http://www.kentucky.com/783/index.xml News, sports, and entertainment from Kentucky.com en-us Copyright 2008 Kentucky.com Economy 60 Mon, 01 Dec 2008 03:20:51 EST http://blogs.law.harvard.edu/tech/rss McClatchy Interactive's Workbench webmaster@kentucky.com http://www.kentucky.com/783/story/602760.html http://www.kentucky.com/783/story/602760.html Sun, 23 Nov 2008 03:10 EST
WASHINGTON . The economy appears headed toward the deepest recession in modern times, consumer confidence is at record lows and personal wealth is being destroyed daily on Wall Street. Against that backdrop, retailers must persuade weary Americans to pull out their wallets and shop this holiday season.

"What you are seeing is a perfect storm in terms of weakness in core economic indicators, each of which is having a negative effect on the consumer, and because of that it is having a profound effect on the retail industry," said Scott Krugman, a spokesman for the National Retail Federation.

The challenges will be big and small. Almost three-quarters of consumers haven't started holiday shopping yet, waiting for sales. Gift-card spending is projected to fall 5.6 percent as people pull back and shop for bargains.

Consequently, the federation, a trade group in the nation's capital, expects national sales to be slightly off last year's slow pace. Over the past decade, holiday sales have averaged 4.4 percent annual growth, but they're expected to grow this year by a milder 2.2 percent. That's below even last year's sluggish 2.4 percent rate. Still, it's growth, and if it happens, that'll show once again the resiliency of the American consumer. Hard times or not, Christmas is about spending. ]]> http://www.kentucky.com/783/story/602759.html http://www.kentucky.com/783/story/602759.html Sun, 23 Nov 2008 03:10 EST
NEW YORK . Since the Nov. 4 election, investors have been abandoning stocks in a kind of slow-motion crash that experts say underlines just how anxious they are about what is likely to be a long and deep recession.

Even after a late-day rally on Friday, the benchmark Standard . Poor's 500 index has plunged 20 percent since the election. That more than wiped out the index's 18 percent gain in the six trading days ahead of the balloting as optimism grew that Barack Obama would be elected president.

Analysts aren't blaming Obama specifically for the post-election hangover. Rather, they peg it to growing fears that the Bush administration and Congress are fumbling the $700 billion bailout plan and the weakened economy's impact on financial stocks . highlighted by the plunge in shares of Citigroup Inc. to below $4 a share.

"You can almost hear people yelling, 'Get me out at any price,'." said Al Goodman, chief market strategist at Wachovia Securities. "It's the highest level of fear and depression in my 45 years as a student of the market." ]]> http://www.kentucky.com/783/story/600291.html http://www.kentucky.com/783/story/600291.html Fri, 21 Nov 2008 06:13 EST
DES MOINES, Iowa . There was a time when thresholds meant something. The Dow Jones average sinking below 8,000 must mean the bottom is near. The S.P 500 falling 50 percent from its high must signal the end of the freefall.

Economists, money managers and traders who watch the markets closely say you can't assume previous bear market measures mean much. They acknowledge they don't know where the bottom is and anxiety remains high. So does the selling, which continued Thursday.

Wall Street saw intense selling late in the session after hopes faded that lawmakers would quickly assemble an aid package for U.S. automakers, and as the Standard . Poor's 500 index broke through lows established in 2002. That breach of a key technical threshold sent a shudder through the market and touched off further selling.

The S.P 500 index fell 6.7 percent to its lowest close since April 1997. The Dow Jones industrial average, meanwhile, fell 445 points, or 5.6 percent, to its lowest close since March 2003. The decline brings the Dow's two-day drop to 873 points, or 10.6 percent, its worst two-day percentage loss since October 1987. ]]> http://www.kentucky.com/783/story/599045.html http://www.kentucky.com/783/story/599045.html Thu, 20 Nov 2008 02:38 EST
Frugality is making a comeback.

Fearful that economic conditions could get worse and stay that way, Americans are showing an enthusiasm for thriftiness not seen in decades.

This behavioral shift isn't simply about spending less. The New Frugality emphasizes stretching every dollar. It means bypassing the fashion mall for the discount chain store, buying secondhand clothes and furniture, or trading down to store brands.

There's more business for repairmen, and less for salesmen. Consumers are clipping more coupons and swiping their credit cards less. ]]> http://www.kentucky.com/783/story/597579.html http://www.kentucky.com/783/story/597579.html Wed, 19 Nov 2008 10:23 EST
WASHINGTON . The CEOs of the nation's Big Three automakers didn't get much respect when they pulled up at the nation's money pump asking for a $25 billion fill-up.

Senators weren't in much of a mood to talk about it Tuesday, at least not without a heavy dose of sarcasm.

"No one can say that they didn't see this coming, "Banking Committee Chairman Chris Dodd, D-Conn, told the executives sitting in a row before him. The industry was "seeking treatments for wounds that I believe to a large extent were self-inflicted."

And Dodd is actually a supporter of the new lifeline, like most Democrats and President-elect Barack Obama. ]]> http://www.kentucky.com/783/story/596166.html http://www.kentucky.com/783/story/596166.html Tue, 18 Nov 2008 02:39 EST
Associated Press

NEW YORK . The stock market is trying to form a bottom, but the economic landscape keeps changing.

With the Treasury switching its financial bailout plans and Congress fighting over a potential rescue package for automakers, investors are having a tough time figuring out what the future will bring. And that will likely mean more wild swings in the market this week.

"These are tremendous dollops of uncertainty, one after the other," said Quincy Krosby, chief investment strategist for The Hartford. "A market needs confidence that things are going to get better. And right now there is a marked, marked lack of confidence that things are going to get better." ]]> http://www.kentucky.com/783/story/595009.html http://www.kentucky.com/783/story/595009.html Mon, 17 Nov 2008 06:17 EST
WASHINGTON . Led by California with a $28 billion hole in its budget, 41 states are in financial trouble, and many of their leaders are looking to Congress to bail them out.

State officials are hoping to join the ranks of the financial industry and auto manufacturers, who've found a sympathetic ear on Capitol Hill. They've found some key supporters: House Speaker Nancy Pelosi and other top Democrats are promoting aid to states as part of a broad stimulus package that could inject more than $300 billion into the ailing economy.

The idea is getting a strong bipartisan push from governors across the country, with California Republican Gov. Arnold Schwarzenegger and New York Democratic Gov. David Paterson among the chief proponents. Both are blaming Washington for their states' mounting troubles.

Testifying at a recent House of Representatives hearing, Paterson said that New York was "at the epicenter of a national emergency" after federal oversight bodies "utterly failed in their duty" to protect Americans' savings and the U.S. financial system. Speaking Wednesday before a Chamber of Commerce group in Fresno, Calif., Schwarzenegger said that "government is really at fault" and that Washington is obligated to "get us out of this mess." ]]> http://www.kentucky.com/783/story/594067.html http://www.kentucky.com/783/story/594067.html Sun, 16 Nov 2008 02:58 EST
WASHINGTON . World leaders, who gathered here to tackle the ongoing global financial crisis, agreed to a broad range of solutions Saturday but left the details to be worked out until the spring.

The summit of the Group of 20, which represents 19 countries and the European Union, called for a range of new regulations of financial institutions, credit rating agencies and other bodies widely blamed for sparking the gravest global economic crisis in decades.

The summit also demanded that large developing economies such as Brazil's and China's be given more say in the operation of institutions such as the International Monetary Fund that many complain are dominated by the United States and other industrial nations.

Despite the event's hoopla, a joint declaration issued by the meeting's participants Saturday afternoon was heavy on generalities such as the need for more coordinated global action, financial transparency and tighter economic regulations. It gave leaders until the next summit to be held by April to fill in the blanks. ]]> http://www.kentucky.com/783/story/591580.html http://www.kentucky.com/783/story/591580.html Fri, 14 Nov 2008 06:36 EST
FRANKFORT . Animal control workers in some rural Kentucky communities have a larger problem than stray dogs and cats . much larger. Stray horses have been turning up, and animal advocates blame horse owners hurt by the faltering economy.

"People who used to be able to afford their horses now can no longer afford their horses," said Ginny Grulke, executive director of the Kentucky Horse Council. "These are not people who are ruthless or inhumane. In general, it's an economic problem, and they have no options. They don't know what to do with their animals."

Lancaster resident Connie Short said a small black horse showed up on her farm in August. Despite her best efforts, she couldn't find the owner of the hungry stray that she fed for about two months until animal control workers found a foster home.

"Nobody wanted him," Short said. "It was like somebody had dropped off a dog or a cat." ]]> http://www.kentucky.com/783/story/591546.html http://www.kentucky.com/783/story/591546.html Fri, 14 Nov 2008 02:42 EST
LONDON . The world's developed countries, hard hit by the financial crisis, have probably tipped into a recession that will last at least through the first half of 2009, according to new projections issued Thursday.

The Paris-based Organization for Economic Cooperation and Development forecast that economic output would shrink 1.4 percent this quarter for the 30 market democracies that make up its membership . and keep contracting until the middle of next year.

That would mean the developed world has now entered a slump estimated to last at least three quarters; two consecutive quarters is a common definition of recession. For all of 2009, these countries' economies would contract by 0.3 percent.

Additionally, the U.S. economy would fall by 2.8 percent in the last quarter, after a 0.3 percent drop in the third quarter and then shrink by a full 0.9 percent in 2009. Japan's economy would shrink by 0.1 percent next year and the euro area by 0.5 percent. ]]> http://www.kentucky.com/783/story/591524.html http://www.kentucky.com/783/story/591524.html Fri, 14 Nov 2008 02:42 EST
WASHINGTON . The prospects of a government rescue for the nation's foundering auto makers dwindled Thursday as Democratic congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck legislative session next week.

At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. Democratic leaders have been calling for a package that would include help for the auto companies as well as new spending on public works projects, an extension of unemployment benefits, increased food stamps and aid to states for rising Medicaid expenses.

But while Democrats said the stimulus measure would wait until President-elect Barack Obama takes office in January, some industry experts fear that one or more of the Big Three automakers will collapse before then.

Despite hardening opposition at the White House and among Republicans on Capitol Hill, the Democrats said they would press ahead with efforts to provide $25 billion in emergency aid for the automakers. But they said the bill would need to be approved first in the Senate, which some Democrats said was highly unlikely. ]]> http://www.kentucky.com/783/story/591517.html http://www.kentucky.com/783/story/591517.html Fri, 14 Nov 2008 06:11 EST
NEW YORK . President George W. Bush fervently defended U.S.-style free enterprise Thursday as the cure for the world's financial chaos, not the cause. He warned foreign leaders ahead of a weekend summit not to crush global growth with restrictive new rules.

"We must recognize that government intervention is not a cure-all," Bush said from Wall Street, setting his own tone for the two-day meeting that begins Friday in Washington seeking solutions to the economic crisis that has spread around the world.

"Our aim should not be more government," he told the business executives. "It should be smarter government."

The president acknowledged that governments share the blame for the severe economic troubles that have hit banks, homes and whole countries. ]]> http://www.kentucky.com/783/story/590234.html http://www.kentucky.com/783/story/590234.html Thu, 13 Nov 2008 06:21 EST
WASHINGTON . Urgently shifting course, the Bush administration revamped its $700 billion bailout package by jettisoning the idea of purchasing banks' distressed assets . the centerpiece of the original plan . and announcing Wednesday that it will search for new ways to shore up not only banks but credit-card, auto-loan and other huge non-bank businesses.

Democrats, meanwhile, are pressing hard to include billions of dollars in help for faltering automakers . over administration objections.

Unimpressed by any of the overhaul talk, Wall Street plunged lower.

"The facts changed, and the situation worsened," Treasury Secretary Henry Paulson said at a news briefing, explaining the administration's switch from its plan to help financial institutions by buying up troubled assets, primarily securities backed by bad home loans, and instead continue to focus on direct purchases of bank stock. ]]> http://www.kentucky.com/783/story/587819.html http://www.kentucky.com/783/story/587819.html Tue, 11 Nov 2008 02:43 EST
Cumulus Broadcasting laid off seven of the 42 employees at its six Lexington radio stations last week, including two of its three news reporters, as it deals with declining advertising revenues.

The Cumulus cuts included full-time news staffers Joe Gillespie and Kendra Steele. Scott Johnson, who is now news director, was the only reporter spared.

Steele said Cumulus had reduced staffing at its stations in other cities, and the company's Lexington employees feared it would happen here.

"WVLK (the company's Lexington flagship AM station) has always been news-oriented, and we have always kind of prided ourselves in having people live in the studio and live on the street," Steele said. "Obviously, that's going to change now. It's going to have to." ]]> http://www.kentucky.com/783/story/587809.html http://www.kentucky.com/783/story/587809.html Tue, 11 Nov 2008 02:43 EST
Circuit City, the nation's second-biggest electronics retailer, filed for bankruptcy protection Monday, just a week after it announced it would close 20 percent of its stores and lay off more than 7,000 workers.

"Without immediate relief, the company is concerned that it will not receive goods for Black Friday and the upcoming holiday season, which could cause irreparable harm to the company and its stakeholders," Chief Financial Officer Bruce H. Besanko said in the filing.

The company is hoping to exit court protection by early summer 2009, putting it in a position to find a buyer for the chain or operate as a standalone business.

Its shares fell 14 cents, or about 56 percent, to 11 cents Monday before being halted. ]]> http://www.kentucky.com/783/story/587807.html http://www.kentucky.com/783/story/587807.html Tue, 11 Nov 2008 02:43 EST
ATLANTA . In a move that could greatly scale back a possible venture between UPS and Deutsche Post's DHL, the German company said Monday it will significantly reduce its air and ground operations in the U.S. and cut 9,500 jobs within the country.

The DHL-UPS deal was expected to last up to 10 years and infuse Atlanta-based UPS with up to $1 billion in annual revenue, if completed as first proposed in May.

UPS, the world's largest shipping carrier, has said the contract with DHL, which it has been working to finalize, would mostly involve the transport of DHL packages between airports in North America . not the pickup or delivery of DHL packages to customers.

If DHL made significant cuts to its ground operations in the United States, it wouldn't necessarily affect UPS and DHL's reaching a deal since their talks have solely involved air delivery of packages, not ground delivery. But Deutsche Post's announcement went well beyond the elimination of ground products within the United States. Deutsche Post said it will discontinue U.S. domestic-only air and ground products on Jan. 30 to focus entirely on its international offering. ]]> http://www.kentucky.com/783/story/584818.html http://www.kentucky.com/783/story/584818.html Sat, 08 Nov 2008 02:47 EST
DETROIT . The American auto industry is running on fumes.

General Motors, the nation's largest automaker, warned Friday that it might run out of money by the end of the year after piling up billions in third-quarter losses and burning through cash at an alarming rate. Ford sustained heavy losses, too.

The situation is so severe that GM has suspended talks to acquire Chrysler and is appealing to the government for help as the slumping economy drags car sales to their lowest level in a quarter-century.

GM Chairman and CEO Rick Wagoner said the company will "take every action" possible to avoid bankruptcy. "We're convinced that the consequences of bankruptcy would be dire," he said, adding that the company would use every source of potential funding. ]]> http://www.kentucky.com/783/story/583652.html http://www.kentucky.com/783/story/583652.html Fri, 07 Nov 2008 02:54 EST
WASHINGTON . A fresh wave of bad economic news pummeled the stock market Thursday and served as a bleak reminder of the huge task that lies ahead for the next administration. As president-elect, Barack Obama faces the difficult assignment of dealing ever more directly with the economic meltdown, grappling with the worst financial crisis in seven decades but not yet wielding the power to do much about it.

He won't be a participant at President Bush's global summit next week, although the 20 leaders attending are no doubt keenly interested in his views. And he may have to eventually push back against some members of his own party in Congress over details of a new plan to stimulate the economy.

Congress convenes for a lame-duck session on Nov. 17, and Obama is giving all indications that he'll play a direct role rather than keeping his distance until he is sworn in.

"The president-elect has said he wants another stimulus, the president-elect therefore has views on what that stimulus should be, and the Democratic Congress should take its cues from the president-elect," said economist Rob Shapiro, a top Commerce Department official in the Clinton administration who now is on Obama's team of transition advisers. ]]> http://www.kentucky.com/783/story/579687.html http://www.kentucky.com/783/story/579687.html Tue, 04 Nov 2008 01:51 EST
WASHINGTON . The government, raising cash to pay for the array of financial rescue packages, said Monday it plans to borrow $550 billion in the final three months of this year . and that's just a down payment.

Treasury Department officials also projected the government would need to borrow $368 billion more in the first three months of 2009, meaning the next president will confront an ocean of red ink.

The non-partisan Committee for a Responsible Budget estimates that all the government economic and rescue initiatives, starting with the $168 billion in stimulus checks issued earlier this year, total even more . an eye-popping $2.6 trillion.

In addition to the borrowing numbers, Treasury released estimates by major Wall Street bond firms projecting that total borrowing for this budget year, which began Oct. 1, will total $1.4 trillion, nearly double the previous record. ]]> http://www.kentucky.com/783/story/569749.html http://www.kentucky.com/783/story/569749.html Mon, 27 Oct 2008 01:52 EDT
Basic banking rules have changed in recent weeks as regulators have moved to bolster investor confidence in both the financial system and the economy.

The changes include higher limits on deposit insurance and the government purchasing shares in banks including Bank of America Corp. and Citigroup Inc. Together, the steps already have had some effect, bringing in deposits and driving down bank lending rates, said Greg McBride, a senior financial analyst at Bankrate.com, a research firm in Florida.

"This is really hitting at the heart of consumer concerns," he said.

Higher account insurance ]]> http://www.kentucky.com/783/story/563786.html http://www.kentucky.com/783/story/563786.html Wed, 22 Oct 2008 01:52 EDT
WASHINGTON . Lawmakers waded gingerly Tuesday into a complex debate about ways to overhaul the regulatory structure overseeing the U.S. financial system, promising stricter rules governing risky financial products seen as responsible for the current financial crisis.

It could also involve creation of a special committee to draft the upcoming regulatory overhaul, said House Financial Services Committee Chairman Barney Frank, D-Mass.

The question of a special committee was but one topic as the panel kicked off what promises to be a long, complex debate about ways to avoid a repeat of the current financial mess, which has its roots in excesses in the subprime mortgage market and rapidly eroding value of widely held mortgage-backed financial products.

Democrats controlling Congress have expansive but vague plans to extensively strengthen the current regulatory framework. ]]> http://www.kentucky.com/783/story/561554.html http://www.kentucky.com/783/story/561554.html Mon, 20 Oct 2008 01:51 EDT
WASHINGTON . Freddie Mac secretly paid a Republican consulting firm $2 million to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years before the government took control to prevent their collapse.

In the cross hairs of the campaign carried out by DCI of Washington were Republican senators and a regulatory overhaul bill sponsored by Sen. Chuck Hagel, R-Neb. DCI's chief executive is Doug Goodyear, whom John McCain's campaign later hired to manage the GOP convention in September.

Freddie Mac's payments to DCI began shortly after the Senate Banking, Housing and Urban Affairs Committee sent Hagel's bill to the then GOP-run Senate on July 28, 2005. All GOP members of the committee supported it; all Democrats opposed it.

In the midst of DCI's yearlong effort, Hagel and 25 other Republican senators pleaded unsuccessfully with Senate Majority Leader Bill Frist, R-Tenn., to allow a vote. ]]> http://www.kentucky.com/783/story/550045.html http://www.kentucky.com/783/story/550045.html Thu, 09 Oct 2008 01:49 EDT
WASHINGTON . Will U.S. consumers benefit from the interest rate cuts announced Wednesday by the Federal Reserve and several other countries' central banks? For most people, probably not much, at least for a while. But people with strong credit could see lower credit card rates soon, and the move could eventually help point the economy in the right direction.

Here are some questions and answers about the interest rate cuts.

Q: Will the rate cuts help fix the financial crisis?

A: Not in the short term, most economists say. The cuts don't directly address the main problem behind the financial meltdown: the reluctance of banks to lend money. ]]> http://www.kentucky.com/783/story/547567.html http://www.kentucky.com/783/story/547567.html Tue, 07 Oct 2008 05:37 EDT
WASHINGTON . The U.S. financial crisis spread around the world like a wildfire on Monday as stock prices plunged here and abroad amid eroding confidence in the world's banking system.

The Dow Jones industrial average plummeted 800 points before a late rally let it close down "only" 369.88 points, at 9955.50. That's the first time the Dow had closed below 10,000 in almost four years. The Dow first crossed above 10,000 on March 16, 1999.

Monday's drop on all three major U.S. indices to levels first reached a decade ago was a sobering reminder that Wall Street and the retirement plans of ordinary Americans are spiraling downward together. The S.P 500 was off 42.34 points to 1506.89 and the Nasdaq sank 84.43 points to 1862.96.

"This is not the Great Depression. People should not get panicked," said Lyle Gramley, an investment adviser and former Reagan era Federal Reserve governor who has followed markets for more than five decades. ]]> http://www.kentucky.com/783/story/544279.html http://www.kentucky.com/783/story/544279.html Sat, 04 Oct 2008 07:04 EDT
WASHINGTON . Half of the members of Kentucky's congressional delegation voted to approve the largest federal bailout in the nation's history . a measure with a price tag that soared from an estimated $700 billion to nearly $1 trillion after lawmakers from both parties added billions in federally funded pet projects.

In a complete reversal of Monday's vote, Rep. John Yarmuth, D-Louisville, joined Republicans Ron Lewis of Cecilia, and Harold "Hal" Rogers of Somerset in supporting the bill. Reps. Ben Chandler, D-Lexington, Geoff Davis, R-Hebron, and Ed Whitfield, R-Hopkinsville, held firm in their opposition to the proposal, which the White House characterized as critical to shoring up the nation's financial sector.

The measure passed 263 to 171.

Wall Street traders watched anxiously from the floor of the New York Stock Exchange as the votes were tallied and cheered the measure's passage. The Dow edged up after the vote. ]]> http://www.kentucky.com/783/story/544805.html http://www.kentucky.com/783/story/544805.html Sat, 04 Oct 2008 01:50 EDT
FRANKFORT . Finance Secretary Jonathan Miller said Friday that Kentucky is weathering Wall Street's financial woes better than some other state governments.

In California, for example, financial officials warned this week that the nation's frozen credit markets are threatening the state's ability to do short-term borrowing to pay immediate expenses, and that the state could run out of money by the end of October.

"We're not in a California-type situation," Miller said. "We have sufficient liquidity. We have plenty of cash to allow us to pay our bills, to pay state salaries, and to continue to provide government services. There's no immediate crisis on the horizon."

Congress approved an unprecedented government bailout of the battered financial industry on Friday. Miller said he's hopeful the move will ease the credit crisis and boost the market for government bonds. ]]> http://www.kentucky.com/783/story/543811.html http://www.kentucky.com/783/story/543811.html Fri, 03 Oct 2008 06:10 EDT -- MAIN STREET: FEWER CUSTOMERS
-- ON CAMPUS: TOILET PAPER OR PARTY?
-- HOMEOWNERS LOOK FOR WAYS TO CUT BACK



On Thursday, the country waited.



It was the day the U.S. Congress sat divided, one house saying yes, the other saying no, to the largest bailout imaginable of Wall Street and some of the country's once most venerable financial institutions. And the day we all sort of sat around and waited to see what would happen if one side, or the other, ruled the day. ]]> http://www.kentucky.com/783/story/542150.html http://www.kentucky.com/783/story/542150.html Thu, 02 Oct 2008 14:05 EDT
.

try{f_cbload("c8521000h5j2g5b6f9d9e8i5d2c5","http:");}catch(v_e){;}
Click here to load this Caspio Bridge DataPage . ]]> http://www.kentucky.com/783/story/542496.html http://www.kentucky.com/783/story/542496.html Wed, 01 Oct 2008 18:17 EDT http://www.kentucky.com/783/story/541585.html http://www.kentucky.com/783/story/541585.html Wed, 01 Oct 2008 10:49 EDT
Looking for tangible signs of the credit crunch and economic turmoil across Central Kentucky's landscape?

Here are two: noticeably fewer houses being built throughout the region, and more half-completed houses dotting the landscape.

Central Kentucky home builders say the credit crisis . especially banks tightening up on loans for builders and buyers . is hitting them hard.

Not only are fewer houses getting started in Lexington, fewer homes are getting finished as builders run out of money and can't borrow more from the banks, said Dewey Crowe, director of building inspection at the Lexington-Fayette Urban County Government. ]]> http://www.kentucky.com/783/story/541600.html http://www.kentucky.com/783/story/541600.html Wed, 01 Oct 2008 01:53 EDT
Kentucky banks have money and they are making loans, including mortgages and small business loans, bankers say.

The loan process might take longer, involve more paperwork and require a larger down payment, but bankers say borrowers can generally get the money they need.

"In many respects, it's business as usual on the borrowing side" . with one big exception, said Steve Kelly, executive vice president of Central Bank . Trust Co. "The era when you could get into a house with zero down is over."

First-time home buyers might have to make a 20 percent down payment, while those with longer histories of repaying loans on time might get the more traditional 10 percent down payment. ]]> http://www.kentucky.com/783/story/540567.html http://www.kentucky.com/783/story/540567.html Tue, 30 Sep 2008 07:08 EDT
If there is no bailout to rescue investors and mortgage lenders, stock prices and consumer spending will drop, and interest rates and unemployment will rise for the next year or so.

"We are going to be faced with a period in which we have slow or negative growth in the economy," said Ken Troske, director of the Center for Business and Economic Research at the University of Kentucky.

The economy will begin rebounding as overpriced properties are sold and real estate markets recover, Troske said.

David Smyth, senior partner at Family Financial Partners in Lexington, sees mistrust dominating the markets, unless something changes quickly to enable passage of the bailout and restore trust. ]]> http://www.kentucky.com/783/story/536817.html http://www.kentucky.com/783/story/536817.html Fri, 26 Sep 2008 01:51 EDT
Financial advisers around Lexington say their phones are buzzing this week with calls from clients wanting to know what to do with their investments in the continuing national economic turmoil.

Advisors say generally that they're urging clients to move cautiously and take no rash actions with their portfolios, despite daily reports of fluctuating stock prices and $700-billion government bail outs.

"History shows that sometimes the best thing you can do in a situation like this is to practice patience and sit on your hands," said David Smyth, senior partner with Family Financial Partners. "But it's the hardest thing to do."

Hard even for experienced investors like Lexington's Gertrude Gajardo, 76. She was member of an investment club in the 1990s, and now is part of an investment group whose members share information and inspiration. She has seen up and down markets over the years, but nothing quite like what's been happening in the past few weeks. ]]> http://www.kentucky.com/783/story/477209.html http://www.kentucky.com/783/story/477209.html Fri, 01 Aug 2008 08:19 EDT
The American Dream might seem even more out of reach to some Central Kentucky residents hit by the rising costs of food, gas and utilities. But they're finding ways to scrape by in shaky economic times. When gas prices jump, they carpool. When diapers go on sale, they rush to the store.

Lexingtonians . including a couple who share a bedroom with their children to cut costs, a couple looking for jobs after a layoff, a man who was evicted and a woman selling Avon for gas money . share their stories of survival.



Parents, children share bedroom
Jobless: "I even applied to Hustler Hollywood'
Evicted, disabled and uncertain about future
Cutting back: Upper middle class not immune from the problem ]]> http://www.kentucky.com/783/story/415586.html http://www.kentucky.com/783/story/415586.html Tue, 27 May 2008 11:36 EDT
But you're going to have to wait in line.

LexVan leases passenger vans to groups of people who want to share a ride to and from work. The service now has vans running from Lexington to Frankfort and into Lexington from places such as Paris, Berea, Salvisa and Irvine each morning. Some of the vans make stops at several workplaces each day, while others are used by people who work at one particular business.

But all of the service's available vans are leased out, and, as of last week, there were 11 groups of people on a waiting list for vans, said Roger Daman, a senior planner for the Lexington-Fayette Urban County Government who oversees the program.

He said he hasn't seen demand so high in the six years he's been in his job. Most of the many inquiries he's been getting about the service are from people concerned about the rising cost of gasoline, he said.]]> http://www.kentucky.com/783/story/415561.html http://www.kentucky.com/783/story/415561.html Tue, 27 May 2008 11:34 EDT
Call 233-POOL and provide your address, place of work and work schedule, and you'll be matched up with others who live and work near you.

A computer program is used to match people up for carpooling.

Then, said Roger Daman, a senior planner with the Lexington-Fayette Urban County Government, "We send out the information to people who live and work in the same area."

"It's just a free service to match people up, and they can get together and carpool if they choose to. Typically, they split the cost of gas," he said.]]> http://www.kentucky.com/783/story/415552.html http://www.kentucky.com/783/story/415552.html Tue, 27 May 2008 11:26 EDT
Since last fall, the 28-year-old electrical engineer has been riding his bicycle to work in good weather and bad.

"I really got hooked," Dickinson said last week. "It's a ton of fun ... . It's great. You get to exercise and feel good."

He is also saving money on gasoline and helping the environment, but those are just bonuses to Dickinson.

"You look forward to your commute on a bike," he said. "It's great to be outside. You see so much more. You can say 'Hi' to people you pass. It's just a lot of fun."]]> http://www.kentucky.com/783/story/415584.html http://www.kentucky.com/783/story/415584.html Tue, 27 May 2008 11:13 EDT
"Right now we're looking at all the main corridors in Lexington and trying to find locations for park-and-ride lots," said LexTran spokesman Dave Riggins, adding that bus system officials have been talking with representatives of businesses and churches that might have available parking space.

"I think with the gas prices where they are a lot of folks are more interested in parking their car and jumping on a bus and going to work," Riggins said.

LexTran also is expanding service along Southland Drive beginning June 2. The Southland/BCTC Route 42 will service the Regency Road, Bluegrass Community and Technical College, Southland Drive and Rosemont Garden areas.

LexTran officials also are putting together a survey for employers in the Mercer Road-Leestown Road area to see if there is sufficient interest in a jobs bus for that area. Such a service would pick up workers at intersections nearest their homes, take them to work, then drop them off at the intersections after work.]]> http://www.kentucky.com/783/story/420882.html http://www.kentucky.com/783/story/420882.html Fri, 06 Jun 2008 12:09 EDT
In Central Kentucky, most people have to drive, so they have to buy gas. But they don't necessarily have to go to, say, the theater, and Bluegrass-area arts and entertainment presenters worry about what the current economic travails will mean.

.I cannot give a definitive answer,. says Carl Hall, general manager of Rupp Arena. .But any time your discretionary income decreases, it's not good for our business..

Richard St. Peter, artistic director of Actors Guild of Lexington, says, .President Bush and guys on Wall Street can say whatever they want about us not being in a recession. But none of us have ever paid this much for gas, and it has an impact..

The price of gas, which at press time was hovering just under $4 for a gallon of regular in Central Kentucky, is what arts administrators return to in discussing the economy's potential impact. That includes the effect of gas prices on travel, which audiences and artists alike must do to get to the theater, and the ripple effects that higher gas prices can have on household budgets, corporate philanthropy and ticket prices. ]]> http://www.kentucky.com/783/story/610736.html http://www.kentucky.com/783/story/610736.html Sun, 30 Nov 2008 02:55 EST
QUINCY, Fla. . Bruce Thomas washed cars at his father's General Motors dealership here at age 12, changed oil in high school and sold his first Pontiac during college.

His commitment to a famed American industry, part business and part romance, never waned. He took over his family's two dealerships, building a small fortune. In turn, he showered generosity on local churches, school athletic teams, charity golf tournaments and a group that helps women find jobs out of prison.

But suddenly, Thomas' success seems to be melting away.

Days go by without a sale. His debts are mounting. His friends offer him cash to get by. "I'm trying to survive as a car dealer," said Thomas, now 59, "and I don't know if I can." ]]> http://www.kentucky.com/783/story/610728.html http://www.kentucky.com/783/story/610728.html Sun, 30 Nov 2008 02:55 EST
NEW YORK . One notable batch of letters this year is being sent not by kids to Santa but by parents to real-world toy makers. The message: Please, in these days of economic angst, cut back on marketing your products directly to our children.

The letter-writing initiative was launched by the Boston-based Campaign for a Commercial-Free Childhood, which says roughly 1,400 of its supporters have contacted 24 leading toy companies and retailers to express concern about ads aimed at kids.

"Unfortunately, I will not be able to purchase many of the toys that my sons have asked for," wrote Todd Helmkamp of Hudson, Ind. "You are placing parents like me in the unenviable position of having to tell our children that we can't afford the toys you promote."

The Toy Industry Association has responded, asserting that children "are a vital part of the gift selection process." ]]> http://www.kentucky.com/783/story/608279.html http://www.kentucky.com/783/story/608279.html Fri, 28 Nov 2008 02:48 EST
WASHINGTON . The full scope of the housing meltdown isn't clear and already there are ominous signs of a new crisis, one that could turn out the lights on malls, hotels and storefronts nationwide.

Even as the holiday shopping season begins in full swing, the same events poisoning the housing market are now at work on commercial properties, and the bad news is trickling in. Malls from Michigan to Georgia are entering foreclosure.

Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default on their mortgages.

That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings Ltd., which evaluates companies' credit. ]]> http://www.kentucky.com/783/story/608278.html http://www.kentucky.com/783/story/608278.html Fri, 28 Nov 2008 02:48 EST
CHICAGO . The line for a Thanksgiving meal was long when the Chicago Christian Industrial League shelter opened Thursday morning, and volunteers served more than 200 people in the first 40 minutes . record demand for the shelter.

Among the hungry were people who had helped provide Thanksgiving meals in the past, executive director Mary Shaver aid.

"These are the people who are always giving money . and now they're asking for help," Shaver said.

Food banks and shelters across the country are struggling to cope with a spike in demand for their services. With more people feeling the weight of the economic downturn, those who oversee the charities say they are seeing many new faces on food lines. ]]> http://www.kentucky.com/783/story/607541.html http://www.kentucky.com/783/story/607541.html Thu, 27 Nov 2008 02:42 EST
Thompson . Riley is leaving East Main Street, and owner Jamie Bates says the future of the 44-year-old auction company is uncertain because of the recession.

Bates says he expects to hold his last auction at 710 East Main at 10 a.m. Friday.

After the sale, leftover items will be placed in storage and the auction house will be closed, he said Wednesday.

Thompson . Riley will move to a temporary office. The firm expects to hold only a limited number of auctions at undetermined locations in December, January and February . the "slowest time" of the year for auction companies, Bates said. ]]> http://www.kentucky.com/783/story/606038.html http://www.kentucky.com/783/story/606038.html Wed, 26 Nov 2008 08:03 EST
WASHINGTON . The Federal Reserve and the Treasury announced $800 billion in new lending programs on Tuesday, sending a message that they would print as much money as needed to revive the nation's crippled banking system.

The gargantuan efforts . one to finance loans for consumers, and a bigger one to push down home mortgage rates . were the latest but probably not the last of the federal government's initiatives to absorb the shocks that began with losses on subprime mortgages and have spread to every corner of the economy.

In the last year, the government has assumed $7.4 trillion in direct and indirect financial obligations. That is equal to about half the size of the nation's entire economy and far eclipses the $700 billion that Congress authorized for the Treasury's financial rescue plan.

Those obligations include $1.5 trillion already committed to loans, capital infusions to banks and the rescues of firms such as Bear Stearns and the American International Group, the failed insurance conglomerate. But they also include additional trillions in government guarantees on mortgages, bank deposits, commercial loans and money market funds. ]]> http://www.kentucky.com/783/story/606037.html http://www.kentucky.com/783/story/606037.html Wed, 26 Nov 2008 02:46 EST
WASHINGTON . Since the U.S. economy went into freefall in September, the federal government has announced hundreds of billions of dollars in bailouts and economic stimulus packages in attempts to shore up banks and reignite the economy.

The latest astronomical figure is an $800 billion, in a package announced Tuesday by the Federal Reserve and the Treasury Department. Many are wondering, however, how long this spending can go on. Here are a few answers:

Q: Where does the money come from?

A: The bulk of the cash has been put up by lenders buying U.S. Treasury Department securities such as bonds, notes and short-term bills. ]]> http://www.kentucky.com/783/story/606013.html http://www.kentucky.com/783/story/606013.html Wed, 26 Nov 2008 02:46 EST
NEW YORK . The Federal Deposit Insurance Corp. said Tuesday the list of banks it considers to be in trouble shot up nearly 50 percent to 171 during the third quarter . yet another sign of escalating problems among the institutions controlling Americans' deposits.

The 171 banks on the FDIC's "problem list" encompass only about 2 percent of the nearly 8,500 FDIC-insured institutions. Still, the increase from 117 in the second quarter is sharp, and the current tally is the highest since late 1995.

"We've had profound problems in our financial markets that are taking a rising toll on the real economy," said FDIC Chairman Sheila Bair in a statement, adding that Tuesday's report "reflects these challenges."

Banks across the country have been hurt . and in some cases, devastated . by the collapse of the subprime mortgage market and subsequent problems across the lending spectrum. As the FDIC report shows, the number of hobbled institutions is rising at a quickening pace, a trend that has already begun to reshape the banking industry. ]]> http://www.kentucky.com/783/story/603598.html http://www.kentucky.com/783/story/603598.html Tue, 25 Nov 2008 14:53 EST
NEW YORK . Cash or credit? For more Americans, who have already maxed out their credit cards or are just trying to manage their spending better in the tough economy, the answer is increasingly the old-fashioned one.

Retailers such as Wal-Mart Stores Inc., Target Corp. and JCPenney Co. are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time.

The shift cools Americans' long love affair with credit cards. And it is one of the changes in consumer behavior that has emerged since the financial meltdown that could depress consumer spending this holiday season and affect shoppers' habits long afterward.

Particularly during holiday seasons past, shoppers could count on a pile of plastic to give them the extra financing needed to splurge on presents before they had to face the bills in January or later. ]]> http://www.kentucky.com/783/story/603597.html http://www.kentucky.com/783/story/603597.html Mon, 24 Nov 2008 07:21 EST
WASHINGTON . The government unveiled a bold plan Sunday to rescue troubled Citigroup, including taking a $20 billion stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.

The action, announced jointly by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already crippled financial system and the U.S. economy.

The sweeping plan is geared to stemming a crisis of confidence in the company, whose stock has been hammered in the past week on worries about its financial health.

"With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy," the three agencies said in a statement Sunday night. ]]> http://www.kentucky.com/783/story/602767.html http://www.kentucky.com/783/story/602767.html Sun, 23 Nov 2008 03:10 EST
FENNVILLE, Mich. . The bad news keeps coming to Michigan, a state long stuck in recession and at ground zero in the national economic downturn. But unlike in months and years past, there are no exceptions to the despair, not even here among the bucolic resort communities along Lake Michigan.

The flailing auto industry is important here, but so is furniture-building, tourism, the retail trade and construction . pieces of the economy long buffered from the downturn in Detroit. Now waves of layoffs are sweeping towns around the state, swelling the ranks of the unemployed just as tens of thousands of those already out of work fear running out of unemployment benefits.

"You just sit and you worry," said Pat Weber, a construction administrator who was laid off more than a year ago. "In the last year, I've put in for more than 100 jobs. I stopped counting after 110."

All around Fennville and its neighbors in southwest Michigan, front lawns are peppered with for-sale signs and merchants complain about slow days. But while this remains a beautiful place with none of the obvious blight of Detroit, residents say the hardship beneath the surface is very real. ]]> http://www.kentucky.com/783/story/602760.html http://www.kentucky.com/783/story/602760.html Sun, 23 Nov 2008 03:10 EST
WASHINGTON . The economy appears headed toward the deepest recession in modern times, consumer confidence is at record lows and personal wealth is being destroyed daily on Wall Street. Against that backdrop, retailers must persuade weary Americans to pull out their wallets and shop this holiday season.

"What you are seeing is a perfect storm in terms of weakness in core economic indicators, each of which is having a negative effect on the consumer, and because of that it is having a profound effect on the retail industry," said Scott Krugman, a spokesman for the National Retail Federation.

The challenges will be big and small. Almost three-quarters of consumers haven't started holiday shopping yet, waiting for sales. Gift-card spending is projected to fall 5.6 percent as people pull back and shop for bargains.

Consequently, the federation, a trade group in the nation's capital, expects national sales to be slightly off last year's slow pace. Over the past decade, holiday sales have averaged 4.4 percent annual growth, but they're expected to grow this year by a milder 2.2 percent. That's below even last year's sluggish 2.4 percent rate. Still, it's growth, and if it happens, that'll show once again the resiliency of the American consumer. Hard times or not, Christmas is about spending. ]]> http://www.kentucky.com/783/story/602759.html http://www.kentucky.com/783/story/602759.html Sun, 23 Nov 2008 03:10 EST
NEW YORK . Since the Nov. 4 election, investors have been abandoning stocks in a kind of slow-motion crash that experts say underlines just how anxious they are about what is likely to be a long and deep recession.

Even after a late-day rally on Friday, the benchmark Standard . Poor's 500 index has plunged 20 percent since the election. That more than wiped out the index's 18 percent gain in the six trading days ahead of the balloting as optimism grew that Barack Obama would be elected president.

Analysts aren't blaming Obama specifically for the post-election hangover. Rather, they peg it to growing fears that the Bush administration and Congress are fumbling the $700 billion bailout plan and the weakened economy's impact on financial stocks . highlighted by the plunge in shares of Citigroup Inc. to below $4 a share.

"You can almost hear people yelling, 'Get me out at any price,'." said Al Goodman, chief market strategist at Wachovia Securities. "It's the highest level of fear and depression in my 45 years as a student of the market." ]]> http://www.kentucky.com/783/story/600291.html http://www.kentucky.com/783/story/600291.html Fri, 21 Nov 2008 06:13 EST
DES MOINES, Iowa . There was a time when thresholds meant something. The Dow Jones average sinking below 8,000 must mean the bottom is near. The S.P 500 falling 50 percent from its high must signal the end of the freefall.

Economists, money managers and traders who watch the markets closely say you can't assume previous bear market measures mean much. They acknowledge they don't know where the bottom is and anxiety remains high. So does the selling, which continued Thursday.

Wall Street saw intense selling late in the session after hopes faded that lawmakers would quickly assemble an aid package for U.S. automakers, and as the Standard . Poor's 500 index broke through lows established in 2002. That breach of a key technical threshold sent a shudder through the market and touched off further selling.

The S.P 500 index fell 6.7 percent to its lowest close since April 1997. The Dow Jones industrial average, meanwhile, fell 445 points, or 5.6 percent, to its lowest close since March 2003. The decline brings the Dow's two-day drop to 873 points, or 10.6 percent, its worst two-day percentage loss since October 1987. ]]> http://www.kentucky.com/783/story/599045.html http://www.kentucky.com/783/story/599045.html Thu, 20 Nov 2008 02:38 EST
Frugality is making a comeback.

Fearful that economic conditions could get worse and stay that way, Americans are showing an enthusiasm for thriftiness not seen in decades.

This behavioral shift isn't simply about spending less. The New Frugality emphasizes stretching every dollar. It means bypassing the fashion mall for the discount chain store, buying secondhand clothes and furniture, or trading down to store brands.

There's more business for repairmen, and less for salesmen. Consumers are clipping more coupons and swiping their credit cards less. ]]> http://www.kentucky.com/783/story/597579.html http://www.kentucky.com/783/story/597579.html Wed, 19 Nov 2008 10:23 EST
WASHINGTON . The CEOs of the nation's Big Three automakers didn't get much respect when they pulled up at the nation's money pump asking for a $25 billion fill-up.

Senators weren't in much of a mood to talk about it Tuesday, at least not without a heavy dose of sarcasm.

"No one can say that they didn't see this coming, "Banking Committee Chairman Chris Dodd, D-Conn, told the executives sitting in a row before him. The industry was "seeking treatments for wounds that I believe to a large extent were self-inflicted."

And Dodd is actually a supporter of the new lifeline, like most Democrats and President-elect Barack Obama. ]]> http://www.kentucky.com/783/story/596166.html http://www.kentucky.com/783/story/596166.html Tue, 18 Nov 2008 02:39 EST
Associated Press

NEW YORK . The stock market is trying to form a bottom, but the economic landscape keeps changing.

With the Treasury switching its financial bailout plans and Congress fighting over a potential rescue package for automakers, investors are having a tough time figuring out what the future will bring. And that will likely mean more wild swings in the market this week.

"These are tremendous dollops of uncertainty, one after the other," said Quincy Krosby, chief investment strategist for The Hartford. "A market needs confidence that things are going to get better. And right now there is a marked, marked lack of confidence that things are going to get better." ]]> http://www.kentucky.com/783/story/595009.html http://www.kentucky.com/783/story/595009.html Mon, 17 Nov 2008 06:17 EST
WASHINGTON . Led by California with a $28 billion hole in its budget, 41 states are in financial trouble, and many of their leaders are looking to Congress to bail them out.

State officials are hoping to join the ranks of the financial industry and auto manufacturers, who've found a sympathetic ear on Capitol Hill. They've found some key supporters: House Speaker Nancy Pelosi and other top Democrats are promoting aid to states as part of a broad stimulus package that could inject more than $300 billion into the ailing economy.

The idea is getting a strong bipartisan push from governors across the country, with California Republican Gov. Arnold Schwarzenegger and New York Democratic Gov. David Paterson among the chief proponents. Both are blaming Washington for their states' mounting troubles.

Testifying at a recent House of Representatives hearing, Paterson said that New York was "at the epicenter of a national emergency" after federal oversight bodies "utterly failed in their duty" to protect Americans' savings and the U.S. financial system. Speaking Wednesday before a Chamber of Commerce group in Fresno, Calif., Schwarzenegger said that "government is really at fault" and that Washington is obligated to "get us out of this mess." ]]> http://www.kentucky.com/783/story/594067.html http://www.kentucky.com/783/story/594067.html Sun, 16 Nov 2008 02:58 EST
WASHINGTON . World leaders, who gathered here to tackle the ongoing global financial crisis, agreed to a broad range of solutions Saturday but left the details to be worked out until the spring.

The summit of the Group of 20, which represents 19 countries and the European Union, called for a range of new regulations of financial institutions, credit rating agencies and other bodies widely blamed for sparking the gravest global economic crisis in decades.

The summit also demanded that large developing economies such as Brazil's and China's be given more say in the operation of institutions such as the International Monetary Fund that many complain are dominated by the United States and other industrial nations.

Despite the event's hoopla, a joint declaration issued by the meeting's participants Saturday afternoon was heavy on generalities such as the need for more coordinated global action, financial transparency and tighter economic regulations. It gave leaders until the next summit to be held by April to fill in the blanks. ]]> http://www.kentucky.com/783/story/591580.html http://www.kentucky.com/783/story/591580.html Fri, 14 Nov 2008 06:36 EST
FRANKFORT . Animal control workers in some rural Kentucky communities have a larger problem than stray dogs and cats . much larger. Stray horses have been turning up, and animal advocates blame horse owners hurt by the faltering economy.

"People who used to be able to afford their horses now can no longer afford their horses," said Ginny Grulke, executive director of the Kentucky Horse Council. "These are not people who are ruthless or inhumane. In general, it's an economic problem, and they have no options. They don't know what to do with their animals."

Lancaster resident Connie Short said a small black horse showed up on her farm in August. Despite her best efforts, she couldn't find the owner of the hungry stray that she fed for about two months until animal control workers found a foster home.

"Nobody wanted him," Short said. "It was like somebody had dropped off a dog or a cat." ]]> http://www.kentucky.com/783/story/591546.html http://www.kentucky.com/783/story/591546.html Fri, 14 Nov 2008 02:42 EST
LONDON . The world's developed countries, hard hit by the financial crisis, have probably tipped into a recession that will last at least through the first half of 2009, according to new projections issued Thursday.

The Paris-based Organization for Economic Cooperation and Development forecast that economic output would shrink 1.4 percent this quarter for the 30 market democracies that make up its membership . and keep contracting until the middle of next year.

That would mean the developed world has now entered a slump estimated to last at least three quarters; two consecutive quarters is a common definition of recession. For all of 2009, these countries' economies would contract by 0.3 percent.

Additionally, the U.S. economy would fall by 2.8 percent in the last quarter, after a 0.3 percent drop in the third quarter and then shrink by a full 0.9 percent in 2009. Japan's economy would shrink by 0.1 percent next year and the euro area by 0.5 percent. ]]> http://www.kentucky.com/783/story/591524.html http://www.kentucky.com/783/story/591524.html Fri, 14 Nov 2008 02:42 EST
WASHINGTON . The prospects of a government rescue for the nation's foundering auto makers dwindled Thursday as Democratic congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck legislative session next week.

At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. Democratic leaders have been calling for a package that would include help for the auto companies as well as new spending on public works projects, an extension of unemployment benefits, increased food stamps and aid to states for rising Medicaid expenses.

But while Democrats said the stimulus measure would wait until President-elect Barack Obama takes office in January, some industry experts fear that one or more of the Big Three automakers will collapse before then.

Despite hardening opposition at the White House and among Republicans on Capitol Hill, the Democrats said they would press ahead with efforts to provide $25 billion in emergency aid for the automakers. But they said the bill would need to be approved first in the Senate, which some Democrats said was highly unlikely. ]]> http://www.kentucky.com/783/story/591517.html http://www.kentucky.com/783/story/591517.html Fri, 14 Nov 2008 06:11 EST
NEW YORK . President George W. Bush fervently defended U.S.-style free enterprise Thursday as the cure for the world's financial chaos, not the cause. He warned foreign leaders ahead of a weekend summit not to crush global growth with restrictive new rules.

"We must recognize that government intervention is not a cure-all," Bush said from Wall Street, setting his own tone for the two-day meeting that begins Friday in Washington seeking solutions to the economic crisis that has spread around the world.

"Our aim should not be more government," he told the business executives. "It should be smarter government."

The president acknowledged that governments share the blame for the severe economic troubles that have hit banks, homes and whole countries. ]]> http://www.kentucky.com/783/story/590234.html http://www.kentucky.com/783/story/590234.html Thu, 13 Nov 2008 06:21 EST
WASHINGTON . Urgently shifting course, the Bush administration revamped its $700 billion bailout package by jettisoning the idea of purchasing banks' distressed assets . the centerpiece of the original plan . and announcing Wednesday that it will search for new ways to shore up not only banks but credit-card, auto-loan and other huge non-bank businesses.

Democrats, meanwhile, are pressing hard to include billions of dollars in help for faltering automakers . over administration objections.

Unimpressed by any of the overhaul talk, Wall Street plunged lower.

"The facts changed, and the situation worsened," Treasury Secretary Henry Paulson said at a news briefing, explaining the administration's switch from its plan to help financial institutions by buying up troubled assets, primarily securities backed by bad home loans, and instead continue to focus on direct purchases of bank stock. ]]> http://www.kentucky.com/783/story/587819.html http://www.kentucky.com/783/story/587819.html Tue, 11 Nov 2008 02:43 EST
Cumulus Broadcasting laid off seven of the 42 employees at its six Lexington radio stations last week, including two of its three news reporters, as it deals with declining advertising revenues.

The Cumulus cuts included full-time news staffers Joe Gillespie and Kendra Steele. Scott Johnson, who is now news director, was the only reporter spared.

Steele said Cumulus had reduced staffing at its stations in other cities, and the company's Lexington employees feared it would happen here.

"WVLK (the company's Lexington flagship AM station) has always been news-oriented, and we have always kind of prided ourselves in having people live in the studio and live on the street," Steele said. "Obviously, that's going to change now. It's going to have to." ]]> http://www.kentucky.com/783/story/587809.html http://www.kentucky.com/783/story/587809.html Tue, 11 Nov 2008 02:43 EST
Circuit City, the nation's second-biggest electronics retailer, filed for bankruptcy protection Monday, just a week after it announced it would close 20 percent of its stores and lay off more than 7,000 workers.

"Without immediate relief, the company is concerned that it will not receive goods for Black Friday and the upcoming holiday season, which could cause irreparable harm to the company and its stakeholders," Chief Financial Officer Bruce H. Besanko said in the filing.

The company is hoping to exit court protection by early summer 2009, putting it in a position to find a buyer for the chain or operate as a standalone business.

Its shares fell 14 cents, or about 56 percent, to 11 cents Monday before being halted. ]]> http://www.kentucky.com/783/story/587807.html http://www.kentucky.com/783/story/587807.html Tue, 11 Nov 2008 02:43 EST
ATLANTA . In a move that could greatly scale back a possible venture between UPS and Deutsche Post's DHL, the German company said Monday it will significantly reduce its air and ground operations in the U.S. and cut 9,500 jobs within the country.

The DHL-UPS deal was expected to last up to 10 years and infuse Atlanta-based UPS with up to $1 billion in annual revenue, if completed as first proposed in May.

UPS, the world's largest shipping carrier, has said the contract with DHL, which it has been working to finalize, would mostly involve the transport of DHL packages between airports in North America . not the pickup or delivery of DHL packages to customers.

If DHL made significant cuts to its ground operations in the United States, it wouldn't necessarily affect UPS and DHL's reaching a deal since their talks have solely involved air delivery of packages, not ground delivery. But Deutsche Post's announcement went well beyond the elimination of ground products within the United States. Deutsche Post said it will discontinue U.S. domestic-only air and ground products on Jan. 30 to focus entirely on its international offering. ]]> http://www.kentucky.com/783/story/584818.html http://www.kentucky.com/783/story/584818.html Sat, 08 Nov 2008 02:47 EST
DETROIT . The American auto industry is running on fumes.

General Motors, the nation's largest automaker, warned Friday that it might run out of money by the end of the year after piling up billions in third-quarter losses and burning through cash at an alarming rate. Ford sustained heavy losses, too.

The situation is so severe that GM has suspended talks to acquire Chrysler and is appealing to the government for help as the slumping economy drags car sales to their lowest level in a quarter-century.

GM Chairman and CEO Rick Wagoner said the company will "take every action" possible to avoid bankruptcy. "We're convinced that the consequences of bankruptcy would be dire," he said, adding that the company would use every source of potential funding. ]]> http://www.kentucky.com/783/story/583652.html http://www.kentucky.com/783/story/583652.html Fri, 07 Nov 2008 02:54 EST
WASHINGTON . A fresh wave of bad economic news pummeled the stock market Thursday and served as a bleak reminder of the huge task that lies ahead for the next administration. As president-elect, Barack Obama faces the difficult assignment of dealing ever more directly with the economic meltdown, grappling with the worst financial crisis in seven decades but not yet wielding the power to do much about it.

He won't be a participant at President Bush's global summit next week, although the 20 leaders attending are no doubt keenly interested in his views. And he may have to eventually push back against some members of his own party in Congress over details of a new plan to stimulate the economy.

Congress convenes for a lame-duck session on Nov. 17, and Obama is giving all indications that he'll play a direct role rather than keeping his distance until he is sworn in.

"The president-elect has said he wants another stimulus, the president-elect therefore has views on what that stimulus should be, and the Democratic Congress should take its cues from the president-elect," said economist Rob Shapiro, a top Commerce Department official in the Clinton administration who now is on Obama's team of transition advisers. ]]> http://www.kentucky.com/783/story/579687.html http://www.kentucky.com/783/story/579687.html Tue, 04 Nov 2008 01:51 EST
WASHINGTON . The government, raising cash to pay for the array of financial rescue packages, said Monday it plans to borrow $550 billion in the final three months of this year . and that's just a down payment.

Treasury Department officials also projected the government would need to borrow $368 billion more in the first three months of 2009, meaning the next president will confront an ocean of red ink.

The non-partisan Committee for a Responsible Budget estimates that all the government economic and rescue initiatives, starting with the $168 billion in stimulus checks issued earlier this year, total even more . an eye-popping $2.6 trillion.

In addition to the borrowing numbers, Treasury released estimates by major Wall Street bond firms projecting that total borrowing for this budget year, which began Oct. 1, will total $1.4 trillion, nearly double the previous record. ]]> http://www.kentucky.com/783/story/569749.html http://www.kentucky.com/783/story/569749.html Mon, 27 Oct 2008 01:52 EDT
Basic banking rules have changed in recent weeks as regulators have moved to bolster investor confidence in both the financial system and the economy.

The changes include higher limits on deposit insurance and the government purchasing shares in banks including Bank of America Corp. and Citigroup Inc. Together, the steps already have had some effect, bringing in deposits and driving down bank lending rates, said Greg McBride, a senior financial analyst at Bankrate.com, a research firm in Florida.

"This is really hitting at the heart of consumer concerns," he said.

Higher account insurance ]]> http://www.kentucky.com/783/story/563786.html http://www.kentucky.com/783/story/563786.html Wed, 22 Oct 2008 01:52 EDT
WASHINGTON . Lawmakers waded gingerly Tuesday into a complex debate about ways to overhaul the regulatory structure overseeing the U.S. financial system, promising stricter rules governing risky financial products seen as responsible for the current financial crisis.

It could also involve creation of a special committee to draft the upcoming regulatory overhaul, said House Financial Services Committee Chairman Barney Frank, D-Mass.

The question of a special committee was but one topic as the panel kicked off what promises to be a long, complex debate about ways to avoid a repeat of the current financial mess, which has its roots in excesses in the subprime mortgage market and rapidly eroding value of widely held mortgage-backed financial products.

Democrats controlling Congress have expansive but vague plans to extensively strengthen the current regulatory framework. ]]> http://www.kentucky.com/783/story/561554.html http://www.kentucky.com/783/story/561554.html Mon, 20 Oct 2008 01:51 EDT
WASHINGTON . Freddie Mac secretly paid a Republican consulting firm $2 million to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years before the government took control to prevent their collapse.

In the cross hairs of the campaign carried out by DCI of Washington were Republican senators and a regulatory overhaul bill sponsored by Sen. Chuck Hagel, R-Neb. DCI's chief executive is Doug Goodyear, whom John McCain's campaign later hired to manage the GOP convention in September.

Freddie Mac's payments to DCI began shortly after the Senate Banking, Housing and Urban Affairs Committee sent Hagel's bill to the then GOP-run Senate on July 28, 2005. All GOP members of the committee supported it; all Democrats opposed it.

In the midst of DCI's yearlong effort, Hagel and 25 other Republican senators pleaded unsuccessfully with Senate Majority Leader Bill Frist, R-Tenn., to allow a vote. ]]> http://www.kentucky.com/783/story/550045.html http://www.kentucky.com/783/story/550045.html Thu, 09 Oct 2008 01:49 EDT
WASHINGTON . Will U.S. consumers benefit from the interest rate cuts announced Wednesday by the Federal Reserve and several other countries' central banks? For most people, probably not much, at least for a while. But people with strong credit could see lower credit card rates soon, and the move could eventually help point the economy in the right direction.

Here are some questions and answers about the interest rate cuts.

Q: Will the rate cuts help fix the financial crisis?

A: Not in the short term, most economists say. The cuts don't directly address the main problem behind the financial meltdown: the reluctance of banks to lend money. ]]> http://www.kentucky.com/783/story/547567.html http://www.kentucky.com/783/story/547567.html Tue, 07 Oct 2008 05:37 EDT
WASHINGTON . The U.S. financial crisis spread around the world like a wildfire on Monday as stock prices plunged here and abroad amid eroding confidence in the world's banking system.

The Dow Jones industrial average plummeted 800 points before a late rally let it close down "only" 369.88 points, at 9955.50. That's the first time the Dow had closed below 10,000 in almost four years. The Dow first crossed above 10,000 on March 16, 1999.

Monday's drop on all three major U.S. indices to levels first reached a decade ago was a sobering reminder that Wall Street and the retirement plans of ordinary Americans are spiraling downward together. The S.P 500 was off 42.34 points to 1506.89 and the Nasdaq sank 84.43 points to 1862.96.

"This is not the Great Depression. People should not get panicked," said Lyle Gramley, an investment adviser and former Reagan era Federal Reserve governor who has followed markets for more than five decades. ]]> http://www.kentucky.com/783/story/544279.html http://www.kentucky.com/783/story/544279.html Sat, 04 Oct 2008 07:04 EDT
WASHINGTON . Half of the members of Kentucky's congressional delegation voted to approve the largest federal bailout in the nation's history . a measure with a price tag that soared from an estimated $700 billion to nearly $1 trillion after lawmakers from both parties added billions in federally funded pet projects.

In a complete reversal of Monday's vote, Rep. John Yarmuth, D-Louisville, joined Republicans Ron Lewis of Cecilia, and Harold "Hal" Rogers of Somerset in supporting the bill. Reps. Ben Chandler, D-Lexington, Geoff Davis, R-Hebron, and Ed Whitfield, R-Hopkinsville, held firm in their opposition to the proposal, which the White House characterized as critical to shoring up the nation's financial sector.

The measure passed 263 to 171.

Wall Street traders watched anxiously from the floor of the New York Stock Exchange as the votes were tallied and cheered the measure's passage. The Dow edged up after the vote. ]]> http://www.kentucky.com/783/story/544805.html http://www.kentucky.com/783/story/544805.html Sat, 04 Oct 2008 01:50 EDT
FRANKFORT . Finance Secretary Jonathan Miller said Friday that Kentucky is weathering Wall Street's financial woes better than some other state governments.

In California, for example, financial officials warned this week that the nation's frozen credit markets are threatening the state's ability to do short-term borrowing to pay immediate expenses, and that the state could run out of money by the end of October.

"We're not in a California-type situation," Miller said. "We have sufficient liquidity. We have plenty of cash to allow us to pay our bills, to pay state salaries, and to continue to provide government services. There's no immediate crisis on the horizon."

Congress approved an unprecedented government bailout of the battered financial industry on Friday. Miller said he's hopeful the move will ease the credit crisis and boost the market for government bonds. ]]> http://www.kentucky.com/783/story/543811.html http://www.kentucky.com/783/story/543811.html Fri, 03 Oct 2008 06:10 EDT -- MAIN STREET: FEWER CUSTOMERS
-- ON CAMPUS: TOILET PAPER OR PARTY?
-- HOMEOWNERS LOOK FOR WAYS TO CUT BACK



On Thursday, the country waited.



It was the day the U.S. Congress sat divided, one house saying yes, the other saying no, to the largest bailout imaginable of Wall Street and some of the country's once most venerable financial institutions. And the day we all sort of sat around and waited to see what would happen if one side, or the other, ruled the day. ]]> http://www.kentucky.com/783/story/542150.html http://www.kentucky.com/783/story/542150.html Thu, 02 Oct 2008 14:05 EDT
.

try{f_cbload("c8521000h5j2g5b6f9d9e8i5d2c5","http:");}catch(v_e){;}
Click here to load this Caspio Bridge DataPage . ]]> http://www.kentucky.com/783/story/542496.html http://www.kentucky.com/783/story/542496.html Wed, 01 Oct 2008 18:17 EDT http://www.kentucky.com/783/story/541585.html http://www.kentucky.com/783/story/541585.html Wed, 01 Oct 2008 10:49 EDT
Looking for tangible signs of the credit crunch and economic turmoil across Central Kentucky's landscape?

Here are two: noticeably fewer houses being built throughout the region, and more half-completed houses dotting the landscape.

Central Kentucky home builders say the credit crisis . especially banks tightening up on loans for builders and buyers . is hitting them hard.

Not only are fewer houses getting started in Lexington, fewer homes are getting finished as builders run out of money and can't borrow more from the banks, said Dewey Crowe, director of building inspection at the Lexington-Fayette Urban County Government. ]]> http://www.kentucky.com/783/story/541600.html http://www.kentucky.com/783/story/541600.html Wed, 01 Oct 2008 01:53 EDT
Kentucky banks have money and they are making loans, including mortgages and small business loans, bankers say.

The loan process might take longer, involve more paperwork and require a larger down payment, but bankers say borrowers can generally get the money they need.

"In many respects, it's business as usual on the borrowing side" . with one big exception, said Steve Kelly, executive vice president of Central Bank . Trust Co. "The era when you could get into a house with zero down is over."

First-time home buyers might have to make a 20 percent down payment, while those with longer histories of repaying loans on time might get the more traditional 10 percent down payment. ]]> http://www.kentucky.com/783/story/540567.html http://www.kentucky.com/783/story/540567.html Tue, 30 Sep 2008 07:08 EDT
If there is no bailout to rescue investors and mortgage lenders, stock prices and consumer spending will drop, and interest rates and unemployment will rise for the next year or so.

"We are going to be faced with a period in which we have slow or negative growth in the economy," said Ken Troske, director of the Center for Business and Economic Research at the University of Kentucky.

The economy will begin rebounding as overpriced properties are sold and real estate markets recover, Troske said.

David Smyth, senior partner at Family Financial Partners in Lexington, sees mistrust dominating the markets, unless something changes quickly to enable passage of the bailout and restore trust. ]]> http://www.kentucky.com/783/story/536817.html http://www.kentucky.com/783/story/536817.html Fri, 26 Sep 2008 01:51 EDT
Financial advisers around Lexington say their phones are buzzing this week with calls from clients wanting to know what to do with their investments in the continuing national economic turmoil.

Advisors say generally that they're urging clients to move cautiously and take no rash actions with their portfolios, despite daily reports of fluctuating stock prices and $700-billion government bail outs.

"History shows that sometimes the best thing you can do in a situation like this is to practice patience and sit on your hands," said David Smyth, senior partner with Family Financial Partners. "But it's the hardest thing to do."

Hard even for experienced investors like Lexington's Gertrude Gajardo, 76. She was member of an investment club in the 1990s, and now is part of an investment group whose members share information and inspiration. She has seen up and down markets over the years, but nothing quite like what's been happening in the past few weeks. ]]> http://www.kentucky.com/783/story/477209.html http://www.kentucky.com/783/story/477209.html Fri, 01 Aug 2008 08:19 EDT
The American Dream might seem even more out of reach to some Central Kentucky residents hit by the rising costs of food, gas and utilities. But they're finding ways to scrape by in shaky economic times. When gas prices jump, they carpool. When diapers go on sale, they rush to the store.

Lexingtonians . including a couple who share a bedroom with their children to cut costs, a couple looking for jobs after a layoff, a man who was evicted and a woman selling Avon for gas money . share their stories of survival.



Parents, children share bedroom
Jobless: "I even applied to Hustler Hollywood'
Evicted, disabled and uncertain about future
Cutting back: Upper middle class not immune from the problem ]]> http://www.kentucky.com/783/story/415586.html http://www.kentucky.com/783/story/415586.html Tue, 27 May 2008 11:36 EDT
But you're going to have to wait in line.

LexVan leases passenger vans to groups of people who want to share a ride to and from work. The service now has vans running from Lexington to Frankfort and into Lexington from places such as Paris, Berea, Salvisa and Irvine each morning. Some of the vans make stops at several workplaces each day, while others are used by people who work at one particular business.

But all of the service's available vans are leased out, and, as of last week, there were 11 groups of people on a waiting list for vans, said Roger Daman, a senior planner for the Lexington-Fayette Urban County Government who oversees the program.

He said he hasn't seen demand so high in the six years he's been in his job. Most of the many inquiries he's been getting about the service are from people concerned about the rising cost of gasoline, he said.]]> http://www.kentucky.com/783/story/415561.html http://www.kentucky.com/783/story/415561.html Tue, 27 May 2008 11:34 EDT
Call 233-POOL and provide your address, place of work and work schedule, and you'll be matched up with others who live and work near you.

A computer program is used to match people up for carpooling.

Then, said Roger Daman, a senior planner with the Lexington-Fayette Urban County Government, "We send out the information to people who live and work in the same area."

"It's just a free service to match people up, and they can get together and carpool if they choose to. Typically, they split the cost of gas," he said.]]> http://www.kentucky.com/783/story/415552.html http://www.kentucky.com/783/story/415552.html Tue, 27 May 2008 11:26 EDT
Since last fall, the 28-year-old electrical engineer has been riding his bicycle to work in good weather and bad.

"I really got hooked," Dickinson said last week. "It's a ton of fun ... . It's great. You get to exercise and feel good."

He is also saving money on gasoline and helping the environment, but those are just bonuses to Dickinson.

"You look forward to your commute on a bike," he said. "It's great to be outside. You see so much more. You can say 'Hi' to people you pass. It's just a lot of fun."]]> http://www.kentucky.com/783/story/415584.html http://www.kentucky.com/783/story/415584.html Tue, 27 May 2008 11:13 EDT
"Right now we're looking at all the main corridors in Lexington and trying to find locations for park-and-ride lots," said LexTran spokesman Dave Riggins, adding that bus system officials have been talking with representatives of businesses and churches that might have available parking space.

"I think with the gas prices where they are a lot of folks are more interested in parking their car and jumping on a bus and going to work," Riggins said.

LexTran also is expanding service along Southland Drive beginning June 2. The Southland/BCTC Route 42 will service the Regency Road, Bluegrass Community and Technical College, Southland Drive and Rosemont Garden areas.

LexTran officials also are putting together a survey for employers in the Mercer Road-Leestown Road area to see if there is sufficient interest in a jobs bus for that area. Such a service would pick up workers at intersections nearest their homes, take them to work, then drop them off at the intersections after work.]]> http://www.kentucky.com/783/story/420882.html http://www.kentucky.com/783/story/420882.html Fri, 06 Jun 2008 12:09 EDT
In Central Kentucky, most people have to drive, so they have to buy gas. But they don't necessarily have to go to, say, the theater, and Bluegrass-area arts and entertainment presenters worry about what the current economic travails will mean.

.I cannot give a definitive answer,. says Carl Hall, general manager of Rupp Arena. .But any time your discretionary income decreases, it's not good for our business..

Richard St. Peter, artistic director of Actors Guild of Lexington, says, .President Bush and guys on Wall Street can say whatever they want about us not being in a recession. But none of us have ever paid this much for gas, and it has an impact..

The price of gas, which at press time was hovering just under $4 for a gallon of regular in Central Kentucky, is what arts administrators return to in discussing the economy's potential impact. That includes the effect of gas prices on travel, which audiences and artists alike must do to get to the theater, and the ripple effects that higher gas prices can have on household budgets, corporate philanthropy and ticket prices. ]]> http://www.kentucky.com/783/story/610736.html http://www.kentucky.com/783/story/610736.html Sun, 30 Nov 2008 02:55 EST
QUINCY, Fla. . Bruce Thomas washed cars at his father's General Motors dealership here at age 12, changed oil in high school and sold his first Pontiac during college.

His commitment to a famed American industry, part business and part romance, never waned. He took over his family's two dealerships, building a small fortune. In turn, he showered generosity on local churches, school athletic teams, charity golf tournaments and a group that helps women find jobs out of prison.

But suddenly, Thomas' success seems to be melting away.

Days go by without a sale. His debts are mounting. His friends offer him cash to get by. "I'm trying to survive as a car dealer," said Thomas, now 59, "and I don't know if I can." ]]> http://www.kentucky.com/783/story/610728.html http://www.kentucky.com/783/story/610728.html Sun, 30 Nov 2008 02:55 EST
NEW YORK . One notable batch of letters this year is being sent not by kids to Santa but by parents to real-world toy makers. The message: Please, in these days of economic angst, cut back on marketing your products directly to our children.

The letter-writing initiative was launched by the Boston-based Campaign for a Commercial-Free Childhood, which says roughly 1,400 of its supporters have contacted 24 leading toy companies and retailers to express concern about ads aimed at kids.

"Unfortunately, I will not be able to purchase many of the toys that my sons have asked for," wrote Todd Helmkamp of Hudson, Ind. "You are placing parents like me in the unenviable position of having to tell our children that we can't afford the toys you promote."

The Toy Industry Association has responded, asserting that children "are a vital part of the gift selection process." ]]> http://www.kentucky.com/783/story/608279.html http://www.kentucky.com/783/story/608279.html Fri, 28 Nov 2008 02:48 EST
WASHINGTON . The full scope of the housing meltdown isn't clear and already there are ominous signs of a new crisis, one that could turn out the lights on malls, hotels and storefronts nationwide.

Even as the holiday shopping season begins in full swing, the same events poisoning the housing market are now at work on commercial properties, and the bad news is trickling in. Malls from Michigan to Georgia are entering foreclosure.

Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default on their mortgages.

That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings Ltd., which evaluates companies' credit. ]]> http://www.kentucky.com/783/story/608278.html http://www.kentucky.com/783/story/608278.html Fri, 28 Nov 2008 02:48 EST
CHICAGO . The line for a Thanksgiving meal was long when the Chicago Christian Industrial League shelter opened Thursday morning, and volunteers served more than 200 people in the first 40 minutes . record demand for the shelter.

Among the hungry were people who had helped provide Thanksgiving meals in the past, executive director Mary Shaver aid.

"These are the people who are always giving money . and now they're asking for help," Shaver said.

Food banks and shelters across the country are struggling to cope with a spike in demand for their services. With more people feeling the weight of the economic downturn, those who oversee the charities say they are seeing many new faces on food lines. ]]> http://www.kentucky.com/783/story/607541.html http://www.kentucky.com/783/story/607541.html Thu, 27 Nov 2008 02:42 EST
Thompson . Riley is leaving East Main Street, and owner Jamie Bates says the future of the 44-year-old auction company is uncertain because of the recession.

Bates says he expects to hold his last auction at 710 East Main at 10 a.m. Friday.

After the sale, leftover items will be placed in storage and the auction house will be closed, he said Wednesday.

Thompson . Riley will move to a temporary office. The firm expects to hold only a limited number of auctions at undetermined locations in December, January and February . the "slowest time" of the year for auction companies, Bates said. ]]> http://www.kentucky.com/783/story/606038.html http://www.kentucky.com/783/story/606038.html Wed, 26 Nov 2008 08:03 EST
WASHINGTON . The Federal Reserve and the Treasury announced $800 billion in new lending programs on Tuesday, sending a message that they would print as much money as needed to revive the nation's crippled banking system.

The gargantuan efforts . one to finance loans for consumers, and a bigger one to push down home mortgage rates . were the latest but probably not the last of the federal government's initiatives to absorb the shocks that began with losses on subprime mortgages and have spread to every corner of the economy.

In the last year, the government has assumed $7.4 trillion in direct and indirect financial obligations. That is equal to about half the size of the nation's entire economy and far eclipses the $700 billion that Congress authorized for the Treasury's financial rescue plan.

Those obligations include $1.5 trillion already committed to loans, capital infusions to banks and the rescues of firms such as Bear Stearns and the American International Group, the failed insurance conglomerate. But they also include additional trillions in government guarantees on mortgages, bank deposits, commercial loans and money market funds. ]]> http://www.kentucky.com/783/story/606037.html http://www.kentucky.com/783/story/606037.html Wed, 26 Nov 2008 02:46 EST
WASHINGTON . Since the U.S. economy went into freefall in September, the federal government has announced hundreds of billions of dollars in bailouts and economic stimulus packages in attempts to shore up banks and reignite the economy.

The latest astronomical figure is an $800 billion, in a package announced Tuesday by the Federal Reserve and the Treasury Department. Many are wondering, however, how long this spending can go on. Here are a few answers:

Q: Where does the money come from?

A: The bulk of the cash has been put up by lenders buying U.S. Treasury Department securities such as bonds, notes and short-term bills. ]]> http://www.kentucky.com/783/story/606013.html http://www.kentucky.com/783/story/606013.html Wed, 26 Nov 2008 02:46 EST
NEW YORK . The Federal Deposit Insurance Corp. said Tuesday the list of banks it considers to be in trouble shot up nearly 50 percent to 171 during the third quarter . yet another sign of escalating problems among the institutions controlling Americans' deposits.

The 171 banks on the FDIC's "problem list" encompass only about 2 percent of the nearly 8,500 FDIC-insured institutions. Still, the increase from 117 in the second quarter is sharp, and the current tally is the highest since late 1995.

"We've had profound problems in our financial markets that are taking a rising toll on the real economy," said FDIC Chairman Sheila Bair in a statement, adding that Tuesday's report "reflects these challenges."

Banks across the country have been hurt . and in some cases, devastated . by the collapse of the subprime mortgage market and subsequent problems across the lending spectrum. As the FDIC report shows, the number of hobbled institutions is rising at a quickening pace, a trend that has already begun to reshape the banking industry. ]]> http://www.kentucky.com/783/story/603598.html http://www.kentucky.com/783/story/603598.html Tue, 25 Nov 2008 14:53 EST
NEW YORK . Cash or credit? For more Americans, who have already maxed out their credit cards or are just trying to manage their spending better in the tough economy, the answer is increasingly the old-fashioned one.

Retailers such as Wal-Mart Stores Inc., Target Corp. and JCPenney Co. are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time.

The shift cools Americans' long love affair with credit cards. And it is one of the changes in consumer behavior that has emerged since the financial meltdown that could depress consumer spending this holiday season and affect shoppers' habits long afterward.

Particularly during holiday seasons past, shoppers could count on a pile of plastic to give them the extra financing needed to splurge on presents before they had to face the bills in January or later. ]]> http://www.kentucky.com/783/story/603597.html http://www.kentucky.com/783/story/603597.html Mon, 24 Nov 2008 07:21 EST
WASHINGTON . The government unveiled a bold plan Sunday to rescue troubled Citigroup, including taking a $20 billion stake in the firm as well as guaranteeing hundreds of billions of dollars in risky assets.

The action, announced jointly by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already crippled financial system and the U.S. economy.

The sweeping plan is geared to stemming a crisis of confidence in the company, whose stock has been hammered in the past week on worries about its financial health.

"With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy," the three agencies said in a statement Sunday night. ]]> http://www.kentucky.com/783/story/602767.html http://www.kentucky.com/783/story/602767.html Sun, 23 Nov 2008 03:10 EST
FENNVILLE, Mich. . The bad news keeps coming to Michigan, a state long stuck in recession and at ground zero in the national economic downturn. But unlike in months and years past, there are no exceptions to the despair, not even here among the bucolic resort communities along Lake Michigan.

The flailing auto industry is important here, but so is furniture-building, tourism, the retail trade and construction . pieces of the economy long buffered from the downturn in Detroit. Now waves of layoffs are sweeping towns around the state, swelling the ranks of the unemployed just as tens of thousands of those already out of work fear running out of unemployment benefits.

"You just sit and you worry," said Pat Weber, a construction administrator who was laid off more than a year ago. "In the last year, I've put in for more than 100 jobs. I stopped counting after 110."

All around Fennville and its neighbors in southwest Michigan, front lawns are peppered with for-sale signs and merchants complain about slow days. But while this remains a beautiful place with none of the obvious blight of Detroit, residents say the hardship beneath the surface is very real. ]]>