Sallie Mae shares tumble on disclosure

Sallie Mae shares tumble on disclosure

news.yahoo.com

Shares of Sallie Mae tumbled more than 13 percent on Friday as investors reacted to the company's disclosure that it would cut back on its core business of making student loans.
Sallie Mae, the nation's largest student lender, has suffered in recent months from higher borrowing costs and the collapse of a $25 billion buyout. It has slashed its earnings forecast for the year and held a special sale of stock to raise $2.9 billion in cash.

Meanwhile, defaults are rising on student loans, and credit-market tremors similar to those linked to the mortgage crisis have recently started to surface in the $85 billion student-loan market.

(visit the link for the full news article)

Okay lets start tallying up the points...
Jobless 5% (some feel much higher)
Real Estate -Huge mess
Credit- overextended/denied
Inflation
retail sales down (Talbots announced today they are closing up 76 stores)
and now student loans are defaulting with credit-market tremors similar to mortage crisis.
But yet in another thread Bush states the market is strong and solid.
This has been a very bad day and I have a strong feeling it is just the beginning and I am scared.

news.yahoo.com
(visit the link for the full news article)

But don't forget to add to your list the fact that bush said everything was great. Does foxnews say everything is great also? lol

reply to post by SEEWHATUDO


Darn it!!! That's the second time today you beat me to it. I was gonna use the ole "But Bush claims that the market is strong and solid!"

You're right though:
5% Unemployment
Record Foreclosures
Record Credit Defaults
Record Decrease in Available Credit
Record Inflation when Utilizing Pre 9/11 Accounting Standards
Record Decline in the Dollar
Near Record Setting Disruptions in the Market
Consumer Confidence Plummeting
Retail Sales Dropping Like an Arctic Thermometer

I could go on and on and on and on... But why??? Bush DID say that the market was strong and solid! Just like Alfred E. Newman, "What??? Me worry?

reply to post by kozmo


lol, sorry 'bout that
What worries me the most is that he actually had the cahunas to spread the deceptions. Cant wait for that state of the union address...

Really what we need is a thread to dump all of the news about the economy so we can all get a look at the big picture. If so much news can come out in 1 week just imagine what this year will bring.

Bush is good Government is good take your mercury shots

Government loves you government forced healthcar eis good.

Want to keep your health care you will have to take your shots.

no shots no health care

Wow, when i first saw the title to this thread i though 'Disclosure?'. Was I living under a rock today? But, how great would that be if stocks tumbled because of disclosure that aliens exist!?!

Originally posted by SEEWHATUDO

What worries me the most is that he actually had the cahunas to spread the deceptions.

if one looks deeper and rationalizes his statement/
(which is supposed to be taken as the nation's Fiscal Prognosis)
Then one should be able to 'see' that he was speaking of the
ability of the Markets to exchange trade shares & futures options...

he was not refering to any sembalance of trading for guaranteed
skyhigh profits... (read between the lines) is my suggestion

[edit on 4-1-2008 by St Udio]

This the down fall of the result of the mortgage crash, many lenders in this nation has depended on the mortgage to keep their business going.

Many of this lending companies had kept quiet how much they have invested in mortgages and so many of their stock holders had not idea how much their stocks depended on the mortgages.

My daughter has two student loans, she graduated back in may with two bachelors degrees, up to this day she had many interviews but not job offer.

If it wasn't for my husband she will be joining the default growing group of graduate students that can not find a job to pay for their student loans.

We have taken the responsibility of her bills for the time being in an effort to protect her credit while she is trying to join the employment ranks in this very bad and volatile economy.

Right now all she have is a retail part time job making minimum wage at the mall.

The irony.

[edit on 4-1-2008 by marg6043]

ha, i know more people that I can count on my hands that owe Sallie Mae over 100k, and will never, ever, ever pay them. I can only imagine that's but a subset of a larger non-paying demographic.

I have to say, I support all of them! Free education? Now THAT'S a deal.

oh, oh....less student loans, less students....I print stupid banners and pennants for college teams.....
MY JOB!!!

okay, seriously though...

of course they are defaulting! my god, I've got a few coworkers working with me printing the stupid little banners like me, that hey, ya know what we have degrees! they aren't making enough money to actually be paying off their student loans, and there's many more out there that have degrees and are making less!

just one more straw on the camels back, how many will it take before the back is broken?

It looks to me that is a conspiracy to keep our young graduates without a jobs in this nation.

This following article broke my hart as to the callousness of our corporate entities in this nation.

Self-Serving Lies Destroyed the American Dream

Last June, a revealing marketing video from the law firm Cohen & Grigsby appeared on the Internet. The video demonstrated the law firm's techniques for getting around U.S. law governing work visas in order to enable corporate clients to replace their American employees with foreigners who work for less. The law firm's marketing manager, Lawrence Lebowitz, is upfront with interested clients: "Our goal is clearly not to find a qualified and interested U.S. worker."

www.economyincrisis.org...

This is a most read for anybody out there with a degree looking and getting frustrated with lack of jobs in their fields.

Is very sad that is entities and groups in this nation doing their best to make sure that our young American generation do not get their American dream in the land of opportunity.

reply to post by marg6043


I completely agree and it breaks my heart as well Marg but it does raise the question if there are no jobs for college grads what is going on for those that don't even have a degree? What are those 24 year olds doing for work?

It looks to me that is a conspiracy to keep our young graduates without a jobs in this nation.
-----------------------------------------

I don't know if there's a conspiracy to keep our youth (not to mention the rest of us) unemployed, but I think there was a conspiracy involved for the past four or five years to convince these kids (and adults) to go after that degree in the first place. Remember, we are becoming a knowledge based economy so you're gonna need that degree!! Go into debt today!!!
We don't and never did need that many educated fools (sorry if I offended anyone, but that was my mom's favorite reference for the "experts" of the world. ) And, in reality, the main thing that gave the degree extra value was the fact that not many perspective employees had one. We could have all taken that advice, and put ourselves hopelessly into debt and in the end, there still would have been only so many jobs that needed that degree along with many, many that well, didn't. We would have still needed our cashiers, our production workers (we still produce things here), tellers, clerical workers, ect.
But, well, it did produce another pocket of wealthy within the education sector, more and more people who really couldn't afford to pay for this education went for one anyways, so demand went up, so tuition went up, so the loan amounts went up, so the profits of the universities went up, so, the salaries of the top positions went up!!!
The salary went up for those top position because of money that never was, isn't now, and never will be! But it was a nice illusion, at least for some.

I encouraged both my kids not to go after that degree through loans, they are working, they are saving, and well, maybe sometime in the future they will be able to do it a little at a time. But that degree isn't any good, if the debt that you create to get it is gonna increase your cost of living so much that even with a good paying job, you're still living in proverty!
By the way, I have three kids, one's in the navy, the other two have gotten jobs paying over 10 an hour. For one son, it was his first job, for the other, well, he had to work for radio shack for about a year which gave him a little experience and training in customer service, electronics and such, and management training. But, they both have pretty good jobs.
The first time my boss called me into his office to give me a raise, I was stunned (took me a long time to catch onto certain aspect of my job)....he knew I was trying like heck to reach perfection so he really didn't seem to be too concerned about the things I was printing were looking like he knew I knew there was something not quit right. But, well, he seemed completely overjoyed with the fact that hey, I was making it to work everyday!!
I came to work everyday, and didn't waste his money by goofing off all day at work....and for this, I got my first raise!

Alot of kids have come through that place since I've been there, and well, I don't know, they don't seem to have the common sense to know that you should do the work they want you to do, that you shouldn't be flying around the shop on an assortment of drugs, that you can't take every monday off without the boss getting a tad upset with you. I agree, the economy is crap and the good jobs are dwindling, but that just means that you have to outshine the competition to be noticed once you have a job. And, well, I think there's something defective in the younger generation. They're on drugs (perscribed drugs) and acting wacky, and their work ethic is crap. Of course, remembering back, maybe this described my generation also?




[edit on 5-1-2008 by dawnstar]

reply to post by marg6043


Marg, that article by Paul Craig Roberts was a good find, thanks for posting that. I was wondering why college grads were having such a hard time finding work. This is disgusting that anyone would profit off of young people trying to start their lives.
Greed is killing this once great country.

Originally posted by marg6043

Last June, a revealing marketing video from the law firm Cohen & Grigsby appeared on the Internet. The video demonstrated the law firm's techniques for getting around U.S. law governing work visas in order to enable corporate clients to replace their American employees with foreigners who work for less. The law firm's marketing manager, Lawrence Lebowitz, is upfront with interested clients: "Our goal is clearly not to find a qualified and interested U.S. worker."

www.economyincrisis.org...

i'd like to comment on this item, even though it's a verve left from thread topic.

all along the vacation destination of 'the grand strand' = Myrtle Beach SC

for the last several years, hotels and eateries have been hiring groups
of eastern europeans and russians to fill their workforce foir the summer
tourist season.
the state and the state department are working together to issue
temporary work visas (which generally expire in October each year)
so foreigners can work here in the cleaning, maid, waitress trades at
a set price for the business entity.

well, that erases the long tradition where college kids could expect a summer job and do any of the trades i mentioned above...
about all that's left to get in the line of summer-work anymore is a lifeguard position.

all these 'poor' europeans have inundated the normal roadyways with
mechanical bicycles peddling the by-pass no less, at all hours of the night,
the tourist roads are plagued like europe or asia with motor bikes, mopeds, and bicycles...all of which are traffic hazards too.


but my biggest objection is the lack of taditional 'summer jobs' for the American teens and college kids