Job losses and real-estate

[Busta Hustle]

Hope this isn't sacriligious
The New Daily Prayer:

Our Fed who art in Washington half as_ed be thy name.
Thy bail out come thy TARP be done on main street as it is on wall street.
Give us this day our government cheese and forgive us our bank loans as we forgive those who have renderd us homeless.
And, lead us not into depression but deliver us from vehicles of wealth destruction!
Ahem.

 

[Beach Runner]

Here's an excerpt from an AP article today:

"October's jobless rate was the highest since March 1994 and now has surpassed the 6.3 percent 2003 high after the most recent recession. The government also said job losses were worse than first reported for the preceding two months, 284,000 rather than 159,000 in September and 127,000 rather than 73,000 in August.

Many economists believe the unemployment rate will climb to 8 percent or 8.5 percent by the end of next year before slowly drifting downward. Some think unemployment could even hit 10 or 11 percent — if an auto company should fail.

In any case, the rate is likely to move higher even if the economy is on somewhat stronger footing by the middle of next year as some hope. That's because companies won't be inclined to ramp up hiring until they feel certain that a recovery has staying power."


http://ap.google.com/article/ALeqM5ioHc80xKMiATnqCpK0cDKJzk_nPQD94AM5UO0

Anyone know which auto companies are in jeopardy? Is it just Detroit? KIA is building a huge manufacturing facility on I-85 near the GA/AL line. Wonder how they'll be affected and, thus, the economy in West Georgia which is depending on these new jobs?

 

[SHELLY]

Anyone know which auto companies are in jeopardy? Is it just Detroit? KIA is building a huge manufacturing facility on I-85 near the GA/AL line. Wonder how they'll be affected and, thus, the economy in West Georgia which is depending on these new jobs?

...Ford, GM, Chrysler are in deep do-do and begging for a handout. Hyundai/KIA posted a 38 percent fall in net profit list quarter and forecasting 2009 sales will be gloomy.

.

 

[Matt J]

...Ford, GM, Chrysler are in deep do-do and begging for a handout. Hyundai/KIA posted a 38 percent fall in net profit list quarter and forecasting 2009 sales will be gloomy.

.

Didn't GM just shrug its shoulders and turn out it's pockets?

 

[SHELLY]

Didn't GM just shrug its shoulders and turn out it's pockets?

From today's press report:

"GM is down 10 percent as Deutsche Bank lowered its rating on GM to a Sell, but more interesting is the price target: $0. That's because, like most analysts, Rod Lache has concluded that a government bailout is not likely to help the shares, that even with a bailout GM's future, if it is not in bankruptcy, is likely to be "bankruptcy-like." That means that secured creditors may be made whole, while unsecured creditors will get a very low recovery. Equity shareholders will likely get nothing."

 

[AAbsolute]

From today's press report:

"GM is down 10 percent as Deutsche Bank lowered its rating on GM to a Sell, but more interesting is the price target: $0. That's because, like most analysts, Rod Lache has concluded that a government bailout is not likely to help the shares, that even with a bailout GM's future, if it is not in bankruptcy, is likely to be "bankruptcy-like." That means that secured creditors may be made whole, while unsecured creditors will get a very low recovery. Equity shareholders will likely get nothing."

That's about the way I see it as well. Long live the Union's

 

[traderx]

That's about the way I see it as well. Long live the Union's

I read over the weekend that the Big Three pay assemblers $20 per hour more than the Japanese pay their workers. That's a fully loaded number that includes benefits. And these are unskilled workers...no wonder the US automakers are in trouble.

 

[Busta Hustle]

Isn't it ultimately managements job to have a good working relationship with its employees? Do you happen to know the income of execs and how it compares to those assemblers?

 

[Matt J]

What if they stopped cranking out gas hogs?

 

[SHELLY]

Isn't it ultimately managements job to have a good working relationship with its employees? Do you happen to know the income of execs and how it compares to those assemblers?

Ford's top 5 execs raked in over $60 million in 2007. They've earned their bonuses because Ford only had a net loss of $2.7 Billion--which would have been less if they weren't given bonuses:

"In addition to information about the Annual Meeting, the 2008 proxy provides a detailed review of total 2007 compensation provided, granted to or received by five named executive officers during the year -- based on the company's 2007 performance. Details include:

-- Alan Mulally, Ford president and chief executive officer, earned
$2,000,000 in salary and received incentive bonus awards of $7 million.
Total 2007 compensation was $21,670,674, which includes salary,
bonuses, the Company-recognized expense for stock options and other
stock-based awards, as well as all other compensation.

-- Don Leclair, Ford executive vice president and chief financial officer,
earned $1,005,633 in salary and received incentive bonus awards of $3
million. His 2007 compensation totaled $11,703,127.

-- Mark Fields, Ford executive vice president and president, The Americas,
earned $1,255,634 in salary and received incentive bonus awards of
$2,850,000. His 2007 compensation totaled $8,389,898.

-- Lewis Booth, Ford executive vice president, Ford of Europe and Premier
Automotive Group, earned $868,133 in salary and received incentive
bonus awards of $2,250,000. His 2007 compensation totaled $10,264,463.

-- Mike Bannister, Ford executive vice president and CEO, Ford Motor
Credit Company earned $708,700 in salary and received incentive bonus
awards of $2,150,000. His 2007 compensation totaled $8,677,747."