"Small firms denied credit as big ones thrive; Bernanke urges more lending" by Jeannine Aversa, Associated Press | July 13, 2010
WASHINGTON — Big companies are building up cash and are expected to report strong earnings starting this week. Not so for small businesses that can’t get loans or hire freely until they do.
The gap helps explain why the economic rebound is not stronger and could even stall....
Nearly one-third of small business borrowers report difficulty arranging credit, the National Federation of Independent Businesses says. By contrast, big businesses, which start reporting their second-quarter earnings this week, have enjoyed easier access to loans and low interest rates. Analysts expect companies in the Standard & Poor’s 500 to report a 42 percent jump in profit by one measure....
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You have gotten so screwed on this 'bailout" thing, America.
"Bailout payments burden small banks, report says" by Daniel Wagner, Associated Press | July 14, 2010WASHINGTON — To the list of economic woes squeezing small banks, add another one: government bailouts.
The Treasury Department’s bailout program may actually be hurting small banks that are struggling to repay the money or even deliver quarterly dividend payments, the report says.
The main bank bailout program anticipated banks springing back from the crisis and raising fresh funds to repay the government, the report says.
That’s exactly what happened to most of the big banks that took the most bailout money. Yet small banks continue to struggle, dragged down by souring loans for commercial real estate and high unemployment. Hundreds more small banks are expected to fail by the end of next year.
The 690 small banks that took bailout money are worse off, according to a report today from the Congressional Oversight Panel, which monitors the $700 billion program. One in seven has failed to pay a quarterly dividend due to Treasury. They can’t afford the payments, which will nearly double in 2013.
That’s troubling because small banks’ crucial role in lending to small businesses and supporting economic recovery, said Elizabeth Warren, who chairs the panel. The program “was not intended as a bailout for Wall Street,’’ said Warren, a professor at Harvard Law School. “It was intended to support . . . homeownership, retirement savings, and banks across the country.’’
--more--"Also see: U.S. Consumers Left Out in the Cold
This will warm you up, readers:
"Market slump apt to hurt bank profits" by Stevenson Jacobs, Associated Press | July 14, 2010
NEW YORK — The bank industry’s winning streak may be over.
A terrible spring in the financial markets is expected to leave big banks with second-quarter earnings that fall short of their stellar results from the first three months of the year. That’s bad news for companies that relied on trading profits to mask a still-miserable banking climate with high losses from failed loans and low demand for credit.
That means the BANKSTERS TRICKS are NOT WORKING anymore -- except they are!
Banks begin their second-quarter reports tomorrow, when JPMorgan Chase & Co. issues its results. And there may be problems in the coming quarters, as well. A number of unknowns are weighing on full-year earning projections and on the stocks of big names like JPMorgan, Goldman Sachs, and Morgan Stanley. Among the biggest wild cards: how banks will be affected by the regulatory overhaul that’s awaiting congressional approval.
Related: Senate Sends Along Financial Fraud Bill
Yeah, I'm sure they are really worried.
What crapola passing as a "news" article.
Fears about a “double dip’’ recession and Europe’s debt crisis have also added to the gloomy outlook.
We were assured that people who talked like that were crazy and it wasn't going to happen. And yet....
The news isn’t all bad, though. Smaller banks that don’t bet heavily in the financial markets, including Boston-based State Street Corp. and Fifth Third Bancorp, are expected to post good to strong results for the April-June period.
Citigroup Inc. and Bank of America Corp. report earnings Friday, followed by Goldman Sachs Group, Morgan Stanley, and Wells Fargo & Co. next week. All six are expected to post profits. Yet nobody predicts a repeat of the first quarter, when Goldman, Bank of America, Citigroup, and JPMorgan were models of perfection: All four went without a single day of trading losses....
Related: How Much Money Did You Make Today?
Goldman Sachs' Rigged Gambling Game
Banks most active in capital markets could take the biggest hits. At Goldman and Morgan Stanley, revenue from fixed-income, currency, and commodities trading could plunge 30 percent or more from the first quarter, Credit Suisse analyst Howard Chen said.
Citing a “heinous trading environment,’’ banking analyst Meredith Whitney last week dramatically slashed her earnings estimate for Goldman....
--more--"So how much of a "hit" did those looters take?
"Goldman Sachs Group said second-quarter profit plunged 82 percent to the lowest level since the end of 2008 as trading revenue declined more than analysts estimated. Net income fell to $613 million....
Yeah, they STILL MADE MONEY!
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More profit statements:
"Corporate demand gives Intel strong quarter" by Jordan Robertson, Associated Press | July 14, 2010
SAN FRANCISCO — Intel Corp. has posted its largest quarterly net income in a decade as the company benefits from a strengthening computer market and more sophisticated factories.
An encouraging sign for the economy was that large corporations, which have been slower than consumers to start spending again after the worst of the recession passed, bought more computers that use Intel’s most expensive chips....
Intel’s net income was $2.89 billion in the quarter ended June 26....
That is with a B, Americans.
And about that corporate spending on technology:
"Companies revving up their technology spending; But economic fears in Europe, US spur caution" by Jordan Robertson, Associated Press | July 15, 2010
SAN FRANCISCO — Companies finally appear to be muscling up their spending on the most expensive kinds of computers after slashing budgets during the recession, but fears of more economic uncertainty are proving tough for the technology industry to shake.
Intel Corp., which makes the brains for 80 percent of the world’s personal computers, turned in blowout quarterly financial numbers on Tuesday, a sign to the rest of the industry that better times are on the way.
You have been told that for two years, America.
That's why I rarely read the bs business section anymore.
But analysts caution that Americans are still expected to be cautious with their spending for the rest of the year. So companies may just be upgrading their technology to boost productivity, not necessarily expecting a sudden, huge increase in demand.
Translation: There will be NO JOBS!
Economic shakiness in Europe could hurt demand, too.
Hey, haven't you heard?
See: No More Economic Problems For Europe
Intel’s results were the best in its 42-year history, including its highest revenue and profit margins ever, at a time that is historically the low point of the year for technology spending, coming ahead of back-to-school and holiday shopping.
Yes, it is AMAZING that these companies are DOING SO WELL while the rest of the economy is such s***!!!
Two other companies already say they are benefiting. Applied Materials Inc. said it expects to bring in more money from semiconductor equipment, and ASML Holding NV, a Dutch company that also makes chip equipment, said it expected record revenue this year....
Business spending on equipment and software is an important force helping to keep the economic recovery alive.
Companies increased spending in those areas at a blistering 11.4 percent pace in the first three months of this year, the most recent period available, and 19 percent in the final quarter of last year. Consumer spending in both of those quarters was tepid.
Most signs are now pointing to slower economic growth in the second half of this year, mostly because Americans are expected to stay skittish with their wallets.
Yeah, it is ALL YOUR FAULT, busted and bankrupt Americans!
Strange that YOU are not BENEFITING given all these GREAT CORPORATE PROFIT REPORTS!
If AmeriKa's newspapers were not the most trustworthy media available I'd almost think they are lying to you.
But analysts think businesses spending on equipment and software will hold up fairly well.
That’s because companies, while keeping their workforces lean — are taking advantage of improvements in technology to increase productivity.
Yes, THERE ARE NO JOBS for you, Americans, and it is BY DESIGN!
This is where the PROFITS are coming from!
Worldwide information technology spending is expected to grow 3.9 percent to $3.35 trillion in 2010, according to market research firm Gartner Inc.
There are some firms trying to tamp down expectations of a quick recovery.
Pffft!
In Microsoft Corp.’s latest quarter, rising PC sales helped push net income up 35 percent, but investors were disappointed that business spending didn’t provide a bigger boost to the bottom line.
You have GOT TO BE F***ING KIDDING!
A**hole banksters NOT HAPPY, huh?
Despite Intel’s strong quarter, there’s still considerable worry that economic shakiness and austerity measures in Europe and fears about slowing demand in China will crimp growth....
Another disappointing report:
"Google’s earnings miss target" by Michael Liedtke, Associated Press | July 16, 2010
SAN FRANCISCO — Google Inc.’s second-quarter earnings missed analysts’ targets as higher expenses and the fallout from the European debt crisis dragged down the Internet search leader.
The results, announced yesterday, stemmed from Google’s expanding payroll and a run-up in the US dollar that has been driven by fears the euro will crumble if governments in Greece, Spain, Portugal, and Italy default on their perilously high debts....
We were told no problem!
Despite the currency squeeze and the rising expenses, Google’s net income and revenue still rose at a fast clip.
But the earnings growth was not quite as robust as analysts had hoped, a factor that seemed to amplify investor concerns that had already been weighing on Google’s stock price....
The report wasn’t entirely bad news.
You mean there was some?
In a positive sign for the overall economy, marketers were willing to pay more for the online advertisements that generate virtually all of Google’s income, and people are clicking on the commercial messages more frequently.
Those trends provide another indication that more companies and shoppers are feeling a little better as they recover from the worst economic downturn in more than 70 years.
Google, which is based in Mountain View, Calif., earned $1.84 billion.... in the April-June period, up 24 percent from a year earlier.
And that is the BAD NEWS!!
--more--"
"Alcoa moves to 2Q profit on improved demand" by Sandy Shore, AP Business Writer | July 12, 2010DENVER --Alcoa Inc. said Monday it posted a second-quarter profit as it sold more aluminum in the commercial vehicles, packaging and construction markets. The Pittsburgh manufacturing giant reported net income of $136 million for the quarter ending June 30....
--more--"
NEW YORK — JPMorgan Chase & Co., the second-biggest US bank by assets, said profit rose 76 percent, buoyed by a $6.3 billion reduction in provisions for soured mortgages and credit card loans from last year.
Second-quarter net income climbed to $4.8 billion even as revenue fell 7.6 percent, the New York company said yesterday in a statement.
That is BILLION with a B in THREE MONTHS!
The bank earned $2.72 billion in the same period a year earlier and $3.33 billion in the first quarter....
Yup, BILLIONS per QUARTER while EMPLOYMENT is STALLED and FORECLOSURES SOAR!!
--more--"
What is WRONG with THIS PICTURE, America?
WASHINGTON — New evidence of a slowing economic rebound emerged yesterday in reports that manufacturing activity is slowing after having helped to drive the early stages of the recovery.
Factory output fell in June, according to a government report. It was the sharpest monthly drop in a year....
Manufacturing helped boost the economy last year when the recession ended and has since been one of the strongest sectors in the recovery. June’s decline in output was the first in four months. Overall industrial production ticked up for the month, but that was mainly the result of hot weather that increased demand for electricity from utilities....
I'm sorry, readers. I can' read this lying s*** anymore.
"Builders’ outlook gets even gloomier; Most see no fix for housing slump" by Alan Zibel, Associated Press | July 20, 2010
WASHINGTON — Home builders are feeling increasingly pessimistic about their industry, more evidence that the economic recovery is slowing....
What recovery?
The weak job market and an increasing number of foreclosed properties have prompted builders to limit construction....
Conditions are not likely to improve soon....
While the overall economy appears unlikely to fall back into recession, many analysts expect housing to struggle for some time....
Tied of being JERKED AROUND by the SHIT BUSINESS PRESS!!!!!!!!!!!!??
In some ways, it could be good news that builders are scaling back. It means they won’t add to the supply of homes on the market, and that could create more demand for the current stock.
But it won’t help the job market....
Yeah, I am TIRED of the INSULTS, too!!!!!!!!
--more--"
WASHINGTON — Sales of new homes jumped last month, but it was the second-weakest month on record....
I guess they HIT BOTTOM and did a DEAD CAT BOUNCE, huh?
May’s number was revised downward....
Sales for April and March were also revised downward.
Translation: GOVERNMENT and MSM have been LYING TO YOUR FACE, America!!!!!
Even the s*** numbers they put out are lies!
High unemployment, slow job growth, and tight credit have kept people from buying homes....
Yeah, BIG BANKS and BIG BUSINESS have access to PLENTY of CREDIT!
“There’s no question that this is a weak number, but it seems to be more stable,’’ said Stuart Hoffman, chief economist at PNC Financial Services Group. “The bottom line to all of this is that we need more jobs.’’
Then bottom line, this economy is over.
*************
Weak sales mean fewer jobs in the construction industry, which normally powers economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders. The impact is felt across multiple industries.
I don't know; they were telling me this could be a good thing above, sigh!!!!!!!!!!!
Builders have sharply scaled back construction in the face of the housing market bust....
Just reflecting the broader U.S. economy and it's empire.
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