The Housing Bubble

I can also qualify for any loan I want but choose not to. My credit limit with chase is 25k, which I will never use unless I have to. Also, the junk mail offers keep comming. I see no problems with getting credit.

We who have good credit have already proven we’re not foolish and taking whatever offer will allow us to make an expenditure above our means for the sake of vanity.

I’m seeing the same here. Constant bombardment of credit offers, sending me checks to use on credit cards (yeah right, I really want to borrow on cards), cheap home equity offers (and we rent !!). Regular beggings from car dealers. I have seen NO credit contraction amongst people who can afford to pay back.

I’d like to hear the experience of others; are you seeing pullbacks in credit lines?

I pay my credit card bill in full when I get it. Thet call me at the credit card company a deadbeat. However I get an offer or two a day for new cards and my favorite is those blank checks they send you.

Two months ago I was comming back home and a gravel truck made a left turn in front of me. Long story short my Acura was totaled. I called my insurance company and got them the police reports. Cut me my check in three weeks. A month later USAA sent me a $50,000 loan check towards the car of my choise. Called them up and politely refused their offer. Yesterday I got another loan check for the same amount.

If you don’t need it they want to lend it to you. If you do need it you are hosed. Life goes on.

A good friend went into Harley the other day. Long story short. not only were they going to give him 100% financing on the bike, they were going to allow him to go 5K over the purchase price to throw in accesories.

This friend of mine may have “good credit”, but as the commercial goes, he’s in debt up to his eyeballs.

I have a hypothesis:

We have a shortage of true Primes. Many former Primes squandered their hard-earned 720 FICO’s in the Great MEW-Escalade-QE2-Granite Countertop-Vacation Cabin Frenzy of 2003-2008. They are now “in debt up to their eyeballs,” to the point where they owe so much ($200-$300K) that their FICO dropped. As a result, there are many fewer 720 FICO’s, making the remaining primes all the more coveted.

The banks figure that if you still have a 720 FICO after this disaster, then you, you smart boy, probably watched the Frenzy from the sidelines. If you passed on the Frenzy, you probably have CASH.

They need your liquid cash, down payment and monthly, and they need it bad. Hence the royal treament.

Excellent credit here. My credit card limit was raised (again!) and interest rate lowered, and I just qualified for a low interest auto loan with no problem.

A person I work with bought a car no problem on credit, hes preparing for bankruptcy and wants to use his good credit before it goes bad, walks from his house etc. He almost is out of money I suggested he fund his IRA with whats left.

You have to put your alien translator on when you read this stuff. This is not to make the life of the consumer easier. It is to take bad credit card loans off the books of failing banks.

Government of the banks, by the banks and for the banks.

“They should just give us the money directly, so we’ll spend it. We are “consumers”, not citizens.”

Has any one seen the economic “infomercial” about how giving $100 to a person is not as good as using $100 to build bridges and other infrastructure. I saw a clip of it last night on CBS around 7pm… this may have been DC local news? It was done with pretty crayon drawings around video boxes with an “expert economist” explaining how if you give a consumer $100 he will save a little and spend most of it. In 2 years the $100 will have turned into $125 boosting the economy only a little bit. But if you use that same $100 to build a bridge, in 10 years that $100 will be worth $200 (I can’t remember the exact figure.. just that it was more than the $125). I have been looking for the source of this video all morning and wondering if it was put out by Obama’s new team? I am also curious about why they used different time periods to compare the increase in $$$.

“They should just give us the money directly, so we’ll spend it. We are “consumers”, not citizens.”

better yet why not elevate consumerism into a state- sponsored Religion/cult. The impulse to spend on bling seems to be about the only thing which motivates some folks, almost an addiction.
If US wants to get folks to open their wallets and boost the economy then they should just mail out the checks for $1000. now. After all It is only phony worthless printed $

I don’t know why you had to get 6 trucks in the last decade, whether it was choice or problems, but my Ford Taurus is a great car. I bought it used when it was four years old and it is still going strong 7 years later. I’m afraid I’m not going to help a lot of workers by driving it until it drops, but that is not my primary purpose in owning a car - it is to have basic transportation and advertising/marketing isn’t going to change my mind.

“I have bought and paid for six brand new Ford trucks in the last 9 years”

Thank you for supporting union labor.

I the first owner of a 4dr 1996 Ford Explorer with 220K miles that is still running great. I intend to keep it running until it drops dead. So far, it has not needed any major repair, other than small transmission work at about 150K.

In addition, I’ve an after market third bench seat (NTHSA safety rated) that can be bolted to the frame. I’ve taken 3 kids (up to 4ft tall) and 5 adults on long trips. Kids have a blast and enjoyed the trips. I strap a big cargo pouch (Kangaroo) on the top and we are set.

Lot of fond memories with this SUV…

RE: I will look into something made by Toyota in the U.S. for my next vehicle ]

Yup…that Toyota Tacoma with the 4.0L motor and 6-speed standard transmission is about all there is.

Ford screwed their F-150 when they dumped the availability of a standard.

And the Triton motors are a disaster.

My mechanic refuses to work on them because of the horrific access.

Drove a fairly new rental 1500 Dodge RAM crew-cab recently to go pick up some funiture.

What a gaz-hogging, gear-hunting, worthless POS.

yes, I have decided what I’m going to spend and it equals a big fat zero. After they drained my wallet this past summer (and I have yet to see most prices come back down) I refuse to give them one penny of my money. I have made it very clear to my family that I expect the same from them.

Keep the sheeple distracted with shiny, useless baubles as the last jobs vanish and all our money passes the event horizon of the credit black hole.

The blowup is scheduled for after January 20th - can’t tarnish the legacy of The Decider, now can we?

wait until the new fund managers take over on Jan 1 because all their predecessors got the axe, first thing they will do is dump all the old guys shares, billions of shares all being sold in January…. no matter what happens this month, I expect new lows reached into 2009

Pleading ignorance here. Why does keeping a balance make the cc companies happy? How does that benefit you?

I’m just curious. Mine is paid off each month, but I don’t put near the amount you described on.

FP,

Well said. Even in the worst of times in the past, anyone that put 25% down on a home didn’t really even NEED good credit at all! ( Of course now we’re applying the same to auto loans? )

I don’t think a lot of people are making the connection that having access to consumer credit for personal primary consumption ( not second homes, not “real estate projects” not groovy retail start-ups! ) A lot of us don’t seem to realize that the endless credit solicitations is just a numbers game.

Just because you’re getting calls and emails for credit extensions isn’t to say you’ll be approved?

“I really don’t know who the GOVT is targeting when they say, they want to free up consumer loans.”

My guess is the faux-rich “your check is in the mail” small-business owners and their “live for SAT night” employees; both are exploitative losers. Our local Real Estate rag is just loaded with high end housing that local wages could never support, and there is always that tell-tale new pickup truck with a ladder rack out front that tells me so. Living in the now is what it’s all about.

FICO scores will soon be irrelevant. Fair Isaacs was the first to develop a modeled credit picture for consumer debt risk evaluation. All three credit agencies followed with similar scoring criteria. It seemed to work for the past decade but it will all come crashing down, as the scoring model is skewed towards on-time payments regardless of actual financial capacity.

Alt-A mortgagees and Pay-Option arm failures in the coming year will collapse the current FICO scoring system. Out-of-touch with financial reality is an understatement.

I was stunned to watch as my FICO score dropped nearly 100 points to 725 when I paid off and closed two credit card accounts and an auto loan. My status - home nearly paid off on a thirty year fixed mortgage - substantial fluid savings - no heloc - substantial retirement savings - no other consumer debt - long term career.

I only know of my score because I have credit inquiries monitored to protect myself from stolen identity possibilities.

The system is a joke! I guess I don’t care. I don’t need their credit but there is an obvious flaw in the system that makes folks believe that debt is good and rewards debt. Soon to end!!!!!!!!!!

If that’s the goal, what’s the end game? Why would ‘they’ want everyone in debt?

IMO, its not the goal so much as the necessity. They’ve backed themselves into a corner over the years by pushing more and more product such that when lending goes from being a torrent to a trickle, they’re screwed.

Hank Paulson + Banksters = Hanksters.

It *has* become cheaper, in comparison with the far larger cost of the more recent (attempted) financial bailouts.

But my personal theory on the war (I’m going to get slammed for this) is that since the country was so divided, it was necessary for the Feds to spend lavishly to, in effect, buy majority approval for it. Hence the real cost of the war should include not only the military salaries/equipment/supplies, but also spending on Katrina/Medicare part Q/etc./etc.

Whether the war was a “fiasco” in military or foreign policy terms, we can debate on another blog.

What most people don’t seem to realize is that there is “Obama’s” team vs. “Bush’s” team. They are one and the same. They just shuffle the players on and off the field at various times - heck sometimes not even shuffling them off the field but just changing their positions. They’re all on the same team, with the same goals - bilk the lower and middle classes (and even competitors in the upper classes) for all they can, primarily via inflation through debt. They go as far as they can without actually inciting revolution.

I would imagine they’re quite gleeful seeing how far they’re able to take it this time with very little resistance. Manufactured panics work wonders on the sheeple.

Could you educate us that are less than savvy, or to be more blunt, are right down ignorant, and thus spread enlightenment.
No, seriously, don’t know the guy.

I think most people don’t realize want an integral role that Geithner has played in the disastrous government policies over the past few years. Other than Hank Paulson and Ben Bernake no one has had more input to how the Bush administration has responded to our economic problems.

http://www.thenation.com/doc/20081208/greider_web

Are there actually any innocents left on Wall*Street that O could have picked?

When did things change and the Sec of Treasury start having to be a Wall*Street insider?

“I have yet to see criticism of his selection of Geithner, from this blog.”

I’ve taken a number of shots against Geithner on this blog. I have taken note of his various pronouncements over the last year or so.

“I have yet to see criticism of his selection of Geithner, from this blog.”

He’s above criticism. You can’t tear into this criminals without being banned, message deleted, and tarred an anti-Semite.

I lost all hope of a non-insider being selected back in August or thereabouts, when Ron Paul lost the nomination.

Give him a chance. He might just step up become a born again Treasurer and do the right thing. Be positive nycb

RE: I have yet to see criticism of his selection of Geithner, from this blog. Geithner’s hands are filled with blood. He is one of the king pigs and the partisans are strangely silent. A tool is a tool is a tool.

He reeks…and the new game ain’t even started.

http://www.iht.com/articles/2008/11/25/business/25sorkin.php

wmbz,

Great post and thanks for sharing that perspective. What “the boom” really provided was a wealth effect so fantastic that even rank and file Americans could become pre-occupied with challenging the current administration’s e-v-e-r-y move.

Why I’ve never had so many unsolicited and officious lectures from “new & improved soccer moms” while quaffing a $4 Starbucks! With their financial futures assured, they could move on to more ethereal things.

Now that they CAN’T AFFORD a $4 Starbucks ( on credit… ) they’ll blame the current administration.

The judiciary, with the Supreme Court as the final word. See Marbury vs. Madison (1803) which established the principle of judicial review.

“Whose job is it to make sure the constitution is followed?”
I see that as the job of each citizen. To me, the fatal flaw of the constitution is that there is no penalty for deviating from it. Personally, I think it should be a death penalty for violating the constitution. If the need is there, the founding fathers put in mechanisms for changing the constitution. But whose job is it? It’s our job!

Bingo! The Supreme Court has been remarkably and ashamedly silent on the constitutionality of the bailout.

However that being said - their power is limited. The die was cast in 1913 with the creation of the Federal Reserve, which is not subject to Congressional or Constitutional supervision since it’s not officially a government agency.

The treasury is, however, and the court has been lax in its oversight.

Yes!

The consumers and the gov’t are now openly feeding off each other’s bad behavior.

The idea is to keep the cash flowing.

In the 60 Minutes interview, Obama said he was working on assembling his national security team because transitions are times of vulnerability. I can wait a little longer for the ponies and rainbows, thank you.

Lol, since clearly Bammy hasn’t fixed the economy before taking office, he has broken his campaign promises and demonstrated his overwhelming incompetence. We need a do over so we can get someone much more competent in office…third term for The Decider?

“I thought it had to be done with borrowed money or it is just shifting of spending…”

Expanding the monetary base to pay for stimulus against a backdrop of falling GDP amounts to a taking from those owed fixed dollar obligations, such as retirees on fixed-income pensions.

Many appologies for my horrible spelling. Still, the sentiment remains.

RE: The new budget guy is supposed to look for places to cut to begin paying for the stimulous.

Uh, oh…no more individual physical therapist, speech therapist, speical tutor, and 3 teacher aides for Liam the Down Syndrome kid.

Look what happened to Mark Cuban after he tried to out these rats. DFF.

“If not physically dead.”

A reference to JFK and executive order 11110 perhaps?

Now I’m just waiting to see which illiterate, humorless poster will take that statement seriously and make all kinds of bluenose comments about racism, etc.

Nope, the US will NOT split into separate parts, LMAO! That’s the worst nightmare of Washington. Who wants to lose part of their flock of sheep? Less for the shearing.

The bumpkins will rule Y’all

Yeah, really, like that’s ever gonna happen. But, let’s play make-believe this fine Tuesday morning. Suppose the US were to split off into parts. What parts and how would it work? Which would be the new nation-states and what would their borders be? Hmm, let’s see, where’s my US Map?

Indeed, the Russians are remarkably clear-eyed about such things. They know very well that large non-homogenous countries fail during economic collapse. Even military force failed to hold the USSR together and will not work here either. I don’t know if the country will officially break up or remain in some sort of loose confederacy similar to Russia, still paying lip service to Washington but I think odds are greater than 50% that some sort of change will happen over a period of serveral years.

You’re right - who knows where it stops? The only thing that history teaches is that all empires end. (I’m also learning the fiddle, that maybe an extremely ominous sign as far as the end of the US is concerned.)

The problem here is the analogy to the breakup of the USSR to that of the US. It’s apples to oranges comparison.

That seems appropriate because you often remind me of Trotsky.

Total failure….

Cue the little green guy from Dagobah. Actually his resemblance to Mr. McGreenSpan is kinda spooky.

I proposed last year we crash the markets and let the Chinese buy GM GE IBM MSFT with all their US$$$$

seems like a doable plan…

I mean whats wrong with China or heck Abu Dhabi buying GM Ford and Chrysler if it keeps millions on the payroll?

Yeah, I thought Exeter is in love with Bammy.

Not pumping stimulus. Just making note of the outlandish hypocrisy where few if any of the typical tax whining ideologues said a word about bailouts for the wealthy elite (AIG, Citi) but they were $hittin’ all over themselves to shoot down a wage earner pension (GM) gaurantee.

Hypocrisy…. it’s a conservative/libertarian virtue.

The economists do seem very fond of the “do over” when it comes to their predictions.

sure, both the IMF and the OECD have proven themselves totally clueless about what is going on.

Only the EU national governments are worse, e.g. in my country they still think there will be no recession (or maybe just a few quaters of zero growth). And because of that they are raiding the unemployment benefits warchest, enabling workers from the car/homebuilding industry etc. who are no longer needed to keep their full pay while doing nothing.

Let us stand back and watch the sales numbers plummet, once again, when all of these foreclosure moratoriums kick in. The sales numbers are high for only one reason and we know what that is. And they will be removing those transactions for 90 - 180 days. Watch the sales figures collapse without those transactions.

Believe it or not, MA was not THAT unaffordable a couple of years ago… It seems that sellers here are far more stubborn than in other places, and constantly recite the “it is different here, and nothing will change” but when asked if they could afford to buy a house here, at the current prices, most would not be able to.
I see a lot of contractors that were not as dumb as in other places of the US that have held out OK, but now are starting to sweat bullets, and let me tell you that there is no work in the pipeline for construction contractors for next year.
This will be a very bleak year for those that are associated with the construction industry in MA.

the question is how high will inflation and wages be when the FED allows rates to rise to 14%…

maybe 1M is the low end of the scale by then?

GS is issuing $5B in new 3 yr notes guaranteed by the FDIC. Issuing price apr 3.63%

but for people who live paycheck to paycheck it sounds like a great plan, at least they can keep living way beyond their means. Just make sure that if you get any assets in the future you hide them somewhere out of sight …

and wouldn’t they invent some kind of law to allow FB’s to move to another home and take the special mortgage with them?

“Eisenhower seemed to manage quite well.”

Assuming you’re right…

If that’s the most recent example you can think of, of competent management of a 100,000+ person organization, I think you’ve proven the original poster’s point.

Perhaps this is a NY perspective, however, but I don’t get the feeling that housing is cheap.

They are talking about early 2004 prices. I pretty much believe the limited wage increases since then have been swallowed by rising prices for health care (more copayments), energy, food, etc, leaving less to pay for housing, and by that time housing was pretty much getting out of hand.

Another year of this and we might have affordable housing.

Here’s a stimulus package — how about tearing down public housing, and giving its residents cheap houses instead? The buildings need gut rehabs, at least here in NYC, but with guaranteed low rents the government can’t afford them. Existing homes might be cheaper.

Amtrak is one of those weird political footballs that is one of those annoying mindless talking points meant to divide people over nothing.

My argument for a long time is that transportation is not a profit center. Transportation supports overall economic activity and promotes national security and can operated a “loss”.

You’d think the Republicans would be all over something that would increase economic activity and help with defense.

But no, the rail system, which used to be highly profitable before the introduction of a partially subsized airline system and a completely subsized Interstate system, must somehow turn a profit in completely different conditions that the government helped created.

Would Greyhound turn a profit if it had to maintain the highway system it uses? Has any airline except South West done anything but burn through investor cash? (And South West benefits from municpality run airports and federally funded air control systems.)

And the connection of the rail system across the United States was in fact government subsidized through incentives and land grants.

Sorry for the rant. I like taking trains and the “blessed” and therefore “non-controversial” status of airplanes and interstate rankles.

So why the 10-year default and not the 30-year?

Am I missing something here?

“The 10 yr treasury is going to have a technical default.”

What does this mean?

“No reasonable investor should bet that the US is going to default and rely on private funding to make good. LOL”

So hoz, why the h-e-double-hockey-sticks are hedgers buying theses CDS’es then??

It is not so much that confidence is up - as it is that attention spans are very, very short.

Seriously, IMHO, it only goes up because the peeps get bored and are ready to move on. (Ex: the Iraq war, I’ll bet case of beer that the man on the street thinks its all hunky dory - simply because its off the front page)

…somebody called for me?

Obama: It’s betting bettah…I think I could go for a walk…but the Secret Service won’t let me…

It was amazing. It’s like watching an entire ecosystem get destroyed but in this case, it’s for the good.

I agree, fascinating.

High-end girlfriends get cheaper for those left standing.

And for those unwilling to lower their price…tsk, tsk.

‘as I’ve gotten older, I’ve found my tolerance for putting up with female B.S. just to get laid is getting lower all the time.’

Funny, that’s how I feel about men’s BS >; )

I suppose us females without plastic parts and cash holdings are looking pretty good these days.

‘And while he clearly has the equipment he needs to get the job done, and his records are well kept, the business office where I go to get my bill and pay it, is not “decorated.” It is just an old desk and a few chairs. And some car posters.’

Where’s the sun-faded posters of scantily clad big-bosomed girls? Maybe then take them down when they know you’re coming, but otherwise, look, I’m sorry, but right up til then I was thinking you had you a genuine valuable ‘keeper’ of a repair shop.
But now, well…I just don’t know. I mean, that is like a recognized REQUIREMENT for all good and valid repair shops.

You don’t need a PPT on the days before Thanksgiving and Christmas, etc.

The markets are so thinly traded (= illiquid.)

No need to feel for him, nor me. We are paying zip, zilch, nada, for what is most family’s biggest single expense. I bet FT has been building a cash reserve, I know I have.

I’m gratified to note the 4 month time frame. I’m interested to know what bank, how long from LL stopped paying was NOD, etc.

lose

Exactly, FPSS.

Do you think they honestly don’t get it, or are there ulterior motives?

I was talking 1770’s…

Nope, them’s all beat up by the time they get that far upriver. Maybe you could smoke them? They go a funny color, too. You gotta catch them at the mouth of the river, I understand.

But I like your gusto. When I’m not maudlin and full of sorrow and splashing around stupidly, normally the first thing I think, when confronted with anything, and everything, is: ‘What does THAT taste like, I wonder?’

4) You can keep the cheese, just let me out of the trap.

Last weeks Manufacturing only. I keep a lot of categories.
These are confirmed layoffs.
14 Nov - 20 Nov 2008
AK Steel Holding Corporation
West Chester, OH
Coshocton, OH
One of Coshocton’s largest remaining employers, AK Steel Coshocton Works, is feeling the effects of the sluggish economy and laid off 34 employees Thursday. All but five are members of United Auto Workers Local 3462, said Union President John Williamson. The five had not yet made it into the union, he said. The layoffs were done by seniority, with the newest hires being the first to go. Personnel reductions were made in several areas of the plant, and the employees haven’t as yet been told how long the layoff might last, he said. “The bottom line is our economy is so bad we don’t know how deep this is going to go,” Williamson said. There are 377 hourly people employed at the plant, he added. The layoffs came two days after the company announced it was temporarily idling facilities in Mansfield and Ashland, Ky.
Approximate Affected Workforce: 1-50
Zanesville Times-Recorder - November 14, 2008

Alton Steel Inc
Alton, IL
Alton Steel Inc. is laying off a portion of its workforce in the St. Louis area as the economic slowdown causes steel sales for construction and other industries to slump. Forty one workers from the Alton plant are being let go. The layoffs take effect on Sunday, said spokesman Bill Keegan. Excluding the laid-off workers, the Alton plant employs about 290 workers.
Approximate Affected Workforce: 1-50
St Louis Post-Dispatch - November 14, 2008

Amphenol Corporation
Wallingford, CT
Sidney, NY
A Sidney manufacturer has laid off employees because of competition from other countries. Amphenol Corp., which produces electronic and electrical interconnect devices, has laid off 202 employees. The company applied successfully to the federal Trade Adjustment Assistance program to help workers retrain and find other employment. According to Rep. Kirsten Gillibrand, D-Hudson, Amphenol moved some of its assembly operations to Mexico and its non-military aerospace operations to China. Jerome Monteith, spokesman for Amphenol Corp. in Connecticut, confirmed Thursday that the manufacturer had applied for the federal TAA program. But he refused to comment further and hung up the telephone. “Any time we have layoffs, it’s a significant impact to our economy,” said Kevin Price, executive director of the Chenango-Delaware-Otsego Workforce Investment Board, which is assisting the firms and employees through transitions. Manufacturing jobs are available in the area, Price said, but in most cases, workers have to retrain to overcome a “skills gap.”
Approximate Affected Workforce: 101-500
The Daily Star - November 14, 2008

Beta Steel Corporation
Lipetsk, Russia
Portage, IN
Union officials say they’ve been notified that about 110 employees of Beta Steel Corp.’s hot-strip rolling mill in Portage will be temporarily laid off. Andre Joseph of the International Longshoreman’s Association says the company notified the union on Friday. The layoffs at the northwestern Indiana mill were to begin Monday. Joseph says the company cited a weak demand for steel. He says the 110 maintenance and production workers will be laid off for about two weeks, then the entire plant will shut down from mid-December to early January. The union represents about 250 Beta employees at the plant. Beta Steel produces rolled steel products. The mill was bought for $350 million last month by Russian-owned Novolipetsk Steel.
Approximate Affected Workforce: 101-500
The Associated Press - November 17, 2008

Boise Cascade LLC
Boise, ID
St Helens, OR
Boise Inc. will lay off 300 workers from its St. Helens operation when it halts its pulp mill and reduces its paper production starting early next year, the company announced Monday. Alexander Toeldte, Boise’s president, said in a statement that the move “was primarily a function of declining product demand coupled with continuing high costs, which made it impossible to meet the company’s long-term financial objectives.” The employees, represented by the Association of Western Pulp and Paper Workers Local 1, have limited rights to jobs at other Boise mills. Some employees may be offered transfers but the company hasn’t identified them, according to a letter by Richard F. Roberts, Boise’s human resources manager, sent to state officials to warn of the layoffs. Roberts declined to comment on the layoffs, referring questions to the company’s media relations department, which didn’t respond to The Oregonian on Monday evening.
Approximate Affected Workforce: 101-500
The Oregonian - November 18, 2008

Brunswick Corporation
Lake Forest, IL
Cumberland, MD
Apparently even the recreational fishing industry is sweating the economy’s turn for the worse. Brunswick Corp., which makes products as diverse as fitness equipment and billiard balls, said late Thursday it is moving production of Trophy offshore fishing boats from a Cumberland, Md., facility to Ashland City, Tenn., and eliminating 115 jobs. The Cumberland plant is set to close by the end of the year. Brunswick Chairman and Chief Executive Officer Dustan E. McCoy said in a statement the decision was not a reflection on the product or the Cumberland workforce. Workers at the Cumberland plant will go on a three-week furlough around Thanksgiving as the production shutdown begins. The company says workers will receive severance and outplacement assistance.
Approximate Affected Workforce: 101-500
The Associated Press - November 14, 2008

Eco2 Plastics
San Francisco, CA
Riverbank, CA
Citing a need to streamline operations, recycling company Eco2 Plastics has laid off 84 of the 115 employees at its plant in the Claus Road Army ammo plant. Eco2 Chief Executive Officer Rod Rougelot called the layoffs a painful but temporary measure the company must take while it works out the kinks in new equipment. Getting that equipment up and running has reduced the recycler’s output and profit margins, Rougelot said. When the problems are worked out volumes will increase, he said, and the company hopes to hire back its workers and add a second production line that could create an additional 70 jobs. Rougelot said he can’t predict when that will happen, but he’s hopeful that some workers will be hired back in December or January.
Approximate Affected Workforce: 51-100
Modesto Bee - November 15, 2008

Freescale Inc
Austin, TX
The local impact of Freescale Semiconductor Inc.’s staff cuts is beginning to become clearer. Freescale announced plans in late October to cut at least 2,400 jobs from its global workforce. According to WARN letters sent to the Texas Workforce Commission, the company plans to lay off a total of 138 people at facilities in Travis and Williamson counties in January. Freescale is eliminating at least 10 percent of its worldwide work force of 24,000 people in an effort to cut costs. The company employs about 5,000 people in the Austin area. A spokesman told the Austin Business Journal in October that the job cuts would begin this year with most of the eliminations complete by the first part of 2009.
Approximate Affected Workforce: 101-500
Austin Business Journal - November 17, 2008

General Tobacco
Mayodan, NC
General Tobacco Co. will cut 31 jobs from its Mayodan plant. Melissa Chantres, a spokeswoman, said the job cuts would trim the workforce to 95 full-time employees. General Tobacco moved from Miami to its current Mayodan plant on South Ayersville Road in 2007. The company released a statement Friday afternoon. “In an effort to cut operating costs, it is with regret that General Tobacco has had to layoff 31 employees due to today’s economic volatility. As is the case with most U.S. industries, General Tobacco has been affected by the sweeping downturn in consumer spending. It is our sincerest hope that this economic hardship, being felt by all, will pass quickly so that we may bring these employees back, who we consider family,” said J. Ronald Denman, executive vice president and general counsel for the company. General Tobacco begun manufacturing and distributing its first U.S.-made tobacco products at the Mayodan plant in March. The company makes GT One, Silver, 32 Degree cigarettes and Vaquero Little Cigars.
Approximate Affected Workforce: 1-50
The Reidsville Review - November 14, 2008

Insituform Technologies Inc
Chesterfield, MO
Insituform Technologies Inc. announced late Tuesday that it plans to eliminate 35 of its management and support staff positions. Approximately half of the positions are located at the company’s headquarters in Chesterfield, with the remainder based throughout North America. All employees whose jobs are to be eliminated have been notified and will be provided transitional assistance, the company said. Insituform said it expects to save $4.2 million a year as a result of the job cuts. The company will record pre-tax charges of $1.6 million in the fourth quarter related to the reorganization and position eliminations. The job cuts are part of a plan announced more than a year ago to reduce operating expenses and are not in response to the current economic environment, said Joe Burgess, president and chief executive. Chesterfield, Mo.-based Insituform Technologies Inc. (Nasdaq: INSU) provides rehabilitation and repair services to sewer, water and other underground piping without digging and disruption.
Approximate Affected Workforce: 1-50
St Louis Business Journal - November 18, 2008

International Game Technology
Reno, NV
International Game Technology began breaking the bad news this week to some of the individual workers who will be among the approximately 300 who will face buyouts or be laid off at the Reno headquarters of the world’s largest maker of slot machines and casino systems. IGT expects to lose about 500 workers from its total of 5,400. About 3,000 employees currently work at the Reno facility. IGT Chairman and Chief Executive Officer TJ Matthews said in an e-mail to employees in mid-September that the amount of layoffs would be determined by how many workers take the voluntary buyouts offered to staffers 55 year of age or older.
Approximate Affected Workforce: 101-500
The Associated Press - November 14, 2008

Jarden Corporation
Rye, NY
Ft Smith, AR
Plastics manufacturer Jarden Process Solutions in Fort Smith announced Tuesday it will close in January, putting 93 employees out of their jobs. The plant’s key customer is the Whirlpool factory, though Jarden also attributed the closure to general economic conditions. Since 2006, the Whirlpool refrigerator plant slashed its workforce from 4,600 to about 1,200, a decline of 74 percent. The plant last week followed through on its plan to lay off the additional 700 workers. Jarden produces plastic parts for the Whirlpool plant.
Approximate Affected Workforce: 51-100
The Associated Press - November 19, 2008

Jayco Inc
Middlebury, IN
Topeka, IN
Another area RV maker is shedding jobs. Middlebury-based Jayco Corp. announced Monday that will close its plant in Topeka where its Starcraft RV subsidiary operated. The plant employs 244 who earn between $12 and $25 an hour. Jayco will move production of Starcraft campers to Middlebury, which is in Elkhart County and about 19 miles from Topeka. “We plan to move as many people from Topeka to Middlebury as possible,” said Sid Johnson, Jayco’s director of marketing. “But right now, I think that would be very few.” With decreased sales of Jayco’s other products, Johnson said moving Starcraft production to Middlebury likely would be just enough to keep workers there busy. Starcraft RV makes a line of pop-up campers, truck campers, travel trailers and fifth-wheel trailers. Johnson said the company would probably complete the closure of the Topeka plant in January. In a statement issued by Jayco, President and CEO Derald Bontrager acknowledged the hardship the cutbacks would cause. “But the industry has been hit hard, first by runaway fuel prices and, more recently, by severely diminished consumer confidence and a significant decline in the supply of credit at both the retail and wholesale levels,” Bontrager said in the statement.
Approximate Affected Workforce: 101-500
Fort Wayne Journal Gazette - November 18, 2008

JCB Inc
Staffordshire, England
Pooler, GA
JCB Inc., manufacturer of construction equipment, says it will lay off 120 employees at its Pooler plant near Savannah. The company said Thursday the layoffs represent about a quarter of its Pooler work force and that the cuts will take place on Friday. The British-based company opened its only North American plant nine years ago. John Patterson, chairman and CEO of JCB Inc., said the falling housing market and tightening credit markets has caused construction equipment manufacturers in the U.S. and worldwide to scale back production. Spokeswoman Karen Guinn said the company has no plans to close the Pooler plant. The company said affected workers have been given severance packages.
Approximate Affected Workforce: 101-500
Associated Press - November 14, 2008

KLA-Tencor Corporation
Milpitas, CA
KLA-Tencor Corp. said Tuesday it plans to eliminate the jobs of 15 percent of its approximately 6,000 employees in a cost-cutting move. Milpitas-based KLA-Tencor (NASDAQ:KLAC) said the jobs reduction is one of many cost-cutting actions it is taking “in an effort to lower the company’s quarterly operating expense run rate to approximately $165-170 million by the end of fiscal year 2009 in response to the current demand environment.” CEO Rick Wallace said in a prepared statement, “Our employees are the heart of our organization, so it is with considerable reluctance that we are proceeding with this necessary reduction. We will continue to monitor the demand environment and make the necessary adjustments to weather this downturn, help optimize our profitability, maintain our strategic focus and strengthen our competitive position.” KLA-Tencor currently estimates that, in connection with the workforce reduction, it will incur an initial charge in the range of approximately $15 million to $20 million, almost all of which is related to estimated severance costs associated with the workforce reduction.
Approximate Affected Workforce: N/A
Silicon Valley / San Jose Business Journal - November 18, 2008

Kohler Company
Sheboygan, WI
The prolonged housing slump and weakened economy is causing the Kohler Company to continue to make cuts in its workforce. Kohler says 73 administrative employees in kitchen and bath and corporate operations have been notified that they will lose their jobs. Public affairs manager Todd Weber says all will receive severance packages. Kohler laid off 50 employees last month and more production workers earlier this month, bringing the total number of laid off union workers to 500.
Approximate Affected Workforce: 51-100
The Associated Press - November 19, 2008

Louisiana-Pacific Corporation
Nashville, TN
Louisiana-Pacific Corp. has eliminated about 200 salaried positions, which represents about 14 percent of its salaried workforce. The company is also reducing marketing and sales expenditures, freezing salaried employee wages and moving its information technology operations into a maintenance mode due to current business conditions. LP (NYSE:LPX) anticipates a fourth quarter charge of $8 million to 10 million for severance related to the layoffs, CEO Rick Frost says. The stock closed Tuesday at 1.62, down 28 cents (or 14.74 percent) from the previous day’s close. “In addition, we have scrutinized all activities we can cut back or put into hibernation during this housing downturn, and as a result have eliminated our flight operations and research and development facilities,” he says. “These right-sizing actions should reduce the company’s cash usage by about $30 million to $35 million on an annualized basis.”
Approximate Affected Workforce: 101-500
Nashville Business Journal - November 18, 2008

Magnussen Home
New Hamburg, ON
High Point, NC
Magnussen Home Furnishings has temporarily laid off 16 employees at its New Hamburg headquarters. Chief executive Richard Magnussen said the move was necessary due to slow demand for the company’s furniture in the U.S., which accounts for 80 percent of its sales. Canadian sales have proven solid, Magnussen said. The company, which employs 168 people worldwide, also eliminated five jobs at its High Point, N.C., offices.
Approximate Affected Workforce: 1-50
Waterloo Region Record - November 18, 2008

Meadow Lake Oriented Strand Board Limited Partnership
Vernon, BC
Meadow Lake, SK
The Meadow Lake Oriented Strandboard Ltd. Partnership plant has served layoff notices to all hourly employees, said plant manager Parker Snyder. These notices are effective Jan. 19 and are the result of difficult economic conditions and a housing slowdown, said Snyder. “We’re positioning ourselves in anticipation of difficult market conditions this winter,” he said in an interview. “It is traditionally a slow time for construction.” Brad Thorlakson, president of Tolko Sales and Marketing, which owns the mill, said in a news release the company is working with the government of Saskatchewan on issues within its control. “Unfortunately, further deterioration of our products’ markets and the need to anticipate conditions at least eight weeks from now require us to make this announcement,” said Thorlakson.
Approximate Affected Workforce: N/A
The Star Phoenix - November 15, 2008

MeadWestvaco Corporation
Glen Allen, VA
Sidney, NY
Another Sidney manufacturer has laid off employees because of competition from other countries. Earlier this month, MeadWestvaco Office Products Group in Sidney said 56 employees were temporarily laid off because of seasonal changes in business, and they were to be called back to work as needed. About 1,100 people are employed at the plant, a union official said, and the layoffs were from among 750 local Communications Workers of America workers. Since MWV makes such products as calendars, the layoffs are a regular part of the company’s business cycle, officials said in the release, though the slowing economy has had an impact on sales. MeadWestvaco in a prepared statement Thursday said the company’s leadership continually evaluates staffing needs to remain strong while operating in a cost-efficient manner.
Approximate Affected Workforce: 51-100
The Daily Star - November 14, 2008

MeadWestvaco Corporation
Glen Allen, VA
Grover, NC
MeadWestvaco Corp. announced Monday that it will close a packaging plant in Grover, cutting 120 jobs at the Cleveland County factory. Some production from the factory will be transferred to other plants, Glen Allen, Va.-based MeadWestvaco said in a statement. The facility, which produces packaging for the media and entertainment industry, is expected to close by early next year, the company said. MeadWestvaco said last month that high raw-material costs and a rising U.S. dollar will reduce fourth-quarter profit. Third-quarter net income fell 55 percent as manufacturing costs rose and the slowing economy reduced sales of school supplies, Bloomberg News reported. “In today’s challenging economy, we must focus on managing the cost elements that we can directly control,” Steve Scherger, president of beverage and media packaging, said in the statement.
Approximate Affected Workforce: 101-500
The News & Observer - November 18, 2008

Miller Electric Manufacturing Company
Glenview, IL
Appleton, WI
Miller Electric Mfg. Co. today announced plans to eliminate 95 jobs, or approximately six percent of its 1,500-person workforce. This reduction is in response to the current national economic situation and the corresponding slowdown in demand for Miller’s commercial and industrial products. Miller is a leading manufacturer of arc welding and plasma cutting equipment for industrial, construction, motor sports, farm / ranch and home-hobby use. The company is a wholly owned subsidiary of Illinois Tool Works (NYSE: ITW), based in Glenview, Ill. As part of ITW, Miller does not disclose annual sales. The majority of the company-wide workforce reductions will be in the Appleton area, where 60 office positions will be eliminated, and 35 Miller plant personnel will be laid off between now and early January 2009. Plant personnel releases will be based on seniority. Miller is also offering voluntary separation packages to interested employees. All personnel affected would receive one week’s pay for each year of service, as well as outplacement counseling.
Approximate Affected Workforce: 51-100
Business Wire - November 19, 2008

Motion Industries Inc
Atlanta, GA
North Bay, ON
Motion Canada has temporarily laid off 26 employees to help the Gormanville Road manufacturing facility weather the recent downturn in the economy. There are now 55 staff left on the payroll and branch manager Kelly McCarthy said this should be the extent of their cuts. It was bleed heavy all at once rather than bleed a little every week,” McCarthy said, explaining why such a large percentage of the workforce was cut at once. Motion Canada, a division of Motion Industries and a sister company of global manufacturing giant NAPA Auto Parts, issued a media release late Friday afternoon. McCarthy said he wants to dispel rumors already circulating about inflated layoff numbers. We regret having to lay off anyone, but due to the recent decline in the mining sector and the poor forestry market we were left with no other choice,” the release stated.
Approximate Affected Workforce: 1-50
North Bay Nugget - November 15, 2008

Praxair Technology Inc
Danbury, CT
Tonawanda, NY
Just two weeks after posting record quarterly earnings, Praxair is cutting 60 jobs at its research and development center in the Town of Tonawanda as it prepares for leaner times. The cuts represent 5.4 percent of the company’s workforce of 1,100 at the Praxair Technology Center, which houses the company’s research and development, engineering, information technology and other functions. Spokesman Nigel Muir blamed the “current economic downturn in the U.S. and globally,” which prompted the world’s largest industrial gases company to make “some fairly significant cuts in its planned spending” for the fourth quarter and 2009. Officials are still working on the final numbers, which are confidential, he said. As a result, he said, the company is reducing staff across all functions to keep costs in line with its slimmer operations “as we go into next year.” Muir said the affected researchers, engineers and technology workers will remain on the payroll through the end of the month, and will get severance pay and outplacement assistance.
Approximate Affected Workforce: 51-100
Buffalo News - November 14, 2008

Ranger Boats
Minneapolis, MN
Flippin, AR
Ranger Boats in Flippin laid off 130 employees and extended its normal two-week plant closing to four weeks in December because of a drop in orders from dealers, company officials said Thursday. The layoffs, which were effective Wednesday, represent about 17 percent of the fiberglass boat maker’s 750 employees, human resources director Cheryl Davenport said in an interview Thursday with KTLO Radio in Mountain Home. Davenport told the radio station the layoffs were considered temporary because Ranger anticipated recalling the workers in January. The plant is owned by Genmar Holdings Inc., a recreational boat manufacturer based in Minneapolis, Minn. Genmar President Roger Cloutier also didn’t return phone calls.
Approximate Affected Workforce: 101-500
Arkansas Democrat-Gazette - November 14, 2008

Richardson Industries
Sheboygan Falls, WI
Sheboygan Falls-based Richardson Industries Inc. announced that it has laid off 18 production workers at its yacht interiors plant following an industry-wide drop in yacht sales. The employees were let go last week, according to Gary Kane, president of Richardson Yacht Interiors, who said the boating industry as a whole is being hit hard by the economic downturn and a lack of credit for consumers looking to purchase high-end recreational boats. “It’s all part of the credit crunch,” Kane said. “Financing for people looking to get a boat is just not a high priority for lenders right now.” The layoffs bring the division’s total workforce to about 40 employees, down from its high of about 60 this summer. The laid off workers were employed at the Richardson Yacht Interiors plant, 904 Monroe St., in Sheboygan Falls, which produces upscale furniture for world-class yacht builders.
Approximate Affected Workforce: 1-50
The Sheboygan - November 14, 2008

Schaeffler KG
Herzogenaurach, Germany
Spartanburg, SC
Schaeffler Group officials say the automotive parts maker is shipping nearly 120 jobs from its INA ball bearings plant in Spartanburg to Mexico over the next six months. The vice president of human resources for Schaeffler’s U.S. headquarters in Fort Mill said the move is necessary for the company to be competitive. Greg Tinnell says production and shipping jobs will go to the company’s new plant in Iraputo, Mexico. The Herald-Journal of Spartanburg reported Thursday the loss will leave about 60 employees in Spartanburg, down from about 400 last year. The plant’s products include bearings and engine parts for auto manufacturers. Tinnell said workers laid off will get a severance package.
Approximate Affected Workforce: 101-500
The Associated Press - November 14, 2008

Sea Ray Boats Inc
Lake Forest, IL
Merritt Island, FL
Sea Ray Boats in Merritt Island laid off 60 of its remaining 255 workers Thursday, another in a series of layoffs brought on by the wounded economy that has reduced the work force to a sixth of its February level. The remaining workers face a holiday furlough, said Dan Kubera, spokesman at Lake Forest. Ill.-based Brunswick Corp., Sea Ray’s parent company. “There is no talk about a closure,” Kubera said. The layoffs involve hourly and salaried workers throughout Sea Ray’s production, development and engineering areas.
Approximate Affected Workforce: 51-100
Florida Today - November 14, 200

Simmons Bedding Company
Atlanta, GA
Simmons Bedding Co. will slash its salaried workforce by 20 percent due to the souring economy, the privately held bedding and mattress company said. The cuts include voluntary and involuntary layoffs and employees at all levels and divisions of the Atlanta-based company. “The decision to move forward with a workforce reduction is never easy, but we determined that it was necessary in order for Simmons to weather the economic downturn and be properly positioned when the economy recovers,” said Simmons President and Chief Operating Officer Steve Fendrich, in prepared remarks. “This past year has been very difficult for the entire bedding industry, which, in turn, has affected our retail customers and our company.”
Approximate Affected Workforce: N/A
Atlanta Business Chronicle - November 17, 2008

Snorkel International Inc
Washington, England
Elwood, KS
Snorkel International laid off a small number of employees on Friday. The layoffs came a week after workers at the Elwood, Kan. plant received letters stating the company might be headed toward more layoffs by Jan. 6. Dan Jenkins, a spokesperson for Tanfield Group, Snorkel’s parent company, couldn’t confirm the exact number of employees let go on Friday. One hundred workers laid off in September. The plant was shut down for a week in October and Mr. Jenkins said that the plant is scheduled for a two week shut down around Christmas. Snorkel manufactures and assembles commercial aerial lift platforms.
Approximate Affected Workforce: N/A
St Joseph News-Press - November 17, 2008

The Black and Decker Corporation
Towson, MD
Brockville, ON
Eight people are losing their jobs at Brockville’s Black and Decker plant as a result of a restructuring in the Canadian division of the manufacturer. Mike Staniford, vice-president of sales and service at Richmond Hill, said three employees were laid off in distribution and five technicians are losing their jobs in four to six weeks because of the closure of a repair shop in Brockville. “Anytime we have to let anybody go, it’s obviously bad news,” said Staniford, noting the local plant employs almost 100 people. He said the layoffs were announced a couple of days ago and affected all divisions across the country. He wasn’t able to provide details of severance provided to the employees but said that is an element the company takes into account. “We pride ourselves in giving them healthy severance packages in recognition of the service they’ve given to the company,” said Staniford. He said 30 employees across the country - almost 10 percent of the workforce - have been laid off because of the restructuring, which reflects the weakening economic conditions around the globe.
Approximate Affected Workforce: 1-50
Source: The Brockville Recorder and Times - November 15, 2008

United States Steel
Pittsburgh, PA
Gary, IN
Ecorse, MI
River Rouge, MI
Granite City, IL
Fairfield, AL
More than 50 employees at Fairfield Works are being laid off as part of a cost-cutting move by U.S. Steel Corp., which is eliminating 500 jobs in facilities across the country. Pittsburgh-based U.S. Steel declined to say how many layoffs are occurring at the massive steel complex west of Birmingham, but a United Steelworkers official said the number was around 52. Fairfield Works has 1,410 workers, the company said. U.S. Steel officials began notifying employees at Fairfield Works and other U.S. plants about the layoffs on Wednesday and Thursday, according to John Armstrong, a company spokesman. He blamed the move on the economic downturn, which has cut demand for steel products. He said the company hopes to rehire laid-off employees when demand picks up. ”We tried to hold on as long as we could, but the economy has forced us to adjust our production operations,” Armstrong said. Besides Fairfield Works, the layoffs will affect workers at U.S. Steel facilities in Pittsburgh; Gary, Ind.; Ecorse and River Rouge, Mich.; and Granite City, Ill.
Approximate Affected Workforce: 101-500
Birmingham News - November 14, 2008

United States Steel
Pittsburgh, PA
Hamilton, ON
One Hamilton steelmaker is laying off workers as the global financial crisis continues to batter the steel industry. U.S. Steel Canada is temporarily laying off 175 employees at its Hamilton plant as it extends the shutdown of its blast furnace. Steelmakers have been pummeled by the global economic slowdown and a steep slide in orders from key customers, including automakers. Laid-off workers at U.S. Steel Canada will not be called back until the Hamilton blast furnace, the heart of the plant’s steelmaking operations, is brought back to life following a shutdown that started late last month, said Rolf Gerstenberger, president of the United Steelworkers union at the plant.
Approximate Affected Workforce: 101-500
The Hamilton Spectator - November 14, 2008

Universal Veneer Mill Corporation
Newark, OH
Heath, OH
Universal Veneer Mill Corp. announced Tuesday it laid off 48 production employees Friday at its Tamarack Road facility, which produces and sells veneer. Dieter Heren, the company’s chief executive officer, said the difficult decision was based primarily on the sudden loss of a major customer that represented 20 percent of local production. He regrets the timing, coming just before the holidays. “It is emotional because you’re dealing with human lives and a lot of people have been with us many years,” Heren said. “It’s unfortunate. We simply did not have an alternative.” The company employed 252 at the Tamarack Road plant and 30 at its sales office near Heath before the layoffs. The plant eliminated its third shift, effective Friday.
Approximate Affected Workforce: 101-500
The Associated Press - November 20, 2008

Vermont Store Fixtures Corporation
Danby, VT
The economic downturn is hitting a Danby business that makes fixtures for retail and grocery store chains. The founder of the Vermont Store Fixture Corp. says 57 workers were laid off this month, leaving 30 workers at the company’s Route 7 facility. Founder Bob Sherman says the company’s average employment earlier this year was 90 workers. The 30-year-old Vermont State Fixture makes custom wooden counters, cabinets, mill work and displays. Sherman founded the business in New Jersey in 1970 and moved to Danby eight years ago. Sherman says he saw the slump coming and advised his workers earlier this year to make plans to look for other jobs.
Approximate Affected Workforce: 51-100
The Associated Press - November 18, 2008

Vocollect Inc
Pittsburgh, PA
Vocollect Inc., a maker of wearable, voice-activated computers, laid off 90 workers, including 65 at its headquarters in Wilkins, a spokeswoman said Thursday. Jennifer Clement, senior director of marketing in Vocollect’s health care division, attributed the layoffs to a slowdown in retail sales activity nationally. The retail sector makes up the majority of the company’s client base and, as a result, Vocollect has “restructured” its workforce. Vocollect makes a voice-activated technology used by warehouse and distribution workers for retailers such as Giant Eagle, Pep Boys, Office Depot and Pier One Imports. Employment at the Wilkins office is 350, Clement said.
Approximate Affected Workforce: 51-100
Pittsburgh Tribune Review - November 14, 2008

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