Top World News

Once the global business trade was restricted to small and mid level companies however the scenario is changing these days. Both large and big companies and corporations establish their offices manufacturing operations, and trade associations for making their business operations across the globe. The global nature of the companies is now letting their induction in the global share markets.

The global stock market around the globe reflects the coordination among the global corporate players. Interestingly the growing integration between each trading market is coordinated. The fluctuation in one market closely related to another in all the aspects. This economic relationship among the markets make a big impact on the stock scenarios is based on complete speculations.

The trendy heritage of the world stock markets is worth aphorism. The stock markets of the developed economies are the very decisive factor that decides the fate of the economies and also the ways in which stock trading has to be taken place. World economy is now watching these markets dancing on the finest tune of financial surges. The trade tradition and the finance culture in these global places are different from each other.

Global International is a reasonably priced investment for what seems to be an excellent return on your dollar. Now a day's people are holding on to their hard earned cash a little tighter than usual and won't give up that hundred or thousand dollars so fast. So Small investments are what you should be looking for on the internet while you're cruising.

The company has gone Global so fast because of its small capital outlay and its early success. Normally most companies would take several years to reach its growth. I've checked this company out quite thoroughly and it looks as though its Simplicity is also a very big factor. Simplicity tied to a low cost of investment is rare to find these days especially if you are a beginner entrepreneur.

When you are working with any of the companies you find on the internets that are successful keep in mind their methods. In other words if they lay out a plan of success follow it to the tee because more than likely that is the method that has gotten their customers or investors optimum return on their dollar.

This is a news feed and informational source for all things related to the coming recession which could be the greatest recession of the 21st century. Many economic advisors are warning of the biggest recession since the Great Depression of 1929 and these sentiments are echoed on this blog. We invite our readers to have an open mind while learning about this subject as the huge wealth of information can be confusing and counter-intuitive but that is the nature of the modern economy.

How Do I Protect My Savings And Investments?

This is a problem many people are asking themselves now as pensions, savings accounts and property investments all get hit by the downturn and the menace of monetary inflation. Those who have debt rather than savings are frantically trying to refinance their loans and mortgages after coming off fixed deals but despite low interest rates the safest place to be now is to have savings in safe commodities and no debt.

Hyperinflation, What It Is and How to Avoid It?

Hyperinflation also known as "Tiger Inflation" is the leading scare we have looming over the world economy, the possibility that countries throughout the world will hyperinflate their currencies away in a bid to inflate away their debts which is essentially a way of diluting all debts in a currency among all shareholders of that currency, what do I mean by shareholders? Basically anyone with any money held in that currency. A good example of this is that a dollar today would be worth 33% less if inflation went up 50% and a lot less if that was compounded each year. This is why safe commodities are the best option because they protects against hyperinflation better than any other investment in the long term.

It is important to note that what we are seeing in the global economy is not a private-sector lead bounce back, but a modest uplift in output courtesy of unprecedented fiscal and monetary measures by central banks and governments. While demand remains so weak, such support will continue to be necessary.

On bankers' payment and regulation, the robust attitude of most European nations, however, makes more sense than our own Government's more timid stance. While the investment banking arms of several banks are turning a profit, this is in large part because extraordinary help from the authorities has driven down the cost of their capital. This assistance is necessary for the good of the wider economy, but there is no justification for investment banks paying vast bonuses to their staff while they receive this special help, especially while non-financial sectors of the economy are still suffering.

Moreover, France and Germany are right that there needs to be a elementary shift away from the reckless model of lightly-regulated high finance, which did so much to generate the crisis. And, since flows of capital and bank employees are global, there needs to be global co-ordination to deliver this.

But the most critical message finance ministers need to heed today – and world leaders later this month – is of the dangers of complacency. There are some welcome signs that the pace of economic decline is slowing, even of a bottoming out to the global downturn. But this recovery, such as it is, is fragile. We are by no means out of the woods yet. The policy response of all G20 nations needs to reflect that sobering reality.

It is a borne fact that talking about worldwide business marketing is fiscally precarious especially that you are like diving into the realm of uncertainty where there are diverse cultures that have to be coped up with.

Talk to your clients

It really makes a whole lot of divergence when you personally converse with your clients. It is there that you can launch stronger ties where you can also discover what those you need to improve are. Ideally, it is performed by treating them somewhere as long as it would not be inside your office because tendency is, it can restrict them to open up and on your end, and you would not be able to achieve your goal. Simply get in touch with about 5 to 10 people by sending them a letter. When you get a favorable response, make an appointment and ask value- based questions such as the challenges they are facing and solutions for recovery.

Creative marketing campaigns

International business marketing will persistently require you to strive for innovation, this is because novelty attracts. It does not have to be a high- cost production commercial just to capture potential individuals. Think out of the box as others will say it. It does not matter what your other competitors will critique as long as you will reap the objectives of your action. The secret behind is that you understand perfectly what you are aiming for and not just for the sake of doing it. When those are done, it is high- time to get publicity.

Leverage existing relationships

Make a listing of all those that you know. Prioritize them into either A, B or C- A is for the advocates, B is for the budding supporters and C is for those you can hardly get in touch with. Send them an e-mail of everything that you have prepared so that when you will call them, you just have to ask them for numbers of those that they are acquainted with. This is one of the mediums for international business marketing that is cost- effective and high- impact.

According to its critics, the "Buy American" condition of President Obama's economic recovery package will set off a vicious cycle of 1930s-style retaliatory protectionist measures that will only push us and the rest of the world deeper into recession. Concern about a return to a version of "beggar thy neighbor" retaliatory trade policies, however, completely misses the real problem facing the global economy today.

The "Buy Keynesian" clause would let the President thread the political spine. He gets to keep the "Buy American" provision that many taxpayers (and Senators) are demanding. And, when foreign leaders accuse him of protectionism, he can rightly respond that their goods have been excluded not because they are foreign, but because their countries aren't pulling their weight in the international recovery.

More importantly, a Keynesian clause would increase the efficiency of both the U.S. and foreign stimulus packages by encouraging a virtuous circle of fiscal stimulus. Access to the U.S. stimulus expenditures increases the incentives for the rest of the world to carry out stimulus of their own. The larger the scale of these international efforts, the more effective each national stimulus plan will be.

As the world's largest economy -- with a gluttonous appetite for imports -- the United States is uniquely placed to lead the world out of a recession. Replacing "Buy American" with "Buy Keynesian" could actually go a long way toward filling the biggest hole in the current global response to the deepening recession: the lack of coordinated international fiscal policy.

Countries in the United States are the world's largest trading zones on our doorstep, there's little wonder that more and more companies are turning to export as a means of boosting their business.

Exporting however, isn't a footstep to be taken lightly and kick-starting an export initiative can be costly. The good news is that with thorough planning and the right finance partner, the rewards can be impressive.

A fundamental challenge exporters facing is cash flow. Demands on funds are huge and it's easy to find them spread more thinly than is comfortable: there's the investment required to seek out potential markets and the need to offer attractive terms of credit in order to win new contracts and customers.

Today the export procedure is quicker and Letters of Credit are largely outdated. Goods are being shipped faster and documentation often lags behind. Thus, customers are becoming less interested in doing business with suppliers that insist on using Letters of Credit because they have to commit funding to support purchases up front and deal with an excess of paperwork. To be competitive it's essential to be prepared to base your export initiative on 'open account' terms - issuing an invoice on the dispatch of goods or services and giving the customer somewhere between 30 and 90 days to pay.

But all is not lost. The key is to find the right funding partner and funding mechanism to help alleviate the risks associated with exporting and stabilize the cash flow required to fund it.

The topic of off shoring generates extreme differences of opinion among policy makers, business executives, and thought leaders. Some have argued that nearly all service jobs will eventually move from developed economies to low-wage ones. Others say that rising wages in cities such as Bangalore and Prague indicate that the supply of offshore talent is already running thin.

To a large extent, these disagreements reflect the confusion surrounding the newly integrating and still inefficient global labor market. Much as technology change is making it possible to integrate global capital markets into a single market for savings and investment, so digital communications are giving rise to what is, in effect, a single global market for those jobs that can now, thanks to IT, be performed remotely from customers and colleagues.

The newly integrating nature of this global labor market has strategic and tactical implications for companies and countries alike. Information and insight about it are sparse, however, and executives and policy makers have little of either for making the decisions they face. To provide help for governments and companies in both high- and low-wage economies, the McKinsey Global Institute (MGI) analyzed the potential availability of offshore talent in 28 low-wages.

The global financial crisis, brewing for a while, really started to show its effects in the middle of 2008 and into 2009. Around the world stock markets have fallen, large financial institutions have distorted or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

On the other hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current economics models weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns.

A fall in last week's claims for unemployment insurance in the US has led to a share market bounce around Asia which has also pushed the Australian market higher.

Economists are predicting that a further 175,000 Americans were put out of work in October, but this would actually be the best result in more than a year.

If the figures come in on, or better than, expectations then expect the US markets to go up, probably driving a rise in Australia on Monday, but if the figures disappoint it will probably put today's rally into reverse.

Major movers:

World Markets:

The region's other major markets were generally slightly less enthusiastic than Australia, although Hong Kong's Hang Seng index was close.

West Texas crude oil firmed slightly on the global economic optimism, reaching $US80.09 a barrel by 4:45pm, while Tapis (which more directly affects Australian petrol pump prices) also strengthened to $US82.25.
Gold remained strong at $US1,091.68 an ounce.
The Australian dollar also gained ground, as it has been doing on most recent bursts of renewed economic confidence. At 4:45pm it was worth:

As nearly everyone is attentive, there are sobering economic statistics facing our country at the present time. According to the U.S. Bureau of Labor Statistics, the current unemployment rate in the United States is 9.6 percent (August 2009), and the unemployment rate for Native Americans is generally believed to be at least two times the national rate (according to the Harvard Project on American Indian Economic Development). Some sources estimate the figure of Native American unemployment to be as high as eighty or ninety percent in some states.

Thus, in the current untrustworthy state of the American national economy, it is our opportunity as Native Americans to embrace these statistics as an impetus for change. In light of the fact that a lack of capital is often cited as an obstacle in the formation of Native American businesses, the creation of small businesses can be an effective answer.

Small business growth is vital to the reinstatement of our economy, through the creation of local jobs and the stimulation of local economy. And if we consider that within the demographic of the Native American and Alaska Natives we have over two million opportunities for new small businesses, we have the prospect of truly influencing the American economy in an extremely positive way.

"Small and minority-owned businesses must play a momentous role in our efforts to restore economic growth. Small businesses employ half of the nation's private sector workforce; create a large share of the Nation's new jobs; and introduce many groundbreaking ideas into the marketplace," said President Barack Obama in October 2009.

Let us hold tightly to our heritage while we boldly reach for the future, with our inventiveness, innovation, and inspiration to guide us. With peace and perseverance, we as a nation will triumph over these trials, just as we have in the past.

The crisis of 2008-09 is seen as a crisis of capitalism. Self-regulation of financial markets in the United States is condemned and the unwillingness of the market-oriented system to learn from past experiences of a similar kind is stressed. Nowhere though is neo-liberalism defined. Markets are seen to be inherently inefficient, unable to gauge risks, and unable to create effective demand to match growing supply. Unregulated markets in financial assets are unrelated to the real economy and were the root cause of the crisis.

It appears that they would like to see an economic system that is focused on government spending to uplift the poor and not on industrial and finance development. They must welcome the stimulus packages of the United Progressive Alliance government focused on raising rural purchasing power. They do not consider expanding supplies as a necessary element. Nor do they recognize the role of private versus state entrepreneurship in bringing about speedy economic growth and employment.

In recent years, the financial flows have gone far beyond the requirements of the real economy. Many novel financial products were developed that assumed that risks were measurable and that people acted rationally and hence the markets could be managed. The excessive dependence of the U.S. on cheap imports from China, its huge current account and budget deficits, the low interest rates to keep that economy stimulated, and the decline of American domestic savings almost to zero led to overextension of credit for housing, consumer goods, and other items.

The International Monetary Fund (IMF) has revised up its forecast for global gross domestic product. Initially the IMF predicted a 2.6 percent decline for this year, but has now updated its forecast to a slightly better 2.3 percent decline. It predicts growth of 2.3 percent in 2010.

Dougal Crawford, senior economist at government credit agency the Export Finance and Insurance Corporation, believes aggressive public policy in both advanced and developing countries have played a significant part in the recovery. “Clearly, public policy has supported output, limited the collapse in the global financial system and boosted confidence,” he said.
Despite signs of recovery, growth will be restricted by the private sectors in the major industrialized economies repairing their balance sheets and high unemployment.
And although the housing market in the US was steady, “housing activity remains very subdued and any recovery will be constrained by high unemployment, households focusing on rebuilding savings and a large stock of unsold existing homes,” he said.

The key benchmark indices were flat in the early deals in the midst of mixed cues from global markets. The Sensex was up 12 points at 17,208 levels and the Nifty rose 5 points to 5,114.While some buying interest was seen in power and IT stocks, metal counters were under pressure. The BSE metal index fell 2.1 per cent. The power index on the BSE gained 0.5 per cent and the IT index rose 0.7 per cent.

Amongst the Sensex stocks, RCom led the gainers. The stock rose 2.5 per cent. Reliance Infra, TCS and Wipro advanced more than 1 per cent each. Sterlite Ind, however, was the biggest loser in the pack. The stock plunged more than 7 per cent in early trades. In US markets, stocks advanced modestly on Thursday as a jump in the price of oil lifted energy companies and offset weakness in bank shares.

The Dow rose 47.08, or 0.5 percent, to 10,062.94, its highest close since Oct. 8 last year. The broader Standard & Poor's 500 index rose 4.54, or 0.4 percent, to 1,096.56. The Nasdaq composite index rose 1.06, or 0.1 percent, to 2,173.29.Asian markets were trading mixed today. Japan’s Nikkei and Hong Kong’s Hang Seng were trading with marginal gains. South Korea’s Kospi was down 0.3 per cent and China’s Shanghai Composite slid 0.5 per cent.

We come back after a day’s shatter and all is well with global markets. We had a very good move last week which has got us way back above that 5,000 mark yet again. So, we start on the front-foot this morning, no question about that, lots of earnings have come in and they have been good so far and the big question is whether the Nifty can negotiate its way past 5,100 this week on the back of earnings where it has got stuck a few times in the past. 

Last week was surprisingly good, yes; I don’t expect people expected to see suddenly a 300-400 point move on the Sensex. It came on the back of many large cap players. Earnings so far have been pretty okay, there has been no problem with the frontline earnings from the IT and financials. We have had global markets remaining fairly stable as well. So I think we start off on a positive note today after the break and hopefully we will make it past 5,100 this time around.  

On global markets:

People are watching over their shoulders but so far there has been no smash on the global screen at all; the Dow is very close to the 10,000 mark; it’s almost there and I think if it crosses over psychologically that might mean quite a bit for traders out there. The Commodity Research Bureau(CRB) index is trading at two month high despite the fact that base metals have corrected a bit, crude is at USD 74 per bbl, the Volatility Index (VIX) shows no sign of rearing its head; its languishing at 22, so there is no problem that is visible, gold is trading at USD 1,070 per ounce. 

So while everyone is talking about the possibility of the technical correction and that’s purely if not for anything else the fact that the markets have not corrected at all for the last many weeks and months in any significant fashion but that said that’s an expectation, the real screen is actually not betraying anything. We saw little bit of an impasse with global flows over the last few weeks but FIIs covered up their short positions on Monday; 500 crore of Nifty futures buying, they got some money in the cash as well. So from a flows perspective as well things haven’t turned yet, so it seems like the global support is very much there at least yet.      

Will we need money flow for the Nifty to move higher? 

Last week was not surprising because of the two possible triggers, one was the Reliance news or the Ambani news and we saw it reflected in most of the Reliance group stocks; Index of Industrial Production (IIP) numbers were good and expectedly so but even so that might have rubbed off to sentiment and we saw some short covering from the FIIs, so all of that lead the market back to 5,050.

The first few wages have not been too bad so there have been no great disappointments there either. So it appears that the Nifty might head back to 5,100 kinds of levels. Now whether it stalls there once again as it has the last few times or this time since there is some sense of leadership, the market might take that out and head closer to 5,200. I think we will figure that out over the next three-four days particularly as more earnings kick in. 
   

The U.S. tech market projected to recover in fourth quarter of 2009 (Q409), followed by the global tech market improving in 2010. According to the latest Q309 Forrester Research 'U.S. and Global IT Market Outlook,' the Q209 was another down quarter in the U.S. and other markets as expected.

An individual who is financially independent may be more happier since more options are on the table to choose from in order to achieve happiness.

It seems like a nightmare with no end in sight. Dumb Money will hail their fight for survival but ignore the fact that both companies, GM and AIG, should have fallen victim to Economic Darwinism a long time ago. GM should have filed for Chapter 11 last year, while AIG should have been completely wiped off the financial and economic map. A long time ago, those two were considered blue chip global economic giants but have crumbled ever since that bubble busted. Now they are nothing more than a Dumb Money illusion, and they try to hold on to them regardless at what cost and negative economic impact.

GM's only option was bankruptcy but idiotic socialist policies thought it would be nice to waste over $30 Billion before they have to give in and understand that bankruptcy is the only solution for a severely mismanaged, over-employed and debt ridden company on the decline (Experts say GM bankruptcy almost inevitable; AP). GM's new CEO Henderson, who took over after the government ousted former CEO Wagoner in a move way overdone but accomplished with wrong methods, continues to hold on to his hope that GM may avoid a necessary bankruptcy filing which needs to be followed by more heavy job cuts (GM CEO says tasks are large to avoid bankruptcy; AP).

Another possible step after the bankruptcy filing is to leave Detroit, once an auto manufacturer fortress which has since broken down to one of the poorest big cities in the country with plenty of challenges ahead, altogether (GM chief leaves door open to move out of Detroit; AP). Michigan politicians scramble to avoid such a move. In the meantime, six GM executives dumb over 200,000 share into the market in an attempt to at least get a few bucks out of the collapsed automaker (Six GM executives sell more than 200,000 shares; AP). GM dismisses the sales and claims there is no lack of confidence by executives. Sure, and a mutual fund is a professional investment vehicle managed by sophisticated investors. Pathetic!

Chrysler has already filed for Chapter 11 and Fiat picks up what they want. Fiat also offered to snap up all of GM's European assets, most likely during the Chapter 11 filing. Ford, soon to be the only U.S. auto manufacturer left, continues to struggle for survival. Ford has avoided to ensure their total collapse and refused to take socialist money. They rather go down then allow the Obamanites to ruin the company, which makes their survival more likely.

Ford will continue to face tough times over the next few years and needs to accelerate their cuts in operating expenses. Ford has offered 300 Million shares to boost capital (Ford offering 300M shares in public offering; AP). Unless the UAW does not play along, Ford may have to follow Chrysler and GM with a bankruptcy filing sometime next year.

AIG, which has cost taxpayers over $200 Billion due to severe lack of competence and idiotic socialistic agendas, continues to trim down and sell assets (AIG sells Japan headquarters for $1.2 billion; AP). AIG takes their time to get rid of parts of their business and they may finally face reality. AIG should have been gone over six months ago and while they attempt to imitate to operate as a viable business they lose customers as well. It is only a matter of time, and once the second wave of the financial crisis hits, the economy resumes its downtrend and the credit crisis starts to unfold, AIG will not have the strength to continue to follow their illusion and pay the bill for constant mismanagement.

The Septic Tank busted yet again and his warm feces is dripping into Dumb Money's open mouth (Fed boss: Bank exam results should buoy confidence; AP). Of course Bernanke supports his own amateur stress test, you need to eat your own crap before you can spit it into the public. The test was designed to increase battered confidence and has been inflated with optimism as well as ignorance which is the reason it will backfire and further diminish credibility of the Fed.

The irony is that those Dumb Money investors who actually subscribe to the results of the stress test and view it as a sign of stability which in turn increases their own stupidity, are the ones who end up with heavy losses once reality catches up with them. Those who wish to chase an illusion may do so, nobody will stop them but they have to keep in mind that you can't escape reality. The Fed tries to inject confidence with the ignorance of reality, and therefore engages in counter-productive moves which will further deteriorate confidence. Seems like Bank of America took the results serious (Bank of America sells $7.3 billion CCB stake: source; Reuters). A sad, sad story for Bank of America, which will repeat itself over and over again.

It is a welcomed development that other sources provide some insight into the bank balance sheet mystery (KBW analysts see regional banks needing $15B; AP). KBW covers, according to the report, 163 banks of which 71 banks require $15.2 Billion. Give them the benefit of the doubt that this figure is not inflated by false optimism, this would translate to roughly $750 Billion which banks require, two to three times as much once the recession deepens. This figure is a wild estimate and was derived by dividing 8,000 banks (there are more in the country) by 163 (the coverage area of one company which analyzes banks) which translates in 49 such cases where $15.2 Billion will be needed (this assumes an equal proportion of problems across each area of coverage). Again, this is a wild guess but a figure which comes close to reality.

It is sad that, given all the problems present in the financial system; deserved problems as a direct result of ignorance, lack of knowledge and stupidity, more problems are created on purpose. The socialistic hunger for power and control over banks creates more problems for banks (Paying back TARP: Not as easy as writing a check; AP). It can be as easy as a simple transfer back to the Treasury but that would translate into an immediate loss of control for the socialists which acted very quick to create stumbling blocks for those who wish to rid themselves of the socialist parasite. The sales pitch to the masses will be that it is required for those who wish to repay TARP money to meet certain requirements in order to prevent a second crisis, which is pathetic and ignorant since the sheer existence of power and control over banks ensures a second crisis.

Shareholder dilution is not even mentioned by socialists, who could care less about that; at least until they realize that over 100 million citizens saw their pensions melt away during the socialist power trip. The irony is that those who cheer and support the dilution, are those affected the most by heavy financial losses in their own portoflios. Stupidity execute to perfection.

Citigroup is just another example an illusion that TARP had a beneficial impact on them. Citigroup took over $45 Billion in TARP money and made loans to various sources (Citigroup: TARP loans near $45 billion mark; AP). In other words, Citigroup took tax payers money to make loans which was part of the idea behind TARP in a pathetic attempt to keep worthless banks in existence for a few more quarters. Bad loans were part of the reason banks' balance sheets were not balanced anymore and now the same group of mismanagers get more money in order to do the same all over again, another example of ignorance towards the core of the problem. Citigroup could have been ignored altogether in order to make most of those loans but that is a different story, if you don't get the point load up on a few more mutual funds and hope for change.

The price of ignorance goes up as more time is wasted but can you afford to pay the bill once reality asks for it?

The U.S. federal deficit continues to soar (US red ink rising even higher, to$1.8T; AP). This is more than four times the record budget deficit of last year but will be dwarfed by the 2010 budget, which currently stands at $3.6 Trillion. Budget deficits are not expected to dip below $500 Billion per year and over the next decade prediction call for a total deficit of over $7 Trillion. The problem is that those forecasts are based on extremely optimistic economic predictions, such as a GDP contraction of only 1.2% for 2009 and an economic expansion of 3.2% for 2010, and therefore a far shot from actual figures.

GDP contraction will most likely be at least three times as big for 2009 as used in the budget projections and there may be a continued contraction in GDP for 2010. The 2010 budget if filled with counter-productive measures which will only increase the deficit and nothing more. There is an increase of fear in regards to the continued rise in the federal budget, which will cap any potential recovery. There simply is no room for a sustainable economic recovery with deficits. An economy can't borrow itself out of a recession or a depression. The more the economy is pushed with counter-productive measures the more the economy will push back and the downward spiral will only accelerate, with false signs of stability.

In attempt to continue the display of ignorance, arrogance and stupidity, the Obamanites have issued a progress report on the $787 Billion stimulus package (White House updates stimulus progress; CNNMoney.Com). The Obamanite stimulus package, just like TARP, will only stimulate the federal deficit an nothing more. Ultra-short term job creation in one sector of the economy, mainly construction and governemnt, is sacrfifized for long-term economic plans in order to create the illusion of growth and change. A lot of money will be sent to education, since the teachers union one of the biggest Obama supporters. The $787 Billion stimulus, just like the $3.6 Trillion budget, is porked up and will partially pay off for the received votes.

In the meantime, another dead cat bounce initaitve of the Obama administration, more counter-productive moves have been initiated or increased on the housing front (Gov't expands housing plan, off to slow start; AP). In essence, the plan offers support to those who have purchased a home they could not afford with money they did not have. In order to make things worse, those who lend them the money did not have it either, you get the idea.

Since the current hype is to focus on minor issues which are part of the side-effect of larger problems while the core will be ignored until it explodes, the Obamanites push a credit card reform which prohibits rate increases and days notices to customers before legit rate hikes (Obama urges Congress to act on credit card bill; AP). Nice move but equivalent then to pour a bucket of water in the Atlantic in order to raise the overall water level. The Senate pushes the bill (Senate deal reached on bill to impose credit card curbs; CNNMoney.Com).

The credit card crisis will dwarf the 'regular credit crisis' and will have far more negative effects on the economy. Unfortunately the looming credit crisis is ignored just as the current credit crisis has been ignored.

Could it get worse?

Yes we can...

GM plans to chop about 42% of its dealership or 2,600 while Chrysler plans to trim down 27% or 850 dealerships (Dealers Fighting Day Of Reckoning; CNBC). There may be more to come but the NADA begs the socialists for help already. It was an obvious step to shed dealerships when the suppliers collapse. The NADA is not the only one who begs the socialists (US auto suppliers lobby for federal support; AP). As dumb and ignorant as the socialists and the Obamanites are, they slowly run out of means to support idiocy.

The suppliers act like they should produce just for the sake of production and manufacture parts which will never be used. The dealers want to load up showrooms with cars nobody wants to buy. Face reality, the industry will shrink and that means that the total labor force will shrink with it. It was inevitable for years and now reality caught up with the illusion that mismanagement can continue to keep a business afloat forever.

Chrysler initiated a new round of buyout offers at seven of its eight plants which are due to close as part of its bankruptcy proceedings (Chrysler offering buyouts to union workers; Reuters). All 26,000 hourly workers in the U.S. have been offered $50,000 cash and a $25,000 voucher for a new Chrysler car. Those who don't take it, too bad as it may be the best they can get from Chrysler. The irony is that, if they would take the money and decide to be smart with it, they would earn more every month then they currently earn from their job.

Ford has problems as well and walks a fine line between bankruptcy and survival, even though management if very confident that their restructuring plans will work. AT least they are ready to cut more expenses if necessary (Ford profit target on track, to cut more if needed; Reuters). The control of the Ford family may help Ford to make it through this crisis. Ford has the best chance of survival, Chrysler already filed for bankruptcy and sold out to Fiat while GM will file for bankruptcy sooner or sooner. Ford, if they implement a smart startegy, could come up as a huge winner...

The Commerce Department reported a 0.4% drop in retail sales (U.S. retail sales slump for second straight month; Reuters). Dumb Money hoped for a better figure, which is pathetic. The global recession saw China's exports drop (China's exports sink, but factory investment rises; AP). Exports drop but China, at least partially, is able to offset that drop with a domestic increase in factory investment. China benefits from their increase in domestic development and capitalistic approach to business and equity markets.

U.S. exports have collapsed as well, and so have imports but at a slower pace, and the trade deficit continue to accumulate, but at a slower pace. The politically sensitive deficit with China continues to increase. The housing market continues to melt away. Dumb Money sees signs of economic stability but admits that they are at low levels (Trade, housing data more stable, but still weak; AP). Another bubble of hope is created by Dumb Money which will be busted by reality.

More economic problems for the U.S. come from the Treasury, which reported a record fall in tax revenues for the month of April (U.S. posts first April budget deficit since 1983; Reuters). An accounting 'gimmick' has been used to not show the impact of the TARP and other bailouts since the Obamanites don't wish to be faced with high deficit numbers. Whatever it takes to create an illusion which they can try to sell to the public.

China reported an increase in retail sales (China retail sales jump, industrial output slows; AP). Strong domestic demand has given China a cushion while carefully placed government projects provide a further boost to the country. China seems to, at least for now, learn from previous mistakes made by other countries and tries to avoid those. China, for a welcomed change, does not blame the markets but rightfully puts the blame on market participants and their lack of knowledge.