Obama faces high-stakes China, Russia meetings

LONDON (AP) -- Stepping onto the world stage for the first time in his two-month presidency, Barack Obama is holding face-to-face talks with the leaders of the two nations - Russia and China - most aggressively challenging the U.S. position atop the global order.

Obama is meeting separately Wednesday with Russian President Dmitry Medvedev and Chinese President Hu Jintao. Officials in both countries have called for a new global currency to end the dollar's dominance.

Dramatic in itself, the suggestion is also a sign of broader questions about whether U.S. status in the world could be threatened by the rise of a competing power bloc.

It's not likely that the new currency idea will gain immediate traction. But Steven Schrage, an international business expert at the Washington-based Center for Strategic and International Studies, said it could eventually if the Obama administration doesn't tackle the perception that the wave of massive stimulus spending in the United States could create unsustainable debt levels.

"People will be very closely reading the tea leaves," Schrage said.

That's one reason the public will see little of the meetings. Both are being held at the U.S. ambassador's residence, with the news media only allowed into the room before the talks take place and without the ability to ask questions.

Obama and his wife, Michelle, had a low-key arrival in Britain Tuesday night to launch an eight-day, five-country European tour.

The centerpiece of the president's London stay is a summit of the world's top 20 economies on the global economic meltdown. Obama's preparations continued even as he flew across the Atlantic. He consulted by phone with the summit host, British Prime Minister Gordon Brown.

The meetings open with a working dinner Wednesday night and continue throughout Thursday.

Also Wednesday, Obama is seeing Brown in person for meetings and a joint appearance before the press. With Brown's political future in doubt, Obama is later squeezing in talks with Brown's main rival - David Cameron, the leader of Britain's opposition Conservative Party.

In the afternoon, Obama heads to Buckingham Palace for an audience with Queen Elizabeth II.

With U.S.-Russia relations having deteriorated in recent years to lowest point since the early 1980s, the Obama administration has announced its desire to "press the reset button." The Kremlin has made clear it believes it is up to Washington to open the effort with concessions.

Obama has indicated less enthusiasm than predecessor George W. Bush for a proposed new U.S. missile defense system based in Eastern Europe, an idea that has enraged Russia. Another key area of discussion is the possible replacement of the dying 1991 Strategic Arms Reduction Treaty, which limited the world's two largest nuclear arsenals. START expires Dec. 5. Obama and Medvedev are expected to announce talks on a new pact.

They would be the first major arms control negotiations since 1997. But a thicket of disputes makes meeting the deadline unlikely.

With Moscow eager to boost its battered prestige, Reginald Dale, a CSIS Europe scholar, said Obama can't afford to employ the soft touch with Russia.

"Medvedev will be taking the measure of Obama," Dale said. "It's not enough just to say, 'Let's be friends.' ... They think, oh, here's someone I can lead up the garden path."

But, said White House press secretary Robert Gibbs: "Nobody believes that change in our relationship means giving everyone all they want. ... That's certainly not the intention of the president."

Obama's talks with Hu are sure to address Beijing's concerns about the safety of its position as Washington's biggest foreign creditor, with about $1 trillion in U.S. government debt. For the U.S., there are fears that any Chinese flight away from those investments would erode the U.S. ability to spend more on recession-fighting.

For China, unusually forthright of late in challenging the U.S.-led global order, its goal is a greater say in how international finance is regulated and managed.

Beijing and Washington also have sparred over military matters.


By JENNIFER LOVEN
AP White House Correspondent

I give credit The AP for this story

GM, Chrysler race deadlines to hold off bankruptcy

DETROIT (AP) -- He doesn't know exactly what the Obama administration wants him to cut, but Fritz Henderson, the new CEO of General Motors Corp., isn't waiting around to find out. Cut deeper. Work harder. Move faster. That's how he described the ailing automaker's urgent effort to meet a June 1 deadline to fix its debt-ridden balance sheet, cut billions in costs and take other steps to transform itself into a profitable entity.

It's the same government-imposed race that Chrysler LLC is running, only GM's smaller neighbor has to cover more distance in half the time.

The Auburn Hills, Mich., automaker must make the same cuts as GM, and sign up Fiat Group SpA as a partner, all in 30 days. Fiat's CEO jetted to Detroit for intense negotiations, but if Chrysler doesn't meet the deadline, it's almost certainly destined for the auction house.

For GM, failing to take quick action means surrendering to court supervision in bankruptcy. The company has resisted bankruptcy talk in the past, but Henderson said Tuesday it is now "certainly more probable."

The companies have yet to receive specifics from the task force on how much more they must cut and where, but Henderson is proceeding with deeper cuts and pulling previously announced measures forward.

"We need to reinvent General Motors, and we need to do it in a very, very abbreviated time frame here in 2009 so that we're not spending our time careening from crisis to crisis in the future," he told reporters at GM's headquarters complex in downtown Detroit.

There are formidable obstacles, though. Even with less demanding hurdles in the government's original loan terms, GM's bondholders have been reluctant to settle their $28 billion for what may be pennies on the dollar. The company still hasn't reached a deal with the United Auto Workers on funding a union-run trust that will take over retiree health care costs.

It's uncertain whether they can work together to compromise on their competing interests, even though failure means they stand to lose a lot more.

It was clear, though, that every scenario will include more pain for just about anyone connected with the companies.

GM said in its February plan it would cut 47,000 jobs worldwide by the end of the year. Presumably those cuts will come sooner.

Henderson said GM also must slash its staggering liabilities - not just the $49 billion in bond debt and secured loans, but also pension obligations and retiree health care costs.

"We need to basically address all of our level of indebtedness, because in fact, what they want is a healthy balance sheet, and that healthy balance sheet needs to address each of these constituencies," he said.

Henderson wouldn't say specifically if pensions or health care would change, but it's likely that GM's 400,000 U.S. retirees and spouses will see benefit cuts, along with its 244,000 active workers.

He said the company probably will close more than the five factories it promised to shutter in its February restructuring plan filed with the government. More buyout and early retirement offers are likely.

If GM doesn't satisfy the government in time, a short bankruptcy would allow the company to wipe out its debt, change contracts and emerge as a healthy business. The government is backing automakers' warranties and has pledged financing for GM.

For Chrysler, however, Obama's auto task force has decided it has no chance to survive alone, and it would be left to get sold off in pieces. There were signs of progress, however, that a partnership could be arranged.

Fiat CEO Sergio Marchionne flew to Detroit late Monday for talks, and the Italian automaker agreed to reduce its stake in Chrysler from 35 percent to 20 percent in exchange for providing small-car technology, according to a person briefed on the negotiations who was not authorized to speak publicly. Under the new terms, Fiat's share would increase in 5 percent increments every time certain milestones are met, the person said.

At GM, Henderson said the 60 days should be enough time to accomplish its work, but bankruptcy could come before then if GM management and the government determine it won't be able to meet the deadline.

"If it's quite clear that we're not able to accomplish what we need to do in terms of operational restructuring, reduction of debt on the balance sheet and what we need to do to accomplish these broad parameters of having a viable business, this will be a management judgment," Henderson said.

Besides slashing costs, GM must start selling more cars, and the company announced Tuesday its own version of a plan that will make car payments for customers who lose their jobs through no fault of their own. It's called "Total Confidence," and its designed to pull in timid buyers who fear the economy will claim their employment.

The company, Henderson said, counted on revenue for too long from trucks and sport utility vehicles. Now, every vehicle has to turn a profit. That means unprofitable cars and trucks could get the ax, and soon.

"The view is everything's got to pay rent in our product portfolio," he said.

GM also has to jettison unprofitable brands, including iconic Hummer. A decision on closing or selling was supposed to be revealed Tuesday, but GM is still talking with potential buyers. Henderson said an announcement will come within weeks.

GM is alive today only because of $13.4 billion in government loans, and Henderson wouldn't reveal how much more money the century-old company will need to get through the 60 days. The Treasury Department has not told the company how much money it will get to sustain itself, but Henderson said he doesn't expect a dollar more than necessary.

"We submit reports to them weekly in terms of our cash, both in the U.S. and on a global basis," he said. "They know exactly where we are and exactly what we are doing."

Henderson, officially named CEO by the GM board on Sunday, said he isn't worried that the government will fire him like it did his predecessor, longtime CEO Rick Wagoner.

"They've asked me to do the job. I'm not going to really worry about how long that's going to be," he said. "I figure if we get our job done, which is where I'm going to focus my attention, it's going to be OK. And if they want to replace me they can do it."

---

AP Business Writer Colleen Barry in Milan, Italy, contributed to this report.

© 2009 The

GM's Former Boss can expect $23 million in Company Pension and other Benefits

Former Boss can expect $23 Million in Company Pension, and Other Benefits

Former General Motors Corp. Chairman and Chief Executive Rick Wagoner won't get a serverance payment from the automaker, but he'll still get a pension and other benefits worth an estimated $23 million. In nearly 32 years with the company, Wagoner accrued pension benefits that the company valued at $22.1 million at the end of the year.

The actual amount Wagoner will recieve could vary because it will be paid in installments over the rest of his life.

Wagoner, 56, also is entitled to $366,602 in unvested stock awards and $534,627 in deferred compensation as of Dec. 31, according to General Motors' annual report. "From the perspective of the average person, most of these payouts are going to seem like alot of money," said Alexander Cwirko-Godycki, research manager at Equilar Inc., an information services firm that specializes in researching executive compensation. "

But from the perspective of executive pensions, there have been other cases where ther's been a lot more moneyinvolved."

Wagoner also gets to keep about 3 million stock options, which allow him to buy GM shares at prices ranging from about $20 to $76. With GM 's stock price now less than $3 per share , however, the options have little value unless the stock price reaches those levels before the options expire.

by the Associated Press

American Airlines Add Access to its Fleet

Americn Airlines plans to expand Internet access to about half its fleet of aircraft over the next two years as it attempts to raise revenue and improve customer sevice. The company said Tuesday it will istall flyng Wi-Fi hot spots on about 300 planes used in the continental U.S. and gharge up to $12.95 for browsing the Web, sending e-mail or connecting with corporate VPN sites.

Financially driven, American has been testing in-flight Internet service for several months on 15 planes. The Airline declined to give figures on usage during thetest, but an American technology executive called the response postive. " American Airlines is a very financially driven airline," the executive, Doug Backelin, said. " We are especially careful in how we're spending , but this is a good strategic investment, something our customers wil value."

Gogo service, AMR Corp.'s American is one of several U.S. carriers getting into Internet service. Delta Air Lines Inc., the worlds largest airline operator, plans a quicker rollout, from about 80 planes currently to more than 300 late this year and more than 500 by the end of 2010.

Both airlines will use the Gogo service from Aircell.

American will add access to many of its McDonnell Douglas MD- 80 series aircraft beginning this year and on new Boeing 737-800 jets as it recives them. Aircell sets the prices and shares revenue with the airline, although neither company would discuss their financial arrangement.

What will it cost, Prices will range from $5.95 for redeye flights to $7.95 for using a handheld device, $9.95 for using a laptop computer on a flight up to three hours and $12.95 for using a laptop on a longer flight, Aircell plans to add other prices for day passes and perhaps monthly subscription rates for frequent fliers. Travelers can sign up om th ground and connect once the plane reaches 10,000 feet attitude. They'll use their browser to connect to Aircell's Gogo portal site.

In theory, if enough passengers are on line at the same time the speed of the service would degrade. Aircell Chief Executive Jack Blumenstein said that mass hasn't been reached on any trial flights. Each plane will be outfitted with three overlapping Wi-Fi signals, he said.

by the Associated Press

Microsoft settles Dispute

Microsoft Corp , the worlds largest software maker , Monday said it settled a patent dispute over car navigation technology with Tom Tom NV for an undisclosed amount.

Under the terms of five-year settlement, Microsoft said Tom Tom will pay the software maker for use of eight patents.

Microsoft will get coverage for four Tom Tom patents with out paying anything to the Netherlands -based company.

from wire reports

Netflix new Prices for Blu-ray's

San Fransico online DVD rental leader Netflix Inc. is raising its prices for Blu-ray discs in a change that will triple or quadruple the high-defintion surcharge on Netflix's most popular subscription plans.

The new rates announced Monday are being driven by the growing appetite for the Blu-ray format among Netflix's more than 10 million subscribers. About 1 million of the subscribers are requsting Blu-ray discs instead of standard DVD's , and Blu-ray discs cost about 30 % more.

That means Netflix's profit margains are being squeezd as it expands its high-definition inventory. The Los Gatos, Calif,-based company had been mposing a $1 monthly subcharge for Blu-ray rentals since September, regardless of how much the basic subscription plan costs. Effective April 27, Netflix will adopt a sliding scale that will slap higher Blu-ray fees on plans that enable customers to check out mutiple DVDS at a time.

Renters who pay $14 per month for Netflix's two -DVD package will have to fork over another $3 if they want Blu-ray discs.

Under another popular plan that costs $17 per moneth for three DVD's, customers who prefer Blu-ray discs will have to pay an additional $4.

Subscribers who have more expensive rental plans will pay even more for the Blu-ray luxury.1,300 Blu-ray titles all monthly fees will remain the same for customers who exclusively rent standard DVDs.

Netflix is trying to make it easy for people to avoid the new subcharges by disabing the Blu-ray preference in their rental accounts. netflix's Blu-ray selection spans about 1,300 titles, a paltry number compared with the more than 100,000 movies and TV shows in its library of standard DVDs.

The higher Blu-ray fees come at a time when Netflix's subscriber growth has be accelerating , partly because more households have been gravitating toward relatively cheap forms of home entertainment to save money.

by the Associated press

Bank Linked to Ponzi Scheme

May not be the exact bank

Regulators in St Vincent and the Grenadines have taken control of an island bank that U.S. authorites linked to an alleged $68 million Ponzi scheme, the prime minister said Friday. Ralph Gonsalves said in an interview with the Associated Press in Millennium Bank in the eastern Caribbean island chain has just $4 millionin assets and equity.

It is this year's second prominent fraud allegation involving a Caribbean- based offshore bank. Last month, authorites accused Texas billionaire R. Allen Stanford of defrauding investors of some $8 billion througha bank in Antigua, Gonsalves said he had tried to kick millennium Bank out of the country for mismanaging assets.

from Wire Reports

Banks lose $ 9.2 Billion in Derivaties Trading

Commercial banks lost $ 9.20 billion trading derivatives during the fourth quarter as the credit crisis intensified, according to a report released Friday by the office of the Comptroller of the Currency. Losses mounted as commerical banks had to take additional write downs on the value of investments they held, offsetting gains from actual trades.

The collapse of Lehman Brothers Holdings Inc. and the near failure of American International Group Inc. in September touched off one of the worst parts of the credit crisis, which carried over onto the final three months of the year.

Credit markets froze up, further pressuring the value of many types of investments.Derivatives contracts include interest rate and foreign exchange contracts as well as credit default swaps- a product that is essentially a bet against the performance of other types of investments. Credit default swaps have been at the heart of the credit crisis and a main reason for problems at Lehman and AIG.

The total value of derivatives at commerical banks jumped 14% to $200.4 trillion as financial firms changed their operating status to commerical banks after the collapse of Lehman in an effort to stay in business.

Among those changing their status were invstment banking giants Goldman Sachs Group Inc. and Morgan Stanley.

by the Associated Press .

Trustee sells of Part of Madoff's Business

A trustee overseeing the liquidation of disgraced finanier Bernard Madoff's assets has sold a trading operation within his firm that was considered legitimate . A trustee spokesman conifired the sale of the market-making division managed by Madoff's brother and two sons .

Details about the buyer and price of the the purschase were not immediately available .

Liquidating assets to cover claims , the court -appoineted trustee has been liquidating Madoff's business assets -including works of art in his Manhattan office , to cover claims brought by victims of his massive Ponzi scheme .

The 70year old Madoff pleaded guilty earlier this month to fraud and other cgarges .

Madoff told a judge that unlike his secretive investment advisory business the trading was " legitimate in all respects " .

Lawsuit against AIG , Demands Executives Return Bonues , Perks

A lawsuit filed on behalf of shareholders of AIG , is demanding company executives return millions of dollars in bonuses , dividends and other perks .

The lawsuit , which seeks class-action status , seeks unspecified damages , as well as the removal of AIG's top brass . It claims shareholders have lost $200 billion because of AIG's gross mismanagement and corporate waste over the past 8 and half years .

Freedom Watch , an organization that advocates for ethics in government , filed the lawsuit Thursday in U.S. District Court in Los Angeles .

Among the defendants named in the lawsuit are former Cheif Executives Maurice Greenberge , Martin Sullivan , and Robert Willumstad , as well as current CEO Edward Liddy .

An AIG spokwsman said Friday the company had no comment . The defendants " have sseriously undermined and damaged AIG's finacial health and valuable past reputation by systematically causing and/or permitting the company to engage in a litany of highly risky , detrimental and reckless business dealings " the lawsuit states .

The company also gave misleading and false assessments when it reported earnings in 2006 and 2007 , according to the lawsuit .

Continuing to play a dividend and even raising it at one point in thr mid 2007 shows the defendents were either tryng to misrepresent the financial stability of the company or derelict in their management and oversight , the lawsuit states .

Under the Skin ,

The filing follows the recent revelation that AIG received that AIG employees got 165 million in bonuses after AIG received 182.5 billion in government aid .

The bonuses were given to employees of the finnacial products divinacial products divison , aglobal unit that issued derivatives called credit default swaps, which drove AIG almost to collapse last year .

The government intervened to privide support for AIG because of fears that a collapse of New York Based company would trigger hundreds of billions of dollars in losses at financial institutions world wide , futher crippling the already battered credit markets.

Larry Klayman , chairman and general counsel of Freedom Watch , said the problems at AIG have " gotten under the skin of the American People " .

" A lot of information has come to light " he said . " It's an issue the American People want dealt with right now " .

Obama , and bankers meet on Financial recovery

President Obama on Friday urged CEO's of some of the nations biggest banks to deal with bad assets that have made it difficult for them to lend money to businesses ans cumsumers .

Obama, and the bank executives also discussed the administration's plan to stem the rise in home foreclosures , its proposal for tighter regulation of the finanical industry , executive compensation and the financial bailout progam , White House press secretary Robert Gibbs said .

Gibbs said Obama generally was pleased about the meeting that lasted more than hour . " The President emphasized that Wall Street needs Main Street and Main Street needs Wall Street " Gibbs told reporters .

He said the president stressed " THAT HE HAD NO AGENDA BEYOND WORKING TO GET A SOLUTION , THE RIGHT SOLUTION FOR FINANICAL SYSTEM AND TO GET IT STABILIZED AND WORKING AGAIN FOR THE AMERICAN PEOPLE " .

Bankers pledged to work to restore the economy's health .

" We want to see the American recovery " said Robert Kelly , of Bank of New York Mellon Corp .

Obama , invited cheif executivees from the largest 15 banks to the White House to discuss the economy and other issues .

Jamie Dimon of JP Morgan Chase & Co , vikram Pandit of Citigroup Inc , Ken Lewis of Bank of america Corp , John Stumpf of Wells Fargo & Co , John Koskinen of Freddie Mac and Kenneth Chenault of American Express Co , were among those who attened .

Bankers called the administration's regulatory propsal an "encouraging first step " but said they wanted to see more detail .

by the associated press

Wal-Mart Eliminating 650 Jobs

Wal-Mart said it is closing a central Ohio optical lab to reduce cost , eliminating 650 jobs .

The retailer said friday " March 27 2009 " that work from the facility near Columbus will be done at th optical labs in Crawfordsville , Ind, Fayettevillie Arkansas and Dallas .

The lab processes eyewear orders from Vision Center in Wal-Mart stores .

Wal-Mart said it will continue to operate an optical merchandise distribution center in Lockbourne . The company said the affected workers will receive paychecks and benefits for the next two months and be eligible for jobs at other Wal-Mart locations .

from the wire

Wal-Mart handes out Bonues

It comes in like a natural disaster , over coming every thing in it's path .

Yes , Wal-Mart .

With record breaking sales , and a choke hold on the consumers wants and needs . Wal-Mart makes Billions .

And Wal-Mart is giving some of the profit to the staff .

With about 2 billion dollars to it's hourly employees through financial incentives, including $934 million in bonuses .

New CEO Mike Duke said " Wal-Mart now needs to Accelerate and Broaden all of our efforts ".

Consumers go to Wal-Mart , to save their hard enearned dollar . Wal-Mart is doing what a company can do by keep the prices low , from Contact Lenses to HDTV's .

And from their low prices their stock is and has been holding strong . For its ficcal year Wal-Marts sales rose 7.2% . Yes , their stock floats between 49 dollars to 51 dollars . Yet if you look into their competition is doing far less business and their stocks show the effect .

Aslong the business is doing well , the Wal-Mart staff should awarded for their hard work , for keeping Wal-Mart the number one retailer .

Oil Prices heading upward again

Oil Prices headinng upward again .

These last few weeks the prices of oil , has been slowly higher .

From the dollar being weakened , OPEC has slowed down production . Which in return helped push the price of Oil , over 50 dollars .

And with Federal Reserve's sendind Billions to boost , US savings bonds . That might shoot the price of Oil , back to 100 dollars per barrel .

AT&T Warning

AT&T Inc , the Lagest Internet service provider , will start sending warnings to its scribers when music labels and movie studios allege that they are trafficing in pirated material , an executive said .
The phone company thus joins other major ISP's that either go beyond legal requirements or interpret their duties under the law to mean that they have to forward such notices .
Cox Communications ,Comcast Corp and Verizon Communications INC , already forward such notices , but the approaches differ , and legal situation is muddled.
from the wire .

Now , that these companys are going after pirated material . Our internet should be better and safer . For the cusumers .

However , if AT&T and the big companys , have looked into why pirated material , is out their . Then AT&T and the other companys could work with the government , to handle the real problem.

Best Buy Sales up by 10 pecent

Best Buy sales up by 10 pecent .

Consumers snapped up surpising numbers of the flat-screen televisions,labtops, digital cameras , and of course cell phones . Durning the forth quarter , helping Best Buy Co , boost sales by 10 % , the company reported last Thursday . The Quaters sales were strongest in February .

From the Wire.

The nation may be in ruff times , with our moneny . Yet , stores such as Best Buy and Wal-Mart are holding off the Bear . With increasing their sales .

FED Approves $900 Million Loan to AIG Aircraft

FED Approves $900 Million Loan to AIG Aircraft Leasing Subsidiary, The New York Federal Reserve has signed off an American International Group Inc.'s latest cash infusion for its aircraft lesing unit, a lifeline aimed at keeping it in business until it can be sold.
International Lease Finance Corp., one of the world's largest buyers of airlines, had warned that a failure to come up with new loans from AIG or someone could threaten its survival. AIG had already loaned $800 million to the unit to cover its March spending. Thursday, Chief Financial Officer Alan Lund told the Associated Press that another $900 million AIG loan for April was approved late Wednesday by the New York Federal Reserve.
The money will be recieved Monday, Lund said IFC has $600 million in debt that will mature two days lateer. ILFC said in filing that AIG will continue to offer such loans until March 2010 or until the unit is sold, which ever comes first. ILFC leases its 95 commerical jets- one of the world's largest fleets to airlines.
by The Associated Press
Posted by Mike D Lunsford at 10:18 PM 0 comments

Finance Rule Proposals Raise Viability Questions

Tough as they seem, wull the Obama administration's strict new Wall Street really work? The adminstration's aggresive plan for strict scrunity of hedge funds and other freewheeling investors, part of the biggst expansion of financial restraints siince the Great Depression, is drawing instant opposition from Republician lawmakers and the rules' targets. And skeptics ar questioning whether they would be effective anyway.

Wall Street wizards have proved adept at designing complex financial products to sidestep existing regulations. And Vincent Reinnhart, former director of monetary affairs at the Federal Reserve, says, "You're going to see firms try to figure out how to be under the radar."
For example, private equity investors might try to chop large hedge funds into funds small enogh to operate unregulated, Reinhart said.

Treasury Secretary Timothy Geithner said the nation's economic crisis demands bold action. " We need much stronger standards for openness, transparency and plain common sense language throughtout the financial system."
He told the House Financial Services Commitee.
Republicans wondered whether the overhaul would give federal regulators too much power.

by the associated press

Congress and Senate Taxing AIG

The House Financial Services commitee on Thursday adopted a milder alternative to a bill passed last week that would have taxed away 90 % of employee onuses from companies getting federal bailout money. The new legislation would let bailed-out companies pay bonuses as long as the government determines the compensation is not "unreasonable or excessive". Just what is unreasonable or excessive would be determined by financial regulators and the Treasury Department

The Senate, meanwhile, has put on hold a bill that would tax away about 70 % of the employee bonuses at AIG and the other companies getting more thatn $100 million in bailout money.

by the associated press

Two of AIG Managers in Europe Resign Amid Retention Bonus Dispute

Two of the AIG's top managers in Paris , have resigned , just days after agreeing to return the controversial retentiob bonuses . The news of more disension at AIG comes a day after Jake DeSantis, an executive in insurer's financial products division, publicly resigned in an Op-Ed column in the New York Times.

DeSantis said he plans to donate his bonus-742,000 after taxes- to charity. AIG said Mauro Gabriel, president and chief executive of Paris-based Banque AIG, and Jim Shephard, deputy chief executive, resigned from their roles March 20. The men "resigned from their roles given shared concerns regarding their ability to conduct business in the current hostile encironment toward Banque AIG and AIG Financial Product employees generally," AIG spokeswoman Christina Pretto said in an email to The Associated Press. AIG said both men have agreed to stay for a transition period, although for how long was not immediately known.

Status unchanged, Pretto's email came in response to a Wall Street Journal story that saud the resignations of the Paris employees could spark defaults on 234 billion of derivative transactions unless replacemennts for the two executives are found to the Wall Street Journal. Giving their commentment we believe the status of the Banque AIG drivative books will remain ungaged and good standing Pretto said.

According to the Journal report, if AIG fails to find replacements for Gabriel and Shephard acceptable to French regulators, the regulators can appoint their own disignee to manage the blank. Such an outcome could trigger defaults under the blank's derivative contracts since it would represent a chage in control.

A New Threat, A default could set off a chain reaction costing financial firms, including European banks that did busiess with AIG, billions of dollars- similar to what the U.S. govrnment was trying to prevent when bailing out the giant insurer. New York- based AIG has been heavily criticized by government officials and the public after it awarded $165 million in bonuses earlier this month.

The office of New York Attorney General Andrew Cuomo has also been investigating the retention bonuses, or payments designed to keep valued employees from quitting. The bonuses were given to employees of the financial products division, a global unit that issued derivatives called credit default swaps, which drove AIG almost to collapse last year.

by the associated press

Google fired 200 workers

Google will layoff 200 workers .

Even Google , is being hurt by this economy. The job cuts was announced on Thursday. Which makes the second time this year, Google had to let go employees. The first time it was 100 employees of recruiters.

This time the layoffs are in sales and marketing division. However, this is fewer than 1% of Googles 20,200 employees.

Even though that stocks are high for the search engine giant, their still feeling this economy in a comatose state. Yet their not as bad as Yahoo.

The Poor being accounted for .

The poor being accounted for ?

The economy is in a great recession . And hardship across the nation , for years a head . The President and Congress , cannot get a real handle on the problem .

The poverty rate is increaseing , over the last 40years . People losing their jobs , their homes . How can congress keep track of the poverty rate ? If the people drop of the grid , and their can not be a true way to account for the homeless and the Americans , that our help the most .

Their has to be away , to help our fellow Americans . So I hope that our Presidents , and his stimulus package . Does not forget the homeless Americans .

The World in Recession . What now Obama ?

The world in Recession . What now Obama ?

The recession in American , has now infected the world . If European Union falls it is all America's fault . We caused the sky to fall , with our over spending outside our means . Bought homes that we could not pay for . And countless other economic sins .

Asia's leaders hope that America's 800 billion plus stimulus package will create the 3.7 million jobs Obama is trying create . All around the world people are pulling for Obama , and his stimulus package . The new President has a A plus team built around him . Starting with Tim Geither ,Larry Summers, Paul Volcker, and Christina Romer . This A Team , has along hard job a head of them . For the next year will give us the American people , and people all around the world a assessment of how long this turn around will take , to work .

Their was no hesitanting to appoint his team . Just makes you think , can Obama's plan work ?

Now , I do not want o get in to , Obama's other cabinet members . That is another problem for our new President .

I want Obama's , plan to work . No matter what is other ideas maybe different from mine . I am supporting my President , to get our country back on the right track . For America and for the rest of the world .

Subpoenas sent to AIG ?

Subpoenas sent to AIG ?

New York state's top legal officer will issue subpoenas Thursday to American International Group Inc over credit default swaps (CDS) contracts, a source familiar with the matter said.

Andrew Cuomo's office has been pressing AIG , over $165 million paid in retention bonuses to executives . After their 180 billion dollar bailout from us the tax payers .

" The Wall Street Journal reported on its website that Cuomo is subpoenaing the information as part of an effort to assess AIG's claims the firm needed the expertise of employees to unwind certain contracts."

Now , the media has been reporting of the disaproval over the bonuses to the executives . AIG could have stayed out of these hateful headings from the media . And the angry emails from the tax payers . If AIG would have not handed out the 165 million in bonues to their executives .

Well , it is a mess now . For AIG sake I hope they hand over all the 165 million to the government .

Numbers could the Key , for Investing

Numbers could be the key , for Investing .

AIG , was going down customers all around the world , such as Japan . Did everything they could to pull their money out of AIG .

Should have they did these ?

AIG , did make poor investments , with their capiotal . However , AIG did have sound subsidiaries . Within policies to pay their obligations .

AIG's life insurance policy holders , are safe . Or atleast they should be .

Says Peter Gallanis , the president of National Organizations of Life and Health INS .

Only 100 life INS Companies , has went out of business in the last 40 years . After bankruptcy , state regulators move policies over , to another INS Company . With little to no changes in the policy .

Backing Life Insurers guaranty associations , which benefit limits vary by the state . For the most part are cap off at 300,000 dollors . or withdraw about 100,000 dollors . The investment pools together with annuity holders , and not creditors . Not to say the insurer . Their is power in numbers . The amount of anuityholders , in a company such as AIG .

However , before investing in a life insurance . Do research make sure they have a strong spreed sheet . To check out more information on Insurers .

Blue Chips

Wallstreet Blue Chippers , AIG and GM , offered growth with your investments .

However , that was yesterday .

Behold , a brand new day . These Companies , are the fresh new Blue Chips . which are in the market today . Nike , Wal-Mart , Famliy Dollor , Johnson and Johnson , Chevron , and their are others .

All these Companies increased sales , and their growing . It looks like these Companies are a nice choice to move your hard earned money to .

The Bear on the Street

Some funds out run the bear , on the street . Even in these ruff days .

Mutual funds that hold a history , that does well in the bear market .

Heartland Value Plus , 8.1% year to date . Last year 1.0% , ten year annualized 11.4% .

Northern Small cap Value -2.7% Last year -11.% ten year 10.2 .

T Rowe Price Small Cap Value -4.4 year to date , last year - 12.3 , ten year annualized 10.2 % .

Columbia Small Cap Value I A - 5.8 % , last year - 12.9 , ten year annualized 11.2 .

Stratton Small Cap - 5.8 , last year - 12.9 , annualized 1.0 % .

These funds all out do , the S&P 500 over , the last decade . And keep the trend going .

The key may be the small cap stocks . Which they all have incommon . A small cap market may not always , beat the bear . But it has out ran the bear for ten years . Which makes them a nice choice to invest in .

For the market and Wallstreet , to make a come back . The investors needs to think real hard , before they move forward .

Wallstreet lost a step

Wallstreet lost a step . The Dow Jones industrial average shed 115 points, or 1.5 percent Tuesday. But it also held on to 382 of the 498 points it racked up a day earlier .

Now , The Dow was up more than 1,200 points after hitting nearly 12-year lows on March 9, and there was little in a way of positive economic or corporate data Tuesday to lift stocks .

Later this week, some big economic reports are scheduled to come out: durable goods for February, a revised fourth-quarter gross domestic product number, and personal income and spending for February .

This is good news for investors , and for the 401k's of the American people . I just hope the Bull can out run the Bear .

David Stevens named assistant Secretary at the Department of Housing

The White House on Monday named David Stevens as assistant secretary at the Department of Housing and Urban Development .

Now , Stevens worked at World Savings bank and Wells Fargo Home Mortgage.

And at Freddie Mac , as a senior vice president in charge of affordable lending, sales and marketing .

Did Obama , make the right choice . I hope so . The economy , crashed with Homes and affordable lendinng . This could be the right move to bring the economy back .

AIG , will return some of the 165 Million Bonuses

AIG , will return some of the 165 Million in Bonuses .

The total will be about 30 million . From about 15 of the AIG employees . Now , I will say that is the right and correct thing to do . However , they are 135 million short !!!!!!

To give back to the American Public .

For paying for their bailout .

AIG Cheif Executive Eward Libby, told Congress last week that a few of the employees will give their money back . Well , I guess they do have some shame after all .

AIG , was handed 170 billion , to save their Company .

And then they in return thought that they needed their bonuses . What was Libby thinking ?

Edward Libby , is lucky that Congress did not ask him to step down from AIG .

Now , if the rest of the AIG execs , have any brains at all , they would turn down the bonuses . And send it to Congress , with a note saying am sorry . I had a Brain freeze , and did not know what we was doing .

Well , we own the Company now , and I think we should be like Donald Trump and say your FIRED !!!!!!! If they keep the rest bonuses money .

AIG , has bigger problems , if they do not send the money back . Obama and Congress , is working on a Tax plan , to get the 165 million .

I do not think that , the IRS and Taxes . Should be used as a weapon .

AIG , Edward Libby , just give the money back . Save yourself . And your company . Fix AIG , and repay Congress . So the American people don't have to watch this play out in court .