Market Movers: Meredith Whitney on the small business credit crunch and NY Fed’s Empire business conditions index PLUNGES…

The double dip is coming baby, believe it, and the Congress Critters attempts to ‘help us’  are making it worse…Read the entire piece by Meredith Whitney for the coming layoffs at the state level..


…Unless real focus is afforded to re-engaging small businesses in this country, we will have a tragic and dangerous unemployment level for an extended period of time. Small businesses fund themselves exactly the way consumers do, with credit cards and home equity lines. Over the past two years, more than $1.5 trillion in credit-card lines have been cut, and those cuts are increasing by the day. Due to dramatic declines in home values, home-equity lines as a funding option are effectively off the table. Proposed regulatory reform—specifically interest-rate caps and interchange fees—will merely exacerbate the cycle of credit contraction plaguing small businesses.

If banks are not allowed to effectively price for risk, they will not take the risk. Right now we need banks, and particularly community banks, more than ever to step in and provide liquidity to small businesses. Interest-rate caps and interchange fees will more likely drive consumer credit out of the market and many community banks out of business….

…It is important now to support any and all lending activities that would enable small businesses to begin hiring again. If the regulatory reform passes with rate-cap and interchange regulation amendments incorporated, small businesses will be hurt rather than helped. Politicians and regulators need to appreciate the core structural challenges facing unemployment in the U.S….

Empire State general business conditions index- CNBC:

…The New York Fed’s “Empire State” general business conditions index fell to 19.11 in May from 31.86 in April.

Economists polled by Reuters had expected a May figure of 30.00….

...The new orders index fell to 14.30 from 29.49 in April….


May 17, 2010. Tags: , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Breaking: BofA to pay $33m penalty in settlement…SEC charges BofA with making material false stmts on Merrill deal…CIT Group shares halted for news pending….

Update 5: BofA Spokesman: Ken Lewis ABSOLUTELY has the full support of the Board…

Happier Days...

Happier Days...

Update 4: BofA to pay $33 million penalty as part of settlement. Gee as a shareholder can I get part of that? Suuuure, after all WE are the wronged parties.. AS IF!

BofA is settling the charges, “without admitting or denying guilt”. Well now TAXPAYERS will wind up SOL when shareholders sue…after all we will not allow their capital ratios to fall….Pfft.

Developing via CNBC

Breaking II: Now SEC is charging BofA with making materially false, misleading statements in connection with the Merrill merger….oh boy….

We are shareholders. We have covered this extensively see our posts on Thain/Lewis here and here and here and  here

This is NOT about the failure to use the Material Adverse Change clause to escape the merger, this is the bonus issue Cuomo was on top of…

From Mary Thompson CNBC:

SEC: BofA agreed to pay up to $5.8B in Merill bonuses, contrary to statements in the merger agreement…

Oh Andrew Cuomo must have gotten them in the depositions of Thain and Lewis, oh boy….

Hope to Good Lord it is news of a buyout or capital infusion of some magnitude and not a bankruptcy….

Our previous post on CIT Group here

Okay CIT Group just raised the purchase price on the tender offer.. no biggie.

August 3, 2009. Tags: , , , , , , , , . Economy, Finance, Politics, TARP. 1 comment.

Small Business: CIT needs a bailout and TOTUS is ready to oblige…

Another driver of GROWTH in our economy coming under control of the velvet fist (or whatever the hell some up and coming nubile historian coins it 80 years from now)….

CIT the second largest IIRC first, the largest per CNBC, lender to small and midcap businesses in the US is in danger of imminent bankruptcy.

Odd that a ginormous stimulus went through and this KEY DRIVER of the economy was left hangin’ or maybe not..

Deliberate or shortsighted, the effect is the same, CIT is coming to the Fed for aid and the FDIC is saying not our ball and Team TOTUS is the only one with a checkbook…

a new oversight panel and CZAR for the coordination of small business recovery is no doubt next on the list of TOTUS hooks into the economy…

The last time MiM followed late night negotiations on a bailout of this importance to the economy was AIG and CITI .. bodes nothing good, *having Martin Sheen type Apocolypse Now flashbacks just at the thought of it* ugh….


In a sign the financial crisis isn’t over, CIT Group, the No. 1 lender to small and mid-sized U.S. businesses, is scrambling to get help from the federal government.

“People are speculating that CIT is going to get government assistance,” David Chiaverini, analyst with BMO Capital Markets in New York, told Reuters. The Treasury Department and the Federal Reserve are exploring aid options for the lender, a source familiar with the matter said on Monday. A CIT spokesman did not respond to requests for comment

The government may have good reason to talk with CIT. Some analysts suspect a collapse of the company, whose 1 million clients include big names from the franchisee of Dunkin’ Donuts to retailer Dillard’s, could deal a devastating blow to the economy by cutting off financing just as businesses need it most.

The impact:

“If CIT were to go away, it would take a financing option away from our franchisees who want to buy stores or expand their networks,” said Michelle King, spokeswoman at Dunkin’ Brands, parent company of the Dunkin’ Donuts chain.

For the apparel industry, a collapse of CIT would have “near cataclysmic,” consequences for its small to mid-sized clients, said Andrew Jassin, co-founder of Jassin-O’Rourke Group an apparel consulting company.The retail and apparel industries, which also include CIT clients like Dillard’s and Bon-Ton Stores, is preparing for the critical back-to-school selling period and is in the midst of ordering merchandise for the holidays. “This could affect the lifeblood of the flow of goods to the stores,” said Vincent Arscott, senior director of Fitch Ratings.

Apparel industry insiders say it would be very difficult for rivals to absorb CIT’s clients because other lenders are already under financial strain, leaving many orphaned suppliers potentially without any access to financing.

There was some bailout money given by Dubyah, Team TOTUS has done nothing for small business but propose raising their taxes and give some chin wagging the last three days:

CIT, which got $2.3 billion in bailout cash in December, said it’s talking with regulators about receiving more government help. One possibility is including CIT in the Federal Deposit Insurance’s Temporary Liquidity Guarantee Program, the firm said.The program would let the New York-based financier, which converted into a bank holding company last year, issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed $335.4 billion of debt.

Speaking in London, Treasury Secretary Timothy Geithner suggested help could be on the way but gave no specifics. “I am actually pretty confident in that context that we have the authority and the ability to make sensible choices,” Geithner said.

Timmeh is confident they have the authority, SHIVER ME TIMBERS! and the ability to make SENSIBLE choices, IM COMIN !!ELIZABETH! IM COMIN TO JOIN YA HONEY!!

Sanford and Son Montage and Music Created by MrMonkeyFingers

Rolling Stones courtesy of satanic5fab4

1/25 The Rolling Stones performing Under My Thumb in Tempe, Arizona, on the 13th December 1981 during their USA Tour ’81 from their “Let’s Spend The Night Together” film

July 14, 2009. Tags: , , , , , , , , , , , , . Comedy, Economy, Entertainment, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 1 comment.

BREAKING UPDATE: Obama Budget: Capital Gains and Dividend Tax Increases go into Effect October 1 2009!!!

Kudlow breaking CNBC I have not seen or heard it anywhere else! Rise in capital gains and dividend tax as well as the changes to carried interest income, are going into effect THIS YEAR! WHA????? WTH?!?!?! IN THE MIDST OF THE DECESSION! (depression-recession)!!!! He MUST be trying to kill the market why the hell else would anyone do this? The Hill is a madhouse!!!

Kudlow reports changes go into effect OCTOBER 1, 2009, which is the beginning of our government FY10!!!!!! DAMN THEY ARE SLICK AND OUR SLEEPING MEDIA HANDMAIDENS TO TEH ONE SAY NARY A WORD!!!

This will ALSO hurt small business, since Team Obama generated their estimated ‘savings’ by pushing back the small business waiver of capital gains tax until a phase-in that does not begin until 2014!!!!!!!

WHERE ARE THE JOBS GOING TO COME FROM?!?!? Ask Congress before they pass this like TARP ONE and the Stimulus without reading it!

Spread the word! Call your Critters! This is crazy, this is GUARANTEED to kill any possible recovery in the markets, what the hell is Larry Summers doing???

Is the economic council lobotomized? Suffering from kool-aid poisoning? Cloned?! Are they Kodos and Kang in disguise? Cylons? Pod-people??

I heard SO MANY people during the primaries and later the election claiming Obama was a centrist Democrat like Big Dawg and Obama’s advisers were always touted as the evidence of that, i.e. Why would Volker and Summers and Jamie Dimon endorse him if he weren’t a capitalist?? yada yada yada

Seems the much vaunted Business Council led by Immelt and his innumerable titled economic councils chiefs advisers cooks valets whatever the hell he calls them are useless props.

February 27, 2009. Tags: , , , , , , , , , , , , , , , , , , . Cabinet, Economy, Entertainment, Fantasy, Film, Glam Metal, Hair Bands, Horror, Music, Obama Administration, Politics, Popular Culture, Sci Fi, Uncategorized, Unemployment Statistics, Wall St. 3 comments.

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