Feb. 17: Stocks Fall Hard As Stimulus Signed
Associated Press
Transcript
investors are coming to the realization that government stimulus and bailout programs can only do so much and that the recession may have to run its course the major US index has dropped by well over 3% Tuesday much of the worry during the session was the General Motors and Chrysler might not be able to prove that they can repay billions of dollars in loans and return to profitability the automakers were to detail those plans later in the day news that president Barack Obama signed into law a massive $787 billion stimulus package did little if anything to lift the markets which scrape record lows seen in November I think that basically investors are concerned that because we've broken below the 800 level on the S&P 500 uh below that uh 8805 level that we saw back on inauguration day that the worry is when not only are going to retest the 750 low but establish an even lower low if we however hold up uh then still don't think we should be expecting much of a rally that the market is going to try to engage in what's called Base building uh where you have a trading range of about a 100 points uh over the next several weeks or months uh so that the market can establish some sort of a bottom before it actually starts to try to head higher the Dow Jones Industrial Average ended the session down 298 points to close at 7552 the standard and pores 500 Index also tumbled sheding 38 points to to settle at 798 the NASDAQ meanwhile dropped 47 1471 with major uncertainty still hanging over the market not even better than expected quarterly results from Walmart the world's largest retailer could help boy stocks Mark hamr the Associated Press
Money Minute: Sirius XM, RIM, Oil
Associated Press
Transcript
AP money M facing the threat of bankruptcy SiriusXM Radio is found a savior in Liberty Media which will lend $530 million to the satellite radio provider the moo blocks a bid for control that had been waged by arrival that both companies share Dish Network CEO Charlie urgen the Securities and Exchange Commission has filed civil charges against two top Executives of blackberry maker Research In Motion SEC alleges the execs tappered with stock options to enrich themselves and other workers two former Finance Executives were also charged the executives have agreed to pay more than $1.4 million in fines and give back more than $800,000 in profits to settle the case unsettling news from the automotive and Retail fronts as well as slumping markets from Asia to Europe dragged down oil prices nearly 7% Tuesday light swe crude for March delivery fell $258 to settle at$ 3493 a barrel in New York I'm Mark hamri with ap money minute
Obama Signs Economic Stimulus Into Law
Associated Press
Transcript
President Barack Obama capped off the biggest victory of his month-long Administration Tuesday signing into law the most sweeping economic package in decades today does Mark the beginning of the end the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs the beginning of what we need to do to provide relief for families worried that they won't be able to pay next month's bills Obama signed the $787 billion e ecomic stimulus in Denver away from the nation's capital where the legislation was caught up in partisan infighting the bill pumps money into infrastructure projects Healthcare and renewable energy the short-term goal is job creation the long-term goal is economic viability we have inherited a trillion dollar deficit and we need to begin restoring fiscal discipline and taming our exploding deficits over the long term the bill passed through Congress with virtually no Republican support critics say it's short on tax cuts and may do more harm than good it won't do what the American people expect that it will do and that is create and preserve jobs uh in our country Obama is trying to manage expectations emphasizing that the bill is not a quick fix the road to recovery will not be straight we will make progress and there may be some slippage along the way it will demand courage and discipline will demand a new sense of responsibility despite its massive price tag the President says the stimulus is just one part of his plan to help revive the US economy he'll unveil another part of that plan on Wednesday when he travels to Phoenix to announce steps to help millions of homeowners avoid foreclosure Julie Pace the Associated Press the White House
Automakers Face Deadline
CBS
Transcript
President Obama will sign the economic stimulus bill into law today and its D-Day for The Battered Auto industry CBS News senior White House correspondent Bill plant joins us with more good morning Bill morning Julie the president will be in Denver to sign that huge economic stimulus package which he says will bring 3 million jobs and revive the economy but meanwhile here in Washington two US automakers are facing a deadline General Motors and Chrysler have to show Washington how they plan to repay a combined 13.4 billion in government loans this morning's Wall Street Journal reports that may involve Bankruptcy Court we're anxious to take a look at the plans understanding that it is extremely important uh to have a a strong and viable Auto industry both companies want concessions from the United Auto Workers Union as part of their restructuring the UAW doesn't think a deal will be done in time despite the deadline GM is expected to pick up another $4 billion in bailout funds today and Chrysler will get an additional 3 billion if the carmakers road maps don't impress the government could pull the loans and demand immediate repayment essentially forcing the companies into bankruptcy one of the toughest issues in negotiations with the Union is health care for all of its retirees but if that deal with the Union fails and if the automaker talks fail then that could be a serious setback for the administration's hope hopes to revive the economy [Music] har
Obama Signs Stimulus Plan
CBS
Transcript
the American Recovery and reinvestment act that I will sign today a plan that meets the principles I laid out in January is the most sweeping economic recovery package in our history it's the product of broad consultation and the recipient of broad support from Business Leaders unions public interest groups from the Chamber of Commerce and the National Association of Manufacturers as well as the AFL CIO from Democrats and Republicans Mayors as well as Governors it's a rare thing in Washington for people with such diverse and different viewpoints to come together and support the same bill now what makes this recovery plan so important is not just that it will create or save 3 A5 million jobs over the next two years including 60,000 plus here in Colorado it's that we're putting Americans to work doing the work that America needs done work that will bring real and Lasting change for generations to come because we know we can't build our economic future on the transportation and information networks of the past we are remaking the American landscape with the largest new investment in our nation's infrastructure since Eisenhower built an interstate highway system in the 1950s we're taking the most meaningful steps in years towards modernizing our Healthcare System it's an investment that will take the long overdue step of computerizing ing America's Medical Records to reduce the duplication and waste that costs billions of healthcare dollars and medical errors that cost thousands of lives each year further thanks to the actions we've taken 7 million Americans who lost their Healthcare along the way will continue to get the coverage they need and roughly 20 million more Americans can breath a little easier knowing that their health care won't be cut due to a state budget shortfall it's an investment that will save taxpayers over $1 billion by slashing energy costs in our federal buildings by 25% save Working Families hundreds of dollars a year on their energy bills by weatherizing over 1 million homes and it's an investment that takes the important first step towards a National Transmission Super Highway that will connect our cities to the windy Plains of the dtas and the sunny deserts of the Southwest as important as the step we take today is this legislation represents only the first part of the broad strategy we need to address our economic crisis in the coming days and weeks I'll be launching other aspects of the plan we will need to stabilize repair and reform our banking system and get credit flowing again to families and businesses we will need to end the culture where we ignore problems until they become full-blown crises instead of recognizing that the only way to build a thriving economy is to set and enforce firm rules of the road
Obama Stimulus Breakdown
CBS
Transcript
we are joined by Liz Clayman anchor on the Fox Business Network and host of countdown to the closing bell good morning good morning Harry good to have you here in the studio before we talk about the economic stimulus plan we want to talk about this car bailout more than $17 billion at stake the car makers have had this is GM and chryler not Ford now remember correct and they've had these weeks now to come up with this plan what if if if they fall short what if they come to the government the government says you haven't done enough can you believe they've been up all night negotiating it has come down to the wire and if they are short on this they may have to go bankrupt although it is widely believ that there is no US president cuz President Bush wouldn't do it that would allow the falling of the US Auto industry to be on their shoulders so clearly these companies have done the best they can President Obama has said we need you to make tough concessions that means getting rid of name plates all kinds of Brands cutting dealerships and making tough Union decisions right they there's not going to be a car are we understand but there is a guy named Ron Bloom who really is this very hard Nails tough negotiator what's his sort of standard in terms of how low do you need to go in order to to to to to get this thing done let's put it this way from what we know about Mr Bloom he is a military mind meaning he'd be like a marine sergeant coming into these companies nobody's going to like him he doesn't want to be the friend of the companies or the friend of the unions he's got an incredible history with the United Steel Workers Union he forced them meaning a lot of the union workers to make concessions during very tough times but do these companies want to survive Harry if they do they have to make tough decisions hey you know this is my own personal copy of the economic stimulus Bill I'm not sure if you have one or not do I have to carry this see how much do we broke our printer at Fox Business trying to print this thing exactly there you go this thing goes into action today we made a pie chart to sort of give folks a little bit of an idea of what happens and what's going on and one of the big complaints was there really is enough not enough of this and not enough of this you know what's going to go into bricks and mortars what's going to build bridges that sort of stuff like this but this is sort of the whole whole thing in a nutshell indeed and when you talk about the discretionary spending this is the stimulative part that a lot of people feel there should be more of because this is the building of the bridges the highways the things that would put people to work but aside from the fact that some people complain there isn't enough and there is a ton of complaining here that's me sorry iy hold on to it anymore you're looking at projects that everybody said were supposed to be so-called shovel ready meaning let's start tomorrow they're not many of them take a year or two to kick in and we need to see that a little bit more How likely that very when the not too distant future there is an economic stimulus plan too well there you go and and we already start to hear those rumors but again there are a a growing uh group of people who really feel that you should give it some time right to let it start to take hold but the initial aspect needs to be psychological and if you love uh tarp you might like UL I'm walking away with gifts here it's your own tarp my own tarp thank you har Miss Clayman thanks so much
Business: After the Buyout - NYTimes.com/Video
The New York Times
Transcript
[Music] it almost feels like somebody has decided this is the time for my midlife crisis never expected this in in any uh scenario oh yeah hell yeah it was a huge gamble we were really given um only a couple of weeks to actually make the decision the only advice they gave us was you have to make the best decision for you and your family and that was it in early November Chrysler offered all non-union salaried employees a voluntary buyout as it tried to quickly cut costs and avoid running out of money for those with 10 years or more service Chrysler offered $75,000 and a $25,000 car voucher all taxable Steve and Jim both engineers in the body fabrication Unit were among the 5,000 employees who took the offer and the first Monday you know I got up pretty close to my normal time I came downstairs and did some of the things I would normally do on normal work day but instead of you know changing my clothes and ironing a shirt and getting ready for for work I spent a lot more time doing a lot more of the the job search work despite being highly skilled engineer Engineers with many transferable skills they now face the challenge of finding work in today's economic climate so far there are are jobs available but you know there are also a lot of people that are looking for them so I have have not yet to date had a a offer since both of their spouses work they felt they had about a six-month Financial cushion to find the right job when I saw what was available to me um I talked with my wife and because we've been preparing for a layoff um we had things pretty well in order but is dead oh oh it's here take my rewards card too the biggest concern was to pay for college educations that you know our daughters were involved in I don't have a mortgage I run a house I can move from it without being a big hardship I have a lot of friends who are who are in a situation where you know their houses lost you know in some cases 40% of their value um you know they're they're upside down on their mortgages and they can't walk away with the economic Outlook still Bleak and no job prospects on the horizon both are open to rethinking not only what their careers could be but whether they would relocate with or without their families no I don't want to leave but I'm I'm willing to do it for some period of time if I have to I'm trying to avoid you know the stop Gap job but once again you know if I get to a crisis point you I will go ahead and do that a a stop Gap job would be like going to work at Walmart or Meer Target you know one of the big box uh hardware stores something like that to get money coming in uh although you know it would be for you know a quarter 20% or 25% of what I made at Chrysler but before this happens Jim is first returning to school to get a degree in construction management hopeful that President Obama's stimulus plan will create more construction jobs in Michigan both realize that the industry and the life he created for their families won't be the same again I question myself sometimes is you know the longer it takes to find a job it's like boy maybe I should have stayed but then I I read news articles about that are questioning the viability of Chrysler because of the continuing slump and sales and I say well maybe it was smart to get it while I could