Stock Market Crash Expected In 2008 To Be Worse Than 1929

[Soldier4Christ]

Jobless claims jump to 16-year high
Continuing claims touch 4 million, highest level since 1982

Meanwhile, the number of people receiving benefits rose to 4.01 million in the week ending Nov. 8, the highest level in 26 years.

"This is a horribly weak report," wrote John Ryding and Conrad DeQuadros of RDQ Economics. Recent trends in initial claims are consistent with a staggering loss of 400,000 nonfarm payrolls, they said.

The four-week average of claims -- which smoothes out events like weather or strikes -- also climbed in the latest week, rising by 15,750 to 506,500, the government said. That was the highest since January 1983.

The insured unemployment rate increased to 3.0% from 2.9%.

The claims numbers are the latest gloomy indicator for the U.S. economy. They come as Senate Democrats are seeking to extend unemployment insurance for workers whose benefits have expired.
The House has passed the legislation, and a Senate vote could come as early as Thursday.
The Senate bill would take 60 votes to pass. President Bush has threatened to veto the bill, saying it's fiscally irresponsible.

Federal Reserve policy makers are expecting the economy to contract for as long as a year. There is a risk that the slowdown could persist even longer, according to edited minutes of a closed-door meeting of the Federal Open Market Committee on Oct. 28-29. See full story.

The FOMC now projects the unemployment rate will average between 6.3% and 6.5% at the end of this year and will average between 7.1% and 7.5% next year. Three months earlier, the FOMC had expected unemployment to remain below 6% throughout the period.

The jobless rate hit 6.5% in October

[Soldier4Christ]

Bush Will Support Extension of Jobless Benefits, Perino Says 

President George W. Bush will support an extension of unemployment compensation benefits after the government reported first-time claims climbed to their highest since 1992.

``Because of the tight job market, the president believes it would be appropriate to further extend unemployment benefits, and he would sign the legislation now pending in Congress,'' White House spokeswoman Dana Perino said in an e-mailed statement to reporters.

The Senate is scheduled to vote today on a House-passed measure to extend unemployment benefits by at least seven weeks. People in states with a jobless rate higher than 6 percent would get an additional 13 weeks. The House passed the measure 368-28 on Oct. 3.

Perino's statement came after the Labor Department reported that initial jobless claims increased by 27,000 to a higher-than- forecast 542,000 in the week ended Nov. 15, from 515,000 the prior week. The number of people staying on benefit rolls in the prior week rose to 4.012 million, the most since December 1982.

[Shammu]

Boom turns to gloom as crisis hits Dubai
Thu Nov 20, 2008 11:25am EST

By Thomas Atkins - Analysis

DUBAI (Reuters) - The seaside emirate of Dubai shifted into crisis mode this week as its breakneck building boom stalled, its lending bonanza evaporated and the government pondered wider steps to rescue banks.

Dubai -- self-styled bling capital of the Middle East, nightclub hotspot for the teetotalling Gulf and home to the world's tallest building and biggest mall -- has gone pear-shaped.

"It's gotten pretty ugly out there," analysts at Nomura Investment Banking wrote in a note this week, describing Dubai's property market as "a full-scale frenzy in which speculation went largely unchecked until it was very late."

The result may be a new business model for the emirate, one based less on debt and speculation.

Dubai's response is now being hammered out by a committee of business and government leaders charged with steering the emirate through the crisis and perhaps throwing its high-debt business model out the window.

Big developers have started firing staff and paring projects, banks like Emirates NBD ENBD.DU have blocked consumer credit to employees of companies at risk, and at least one major mortgage company has stopped lending altogether.

"Lenders blinded by rising oil prices and borrowers spellbound by easy returns have helped build a mountain of private sector debt in parts of the region that has generated an illusion of excess and abundance," Nomura said.

Now, investors fear that individuals and corporations alike will have trouble paying back Dubai's non-bank foreign currency debt estimated at just under $70 billion, according to estimates by ratings agency Fitch.

Shares in the region have lost around $1 trillion since the beginning of the year as investors fled. The UAE finance ministry said last month it would inject 70 billion dirhams ($19 billion) into the banking system, and is already looking at doing more to keep interbank liquidity flowing.

Many had hoped that the six countries of the Gulf Cooperation Council (GCC) would escape the crisis due to their massive current account surpluses from energy exports.

"Dubai is the most vulnerable, as it has little oil and has been booming on the oil surpluses from the GCC, Iran and Russia," said analysts at Citibank this week.

DUBAI INC.

Dubai Inc. -- the name applied to the emirate because it is run more as a business than a state -- now faces a major overhaul and has taken on teams of consultants to advise on how it might reshape itself in an era of weaker credit, rising competition, falling speculation and narrower profit margins.

With barely any oil to call its own within the loose UAE confederation, Dubai made its bid for fame by housing banks, retail, media, shipping and logistics enterprises and by billing itself as a safe haven in a volatile region for investors.

Post-crisis, banks and property firms are likely to merge, developers retrench, and the wild culture of speculation grow tame.

"The solution is a comprehensive effort to consolidate the myriad of companies that make up Dubai Inc.," Citibank said.

In addition, some suggest that the monetary regimes in the Gulf -- all, except Kuwait, which peg their currencies to the dollar -- may need to restructure as floating regimes instead, a move likely to spur decades-old goals of monetary union.

Few anticipate default given the widespread view that Dubai is too big to fail and the implicit support provided by its neighbor Abu Dhabi -- home to the largest sovereign wealth fund in the world, ADIA.

"We believe Dubai will pull through with some help," Citibank said.

But with the cost of credit for the Gulf's top 22 financial firms rising from 30 basis points over LIBOR in early 2007 to around 200 now, many expect Dubai's spree to halt, plans to be swept from the drawing board, and existing projects to struggle.

The result, in the end, may be the sustainable growth model that Dubai has sought all along.

Boom turns to gloom as crisis hits Dubai

[Soldier4Christ]

Regulators shut down 3 more banks
Combined 213 branches of 2 California organizations to reopen as U.S. Bank branches

In the biggest number of bank seizures yet on a single day, the Federal Deposit Insurance Corp. and state regulators have shut down two banks in Southern California and one in Georgia.

The FDIC said late Friday that U.S. Bank, based in Minneapolis, has acquired the banking operations, including all the deposits, of Downey Savings and Loan Association, F.A., Newport Beach, Calif., and PFF Bank & Trust, Pomona, Calif.

 The combined 213 branches of the two organizations will reopen as branches of U.S. Bank.
As of Sept. 30, Downey Savings had total assets of $12.8 billion and total deposits of $9.7 billion. PFF Bank had total assets of $3.7 billion and total deposits of $2.4 billion, according to the FDIC.
In addition to assuming all the deposits from the two California banks, U.S. Bank will purchase virtually all their assets. The FDIC will retain any remaining assets for later disposition.
The FDIC and U.S. Bank entered into a loss share transaction. U.S. Bank will assume the first $1.6 billion of losses on the asset pools covered under the loss share agreement, equal to the net asset position at close. The FDIC will then share in any further losses. Under the agreement, U.S. Bank will implement a loan modification program similar to the one the FDIC announced in August stemming from the failure of IndyMac Bank, F.S.B. of Pasadena, Calif.
U.S. Bank currently has 353 offices in California. Downey Savings and PFF Bank are not affiliated with each other. Downey Savings has 170 branches in California and five in Arizona, and PFF Bank has 38 branches in California.
The FDIC estimates that the cost to the Deposit Insurance Fund for Downey Savings will be $1.4 billion and $700 million for PFF Bank. U.S. Bank's acquisition of all the deposits of the two institutions was the "least costly" option for the FDIC's DIF compared to alternatives, the FDIC said in a press release.
These were the 21st and 22nd banks to fail in the U.S. this year, and the fourth and fifth banks to close in California.
Earlier on Friday, the FDIC and Georgia regulators announced the seizure of Loganville, Ga.-based The Community Bank. It was the 20th bank failure so far this year amid the ongoing financial crisis.
All of The Community Bank's deposits have been transferred to Tappahannock, Va.-based Bank of Essex, the FDIC said, and all four of The Community Bank's branches will reopen Monday as Bank of Essex.
The Community Bank had total assets of $681 million and total deposits of $611.4 million as of Oct. 17.
Bank of Essex purchased roughly $84.4 million of The Community Bank's assets and paid the FDIC a premium of $3.2 million for the right to assume the failed bank's deposits. The FDIC said it would retain the remaining assets for later disposition.
The FDIC estimated that The Community Bank's failure will cost its Deposit Insurance Fund between $200 million and $240 million. The Community Bank is the third Georgia-based bank to be closed this year.

[Shammu]

4 new reports reveal battered economy
 Martin Crutsinger, Ap Economics Writer
56 mins ago

WASHINGTON – The government released a quartet of reports Wednesday that paint a bleak picture of the nation's economy: Jobless claims remain at recessionary levels, Americans cut back on their spending by the largest amount since the 2001 terrorist attacks, orders to U.S. factories plummeted and new-home sales fell to the lowest level in nearly 18 years.

The Labor Department reported that initial requests for unemployment benefits fell to a seasonally adjusted 529,000 from the previous week's upwardly revised figure of 543,000. But claims remain at recessionary levels. The four-week average, which smooths out fluctuations, rose to 518,000, its highest level since January 1983, when the economy was emerging from a steep recession.

One minor bright spot showed the number of people continuing to claim unemployment insurance dropped unexpectedly to 3.96 million, from the previous week's 4.02 million, which was the highest level in 25 years. The labor market has grown by about half since 1983.

Meanwhile, the Commerce Department reported that consumer spending plunged by 1 percent in October, even worse than the 0.9 percent decline that had been expected. Consumer spending accounts for two-thirds of total economic activity.

Orders to U.S. factories for big-ticket manufactured goods also plunged last month by the largest amount in two years. Orders for durable goods dropped by 6.2 percent, more than double the decline economists expected. The Commerce Department report showed widespread declines throughout manufacturing led by decreases in autos and airplanes.

The department also reported that new-home sales decreased 5.3 percent last month to a seasonally adjusted annual sales pace of 433,000 homes, the lowest level since January 1991, another period when the country was undergoing a steep housing downturn.

The median price of a new home sold in October fell to $218,000, down 7 percent from a year ago, and the lowest since September 2004.

The Dow Jones industrial average rose about 50 points in early afternoon trading Wednesday.

With the economy showing further signs that it is headed into a steep swoon, the administration and the Federal Reserve rolled out two new programs Tuesday that would provide up to $800 billion in an effort to get more loans flowing in such critical areas as mortgage lending, credit cards, auto loans and small business loans.

Credit markets liked the new efforts, but private economists said the new moves were not likely to be the last changes in the government's vast rescue program, which has already undergone significant alterations since it was passed by Congress on Oct. 3.

Analysts believe more work will need to be done because of their expectations that the economy's vital signs will continue to worsen as the country slips into what many believe could be the worst recession since the early 1980s.

The unemployment rate has hit a 14-year high of 6.5 percent, putting pressure on personal incomes. The government reported Tuesday that the overall economy, as measured by the gross domestic product, shrank at an annual rate of 0.5 percent in the July-September quarter, reflecting the fact that consumer spending fell at the fastest pace in 28 years.

Nariman Behravesh, an economist at IHS Global Insight, said he was expecting GDP to shrink at a 4 percent rate in the current quarter, reflecting the battering consumers are taking from the worst financial crisis since the 1930s. He predicted that the economy would remain in recession through the first half of next year.

"We are in the early stages of one of the worst recessions in the postwar period, even factoring in a massive stimulus program," Behravesh.

To revive the economy, President-elect Barack Obama has said a top priority will be working with Congress to enact a stimulus package with the goal of creating 2.5 million new jobs over the next two years. Analysts believe such an effort will require spending between $500 billion to $700 billion, a figure that would be on top of all the money being spent to stabilize the financial system.

In the latest efforts to stabilize the financial system, the Federal Reserve announced Tuesday that it will buy $200 billion in securities backed by different types of debt including credit card loans, auto loans, student loans and loans to small businesses. That market essentially froze in October. These types of loans as a result have become harder to obtain and have carried higher interest rates

The Fed also announced that it will spend $500 billion to buy mortgage-backed securities guaranteed by mortgage giants Fannie Mae and Freddie Mac and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks.

This would greatly expand an initial modest effort announced in September with the goal of creating increased demand for mortgage-related assets. The hope is that this will drive down the price of mortgages and make home loans more available.

Analysts predict the Fed program could send mortgage rates down by as much as one-half to a full percentage point in coming months, helping to spur demand in the beleaguered housing market, which is suffering its worst downturn in decades.

The latest federal moves raised U.S. commitments to contain the financial crisis to nearly $7 trillion — though no one thinks the government will actually spend anything like that figure.

In the case of the Federal Reserve, the amount covers huge loans that financial institutions will have to pay back. In the case of the Treasury rescue effort, the government will at some point sell the stock it owns back to the banks, presumably when the banking system is doing better and the stock will be worth more.

4 new reports reveal battered economy

[Soldier4Christ]

Evangelist seeks national prayer day for economy
'The answer isn't dollars; it's turning back to God'

Internet evangelist and host of LivePrayer Bill Keller is petitioning President Bush and Congress to designate Dec. 18 as a national day of prayer and fasting for the economy.

Despite several government attempts to revive a slumping national economy, the financial crisis remains – a fact, Keller contends, that illustrates America's problems aren't economic but spiritual.

"They have tried everything to fix the economy," Keller told WND, "including throwing a few trillion at the problem, and we are no better than when the 'experts' started to try and fix (it)."

"The crisis is a spiritual problem," said Keller in a statement. "The answer to our economic downfall is not an infusion of trillions of dollars, but the humble prayers of forgiveness and repentance for our sin and rebellion against God."

In a YouTube video LivePrayer released in October, Keller declared, "People are looking for answers from their financial advisors, from their stock brokers, from their elected officials, from the men running for president, from the financial pundits on the TV, from the economists in the financial publications – from every place except where the answer is to be found."

"The answer isn't dollars," Keller said, "it's turning back to God."

Now Keller is hoping President Bush will hear his message by calling Americans to pray.

A long historical precedent exists for presidents calling the nation to prayer and fasting. On March 23, 1798, President John Adams issued a proclamation recommending May 9 of that year as a "day of solemn humiliation, fasting and prayer."

"As the safety and prosperity of nations ultimately and essentially depend on the protection and blessing of Almighty God," Adams wrote. He is proclamation called Americans to "acknowledge before GOD the manifold sins and transgressions with which we are justly chargeable as individuals and as a nation; beseeching him, at the same time, of his infinite Grace, through the Redeemer of the world, freely to remit all our offences, and to incline us, by his holy spirit, to that sincere repentance and reformation which may afford us reason to hope for his inestimable favor and heavenly benediction."

President Abraham Lincoln also called for a national day of "humiliation, fasting and prayer" in 1863. In 1952, a joint resolution by Congress, signed by President Truman, declared an annual prayer day, and in 1988, President Reagan declared the first Thursday of every May as the National Day of Prayer.

In his petition to President Bush and Congress, Keller writes, "Our nation is in the midst of an economic crisis that is not going to be solved by the wisdom of men or any amount of money, but only by the grace and mercy of Almighty God."

The petition continues, "We call upon you as the ones the people of the United States have elected to lead our nation, to follow the example of past Presidents and Congress, and call the people of our land to fast and pray for God's favor and blessings on our economy."

Keller's website invites people to sign the petition and states that he is hoping to hand-deliver at least 250,000 signatures to President Bush, House Majority Leader Nancy Pelosi and Senate Majority Leader Harry Reid Dec. 16.

A former businessman convicted of insider trading in 1989, Keller served two years in federal prison, was released and later earned a degree in biblical studies from Liberty University in Lynchburg, Virginia.

In 1999, Keller launched LivePrayer, which claims to have responded personally to more than 60 million online requests for prayer since its inception and claims its LivePrayer devotional is received daily by over 2.4 million e-mail subscribers.

[nChrist]

I definitely think that Bill Keller of LivePrayer has the ONLY answer unless these times are GOD'S Will. GOD loves to hear our prayers, but we shouldn't get upset if they aren't answered. Maybe we are approaching the ushering in of the Tribulation Period. If so, that would certainly explain many insane and bizarre things happening around the world. Regardless, GOD won't get angry with us for praying.

I think that most Christians have thought about the days we live in many times. I know that I have. It appears that the money losses that started the recession certainly bought 10 TONS of corruption, and we have no idea how much of the money used in the attempted fix was also eaten up in corruption. This evil world appears to be on course for Bible Prophecy. If so, the most joyous event in history for Christians IS SOON.

Love In Christ,
Tom

Psalms 127:1 NASB  Unless the LORD builds the house, They labor in vain who build it; Unless the LORD guards the city, The watchman keeps awake in vain.

[Soldier4Christ]

Economy lost another 533,000 jobs in Nov.
Worst month since December 1974 brings total this year to 1.9 million

Skittish employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, dramatic proof the country is careening deeper into recession.

The new figures, released by the Labor Department Friday, showed the crucial employment market deteriorating at an alarmingly rapid clip, and handed Americans some more grim news right before the holidays.

As companies throttled back hiring, the unemployment rate bolted from 6.5 percent in October to 6.7 percent last month, a 15-year high.
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"These numbers are shocking," said economist Joel Naroff, president of Naroff Economics Advisors. "Companies are sharply reacting to the economy's problems and slashing costs. They are not trying to ride it out."

The unemployment rate would have moved even higher if not for the exodus of 422,000 people from the work force. Economists thought many of those people probably abandoned their job searches out of sheer frustration. In November 2007, the jobless rate was at 4.7 percent.

"I'm worried about our workers who have lost jobs during this downturn," President George W. Bush said in a statement.

He said his administration was working to stabilize markets, in particular the credit markets where tight lending has added to the economy's woes.

"A market that was frozen is thawing," he said.

The U.S. tipped into recession last December, a panel of experts declared earlier this week, confirming what many Americans already thought.

Since the start of the recession, the economy has lost 1.9 million jobs, the number of unemployed people increased by 2.7 million and the jobless rate rose by 1.7 percentage points.

President-elect Barack Obama said the dismal job news underscored the need for forceful action, even as he warned that the pain could not be quickly relieved.

"There are no quick or easy fixes to this crisis ... and it's likely to get worse before it gets better," Obama said. "At the same time, this ... provides us with an opportunity to transform our economy to improve the lives of ordinary people by rebuilding roads and modernizing schools for our children, investing in clean energy solutions to break our dependence on imported oil, and making an early down payment on the long-term reforms that will grow and strengthen our economy for all Americans for years to come."

To provide relief, the Bush administration will continue to concentrate on ways to bust through a credit jam that is feeding prominently into the economy's problems, Commerce Secretary Carlos Gutierrez told The Associated Press in an interview. "We're going to stay focused on that like a laser," he said.

On Wall Street, stocks slid. The Dow Jones industrials were down more than 180 points in morning trading.

[Soldier4Christ]

Caterpillar cuts ties with some contract workers

Caterpillar Inc. has started cutting ties with some contract workers as the world's largest maker of construction and mining equipment tries to lower costs amid the global economic slowdown.


Caterpillar Inc. has started cutting ties with some contract workers as the world's largest maker of construction and mining equipment tries to lower costs amid the global economic slowdown.

The company said Friday it notified agencies that employ the workers in Peoria, Ill., where Caterpillar is based, and the surrounding area, but declined to specify how many workers would be affected.

Jim Dugan, a Caterpillar spokesman, said similar work force reductions already had been made in North Carolina and Europe. The Peoria workers, he said, perform tasks ranging from factory work to office duties.

The cuts are part of a cost-reduction plan that also includes limiting travel, external meetings and events.

In a statement, the company said "certain Caterpillar business units are taking steps to manage overall work force and production schedules to appropriate levels during this time."

Caterpillar declined to provide details about the reduction of its so-called flexible work force, which includes the contract workers, "because these individuals are employees of these agencies rather than Caterpillar."

In the Peoria area, Caterpillar's contract workers include employees of Volt Information Sciences Inc. and ATS Corp. Representatives of those companies did not immediately respond to phone messages seeking comment.

Caterpillar spokesman Dugan said the company also had a small number of voluntary layoffs in Britain and a "very limited" number of notifications among part-time employees in Britain and the United States.

Caterpillar employs about 112,000 people worldwide, excluding contract workers.

In October, Caterpillar reported a 6 percent drop in third-quarter profit, saying higher steel and freight costs had offset record global sales. It forecast virtually flat sales for 2009, noting "recessionary conditions" in North America.

Caterpillar, known for its trademark yellow-and-black earth-moving machinery, has broad geographic reach and a range of products that tap into various global industries.

Shares of Caterpillar rose 74 cents, or nearly 2 percent, to close at $38.26 on Friday. The stock is down 55 percent since peaking at $85.96 in April.

[Soldier4Christ]

Being that this is in my local area it hits home pretty hard. There are 20 of my family members including my two sons that rely on contract work from Caterpillar. My youngest son has already had his job cut and my oldest has been notified of him most likely getting cut soon. My oldest just bought a house so it is especially of concern to him.

[nChrist]

Being that this is in my local area it hits home pretty hard. There are 20 of my family members including my two sons that rely on contract work from Caterpillar. My youngest son has already had his job cut and my oldest has been notified of him most likely getting cut soon. My oldest just bought a house so it is especially of concern to him.

Brother,

I'm sorry to hear about this and will be praying for your family. I would assume that finding a job as good as one working for Caterpillar would be difficult.

So far, the economy here is pretty stable. We don't usually have many boom or bust times because of the large percentage of the population that's either active duty or retired Military. In fact, they have been increasing the size and functions of Ft. Sill to take over missions of other bases that were closed. I don't remember the overall manpower increases, but it has been significant.

Lawton Ft. Sill was just honored as being the best place to live in Oklahoma, and Ft. Sill has a lengthy history of awards. We don't have a bunch of folks getting rich here, but I would have to say that we have a strong middle-class community. We do have some industry here, but I don't know how they are doing.

[Soldier4Christ]

None of my family works directly for Caterpillar. They work for companies that Cat has subcontracted work out to. It is these contracts that Cat is cutting right now with a possibility in the near future of laying off some of their own workers.

We all appreciate the prayers, brother.

[Soldier4Christ]

Dow Chemical cuts 11% of workforce, closes plants
Will eliminate 5,000 full-time jobs to address 'current economic realities'

Dow Chemical Co. said Monday that it will eliminate about 5,000 full-time jobs, or about 11% of its global staff, along with an additional 6,000 positions in its contractor workforce to address "current economic realities."

The Dow Chemical Company said that it will idle 180 plants and shutter 20 facilities in "high-cost locations," cutting about 30% of its total production.

The news follows similar announcements in the last week at DuPont Co. and AT& T Inc. which have been hit by dwindling consumer spending and continued weakness in the housing and automotive industries.

 "The entire industry supply chain [that Dow serves], all the way to what the consumer buys -- outside of food and health care -- is in a recessionary model," Chairman and Chief Executive Andrew Liveris said on a conference call with analysts.

Dow Chemical provides materials for pharmaceuticals, packaging, auto components, construction, textiles, electronics and more.

Due to the restructuring, Dow said that it will post a pretax charge in the current quarter of $700 million, including $350 million for severance packaged and a $350 million related to the closing of facilities. That should impact quarterly earnings by 50 cents to 60 cents a share.

Dow also will be hit with a related $80 million charge in 2009, but the move should eventually result in $700 million in annual cost savings by 2010, the company said.

"We are dialing down, and in the case of the 180 [plants to be idled], we can turn them all the way off ... to minimize the cash burn," according to Liveris.

By idling plants, rather then shuttering them completely, he said Dow will be able to ramp up production once the economy improves without hefty startup costs.

Shares of Dow were up 6.7% at last check to $20.28. For the year, the stock is down nearly 50%.
The company is moving to raise cash ahead of closing an acquisition deal with Rohm & Haas Co., targeted to close in early 2009. Some investors and analysts have worried over financing the $15 billion deal with the credit markets in turmoil.

Last week, Dow reaffirmed a new joint-venture company with Kuwait's petrochemical Industries Co. will provide the cash it needs to close the deal.

It also plans to reduce working capital next year by $2 billion and have about $600 million in lower capital spending, reducing 2009 cash requirements by about $2.5 billion and delivering an additional $1 billion in free cash flow, Chief Financial Officer Geoffrey Merszei said.

Concern also has been raised over the future of Dow's dividend, an option Liveris said is not on the table.

"Dow is the only company in the Fortune 200 to have paid its regular quarterly cash dividend without reduction or interruption since 1912," he commented. "I have said it before, but I want to say it again: We will not break that streak."

Monday's announcement also represents an acceleration of a broader company strategy to decentralize Dow into three different business models with a leaner, more-efficient corporate center.
"We have the portfolio in hand to move to this new model," Liveris added. "Clearly we are accelerating this move, given the deterioration in the world economy and in most of our markets."

Specifics of the new operating models will be outlined next year, the company said. But at its heart is an agreement made last year in which Dow sold a 50% interest in its raw plastics businesses to Petrochemical Industries, a subsidiary of state-run Kuwait Petroleum Corp. In turn, Dow gained greater access to emerging-market growth and petrochemical materials used in its products.

It also will result in a 50-50 joint venture, K-Dow, which is expected to begin operations by Jan.1, and have annual sales of $15 billion. Further, Dow said that it expects to receive $9 billion in total pretax proceeds once the deal is complete.

Completion of the deal will mark a critical milestone in Dow Chemical's hopes to transform into an earnings-growth company from one tied to cyclical conditions.

[Soldier4Christ]

Now a federal bailout for nation's schools?
1 superintendent to seek as much as $500 million for district

Saying that renovating old schools and buying state-of-the-art equipment will create jobs and boost Florida's sagging economy, the Broward County School Board on Tuesday unanimously approved a resolution giving its superintendent permission to seek millions from the federal government.

Broward Schools Superintendent James Notter said he would seek as much as $500 million for the district, most of which would be earmarked for the capital budget. That money goes toward construction projects and purchasing equipment such as computers and buses.

"It is an economic stimulus package," Notter said. "… That puts a lot of people to work."

Though the resolution doesn't call the request a bailout, some board members likened it to the federal money loaned to the financial industry and what's proposed for the automobile industry.

"This would be the perfect time. They're bailing out financial institutions. They're bailing out the car companies," said board member Beverly Gallagher. "… Without a good public education system, you don't have a good workforce."

The district already has cut $94 million for this school year, and expects at least $40 million more should the Legislature convene a special session in Tallahassee.

[Soldier4Christ]

Yahoo Layoffs Today May Not Be Last

Yahoo began laying off 1,500 workers on Wednesday as part of a plan, announced in October, to slash expenses by $400 million a year. The cost cutting, however, may have to go deeper in the coming year.

“There could be additional staff reductions next year,” said Brad Williams, a Yahoo spokesman. “It depends on the decisions we make about prioritization, and on things we can’t predict in the economy.” Mr. Williams added: “We are trying to instill a culture of cost-discipline in our business.”

Yahoo critics have long said that bloat was far more common than cost discipline at the Internet portal. And when it announced the cuts in October, Yahoo said that further consolidation would be likely, including the closing of some offices and the move of others to lower-cost locations.

On Wednesday, Mr. Williams expanded a bit on those plans. Yahoo is closing offices in Dusseldorf, Hamburg, Stockholm, Amsterdam, Oslo, and Copenhagen, he said. Next year, similar closures will be made at smaller offices in the United States and Asia.

Mr. Williams also said that the job cuts today will affect most parts of the company, but that Yahoo executives are still evaluating which projects will be de-emphasized or cut altogether. “This is more of a cost reduction rather than business prioritization,” he said about the layoffs. “Business prioritization will continue going forward. We are looking at businesses we may put into maintenance mode.”

In addition, the company is going to be looking for ways to cut expenses further, by curtailing travel, procurement and other areas.

Yahoo’s chief executive, Jerry Yang, penned a farewell note to laid-off employees on the company’s blog. If you want to know how managers are supposed to notify employees whose jobs are being cut, check out Valleywag.

Many investors say the layoffs were a necessary cost-cutting measure, but argue that a more dramatic change will be needed to turn Yahoo’s fortunes around. On Wednesday, Ivory Investment Management, a Los Angeles-based fund that owns about 21.4 million shares, or about 1.5 percent of Yahoo, urged the board to sell the company’s search business to Microsoft. Other large Yahoo shareholders have also argued privately in favor of a deal with Microsoft, whose chief executive, Steve Ballmer, said last week that it remained open to such a deal. Yahoo board member Carl Icahn has also spoken in favor of a deal with Microsoft.

Yahoo has also been talking for months with Time Warner about a possible acquisition of its AOL Internet unit. Yet, with Yahoo in the midst of a search for a new chief executive to replace Mr. Yang, it is not clear that a deal with Microsoft or AOL will get done soon — or at all.