December 30, 2008

the S&P 500 rose 2.4% to close at 891

2 news clips from this day

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Madoff's Long List Of Losers

CBS

Transcript

we want to get that out because of Bernie made off Deborah Colton is out of a job and a 401K retirement account but for her what's most devastating is the impact on others it is extremely tough for me to believe it and for the community to believe it we've been in a state of disbelief the $8 million Charity she was running was wiped out the worst part about the mess made off Left Behind groups that were helping the most got hurt the most philanth IC organizations have lost a staggering $2.5 billion so far there's a reason why they became such easy prey one the Charities gave made off credibility after all who would cheat a charity two it's the way they're set up if you're running a Ponzi scheme you would want Charities and Foundations as your investors because you can count on them to have slow stable withdraws mid off was promising slow steady consistent growth roughly 10% actly the kind of returns that foundations especially are looking for why well because by federal law foundations are required to spend 5% of their funds each year they can spend more but most don't with no unforeseen expenses no expectations of huge profits and no unpredictable withdrawals they might have been the perfect Target for Bernie maid off you would want both large investors coming in and stable investors who are not going to have large outflows of cash the ultimate victim are those Americans who rely on the services of our not for-profit sector to feed their kids to educate their families um and to create more vibrant communities and that money is not coming back that money is never coming back you have a box yeah of letters Deborah Colton is hoping to salvage one program with private donations what she doesn't know is whether anyone getting these letters might also been a client of Bernie maid off Jeff glore CBS News New York

Consumer confidence hits record low; GMAC gets $5B bailout

CBS News

Transcript

consumer confidence is at an all-time low and analysts predict things will only get worse for retailers next year one consulting group believes 200 000 stores could close in 2009 and thousands of malls may have to shut down because of a huge drop in consumer spending several big names are underperforming including ann taylor talbots and sears other companies like circuit city and kb toys have already filed for bankruptcy it looks like the loan company connected to general motors is going to avoid bankruptcy gmac is getting a 5 billion bailout from the treasury department the company says it will now make loans more available to people who want to buy a car news of the gmac bailout helped stocks move higher today the dow shot up 184 points the nasdaq has gained 40 points home prices have fallen by the largest amount on record a look at 20 city shows prices have plunged 18 percent since last year analysts believe the housing market is going to get worse before it gets better in new york i'm katherine brown