GM cutting 5,100 white-collar workers in Canada and the U.S. !

---

http://www.cbc.ca/money/story/2008/0...te-collar.html

GM cutting 5,100 white-collar workers in Canada, U.S.
Last Updated: Wednesday, July 30, 2008 | 3:35 PM ET Comments58Recommended37The Associated Press
General Motors Corp. plans to cut 15 per cent of its U.S. and Canadian salaried workforce — or around 5,100 jobs — by Nov. 1 as part of a plan to slash billions of dollars and help the automaker ride out a slump in U.S. sales.

A GM official declined to confirm the specific numbers but indicated they were generally accurate. The official asked not to be named because the company had not planned to release the numbers until later.

Word of the cuts came two days before GM plans to release its second-quarter earnings. Analysts surveyed by Thomson Financial are predicting a loss of $2.63 US per share amid plummeting truck and sport utility vehicle sales.

GM said in mid-July that it would cut white-collar costs in the U.S. and Canada by more than 20 per cent as part of a larger cost-cutting plan, but it wouldn't say how many workers would leave.

GM president and chief operating officer Fritz Henderson said at the time the company hoped most of the cuts would be made through attrition, retirements and buyout offers, but that the company would consider involuntary layoffs.

GM, Ford Motor Co. and Chrysler LLC have announced salaried layoffs in recent weeks as the U.S. market stumbles through its slowest year in more than a decade. Ford plans to cut 15 per cent of its salaried costs by Friday, while Chrysler plans to cut 1,000 salaried jobs worldwide by Sept. 30.

Nissan North America Inc. also offered buyouts to around 6,000 salaried and hourly employees at its two Tennessee plants Wednesday.

GM announced the cost-cutting plan July 15 after its shares hit a 54-year low. The automaker said it planned to save $15 billion by cutting salaried and hourly jobs, selling assets, suspending its dividend and eliminating health care for salaried retirees over age 65.

New layoff filings jump as companies retrench

By JEANNINE AVERSA, AP Economics Writer1 hour, 27 minutes ago

The number of newly laid off people filing claims for unemployment benefits bolted past 400,000 last week as companies trimmed their work forces to cope with a slowing economy.

The Labor Department reported Thursday that the number of new applications filed for these benefits rose by a seasonally adjusted 34,000 to 406,000 for the week ending July 19.

That matched the level seen in late March. The last time claims were higher was after the devastation of the Gulf Coast hurricanes in mid-September 2005. Then, they spiked to 425,000.

The new snapshot of layoffs was worse than economists were forecasting. They were expecting claims to rise to 375,000 according to the consensus estimate of Wall Street economists surveyed by Thomson/IFR.

A year ago, new claims were much lower — at 308,000. The rise in claims underscores the deterioration in employment conditions.

Meanwhile, the number of people continuing to draw unemployment benefits dipped slightly to 3.1 million for the week ending July 12, the most recent period for which that information is available. However, a year ago, that figure stood at 2.54 million.

Several companies that announced job cuts in July are: IndyMac Bancorp Inc., Chrysler LLC, Pilgrim's Pride and American Axle.

Nervous employers, chafing under high energy prices and uncertain about the economy's direction and their own sales prospects, have cut jobs for six months in a row. That has left total job losses at 438,000 so far this year, the government reported earlier this month.

The unemployment rate didn't budge at 5.5 percent in June, after zooming in May by the most in two decades. The unemployment rate is expected to climb to 6 percent or higher by early next year.

The Federal Reserve, in a fresh snapshot of business conditions released on Wednesday, said that the country is getting whammed by both slower growth and rising prices for fuel, food and other things.

Consumer spending, a major shaper of national economic activity, was reported as sluggish or slowing in many places, although the government's tax rebates spurred sales for electronics and some other goods, the Fed reported.

One of the biggest factors influencing whether consumers will keep their pocketbooks and wallets open in the months ahead, is the state of the jobs market. If job creation and wage growth continue to falter, that could spell more trouble for the economy, analysts say.

However, faced with dueling threats — sluggish growth and higher inflation — the Fed, for now, is expected to hold a key interest rate steady at 2 percent when it meets next on Aug. 5.

Out of concern about an inflation flare-up, the Fed in June halted a nearly yearlong rate-cutting campaign aimed at shoring up the wobbly economy.

The Fed isn't inclined to lower rates again because it will aggravate inflation. Yet, if it were to boost rates too soon to fend off inflation, that could deal a set back to the fragile economy and the already crippled housing market.

The joy of it all...as the evil cloud of uncertainty decends upon us from one side and the flood of inflation grips us from the other...and still, many do not see it coming...this was originally written by Doomer Doug (Doug Nolan)...and was written before the House sent the knife into the back of the taxpayer this afternoon...and the Senate will follow suit tomorrow or Friday AM...and then GW will obligingly sign it because that is what his handlers have told him to do...sad is what this is...

"Earlier I warned about a stock market crash, but that is merely a side show in my view. What I am writing about tonight is the final phase of the ongoing American financial collapse.

So here it is. One half of the American adult working population makes $18,000 or less. Another 30 to 40% makes $36,000 or less. the rest make up to $115,000. After that you are dealing with the 1% and the elite. So, roughly 90% of the American population makes under $3000 gross a month. The under $18,000 crowd is in the $1500 a month, or less, sometimes much less. We are talking about "consumer spending" being carried by people who "take home" between $1200 and $2500 a month. With many of them under $1200.

In 60 to 90 days, from September 23 to October 23, people are going to get hit with 40% electric, propane and natural gas price increases from their utilities. This is the final 40% of 60% from 2007 and early 2008. 100% energy increases, at a 8% per month rate. This is in addition to 30 to 75% food price increases so far, with another 20% to 50% in the next 60 to 90 days.

All of which will come out of a consumer netting $1200 to $2500 a month. All of which has been going on for years now. The critical factor this time is the capacity to get debt has collapsed.

At all levels of American society the ability to borrow has been curtailed or ended. The reason the system is going down in 90 days: it will be an ongoing process into spring 2009, is people will be on a cash and carry basis, or cash on the spot.

NO HOME EQUITY LOANS! NO CREDIT CARDS! NO BANK LOANS. ETC. ETC.

SO, the way I see it is consumer spending will simply cease for all, to use a military term, mission essential items. People will write the check for the 500 gallon heating oil tank fill, at $1500 in early October and then they will not spend anything else, other than food, shelter and heat.

Every other type of consumer spending, disposable income spending, will simply be disposed of. And when that happens, the 70% of our GDP that is consumer spending will suddenly be 40%. And when that happens, the system will simply lock up and freeze.

This is how I see it. Consider yourself forewarned. It will be a thin Christmas retail season for sure. And after the New Year, 2009 the retail blood will flow in the streets. By early 2009, a wave of credit card defaults, etc. etc. etc will have taken down many banks.

Yep, my view is the "October 8th surprise" is people beginning the process of spending all their monthly income just to eat, stay warm and live, with NOTHING left over. NOTHING. Followed by the elderly, the poor and the street crazies dying."

Alice Cooper's "Welcome to My Nightmare" seems so appropriate...

U.S. Lawmakers Reach Deal on Fannie, Freddie Bill (Update1)


By Brian Faler


July 22 (Bloomberg) -- U.S. lawmakers reached agreement on a rescue plan for Fannie Mae and Freddie Mac that the House may vote on tomorrow, Representative Barney Frank said.


Under a modified version of proposals made by the Bush administration, the Treasury Department would gain authority to inject capital into the two largest U.S. mortgage finance companies, through loans and equity investments.


The Treasury would be barred from providing aid that would cause a breach in the federal debt ceiling under the agreement, a constraint aimed at limiting any taxpayer losses. The plan would give Treasury Secretary Henry Paulson power to restrict the companies' ability to pay dividends and require regulatory approval of the salaries of top executives.


``The package we have got is fully acceptable to Treasury,'' along with lawmakers in the Senate, said Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee. ``Nobody is for everything that's in it or got everything in it he wanted, but we negotiated a lot with the Treasury and the Senate.''

bulletin
hurricane dolly advisory number 10
nws tpc/national hurricane center miami fl
042008 400 pm cdt tue jul 22 2008

...dolly becomes a hurricane...the second of the 2008 hurricane season... A hurricane warning remains in effect for the coast of texas from brownsville to corpus christi...and for the northeast coast of mexico from rio san fernando northward to the border between mexico and the united states. Preparations to protect life and property should be rushed to completion. A tropical storm warning remains in effect from north of corpus christi to san luis pass. A tropical storm warning and a hurricane watch is in effect from la pesca to south of rio san fernando. For storm information specific to your area...including possible inland watches and warnings...please monitor products issued by your local weather office. At 400 pm cdt...2100z...the center of hurricane dolly was located near latitude 24.6 north...longitude 95.3 west or about 165 miles... 265 km...east-southeast of brownsville texas. Dolly is moving toward the northwest near 10 mph...17 km/hr. This motion should bring the core of dolly near northeastern mexico or extreme southern texas on wednesday. Maximum sustained winds have increased to near 75 mph...120 km/hr...with higher gusts. Dolly is a category one hurricane on the saffir-simpson scale. Some strengthening is forecast before landfall. Hurricane force winds extend outward up to 15 miles...30 km...from the center...and tropical storm force winds extend outward up to 160 miles...260 km. Tropical storm force winds should begin to reach the coasts of northeast mexico and southern texas later tonight. Minimum central pressure reported by a hurricane hunter aircraft was 986 mb...29.12 inches. Dolly is expected to produce total rain accumulations of 6 to 10 inches...with isolated amounts of 15 inches...over much of south texas and northeastern mexico over the next few days. Coastal storm surge flooding of 4 to 6 feet above normal tide levels...along with large and dangerous battering waves...can be expected near and to the north of where the center makes landfall. A few tornadoes are possible overnight across the lower and middle texas coasts. Repeating the 400 pm cdt position...24.6 n...95.3 w. Movement toward...northwest near 10 mph. Maximum sustained winds...75 mph. Minimum central pressure...986 mb. An intermediate advisory will be issued by the national hurricane center at 700 pm cdt followed by the next complete advisory at 1000 pm cdt. $$ forecaster avila

...Dolly a little stronger...NOAA plane in the area...

a Hurricane Warning is in effect for the coast of Texas from
Brownsville to Port O'Connor.  A Hurricane Warning is also in
effect for the northeast coast of Mexico from Rio San Fernando
northward to the border between Mexico and the United States.
A Hurricane Warning means that hurricane conditions are expected
within the warning area within the next 24 hours.  Preparations to
protect life and property should be rushed to completion.

A Tropical Storm Warning is in effect from north of Port O'Connor to
San Luis Pass.  A Tropical Storm Warning means that tropical storm
conditions are expected within the warning area within the next 24
hours.

A Tropical Storm Warning and a Hurricane Watch is in effect from La
Pesca to south of Rio San Fernando.   A Hurricane Watch means that
hurricane conditions are possible within the watch area...generally
within 36 hours.

For storm information specific to your area...including possible
inland watches and warnings...please monitor products issued
by your local weather office.

At 700 am CDT...1200z...the center of Tropical Storm Dolly was
located near latitude 23.7 north...longitude 94.0 west or about 265
miles...425 km...southeast of Brownsville Texas.

Dolly has slowed down a little and is now moving toward the
west-northwest near 13 mph...20 km/hr.  This general motion should
continue today with a further decrease in forward speed...followed
by a turn to the northwest on Wednesday.  On this track...the
center of Dolly should be very near the western coast of the Gulf
of Mexico on Wednesday.

Data from from a NOAA plane indicate that maximum sustained winds
have increased to near 65 mph...100 km/hr...with higher gusts.
Additional strengthening is forecast...and Dolly is expected
to become a hurricane prior to landfall.

Tropical storm force winds extend outward up to 160 miles...260 km
from the center.

Minimum central pressure just reported by a NOAA hurricane hunter
plane was 993 mb...29.32 inches.

Dolly is expected to produce total rain accumulations of 4 to 8
inches...with isolated amounts of 15 inches...over much of south
Texas and northeastern Mexico over the next few days.

Coastal storm surge flooding of 4 to 6 feet above normal tide
levels...along with large and dangerous battering waves...can be
expected near and to the north of where the center makes landfall.

Repeating the 700 am CDT position...23.7 N...94.0 W.  Movement
toward...west-northwest near 13 mph.  Maximum sustained winds...65
mph. Minimum central pressure...993 mb.

The next advisory will be issued by the National Hurricane Center at
1000 am CDT.

$$
Forecaster Avila

bulletin tropical storm dolly advisory number 7 nws tpc/national hurricane center miami fl al042008 1000 pm cdt mon jul 21 2008 ...hurricane warnings issued... At 10 pm cdt...0300 utc...a hurricane warning has been issued from brownsville to port o'connor texas. A hurricane warning means that hurricane conditions are expected within the warning area within the next 24 hours. Preparations to protect life and property should be rushed to completion. At 10 pm cdt...a tropical storm warning has been issued from north of port o'connor to san luis pass. A tropical storm warning means that tropical storm conditions are expected within the warning area within the next 24 hours. At 10 pm cdt...the government of mexico has issued a hurricane warning from rio san fernando northward to the border between mexico and the united states. At 10 pm cdt...the government of mexico has issued a tropical storm warning and a hurricane watch from la pesca to south of rio san fernando. A hurricane watch means that hurricane conditions are possible within the watch area...generally within 36 hours. For storm information specific to your area...including possible inland watches and warnings...please monitor products issued by your local weather office. At 1000 pm cdt...0300z...the center of tropical storm dolly was located near latitude 23.1 north...longitude 92.8 west or about 320 miles...515 km...east of la pesca mexico and about 435 miles...695 km...southeast of corpus christi texas. Dolly is moving toward the west near 17 mph...28 km/hr. A turn to the west-northwest is expected tomorrow with a decrease in forward speed...followed by a turn to the northwest on wednesday. On this track...the center of dolly should be very near the western coast of the gulf of mexico on wednesday. Maximum sustained winds are near 50 mph...85 km/hr...with higher gusts. Dolly is expected to become a hurricane prior to landfall. Tropical storm force winds extend outward up to 200 miles...325 km from the center. Estimated minimum central pressure is 999 mb...29.50 inches. Dolly is expected to produce total rain accumulations of 4 to 8 inches...with isolated amounts of 15 inches...over much of south texas and northeastern mexico over the next few days. Dolly is expected to produce additional amounts of 1 to 3 inches over the northern yucatan peninsula. Coastal storm surge flooding of 4-6 feet above normal tide levels...along with large and dangerous battering waves...can be expected near and to the north of where the center makes landfall. Repeating the 1000 pm cdt position...23.1 n...92.8 w. Movement toward...west near 17 mph. Maximum sustained winds...50 mph. Minimum central pressure...999 mb. An intermediate advisory will be issued by the national hurricane center at 100 am cdt followed by the next complete advisory at 400 am cdt. $$ forecaster franklin

...Dolly now over the warm waters of the Gulf of Mexico... at 1100 am EDT...1500 UTC...a Hurricane Watch is issued for theTexas coast from Brownsville northward to Port O'Connor. AHurricane Watch means that hurricane conditions are possiblewithin the watch area...generally within 36 hours. At 1100 am EDT...a tropical storm watch is issued for the Texascoast from north of Port O'Connor to San Luis Pass. A tropicalstorm watch means that tropical storm conditions arepossible within the watch area...generally within 36 hours. At 1100 am EDT...the government of Mexico has issued a HurricaneWatch from Rio San Fernando Mexico northward to the U.S.Border...and a tropical storm watch from La Pesca Mexico northwardto Rio San Fernando. A Tropical Storm Warning remains in effect for the Yucatan Peninsulaof Mexico from the border with Belize to Campeche Mexico. For storm information specific to your area...including possibleinland watches and warnings...please monitor products issuedby your local weather office. At 1100 am EDT...1500z...the center of Tropical Storm Dolly waslocated near latitude 22.1 north...longitude 89.5 west or about 55miles... 90 km...north-northeast of Progreso Mexico. Dolly is moving toward the west-northwest near 18 mph...30 km/hr. Agradual decrease in forward speed is forecast during the nextcouple of days...with little change in the direction of motion. Onthis track...Dolly will be approaching the coast of the westernGulf of Mexico by Wednesday. Maximum sustained winds are near 50 mph...85 km/hr...with highergusts. Strengthening is forecast...and Dolly could become ahurricane by tomorrow. Tropical storm force winds extend outward up to 175 miles...280 kmfrom the center. The estimated minimum central pressure based on recent aircraft datais 1005 mb...29.68 inches. Dolly is expected to produce total rain accumulations of two to fourinches across the northern Yucatan Peninsula of Mexico withisolated maximum amounts up to six inches. Repeating the 1100 am EDT position...22.1 N...89.5 W. Movementtoward...west-northwest near 18 mph. Maximum sustained winds...50mph. Minimum central pressure...1005 mb. An intermediate advisory will be issued by the National HurricaneCenter at 200 PM EDT followed by the next complete advisory at 500PM EDT. $$Forecaster Knabb

...Dolly about to emerge off the northern coast of Yucatan...
A Tropical Storm Warning is in effect for the Yucatan Peninsula of
Mexico from the border with Belize to Campeche Mexico.
At 8 am EDT...1200 UTC...the government of Belize has discontinued
the tropical storm watch for the coast of Belize.
Interests in the western Gulf of Mexico should monitor the progress
of Dolly.

For storm information specific to your area...including possible
inland watches and warnings...please monitor products issued
by your local weather office.

At 800 am EDT...1200z...the center of Tropical Storm Dolly was
located near latitude 21.6 north...longitude 88.7 west
or about 65 miles...105 km...east-northeast of Progreso Mexico.

Dolly is moving toward the west-northwest near 16 mph...26 km/hr.  A
continued west-northwestward motion is expected during the next
couple of days with a decrease in forward speed on Tuesday.

Maximum sustained winds are near 50 mph...85 km/hr...with higher
gusts.  Strengthening is expected to begin today as the center of
the storm moves out into the Gulf of Mexico...and Dolly could
become a hurricane by Tuesday.

Tropical storm force winds extend outward up to 175 miles...280 km
from the center.

The estimated minimum central pressure based on preliminary reports
from NOAA reconnaissance aircraft is 1005 mb...29.68 inches.

Dolly is expected to produce rainfall of 4 to 6 inches across the
northern Yucatan Peninsula of Mexico and in western Cuba...with
isolated maximum amounts up to 10 inches.

Repeating the 800 am EDT position...21.6 N...88.7 W.  Movement
toward...west-northwest near 16 mph.  Maximum sustained winds...50
mph. Minimum central pressure...1005 mb.

The next advisory will be issued by the National Hurricane Center at
1100 am EDT.

$$
Forecaster Knabb


 

There may well be a storm track change on Trop Storm Dolly by morning...

BULLETIN
TROPICAL STORM DOLLY SPECIAL ADVISORY NUMBER 1
NWS TPC/NATIONAL HURRICANE CENTER MIAMI FL AL042008
1145 AM EDT SUN JUL 20 2008

...FOURTH TROPICAL STORM OF THE ATLANTIC SEASON FORMS IN THE WESTERN
CARIBBEAN SEA...

AT 1145 AM EDT...1545 UTC...THE GOVERNMENT OF MEXICO HAS ISSUED A
TROPICAL STORM WARNING FOR THE YUCATAN PENINSULA OF MEXICO FROM THE
BORDER WITH BELIZE TO CAMPECHE MEXICO. A TROPICAL STORM WARNING
MEANS THAT TROPICAL STORM CONDITIONS ARE EXPECTED WITHIN THE
WARNING AREA WITHIN THE NEXT 24 HOURS.

FOR STORM INFORMATION SPECIFIC TO YOUR AREA...INCLUDING POSSIBLE
INLAND WATCHES AND WARNINGS...PLEASE MONITOR PRODUCTS ISSUED
BY YOUR LOCAL WEATHER OFFICE.

AT 1145 AM EDT...1545Z...THE CENTER OF TROPICAL STORM DOLLY WAS
LOCATED NEAR LATITUDE 18.4 NORTH...LONGITUDE 84.2 WEST OR ABOUT 270
MILES...435 KM...EAST OF CHETUMAL MEXICO AND ABOUT 230 MILES...365
KM...SOUTHEAST OF COZUMEL MEXICO.

DOLLY IS MOVING TOWARD THE NORTHWEST NEAR 17 MPH...28 KM/HR. A
NORTHWESTWARD OR WEST-NORTHWESTWARD MOTION IS FORECAST DURING THE
NEXT COUPLE OF DAYS...WITH LITTLE CHANGE IN FORWARD SPEED. ON THIS
TRACK...THE CENTER OF DOLLY WILL MOVE ACROSS THE YUCATAN PENINSULA
OF MEXICO TONIGHT AND EMERGE OVER THE SOUTHERN GULF OF MEXICO ON
MONDAY.

MAXIMUM SUSTAINED WINDS ARE NEAR 45 MPH...75 KM/HR...WITH HIGHER
GUSTS. SLIGHT STRENGTHENING IS POSSIBLE TODAY BEFORE DOLLY REACHES
THE YUCATAN PENINSULA. SLOW STRENGTHENING IS FORECAST ON MONDAY
ONCE DOLLY EMERGES OVER THE SOUTHERN GULF OF MEXICO.

TROPICAL STORM FORCE WINDS EXTEND OUTWARD UP TO 175 MILES...280 KM
FROM THE CENTER. DOLLY COULD PRODUCE WINDS NEAR TROPICAL STORM
FORCE...ESPECIALLY IN GUSTS...OVER THE WESTERN TIP OF CUBA TODAY.

THE MINIMUM CENTRAL PRESSURE RECENTLY REPORTED BY A NOAA
RECONNAISSANCE AIRCRAFT WAS 1008 MB...29.77 INCHES.

DOLLY IS EXPECTED TO PRODUCE RAINFALL OF 4 TO 6 INCHES ACROSS THE
NORTHERN YUCATAN PENINSULA OF MEXICO AND WESTERN CUBA...WITH
ISOLATED MAXIMUM AMOUNTS UP TO 10 INCHES. AN ADDITIONAL 2 TO 4
INCHES IS EXPECTED IN THE CAYMAN ISLANDS...WITH A STORM TOTAL OF UP
TO 8 INCHES.

REPEATING THE 1145 AM EDT POSITION...18.4 N...84.2 W. MOVEMENT
TOWARD...NORTHWEST NEAR 17 MPH. MAXIMUM SUSTAINED WINDS...45 MPH.
MINIMUM CENTRAL PRESSURE...1008 MB.

AN INTERMEDIATE ADVISORY WILL BE ISSUED BY THE NATIONAL HURRICANE
CENTER AT 200 PM EDT FOLLOWED BY THE NEXT COMPLETE ADVISORY AT 500
PM EDT.

$$
FORECASTER KNABB

If true this should make the hair on the back of your neck stand up at attention...


By Brian Faler and Alison Vekshin
More Photos/Details

July 18 (Bloomberg) -- Democratic lawmakers sought to put a constraint on the Treasury's request for unlimited power to buy and lend to Fannie Mae and Freddie Mac, a step that didn't temper Secretary Henry Paulson's optimism about a deal.

``Any expenditure under this bill would be subject to the debt limit,'' House Financial Services Committee Chairman Barney Frank told reporters in Washington yesterday, referring to the ceiling on federal government borrowing. That ``is a cap in effect on the amount'' of taxpayer funds officials can use to help finance the mortgage firms, he said.

Frank's comments reflect lawmakers' concern that the Paulson proposal may expose the taxpayer to unlimited risk and confer unprecedented authority. The Treasury chief reiterated his optimism about a deal by the end of next week, indicating he may be open to compromise on a measure he said will restore investor confidence in the beleaguered companies.

Paulson spent a second straight day lobbying on Capitol Hill after legislators balked at a July 15 hearing at his initial request, which Treasury officials anticipated would be enacted this week. Paulson is trying to provide a backstop to Fannie Mae and Freddie Mac after their shares fell to the lowest level in more than 17 years this month, threatening to limit their ability to alleviate the mortgage-market collapse.

``I feel even better than I did yesterday in my confidence level that we will come to a very acceptable result, and come to it next week,'' Paulson told reporters yesterday.

Shares Gain

Fannie Mae shares rose for second day, the first back-to- back gain in a month, to $10.93 in New York Stock Exchange composite trading. Freddie Mac advanced to $8.33, also the second consecutive increase.

Freddie Mac may raise as much as $10 billion by selling new shares, a move that might help avoid a government rescue for it and Fannie Mae, the Wall Street Journal reported today, citing people it didn't identify.

Paulson, since announcing his plan Sunday, July 13, has repeatedly called for power to make ``unspecified'' equity purchases in the two companies, which account for about half of the $12 trillion U.S. mortgage market. He wants a similar right to extend the credit lines the firms have with the Treasury.

Paulson has said limits to his power would impede the measure's ability to buttress investor confidence. The Treasury had sought for it to be outside the borrowing ceiling.

``People talk about trillions of dollars,'' said Frank, of Massachusetts. This ``makes it clear that nothing remotely like that order of magnitude is contemplated even in the worst case.''

No Cost Seen

Frank added that he doesn't expect the plan to incur significant costs because it will spur confidence in the lenders, limiting the need for public money. Paulson has said he doesn't anticipate exercising the proposed authority, noting regulators' comments that the firms are already adequately capitalized.

The debt limit is $9.815 trillion and the current outstanding public debt subject to that limit is about $9.4 trillion, according to the Treasury.

``Today the Treasury has enough unused borrowing authority to give Fannie and Freddie all the support they might need,'' said Louis Crandall, chief economist at Wrightson ICAP LLC, a Jersey City, New Jersey-based research firm.

Paulson will work with House Ways and Means Committee Chairman Charles Rangel, of New York, and Budget Committee chief John Spratt, of South Carolina, on the debt limit issue, Frank said. Paulson declined to respond to a reporter's question on the matter yesterday.

Other Limits

Frank, whose committee oversees housing, said earlier this week that he intended to place other restrictions in the legislation, including limits on dividend payments by the firms and a requirement for regulators to approve top officers' compensation.

House lawmakers are working on adding the measure in an existing housing bill that aims to stem the record surge in mortgage foreclosures and set up a new, stronger regulator for Fannie Mae and Freddie Mac. The legislation would then go to the Senate.

Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said lawmakers are considering other ways of trying to assure taxpayers that ``this thing isn't a runaway horse,'' while declining to discuss specifics.

``We're getting close to some ideas that can work that will have negligible, if any, market implications, which is critical,'' Dodd said.

$4 Billion

House Democrats plan to include in their bill a measure that President George W. Bush has threatened to veto, signaling they're prepared to push the administration on the issue.

The proposal would send almost $4 billion to communities to buy up foreclosed properties. The White House has said it would benefit lenders who own the vacated properties, not homeowners.

House Speaker Nancy Pelosi, a California Democrat, said she doubted Bush would make good on the veto threat.

``I don't think the president is going to veto this bill,'' Pelosi said. Foreclosed properties ``are now abandoned properties, taking down communities,'' she said.

Frank said the House will probably vote on the combined measure July 23 before sending it on to the Senate.

House Minority Leader John Boehner, an Ohio Republican who proposed delaying consideration of the plan so that lawmakers could have more time to study it, said two days ago there's no question ``that this will become law and become law very soon.''

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Although its coming along at a faster pace now than it was there is still alot of construction work going on in the downtown area...be careful if walking around down there...we all have high hopes of this project being finished by September or earlier...

Tropical Wave Is Along 71w/72w S Of 18n With A 1008 Mb Low Along The Wave Axis Near 15n Moving Wnw 15-20 Kt. a Tropical Cyclone
Could Form At Any Time As The System Moves Toward The Wnw. All Interests In Jamaica...the Cayman Islands...and The Northwestern Caribbean Sea Should Continue To Monitor The Progress Of This System. Locally Heavy Rainfall Is Moving Across Hispaniola And Will Spread Across Jamaica Later This Evening. Scattered Showers/thunderstorms Are N Of 14n To Over Hispaniola Between W Puerto Rico And E Cuba/windward Passage. Scattered Showers/isolated Thunderstorms Cover The Remainder Of Between 66w-78w.

Special Tropical Disturbance Statement Nws Tpc/national Hurricane Center Miami Fl 1125 Am Edt Fri Jul 18 2008

This Statement Concerns Two Tropical Weather Systems. Satellite Images Indicate That The Area Of Low Pressure Located In The Central Caribbean Sea About 400 Miles Southeast Of Jamaica Continues To Become Better-organized. An Air Force Reserve Unit Reconnaissance Aircraft Is Scheduled To Investigate This System This Afternoon To Determine If A Tropical Depression Or Tropical Storm Has Formed. All Interests In The Central And Western Caribbean Sea Should Continue To Monitor The Progress Of This System As It Moves Westward At 15-20 Mph. For Information Specific To Your Area...please Consult Statements From Your Local Weather Office.

Surface Observations And Satellite Images Indicate That A Low Pressure System Located Just Off The Coasts Of Georgia And South Carolina Is Also Becoming Better Organized. Environmental Conditions Are Conducive For Further Development...and A Tropical Depression Could Form Today Or Tomorrow. An Air Force Reserve Hurricane Hunter Aircraft Is Scheduled To Investigate This System Tomorrow...if Necessary. All Interests Along The Coasts Of Georgia...south Carolina...and North Carolina Should Monitor The Progress Of This System. Locally Heavy Rainfall Is Possible In These Areas During The Next Couple Of Days As This System Moves Slowly Northeastward Near The Coast. For Information Specific To Your Area...please Consult Statements From Your Local National Weather Service Forecast Office. $$ Forecaster Blake/knabb

TROPICAL WAVE IS ALONG 62W/63W S OF 19N MOVING W NEAR 20 KT WITH
A 1009 MB LOW ANALYZED ALONG THE AXIS NEAR 12N. THIS WAVE WILL
POSSIBLY BE INVESTIGATED LATER TODAY BY AN AIR FORCE
RECONNAISSANCE AIRCRAFT. CONDITIONS IN THE ERN CARIBBEAN ARE
CONDUCIVE FOR FURTHER DEVELOPMENT AND IT COULD BECOME A TROPICAL
DEPRESSION LATER TODAY OR TOMORROW. REGARDLESS OF DEVELOPMENT...
THE SYSTEM IS EXPECTED TO BRING GUSTY WINDS AND LOCALLY HEAVY
RAINS TO THE SRN WINDWARD ISLANDS...INCLUDING THE ABC ISLANDS...
OVER THE NEXT DAY OR SO. SCATTERED MODERATE CONVECTION IS FROM
10N-14N BETWEEN 62W-67W WITH SCATTERED/LOCALLY HEAVY SHOWERS
CONTINUING ACROSS THE WINDWARD ISLANDS AND NERN VENEZUELA.

"This is a systemic financial crisis, there is no end to it,'' Nouriel Roubini, professor of economics and international business at New York University, told Bloomberg Television. ``It's a vicious circle between a contracting economy and greater credit and financial losses feeding on the economy.''

"Click" to enlarge

This is what happens when there is a loss of confidence in the system, or in this case a bank...IndyMac Federal Bank after the FDIC took control over it...




Reuters file photo

Here's your "Oil Price" story toward the end of the week...if it continues to form up...

Invest 94

Ya might wanna keep an eye on this for a few days...it has a more southerly forecasted track than Bertha did, and if it curves into the Gulf at all then all bets are off for the price of oil...

There was plenty goin on in town last night with the Maylee Thomas Band @ Poppy's in support of Lovelife Foundation and Joel Foy over at the Cadillac...

New Toys?

...Bertha becomes the first hurricane of the 2008 Atlantic season...

at 500 am AST...0900z...the center of Hurricane Bertha was located
near latitude 19.3 north...longitude 50.2 west or about 845 miles...
1365 km...east of the northern Leeward Islands.

Bertha is moving toward the west-northwest near 17 mph...28 km/hr.
A continued west-northwestward motion with a gradual decrease in
forward speed is expected during the next couple of days...as
Bertha remains over the waters of the central tropical Atlantic.
It is still too early to determine if Bertha will eventually affect
any land areas.

Maximum sustained winds have increased and are now near 75 mph...120
km/hr...with higher gusts.  Some additional strengthening is
forecast during the next couple of days.

Hurricane force winds extend outward up to 25 miles...35 km...from
the center...and tropical storm force winds extend outward up to 115
miles...185 km.

Estimated minimum central pressure is 987 mb...29.15 inches.

Repeating the 500 am AST position...19.3 N...50.2 W.  Movement
toward...west-northwest near 17 mph.  Maximum sustained winds...75
mph.  Minimum central pressure...987 mb.

The next advisory will be issued by the National Hurricane Center at
1100 am AST.

$$
Forecaster Knabb

The Maylee Thomas Band was at Cadillac Pizza Pub last night rockin the house as only they can...

The Ice Cream Crankoff was last Saturday in the square in downtown McKinney...It was hot as blue blazes outside but a lot of folks showed up to partake of some good homemade ice cream...

Statement as of 11:00 am EDT on July 04, 2008

the cloud pattern of Bertha consists of a couple of clusters of
convection to the north and south of the center embedded within a
large cyclonic circulation in the low clouds.  A Quikscat overpass
that was received just after the issuance of the previous
advisory...suggest that the maximum winds were around 45 kt.  The
structure of the cyclone has change little since that time and the
latest Dvorak data T numbers from SAB and TAFB support a 45 kt
initial intensity.
Bertha will be passing over slightly cooler waters during the next
24 hours...so no change in intensity is expected in the near term.
Between 24 and 72 hours...conditions are expected to become
conducive for gradual strengthening as SSTs increase and the shear
remains low.  Models suggest that the shear could increase
thereafter...so the new forecast keeps the intensity just shy of
hurricane strength.  However....it is Worth mentioning that the
SHIPS...lgem...and GFDL models forecast Bertha to become a
hurricane in 3-4 days.
Bertha is moving west-northwestward at a little faster
pace...290/14.  The storm should remain on this general heading
during the next 2-3 days as it is located south of a mid-level
ridge over the eastern Atlantic.  The guidance has continued to
shift westward...but there remains two distinct envelopes...one
that consists of the HWRF and GFDL that turn the cyclone
northwestward beyond day 3....and the other which keeps Bertha
on a more west-northwest track.  The official forecast track has
been adjusted westward to reflect the shift in the guidance.


 

...Tropical depression forms over the far eastern Atlantic Ocean...

at 500 am EDT...0900z...the center of Tropical Depression Two was
located near latitude 12.6 north...longitude 22.7 west or about 250
miles...405 km...south-southeast of the Cape Verde Islands.

The depression is moving toward the west-northwest near 9 mph and
this general motion with some increase in forward speed is expected
for the next couple of days.

Maximum sustained winds are near 35 mph...55 km/hr...with higher
gusts.  Some strengthening is forecast during the next 24 hours and
the depression could become a tropical storm later today.

The estimated minimum central pressure is 1008 mb...29.77 inches.

Repeating the 500 am EDT position...12.6 N...22.7 W.  Movement
toward...west-northwest near 9 mph.  Maximum sustained winds...35
mph.  Minimum central pressure...1008 mb.

The next advisory will be issued by the National Hurricane Center at
1100 am EDT.

$$
Forecaster Blake


 

A couple of interesting Invests to keep your eye on the next few days...

Tropical wave has shot at becoming earliest recorded 'Cape Verde' storm ( Invest 92L)

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Fair use
http://www.palmbeachpost.com/storm/c...0702storm.html

Tropical wave has shot at becoming earliest recorded 'Cape Verde' storm
By ELIOT KLEINBERG
Palm Beach Post Staff Writer
Wednesday, July 02, 2008

A strong tropical wave just off the west coast of Africa has the potential to become a rare July "Cape Verde" storm, the National Hurricane Center said today.

Should it become Tropical Storm Bertha in the next few days, it would mark the earliest on record that a tropical storm has formed this far east, hurricane center specialist Eric Blake said this morning.

He noted many could have formed in this area in the centuries before they could be spotted with satellites.

The system is becoming better organized and could become a tropical depression over the next few days, the hurricane center said in the 2 a.m. update of its "tropical weather outlook" page.

While it's early in the season, and the storm wouldn't threaten the U.S. east coast for at least a week, its circumstances are "extremely rare," Blake said.

"It's not normally a good sign when they start this early," he said.

"The models are taking the system to the west," Blake said. But, he said, "this is a long ways away. We have a lot of time to watch this one."

Tropical Storm Arthur, which formed May 31, lasted only a few days but brought heavy rains to Belize, killing five and causing about $78 million in damage, according to the hurricane center.

"Cape Verde" storms are so named because they form in the island chain off Africa's west coast and so have several days to traverse an entire ocean, fueling on its warm water, before they approach the U.S. east coast.

Such storms traditionally form later in the summer, when waters are warmer.

This system stood early today about 330 miles southeast of the Cape Verde Islands and was moving west about 15 mph.



Also Invest 93 which is down around the Antilles at present...