Continue reading General Electric to Energize Electric Car Market

General Electric to Energize Electric Car Market originally appeared on BloggingStocks on Thu, 11 Nov 2010 17:00:00 EST. Please see our terms for use of feeds.

It has been a long time since a state other than Michigan had the honor of claiming the highest unemployment rate in country. The May unemployment numbers show that it is Nevada, not Michigan, that now has the highest rate of unemployment.

Michigan has held the title for highest unemployment since April 2006, when the automotive industry took a nose dive. But Nevada jumped into the lead by posting a 14% unemployment rate in May. In comparison, Michigan's unemployment level is currently sitting at 13.6%.

Continue reading Michigan No Longer Boasts Highest Unemployment Rate

Michigan No Longer Boasts Highest Unemployment Rate originally appeared on BloggingStocks on Sat, 19 Jun 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Unemployment continued to rise in August

Unemployment continued to rise in August originally appeared on BloggingStocks on Fri, 18 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

Deutsche Bank (NYSE: DB) expects almost half of all U.S. homeowners to be underwater -- figuratively, of course -- by 2011.

Declines in home prices and the fact that some of those difficult mortgages just aren't going away put 26% of homeowners in this situation by the end of last March, and it seems the situation is only going to get worse. Unlike the early stages of the credit crisis, which were driven by subprime mortgages, the next iteration will have a greater effect on prime mortgage borrowers, which comprise two-thirds of the loans outstanding.

Continue reading Half of all mortgages to be underwater by 2011

Half of all mortgages to be underwater by 2011 originally appeared on BloggingStocks on Thu, 06 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Continue reading 15 states now have more than 10% unemployment

15 states now have more than 10% unemployment originally appeared on BloggingStocks on Fri, 17 Jul 2009 17:00:00 EST. Please see our terms for use of feeds.

The federal government, for better or worse, has been increasing the money supply as fast as it can in an attempt to prevent a collapse of our financial system, stabilize the housing market, improve the employment outlook and rehabilitate our nations infrastructure.

Most economists have some fear of inflation as a result of this, even if the fear is not for three to five years. To combat the increase in money supply we need to balance it out with an increase in productivity.

Continue reading GE invests in Michigan, USA -- new technology center

GE invests in Michigan, USA -- new technology center originally appeared on BloggingStocks on Tue, 30 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: When a loss is a win (GE, PALM, POT, NKE, MU)

Closing Bell: When a loss is a win (GE, PALM, POT, NKE, MU) originally appeared on BloggingStocks on Fri, 26 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Unemployment continues its rise in April

Unemployment continues its rise in April originally appeared on BloggingStocks on Tue, 26 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Rising unemployment will result from more than just trouble in private industry, and that could help push the jobless rate closer to 10% as the year passes. States and municipalities are working harder and harder to cut their work forces, or at least curtail their work hours and benefits.

According to the AP, "Unions argue their members shouldn't be singled out and are even more vital in hard times -- securing neighborhoods and prisons, educating children and providing social services to growing numbers of citizens." That may be accurate, but states running huge deficits will grasp at any life preserver they can find.

The problem raises the subject of how the $825 billion stimulus package can be be used. Putting it into infrastructure projects may work, but that will take time. Building out roads, the energy grid, and broadband systems can require months of planning. Those are months the economy does not have.

Putting money directly into state treasuries has a nearly immediate positive impact. Tens of thousands of workers in places from California to Michigan could keep their jobs. It may not create new employment, but is certainly keeps joblessness from spiking higher.

Douglas A. McIntyre is an editor at 247wallst.com.

More pressure on employment: States push for jobs cuts originally appeared on BloggingStocks on Sat, 24 Jan 2009 10:10:00 EST. Please see our terms for use of feeds.

There is increasing evidence that states like California and Michigan, which are running huge budget deficits, will need federal aid to keep their essential services operating. They could plummet an already battered federal budget billions of dollars further into a deficit.

The need for state bailout funds seems to be growing and growing quickly. According to MSNBC, "In Ohio, which has shed 100,000 jobs in the past year, Gov. Ted Strickland (D) and his budget team spend a lot of time delivering bad news to constituents and plotting ways to wring money from the federal government." The state's two-year budget deficit could rise to well over $7 billion.

In places like Ohio and Michigan, matters are only going to get worse. Big industrial states are extremely likely to lose more jobs and businesses as sectors from automotive to retailing may see some companies disappear completely.

The issue that becomes more troubling every day is whether there is a finite limit to what the federal government can spend to save the national economy. Of course there is, but no one knows that number, which means no one can predict which industries and municipalities will get capital.

With so many beggars, the new Congress and administration are going to run low on hand-outs.

Douglas A. McIntyre is an editor at 247wallst.com.

State governments look for hand-outs originally appeared on BloggingStocks on Mon, 29 Dec 2008 07:26:00 EST. Please see our terms for use of feeds.

If one of more of the car makers fails, unemployment in Michigan could go above 10%. The state is already the mortgage foreclosure capital of the world. The tax base has bee ravaged. Michigan may not be able to take much more.

According to The Wall Street Journal (subscription requited), "Michigan has been in a seven-straight year recession," says Patrick Anderson, chief executive of Anderson Economic Group, an East Lansing, Mich., consulting firm.

The news headlines about states in trouble have gone to California. But it does not rely on one industry for a huge portion of its employment. Car companies are also major tax payers. Michigan's budget could go billions of dollars into the red if that income disappears.

What happens if a car firm goes down? Michigan could go into receivership. It has already happened to several of the cities there, including Flint, one of the largest.

Of course, if that happens, the federal government will be left holding the bag. Congress will have to find another few billion to fix what is becoming a long, long line of bailouts.

Douglas A. McIntyre is an editor at 247wallst.com.

With car companies on the brink, Michigan may be the next bailout originally appeared on BloggingStocks on Sat, 13 Dec 2008 13:40:00 EST. Please see our terms for use of feeds.

The state of California is nearly out of money and nearly out of options.

According to the San Francisco Chronicle, Gov. Arnold Schwarzenegger sharpened his attack Wednesday against his fellow Republicans as he declared that California's budget shortfall has grown to $14.8 billion for the current fiscal year -- several billion more than the shortfall legislators already have been unable to solve.

One option to balance the budget is to cut state services. Politicians rarely like that. It looks bad to the voters. The Legislature could raise taxes on homes and businesses. That looks bad to the taxpayers, too. With falling home prices, failing businesses, and rising unemployment, getting more money into the state treasury may also be impractical.

That brings the conversation around to what happens on the day California can't pay its bills -- any of them. State workers don't get checks. Neither do contractors. Business failures and unemployment gets worse. The house begins to collapse in on itself.

It is too early to make a definitive statement about the eventual solution, but the only ready source of the magnitude of capital needed is the federal government. That would be the same federal government that is printing money to save banks, car companies, and mortgages. How many states will get into real trouble in the next couple of months? Add Michigan and Florida to the list. Unemployment is rising and property prices are plunging. The situation could give the bailout war a whole new front to fight on.

Douglas A. McIntyre is an editor at 247wallst.com.

California economy crashes originally appeared on BloggingStocks on Thu, 11 Dec 2008 12:27:00 EST. Please see our terms for use of feeds.

Michigan mulls fallout of possible GM-Chrysler merger originally appeared on BloggingStocks on Mon, 20 Oct 2008 12:00:00 EST. Please see our terms for use of feeds.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

Is there any piece of furniture more classically American than the La-Z-Boy recliner? It goes hand in hand with the image of Dad -- any Dad, all Dads, from the 1950s to today -- enjoying the simple pleasure of sitting with his feet up and his head back, tempting sleep as he reads the paper. After a long day at work but before the wife puts a delicious roast on the table, there's always time to relax a bit in the world's most famous comfy chair.

La-Z-Boy (NYSE: LZB) invented the first version of that iconic chair in 1929. The company got its start a few years earlier when two cousins, Edward M. Knabusch and Edwin J. Shoemaker, founded the Kna-Shoe Manufacturing Co. in Monroe, Michigan. They made furniture and cabinets in the proverbial start-up garage, and they has some initial success, especially with new designs like the Gossiper, a bench with a phone stand built in. But competitors kept stealing their designs and their profits. So when someone suggested that they upholster their popular wooden recliner, they proceeded carefully, filing for patents and choosing a distinctive name. Sit-N-Snooze and Slack-Back were in the running, but La-Z-Boy was the name they finally selected for the world's first reclining upholstered chair.

The La-Z-Boy was a huge hit, although it hadn't yet achieved its truly classic form. That occurred in 1953, when the Otto-Matic model was introduced. The long-running problem of the ottoman, a separate piece of furniture needed to support the feet while relaxing in a comfy chair, had now been solved. From now on, the ottoman was rendered superfluous, since the La-Z-Boy could offer a built-in foot rest. Oh, sweet perfection!

Continue reading Big company, small town: La-Z-Boy, Monroe, Michigan

Big company, small town: La-Z-Boy, Monroe, Michigan originally appeared on BloggingStocks on Sat, 28 Jun 2008 17:10:00 EST. Please see our terms for use of feeds.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

There are probably very few people growing up in North America that have not had Kellogg's (NYSE: K) cereal at some time. I know people that have breakfast cereal for lunch or diner as well. It is the number one U.S. breakfast cereal maker, ahead of General Mills (NYSE: GIS). Among its well-known brands are Frosted Flakes and Rice Krispies.

The company, founded by Keith (W.K.) Kellogg and brother, Dr. John Harvey Kellogg, began with only 44 employees in 1906. Today it employs more than 30,000 people, manufactures in 18 countries, and sells products in more than 180 countries.

Kellogg is a big company in a small town but it is not alone. Battle Creek, Michigan, known as the "Cereal City," is the world headquarters of Kellogg Company and also the home of Post Cereals, which was part of General Foods Corporation and is now part of Kraft Foods (NYSE: KFT). When Kellogg started, there were 42 other cereal companies in Battle Creek.

Continue reading Big company, small town: Kellogg Co., Battle Creek, Michigan

Big company, small town: Kellogg Co., Battle Creek, Michigan originally appeared on BloggingStocks on Sat, 28 Jun 2008 10:10:00 EST. Please see our terms for use of feeds.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

The Dow Chemical (NYSE: DOW) is capitalized at about $40 billion dollars and produces a multitude of household and industrial products that probably touch most Americans lives in some way. It is the largest chemical company in the U.S. and number two worldwide (ahead of ExxonMobil and behind BASF), and it is also a leader in performance plastics.

On May 18, 1897, Dow Chemical incorporated, based on Herbert H. Dow's plan to manufacture and sell bleach on a commercial scale. A year later they were in full-scale commercial production. The Dow-in-diamond mark was created to help resolve product shipping problems. In 1900, the Midland Chemical Company merged into Dow Chemical.

The company was always evolving under the guidance of Mr. Dow, who in 1913 announced the company would exit the bleach business to refocus to the value of chlorine as a raw material, prompting Dow stock to rise dramatically.

Continue reading Big company, small town: Dow Chemical, Midland, Michigan

Big company, small town: Dow Chemical, Midland, Michigan originally appeared on BloggingStocks on Thu, 26 Jun 2008 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Survey shows airline passengers not happy with service

Survey shows airline passengers not happy with service originally appeared on BloggingStocks on Tue, 20 May 2008 12:38:00 EST. Please see our terms for use of feeds.

This post is one of several on business heirs apparent. Let us know in the comments whether you think Roger Penske, Jr., should take up the reigns of Penske, and be sure to check out the other heir apparent posts.

Roger Penske is as much a fixture of the auto racing world as any person could claim to be. At 70 years old, he's still an effective if not brilliant leader, with his hands on the wheel of a carefully built, racing world success. You have to wonder though, if Roger Penske is getting ready to step aside and let some new talent slip into the driver's seat. If a change in leadership fits into his immediate or mid-range plans, who might his replacement be?

With four sons and one daughter, Roger has no shortage of Penske offspring who might be considered for stepping into the racing patriarch's formidable shoes. The question is, are any of them fit for the job? We may have gotten just a glimmer of what's to be expected by the recent stepping down of Roger Penske, Jr., from his position as president of Penske Automotive Group Inc. (NYSE: PAG). Roger, Jr., is reported by Crain's Detroit Business to be retiring from Penske Automotive and purchasing four California auto dealerships from Penske Corp. Is this change to facilitate his being groomed to step into his dad's position? No source I've seen appears to be sure if that is the case.

Continue reading Heir apparent: Team Penske has room on the inside groove

Heir apparent: Team Penske has room on the inside groove originally appeared on BloggingStocks on Thu, 20 Mar 2008 14:40:00 EST. Please see our terms for use of feeds.

Many will argue that this country needs some fresh faces in the political arena. But is a rock guitarist with polarizing views what people have in mind? For years, musician and second-amendment fan Ted Nugent has hinted at making a run for political office in Michigan or Illinois. The 58-year-old rock icon responsible for "Cat Scratch Fever" is still keeping this goal in mind. Before a recent concert, he told reports that "I have threatened [to run for governor of Michigan in 2010] and I was sincere ... Michigan was once a great state ... now the pimps and the whores and the welfare brats are basically the state's babies."

Good to see he's toning down his rhetoric in preparation for a move into politics.

America is certainly not averse to putting pop-culture figures in office. Arnold Schwarzenegger, Fred "Gopher" Grandy, and of course Ronald Regan top the list. Don't forget about Jesse "The Body" Ventura, the former professional wrestler-turned-governor of Minnesota. But all of these men may have a broader appeal than Ted Nugent, who is simultaneously entertaining and turbulent. Appearances such as various turns on Viacom's (NYSE: VIA) VH-1 network hint that Nugent could be quite a loose cannon, which isn't an ideal trait for someone wielding important political control.

On the plus side, he has been a long-time critic of drug use and practices a clean lifestyle. He is happily married and lives a calm life of ease on a Texas ranch where he enjoys "barbecue every day [and] a lot of charity work]." Nugent has a couple of years to weigh the decision with his family and his constituents before throwing his camouflage-printed cowboy hat in the ring. The rest of us have a nice long time to think of puns using the titles to various Damn Yankees songs.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Gubernatorial Scratch Fever: Ted Nugent hopes to rule Michigan? originally appeared on BloggingStocks on Mon, 20 Aug 2007 18:30:00 EST. Please see our terms for use of feeds.

Each weekday, I'll be bringing you my list of the five best articles from the staff at The Motley Fool:

1. Investing in Your Backyard: Michigan This piece gives an overview of some of some of the top publicly traded stocks in Michigan, including (of course) General Motors and Ford, but also Border's and Pulte Homes.
2. ConAgra's Tasty Quarter Michael Leibert takes a look at one of Jim Cramer's least favorite stocks. A laggard over the past few years as it attempts to sell off its commodities businesses to focus on its brands (like Healthy Choice, Chef Boyardee, and Hunt's), the company rebounded this quarter with a 38% gain in earnings after extraordinary items.
3. The 40-Year Old Savings Virgin With a title like that, I probably don't even have to tell you any more to get you to read the article. It's an interesting (albeit un-earth-shattering) look at the importance of starting early in saving and investing. Show it to your kids and grandkids.
4. Buffett Small Cap Investing This is an interesting take on Warren Buffett's ideas about investing in small cap stocks for huge profits over short periods of time. It's different from the buy-and-hold stuff that is now associated with Buffett, but it's how he earned the best returns of his career with the Buffett partnership. On a side note, this (big investments in a few small cap stocks) is how I've made most of gains in the market.
5. 3 Questions to Ask Before Selling This is a good article to read and remember. I always try to ask myself these questions before I sell a stock.
   
   

The foolish five: The best of Motley Fool originally appeared on BloggingStocks on Wed, 27 Dec 2006 11:05:00 EST. Please see our terms for use of feeds.