NYSE Gets Be-Glitched; Jobless Benefits Rise, But Nothing to Worry About. Yet; IMF Blames US Over World’s Slow Growth

Not such a NYSE day…

Image courtesy of  cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

Move over Greece and figure it out already. The outage glitch at the New York Stock Exchange (NYSE) is now taking center stage. The trouble is believed to have started Tuesday night when an upgrade was in progress. Problem is, by 7:00 am the next morning the issues seem to have not been resolved and traders were having difficulty connecting. At 11:00 am a warning was issued that the tech problems were being investigated. But, by 11:32 am, NYSE figured it would be a good time to halt trading. Good thing trading was able to shift seamlessly to other exchanges, as the US enjoys a system where there’s a lot of overlap in its financial markets. (Take that IMF: see below). As for NYSE, trading transferred to a back-up unit in New Jersey. So don’t bother making fun of anybody from there for a really long time. However, it still didn’t go unnoticed that it was the biggest outage in two years, that happened to coincide with technical glitches by United Airlines and the Wall Street Journal. Some suspect that it was no coincidence that all three of those systems experienced glitches. Even FBI Director James Comey said, “We’re not big believers in coincidence either. We want to dig into that part.” Although, at this point in time there’s no way to know what caused the glitches and if they’re at all related.

Speaking of glitches…

Image courtesy of xedos4/FreeDigitalPhotos.net

Image courtesy of xedos4/FreeDigitalPhotos.net

Well it’s not really a glitch…maybe just a hiccup – a summer hiccup.  The Labor Department released its numbers and well, it’s sort of a bummer. Turns out that applications for jobless benefits rose this week by 15,000 applicants to a total of 297,000 people. That is the highest number it’s been since February, when that awful figure hit a very unpleasant 327,000. However, there is a silver lining here, I kid you not. Most of those applications came from Michigan and Ohio and are likely due to auto-plant shutdowns who are in the midst of retooling its models for the next year. At least that’s what the experts think and well, they’re probably right. Anyways, it’s a lot more reassuring than any other reason experts can think of. As it stands, 2.33 million people are receiving jobless benefits (I’m pretty sure there’s an oxymoron somewhere in there), and while that figure may seem rather high, it is still 10% less than last year at this time. Besides, last week unemployment hit a seven year low and the number of folks applying for jobless benefits on a weekly basis has remained under 300.000 for over four months. All the more reason to breathe a sigh of relief. Sort of.

Blame it on the United States, why don’t you…

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Maybe they’re just bitter because the American Women’s Soccer team won the World Cup Finals, but according to the International Monetary Fund, the United States is to blame because the rest of he world is experiencing slow growth. The IMF is predicting that the world’s growth will grow at a pace of 3.3%, .2% less than what it predicted back in April. And that, my friends, is what you call a downgrade. That is apparently the slowest growth pace since 2009, when there was a recession in effect and the economy didn’t grow but, in fact, shrank. Because the United States economy is apparently the biggest one in the world, and because we had a particularly frightful winter, fiscally speaking, the economy shrank .2% between January and March. When the the U.S economy shrinks, it drags down the rest of the world. So they say. Meanwhile, Greece’s inability to balance its books has been dominating financial news, yet its troubles are predicted to have a limited impact on the rest of the world. Even China, which happens to have a gargantuan economy, is walking away unscathed despite the fact that its stock market plunged. According to Mr. pish-posh IMF research chief Olivier Blanchard, “We don’t see it as a major macroeconomic issue.” Whatever.

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Is a Fiscal Greek Tragedy Looming?; American Apparel’s Un-Trendy Legal Woes; Curing the Black Friday Blues

What would Socrates say?

Image courtesy of koratmember/FreeDigitalPhotos.net

Image courtesy of koratmember/FreeDigitalPhotos.net

The Greeks let its creditors know exactly how they feel about their austerity measures and voted resoundingly against them. But at least Greece’s Foreign Minister, Yanis Varoufakis, resigned announcing via his blog “Minister No More,” much to the delight and merriment of many a Eurozone finance minister. This resignation has even got some folks mildly optimistic that the financial crisis in Greece isn’t completely unsalvageable. But these very same finance ministers are all still in a tailspin about how to avoid a fiscal disaster as Greece already defaulted on a 1.5 billion euro payment to the International Monetary Fund while another payment is due to the European Central Bank for 3.5 billion euros on July 20. If a sovereign, in this case Greece, defaults on its loans, well then, bad things will just get worse as the banks become insolvent – as in, tapped out, dry etc – and then get nationalized. Once they get nationalized a brand new currency is introduced – a change which would be very bad for so many reasons. As for those Greek banks which are staring down the wrong end of nationalization and insolvency, they’re likely to run out of cash by the weekend.  In case you haven’t noticed, Greece’s fiscal turmoil has been causing even more turmoil in the global markets. So yeah, it’s in everybody’s best interest that Greece gets its fiscal act up and economically running.

Clearance…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Things are looking pretty ugly for embattled clothing retailer American Apparel. The company has a $30 million cost-cutting plan in the works and that could mean an under-performing American Apparel store near you might be closing its doors forever.  The chain has 239 stores and 10,000 employees whose heads are currently on the chopping block. American Apparel is also undergoing an image makeover after ousting founder and CEO Dov Charney. New CEO Paula Schneider would like to see the company sell actual clothes, as opposed to body parts. Sounds fair. This $30 million plan will hopefully rectify some of the other problems afflicting the clothing line and reverse those “steep losses.” However, many think it’s going to take a lot more cash than that. Some of that might have to do with the over 20 lawsuits looming courtesy of the booted Dov Charney and his associates. Of course, the brass at American Apparel has called the lawsuits “meritless.” The stock, which is down over 55% for the year and is currently hovering at a dismal 45 cents per share, has a market value of about $90 million. That’s a far cry from its $540 million market value it enjoyed just five years ago.

Prime deal…

Image courtesy of Iamnee/FreeDigitalPhotos.net

Image courtesy of Iamnee/FreeDigitalPhotos.net

If you are eagerly pining away for the chaos that comes with Black Friday that is still an endless five months away, then you’re gong to love this next one. Amazon is throwing its very own birthday party on July 15, dubbed “Prime Day,” and has invited you to come. Amazon wants presents. It wants you to spend your hard-earned money on deals that will be featured on Amazon – deals that you usually only see on Black Friday, and as the case may be, cyber-Monday. And while you don’t necessarily need to rsvp, you won’t walk away with any ridiculously-reduced items unless you subscribe to Amazon Prime – which by the way, will set you back $99 a year. But hey, at least you’ll get instant video streaming, free two-day shipping, Prime music and maybe even some really great bargains.

Guess it’s Not Payback Time for Greece; Brit Wants to Save the Fiscal Day for Greece; diSinging the JetBlue-s for Baggage Fees;

Greece frightening…

Image courtesy of africa/FreeDigitalphotos.net

Image courtesy of africa/FreeDigitalphotos.net

Will the third time be a charm? Fiscally-challenged Greece has asked for yet another bailout, this time to the tune of $27 billion. Greek Finance Minister Yanis Varoufakis has indicated that repayment for $1.8 billion of a $270 billion tab is not gonna happen, much to the dissatisfaction of the International Monetary Fund, the European Central Bank and the European Commission who all ponied up the cash for the cash-strapped European nation. In fact, Greece isn’t even getting the customary 30 day grace period. There are those in Greece who weren’t down with suggestions made by its creditors who called for “austere” measures and a more stringent repayment schedule. Lucky for Greece, however, the country is still not expected to officially go bankrupt. Phew. There’s also that other payment due July 20 in the not-so-small amount of $3.9 billion. That’s probably not going anywhere either. As for Alexis Tsipras and his July 5 referendum, he subtlety indicated that he’ll bow out – as in, resign – should the Greek people decide to vote in favor of the measures, for which he does not care. What a guy.

Oh and one more thing…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

If you’re heart goes out to Greece and you feel the need to help the country in its loan repayment – because you don’t know how else to spend your disposable income – then you’re in a luck. A British man found a way for you to throw out your hard-earned money by donating to a fund that would “help” mitigate the European nation’s fiscal woes. Out of the goodness of his heart, or maybe because it seemed funny at the time, Thom Feeney established an Indiegogo account to help raise 1.6 bullion euros. He reasoned that if every European chipped in three euros, then the people will have sorted out this mess instead of leaving it to those pesky “European ministers flexing their muscles.” Laugh all you want but Feeney has so far raised over 250,000 euros from over 16,000 contributors.

And then there was one…

Image courtesy of phasinphoto/FreeDigitalPhotos.net

Image courtesy of phasinphoto/FreeDigitalPhotos.net

Just when you thought JetBlue really was different than all the others, the airline with a relatively decent customer satisfaction rating went ahead and broke our consumer hearts by announcing that, it too, would start charging to check bags. This leaves Southwest Airlines as the only airline who has not jumped on the baggage fee bandwagon. Well, at least not yet. Beginning today, if you book a ticket with JetBlue, and it happens to be the cheapest ticket, expect to pay a $20 fee for that first checked bag. If you aren’t a light packer and find yourself needing to check an additional bag, expect the price to go up to $35. If you have more than that, well, maybe you should reconsider air travel. In any case, that $20 fee is only for those checking their bags online or through a kiosk. Once you decide to check that bag at  a counter via an actual living and breathing human being, watch the price go up by $5. If you’re fotunate enough not to have to book the lowest tier ticket, then congrats. You can continue to get that first checked bag on the house – or rather, aircraft.