The New Economy
Merrill Lynch, one of the largest investment banks in the world, lost $4.9 billion this past quarter. Merrill has written down $40 billion since the credit crisis began a year ago. They are selling $8 billion in assets, including their stake in Bloomberg, to raise fresh capital. I expect thousands of additional job layoffs from Mother Merrill.
They’ve terminated talks with the Port Authority of New York over moving their headquarters to one of the new 71-story office towers planned on “ground zero.” The timely rebuilding of the World Trade Center site is now in jeopardy.
“I would love to kiss you.
The price of kissing is your life.
Now my loving is running toward my life shouting,
What a bargain, let’s buy it.”
Poem by Jelaluddin Rumi
“Dance, when you’re broken open.
Dance, if you’ve torn the bandage off.
Dance in the middle of the fighting.
Dance in your blood.
Dance, when you’re perfectly free.”
Another poem by Jelaluddin Rumi
The Marina Moon Fashion Show scheduled for 1:00pm today has been postponed due to unforseen circumstances. I’ll post the reschedule date asap. Thanks for understanding.
July 19th, 2008 at 6:35 am
Another smart one!
The poems by Jelaluddin Rumi are so beautiful! I didn’t know that!
Carolina Langes last blog post..Vacation
July 19th, 2008 at 6:58 am
scary economy times.
jessias last blog post..My Italian Buddha
July 19th, 2008 at 6:59 am
scary economy times.
jessicas last blog post..My Italian Buddha
July 19th, 2008 at 7:16 am
I saw a movie of Spongebob selling hamburgers together with his friend the starfish, in a stand along the street. They sold colored hamburgers, a nouveauté, and everybody wanted to buy one or more. Then behind in the queue, there were poor people who couldn’t afford the hamburgers. Now friend Starfish took money from the mountain of money already earned and distributed it among the poor to enable them also to enjoy the colored hamburger. I think this is exactly what the banks did.
Erik Tjallinkss last blog post..Religious doubts…
July 19th, 2008 at 7:25 am
The expectation that prices of real estate will continuously rise is ridiculous, but banks have been expecting it. Now they, and all other money institutions all over the world, realize that when supply is higher than demand prices will decrease, they realize that they have too many houses for sale of people who can’t pay their mortgage debts anymore. Serves them right, but what about the homeless?
Erik Tjallinkss last blog post..Religious doubts…
July 19th, 2008 at 7:31 am
Merrill is employing new executives like Thomas Montag, who was previously with Goldman Sachs (Goldman Sachs avoided most of the losses of the U.S. subprime mortgage market) and it was reported in the Wall Street Journal of May 5 he’s to be guaranteed a stock and cash bonus of $39.4 million next year as head of global sales and trading for both debt and equities.
CEO’s of large securities firms in the past few years’ remuneration packages varied, but reports suggest amounts ranging between $21 million and $54 million each.
Soon, as hapless shareholders meet at annual meetings they must surely ponder why it must be so and hopefully will push for resolutions to limit top pay and make it conditional on shareholder voter acceptance. More emphasis is needed on long term sustainability and to link it to remuneration, e.g. Stock options which are converted to shares are not be sold whilst those recipients remain employed in the company. Their free to receive the dividends but not to sell the shares.
But more importantly I do hope Barrack Obama, should he claim the White House, will introduce legislation on sensible corporate pay limits.
best wishes
Lindsaylobes last blog post..What’s going on in the USA?
July 19th, 2008 at 2:09 pm
Yep… when banks go bankrupt, you know it means trouble. That said, I’d expect a stockbroker to have some savings, unlike the rest of us!
Zhus last blog post..How To Visit Canada (3/10)
July 19th, 2008 at 2:30 pm
I feel sorry for none of them… They did it to themselves… Just another bubble. When will they learn?
July 19th, 2008 at 2:31 pm
hmmm comment luv didn’t seem to work
John J Savo, the Authoring Auctioneers last blog post..Moths are the Dumbest of Creatures
July 19th, 2008 at 6:48 pm
Neat post - I was wondering if the price of gas goes up more if magicians might “do magic tricks for gas”? Because I have done magic for tips or spare change.
I hope you have a great weekend Seraphine.
Glenn Bishop
July 19th, 2008 at 10:41 pm
I came by to offer congrats for the show. Hope it works out soon.
There was an article in the NY Times today titled ‘US Economy - Too Big To Fail?’
susans last blog post..at what cost?
July 20th, 2008 at 7:30 pm
So many problems in America…sad…just sad.
July 20th, 2008 at 7:37 pm
Merrill Lynch can kiss my ass.
Esteban Moodys last blog post..Say What?
July 21st, 2008 at 1:30 pm
Its amussing to me how unstable our economy can be. The government went from the gold standard to this new form of made up paper economy a while back and we havent been truly stable since. So i wonder who this form of economy favors and why we changed. Well the answer is simple. The banks. If you wonder who really runs the country the answer isnt difficult. Just follow the money. The banking system has quietly over the last 5 centuries taken over the world and few really know that it happened. They just accept the system as is and dont question it because it seems to work. It doesnt. The worlds debt not just ours has steadily risen over the last couple of centuries and these are the people who finance evil like in world war 2 when hitler wanted to finance his war. Who did he go to? the banking system. And who do you think keeps the terrorist organizations money for them? You know the answer.
July 21st, 2008 at 10:24 pm
As Dudley Moore once said: “They say (of course we all know who ‘they’ are)” …that the housing crisis will bottom out. But when is the question. I think it is sad for those who were naive and manipulated. But for new couples, they may get a break to own what would have taken a long time to save up for just in terms of a down payment alone. So, I try to see some ray of light here in this mess created gain by greed. lol!