Retail sales dropped 2.8 % in October. November Consumer Confidence level up .3 points in November from October, 57.6 to 57.9. [Reuters]
money meltdown
By 11.13.08
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It looks like the auto industry bailout doesn’t have the votes. [NYT]
By 11.13.08
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The recession in the EU might be even deeper than the one in the US. Case in point: Ireland, which thrived off now-dormant construction cranes. [Washington Post]
Banks Want To Forgive Credit Card Debt — But The Government Says No
By 11.13.08
The next wave of the credit crisis — the skyrocketing defaults on credit cards — is coming in and odd alliances are being formed. The Consumer Federation of America, along with the Financial Services Roundtable ( a self-described “major player on Capitol Hill and with the regulators” which represents the securities, investment, insurance and banking industries) has requested a “special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don’t qualify for existing repayment plans.”
Credit Card Defaults Hit QVC
By 11.13.08
QVC, the home shopping network, has announced that they will be laying off 910 workers over the next 14 months. A reader who would like to remain anonymous, described the layoff process in an email to Consumerist.
The Tom Hanks Movie "The Money Pit" Is Actually A Documentary About Our Economy
By 11.12.08
Over at Slate they’ve realized that the Tom Hanks movie from the 80s “The Money Pit” is actually just a documentary about our current financial crisis and the bailout of AIG. Specifically, the scene in which the kitchen catches fire and the bathtub falls through the floor. (Video, inside…)
By 11.12.08
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The government has officially announced that they will not be buying troubled mortgage assets — the original point of the so-called Trouble Asset Relief Program, and will instead be offering the bailout money to financial firms that are getting hit with a wave of defaults in credit cards and car loans. [CNNMoney]
Best Buy To Employees: Survive The Meltdown By Making Customer Service A Priority
By 11.12.08
Today Best Buy announced that it was officially freaking out about the current financial meltdown: “In 42 years of retailing, we’ve never seen such difficult times for the consumer,” Brian Dunn, president and chief operating officer of Best Buy, said in a statement. “People are making dramatic changes in how much they spend, and we’re not immune from those forces.” A Best Buy employee forwarded us an email that went out to all associates this morning — stressing that a renewed commitment to customer service was the way forward during these troubled times.
So, Um, What Happened To That 2 Trillion Dollars In Bailout Money?
By 11.12.08
“Hey, guys? Where did that 2 trillion dollars go?” asks Bloomberg. The answer? We’d tell you, but it would be bad for you.
AIG's CEO Issues Statement About $343,000 Phoenix Seminar
By 11.12.08
Bothered by news reports about another high-priced junket, AIG’s CEO Edward M. Liddy issued a public statement to correct the innacuracies he saw. AIG Media Relations emailed it to us and wanted to make sure we shared it with our readers, and since we’re all about sharing at The Consumerist, here it is:
Fannie, Freddie Announce New Loan Mod Plans For Borrowers 90+ Days Overdue
By 11.11.08
The Federal Housing Finance Agency announced plans for allowing Fannie and Freddie to modify more of their loans. The mods will lower interest rates or lengthen the repayment schedule with the goal of bringing payments below 38% of household income. To qualify, borrowers must:
Next Victim Of The Economic Meltdown? Santa.
By 11.11.08
Christmas Creep may be more out of control than ever this year (Were Veterans Day sales always Christmas-themed?), but that doesn’t mean that these are happy holidays for professional Santas. Yes, according to the Amalgamated Order of Real Bearded Santas, an organization that actually exists according to the Wall Street Journal, Santa bookings are down. Way down.
AIG Spends $343,000 On Secret Seminar
By 11.11.08
AIG is hurting so bad that we just gave them another $40 billion, while execs live it up at another luxury junket, this one costing $343,000. KNVX uncovered another high-priced conference taking place at the Pointe Hilton Squaw Peak Resort in Phoenix, AZ. They reported that AIG made efforts to disguise its presence, making sure no AIG iconography was out in the open. One hotel employee said that staff was forbidden from even saying the word AIG. AIG said seminars like this, which was for independent financial advisers who steer customers to AIG, are essential to its business. They also said that most of the seminar’s costs would be picked up by other corporate sponsors. AIG said in a statement, “We take very seriously our commitment to aggressively manage meeting costs.”
McDonald's Sales Rise 8.2% In October As More Switch To Eating Crap
By 11.11.08
Good food costs more, so people are switching to eating less costly simulacrums of sustenance: McDonald’s same-store sales rose 8.2% in October. If you can’t afford to eat food, just eat “phood.”
Fannie And Freddie To Announce More Sweeping Loan Modifications
By 11.11.08
Fannie Mae and Freddie Mac are expected to announce today plans for accelerating and expanding mortgage loan modifications for distressed homeowners. The new guidelines will apply to specific kinds of past due loans and try to bring their debt to income ratio down to 38%. Washington will also prod other big banks to do the same. “It could apply to a broad range of borrowers,” reports WSJ. Expect the full details at a 2pm eastern Federal Housing Finance Agency press conference.
The Town With The Most Screwed Housing Market In America
By 11.11.08
Nearly 90% of the homeowners in Mountain House, CA owe more on their mortgages than their house is worth. The average homeowner is down by $122,000. What are they doing to cut back? No more dinners at Applebee’s, buying 1 DVD a month instead of 50, canceling remodeling projects, and playing board games at home instead of going out to the movies, “But not Monopoly,” reports NYT, “with its real estate theme, it reminds them too much of real life.” One man is even cutting back on his scub and flying hobbies, and waiting until after Christmas to buy a high-def television. Wow. I think you’re going to have to dig a little deeper…
Video: What Are Margin Calls?
By 11.10.08
What are margin calls? The term has been bandied about lately as being one of the reasons for the steep declines in the market. Basically, it’s when depositor’s margin account at a brokerage falls below minimum levels and the brokerage tells the depositor to either deposit more money or they have to sell off some of their holdings. And a spate of selling drives down stock prices because as supply increases, prices drop. But why are there margin accounts and why are brokerages making margin calls in the first place? Marketplace’s ever-salubrious Paddy Hirsch explains with girl scouts, girl scout cookies, a whiteboard, dry-erase markers, and stick figures, in the video inside…
DHL Cuts 9,500 Jobs, No More Shipping Inside US
By 11.10.08
No more DHL for you, America. They’re cutting 9,500 jobs and suspending domestic mailing operations. This leaves the shipping field back to UPS, FedEX and the USPS. However, you can still ship with DHL internationally from the US, so no need to fret that you can’t keep sending those care packages to Cuba and North Korea.
