Stilltitled

a capitalist economy, while immensely dynamic and productive, is not inherently stable
—Richard Posner

As part of the 30-day planning process, firms will need to review their existing management and board in order to assure that the leadership of the firm has sufficient expertise and ability to manage the risks presented by the current economic environment
—Government Source

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Company ……………………………Capital Requirement
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Total …………………………………… $65.5 Billion in additional Capital
Bank of America………………………$34b
Wells Fargo……………………………$15b
GMAC……………………………………$11.5b
Citigroup…………………………………$5b
Morgan Stanley………………………..—none—
Goldman………………………………..—none—
MetLife…………………………………..—none—
JPMorgan Chase………………………—none—
Bank of NY Mellon……………………—none—
American Express……………………—none—
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Company…………………………….Government Capital Injections by Firm
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Bank of America………Targeted Investment Program $20b, 01/16/09
……………………………Capital Purchase Program $10b, 01/09/09*
……………………………Capital Purchase Program $15b, 10/28/08
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Wells Fargo……………Capital Purchase Program $25b, 10/28/08
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GMAC………………….Automotive Industry Financing Program $5b 12/29/08
………………………….GMAC has also received other financial assistance
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Citigroup………………Targeted Investment Program $20b, 12/31/08
………………………….Asset Guarantee Program $5b, 01/16/09
………………………….Capital Purchase Program $25b, 10/28/08
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Morgan Stanley………Capital Purchase Program $10b, 10/28/08
———————————————————————————————————————
Goldman Sachs………Capital Purchase Program $10b, 10/28/08
———————————————————————————————————————

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Company……………….Government Capital Injections by Firm
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MetLife…………………..None
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JPMorgan Chase………Capital Purchase Program $25b, 10/28/08
———————————————————————————————————————
Bank of NY Mellon…….Capital Purchase Program $3b, 10/28/08
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Note: Dollar figures in billions
*This transaction was included in previous Transaction Report with
Merrill Lynch listed as the qualifying institution and a 10/28/2008
transaction date. The purchase of Merrill Lynch by Bank of America
was completed on Jan. 1, 2009 and this transaction under the CPP was
funded on Jan. 9, 2009

We have a hiring freeze on, but even when there’s a hiring freeze, we need to maintain our head count. We have 40,000 people, and you’re going to have some openings.

A challenge we have now is people from other areas are having problems selling their homes. People aren’t quite as mobile nowadays.

—Joe Patrnchak, Cleveland Clinic’s chief human resources officer

You’re facing more competition for every job you apply for, but the reality is there is a lot of hiring going on. You’re never going to find anything unless you apply.

—Andrew M. Sum, director of the Center for Labor Market Studies at Northeastern University

At the moment, those forecasting nearer-term recovery have the recent data on their side. […but…] Wage and salary growth has evaporated, credit is very tight, home prices continue to decline, financial asset values have been decimated and household balance sheets are extremely stressed.
—Joshua Shapiro, chief United States economist with MFR

We’re in the worst recession since World War II. However, the days of this recession are limited.
—Lakshman Achuthan, managing director of the Economic Cycle Research Institute

The system will look more like what preceded the current environment than many people seem to believe. I am far from convinced there was something inherently wrong with the system.
—H. Rodgin Cohen, chairman of law firm Sullivan & Cromwell

Wall Street will be reshaped. People once thought that American brand-name institutions could do no wrong and that if they sold a product, it was a good product, and if they said something was worth a certain value, it was worth a certain value. Now that has changed.
—David Rubenstein, co-Founder, Carlyle Group

Rather than financial or economic fixes, it looks like the Treasury really doesn’t have enough money to address the situation, and therefore is going back to this idea that somehow if we change preferred into common, magically the problem goes away

—Joseph Mason, a banking professor at Louisiana State University in Baton Rouge, former employee at the Treasury’s Office of the Comptroller of the Currency

China’s bulging foreign exchange reserves reflect the lack of private demand for dollars, which was driven by the renminbi’s appreciation. Though this was speculative in nature, it shows the renminbi’s rising credibility and its potential to replace the dollar as the main vehicle of wealth storage for ethnic Chinese.
—Andy Xie: in the FT, former Chief Economist for Asia Pacific at Morgan Stanly

For most newspapers in the United states, we would not buy them at any price. They have the possibility of going to just unending losses.
—Warren Buffett

It’s really a national tragedy. These monopoly daily newspapers have been an important sinew to our civilization, they kept government more honest than they would otherwise be.
—Charlie Munger

:WSJ – Marketbeat

We’re shedding jobs in industries in a significant way, and we’re not going to see those same industries be the source of job creation. We’re going to be living in a world in which we’re going to be feeling that the normal on the unemployment rate is above 6 percent.
—Bruce Kasman, chief economist at JPMorgan Chase & Co

People tend to think that when you come out of a recession you get the labor market you had when you entered it. This time you may get something quite different.
—Lawrence Mishel, president of the Economic Policy Institute in Washington

People losing their jobs now in permanently downsizing industries have to be aware that they’re particularly at risk of pretty large losses [to lifetime wages]
—Till von Wachter, Columbia University, in a briefing to the Fed and the European Central Bank last month