Brother Can You Spare A Job

You know times are tough when you're utilizing the payday loan shark (I mean shop) next to your neighborhood liquor store. You know times are really, really tough when the payday loan shops go out of business due to a lack of paydays.

Unemployment numbers were released today and they showed that the U.S. economy shed 240,000 jobs (soon to be revised to 400,000 I'm sure) in the month of October. In addition, September's total of 159,000 jobs lost was revised to 284,000 and August was revised from 73,000 to 127,000. The U.S. economy has now lost 1.2 million jobs since the beginning of the year, and it's accelerating. Unemployment now stands at 6.5%, the highest level since 1994.

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General Motors and Ford reported earnings (err, losses) today. Ford reported a Q3 operating loss of $2.98 billion and burned through $7.7 billion in cash reserves. Not to be outdone, GM reported an operating loss $4.2 billion and burned through $6.9 billion for the quarter.

When asked about the possibility of bankruptcy, GM CEO Rick Wagoner said, "We have no plans whatsoever to consider anything other than continue to run the business."

Oh, really? "Run the business"? That, and seek a lifeline from Washington. He forgot to mention that. Without a bailout, General Motors will be bankrupt before the end of 2009.

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Two more banks went tits up today, bringing the total to 19. Regulators siezed Franklin Bank of Houston and Security Pacific Bank of California, with a combined total $5.7 billion in assets.

Welcome aboard the FAILboat.