Financial news dump

[FreakinDJ]

Wall Street expects personal incomes and spending to show weak gains in August

The government reported Friday that the overall economy expanded at an annual rate of 2.8 percent in the April-June quarter, slightly slower than the 3.3 percent growth rate previously estimated. The GDP is expected to have slowed to a much more anemic rate of around 1.5 percent in the July-September quarter, reflecting in large part the slowdown in consumer spending.

Many economists are warning that GDP could turn negative in the final three months of this year and the first quarter of next year, meeting one common definition of a recession as two consecutive quarterly declines in the GDP.

http://biz.yahoo.com/ap/080929/personal_incomes_ahead_of_the_bell.html?.v=1

Who wins, who loses under proposed bailout plan?

Top executives at troubled financial institutions, on the other hand, are in the losing column because the proposal would limit their compensation and rules out "golden parachutes."

Of course, these executives may take solace in knowing their jobs still exist.

Investors, including the millions of people who hold stock in their 401(k) and pension plans, should benefit. Failure to reach a deal over the weekend could have sent stock markets around the world tumbling on Monday.

Homeowners faced with foreclosure or those who have lost their homes get little help from the agreement. Nor will it help people whose houses are worth less than what they owe get refinancing or take out equity loans.

"It doesn't deal with the fundamental problems that gave rise to the problem -- or alleviate the credit crisis," said Peter Morici, an economist and business professor at the University of Maryland
http://biz.yahoo.com/ap/080929/rescue_winners_losers.html?.v=2

Chinese regulator calls US lending 'ridiculous'

Saturday September 27, 7:02 am ET
By Joe Mcdonald, AP Business Writer

China regulator calls US lending 'ridiculous'; says world can learn from it amid credit crisis


TIANJIN, China (AP) -- U.S. lending standards before the global credit crisis were "ridiculous," and the world can learn from China's more cautious system as it considers financial reforms, the top Chinese bank regulator said Saturday.
http://biz.yahoo.com/ap/080927/as_china_wef_credit_crisis.html?.v=4

[zeemike]

1. The golden parachute is only after the fact.

It only applies to companies after the apply for government money.
So they will get to keep the money as long as they bail out before the trouble...which is what the parachute is for.

[halobeam]

3. I thought the ORIGINAL contracts for parachutes were to be honored.

The "new" contracts will not allow for parachutes if the company goes belly up.

[zeemike]

4. That is how I under stand it

After the company accepts help from the government then no more golden parachutes. but until then they get to keep the money. so bail out before making application for help and take as much with you as you can.
The government will cover the looting.

[ixion]

2. who loses? those of us who foot the bill for the bailout

that's who.