter.com</a><br /><a href="http://madeofcarbon.blogspot.com/">Made of Carbon</a><o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com9tag:blogger.com,1999:blog-4681043046795671488.post-82161325553594890472009-06-21T12:30:00.000-07:002009-06-21T12:34:52.301-07:00President Barack Obama’s financial reform: Will it change people?<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:85%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Wingdings; panose-1:5 0 0 0 0 0 0 0 0 0; mso-font-charset:2; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:0 268435456 0 0 -2147483648 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:2054233372; mso-list-type:hybrid; mso-list-template-ids:101767654 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;} @list l0:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:.5in; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol;} ol {margin-bottom:0in;} ul {margin-bottom:0in;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >On </span><span style="font-size:85%;"><st1:date year="2009" day="20" month="6"><span style=";font-family:Verdana;" >June 20, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:85%;" >, the U.S. President Barack Obama in his weekly radio and Internet address, said that he is going to work on restructuring the country’s financial system. In his speech President Obama said that he would make sure that government gain more oversight on the business activities of the country’s top financial institutions. President Obama also proposed to form “Consumer Financial Protection Agency” that will make sure that banks and financial institutions clear the fine points to consumers before they take any kind of loan.</span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p>
<br /></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:85%;"><b><span style=";font-family:Verdana;" >The Financial Regulatory Reform:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >On </span><span style="font-size:85%;"><st1:date year="2009" day="17" month="6"><span style=";font-family:Verdana;" >June 17, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:85%;" >, President Barack Obama unveiled his regulatory reform plan. The proposals are now submitted to the congress. The reform if implemented would reverse all the policies set by President Ronald Reagan in the 1980s. Here are some of the major points: <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:85%;" >More authority to the Federal Reserve over major financial institutions. <span style=""> </span><o:p></o:p></span></li><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:85%;" >More power to the Federal Deposit Insurance Corporation. <o:p></o:p></span></li><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:85%;" >Tap into the “shadow system” of the financial institutions to stop their deceptive practices and protect consumers.<span style=""> </span><span style=""> </span><o:p></o:p></span></li><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:85%;" >Creation of a watchdog agency called “Consumer Financial Protection Agency” to oversee the interest of the consumers. The agency would make sure that <o:p></o:p></span></li><li class="MsoNormal" style=""><span style=";font-family:Verdana;font-size:85%;" >banks and credit card companies become more clear when they sell their products to their consumers.<span style=""> </span><o:p></o:p></span></li></ul> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:85%;"><b><span style=";font-family:Verdana;" >Opposing the reform plan:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >Banking officials are saying that the reform plan will increase the rich of the government and put them in the middle of the business which is not a very good thing.</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:85%;" ><span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:85%;"><b><span style=";font-family:Verdana;" >In support of the reform plan: <o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >There are many people who are also supporting the reform plan. They supporters are saying that the new reform plan would give a boost to the banking and financial sector of the country. In the light of the recent economic crisis, people have lost their faith on banks and financial institutions. The bank officials place their interest first rather than consumers interest. In order to get more money, they even gave loans to people with poor credit record or people who does not have the capability to clear their loans and it caused a serious crisis.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:85%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >At this very moment what is most necessary is confidence which the consumers do not have any confidence on rating agencies. A recent survey revealed that only 9 out every 100 people in the U.S and the U.K trust their financial institutions. What President Barack Obama is trying to restore the faith of the investors and consumers through his financial reformation.</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:85%;" > <span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:85%;"><b><span style=";font-family:Verdana;" >American people should accept the reality:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" >My view is that it is time for the </span><span style="font-size:85%;"><st1:country-region><st1:place><span style=";font-family:Verdana;" >U.S.</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:85%;" > people also become conscious about their financial condition and understand their limitations. There are many people who earn small amount of money and have no job security. Yet, they took loans from bank to buy house and cars and other expensive items. This is not a very good practice. I understand that it is a dream to have your own house or car but for some people it is too much to handle and may not come true but life does not end if you do not own a house or your own car.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:85%;" ><span style=""> </span><span style=""> </span><span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:85%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><a href="http://www.nytimes.com/2009/06/21/us/politics/21radio.html?ref=global-home">The New York Times</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/06/20/AR2009062001836.html">The Washington Post</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><a href="http://www.google.com/hostednews/ap/article/ALeqM5gqhwbkKStayRnzDxiR3PklFxhqkwD98UOBAO0">Associated Press</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><a href="http://www.latimes.com/business/la-fi-lazarus21-2009jun21,0,7630872.column">Los Angeles Times</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><a href="http://www.huffingtonpost.com/howard-glaser/is-the-financial-and-mort_b_217056.html">The Huffington Post</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:85%;" ><o:p> </o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-59902141907537815162009-06-14T12:29:00.000-07:002009-06-14T12:32:02.385-07:00Six Flags Inc.: Chapter 11 bankruptcy and restructuring<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CMehdi%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On June 13, 2009, Six Flags Inc., with unianimous support from its lenders, filed for Chapter 11 bankruptcy protection. <span style=""> </span>The <st1:state st="on"><st1:place st="on">New York-</st1:place></st1:state> based company is the largest theme park company in the world. It operates theme parks in the <st1:country-region st="on">U.S.</st1:country-region>, <st1:country-region st="on">Canada</st1:country-region> and <st1:country-region st="on"><st1:place st="on">Mexico</st1:place></st1:country-region>. The company was already under $2.4 billion dollar when its current management team took over the company. Mark Shapiro, chief executive of Six Flags Inc. said that the company would not be able to sustain such huge debt load in the time of economic recession. <a href="http://www.reuters.com/article/newsOne/idUSTRE55C1FO20090614">Reuters</a> reports:<o:p>
<br /></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><blockquote>The plan will result in a deleveraging of the company's balance sheet by about $1.8 billion, as well as the elimination of more than $300 million in preferred stock obligations.</blockquote> <span style=""></span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >More than three years ago, Daniel M. Snyder, owner of the Washington Redskins American football team, took over Six Flags Inc. Though a successful businessman himself, his management team could not make the company profitable. In the first quarter of the current fiscal year, the company reported a lost worth $146.3 million. After getting bankruptcy court approval, the company will go for restructuring.<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com3tag:blogger.com,1999:blog-4681043046795671488.post-64065197851636689622009-06-12T05:58:00.000-07:002009-06-12T06:21:28.842-07:00Bleak future for American Airlines Industry<span style="font-size: 10pt; font-family: Verdana;">Economic recession has hit the airlines industry of the U.S. pretty badly. Due to poor passenger turnover, air lines are now shedding off jobs to survive the recession. In the latest jobloss case, American Airlines, one of the top Airlines of the U.S. will eliminate 1600 jobs. On the other hand, Delta Airlines Inc., another major American Airlines is going to reduce its employees’ salary and will reassess its “staffing needs.” The company ordered its 400 flight attendants to take leaves or they would be laid off. <a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aFDkaopjQ_4I">Bloomberg</a> reports:<o:p><br /></o:p></span> <p class="MsoNormal"><span style="font-size: 10pt; font-family: Verdana;"><blockquote>Delta, the world’s largest airline, will slash available seats as much as 4 percentage points more than planned, for a cutback of 10 percent from 2008 levels, Chief Executive Officer Richard Anderson told employees. American, the second-biggest carrier, said it would shrink flying by 1 percentage point more than projected, to 7.5 percent.<br /></blockquote><o:p></o:p></span></p> <p class="MsoNormal"><span style="font-size: 10pt; font-family: Verdana;">Due to recession, number of people traveling by plane dropped significantly. Moreover, many business executives also stopped traveling as companies are trying to reduce their expenses. In order to attract customers, airlines are reducing air fares unless there is a major change in the country’s economic outlook there would be no major change in the business.</span></p>Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com3tag:blogger.com,1999:blog-4681043046795671488.post-67735926875700823872009-06-12T04:58:00.000-07:002009-06-12T05:03:51.637-07:00BlackRock Inc. will take over Barclays Global Investment Unit for $13.5 billion<p><span style=";font-family:Verdana;font-size:100%;" >Famous American Investment management firm, BlackRock Inc., will buy the investment unit of Barclays PLC, another major European financial firm, for $13.5 billion. This merger would become one of the largest investment firms in the world with assets worth $2.7 trillion. </span> <span style="font-size:100%;"><o:p></o:p></span></p> <p><span style=";font-family:Verdana;font-size:100%;" >The newly formed company named BlackRock Global Investors (BRGI), will have a market value of more than $34 billion. In a statement issued by BlackRock Inc., the company said that it would pay $6.6 billion in cash and rest will be paid in stock for Barclays Global Investors. In the newly formed company, Barclays will have a 19.9% stake. The combined company will raise funds worth $2.8 billion through equity sales and borrow $2 billion from Barclays and other banks. Laurence Fink, Chairman and CEO, BlackRock Inc. said that this would widen the range of products offered by the companies. </span> <span style="font-size:100%;"><o:p></o:p></span></p> <p><span style=";font-family:Verdana;font-size:100%;" >John Varley, CEO, Barclays and Robert Diamond, President, Barclays’ will join the board of directors of BRGI. Blake Grossman, CEO, Barclays Investment Unit, will be vice chairman of BRGI. </span> <span style="font-size:100%;"><o:p></o:p></span></p> <p><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:</span></b><o:p></o:p></span></p> <p><span style="font-size:100%;"><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aievqonykzkY" target="_blank"><span style=";font-family:Verdana;" >Bloomberg</span></a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p>Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com2tag:blogger.com,1999:blog-4681043046795671488.post-11940518602998467062009-06-11T10:47:00.000-07:002009-06-11T10:54:22.103-07:00The U.S. share market overview June 11 2009.<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="time"></o:smarttagtype><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Wingdings; panose-1:5 0 0 0 0 0 0 0 0 0; mso-font-charset:2; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:0 268435456 0 0 -2147483648 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:1189173021; mso-list-type:hybrid; mso-list-template-ids:-2074810164 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;} @list l0:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:.5in; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol;} ol {margin-bottom:0in;} ul {margin-bottom:0in;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style="font-family:Verdana;">On </span><st1:date year="2009" day="11" month="6"><span style="font-family:Verdana;">June 11, 2009</span></st1:date><span style="font-family:Verdana;">, the </span><st1:country-region><st1:place><span style="font-family:Verdana;">U.S.</span></st1:place></st1:country-region><span style="font-family:Verdana;"> sharemarket observed an upward trend following a decrease in the number of jobless claims and rise in retail sales in May. According to the report of The U.S. Department of Labor, jobless claims fell by 24,000 to 601,000 last week. Though the number is quite high, it is lower compared to the January figure. On the contrary, retail sales rose 0.5% in May 2009 reporting the third monthly gain this year. Here are some of the highlights of the stock market: <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Shares of Bank of America Corporation advanced 6.2% to $12.72. <o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Shares of Fifth Third Bancorp, the biggest bank of the state of </span><st1:state><st1:place><span style="font-family:Verdana;">Ohio</span></st1:place></st1:state><span style="font-family:Verdana;">, rose 4.9% to $7.70. Today, Goldman Sachs Group Inc. upgraded the bank’s share to “buy” from “neutral.”<o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Share prices of Regions Financial Corporation increased 6.3% to $4.25 marking the biggest gain in S&P 500. Share of the banks was also upgraded by Goldman Sachs Group. <span style=""> </span><o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Shares of Chevron Corporation advanced 0.7% to $74.33. <o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Share prices of Microsoft Corporation gained 1.1% to $22.80. <o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">The Standard & Poor’s 500 Index increased 0.9% to 947.66 at </span><st1:time minute="39" hour="11"><span style="font-family:Verdana;">11:39</span></st1:time><span style="font-family:Verdana;"> at the New York Stock Exchange. In March, the index hit a “12-year low” and rose 40% since then.<span style=""> </span><o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Dow Jones advanced by 67.19 points to 8,806.21.<o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Price of crude oil rose to $72.64 per barrel in </span><st1:state><st1:place><span style="font-family:Verdana;">New York</span></st1:place></st1:state><span style="font-family:Verdana;">, the highest in the last seven months. This also boosted the share prices of the energy companies. International Energy Agency (IEA), forecasted a rise in the demand of crude oil around the world for the first time since August 2008. In May, </span><st1:country-region><st1:place><span style="font-family:Verdana;">China</span></st1:place></st1:country-region><span style="font-family:Verdana;"> bought 3.9 million barrels a day.<span style=""> </span><span style=""> </span><span style=""> </span><o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style=""><span style="font-family:Verdana;">Yields on ten year treasury bonds went down 3.93%. <span style=""> </span><o:p></o:p></span></li></ul> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <p class="MsoNormal"><b><span style="font-family:Verdana;">Related article:<o:p></o:p></span></b></p> <p class="MsoNormal"><span style="font-family:Verdana;"><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aUcgdcx16Ugk">Bloomberg</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-68427677378595376102009-06-07T13:48:00.000-07:002009-06-07T13:52:46.245-07:00Arcandor AG and Metro AG of Germany are going for merger<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On </span><span style="font-size:100%;"><st1:date month="6" day="7" year="2009"><span style="font-family:Verdana;">June 7, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >, Metro AG, a renowned retail chain in </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">Germany</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" >, reported to have started discussion with Arcandor AG, a reputed retail and tourism company. The two companies are going to merge their departmental stores business to survive the economic recession.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Arcandor AG and Metro AG are owners of the two largest department store chains in </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">Germany</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" >. Metro AG owns the Kaufhof chain while Arcandor AG is the owner of Karstadt department stores, most of which are situated in buildings of a real estate company, owned by Goldman Sachs. Chairmen of the three companies- Karl Gerhard Eick of Arcandor AG, Eckhard Cordes of Metro AG and Alexander Dibelius of Goldman Sachs in </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">Germany</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > have agreed to start necessary negotiations in the coming week.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><span style=""> </span><span style=""> </span><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Arcandor, which is on the verge or bankruptcy, asked for $610 million “in government credit guarantees.” However, many politicians are against this guarantee as they believe that the company’s failure is actually “management failure.” <a href="http://www.businessweek.com/ap/financialnews/D98LUMN80.htm">Business Week</a> reports:<o:p>
<br /></o:p></span></p> <blockquote><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Chancellor Angela Merkel has said that Arcandor must seek a private solution to chronic problems that include too broad a portfolio and falling consumer demand.<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >"We naturally want to make every possible effort to secure an economic solution," Merkel said Sunday in </span><span style="font-size:100%;"><st1:state><st1:place><span style="font-family:Verdana;">Berlin</span></st1:place></st1:state></span><span style=";font-family:Verdana;font-size:100%;" >.<o:p>
<br /></o:p></span></p></blockquote> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On the other hand, Gerd Koslowski, spokesman, Arcandor said that his company could fulfill the government’s credit requirements after the alliance between the companies department stores business is formed.<o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-40978687461356718412009-06-07T12:36:00.000-07:002009-06-07T12:42:17.540-07:00Chrysler LLC sales: Whose side Richard Mourdock is on?<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="time"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Despite being refused by appeal courts two times, Indiana Pension Funds, headed by Richard Mourdock, is pressing on for stay in the Chrysler LLC sales. On </span><span style="font-size:100%;"><st1:date month="6" day="5" year="2009"><span style="font-family:Verdana;">June 5, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >, </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">US</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > appeals court gave Chrysler the green signal to continue its sales to Italian carmaker Fiat S.p.A. The newly formed company known as the Chrysler Group will be jointly owned by the </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">U.S.</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > government, an autoworker's union retiree fund and the Italian Automaker Fiat. The deal will be finalized within </span><span style="font-size:100%;"><st1:date month="6" day="8" year="2009"><span style="font-family:Verdana;">June 8, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >, if the Supreme Court does not intervene.</span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On </span><span style="font-size:100%;"><st1:date month="6" day="6" year="2009"><span style="font-family:Verdana;">June 6, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >, the group of Indian pension funds filed another emergency appeal with the Supreme Court Justice Ruth Bader Ginsburg. <a href="http://money.cnn.com/2009/06/05/news/companies/chrysler_appeal/?postversion=2009060710">CNN Money.com</a> reports:<o:p>
<br /></o:p></span></p> <blockquote><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >She could act on her own or refer the case to the remainder of the court. A stay from the full court would require a majority of the court's nine members.<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >"Absent a stay, the Court will be deprived of the opportunity to decide critical, nationally significant legal issues relating to management of the economy by the United States Government," the funds said in their stay application.<o:p>
<br /></o:p></span></p></blockquote> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On May 31, 2009, Indiana State Treasurer Richard Mourdock, on behalf of three pension funds (Indian teachers, state police, and “Major Moves” pension fund), appealed against the ruling of the Federal Bankruptcy court that allowed Chrysler LLC to sell the companies top assets. The three pension funds bought shares worth $42 million which is less than 1% of the total debt of Chrysler LLC. Mourdock’s side of argument is that, as secured creditors, the funds deserves better against unsecured creditors like the Fiat. He said that for the first time in the history of </span><span style="font-size:100%;"><st1:country-region><st1:place><span style="font-family:Verdana;">USA</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > unsecured creditors are getting more value in bankruptcy than secured creditors. The funds paid $ 0.43 per share and getting $0.29 cents which results into a $6 million loss for the state of </span><span style="font-size:100%;"><st1:state><st1:place><span style="font-family:Verdana;">Indiana</span></st1:place></st1:state></span><span style=";font-family:Verdana;font-size:100%;" > and this is not fair. If the sales of Chrysler LLC is not finished by </span><span style="font-size:100%;"><st1:time hour="16" minute="0"><span style="font-family:Verdana;">4 p.m.</span></st1:time></span><span style=";font-family:Verdana;font-size:100%;" > within </span><span style="font-size:100%;"><st1:date month="6" day="8" year="2009"><span style="font-family:Verdana;">June 8, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" > then the deal will be expired.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >From my point of view, this whole legal fuss forwarded by Richard Mourdock seems to me like an effort to upgrade his public image so that he could run for governor. At least, the creditors are getting something out of this restructuring. If the sales is not finished, they would not get anything. Mr. Mourdock must remember that “Something is better than Nothing.” <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><span style=""> </span><span style=""> </span><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-15359834156321062662009-06-06T11:32:00.000-07:002009-06-06T11:34:37.428-07:00Mattel Corp. agrees to pay $2.3 million for selling toys containing excessive lead<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Mattel Corporation, the famous American toy maker, will pay civil penalties worth $2.3 million for violating the “federal lead paint ban.” According to Consumer Product Safety Commission (CPSC) Mattel Corp. and its Fisher-Price pre-school division imported and sold children toys that contains harmful lead beyond the permitted level and violated 30 year old federal law. Both companies agreed to the penalty but they said that they did not violate any laws. <a href="http://money.cnn.com/2009/06/05/news/companies/cpsc/">CNN Money.com</a> reports:<o:p>
<br /></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ></span></p><blockquote><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >The Consumer Product Safety Commission said the fine against the No. 1 toymaker and its Fisher-Price pre-school division was the highest ever for the agency's regulated product violations and the third largest in its history.<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >"This penalty should serve notice to toy makers that CPSC is committed to the safety of children, to reducing their exposure to lead, and to the implementation of the Consumer Product Safety Improvement Act," CPSC acting chairman Thomas Moore, said in a statement.<o:p>
<br /></o:p></span></p></blockquote> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >In 1978, a federal law was passed which does not allow more than 0.06% lead “by weight in paints or surface coatings.” Between September 2006 and August 2007, Mattel Toys imported upto 900,000 toys including the famous “Sarge” toy car and large number of Barbies that does not comply with the Consumer Product Safety Act. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-81012255742095392222009-06-04T12:34:00.000-07:002009-06-04T12:42:32.798-07:00Target Corporation strikes at the heart of Wal-Mart Inc.<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CMehdi%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="State"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >In March 2009, Target Corporation, another top American retail chain, and one of the major rivals of Wal-Mart, opened their new retail store in <st1:state st="on"><st1:place st="on">Arkansas</st1:place></st1:state> which came as a major surprise to many people. <st1:state st="on"><st1:place st="on">Arkansas</st1:place></st1:state> is considered to be the “heart land” of Wal-Mart Inc., the retail giant. The new Target retail store is seven minutes away from the first Wal-Mart Store built in 1962 and twenty minutes drive (without traffic) from the headquarters of Wal-Mart Inc. in Bentonville. The first question that came to many people’s mind was “Will Target be able to attract people in its store?” Well, after three months of operation, the answer is a big YES. The store is not only attracting ordinary shoppers but also Wal-Mart executives as well.</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >The new Target stroing is going strong on grocery sales compared to Wal-Mart which offers fresh foods. The grocery section of Target stretches over an area of 136,666 square feet and sales only “frozen, canned and packaged foods.” Still, shoppers like the store because it comes as a suitable alternative to them. Even Wal-Mart executives frequently visit the store.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >At the end of the day, Target store manager Chuck Simmons admits of a mental pressure as they are operating on Wal-Mart’s turf and comparatively Wal-Mart store gets more shopper than their’s. The company posted a slump of 6.1% in its May sales and it predicts a “flat sale upto 3%” in its second quarter. At the end of the day, it is all a healthy competition and that is what we would like to see more.</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style="font-family:Verdana;">Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://money.cnn.com/2009/06/04/news/companies/target_in_walmart_country.fortune/?postversion=2009060411">CNN Money.com</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-90562031442911305322009-06-04T11:55:00.000-07:002009-06-04T12:04:27.407-07:00Stock holders propose. Wal-Mart Stores Inc. disposes<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CMehdi%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PlaceName"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="PlaceType"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:punctuationkerning/> <w:validateagainstschemas/> <w:saveifxmlinvalid>false</w:SaveIfXMLInvalid> <w:ignoremixedcontent>false</w:IgnoreMixedContent> <w:alwaysshowplaceholdertext>false</w:AlwaysShowPlaceholderText> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:wraptextwithpunct/> <w:useasianbreakrules/> <w:dontgrowautofit/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:latentstyles deflockedstate="false" latentstylecount="156"> </w:LatentStyles> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On <st1:date month="6" day="4" year="2009" st="on">June 4, 2009</st1:date>, famous American retail chain, Wal-Mart Stores Inc., announced to create more than 22,000 in the current fiscal year <span style=""> </span>through opening 1,300 new stores all over the <st1:place st="on"><st1:country-region st="on">U.S.</st1:country-region></st1:place> The job positions include: Positions will include store management, pharmacists, human resources managers, customer service associates, cashiers and sales associates. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /></span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Despite economic recession, Wal-Mart stores did pretty well. In May 2009, the company announced an earning of $3 billion in the first quarter of the current fiscal year. Shares of the retail chain gained a dividend of 77 cents per share which is a penny more compared to its per-share-dividend of 2008. The overall revenue of the company decreased to $93.5 billion from 94.9 billion. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /></span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On <st1:date year="2009" day="5" month="6" st="on">June 5 2009</st1:date>, Wal-Mart is going to hold its annual stockholders meeting in Bud Walton Arena at the <st1:place st="on"><st1:placetype st="on">University</st1:placetype> of <st1:placename st="on">Arkansas</st1:placename></st1:place>. In the meeting, Wal-Mart administration is going to discuss six proposals submitted by its share holders. The proposals focus on providing equal opportunity to both men and women, performance based payment system, right to an advisory vote on executive compensation, preparing a semi-annual report on the company’s political contribution, ability to call special meetings and incentive payment in the form of stock options. Interestingly, Wal-Mart administration opposed the proposals. In the meeting, the share holders are also going to elect their new directors.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style="font-family:Verdana;">Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.bizjournals.com/phoenix/stories/2009/06/01/daily61.html">Phoenix Business Journal</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com1tag:blogger.com,1999:blog-4681043046795671488.post-67908288033973086832009-06-03T14:17:00.000-07:002009-06-03T14:25:30.152-07:00GM and Chrysler LLC shades off dealers for the sake of survival<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >On </span><span style="font-size:100%;"><st1:date month="6" day="3" year="2009"><span style=";font-family:Verdana;" >June 3, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >, at a Senate Commerce Committee hearing executives of the GM and Chrysler LLC said that the elimination of their dealers is a critical step for their survival. The two major American automakers went bankrupt and declared to eliminate more than 2,300 dealerships. This means an estimated 100,000 people will lose their jobs which forced the government to look into the matter.</span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >In his testimony, Frederick A. Henderson, interim CEO of GM, said that his company had no choice but to sacrifice for the sake of a “stronger and more viable GM.” In his testimony, Jim Press, Chrysler President, said that in order for a successful merger with Fiat SpA, the company required a “quick turnaround of its dealer network.”</span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >However, Senator John Rockfeller, chairman of the panel, was not satisfied with their explanation. He said that the companies, who received government bailout money and not helping their local dealers and customers, were doing wrong.<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /></span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >This move by the two auto companies shows failure of the Obama administration to protect US jobs. However, the government has to admit that only giving away money would not change the financial condition of the companies. I think, along with stimulus packages, the present American government should work on reforming their overall business and corporate sector to survive in the future. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >
<br /></span></b></span></p><p class="MsoNormal"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN0354381220090603?sp=true">Reuters</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-34689066160413115952009-06-03T13:04:00.000-07:002009-06-03T13:06:22.208-07:00Large budget deficit is a major threat to long term financial stability of the U.S.<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="date"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >American government has offered a big stimulus package to revive the country’s economy but that stimulus will cause serious trouble in the long run. In his speech towards the House Budget Committee, Ben. </span><span style="font-size:100%;"><st1:place><span style=";font-family:Verdana;" >S. Bernanke</span></st1:place></span><span style=";font-family:Verdana;font-size:100%;" >, Chairman, Federal Reserve, warned that the huge budget deficit poses a major threat to the country’s financial stability and policy makers have to start planning to restore “the fiscal balance.”
<br /></span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >
<br /></span></p><p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Yields on the ten year US Treasury bonds increased by 1 percentage points since the Federal Reserve announced to buy long term treasury bonds worth $300 billion. On </span><span style="font-size:100%;"><st1:date month="6" day="2" year="2009"><span style=";font-family:Verdana;" >June 2, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" > the bonds yielded a return of 3.61% which came down to 3.54% on </span><span style="font-size:100%;"><st1:date month="6" day="3" year="2009"><span style=";font-family:Verdana;" >June 3, 2009</span></st1:date></span><span style=";font-family:Verdana;font-size:100%;" >. After Barack Obama became the President, the </span><span style="font-size:100%;"><st1:country-region><st1:place><span style=";font-family:Verdana;" >US</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > government offered a stimulus package of $800 billion. It also tookover Fannie Mae and Freddie Mac which increased government spending.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >House Majority Leader, Steny Hoyer also agreed with Bernanke and said that the house is going to pass a legislation to cut spending in one category. President Barack Obama promised to halve the budget deficit by the end of his term and even if he becomes successful, the government will continue with large deficit in future.
<br /></span></p><p class="MsoNormal">
<br /><span style=";font-family:Verdana;font-size:100%;" ><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aLGYMr_g7PSg&refer=us">Bloomberg</a><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com1tag:blogger.com,1999:blog-4681043046795671488.post-77028046439807139032009-06-03T09:18:00.000-07:002009-06-03T09:21:05.640-07:00US job loss will reach a new height<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 10"><meta name="Originator" content="Microsoft Word 10"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Cuser%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><span style="font-size:100%;"><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="place"></o:smarttagtype><o:smarttagtype namespaceuri="urn:schemas-microsoft-com:office:smarttags" name="country-region"></o:smarttagtype></span><!--[if gte mso 9]><xml> <w:worddocument> <w:view>Normal</w:View> <w:zoom>0</w:Zoom> <w:compatibility> <w:breakwrappedtables/> <w:snaptogridincell/> <w:applybreakingrules/> <w:wraptextwithpunct/> <w:useasianbreakrules/> </w:Compatibility> <w:browserlevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if !mso]><object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object> <style> st1\:*{behavior:url(#ieooui) } </style> <![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-bidi-language:AR-SA;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline; text-underline:single;} p {mso-margin-top-alt:auto; margin-right:0in; mso-margin-bottom-alt:auto; margin-left:0in; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} /* List Definitions */ @list l0 {mso-list-id:1080954699; mso-list-type:hybrid; mso-list-template-ids:-1233602156 67698689 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;} @list l0:level1 {mso-level-number-format:bullet; mso-level-text:; mso-level-tab-stop:.5in; mso-level-number-position:left; text-indent:-.25in; font-family:Symbol;} ol {margin-bottom:0in;} ul {margin-bottom:0in;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} </style> <![endif]--> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" >Though </span><span style="font-size:100%;"><st1:country-region><st1:place><span style=";font-family:Verdana;" >America</span></st1:place></st1:country-region></span><span style=";font-family:Verdana;font-size:100%;" > is showing signs of recovery from the economic recession, gloom is still hanging over the job market. Famous computing and business firm, Automatic Data Processing, Inc. released its latest report on June 3, 2009, which says that US employers cut 5,32,000 jobs in May 2009. The company also revised its estimate of April 2009 job cuts from 4,91,000 to 5,45,000. The major cause behind such high job cuts is that employers are still taking necessary cost cutting measures. Here are some of the high lights of the report:<o:p></o:p></span></p> <p style="margin: 0in 0in 0.0001pt 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style=";font-family:Symbol;font-size:100%;" ><span style="">·<span style=";font-family:";" > </span></span></span><!--[endif]--><span dir="ltr" style="font-size:100%;"><span style=";font-family:Verdana;" >Large business organizations cut 100,000 jobs.<o:p></o:p></span></span></p> <p style="margin: 0in 0in 0.0001pt 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style=";font-family:Symbol;font-size:100%;" ><span style="">·<span style=";font-family:";" > </span></span></span><!--[endif]--><span dir="ltr" style="font-size:100%;"><span style=";font-family:Verdana;" >Medium business cut 2,23,000 jobs.<o:p></o:p></span></span></p> <p style="margin: 0in 0in 0.0001pt 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style=";font-family:Symbol;font-size:100%;" ><span style="">·<span style=";font-family:";" > </span></span></span><!--[endif]--><span dir="ltr" style="font-size:100%;"><span style=";font-family:Verdana;" >Small business cut 2,0,9000 jobs. <o:p></o:p></span></span></p> <p style="margin: 0in 0in 0.0001pt 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style=";font-family:Symbol;font-size:100%;" ><span style="">·<span style=";font-family:";" > </span></span></span><!--[endif]--><span dir="ltr" style="font-size:100%;"><span style=";font-family:Verdana;" >The “service-producing” sector declined by 2,65,000 positions.<o:p></o:p></span></span></p> <p style="margin: 0in 0in 0.0001pt 0.5in; text-indent: -0.25in;"><!--[if !supportLists]--><span style=";font-family:Symbol;font-size:100%;" ><span style="">·<span style=";font-family:";" > </span></span></span><!--[endif]--><span dir="ltr" style="font-size:100%;"><span style=";font-family:Verdana;" >The “goods-producing” sector cut 267,000 jobs. <o:p></o:p></span></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" >The US Dept of Labor is going to release its latest job report on June 5, 2009 and as per “analyst average estimate” the report will also show a figure around 5,20,000, a 9.2% increase against April 8.9%. The worst news is, despite economic recovery, American companies will reduce another one million jobs in the rest of the current year and by 2010, the jobless rate of the U.S will hit the peak of 9.5%-10%. It will be the highest since September 1983.<span style=""> </span><o:p></o:p></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style="font-size:100%;"><b><span style=";font-family:Verdana;" >Related articles:<o:p></o:p></span></b></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.reuters.com/article/gc06/idUSTRE5523CR20090603">Reuters</a><o:p></o:p></span></p> <p style="margin: 0in 0in 0.0001pt;"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.bizjournals.com/baltimore/stories/2009/06/01/daily34.html">Business Journal</a> <span style=""> </span><span style=""> </span><o:p></o:p></span></p> Mehdihttp://www.blogger.com/profile/10110165797514750561noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-65604886350175325292009-06-01T13:55:00.000-07:002009-06-01T13:58:34.417-07:00GM Bankruptcy: Toughest Challenge for Barack Obama<p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">The expected thing <a href="http://www.azcentral.com/news/articles/2009/06/01/20090601GM01-ON.html">happened today</a>- General Motors filed for bankruptcy. The company had no other option but to do so. I know that many people are wondering what went wrong for the company that has been for many years the largest employer in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region>. The emergence of the company 101 years ago perhaps took place at the same time of <st1:country-region st="on"><st1:place st="on">America</st1:place></st1:country-region>’s entrance in the global scene as the largest economy. The company has already received nearly $20 billion from the government and another $30 billion is supposed to come. In return, the <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> government will get roughly 60% of share. So, Obama government will be at the helm of this company for sometimes. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">The plan is very simple- to cut cost, to shed off many workers, close some manufacturing plants and thus the company will become much smaller than it is now. Obama and his team think that a smaller but more efficient company will emerge and it will become profitable soon. If it happens then no problem. Obama will get all the praise and people will remember him as a great president for many years. However, many people are skeptical about the turn around of the fortune of this company and to be honest with you, I am one of them.<o:p></o:p></span></p> <span style=";font-family:Verdana;font-size:100%;" >That is perhaps why, I feel some sympathy for President Obama. After all, economic recession did not start during his reign and the same goes for GM problems. He just inherited them from George Bush. It is a bit unfair that he Obama has to deal with both these two huge problems that have affected <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> economy in a very negative way. So, if the condition of GM worsens in the next few years then it may have serious political implication for his reelection bid in 2012. That is why, I feel that it is very important for Obama and his team to give this message to the people that the condition of General Motors is very bad and if it goes worse then they should not blamed unfairly. Instead, I would advise his PR team to focus on the fact that he did not try to avoid the issue. Rather, he accepted the challenge and tried to do something about it. </span>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com2tag:blogger.com,1999:blog-4681043046795671488.post-76675420520926739322009-05-31T12:51:00.000-07:002009-05-31T12:53:09.409-07:00General Motors Getting Bankrupt: May be it is Good<p class="MsoNormal"><span style="font-family:Verdana;">For quite some time, we have heard a lot of rumors about the problems of General Motors and other <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> automakers. According to a CNN report: <a href="http://money.cnn.com/2009/05/31/news/companies/gm_bankruptcy_looms/?postversion=2009053113">General Motors on the brink</a>. From the heading of the report written by Chris Isidore, you can easily understand what is going to happen. Many Americans considered GM to be an “icon of American manufacturing”. So, this icon is failing and falling very hard. If there is a take over from the US government then before that, GM needs to get some kind of bankruptcy protection from the court so that it can decrease many costs involving the stake holders. So, many workers would get much less money from the fallout and in the end, they are going to suffer a lot. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">There is no doubt that many people will lose jobs in the coming months in GM. Also, the company will have to close down some factories to cut cost. Many retired workers will also suffer some kind of reduction in their pension. Many dealers and their workers (in dealer shops) will also suffer. So, it will send some kind of a shockwave to the <st1:place st="on"><st1:country-region st="on">US</st1:country-region></st1:place> economy. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">President Barack Obama will give a speech to the nation tomorrow and in it, he is expected to talk a lot about GM bankruptcy. He thinks that it is best for the company and for the <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> economy. I have similar idea too. I think that General Motors is in dire condition now. If the problem is not addressed at this moment then it can be too late to do something later. Do you agree with me? <o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-20823705199959960952009-05-28T12:28:00.000-07:002009-05-28T12:30:29.038-07:00AOL and Time Warner: No Longer Together<p class="MsoNormal"><span style="font-family:Verdana;">It was perhaps the merger that created the biggest media buzz of last century or this century (depending on which way you think about the year 2000). The confirmation has come and it will take another <a href="http://www.guardian.co.uk/media/pda/2009/may/28/aol-bebo">few months</a> for the demerger to complete. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">I think that it will be good for both the companies to part way. AOL can become an independent company and would perhaps go to stock exchange and raise some capital and focus itself as a Internet based company. On the other hand, Time Warner will continue its business of big TV channels like CNN, film making activities, and printing magazines. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">Now, it is perhaps the clear that this match was not made in heaven and it created a lot of problems in the last few years. In fact, they sold a number of small companies to competitors as they could not make profit. I still remember that before merger there was WCW wrestling and in 2001, it was sold to WWF for just <a href="http://en.wikipedia.org/wiki/Time_Warner">$7 million</a>. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">So, it will be interesting for us to note what happens next to AOL. I guess that Time Warner will not suffer from this separation. AOL will face itself in to a challenging position because the Internet market is very crowded. However, it may be a blessing in disguise for AOL because then its decision makers will enjoy more freedom and would be able to actively scout for buying up start up companies that can become profitable in future. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">Related Articles<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;"><a href="http://www.time.com/time/business/article/0,8599,1901508,00.html">Time</a><o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-13617383228198643572009-05-27T12:20:00.000-07:002009-05-27T12:21:06.048-07:00Economic Recession Will End in 2009: Most Economists are Wrong!<p class="MsoNormal"><span style="font-family:Verdana;">In a survey, most economists have predicted that economic recession in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region> will end in 2009. National Association for Business Economics carried out the survey and <a href="http://www.bloomberg.com/apps/news?pid=20601068&sid=a62f_EptgAT0&refer=home">74% of economists</a> thought that things would become better for the <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> economy in the next quarter. Well, I was going through most of the reports in major websites like Bloomberg, AP, CNN etc and I did not find anything to be excited about that the recession would end in the <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> in 2009. The economists perhaps feel that the stimulus package and increasing consumer confidence would help to make things OK again. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">First of all, 5 months of the year is almost gone. The trend of job loss has not vanished. Rather job loss figures look as solid as it can be. Even in the survey, many economists felt that people will not get back their jobs right away. In fact, what I feel that many big companies are fighting to remain profitable. Major automakers are on the verge of bankruptcy. The banking sector is not in good shape either. President Obama may have offered a stimulus package but there is no substantial plan for creating new jobs. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">As a hobby economist, I feel that creating new jobs will be the biggest challenge. Recession will only finish when this problem can be addressed. On the other hand, <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> economy is closely related to European and Asian countries. There is no good news for those countries. In the last few days, we have seen one after another Japanese company big annual loss. We have also seen very bad condition of economies of <st1:country-region st="on">Germany</st1:country-region> and <st1:country-region st="on"><st1:place st="on">Britain</st1:place></st1:country-region>. The same thing goes for <st1:country-region st="on"><st1:place st="on">China</st1:place></st1:country-region>. In a global world, <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> economy cannot remain safe in an island. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;">Well, I am a hobby economist. Still, I understand that most economists failed to predict about the start of the recession. So, I will not be surprised if their prediction is wrong again. <o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-41389651754174935112009-05-27T05:28:00.000-07:002009-05-27T05:49:07.162-07:00US Consumer Confidence Helps Asian Stock Markets<p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">Right now, among many consumers in <st1:country-region st="on"><st1:place st="on">America</st1:place></st1:country-region>, there is a sense of optimism about the economy. They feel that the worst time is over and we will see better time in the coming months. Well, I cannot understand the logic behind this kind of optimism but the good news is that it is helping share markets around the world, mostly in Asian countries. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">It started with <st1:state st="on">new York</st1:state> stock exchange and when it was clear that consumer confidence is high compared to the last eight months, many investors in <st1:state st="on"><st1:place st="on">New York</st1:place></st1:state> felt confident in spending more money and this resulted in good increase. The same thing happened in Asian markets.<o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">It is good news but I’m not that much optimistic because the economic recession is it still very real and there is no possibility that it will end in 2009. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;"><o:p> </o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">Related Article<o:p></o:p></span></p> <span style=";font-family:Verdana;font-size:100%;" ><a href="http://online.wsj.com/article/BT-CO-20090526-716730.html">WSJ</a></span>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com1tag:blogger.com,1999:blog-4681043046795671488.post-17709676490927609502009-05-26T14:15:00.000-07:002009-05-26T14:17:46.643-07:00Too Cheap is not Good for Consumers in the Long Run<p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">First of all, I want you to read this report of BBC: <a href="http://news.bbc.co.uk/2/hi/uk_news/magazine/8052387.stm">The far-away food factories</a>. It has talked about the experience of a student from <st1:country-region st="on"><st1:place st="on">UK</st1:place></st1:country-region> who recently visited a fish processing factory not as a tourist but as a worker. That factory supplies fish for some supermarkets in <st1:country-region st="on">England</st1:country-region> and the Indonesian workers have to work very hard to meet the strict standards of <st1:country-region st="on"><st1:place st="on">England</st1:place></st1:country-region> and EU in terms of hygiene and cleanliness. Very nice to see that the consumers get clean products and can enjoy their meals. After all, they pay for it and they are entitled to getting quality products. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">There is nothing wrong or unethical about it. What is so bad is that the workers in the fish factory gets very low salary. Of course, <st1:country-region st="on"><st1:place st="on">Indonesia</st1:place></st1:country-region> is not a rich country and you cannot expect that the workers will get good salary. However, the salary they get is really pathetic. Some of them even cannot live with their families. Some of them are too poor to make a bus ride to another part of the district to see their children. Still, they cannot or wont leave the jobs because this is the best deal they have got. If they did not have this job then life would have become even worse. The factory owner is a bit helpless too. May be he is getting some healthy amount of profit but in the end of the day, he cannot bargain hard with the British supermarkets because then the supermarkets would go for another trader or producer. <o:p></o:p></span></p> <p class="MsoNormal"><span style="font-family:Verdana;font-size:100%;">The consumers in <st1:country-region st="on"><st1:place st="on">England</st1:place></st1:country-region> are very happy to get fish in an affordable price. So, in the end of the day, everyone is happy. However, on a second thought, we have to remember that it is inhuman that some people cannot even see their children for many days just because you want to have cheap fish. From ethical point of view, this is bad and even immoral. However, let us take a look from the business of point of view. First of all, as a consumer, you will get habit to cheap products. Secondly, the consumers of the rich countries have to work and earn money. They have to produce some goods and services that people of the poor countries will have to buy. However, if the consumers of rich countries destroy this balance then the workers of poor countries will never have any real purchasing power. <o:p></o:p></span></p> <span style=";font-family:Verdana;font-size:100%;" >I feel that more than the credit crunches in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region>, this kind of bad consumerism caused the global recession. Of course, I am a hobby economist and you do not need to take my view seriously. In <st1:country-region st="on">China</st1:country-region> and <st1:country-region st="on"><st1:place st="on">India</st1:place></st1:country-region>, still more than 1.5 billion people do not have a car. On the other hand, in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region>, auto makers like General Motors are on the verge of getting bankrupt. They are getting bankrupt because they cannot sell their products. If they could sell a car to just even 10% of that 1.5 billion people of <st1:country-region st="on">India</st1:country-region> and <st1:country-region st="on"><st1:place st="on">China</st1:place></st1:country-region> then they would have much better condition right now. <span style=""> </span><span style=""> </span></span>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com0tag:blogger.com,1999:blog-4681043046795671488.post-58442062261541613392009-05-23T12:10:00.000-07:002009-05-23T13:21:46.216-07:00Credit Card Reform: Is it Addressing Just one Side of the Coin?<p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Sen. Chris Dodd must be a very happy man because he could finally get President Obama to make credit card reform a law. Mr. Dodd has fought bravely for this law and he had to be against lobby groups who are very active to preserve the interests of banks and credit card companies. In the new law, the credit card companies will have to maintain some restrictions and will surely not be able to charge like the past. Thus, it will save a lot of money for the ordinary people. Now, Mr. Dodd wants more and he will try to make life easier for the consumers. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >What I feel is that this law is just addressing one side of the coin. Of course, the companies have to lower their rates and make less profit. Many people in <st1:country-region st="on"><st1:place st="on">USA</st1:place></st1:country-region> get bankrupts every year because of spending too much money on credit cards. So, there should have been some kind of reforms over due long ago. Mr. Dodd should get a lot of applause for his heroic role in this regard. However, I think that we all are forgetting the other side of the coin. Millions of Americans take credit card for granted. They think that it is near to free and they do not need to pay it back. This kind of mentality leads to free spending and as a result, many families get broke and the companies in order to make up the loss charge more on the customers who pay regularly. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >I wonder what Obama administration would do about the second side of the coin. Will they make some new rules that people who cannot afford to pay back money should not be issues new cards. Or even better, some people should not be given credit cars in the first place? I know that this is radical idea and it is not a popular idea. However, what I believe is that Obama should try to address both sides of the coin. Otherwise, it can lead to a new kind of economic disaster after a few years. <o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><o:p> </o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" >Related Articles<o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.miamiherald.com/living/story/1060254.html">Miami Herald</a><o:p></o:p></span></p> <p class="MsoNormal"><span style=";font-family:Verdana;font-size:100%;" ><a href="http://www.baltimoresun.com/business/bal-dodd-credit0523,0,2063810.story">Baltimore Sun</a><o:p></o:p></span></p>Razib Ahmedhttp://www.blogger.com/profile/02313465448916741004noreply@blogger.com0