Chicago Workers End Sit-in at Shuttered Factory
Associated Press
Transcript
the sit-in is over at this chicago factory and the signs are being put away the workers at republic windows and doors have reached an agreement with the company's management and two of the creditors bank of america and jp morgan chase that gives the workers the pay and benefits they had been seeking you know right now i am so happy i am i don't have any words right now you know i feel very good about this victory and this money will help in my transition workers took over the factory floor after management gave them just three days notice the plant was closing not 60 days union organizers say is required by law wednesday's deal is valued at about one and three-quarter million dollars total about seven thousand dollars per worker they're gonna get eight weeks of pay eight weeks of health insurance uh and they're gonna get their vacation claims paid uh so we're very very satisfied for nearly a week to sit in had symbolized the plight of today's laid off workers and the employees have received support out on the city streets wednesday night some of the worker supporters came to the factory to join in the celebration people have been coming down all week delivering goods showing solidarity trying to be able to organize on college campuses it's a wonderful moment in chicago i think it sends a very strong message to any company that tries to close without giving notice to its employees who tries to skirt the federal laws that we have around this issue a spokeswoman for bank of america says the bank lent the company 1.35 million dollars and congressman luis gutierrez who helped broker the deal says jpmorgan chase added another four hundred thousand the congressman says none of the money can be used for corporate bonuses luxury cars or any other perk for the owners of the plant brian thomas the associated press
Dec. 11: Stocks Tumble on Auto Bailout Worries
Associated Press
Transcript
wall Street's growing anxiety about the Detroit automakers has punctuated a stretch of relatively subdued trading and sent stocks sharply lower prospects for the $4 billion in loans to cash starve General Motors and Chrysler dimmed Thursday as opposition from both parties mounted this time around it does not appear as if there are enough votes uh certainly from the GOP side in the Senate to pass the auto bailout program investors had plenty of other news to digest during the session applications for jobless benefits Jump by 58,000 to 573 th000 and the nation's trade deficit expanded by 1.1% in October we had the the weekly uh jobless claims figure that actually posted a 26-year high so that put additional pressure on investors nerves worrying that uh the UN unemployment level will sharply move above the 6.7% that we just recently got for November when we get the new ones out in early January the Dow Jones Industrial Average fell 196 points to 8565 the standard and pores 500 Index was down 26 points 874 and the NASDAQ Composite was down 58 points to 158 Thursday's pullback follows mostly moderate moves in stock since mid November is a fresh reminder of investors fears about the economy Mark hamri the Associated Press
Money Minute: Citigroup, Debt, Free Lunch
Associated Press
Transcript
a money minute City group and UBS will buy back close to $30 billion worth of risky auction rate Securities that Regulators say the banks marketed as safe tens of thousands of customers bought into the investments before the $330 billion market for them froze in mid-February SEC says the settlements were the largest return of customer money in the agency's history with loans more and more difficult to obtain households have cut back on their debt levels for the first time on record Federal Reserve says debt levels fell by 8/10 of 1% in the third quarter households net worth fell by 4.7% that marks the four straight quarterly decline in net worth since September 2007 and there is such a thing as a free lunch the national school lunch program fed more than 30 million children in the 20607 school year meanwhile the school nutrition Association says 80% of schools surveyed this year are reporting an increase in the number of lunches served I'm Mark Hamrick with ap money minute
Your Money: Job Losses and Retirement Accounts
Associated Press
Transcript
[Music] unfortunately pink slip notices continue to be handed out and a job losses raises a whole host of financial concerns but what does it mean for your retirement plan some common questions are what happens to my 401k account or my pension plan after I'm laid off well if you're confident in the health of your employer and that it'll be around for some time it's perfectly fine to leave the money in the account until you can create a game plan but ultimately many prefer to roll that money over into an IRA or 401K with their new employer uh this allows them to maintain better control over the account and uh the investment strategies that are offered in the the new plan but if you cash out prior to age 59 and a half be aware that your withdrawal will be subject to taxes in a 10% penalty so this absolutely should be a measure of last res
Barney Frank On Auto Bailout
CBS
Transcript
we're now faced is with all the taxpayers having to prop up companies that made terrible decisions consistently no we're not popping up companies that your mistake we're popping up individuals the world doesn't consist of companies the world are people the country is people and yes it is possible to argue that the government stay out I'm about welfare yeah I'm for welfare you're not are you for letting people starve I've heard someone who described you this way you're liberal on social issues you're a pragmatist on economic issues no I reject the notion that there is your number two different things that's like saying are you more of a cook or are you left-handed I amicable but what I'm rejecting is this liberal here pragmatist there that's like comparing Tuesday to ice cream as a liberal I am morally obligated to be pragmatic what good do i do poor people elderly people people who are being discriminated against because of their sexual orientation if I'm not realistic about accomplishing something
Recession-Proof Products
CBS
Transcript
[Music] While many businesses are struggling to stay afloat during these tough economic times, others are finding themselves in the enviable position of being recessionp proof. Early Show National correspondent Jeff Glor is here to tell us what that means. They're actually doing well. Well, or as recession proof as you can be, Maggie. Yeah, good morning. Uh, for many, the future is uncertain right now. We know about jobs in danger, homes, daily lifestyles. But one thing is much more certain. If you're in the right business, there is less reason to be worried. From the clothes we buy to the toys and gadgets we indulge in to the food we eat. In many ways, this recession has ended the American consumer's once insatiable appetite. People are saying less is more. Less really is more. Now we're seeing shoppers trade down to the least expensive option in a brand. It's plain and simple. Okay, plain and simple means what people need, not what they want. In this environment, you have to look at the food companies. All the stuff basically that you eat at home is doing very well. Spam, spam, spam, bacon, and spam. And other food that flourishes when the economy dives, spam, spam, spam. Workers have been making the product 7 days a week since July. Also on the rise, sales of frozen pot pies up 23% from last year and frozen side dishes like peas up 48%. And with consumers eager to console themselves, the so-called sin stocks, chocolate, cigarettes, and alcohol typically do very well during tough times. Despite all the economic turmoil, people are still buying beer. We have an expression that we say that when you're happy, you drink, and when you're sad, you drink. But either way, you're drinking. Alcohol consumption is up 17% this year. Chocolate up 15, other candy 12. In terms of this recession versus previous ones, though, what are people buying differently? We're very much oriented toward um you know, the plugged in, the wired world. So, cell phones are much more important. People are less likely to cut back on cable, on home entertainment because we're much more oriented toward that. That could explain why sales of video games are up 36% from last year. It's not a huge expense and it brings people a lot of joy. Basically, if it involves staying at home, it appears to be in a much better position this time. Watching TV instead of going to the movies, cooking at home as opposed to eating in a restaurant, staying in town instead of traveling. Maggie, what my wife calls stations. A station. All those little things add up. They do indeed. Absolutely. Thanks. Happy holidays. Thank you. You, too.
Senate May Kill Auto Bailout
CBS
Transcript
on tv channel show forting bolly and dollar resputere makeure has Clear One Hero to down face to the House last Knights car budget 40 health
Congress Moves Closer to Auto Bailout
VOA News
Transcript
the US Auto industry is in crisis General Motors has said it could run out of cash by the end of the year but Senate Republicans are vowing to block the multi-billion dollar rescue plan Senator Richard Shelby is the ranking Republican on the Senate Banking Committee he says the measure does not go far enough in forcing General Motors Chrysler and the Ford Motor Company to reform it doesn't restructure these companies it doesn't make them competitive in any way it doesn't make them survive this postpone own the inevitable the Bush Administration says it mostly agrees with the concept of the bill the proposal would make billions of dollars in government loans available to General Motors and Chrysler Ford motor would not immediately receive a loan but would eventually have access to government credit a presidential appointee will monitor the company's progress the official will be able to revoke the loans and force the companies to declare bankruptcy if they fail to submit credible plans on restructuring White House Deputy Chief of Staff Joel C it's it's not something you would want to do uh in normal times um and it's not something you would normally do with another uh company or industry uh we're in a uh very challenging Economic Times the White House says President Bush plans to speak with Republican lawmakers to win their support for the bill if passed us automakers have until the end of March to submit a long-term restructuring plan Shan morone vaa news
Global Slump Hits Developing Countries
VOA News
Transcript
the financial crisis that has roiled markets in rich countries is now hitting developing countries hard banks are at risk many currencies are weak and foreign investments are down World Bank analyst Hans Timmer says countries that performed strongly last year are seeing record declines our forecast is for 4 and a half% growth in the developing world that still steams high but it is more than 3 percentage Point lower than only in 2007 and that is one of the sharpest declines in uh in grows on record the decline is blamed on weaker demand from developed countries that has resulted in a slump in global trade the first in 25 years less trade means losses in manufacturing and Export markets which in turn have led to Growing unemployment slower grows means slower income growth also for everybody in the developing countries including uh the poor uh and higher rate of of unemployment in in developing countries that means that the benefits that we have seen over the last five six years with record grow in developing countries uh will uh will be on hold for uh for a short period of time the report says developing countries in subsaharan Africa will enjoy faster economic expansion than most industrialized countries next year but many countries in Africa and East Asia will face difficulties raising money as credit tightens Around the World Bank Economist Andrew Burns says countries that rely on profits from oil and metals will Faire better the positive story there is is that we observe when we observe what uh countries uh commodity exporting countries have done over the last 20 years they've been much more prudent uh in terms of the management of the windfall revenues that they've received as compared with the 1990s or the 1980s although the recent decline in oil prices has resulted in lower energy and food costs burn says poor countries will need help from rich countries to survive the economic Fallout the world bank has not ruled out the possibility of a global recession but the report says the worst should be over by 2010 mil arga VA news
Are Modified Loans Helping?
CBS
Transcript
to different departments when construction worker craig gray fell behind on his mortgage payments like many he looked for help from his lender chase bank did modify his loan but the monthly payments skyrocketed chase cut his interest rate from more than eight percent to six and a quarter but in adjusting the loan to a 30-year fixed rate and adding in his missed payments his monthly bill actually jumped about 250 dollars hey i am now with a higher mortgage gray has plenty of company a new government study found that during the first half of the year more than a third of borrowers with modified loans had defaulted again after just three months even more alarming after six months more than half the borrowers were behind in their payments again what these numbers do for the first time is say whatever they're doing it doesn't seem to be working as well as anyone would hope they put people in mortgages that were structured to fail they're putting them into solutions that are structured to fail bruce marks heads the neighborhood assistance corporation of america the community group that recently dumped furniture on the front lawn of mortgage giant fannie mae this is the bankruptcy department can i help you mark says lenders need to adjust interest rates and reduce principal to what borrowers can really afford to pay otherwise the delinquency problem just continues and it will get massive it will continue and get much much worse mark's group is trying to help borrowers like craig gray who fears the worst losing my home but the country's still losing ground in the battle to keep homeowners out of foreclosure anthony mason cbs news new york
Jobless claims jump to 573K, 26-year high; Dow falls 200
CBS
Transcript
the economy keeps bleeding jobs the labor department reports the number of people applying for unemployment benefits jumped to 573 th000 last week that's a 26-year high that dismal employment news put pressure on stocks and the DOW Industrials fell nearly 200 points the NASDAQ Composite slid about 57 instead of shopping more Americans are paying off their loans household debt levels have dropped for the first time in over 50 years and fewer people lost their homes to foreclosure in November down 7% to a 5-month low but according to realy track foreclosures are still up 28% from a year ago it expects a big spike in January as companies continue to slash jobs and it just got cheaper to finance a home the rate on a 30-year mortgage is at a 4 and a half year low this week at 5.57% but with unemployment Rising experts say not even low mortgage rates are expected to turn the housing market around and it will be a few more months before Boeing's Dreamliner makes its first flight the Aerospace giant had hoped to have the 787 in the air before the end of the year a recent machinist strike and production glitches have pushed back that launch date to next summer Boeing won't deliver that jet until early 2010 that's your money watch track the latest business headlines at cbsnews.com at the New York Stock Exchange I'm Alexis christopherus now
The Global Economic Impact
CBS
Transcript
the reluctance of Americans to spend during this holiday season is creating an economic ripple effect all across the globe from the U.S to Asia and into Europe we have three reports tonight beginning with John Blackstone in San Francisco in toy stores tis the season to lure Shoppers with big Bargains I see a lot of things that are on clearance that I know if they weren't I wouldn't be able to afford it the way the economy is right now retailers have long considered Christmas toy sales Recession Proof this is maybe what is on sale go price that please but now many consumers like Julie Gallagher are watching their spending last year was a big year this year we're definitely cutting back last year with worries about toys from China contaminated with high levels of lead consumers cut spending on toys by five percent and toy store sales dropped by 600 million dollars this year it's the economy bringing worries and one recent survey found 36 percent of consumers intend to spend less on toys still kids may do better than others on the gift list spending a little less on my wife and spending an app but uh you know your kids you can't cut your kids too much can you in a world economy so interconnected all those decisions made in America's toy stores are sending out ripples that have consequences around the world John Blackstone CBS News San this is stealing a Hatton in dongwan southern China with those consequences are being felt in the real Santa's Workshop which once produced 80 percent of the world's toys if sales drop an America that directly impacts our company Frets this Factory manager manufacturers struggled after last year's toxic toy recalls and economic Gloom in the U.S means more orders are being canceled the result over half the Region's toy makers have closed an estimated 2.7 million workers will lose their jobs the toy industry isn't the only sector facing tough times in southern China fewer toys manufactured means fewer boxes are needed to pack them in so cardboard companies are taking a big hit too in This Global recession China was once the world's biggest buyer of waste paper making items from children's books to fancy gift boxes now it's downsizing orders from recycling centers in the west our customers aren't sure if the future explains this packaging company CEO we're waiting before purchasing supplies so uncertainty rains this December China's lost its appetite for raw materials and the hunger pangs can be felt around the world Delia Hutton CBS News Don Juan Southern China this is Richard Roth in England where China's demand for paper helped make recycling a profitable business almost half the 9 million tons of waste paper and cardboard collected here each year is exported to China and the Far East they don't call this trash it's a commodity but now it's losing value with every cardboard box the Chinese no longer need to make a year ago they were selling a one-ton bale of this British cardboard to China for the equivalent of 144 dollars now it's dropped to just 22.50 which the British say is hardly enough to cover the cost of collecting sorting and bailing the stuff it's happened before weather's been a depression but not uh not as strongly as this not as quickly as this and I feel it's not going to be as prolonged as this and if it's not worth selling paper recyclers Say it'll have to be stored or buried in landfill where another price will be paid in damage to the environment Richard Roth CBS News Shropshire England
Still No Bailout For Detroit
CBS News
Transcript
today's stalemate in Congress was met with urgent pleas from the Bush Administration and president-elect Obama we cannot simply stand by and watch this industry collapse doing so would lead to a devastating ripple effect throughout our economy in a late night session the house passed a short-term bailout of 14 billion dollars but they reached to a virtual halt in the Senate today where the plan needs 60 votes out of 99 to pass here's the problem too many Republicans oppose it that includes the top Republican on the Senate Banking Committee Richard Shelby is the White House proposal is passed by the house for all intents and purposes dead I hope it's dead and I'd like to bury it and go on to the next item the Senate's top Democrat Harry Reid pointed out once again time is short we have danced this to this tune if the Republicans have an alternative let them offer that we could be very easy to do Republican Bob Corker took the challenge and proposed toughening up the bailout with strict requirements that automakers reduce their debt or be forced into bankruptcy he's been negotiating with the Auto Workers Union for their support but even then the question is would it have enough votes to pass I'm fundamentally opposed to any bailout because I believe at the end of the day if there's not fundamental change these companies will never be competitive negotiations are still going on so either the whole idea dies here by tomorrow or the Senate passes something that's different than the house version meaning Katie it has to go back to the house for approval and meanwhile Cheryl GM says it will go bankrupt by the end of December so if Congress doesn't act pretty quickly is it all over are there any other options well it would be left in the hands of the Bush Administration which has repeatedly said it does not plan to use any of those 700 billion dollars in bailout funds for the Auto industry today we ask the treasury Department whether there was a plan B they said they didn't know of any and the White House won't talk about one Katie Cheryl Atkinson as always Cheryl thanks so much