From the LA Times: Gov. Arnold Schwarzenegger this morning ordered state workers to take a third day off without pay each month after Republican lawmakers acting with his support blocked a Democratic proposal to ease the state’s deficit and allow the government to keep paying bills. The Republican governor unveiled billions of dollars in additional proposed cuts to schools and public universities to deal with a deficit that he says is now $26.3 billion, an increase of $2 billion. He also anno... Read Full Story

Worth the read: Goldman Sachs Socialize Read Full Story

This morning the World Bank significantly cut it’s forecast and the futures are diving…remember we said this a while back… The World Bank said the global recession this year will be deeper than it predicted in March and warned that a flight of capital from developing nations will swell the ranks of the poor and the unemployed. The world economy will contract 2.9 percent, compared with a previous forecast of a 1.7 percent decline, the Washington- based lender said in a report... Read Full Story

Looks like we might get our answer sooner than later… we go: SAN FRANCISCO,  (Reuters) – California, struggling to close a $24.3 billion budget gap, faces the prospect of a “multi-notch” downgrade in its credit rating if the state’s legislature fails to act quickly to produce a budget, Moody’s Investors Service warned on Friday. The ratings agency’s decision to place California’s general obligation debt on alert for such a dramatic possible downgrade stunned state officials. “I cannot r... Read Full Story

As we head into a new week, I got to thinking, I wonder which will happen first…will Citi Bank be split up before or after California goes bankrupt?  Although that sounds tongue and cheek it is a real possibility that one if not both of these events will occur.  California Governor Arnold Schwarzenegger has issued an executive order in an attempt to address the serious financial issues facing the State whereby all “contracts proposed to be entered into during the 2008-2009 fiscal ... Read Full Story

Let’s look at the banks today.  J.P. Morgan closed at 35.39.  J.P. Morgan was only $10 more during the housing boom when it had real earnings potential.  I use JPM as an example because I actually think it is one of the better (if not the best) bank out there.  I am not saying I like the banks (not at all am I saying that) I am just picking the best of a bad bunch.  Okay, so now ask yourself is JPM really worth only $10 less than when it actually had earnings potential?  What happens if... Read Full Story

Well as I sit and write this the Dow is up close to 70 points running into tomorrow’s jobs report. Looking at the volume, looking at past historic charts, and looking at today’s action leads me to believe that we are coming to an end of this Bear Market Rally. Yes folks, I am calling it. We might well run up after tomorrow’s job data which in my opinion might be the first time in 20 weeks that we have a decline in unemployment benefit numbers (maybe)…and we top off ... Read Full Story

In a Nation that is driven by consumption, a lot of economic recovery will be based off of the actions the consumer takes or in this case doesn’t take. Most retailers missed the Street’s water downed May estimates. What this tells us is that the consumer is still not spending. Folks we are a Nation that is driven by spending and we are scared and not spending on discretionary items. This trend will continue. Check out our New Live Chat Room CHECK THIS OUT! Socialize Read Full Story

Okay with the GM bankruptcy just hours away, I have to ask the question “why would an American ever buy a GM car?”  Why?  We as citizens of this country have now taken a 70% stake in the car company…why would you pay to buy a car from your own company, why?  If you think GM is going to repay the government…come on get real.  This isn’t Lee Iacooca’s Chrysler this is the “New GM”. Furthermore, as more and more American’s begin to realize th... Read Full Story

This was just reported in the Wall Street Journal: WASHINGTON — A government program designed to rid banks of bad loans, part of a broader effort once viewed as central to tackling the financial crisis, is stalling and may soon be put on hold, according to people familiar with the matter. The Legacy Loans Program, being crafted by the Federal Deposit Insurance Corp., is part of the $1 trillion Public Private Investment Program the Obama administration announced in March as a way to enco... Read Full Story