Explaining Southern California's economy

Reportings: Jobless claims; bad economy; Great Aggregation Debate; Soros is worried

Early jobless-claim numbers for September surprise forecasters. But it could all be a cruel ruse by the economy: "'Apart from what might be an anomaly, the underlying trend in the labor force is still disappointing,” said Sean Incremona, a senior economist at 4Cast Inc. in New York. “There is a lot of economic uncertainty weighing on the broader economy.'" (BizWeek)

 

Could one person out of every 10 — the starry-eyed optimist — be right? Talk about fighting the current: "According to a Field Poll released Tuesday, 91% of California voters say the Golden State's economy is experiencing 'bad times.' It’s the third year in a row that more than 90% of voters have depicted the state's economy in a negative light." (LAT)

 

Business Insider's Henry Blodget does a little startup standup as the Great Aggregation Debate heats up. Just a whiff of paranoia entering the picture, however. (BI)

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Reportings: Yahoo for sale; JOBS!; Cordray versus Congress

Henry Blodget says that Yahoo, now that's it's axed CEO Carol Bartz and pretty much admitted that it's for sale (again), should buy Business Insider and hire "us" as CEO. We're going to assume that by "us", Henry means "Henry." He you have it: "We offer to allow Yahoo to buy Business Insider Inc., for $150 million.  And we offer to allow Yahoo to then appoint us acting CEO of the company…Once we have been appointed acting CEO of Yahoo, we will implement our plan." (Business Insider)

 

"How to bring the jobs back." The New York Times goes big, big, BIG on the Opinion page, serving up four provocative solutions to the unemployment crisis. (NYT)

 

According to Jay Carney, Obama's $300 billion jobs package "would be "paid for," not financed through deficit spending." (LAT) 

 

The battle over the confirmation of Richard Cordray to lead the Consumer Financial Protection Bureau has begun. Who's Richard Cordray? He's so not Elizabeth Warren. (LAT)

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Bank of America saved by Warren Buffett – for now

Bank of America’s stock price has dropped by 50 percent since the beginning of year, amid speculation that it was confronting additional write-offs related to subprime mortgages, wanted to unload investment back Merrill Lynch (no takers), might be merging with JP Morgan Chase, and was facing a capital crisis that caused investors to strongly suspect that the bank wasn’t muddling through the economy’s current soft patch but was in fact insolvent. Treasury Secretary Tim Geithner was prepping the bailout! Game over was just days or weeks away!

Three bloggers created a kind of tag-team to parse the meltdown of the country’s second-biggest bank. Yves Smith at Naked Capitalism (who had already started a B of A Death Watch) and Zero Hedge drilled into the numbers, while Henry Blodget at Business Insider summed it all up, was attacked by B of A for talking smack about the true value of the bank’s assets, and then proposed that the government closely monitor B of A’s slide, taking it over once it falls beneath a certain threshold and restructuring it to prevent a Lehman 2 event that would bring down the U.S. and probably world economy:

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