Everybody Has Less Than Somebody, So Let's All Kill Each Other @12:45 PM
After the Times blew up with a story in part on how the youngs, who have no jobs, use the foodstamps at the Whole Foods, Salon has followed suit about the youngsters buying the organic chickens and boy are the comments insane. READ MORE 98
Former Porn Star "Bending Over Backwards" To Meet "Enormous Payments" @9:20 AM
And soon she'll be homeless. The end. 17
U.S. Banks "Very Liquid"–with $1.2 Trillion in Cash @11:51 AM
Today's Goldman Sachs Global Investment Research paper on U.S. banks is five kinds of fascinating—spelling out as it does that banks are currently cash-rich, yet still fairly lending-averse. (Consumer loans were, however, up slightly in December, which is a yearly bump.) While sitting on $1.2 trillion in cash—$1.2 trillion is also the total value of China's exports in 2009, by the way!—GS notes that, in the fourth quarter, "Loans were down slightly after 3Q's 4% decline." How are they filling this big kiddie pool up with cash? A good chunk of it is your card use fees, various "late" and service fees, and, natch, that old standby, credit card interest. In case you speak bank, then you can understand this, and can translate in the comments: "Credit card early delinquencies have turned, and consumer is 40% of provisions for large banks. We think the next product to turn in 2010 will be commercial (C&I) with improving corporate defaults." 11
"But in a market society, since when are people responsible for the economic effects of their actions? " @2:33 PM
I wanted a little bit more reasoning and example on this "THE WAY WE LIVE NOW" piece from this upcoming New York Times mag, which says that people should abandon their underwater mortgages (true!). He writes: "Mortgage holders do sign a promissory note, which is a promise to pay. But the contract explicitly details the penalty for nonpayment — surrender of the property. The borrower isn’t escaping the consequences; he is suffering them." Sure! There is of course often the complication that then, you know, people have to find somewhere else to live. 55
The End of the 00s: Top 10 Jobs I Lost This Decade: Failing Up, Sometimes, but Mostly Sideways, by Jackson West @1:15 PM
I've been looking for, finding and losing jobs since I was 14, the legal working age in Washington State. The first job I was fired from, after just a couple of months, was a filing job at a pool equipment supply company in Seattle. I did get former Supersonics All-Star power forward Shawn Kemp's old home address out of the deal, so that's something. But that was the dawn of the 90s, and while I'm sure I gained and lost at least ten more jobs in that decade, I'm pretty sure it couldn't compare to the volatile 00s. I wasn't always fired, mind you—straight-up firings, lifetime, I can count on one hand. No, these days things are much more passive-aggressive. Generally the work was temporary from the get-go, or else I was downsized, and sometimes I even quit or transitioned to part-time on relatively good terms. I, like most Americans, have been fully widgetized. The concept of job security is a sort of mythical legend from a pre-historic dreamtime. READ MORE 15
On Waking Up As A Statistic @10:00 AM
My kid, who just turned five, wakes up before me every morning and plays in his room. I hear him talking through my half-sleep, spooling out imaginary dialogue between his Ben 10 action figures, mostly about who will defeat who, who has stronger magical powers or superior fire power. This morning, though, amidst the usual, I heard something different.
"Oh, you lost your jobs?" he said, in a deep monster voice. "I'm sorry." READ MORE 25
"Is The American Dream Over?" Some Say Yes! Others, No! Some Shrug @3:55 PM
Times bloggers Gail Collins and David Brooks are getting into it over, you know, the future of America and stuff. I love that they have, I guess, iChat now! Gail: When the bubble burst last year, I didn't see it as the end to our economic power. But I did wonder if it was the end of the American Dream, or at least the version we've come to regard as practically a national birthright. What do you think? If you have an encouraging response, I am prepared to embrace it wholeheartedly." David: [No Intelligible Answer]. 27
Pauline Kael Would Totally Have Focus-Grouped 'Avatar' @2:00 PM
Do you like movies? Do you also like watching them? How about if I told you that you could get paid to watch them? Great news for the 55 60! newly-unemployed newspaper film critics of America: If you are a freelance (also known as "not-really-working") film critic, you can now get a whole hundred dollars per screening (that's like 1/2 to 1/3rd of what you'll get paid for a piece at a good website!). As long as you're willing to fill out the focus group survey after. Go on! Don't be ashamed. I'd take that $100 and buy a bunch of socks and food with it. 3
The Further Decline of Union Square: The W Hotel Foreclosure Auction @12:10 PM
Beyond the drama of the big numbers, here's a helpful explanation of what happened to the W Union Square Hotel, which had a fun and dramatic foreclosure auction yesterday. (Union Square! Such carnage, all around!) "Basically, Dubai World (or its investment arm, Istithmar) paid $282 million in total for the hotel, and took out a $115 million mortgage. Istithmar put down $50 million of its own money, and borrowed the rest in what's known as a 'mezzanine' transaction: $117 million of high-yielding debt which isn't secured against the property…. Lots of people are extremely worried about commercial real estate at the moment, saying that it's the next shoe to drop. But a $240 million valuation still works out at almost $800,000 per room, which is still a lot of money for a hotel which no one likes very much." Amen to that. 2
Gawker Media Goes Legit @9:34 AM
Exciting news over at the world's last profitable (online) magazine company, Gawker Media! We're hearing that the company's widespread use of full-time yet non-employee contractors is finally being ended. Workers at the company's various blogs will have the choice between going full-time, as actual employees, or staying as contract workers, but only working four days a week. This is awesome news for those among us who were afraid that in the hideous future, no one would ever find employee status anywhere again. On a day-to-day level, this is less awesome for Gawker Media employees, who have to choose between being squeezed into the office (where, exactly?) for every workday or retaining their freedom to take on additional work elsewhere. Still, we're sure there are various benefits for the company in this, and for the employees as well. (And once they're employees, they can more easily unionize. Ha ha, JUST JOSHING.) 24
"Federal Reserve officials are increasingly confident the U.S. economic recovery is sustainable, but they do not see employment picking up soon, according to minutes from their November meeting released on Tuesday." @3:40 PM 1
Black Unemployment Reaches "Great Depression Proportions" @9:26 AM
In the 1960s, the African-American unemployment rate in New York City was nearly identical to the white people unemployment rate. But by 1990, black people were well more than twice as likely to be unemployed as white people. Ever since, black unemployment has been the leading edge of unemployment trends; when unemployment shot up in 1992 to a New York City-wide average of 11%, unemployment among black men went to 17%. (Of course these are state Department of Labor numbers; they indicate people actually enrolled in the system, not the further mass of the jobless.) Let's take a look at the trending since the early 90s! READ MORE 4
Those expected AOL layoffs? Not 1000! Not 2000! Actually 2500, amounting to 1/3rd of their employees. @12:10 PM 2
UCLA Students Riot Over Huge Tuition Increase @9:20 AM
Maybe the kids are alright! "A crowd of more than 500 demonstrators rushed Covel Commons on Wednesday to protest a proposed 32 percent student fee increase." 10
Worn Out: How Much Does it Cost for Gareth Pugh to Get You Gaybashed? @1:30 PM
Designer Gareth Pugh really is wonderful because he makes really messed-up things for ladies to wear, hence why you see the Space Vampire Rihanna putting that business on. But the biggest problem in fashion (of fashion's eight biggest problems) today—designers who make great crazy things for women but can't figure out what to do with men—is his huge stumbling block. Let us take a tour of the floor of Barneys, and we will tell you how much it costs to dress up as a really gay guy from the future next Halloween. READ MORE 22
Graydon Carter Orders Fresh Desk Clearing @3:50 PM
Since every memo leaks in this annoying modern age, the way to handle potentially embarrassing corporate moments is what they used to call "in person," which means "face to face." Smart policy! That's what we hear Vanity Fair's managing editor Chris Garrett just did, when she went around to inform all the magazine's assistants that they were not allowed any personal items on their desks. Apparently not even back issues of the magazine are allowed upon these flat surfaces? This is odd, as the assistants' desks are behind cubicle walls, so you can't even see their desktops from the aisles. This policy was not necessarily in the service of general Graydon Carter insanity, but towards making the some recently emptied desks look as equally empty as those occupied by actual remaining employees. 7
This is Going to be the Best Thanksgiving Ever @2:10 PM
Walmart's $20 Thanksgiving feast includes:
* One 12-pound Grade A turkey*
* Three 11 to 15.5-ounce cans Green Giant vegetables
* Two 14-ounce cans Ocean Spray cranberry sauce
* Three 6-ounce boxes of Stove Top stuffing
* One 5-pound bag of red potatoes
* One 12-count package of Sara Lee dinner rolls
* One 22-ounce pumpkin roll cake
*Prices and availability may vary in AK, HI, OK, NM, WI and at Walmart.com. Prices on select Grade A turkeys begin November 4; limit two turkeys per customer; weights and brands vary by store.
Now We Can Have All Those Jobs Back From The Mexicans @10:40 AM
There is good news on the employment front, even though 30 million Americans are out of work. (Yes. That is the real number, including people who have given up looking for work, or people who are making ends meet with part-time or off-the-books labor.) They are still firing all the Mexican janitors so we can do their jobs! For instance, ABM Industries, which is an immense corporation that had annual revenue of $3.6 billion in 2008. How do they do it? The easy way—they employ undocumented labor which they then fire when the feds come around. So now they have disposed of 1200 janitors in Minneapolis. (That company's total labor force is 100,000 people.) Anyway, this is a great report and perhaps you can make contact with the ABM mothership to let them know that you are a citizen and you are so willing to scrub out those recession toilets now. 13
Nation Loses Just 190,000 Jobs in One Month! @9:20 AM
Well, we beat the forecast for October: we were only supposed to lose 175,000 jobs last month, and we did 190,000! Which really isn't very much. 190,000 people is the entire population of Little Rock, Arkansas (which is the 118th largest city in the United States!), or Mobile, Alabama. 190,000 is just slightly more than the entire population of Salt Lake City. Hmm. If every person that was laid off in October were a penny, it would be a stack of pennies almost a thousand feet high—as high as the tallest building in California, the US Bank Tower in Los Angeles. If everyone laid off in October were a page in the King James Bible, that'd be a stack of 624 Bibles, a stack standing 90 feet high. If they were all following you on Twitter, you'd be the 382nd most popular person, right between Richard Branson and John Hodgman. If they—well, you get the point. 7
Hot Excess Supply of Labor Action! Wages, Productivity and the Market @2:00 PM
In this glorious 3rd quarter of the year, something rather amazing has happened. Overall, companies reported that "worker productivity" was up by 9.5% while actual hours worked was down 5%. This means exactly what you think it means. Mostly it means that there is no reason for companies to do any hiring. Why? Because they are doing just fine without you. READ MORE 17
Food Stamp Nation: How's Your Recession Going? @12:50 PM
1. "Nearly half of all U.S. children and 90 percent of black youngsters will be on food stamps at some point during childhood."
2. "The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005."
3. "In September, Texas processed 58.6 percent of applications within the 30 days required by the federal government. By the end of that month, nearly 42,000 families were waiting for a decision even though the deadline had passed."
4. "Some 36 million Americans are on food stamps, an increase of nearly 10 million over the past two years…. Some 66 percent of those eligible participate."
5. "A federal judge has ordered Indiana's partially privatized welfare intake system to speed up decisions on food stamp applications, but the state has a year to meet its first target." 14
Economic Collapse Porn, Rated @2:10 PM
Which financial crisis book is the right one for you? Awl pal Moe Tkacik ranks eleven of the big ones. We're gonna grant you a special dispensation here and say that reading this list actually counts as reading one of the books, because, really, who wants to go through all that again? 1
We Are Almost Totally Back To Normal! @10:05 AM
"Major U.S. banks and securities firms are on pace to pay their employees about $140 billion this year — a record high that shows compensation is rebounding despite regulatory scrutiny of Wall Street's pay culture. Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007, according to an analysis of securities filings for the first half of 2009 and revenue estimates through year-end by The Wall Street Journal." And, hey, why not? I mean, today may be the day where the Dow crosses back over the magical 10000 mark. I know I feel much better about everything; don't you? 7
Are We Entering The Era Of Peak Wings? @11:00 AM
Another distressing economic forecast: "Most experts predict that wing prices will continue to rise at least until the Super Bowl in February, when a lot of wings are sold and prices peak. Even afterward, demand looks set to remain strong. Pizza Hut announced this month that it would expand the availability of its wings menu, which it calls WingStreet; in 3,000 stores today, the menu will be added to 2,000 stores in the near future. Adam J. Scott, a founder of Wing Zone, an Atlanta-based chain with 80 restaurants in 20 states, said the days of cheap wings might be gone forever. That is, unless something changes on the supply side." That sucks. What am I gonna have the bourbon wash down now? Tarted-up chicken fingers? I don't THINK SO. 11
U.S. Job Losses By Geography @12:10 PM
From Flowing Data comes this map of job losses. (The above represents June of 2009.) It's fun to go back to 2004 and watch all the nice green job creation bubbles turn red and DIE. (Also the Katrina explosion is fascinating.) And I don't know, we are reelecting the corporate gift-giving mayor of New York City for what reason, now? 17
Capitalism Working Less Well Than Ever @9:33 AM
A crazy idea is apparently sweeping through the minds of those brilliant fat cats down in Washington: what if capitalists were rewarded for hiring workers? I guess we are setting aside the idea that businesses are already rewarded for hiring workers, because workers create the "things" that businesses "sell." But hey! There are a number of "ideas" floating around. Here is one: "For example, hiring a worker might cost a small business $50,000 annually. But with the tax credit, the cost would fall to $42,350 in the first year, and then be $44,900 the next year. After that, the cost would return to $50,000." And that's when the slight rise in employment would be devastated by mass layoffs. Hilariously, some people are apparently calling this "corporate welfare." You know what is corporate welfare? Not denying massive tax credits to all the corporations that kicked thousands of employees to the curb during the recession. Also then the Times quotes experts, such as an attorney from the "National Federation of Independent Business." Yes, America's third-biggest lobbying outfit, according to Fortune—which spends most of its time lobbying against "the death tax." Interestingly, this outfit scoffs at the idea, even as their latest survey claims that "The 'job generating machine' is still in reverse." 9
Rich People Things, with Chris Lehmann: Egotistical Dubai, $80 Billion in Debt, Is Sliding into the Sea @12:00 PM
All during our new century's orgy of debt-driven real estate expansion, currency floated nowhere else on Earth the way it did—with pure, gleaming, world-conquering ardor—in Dubai. The island city-state in the Persian Gulf seemed less like an actual spot on the map than a Christo-style performance-art installation, an open-ended meditation on the many sleek surfaces of the monied life. Sheik Mohammed bin Rashid al Maktoum, the royal patriarch of the place, had a vision-conveniently spelled out in his 2006 autobiography, My Vision-to make Dubai "the world's number one city for commerce, tourism, and services." The trick would be to leverage all the petrodollars and beguiling debt instruments then sluicing around the once-sleepy outpost in the United Arab Emirates and suddenly you would have a kind of Vegas-on-steroids. And like that great American destination for capital immolation, Sheik Mohammed's playground would conjure reveries of recumbent money right out of the desert sand. READ MORE 9
Broke California Searching For Change In Couch Cushions Before It Sells Couch @3:10 PM
"By posting items online, Californians and people from other states and around the world can participate in the Great California Garage Sale. This is a win-win for the state and for shoppers. Together we are eliminating waste and providing great deals in this tough economy. I encourage everyone to log on or attend this great event."
—California Governor Arnold Schwarzenegger promotes the state's online sale of unneeded office supplies, automobiles, confiscated items and other accessories. 3
