Items of Interest:
New York Times:
Senate Abandons Auto Bailout Bid — The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats...
Auto Bailout Talks Collapse as Senate Deadlocks Over Wages
David Rogers / The Politico:
McConnell deals major blow to bailout
8 really, really scary predictions -- Dow 4,000. Food shortages. A bubble in Treasury notes. Fortune spoke to eight of the market's sharpest thinkers and what they had to say about the future is frightening...
Dr. Doom: Things are going to be awful for everyday people. U.S. GDP growth is going to be negative through the end of 2009. And the recovery in 2010 and 2011, if there is one, is going to be so weak - with a growth rate of 1% to 1.5% - that it's going to feel like a recession. I see the unemployment rate peaking at around 9% by 2010. The value of homes has already fallen 25%. In my view, home prices are going to fall by another 15% before bottoming out in 2010...
Initial Unemployment Claims Increases Sharply to 573 Thousand -- Dept. of Labor:
In the week ending Dec. 6, the advance figure for seasonally adjusted initial claims was 573,000, an increase of 58,000 from the previous week's revised figure of 515,000. The 4-week moving average was 540,500, an increase of 14,250 from the previous week's revised average of 526,250.
The advance number for seasonally adjusted insured unemployment during the week ending Nov. 29 was 4,429,000, an increase of 338,000 from the preceding week's revised level of 4,091,000.
Foreclosures dip - but hold the applause -- November foreclosure filings dropped 7% from October, but that may be the calm before the storm.
A total of 78,179 families lost their homes during the month, down 8% from October when 84,868 homes were repossessed by lenders. A total of 1,014,618 homes have been lost to foreclosure since the housing crisis hit back in August 2007...
the number of homeowners who fell behind on their mortgages hit a record 6.99% in the third quarter, up from 5.59% a year ago, according to the Mortgage Bankers Association.
Last week, Credit Suisse issued a report forecasting 8.1 million foreclosures by the end of 2012, accounting for 16% of all U.S. mortgages...
- Deflation Says Buy Bonds; Supply Flood Says Sell - M. Gilbert, Bloomberg
- Change Is Coming to the World of Finance - David Wyss, BusinessWeek
- We Need a Bailout Exit Strategy - Christopher Cox, Wall Street Journal
- A Bridge Detroit Needs - Carlos Gutierrez, Washington Post
- Will Labor Get What it Wants From Obama? - Tim Fernholz, Am. Prospect
- A Ruble-Rousing Depreciation - Nouriel Roubini, Forbes
- Charles Schwab: It Will Get Better - Geoff Colvin, Fortune
- Is the Bear Market Finally Over? - Peter Brimelow, MarketWatch
- The Stimulus Cure May Make the Patient Worse - Balcerowicz & Rzonca, FT
- Regulation Could Be Recession's Silver Lining - M. Singletary, WashPost
- Journalists Exude a Depression Lust - Editorial, Investor's Business Daily
- Is the Panic Over Jobs Justified? - Peter Coy, Business Week
- Peak Oil Enthusiasts Wrong Again - Terence Corcoran, National Post
- Street Bonus Season to End All Bonus Seasons - David Pauly, Bloomberg
- Executive Compensation Was Working Just Fine - Roy Smith, Forbes
- Housing Goals We Can't Afford - Howard Husock, New York Times
- Dear Hank & Ben: About That Check... - David Weidner, MarketWatch
- Socialism For the Rich Isn't the Answer - Robert Scheer, The Nation
- Looming Bailout Is Death of the Big Three - John Tamny, RealClearMarkets
- Bankruptcy Doesn't Equal Death - Donald Boudreaux, Wall Street Journal
- Predicting the Trough and a Jobless Recovery - Econbrowser
- T-Bills, and the Meaning of Zero - Jeff Korzenik, (in)efficient frontiers
- Global Trade Is Shrinking, Fast - Brad Setser, Follow The Money
- How The Smart Money Turned Dumb in 2008 - Rick Newman, Flow Chart
- Spending and Tax Multipliers - Greg Mankiw's Blog