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Originally posted by burntheships
reply to post by GreenBicMan
This chart might better suit you? Not all companies that fail will be acquired.
[edit on 23-4-2009 by burntheships]
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke will provide Congress with a fresh assessment of the country's fragile economic health that probably will note some recent improvements, but still warn that it will take time -- perhaps years -- for the economy to get back to normal.
At the same time, Bernanke is likely to face tough questions by lawmakers at a hearing Tuesday before Congress' Joint Economic Committee about the Fed's multitrillion-dollar efforts to bust through credit clogs and get banks lending more freely again to people and businesses.
Originally posted by audas
Can someone answer me this PLEASE :
How is it that major auto manufacturers are falling like flies, banks are falling, GDP is falling, EU forecast is for prolonged deep recession, newspapers are folding, and businesses all over the country are simply dropping like flies, consumer spending and confidence is about as low as it can go, corporate real esate is falling off a cliff, there is literally not a SINGLE POSITIVE FIGURE OUT THERE and yet the DOW is going through the roof ?
Does this have anything to do with huge amounts of cash being injected into the economy and having nowhere else to go ? And if this is so - then this could well be the one thing that completely breaks the economy as the money being speculated into the market will simply evaporate........
I really have a strong feeling that these.. moth-balled automobile factories.. may become.. part of a much larger.. military industrial.. complex?
Ammo hard to find as gun owners stock up
Gun shops across the country are reporting a run on ammunition, a phenomenon apparently driven by fear that the Obama administration will increase taxes on bullets or enact new gun-control measures.
While campaigning for the White House, Obama supported re-enacting the now-expired ban on assault weapons. But there is no indication that the administration will take up that measure -- or any other gun-control initiative --anytime soon.
"People are buying cases or whatever they can get their hands on and putting it away, absolutely," he says. "The only way that this shortage can have to do with it is that people are buying and hoarding."
"I'm not too worried about things being banned or anything like that," he says. But he notes that many of his fellow gun enthusiasts are scared: "There's definitely a lot of fear."
"The increase in demand for firearms and ammunition is largely attributable to gun owner concerns regarding the current political climate," says Novin, referring to the Obama administration and the Democrat-controlled Congress.
"Here at Hornady Manufacturing we are breaking our own production records in an attempt to keep up with customer demand. We have added extra shifts, machinery and we are also in the process of expanding our manufacturing plant."
"I have three or four boxes of 9 mm left at home and a couple of boxes of .45," he says. "I'm just buying as much as I can whenever I can."
WASHINGTON (Reuters) - Bank of America has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday.
A Bank of America spokesman declined comment. The amount is far higher than published reports had speculated the largest bank might need. It is certain to increase the pressure on Chief Executive Kenneth Lewis, whom shareholders ousted as chairman last week.
DETROIT (Reuters) - General Motors Corp on Tuesday detailed plans to all but wipe out the holdings of remaining shareholders by issuing up to 60 billion new shares in a bid to pay off debt to the U.S. government, bondholders and the United Auto Workers union.
The unusual plan, which was detailed in a filing with U.S. securities regulators, would only need the approval of the U.S. Treasury to proceed since the U.S. government would be the majority shareholder of a new GM, the company said.
Some investors in 401(k) retirement funds who are moving to grab their money are finding they can't.
Even with recent gains in stocks such as Monday's, the months of market turmoil have delivered a blow to some 401(k) participants: freezing their investments in certain plans. In some cases, individual investors can't withdraw money from certain retirement-plan options. In other cases, employers are having trouble getting rid of risky investments in 401(k) plans.
The effect of this as disclosed would be that the existing common shareholders would have their holdings reduced in value to one percent of their current market value.
So as of 4:00 Eastern today, your $1.85 stock price would be.... drum roll please..... $0.0185 per share.
There is a lot of other material in this filing related to the restructuring of the debt. The exchange offers appear to have gone from 2/3rds reduction in the outstanding debt to a ninety percent reduction, effectively paying debtholders no more than a dime on the dollar.
In a filing today with the SEC, GM announced that it would issue 60 billion new shares, in order to "pay off" debts to the government, its bondholders and the UAW. And since the government would end up being the majority owner, only the approval of the US Treasury would be needed (talk about a gating factor).
As a result of the flood of new shares, existing shareholders, much as previously expected, would end up owning 1% of the pro forma equity, and assuming straight mathematic dilution, the shares which closed at $1.85 would be worth a little over 1 cent.
Specifically, the actions contemplated by the filing are as follows:
* Increase the number of authorized shares of GM common stock to 62 billion shares;
* Reduce the par value of GM common stock from $1 2/3 per share to $0.01 per share; and
* Effect a 1-for-100 reverse stock split of GM common stock, whereby each 100 shares of GM common stock registered in the name of a stockholder at the effective time of the reverse stock split will be converted into one share of GM common stock.
So much for all mom and pops who bought GM stock today hoping the rolling squeezes would raise it to $10/share before it crumbled to 0... well, actually that may very well happen: no clue yet how "liquidity providers" decided to spin this from a megasqueeze point of view.
Originally posted by stander
Big Ben will be ringing tomorrow . . .
. . .We will see what the market makes out of it.
Fed Chairman Bernanke stated in his testimony before the Joint Economic Committee that recent data suggest that the pace of contraction may be slowing, and that economic activity is expected to bottom out, then to turn up later this year.
Stocks did see a brief flurry of buying as the Bernanke's comments and the ISM data hit news wires, but enthusiasm faded and sellers reclaimed control over the session.
Bank of America has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday.
The amount is far higher than published reports had speculated the largest bank might need. It is certain to increase the pressure on Chief Executive Kenneth Lewis, whom shareholders ousted as chairman last week.