Intersecting Minds: Education, Business and Technology at the North Carolina State Jenkins Graduate School of Management

Wednesday Morning Quick Hits | February 18, 2009

More bad news out of the housing sector this morning. Housing starts fell almost 17%. Bloomberg is describing this as the “worst real-estate slump since the Great Depression.”

On the heels of this news, President Obama is scheduled to unveil his foreclosure plan later today. The administration has set aside $50b to aid homeowners and remedy what’s turning into a cataclysmic situation. There were over 1,000,000 foreclosures last year, and experts expect another 2,000,000 foreclosures this year.

GM and Chrysler presented their restructuring plan to Congress yesterday. They plan to slash 50,000 jobs between them and are looking for a combined $21b in aid.

Goodyear announced that they will lay off 5,000 workers.

Have we found another Bernie Madoff? It appears that Robert Allen Stanford, a Texas financier,  ran his own $8b fraud on investors. While not as severe in size and scope as Madoff’s transgressions, this revelation “is likely to further erode confidence among investors who place money with investment advisers.” Not exactly what the economy needs right now.

Stocks are set to rebound slightly from yesterdays drop.


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