Is GM's Rick Wagoner an example of too Much Government Intervention?

Bizarre things continue to happen with regards to the economy and these unprecedented times. Just yesterday, Rick Wagoner, the Chairman and CEO of General Motors or GM, was asked to step down by the Obama administration. This blatant move by Obama is unheard of, as the government does not usually tend to force business leaders to quit or resign.

When questioned, The White House confirmed Wagoner was leaving at the government's behest after The Associated Press report. His immediate departure, was not backed up by any concrete reasons.

The

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AIG, How about this? I Quit ..... And I am Giving my Bonus to Charity

The following is a letter sent on Tuesday by Jake DeSantis, an executive vice president of the American International Group’s financial products unit, to Edward M. Liddy, the chief executive of A.I.G.

Jake DeSantis, an executive vice president at AIG’s Financial Products division, announced his very public resignation and that he would donate his bonus worth over $742,000 after taxes to charity


DEAR Mr. Liddy,

It is with deep regret that I submit my notice of resignation from A.I.G. Financial Products. I hope you take the time to read...

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401(k) Options when Leaving Your Employer

Survey finds some 401(k) sponsors aren't doing enough to monitor their plans

Unfortunately, Unemployment and Layoffs have been escalating recently. Even industry leaders such as Google, are terminating employees to get costs down and tighten up the purse string.

As a result, many employees are not adequately educated on their options pertaining to their 401(k) or other retirement plan. If you have just been laid off from your job, or are just making a career change, here are your 401(k) options.

Options for your 401k when leaving a company

Right off the bat, there are a few possibilities...

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401(k), IRA Participants Focus of Congress for Unbiased Investment Advice

By DEB RIECHMANN The Associated Press Tuesday, March 24, 2009; 3:56 PM


WASHINGTON -- Lawmakers took a hard look Tuesday at rules adopted in the final days of the Bush administration on how millions of Americans with 401(k) and individual retirement accounts get guidance on investing for retirement.

Members of a congressional panel said they wanted to ensure that retirement account holders have access to unbiased investment advice _ an issue that's all the more important since stock market declines have drained billions from 401(k) accounts, which cover more than half of America's...

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Don't Forget! Federal And State Taxes due on April 15th!

Tax season commeth, and this year, the Internal Revenue Service wants you to be aware of a few changes in the system when getting ready for your state and federal taxes.

Given the continual decline of the U.S. economy, more people than ever are expected to be eligible for the earned income tax credit when looking to pay their federal taxes.

“It’s a credit that’s available to low-to-middle income people who worked some portion of the tax year,” said IRS spokesman Dan Boone. “The credit is worth up to around $4,800. The great...

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2008 Tax Year IRA Contributions

Tax Filing time is here again for the 2008 calender year. As many people are scrambling, I just wanted to make sure that people know that there is a very simple tax deduction that is commonly overlooked.

That deduction is your contribution to your contributory IRA, or Roth IRA.

Regardless of the type of IRA you choose, the Federal government imposes annual contribution limits. The chart below shows the maximum dollar amount individuals are allowed to deposit into their IRA each year. After 2008, the contribution limit will raise in increments of $500 depending upon the level of...

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Is an Obama 401k right for you?

This proposal is in the 2010 Budget and may be a start of a Government take over of the American 401k and Retirement Account system. Obama is giving retirement, IRA, and 401k savers something to monitor closely.... President Barack Obama is calling for establishing automatic workplace pensions and expanding unemployment insurance as part of his spending plan for the U.S. Labor Department next fiscal year. We liken this to an "Obama 401k Plan" The budget “lays the groundwork for future establishment of a system of automatic workplace pensions, to operate alongside Social Security, that is expected...

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Is AIG on Thin Ice Over the 165 million in Bonuses?

American International Group's (AIG) recklessness with bonuses and the resulting outrage could doom the release of future economic rescue funds, Rep. Paul E. Kanjorski said today. As Congress prepared to grill CEO Ed Liddy Wednesday, Kanjorski said AIG's move to award $165 million in bonuses could mark a watershed moment in voter distrust of corporate America and hamstring Washington's efforts to rejuvenate the economy. Kanjorkski, a member of the House Financial Services Committee and chairman of the House capital markets subcommittee, will be one of the questioners of Liddy at today's hearing.

AIG...

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Is GM Going to be Liquidated?

If General Motors Corp. were forced into Chapter 11 bankruptcy protection, the company would end up being liquidated because a long bankruptcy would scare customers away, CEO Rick Wagoner said Tuesday. Speaking at a breakfast in Washington, D.C., Wagoner said restructuring the company out of court would accomplish 99 percent of what could be achieved in bankruptcy, but without the risk of losing customers or the huge expense of Chapter 11. Critics of GM and Chrysler, which have received $17.4 billion in government loans to stay alive and have requested a total of $39 billion, say the...

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What is "The Uptick Rule"?

The uptick rule is a securities trading rule used to regulate short selling in financial markets. The rule limits the timing of short sales. It mandates, subject to certain exceptions, that, when sold, a listed security must either be sold short at a price above the price at which the immediately preceding sale was effected or at the last sale price if it is higher than the last different price.

History of The Uptick Rule

In 1938, the U.S. Securities and Exchange Commission (SEC) adopted the uptick rule, more formally known as rule 10a-1, after conducting an inquiry...

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Wow, an Up Week in the Stock Market?

It just dawned on me that we just had a week of positive gains in the stock market! This is a very strange feeling, and I may be able to open up my 401k and IRA statements when they are mailed out later this month. Or that could still be a bad idea..... People always want to know how to gauge the current market downturn with those that have happened in the past. Here are some statistics and charts that keep many 401k and IRA owners with their heads in the stand. Yet, a powerful example...

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Oh How the Mighty Have fallen

General Motors in bankrupcy talks, AIG bailed out 3 times by the feds, GE trading at $6, Bank of America at $3 and change, and the once mighty Citigroup is now trading below one dollar. Who would have thought that this would be happening 1 1/2 years ago. As I write this, I noticed that the Dow Jones Industrial Average is trading at an appropriate 6666 level. Here are some of the bleak headlines from Reuters:

Citigroup shares tumble below $1

Shares of Citigroup (NYSE:C), once the world's most valuable bank, tumbled below $1 on Thursday, taking its year-to-date...

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Are Index Funds a Good Fit for My Investing Strategy?

You have undoubtedly seen various index funds as a choice for investing in the stock market. Index funds have grown in popularity over the past 20 years. What exactly is an index fund? An index fund is a fund that buys the companies in a particular index. An index is simply a group or “basket” of companies. Indexes have been created that are composed of groups of stocks thought to represent the overall market or certain segments of the market. Indexes also exist for almost every other type of security. One of...

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Latest News and thoughts on the AIG Situation

From The Business Insider, March 2, 2009:

This morning the government officially announced plans to prop up AIG with another $30 billion, deeming the potential systemic risk of a collapse to be too great. Perhaps we should stop calling this a bailout of AIG, which, after all, has seen its stock killed. It's basically worthless. It's the company's counterparties that are getting bailed out each time.

Everytime AIG has reworked its deal, we've been sure that it wouldn't be the last time, and again, it doesn't look like this will be either.

As significantly, the...

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Unemployed or Laid Off? Steps for Getting Benefits

For many Americans, the current recession is their first brush with unemployment. What happens if you land part-time work while collecting benefits? What if your employer challenges your claim? Do you even qualify? Fortunately, the process of filing for unemployment is becoming far more streamlined, requiring little more than a phone call or online application in many states. At the same time, Pres. Obama’s $787 billion stimulus bill just extended the number of weeks Americans can file for unemployment benefits and pumped more money into the system, granting eligible recipients an extra $25 per week. Here’s how...

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