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New National Auto Standards Good for Montgomery County

Friday, April 2nd, 2010

Governor Rendell: Obama Administration’s New National Auto Standards Are Good for Consumers, Economy, Environment

New Rules Will Save PA’s Consumers $14 Billion in Fuel Costs, Reduce Greenhouse Gas Emissions by 57 Million Metric Tons over Next Decade

HARRISBURG — Governor Edward G. Rendell today praised President Barack Obama and his administration for announcing bold steps that will greatly reduce America’s dependence on foreign oil, save motorists thousands of dollars, and help clean the air of climate-changing greenhouse gases.

In a joint announcement today, the U.S. Department of Transportation and the U.S. Environmental Protection Agency established the nation’s first national standard for greenhouse gas emissions and rules that will greatly increase the fuel economy of passenger cars and light-duty trucks.

“Today’s news from the Obama administration is great news for Pennsylvania and the entire nation, because cleaner cars are a big win for consumers, the environment and our national security,” Governor Rendell said. “With access to more fuel-efficient vehicles, consumers will have to spend less time and money at the gas pump, which means fewer dollars going to foreign, oil-rich nations that may be hostile to our interests.

“The less fuel we burn, the cleaner our air will be,” Governor Rendell said. “That will make our people and our planet much healthier for the long term.”

According to the federal government, the new rules will reduce carbon dioxide emissions about 960 million metric tons and conserve about 1.8 billion barrels of oil—or the amount the U.S. now imports every six months from foreign sources—over the life of the vehicles that are subject to the requirements. Consumers who purchase a 2016 model year vehicle—the target year for attaining the new fuel economy standards—will save $3,000 over the life of that automobile by using less fuel.

According to the state Department of Environmental Protection, the new standards will cut Pennsylvania’s vehicle carbon dioxide emissions by 57 million metric tons and save the state’s motorists an estimated $14 billion in fuel costs over the next 10 years.

Transportation is responsible for more than one-quarter of Pennsylvania’s greenhouse gas emissions, so enactment of the new emissions standards will help the state meet its greenhouse gas reduction goals.

Pennsylvania has been pursuing cleaner standards for new vehicles based on California’s Low Emissions Vehicle Program. The Pennsylvania Clean Vehicles Program was amended in 2006 to require automakers to sell new cars and light-duty trucks in Pennsylvania that are cleaner than would be required by the federal government, starting with model year 2008.

Pennsylvania’s Clean Vehicles Program cuts volatile organic compounds as much as 12 percent and nitrogen oxide emission 9 percent more than the less stringent federal standards, resulting in a 5-11 percent greater reduction of six toxic air pollutants including benzene, a known carcinogen.

By establishing one nationwide standard, the new federal rules announced today also will help ease concerns that tougher standards in Pennsylvania would increase vehicle costs. Nearly all Mid-Atlantic states have already adopted tougher emission standards like those in place in Pennsylvania and California.

For more information, visit www.epa.gov.

Refinery Troubles Along The Delaware River

Saturday, December 26th, 2009

The flailing economy is hurting the refinery business along the Delaware River within a 50 mile radius of Philadelphia, PA. For instance, the Eagle Point Refinery has been owned by Texaco, Coastal Oil, and El Paso Corp. and now Sunoco.

In the fall, Sunoco announced it will stop refining operations and lay-off about 400 employees. Instead, Sunoco will used refined oil shipped in from overseas.

“They pay $7 million a year in taxes,” said Steve Sweeney, Democrat state senator. Sunoco is expected to be granted a relief on its property tax bill. “The local taxpayers are going to have to pick up that $7 million. It’s going to be a blow to this area, boy.”

Job Openings And Labor Turnover

Monday, October 12th, 2009

Job Openings and Labor Turnover Summary

On the last business day of August, the number of job openings in the U.S. was little changed at a series low level of 2.4 million, the U.S. Bureau of Labor Statistics reported today. The hires rate was little changed and remained low at 3.1 percent in August. The total separations rate was little changed and remained low at 3.3 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector by industry and geographic region.

Job Openings
The job openings rate was unchanged in August at a rate of 1.8 percent. The number of job openings has fallen by 2.4 million, or 50 percent, since the most recent peak in June 2007. The job openings rate was little changed in August in all industries and regions.

Over the 12 months ending in August, the job openings rate (not seasonally adjusted) decreased for total nonfarm, total private, government, the majority of industries, and all four regions. The rate was little changed in construction; wholesale trade; real estate and rental and leasing; educational services; and other services.

Hires
The hires level was little changed at 4.0 million in August but has declined by 1.6 million, or 28 percent, since the most recent peak in July 2006. The hires rate was low in August at 3.1 percent and little changed from July. The hires rate was little changed in August in all industries. The hires rate decreased over the month in the West and was little changed in the remaining regions.

Over the 12 months ending in August, the hires rate (not seasonally adjusted) declined for total nonfarm, total private, and government. The hires rate decreased for mining and logging; construction; retail trade; finance and insurance; educational services; and state and local government. The hires rate fell over the past 12 months in the West and was little changed in the remaining regions.

Separations
The total separations, or turnover, rate was little changed in August and remained low at 3.3 percent. The total separations rate (not seasonally adjusted) decreased over the 12 months ending in August for total nonfarm and total private. Total separations includes quits (voluntary separations), layoffs and discharges (involuntary separations), and other separations (including retirements).

The quits rate can serve as a measure of workers’ willingness or ability to change jobs. The rate was little changed in August at 1.3 percent. The quits level was 1.7 million in August, which is 45 percent lower than the most recent peak in December 2006.

Over the 12 months ending in August, the quits rate (not seasonally adjusted) was lower for total nonfarm, total private, government, the majority of industries, and all four regions. The industries for which the quits rate was little changed over the year include transportation, warehousing, and utilities; information; finance and insurance; real estate and rental and leasing; arts, entertainment and recreation; and federal government.

The layoffs and discharges component of total separations is seasonally adjusted at the total nonfarm, total private, and government levels. The layoffs and discharges level for total nonfarm, total private, and government was little changed in August at 2.3 million, 2.2 million, and 135,000 respectively. The corresponding layoffs and discharges rates were 1.8 percent, 2.0 percent, and 0.6 percent. The number of layoffs and discharges in August was 46 percent higher than the recent low point in January 2006.

The layoffs and discharges rate (not seasonally adjusted) was little changed over the 12 months ending in August for total nonfarm and total private and increased for government. The layoffs and discharges rate rose in mining and logging; construction; nondurable goods manufacturing; and state and local government. The layoffs and discharges rate increased in the Midwest and was little changed in the remaining regions.

The other separations series is not seasonally adjusted. In August, there were 321,000 other separations for total nonfarm, 263,000 for total private, and 58,000 for government. Compared to August 2008, the number of other separations was little changed for total nonfarm, total private, and government.

The total separations level is influenced by the relative contribution of its three components—quits, layoffs and discharges, and other separations. The percentage of total separations at the total nonfarm level attributable to the individual components has varied over time. The proportion of separations due to quits declined from 61 percent in January 2007 to a series low of 38 percent in April 2009. It then rose slightly and stood at 41 percent in August 2009. The proportion of layoffs and discharges reached a series high of 55 percent in July 2009 then dropped slightly to 54 percent in August 2009.

Net Change in Employment
Over the 12 months ending in August, hires totaled 50.9 million and separations totaled 56.1 million, yielding a net employment loss of 5.2 million.

World Economic Outlook Update

Wednesday, April 22nd, 2009

by The International Monetary Fund (IMF)

World growth is projected to fall to ½ percent in 2009, its lowest rate since World War II. Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy. A sustained economic recovery will not be possible until the financial sector’s functionality is restored and credit markets are unclogged. For this purpose, new policy initiatives are needed to produce credible loan loss recognition; sort financial companies according to their medium-run viability; and provide public support to viable institutions by injecting capital and carving out bad assets. Monetary and fiscal policies need to become even more supportive of aggregate demand and sustain this stance over the foreseeable future, while developing strategies to ensure long-term fiscal sustainability. Moreover, international cooperation will be critical in designing and implementing these policies.

The State Of Advertising

Saturday, February 28th, 2009

If you search for “NASCAR sponsorship problems” at Google, there are over half-a-million results. NASCAR has seen a huge decline in advertisers. So much so, that entire race teams have been laid-off. It’s not just racing that is being hurt in this economic downturn. Most professional sports, such as the PGA, are feeling the crunch.

Print advertising is also under pressure. Newspapers have been failing at a rapid rate including some of the nations biggest and oldest. (See the Philadelphia Inquirer and Philadelphia Daily News)

Don’t Throw the Baby Out with the Bathwater
Yes, it is important for companies to examine the effectiveness of their marketing. Perhaps sports sponsorships and print advertising are not wise places to place your advertising budget. However, the current economic crisis calls for companies to do a better job of advertising than ever before. During the great depression, President Franklin D. Roosevelt said if he could do it all over again he’d “go into the advertising business in preference to almost any other. The general raising of the standards of modern civilization among all groups of people during the past half century would have been impossible without the spreading of the knowledge of higher standards by means of advertising.”

Internet advertising is one of the best returns on investment. For instance, there is a huge readership for employment opportunities and help wanted advertising. It’s a great time for a company to find the best qualified workers. It’s also a good way for a publisher to reach a wider audience.

Some of the other industries that are discovering the benefits of advertising during this economic downturn include:
Real Estate Foreclosures, Builders and Contractors for Energy Conservation, Doctors, Practitioners, Health & Wellness, Lawyers, Attorneys and Law Offices and Credit Repair Agencies.

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The Ever Shrinking Economy

Friday, February 27th, 2009

Washington, DC — The Commerce Department released its report on the 4th Quarter GDP. Though it was expected to be bad, it came in even worse — down 6.2 percent on an annual rate.

FDIC Changes Charges

Friday, February 27th, 2009

In 2007, there were 3 bank failures. In 2008, there were 25 bank failures. So far in 2009, there have been 13 bank failures.

The Federal Deposit Insurance Corporation expects bank failures will cost the insurance fund $65 billion through 2013.

In response, the FDIC is raising fees on banks, as well as, adding emergency fee to help collect 27 billion dollars this year.

Insured Banks and Thrifts Lost $26.2 Billion in the Fourth Quarter

Friday, February 27th, 2009

from the FDIC

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported a net loss of $26.2 billion in the fourth quarter of 2008, a decline of $27.8 billion from the $575 million that the industry earned in the fourth quarter of 2007 and the first quarterly loss since 1990. Rising loan-loss provisions, losses from trading activities and goodwill write-downs all contributed to the quarterly net loss as banks continue to repair their balance sheets in order to return to profitability in future periods.

More than two-thirds of all insured institutions were profitable in the fourth quarter, but their earnings were outweighed by large losses at a number of big banks. Total deposits increased by $307.9 billion (3.5 percent), the largest percentage increase in 10 years, with deposits in domestic offices registering a $274.1 billion (3.8 percent) increase. And at year-end, nearly 98 percent of all insured institutions, representing almost 99 percent of industry assets, met or exceeded the highest regulatory capital standards.

“Public confidence in the banking system and deposit insurance is demonstrated by the increase in domestic deposits during the fourth quarter,” FDIC Chairman Sheila Bair said. “Clearly, people see an FDIC-insured account as a safe haven for their money in difficult times.”

For all of 2008, insured institutions earned $16.1 billion, a decline of 83.9 percent from 2007 and the lowest annual total since 1990. Twelve FDIC-insured institutions failed during the fourth quarter and one banking organization received assistance. During the year, a total of 25 insured institutions failed. The FDIC’s “Problem List” grew during the quarter from 171 to 252 institutions, the largest number since the middle of 1995. Total assets of problem institutions increased from $115.6 billion to $159 billion.

In its latest release, the FDIC cited deteriorating asset quality as the primary reason for the drop in industry profits. Loan-loss provisions totaled $69.3 billion in the fourth quarter, a 115.7 percent increase from the same quarter in 2007. In addition, the industry reported $15.8 billion in expenses for write-downs of goodwill (which do not affect regulatory capital levels), $9.2 billion in trading losses and $8.1 billion in realized losses on securities and other assets.

The FDIC provided data on industry use of the Temporary Liquidity Guarantee Program (TLGP), which was established in mid-October to address credit market disruptions and improve access to liquidity for insured financial institutions and their holding companies. The TLGP, which is entirely funded by industry fees that totaled $3.4 billion as of year-end, has two components. One provides a 100 percent guarantee of all deposits in noninterest-bearing transaction accounts, such as business payroll accounts, at participating institutions. The other provides a guarantee to newly issued senior unsecured debt at participating institutions. At the end of December, more than half a million deposit accounts received over $680 billion in additional FDIC coverage through the transaction account guarantee, and $224 billion in FDIC-guaranteed debt was outstanding.

“The debt guarantee program has been effective in reducing borrowing spreads and improving access to short- and intermediate-term funding for banking organizations,” Chairman Bair noted. “In recent weeks, banks have been able to issue debt without guarantees and other corporate borrowers have issued debt more frequently and in larger amounts. These are positive signs.”

Financial results for the fourth quarter and full year are contained in the FDIC’s latest Quarterly Banking Profile, which was released today. Among the major findings:

Provisions for loan losses continued to weigh on earnings. Rising levels of charge-offs and noncurrent loans have required insured institutions to step up their efforts to increase their reserves for loan losses. The $69.3 billion in provisions that the industry added to reserves in the fourth quarter represented over half (50.2 percent) of its net operating revenue (net interest income plus total noninterest income), the highest proportion in any quarter in more than 21 years.

The rising trend in troubled loans persisted in the fourth quarter. Insured institutions charged off $37.9 billion of troubled loans, more than twice the $16.3 billion that was charged-off in the fourth quarter of 2007. The annualized net charge-off rate of 1.91 percent equaled the previous quarterly high set in the fourth quarter of 1989. The amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) increased by $44.1 billion (23.7 percent) during the fourth quarter. At the end of 2008, a total of 2.93 percent of all loans and leases were noncurrent, the highest level for the industry since the end of 1992.

The FDIC’s Deposit Insurance Fund reserve ratio fell. A higher level of losses for actual and anticipated failures caused the insurance fund balance to decline during the fourth quarter by $16 billion, to $19 billion (unaudited) at December 31. In addition to having $19 billion available in the fund, $22 billion has been set aside for estimated losses on failures anticipated in 2009. The fund reserve ratio declined from 0.76 percent at September 30 to 0.40 percent at year end. The FDIC Board will meet tomorrow to set deposit insurance assessment rates beginning in the second quarter of 2009 and to consider adopting enhancements to the risk-based premium system.

The complete Quarterly Banking Profile is available at http://www2.fdic.gov/qbp/index.asp on the FDIC Web site.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 8,305 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-27-2009

Bank Failures Increase Worldwide

Monday, February 16th, 2009

by widgette.com

Bank failures continue to escalate over the face of the globe. Four more US banks were closed by regulators in Nebraska, Florida, Illinois and Oregon.

In the UK, Lloyds is already 43.5% government owned after having to seek assistance last fall. Now, they face $14.2 billion loss. At the same time, they still wish to pay multi-million dollar bonuses to employees. It is unlikely the government stakeholders will approve such bonuses. On the other hand, the government may be forced to nationalize the bank.

GlaxoSmithKline Going Opensource? A Good World Citizen?

Monday, February 16th, 2009

by WorldCitizen.net

The head of drug giant Glaxo SmithKline, Andrew Witty, announced the company plans a couple major policy changes. One change will be to slash prices of drugs to developing countries by 75%. With the remaining profits from these countries, they would help develop the healthcare infrastructure.

The other major change will be to open up some of their patents to a “patent pool.” Initially, this would include patents for drugs that treat malaria and cholera. However, to the dismay of many, they do not plan on sharing patents for HIV Aids. Nevertheless, this is an important step for the pharmaceutical industry in making drug improvements more like opensource computer software. When patents are shared with other experts and not treated as industrial secrets, the best scientist in the world can all contribute to improvements.

Spokesmen for GSK are quoted as saying:
“We work like crazy to come up with the next great medicine, knowing that it’s likely to get used an awful lot in developed countries, but we could do something for developing countries.

“Are we working as hard on that? I want to be able to say yes we are, and that’s what this is all about – trying to make sure we are even-handed in terms of our efforts to find solutions not just for developed but for developing countries.”

“Slashing drug prices is good. But without the necessary health infrastructure many won’t be able to access those drugs. Therefore, investment by GSK, along with the knowledge pooling, make this a landmark announcement.

“This is a gutsy move in a commercial world. Witty has demonstrated a willingness to make saving lives a business goal along with making money.”