Volatile early trade has the major averages holding small losses to begin the week on thin news. Citigroup announced another 50,000 layoffs in a cost cutting move as the company struggles to regain profitability, this follows earlier layoffs this year of 23,000. Retired Republican Senator and co-sponsor of the Financial Services Modernization Act, the legislation that repealed Glass-Stegal and paved the way for the financial services innovation that spawned the current credit and real estate fiasco. Claimed in a Sunday NYT Article that sub-prime was the American Dream in action and that deregulation played virtually no roll in the current mess. Yet more pearls of wisdom from the same individual that opined we are a nation of whiners and that the recession is mental. I’m not quite sure exactly what is “mental” about foreclosure and unemployment but perhaps Mr. Gramm will explain that to us another time. On the subject of explanations seems the worlds #2 economy Japan has officially entered recession, joining the Europeans and the words #3 economy Germany. Here at home the folks that decide the official beginning and end of these things, the NABE still hasn’t declared it official despite a preponderance of evidence that shows it began December 07 or January 08 and that 96% of their members believe the US is in recession. That said the 3rd quarter GDP is on track to be revised down to -.6% from the originally reported -.3%. The real shocker is 4th quarter GDP, currently estimated to be tracking a nearly 4% decline as per the economy.com.
Hi and welcome to The Profit Motive, I’m your host Caleb Lawrence. Once upon a time in America the media acted as the watchdog of the corporations and the state. In the modern era it’s all about ratings and profits, opinion has been substituted for news and frequently is presented as fact. Much like my daily radio show on KPIG 107.5 FM in Santa Cruz California and KPYG FM 94.9 Cayucos/San Luis Obispo California. A thousand Blogs were able to spot the current problems and many began discussing it years before it reached crises proportions. While there were exceptions, and these exceptions are becoming more common, the mainstream media failed to get it and largely continue to do so.
