Bad news
Madoff should get life (in hell).
It seems the old man is going to be sentenced to life in prison (what is the point?) when he pleads guilty to securities fraud, wire fraud, mail fraud and money laundering tomorrow. When he is found guilty he will be most likely sent to a white collared state penitentiary, where there will be no locks on the doors (something similar to what he has at the moment in his house arrest) at his $7m dollar pent house.
Where is the punishment? This man should be made to dig holes in the Sahara desert for the rest of his life, rather than sit in a cushy prison. He should not have any luxuries what so ever.
Here are a list of the crimes he will be prosecuted for:
SECURITIES FRAUD (1 COUNT) Alleges Madoff ran a Ponzi scheme out of his investment firm for more than 25 years. Penalty: 20 years
INVESTMENT ADVISER FRAUD (1 COUNT) Alleges that as investment adviser, Madoff defrauded his clients for more than 25 years. Penalty: 5 years
MAIL FRAUD (1 COUNT) Alleges that Madoff used the mail to perpetrate his fraud. Penalty: 20 years
WIRE FRAUD (1 COUNT) Alleges that Madoff used wire communication such as the telephone, faxes and computers to carry out his fraud. Penalty: 20 years.
INTERNATIONAL MONEY LAUNDERING (1 COUNT) Alleges that Madoff transferred funds from his business in New York to his offices in London and back again to carry out a fraud. Penalty: 20 years
INTERNATIONAL MONEY LAUNDERING (1 COUNT) Alleges Madoff transferred funds back and forth to Europe to disguise their nature as proceeds of a crime. Penalty: 20 years
MONEY LAUNDERING (1 COUNT) Alleges that Madoff diverted more than $54 million from an employee benefit fund. Penalty: 10 years.
FALSE STATEMENTS (1 COUNT) Alleges that Madoff gave false statements to the Securities and Exchange Commission. Penalty: 5 years
PERJURY (1 COUNT) Alleges that Madoff gave false testimony to the SEC under oath in 2006. Penalty: 5 years.
FALSE FILING (1 COUNT) Alleges that Madoff filed false documents with the SEC in 2007. Penalty: 20 years
THEFT FROM AN EMPLOYEE BENEFIT PLAN (1 COUNT) Alleges that Madoff stole $10 million in funds from pension plans of 35 labor unions. Penalty: 5 years.
Fred Goodwin is a Crunch Victim.
Matt Roper of the Mirror.co.uk has done an interesting article today on two people with the same name who have lost their jobs recently. We know the one as Sir Fred Goodwin “the shred” (the boss of RBS who brought the Royal Bank of Scotland to its knees with record losses of £24billion) and the other is just a normal guy called Fred Goodwin who is an innocent victim of the economic crisis engulfing the country.
Sir Fred draws a massive £13000-a-week pension, his namesake struggles to get by on a £60.50 weekly jobseekers’ allowance.
The 56-year-old dad-of-two reckons the greedy banker should hand back some of his windfall, paid for by taxpayers after the Government’s bail-out of the bank.
Fred said:
He should see what life’s really like for ordinary people who are suffering because of what he did. He wouldn’t even last a minute.
The ironic thing is I’ve never been sacked for doing a bad job. Yet he gets paid off with the kind of money I could only dream of, while I could end up losing everything.I’ve thought a lot about what I would do if I was in his shoes, but although I’d be tempted to take the money and stuff everyone else, I honestly don’t think I’d be able to do it and still live with myself. Not after inflicting so much pain on so many people.
Maybe if Sir Fred came and lived with me for a week he’d think again about it too.
Personally I think sir Fred Goodwin should:
- Lose his title as he certainly does not deserve to be a “Sir”.
- Hand back all the bonuses, incentives he has received in the past.
- Waiver his pension since he has made enough money off RBS over the years.
- Go to jail – do not pass this problem onto the tax payer, do not collect a massive pension.
Unemployment to soar in the UK to over 3 million.
Nothing like a bit of bad news to get back into the swing of things. 
According to Sky News unemployment in the UK is going to soar to over 3 million next year. Strangely enough all the economists were predicting a smooth ride just a few months ago, but that has all changed now.
UK prospects have worsened significantly since our last forecast in January. We are now predicting much larger UK GDP declines. Consequently, we now expect bigger unemployment increases and larger budget deficits. Unless the huge falls in UK capital investment are halted and reversed, the UK’s productive potential will be seriously weakened.
What gets me, is these economists are meant to know what they are talking about, so back in January when they did their initial forecast, surely they could see then that businesses and life in general was going to get a lot worse before it got better. Not that it would have changed anything, but still, it would save them looking silly now. It doesn’t take a degree to see things are bad.
Puerto Rico to lay off 30000 public sector workers.
Amid one of the worst economic crises in history, Puerto Rico’s governor recently announced plans to eliminate 30000 public sector jobs.
Total losses = 30000
House prices fall by 26.7 percent in the US.
The S&P/Case-Shiller composite index of 20 metropolitan areas tumbled to 18.2% in the last quarter from a year earlier. This is the largest drop since the series began 21 years ago. At it’s peak in 2006, home prices have plummeted 26.7 percent.
Recession Risk – Peter Schiff Was Right 2006 – 2007.
I stumbled upon this interesting video. This is a set of clips of Peter Schiff from 2006 and 2007. Here he tells the media what he thinks will happen in 2008 and the future in terms of a recession and the risk of major losses.There are two idiots (Arthur Laffer and Charles Payne) arguing against him. It’s actually quite funny listening to these numpties. They even joke and laugh at Peter Schiff, but he is spot on with his predictions. Definitely worth a watch.
I guess the question we should be asking is where is Arthur Laffer and Charles Payne today? I bet they are not advising people on their finances or being interviewed on TV.
Companies that went into administration week ending 14/02/2009.
- Hughmark International, which runs the High Wycombe’s market has gone into administration.
- The company responsible for managing the ill-fated gallery space in Will Alsop’s The Public has ceased trading and gone into administration. All 32 of the company’s staff have been made redundant, with Baker Tilly appointed as administrator.
- Stylo joins its shoe businesses into administration. The owner of the PriceLess and Barratt shoe chains, Stylo Plc, has gone into administration after being unable to reach agreements with creditors and landlords.Stylo will join Priceless and Barratts in administration after landlords and creditors rejected a Company Voluntary Arrangement (CVA), which would have enabled Stylo to restructure its debt, and close 150 of its 400 stores.
- Black Country manufacturer Jebron and its sister company Jebron Plating have gone into administration. Administrators James Martin and John Lowe of business recovery specialists Begbies Traynor said the move was necessary to secure the future of the two businesses, which are based in Kings Hill, Wednesbury.
- Quality Resorts Hotels has gone into administration, according to press reports from Commercial Court 1 de Santa Cruz de Tenerife. The company based in Adeje, has declared itself in a situation of voluntary liquidation for debts with the company Incesa, but the legal declaration is a call to all creditors to make their claims.
The Klaus Kneale Pink-Slip List (P-SL) for January 2009.
The following Pink-Slip List (P-SL) was compiled by Klaus Kneale.
Job losses = 165,662
Jan. 30: Sears Holdings (nasdaq: SHLD) dismisses 300 corporate employees as consumer spending slumps.
Jan. 29: Broadcom (nasdaq: BRCM) cuts about 3% of workforce (200 workers) and tightens discretionary spending.
Jan. 29: International Game Technology (nyse: IGT) cuts 200 from its manufacturing sector.
Jan. 30: Caterpillar (nyse: CAT) increases previous layoffs from 20000 to 22110, and share price hits 52-week low.
Jan. 29: Eastman Kodak (nyse: EK) took a $137 million Q4 loss and will cut up to 4500 jobs, up to 18% of workforce.
Jan. 29: Textron (nyse: TXT) subsidiary Cessna Aircraft will increase layoffs from 2600 to 4600, to be completed by April.
Jan. 29: Ford’s (nyse: F) credit subsidiary cuts 1200 jobs, about 20% of its workforce.
Jan. 29: Black & Decker (nyse: BDK) will eliminate 1200 jobs as power tool sales decline and Q4 earnings plunge.
Jan. 29: ESPN, part of the Walt Disney Co. (nyse: DIS), (nyse: DIS) will cut 200 jobs and Disney-ABC Television Group will release 400 to cope with weak economy.
Jan. 28: Boeing (nyse: BA) increases previously announced layoffs–bringing total to 10000 workers, or 6% of the company’s workforce.
Jan. 28: Starbucks (nasdaq: SBUX) organizes closings at 900 stores worldwide and fires 6700 in the process.
Jan. 28: Target (nyse: TGT) cuts 400 open positions and 600 employees on sagging sales.
Jan. 27: Time Warner’s (nyse: TWX) AOL reduces workforce by 10% (700 workers) as it fights declining ad revenue.
Jan. 27: Cabinet company Merillat–a subsidiary of Masco (nyse: MAS)–cuts 20% of workforce (70 workers).
Jan. 26: Texas Instruments (nyse: TXN) pink-slips 3400 (12% of workforce).
Jan. 26: IBM (nyse: IBM) selects 4000 to participate in its “current resource reduction action.â€
Jan. 26: Lincoln National (nyse: LNC) posts five quarterly declines in profit; cuts 540 (5% of workforce).
Jan. 26: Caterpillar (nyse: CAT) announces quarterly profit plunge of 32%; fires 20000.
Jan. 26: Following the acquisition of the small drug outfit Wyeth for $68 billion, Pfizer (nyse: PFE) closes five factories and cuts 15% of total workforce (19000 workers).
Jan. 26: Sprint Nextel (nyse: S) pink-slips 8000 workers–recording more than $300 million in severance charges but saving $1.2 billion a year in labor costs.
Jan. 26: Home Depot (nyse: HD) closes high-end home design shops and slims ranks at headquarters; dismisses 7000.
Jan. 26: General Motors (nyse: GM) cuts production at several plants and fires 2000 in Michigan and Ohio.
Jan. 23: Brazil-based Deere & Company (nyse: DE) subsidiary lays off 502 employees.
Jan. 23: Abercrombie & Fitch (nyse: ANF) cuts 50 from headquarters as company leans expenses.
Jan. 23: Harley-Davidson (nyse: HOG) sees 60% drop in profits in fourth quarter of 2008; fires 1100 (10% of workforce).
Jan. 22: Microsoft (nasdaq: MSFT) has first mass layoff in 34-year history; pink slips 5000.
Jan. 22: Huntsman (nyse: HUN) reduces workforce by 9%; cutting 1175 regular workers and 490 full-time contractors.
Jan. 21: Burlington Santa Fe cuts 2500 workers (5% of workforce) despite a 19% jump in earnings during the fourth quarter.
Jan. 21: UAL (nasdaq: UAUA) fires 1000 to cut overhead costs.
Jan. 21: SPX (nyse: SPW) attempts to sell a business unit and cuts 400 employees to help endure the downturn.
Jan. 21: Intel (nasdaq: INTC) closes five manufacturing plants and pink slips 5000.
Jan. 21: Walt Disney (nyse: DIS) offers voluntary buyouts to 600 theme park executives on poor attendance.
Jan. 21: Wynn Resorts wraps up construction on Las Vegas Strip casino with 53-worker layoff in design and construction affiliate.
Jan. 21: Eaton (nyse: ETN) brings total workforce reduction since the beginning of last year to 10% with 5200-worker cut.
Jan. 21: Warner Bros. Entertainment–a part of Time Warner (nyse: TWX)–cuts 10% (800) of its jobs.
Jan. 20: Clear Channel Communications (nyse: CCU) reduces workforce across the entire company by 9% accounting for 1,850 job losses.
Jan. 20: Deere & Co. (nyse: DE) dismisses 120 at Iowa plant.
Jan. 16: ConocoPhillips (nyse: COP) trims capital spending by 18%, writes off $34 billion and reduces workforce by 4% (1300 jobs).
Jan. 16: Hertz Global Holdings (nyse: HTZ) sets out for worldwide restructuring in first quarter of 2009; cuts 4000 jobs.
Jan. 16: WellPoint (nyse: WLP) reduces workforce by 600 and removes 900 open positions.
Jan. 16: Advanced Micro Devices (nyse: AMD) reduces global workforce by 9% (1100 jobs).
Jan. 15: Xerox (nyse: XRX) cuts 275 jobs in New York region.
Jan. 15: MeadWestvaco (nyse: MWV) fires 2000 and plans closings or restructurings at up to 14 plants.
Jan. 15: Autodesk (nasdaq: ADSK) expects loss from 2008 fourth quarter; pink-slips 750 (10% of workforce).
Jan. 15: Marshall & Ilsley (nyse: MI) cuts 8% of staff (830) in ongoing cost-cutting.
Jan. 15: General Electric (nyse: GE) news) people )’s (nyse: GE) jet-engine group cuts 1000 white-collar jobs.
Jan. 14: Ecolab (nyse: ECL) restructures and reduces workforce by 4% (1000 jobs).
Jan. 14: Delta Air Lines (nyse: DAL) gives 2000 early retirements as part of 8% capacity reduction.
Jan. 14: Motorola (nyse: MOT) lays off 4000 following a 3000-worker layoff last year; expects savings of $700 million a year.
Jan. 14: Google (nasdaq: GOOG) fires 100 hirers as it cuts back on contract workers and temporary employees.
Jan. 13: Cummins (nyse: CMI) freezes salaries for the rest of the year and lets 800 go.
Jan. 13: Pfizer (nyse: PFE) cuts 800 researchers as it lowers cost in the face of poor performance and coming patent losses.
Jan. 12: Mosaic (nyse: MOS) fires 1000 in Saskatchewan.
Jan. 12: Aircraft maker and Textron (nyse: TXT) subsidiary Cessna sends 2000 packing.
Jan. 12: Best Buy (nyse: BBY) clears 12.5% of its headquarters staff with 500-employee layoff.
Jan. 12: Precision Castparts (nyse: PCP) dismisses 40 as airline industry continues to struggle.
Jan. 9: Oracle (nasdaq: ORCL) reportedly cuts 500 from U.S. sales and consulting businesses.
Jan. 9: Boeing (nyse: BA) cuts 4500 and returns workforce size to what it was in early 2008.
Jan. 9: Freeport-McMoRan (nyse: FCX) slices workforce in half at Arizona mine; 1550 workers let go.
Jan. 9: Smitfield Foods’ (nyse: SFD) Butterball–the nation’s largest turkey company–fires 75 at Missouri plant.
Jan. 8: Union Pacific (nyse: UNP) pink-slips 230 as company struggles; stock down 22% year-to-date.
Jan. 8: Navy shipbuilder Bath Iron Works–owned by General Dynamics (nyse: GD)–dismisses 179.
Jan. 8: Continuing companywide job cuts at Eaton (nyse: ETN) hit Iowa, with 78 laid off.
Jan. 8: Walgreen (nyse: WAG) cuts 1000–roughly 9%–from corporate and field manager ranks.
Jan. 7: EMC (nyse: EMC) fires 2400 as it reduces 2009 expenses by $350 million.
Jan. 6: Alcoa (nyse: AA) starts global salary and hiring freeze, plans sale of four non-core businesses and cuts workforce by 13% (13500 jobs).
Jan. 6: Aqua Glass–a subsidiary owned by Masco (nyse: MAS)–pink-slips 30 employees.
Jan. 5: Cigna (nyse: CI) reduces workforce by 4% (1100 jobs).
Jan. 5: United States Steel (nyse: X) cuts 50 jobs as it closes production lines in Texas.
January saw 598000 people laid off in the US.
Just think about it… Almost 600000 people are now sitting at home claiming some sort of benefit from the US government. What makes it even more staggering is the fact that this was the total forJanuary. Only eleven more months to go and what will the rest of the year have in store?
Lots of analysts and website guru’s are saying it is going to get a lot worse, which is very, very depressing.
The service sector axed 279000 workers, while the goods-producing sector dealt out 243000 pink slips.
In debt, get out by declaring bankruptcy.
Bankruptcies are the new thing during the Credit Crunch. It’s the one way a lot of people can wipe the slate clean. Personally I think people who file for bankruptcy should be sent to jail or put on a chain gang or made to work for the community. Going into bankruptcy should mean some sort of punishment, hard labour, stigma etc, that way there is less chance of it happening.
Almost 20000 people were made bankrupt during the last three months of 2008 in England. That is a lot of debt just wiped clean, but obviously someone has to cover all those losses.
The figure is 22% higher than for the same period of 2007 and overtook the record set during the previous quarter.
At the same time, 4607 companies went into liquidation – 52% more than a year earlier – as the GEDT continued to take its toll.
Overall, a total of 67428 people were declared bankrupt during the whole of 2008 – also a new high.
It seems that there will be many more victims because of so many bad decisions and poor company management.
Global IT sector hit hard by CEDT.
The IT sector around the world is being hammered by job losses because of the current economic down turn (CEDT).
Just today Microsoft sacked 1400 people, and a further 3600 will go in the coming months. There are fears that up to 60000 jobs will go at the Intel facility in the Philippines. Intel are the biggest computer chip makers. Their competition AMD has already shed 1100 jobs a couple of days ago. Texas Instruments have already started laying off 400 jobs from its semiconductor factory in the northern resort town of Baguio due to the global financial crisis (GFC).
Sun Microsystems Inc. have already laid off 6000 people. Santa Clara, which this week unveiled plans to reduce its global workforce by about 12% or 1800 workers. National Semiconductor Corp., said it is cutting 330 jobs.
One of the largest cuts announced last year September after the merger of Hewlett-Packard Co. and Electronic Data Systems Corp. Hewlett-Packard Co. said that it planned to cut as many as 25,000 employees as a result of the merger.
Lenovo started 2009 by announcing plans to cut 2500 jobs or 11% of its workforce. In Tokyo, electronics and entertainment giant Sony Corp. said that it would offer early retirement to employees in its TV division and would eliminate jobs at its movies, music and games units. The company, which is facing its first yearly loss in 14 years, also said it would cut 1000 temporary workers in Japan when it shut down a TV plant.
Autodesk Inc. cut 750 jobs, while Advanced Micro Devices Inc. eliminated 1100 positions – on top of 2200 announced layoffs last year.
Fear is causing fear among existing employers.
The amount of job losses in the past three months is frightening and it doesn’t appear to be letting up either. Job losses were discussed on Channel 4 tonight. If the video doesn’t work then you have this link to Channel 4 News.
The job discussion starts at 01:52 and runs until 06:06.
Bad news for at least 18 companies or 21000 jobs.
Quoted from Bloomberg
Not a great Friday after news that roughly 21000 jobs would be lost for at least 20 companies.
- Hertz, the second-largest U.S. rental-car company, said it will cut more than 4000 jobs.
- WellPoint, the second-largest U.S. health insurer, will end 1500 jobs, which include 600 workers and 900 open positions.
- Clear Channel Communications Inc. will lay off 1500 employees on Jan. 20, mostly in ad sales.
- ConocoPhillips, the second-largest U.S. refiner, announced after the markets closed that it plans to cut 4 percent of its workforce, or about 1350 jobs.
- Advanced Micro, the second-largest producer of personal- computer processors, said it will eliminate 1100 jobs by the end of the first quarter.
- Amonil said it will cut 45 percent of its staff, or 389 jobs, this year.
- Magneti Marelli will eliminate 800 jobs in Brazil, or 10 percent of its workforce there.
- General Electric Co.‘s finance arm may cut 7500 to 11000 jobs, or at least 10 percent of its workforce.
- De Beers, the world’s biggest diamond company, said it will cut jobs at its six mines in South Africa, totaling “less than” 1000 people.
- Interwoven Inc., the provider of data-management software, announced after trading hours that it would cut 70 jobs.
- Blue Cross Blue Shield of Michigan will cut up to 1000 jobs in 2009.
- Renold Plc, the maker of the chains that drive the clock in London’s Big Ben, announced 350 job reductions.
- WS Atkins Plc, the U.K.’s biggest engineering-design company, plans to eliminate 210 jobs at its Middle East operations.
- Scania AB, Sweden’s second-largest maker of heavy trucks, said it won’t renew contracts for 2000 temporary employees to adjust production because of weaker demand.
- Haynes International Inc., the manufacturer of alloys for use in aerospace and chemical processing, said it will eliminate 12 percent of its global workforce.
- Varian Inc., manufacturer of scientific instruments and vacuum technologies, will shed 240 jobs.
- Banco Santander SA, Spain’s biggest bank, eliminated 400 jobs in Brazil after buying ABN Amro Holding NV’s Banco Real unit in the country.
- Harry & David Holdings, a fruit and food retailer, said it would cut more than 100 positions.
Job losses: +-21000
Original article By Oshrat Carmiel, ocarmiel1@bloomberg.net
Unhappy 2009 for a lot of people.
There is nothing happy about this year from what we saw of 2008. Big name companies going broke or just disappearing off the face of the earth. Northern Rock being nationalized, thousands of mortgage offers just removed leaving slim pickings for the ones looking to buy, Lehman Brothers going bang, thousands of jobs being lost, and just recently Zavvi, Woolworths, MFI going into administration.
There will be plenty more in the coming weeks and months.
Take this article quoted from Economist.com
Here’s a prediction to disturb any seasonal good cheer. An email from Trends Journal, published by an outfit called the Trends Research Institute of Kingston, New York, announces its “Top Trends of 2009″. The first on its list:
We forecast “The Collapse of ’09,” which in turn will spiral into the “Greatest Depression” … the worst economic conditions America has ever experienced.
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