Top executives at Goldman Sachs will receive no cash bonuses this year.

Andrew Torgan
CNN Financial News Producer

Foreclosure filings fell by 8% in November, making it the fourth consecutive month of improvement in the housing market.

There were 306,627 filings last month, according to RealtyTrac, an online marketer of foreclosed properties. That decline follows a 3% drop in October, 4% in September and 1% in August.

However, while there are signs of improvement, the industry has yet to turn around: Foreclosure filings were still a lofty 18% above November 2008's levels.

Household net worth in the United States rose for the second quarter in a row, growing 5% to an estimated $53.4 trillion in the third quarter, according to the Federal Reserve.

The $2.7 trillion rebound in net worth, which is the difference between a household's assets and liabilities, comes as stock prices have rallied this year, boosting the value of Americans' investment portfolios.

Stock holdings rose by nearly 17% to $7.4 trillion, according to the central bank's quarterly flow of funds report.

Net worth was also supported by improvements in the housing market. Real estate values increased by 2% to $16.5 trillion in the third quarter, after rising in the second quarter for the first time since late 2006.

On the jobs front, the number of Americans filing initial claims for unemployment insurance jumped unexpectedly by 17,000 to 474,000 in the week ended Dec. 5 - the first increase in five weeks.

But the numbers are a little inflated, because state offices were closed for thanksgiving two weeks ago, delaying some claims.

And the number of people who continue to receive benefits for one week or more dropped by 303,000 to 5,157,000.

Speaking of jobs, are you out of work and looking for a new profession? You might want to consider becoming a computer systems designer or home health care aid.

Even with unemployment at 10%, some industries like professional service and health care will grow in the years ahead, according to a report from the Labor Dept.’s Bureau of Labor Statistics.

Professional and business services and health care and social assistance are expected to have the largest employment growth from 2008 to 2018, the Labor Dept. said.

Professional and business services will add 4.2 million jobs over that 10-year period while health care will increase its employment by 4 million.

Within professional and business services, consulting, computer systems design and employment services will have the most growth.

In the health care and social assistance industry, the top gainers are home health care, services for the elderly and those with disabilities, nursing care facilities and employment in offices of physicians.

Top executives at Goldman Sachs will receive no cash bonuses this year. Instead, the 30 members of Goldman’s management committee will be paid in a special form of company stock that would be subject to certain restrictions, the company says.

The changes, which will impact CEO Lloyd Blankfein among others, are part of a larger plan to revamp the company's compensation practices which was announced last spring.

Goldman Sachs, which has come under fire in recent months amid speculation that it’s on track to pay some of its biggest bonuses since the financial crisis erupted, also says it will give stockholders a “say on pay” vote for top executives at next year's shareholder meeting.

And Citigroup is reportedly working to reach an agreement with federal officials to return a portion of its bailout funds, which would free the company from the government's most restrictive limits on executive pay.

Citigroup, which received $45 billion in taxpayer funds, will seek to repay $20 billion raised at least in part through a stock offering, according to various reports.

This follows news yesterday that Bank of America has cut a check to the government for the $45 billon in bailout money it received from the TARP.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

Despite recent, encouraging signs of life in the battered housing market, here’s a sobering reminder of just how much damage has been done: American homeowners will have lost nearly $500 billion in home value by year's end.

Still, that's a huge improvement over 2008, when values fell by a mind-boggling $3.6 trillion, according to a report released today by real estate Website Zillow.com.

The Los Angeles market suffered the largest total loss in home value at $60.8 billion. Metro Chicago values fell $49.6 billion and New York dropped $49 billion.

But some housing markets actually recorded gains for the year. In the Boston metropolitan area, home values increased by an average of 1.5%, lifting total market value by $23.3 billion there. Nearby Providence, RI, gained $12.4 billion; and Denver increased $10.7 billion.

Treasury Secretary Tim Geithner says the controversial $700 billion federal bailout program will be extended through Oct. 3, 2010.

The Troubled Asset Relief Program, or TARP, will be scaled back and spending limited to newer programs aimed at stopping foreclosures, making loans to small businesses and propping up the credit markets to make loans more available.

“History suggests that exiting prematurely from policies designed to contain a financial crisis can significantly prolong an economic downturn,” Geithner wrote in a letter to congressional leaders. “We must not waver in our resolve to ensure the stability of the financial system and to support the nascent recovery that the administration and the Congress have worked so hard to achieve.”

Under the TARP law, the bailout program would have expired at the end of December if Geithner had not decided to extend it.

Geithner said that in the end he does not expect to spend more than $550 billion and that $175 billion will be repaid by the end of 2010.

That was followed by word that the billions of dollars in bailout money received by Bank of America over the past year is now officially back in government hands.

Just a week after announcing plans to repay $45 billion in taxpayer bailout money, the nation's largest lender says it has cut a check to the government for the full amount.

As a result of the announcement, however, Bank of America will no longer be beholden to government demands that have been imposed on the company over the past year, including caps on pay for its top executives.

Along those lines, President Obama will meet with the chief executives of several big banks next week, in an effort to help spur greater lending to consumers and small businesses, two senior White House officials tell CNN.

The president is also expected to discuss the sweeping financial regulatory reform package that the administration is currently trying to push through Congress during Monday's scheduled meeting.

Officials said that the list of attendees has not yet been finalized, but that it is likely that executives from some of the nation's biggest banks will be present.

The extent to which banks have been willing to lend has remained a focal point for Washington, after the U.S. government pumped billions into the banking sector over the past year in an effort to get the economy back on track.

Consumers and small businesses in particular contend that loans are still tough to come by. But many banks maintain that they are lending, even as the appetite for new loans has dropped off.

Finally, what was arguably one of the most-disastrous corporate marriages of all time draws to a close today as AOL and Time Warner have officially called it quits.

The two announced their intention to merge back in 2000, creating what one analyst referred to as “an unprecedented powerhouse” with dominating positions in the music, publishing, news, entertainment, cable and Internet industries.

At the time, AOL was an Internet giant was worth more than $100 billion and a stock price topping $100 per share.

Today, the company is worth just a little more than $3 billion and its shares will start trading in the $25 range Thursday morning.

Follow the money… on Twitter: @AndrewTorganCNN

Speeders doing more than 85mph in Georgia will soon pay an additional $200 in fines.

Andrew Torgan
CNN Financial News Producer

Today we received the best news on the jobs front that we’ve had in about two years.

The job market showed signs of stabilizing in November as employers trimmed the fewest jobs of any month since the start of the recession, and the unemployment rate posted the biggest one-month decline in more than three years.

Still, today’s number brings job losses since the start of 2008 to 7.2 million. Additionally, 15.4 million Americans are now unemployed and seeking work. Another 6 million want jobs, but are not counted as part of the labor force because they have stopped looking.

As for the specifics, employers cut 11,000 jobs last month, far below any of the job losses posted over the last 23 months. Economists surveyed by Briefing.com had forecast a loss of 125,000 jobs in November. And the unemployment rate improved to 10% in the month. The forecast was that it would remain at October’s 10.2% level - a 26-year high.

Job losses in the construction, manufacturing and information industries were offset by job gains in temporary help services and health care.

The report comes the day after the Obama administration held a jobs summit at the White House, where business leaders and economists discussed what could be done to spur job creation.

Today, the president begins a multi-city tour in Schnecksville, PA, focusing on jobs and the economy.

Still, the picture for jobseekers remains grim, with 10% unemployment and six workers competing for every job vacancy.

Plus it’s the holiday season - but if you’re putting your job hunt on the back burner until after New Year's, that could be a big mistake.

Some hiring managers say December could actually be the best time to reinvigorate your hunt.

Each industry has its own busy hiring times and business cycles, but certain times of year are particularly good for job hunting in every field, and right now is one of them.

“There is a certain pattern to when companies hire in general,” said Rob Saam, a senior vice president at outplacement firm Lee Hecht Harrison. “There is more hiring in January than December, but the thing about a job search is that it's a process so you should start looking before that,” he said.

While job seekers typically believe that there's no sense in sending out résumés over the holidays when many people are on vacation, that may actually be the very best time to put yourself out there.

Shifting gears to the auto industry, there’s been another management shake-up at General Motors.

Acting CEO Ed Whitacre pulled long-time auto executive Bob Lutz out of his role as head of marketing, putting him in a new role as an advisor on global design and product development. Lutz retains his title as vice chairmen.

GM also named Mark Reuss president of GM North America. Reuss had been head of GM's Holden division in Australia before briefly taking the role of vice president of engineering.

"I want to give people more responsibility and authority deeper in the organization and then hold them accountable," Whitacre said in a statement.

On Tuesday, Whitacre announced he was taking over as acting chief executive following the resignation of Fritz Henderson. Henderson had led GM through bankruptcy and in the months following after taking over for Rick Wagoner, who resigned back in March as part of a government bailout of GM.

Whitacre, an executive who formerly ran AT&T, was named chairman of a new, more independent GM board as part of that bailout.

Finally, speeders doing more than 85mph in Georgia will soon pay an additional $200 in fines. Racehorse owners in New York now must fork over $10 to enter their steeds in events. And Massachusetts started charging a 5% tax on broadcast satellite service.

These measures are part of a record $23.9 billion in tax and fee hikes and $7.7 billion in other revenue increases enacted by states in fiscal 2010, according to a report released this week. This is a massive jump over the $8.1 billion in revenue hikes instituted the previous year.

Some 29 states enacted revenue hikes for fiscal 2010, which began on July 1 in nearly all states. Personal income tax hikes accounted for the largest portion, some $10.7 billion. Corporate levies declined by $202.2 million.

Follow the money… on Twitter: @AndrewTorganCNN

Bank of America said late Wednesday it planned to return the entire $45 billion in bailout money it received from the government over the past year.

Andrew Torgan
CNN Financial News Producer

President Obama called on business leaders this afternoon to help his administration kick-start hiring as policymakers contend with rising unemployment that’s weighing down the economy.

Some 130 executives, economists, small business owners and non-profit officials are gathering for the jobs summit at the White House on the eve of the government's November unemployment report. The nation is expected to have lost another 114,000 jobs, with unemployment remaining at 10.2%, the highest in 26 years, according to an economists' survey.

"I'm not interested in taking a wait and see approach when it comes to creating jobs," Obama said.

The employment picture is certainly grim. Nearly 16 million Americans are out of work, one-third of whom have been unemployed for more than six months. There are now six workers competing for every job vacancy.

The jobs picture remains front and center amid the deluge of both private and government reports this week.

This morning, the Labor Dept. says first-time claims for unemployment benefits fell unexpectedly last week by 5,000 to 457,000 - a near 15-month low.

That's the lowest level since the week ended Sept. 6, 2008, but part of decline is being attributed to government offices being closed for Thanksgiving.

In addition, continuing claims edged up by 28,000 to 5.5 million.

Meanwhile, people who are employed are working even harder.

Worker productivity increased more than 8% the third quarter. That’s the largest amount in six years. Aggressive cost cutting by businesses has pushed productivity sharply higher over the past months.

Unit labor costs, a gauge of inflation and profit pressures closely watched by the Federal Reserve, fell 2.5%. While that does signal inflation is under control, it also means workers are feeling a tight squeeze on their wages.

Elsewhere in Washington, Fed Chairman Ben Bernanke got a rough going over from both his supporters and detractors at his Senate confirmation hearing today.

Even those who praised his actions during the financial troubles of the last two years, such as Senate Banking Committee Chairman Chris Dodd, balanced that support with arguments that the central bank should be stripped of some of its bank regulation powers due to its past failures of oversight.

While many Democrats on the banking panel joined Dodd in saying they would vote for another four-year term for Bernanke, some of the Republicans questioned whether they could support the chairman who was first appointed by President George W. Bush.

One long-time Bernanke critic, Jim Bunning (R-KY), said he was ready to do everything he could to block or delay the confirmation, joining a similar threat made late Wednesday by Sen. Bernie Sanders (I-VT), who is among the 60 members of the Democratic caucus.

The threat of a filibuster by Sanders and Bunning, two lawmakers with diametrically opposed views on most issues, shows the breadth of anger faced by Bernanke sparked by the Wall Street bailouts. A filibuster would mean that Bernanke would need to get at least 60 votes, rather than the simple majority of 51, in order to be confirmed.

Turning to news making waves on Wall Street, Bank of America said late Wednesday it planned to return the entire $45 billion in bailout money it received from the government over the past year.

The move would allow Bank of America, the nation's largest lender, to break free from a variety of government restrictions it has had to abide by, including pay caps for its top executives.

It could also smooth what has been a difficult search for a new chief executive.

Outgoing CEO Ken Lewis is scheduled to depart by year end. Bank of America's board of directors originally hoped to select a successor by Thanksgiving.

And General Electric and Comcast announced a joint venture this morning worth a combined $37.25 billion that will give the cable company eventual control of NBC Universal.

In the complex deal, NBC Universal will borrow $9.1 billion from third-party lenders to distribute to parent company General Electric. GE will use that money to buy Vivendi SA's 20% stake in NBCU for $5.8 billion, clearing a major hurdle in the company's path to sell control of the entertainment giant to Comcast.

Comcast will pay GE $6.5 billion in cash for the conglomerate's media unit and will contribute programming and other businesses valued at $7.25 billion, including E!, the Style Network and several cable sports stations. The sale values NBC Universal at $30 billion.

Comcast will take a controlling 51% stake in the joint venture, and GE will control 49%.

Follow the money… on Twitter: @AndrewTorganCNN

Gold prices fell about 5% on Friday when a state-run investment company of Dubai requested a postponement of $60 billion in debt

Andrew Torgan
CNN Financial News Producer

Gold crossed $1,200 an ounce today and closed at a record high as the weakness of the U.S. dollar and the easing of fears surrounding the Dubai debt crisis pushed prices higher.

Gold futures touched an intraday high of $1,202.70 an ounce before backing off and settling up $18 to $1,119.10.

Gold prices had fallen about 5% on Friday on continued concerns about the state-run investment company of Dubai requesting a postponement of $60 billion in debt.

But on earlier today, reports said Dubai World was in talks over $26 billion of its debt, easing worries it would default on the total balance. That relief translated into a blow for the dollar, as increased risk appetite pushed the greenback lower.

A weaker dollar tends to boost gold, as it and other commodities are priced in dollars around the world.

The number of home sales contracts signed rose for the ninth straight month in October.

The National Association of Realtors says its index of pending home sales rose a seasonally adjusted 3.7% in October from September. The index is also up nearly 32% compared with last October.

Although these are not closed sales, and some deals can fall through, signed contracts are a good indicator of where the housing market is headed.

The NAR once again gave much of the credit for the increase in sales to the $8,000 first-time homebuyer tax credit that was set to expire at the end of November. That credit has since been extended by Congress until the end of April and expanded to make other buyers eligible.

Bailed out insurance giant AIG says it has completed a deal wiping out $25 billion of its debt to U.S. taxpayers by selling stakes in two subsidiaries to the Federal Reserve Bank of New York.

AIG gave the New York Fed preferred shares of two of its international life insurance companies, including $16 billion of American International Assurance Co. and $9 billion of American Life Insurance Co. The deal was originally announced in March.

The deal brings the company’s debt to the New York Fed down to $17 billion. AIG also still owes the U.S. Treasury $44.8 billion from a separate TARP loan, so the insurer still owes taxpayers just under $62 billion.

Follow the money… on Twitter: @AndrewTorganCNN

The NRF estimates that 96.5 million Americans plan to shop on Cyber Monday this year, up from 85 million in 2008.

Andrew Torgan
CNN Financial News Producer

We shopped but we didn’t drop - a lot of money anyway...

More Americans turned out to bag Thanksgiving weekend deals this year than last year, according to the National Retail Federation, but shoppers on average spent less on their purchases compared to a year ago.

Average spending over the weekend dropped to $343.31 per person from $372.57 a year ago. Total retail spending for the holiday weekend was about $41.2 billion, the NRF said, up marginally from $41 billion last year.

Now it’s all about today - Cyber Monday - the online retail world's version of Black Friday. Millions of people are expected to take some time at work today and surf the Web in search of bargains.

The NRF estimates that 96.5 million Americans plan to shop on Cyber Monday this year, up from 85 million in 2008.

And despite the hype associated with Cyber Monday, industry experts say the busiest online shopping day tends to be in December, and is the last day that gifts can be shipped to guarantee deliver by Christmas Day.

Struggling to stem the swelling foreclosure tide, the White House today announced new steps to pressure banks to help homeowners over the long term.

The Obama Administration says it will require top loan servicers to report their plan to reach a decision on each loan for which they have all the needed documentation. Also, these servicers must explain to the Treasury Dept. how they will communicate their decisions to borrowers.

Servicers will also be required to report the status of each modification. Those failing to meet their obligations could face penalties and sanctions.

To help borrowers through the process, the administration is providing more information on the documents they need to submit to be considered for a permanent modification. Federal, state and local officials will increase outreach to delinquent homeowners.

The administration's move is its latest attempt to jumpstart its $75 billion loan modification plan, which many fear will fall far short of its goal to help up to 4 million delinquent homeowners.

Help is on the way for some credit card customers as well.

Most credit card agreements are as big as a small book and are loaded with lots of legal jargon. Now, the nation's biggest bank is trying to make things a little simpler.

Bank of America is launching its “credit card clarity” campaign. Beginning tomorrow, it will start sending out 1-page summaries to its 40 million customers.

The summaries will include:

1) Interest rates you pay for purchases, balance transfers, cash advances.

2) Payment info to keep account in good standing.

3) All of the fees you're likely to pay - annual, transaction & late fees.

There's been much confusion and a healthy dose of outrage regarding some credit card companies that hit consumers with exorbitant late fees. Many are making many changes now before new legal reforms take effect that will restrict their ability to do so and have cut credit limits and raised interest rates and fees.

Now, however, some institutions like Bank of America are trying to make consumer-friendly changes ahead of the new laws that go into effect in February.

Follow the money… on http://twitter.com/AndrewTorganCNN

Federal regulators announced the recall of 110,000 Toyota pickup trucks in 20 U.S. states and the District of Columbia.

Andrew Torgan
CNN Financial News Producer

Wave after wave of economic data washed ashore this morning as the government compresses its weekly calendar ahead of the Thanksgiving holiday.

First up, the number of first-time claims for unemployment insurance fell by 35,000 to 466,000 last week, the lowest level in 14 months.

Continuing claims also fell sharply - by 190,000 to 5.42 million – to the lowest level since February.

Keep in mind though that many analysts cautioned against reading too much into the sharp drop in claims, noting that part of the improvement was due to large seasonal adjustment factors which smooth out changes that occur at certain times of the year.

Consumers got back in the buying mood in October as their incomes grew modestly.

The Commerce Dept. says consumer spending rose 0.7% last month, following a pullback in September when spending plunged by 0.6%. That was the best showing since a 1.3% jump in August when the government's “Cash for Clunkers” boosted car sales.

Incomes, meanwhile, rose 0.2% for the second straight month.

But orders for big-ticket manufactured items fell unexpectedly in October as the economy struggles to get back to full health.

The Commerce Dept. says durable goods orders dropped 0.6% last month, following a 2% gain in September. It marked the first decline since August.

And new home sales spiked in October, one month after declining unexpectedly.

The Commerce Dept. said new home sales rose 6.2% last month to a seasonally adjusted annual rate of 430,000 - far surpassing expectations. It was the sixth time new home sales had risen in the past seven months.

New houses sold in October for a median price of $212,200 and an average price of $261,100. There were 239,000 new homes on the market at the end of the month, a 6.7 month supply at the current sales rate.

That follows a report out Monday showing existing home sales surged more than 10% in October to the highest level in more than 2-1/2 years.

Trouble for Toyota… the Japanese car and truck giant announced today that it will fix gas pedals in at least 4 million cars for an accelerator problem that had previously been blamed on floor mats.

Toyota said that “the shape of the accelerator pedal will be reconfigured to address the risk of floor mat entrapment.” The company said that the floor of the vehicles will also be reconfigured.

And on Tuesday, Federal regulators announced the recall of 110,000 Toyota pickup trucks in 20 U.S. states and the District of Columbia.

The National Highway Traffic Safety Administration said that road salts can cause “excessive corrosion” of the Tundra's frame, which holds a spare tire mounted underneath the vehicle. NHTSA said dislodged spare tires can cause hazards for other vehicles on the road.

The corrosion can also damage the rear brake lines and lead to brake system failures, the NHTSA said.

After balking at government imposed pay restrictions, AIG chief executive Robert Benmosche has officially agreed to a non-compete contract that could total $10.5 million, the company announced Tuesday.

Benmosche, who was named CEO in August, had expressed frustration with the constraints placed on AIG by the government after the insurance giant was bailed out last year to the tune of $182 billion.

He reportedly threatened to quit his post in board meetings earlier this month, before issuing a statement saying he is “totally committed” to staying on as CEO.

Benmosche is one of several high-level executives at seven private companies under the purview of the Obama administration's "pay czar" Kenneth Feinberg.

An “excessively loud” triceratops and a little girl's chemical-laced purse were among the items listed in the U.S. Public Interest Research Group's 2009 list of dangerous toys released Tuesday.

The 24th annual report, “Trouble in Toyland,” targeted 16 examples of toys in 3 categories: toys that it considers dangerously loud, or containing small parts that may present choking hazards for small children, or containing toxic chemicals or lead.

The toys are made or marketed by various companies throughout the world.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

Do you remember last month when everyone was so pleased to hear the U.S. economy grew at an annual rate of 3.5% in the third quarter?

Well, not so fast…

A revised reading of gross domestic product from the government out today shows the economy actually grew at a rate of 2.8%. True, that's not as good as originally thought, but it’s still growth - and it comes after a record four quarters in a row of contraction.

So what's behind the downgrade?

A few things, actually - including weak consumer spending, a slowdown in commercial construction and a widening trade deficit.

Even with the positive growth, it's expected that things will be slow moving forward, and the GDP number still needs to be revised one more time.

In a somewhat ironic bit of timing, the Federal Reserve today released the minutes of its meeting earlier this month during which it raised its estimate for economic growth next year and forecast lower unemployment ahead - although it said the jobless rate will stay uncomfortably high for at least the next three years.

The forecast also shows the central bank expects GDP to grow between 2.5% to 3.5% in 2010. That's a bit more bullish than the 2.1% to 3.3% growth it had forecast for the period back in June.

The unemployment rate, which hit 10.2% in October according to the Labor Department's latest reading, is expected to improve to between 9.3% and 9.7% for all of 2010. The Fed's June forecast was for 2010 unemployment to hover between 9.5% and 9.8%.

The Fed’s forecasts don't show the labor market getting a lot better in the next few years. Its 2011 forecast is for unemployment of between 8.2% and 8.6%, while 2012 unemployment is expected to be between 6.8% and 7.5%, still above the average 6% annual unemployment rate recorded by the Labor Dept. over the last 30 years.

Also out today were two separate takes on the housing market.

Home prices rose for the second straight quarter, but remained nearly 9% lower than a year earlier.

Prices nationwide rose 3.1% in the three months ended Sept. 30, according to the S&P/Case-Shiller Home Price Index, a closely watched gauge of housing market direction. That followed a similar 3.1% rise during the second quarter.

Prices were still below a year ago, however, down 8.9% compared with the third quarter of 2008. Nevertheless, that's an improvement from the double-digit price decreases the index had been reporting.

And in a sign that more foreclosures could be on the horizon, a new report says 23% of people with mortgages owe more than their home is worth.

Almost 10.7 million U.S. mortgages were “underwater” as of September, according to research firm First American CoreLogic.

Another 2.3 million homeowners are within 5% of negative territory, the report said. The two figures combined comprise almost 28% of all residential properties with mortgages.

Finally, the number of people shopping on “Black Friday” is expected to pick up more than 16% this year, according to a new survey.

A staggering 57 million people said they would “definitely” head to stores on the day after Thanksgiving, up from 49 million in 2008, according to a survey by the National Retail Federation.

An additional 77 million said they would wait to decide after seeing the weekend deals.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

Sales of previously-owned homes - by far the largest segment of the real estate market - surged in October to the highest level in more than 2-1/2 years.

The National Association of Realtors says that existing home sales rose 10.1% last month to a seasonally adjusted annual rate of 6.1 million units, up from the downwardly revised rate of 5.54 million in September.

Sales activity is the highest since February 2007, when the annual rate was 6.55 million.

The gain was likely due to an influx of buyers looking to take advantage of an $8,000 tax credit that the Obama administration made available for qualified first-time home buyers, the NAR said.

The tax credit was scheduled to expire at the end of November, but it has been extended into next year and expanded to include more home buyers.

The NAR says we're getting closer to a “general balance” between buyers and sellers, but cautions that there will be a "measurable decline" in sales this winter.

That will be the result of both a typical a seasonal slowdown and the fact that potential buyers now have until April 30th the get a sale under contract in order to qualify for the new tax credits.

Despite rising fears of the U.S. falling into another recession, a survey of top economists found them more optimistic about growth in the fourth quarter of this year and throughout 2010. But job seekers will have to wait a little longer for employers to start hiring again.

According to the November survey by the National Association of Business Economics, 48 top forecasters now expect the economy to grow at a 3% annual rate during the last three months of this year, up from their prediction of 2.4% growth in October.

The economists also raised their forecast for growth during every quarter of 2010. They now expect a 3.2% rise in economic activity over the course of the next four quarters, up from their previous estimate of 3%.

But the outlook isn't as good for the record 31 million Americans unable to find full-time jobs.

The economists pushed back their expectations for when U.S. payrolls will start to grow again to the second quarter of 2010. They previously had predicted a gain of 12,000 jobs a month in the first quarter.

The nation's unemployment rate hit 10.2% in October. The continued problems in the labor market, combined with disappointing reports about housing and retail sales recently, have raised concerns about a so-called "double dip" recession.

More than a year after the financial meltdown of 2008, Congress is moving forward on plans to drastically curtail the power of the Federal Reserve.

There is a debate about lawmakers' motivations, and many details must still be worked out between different proposals.

Currently, the main bills in the House and Senate differ in specifics, and the Senate would go further than the House in curbing Fed powers. But both chambers are proposing fairly drastic changes.

Meanwhile, Federal Reserve Chairman Ben Bernanke, whose four-year term expires in January, is certain to face a contentious Senate banking panel at his confirmation hearing set for next December 3rd

State tax collections nationwide plummeted in the third quarter, and the forecast for the remainder of the year looks grim.

Tax revenue in 44 states fell by about 11% in the third quarter, compared to last year, according to the Nelson A. Rockefeller Institute of Government.

State tax collections totaled $119.7 billion in the third quarter, compared to $134 billion from the same 44 states in the year-ago period, the institute said.

The western states were the hardest-hit region, showing a 15.3% decline, according to the institute, which studies state budgets.

California, with a revenue decline of 16%, was largely responsible for the western region's decrease.

Finally, for the first time in a decade, more people paid their credit card bills on time in the third quarter this year than in the second quarter.

The delinquency rate on bank-issued MasterCard and Visa cards fell to 1.1% in the third quarter of 2009, down 5.98% over the previous quarter, according to credit reporting agency TransUnion.

In addition, average credit card borrower debt drifted downward nationally 1.87% to $5,612 from the previous quarter's $5,719, and down 1.71% compared to the third quarter of 2008 ($5,710) TransUnion said. The highest state average credit card debt remains in Alaska at $7,699, followed by Tennessee at $7,039 and Alabama at $6,453. The lowest average credit card debt was found in Iowa ($4,225), followed by North Dakota ($4,449) and Wisconsin ($4,602).

Follow the money… on Twitter: @AndrewTorganCNN

More Americans are expected to travel for the 2009 Thanksgiving holiday than they did last year, although air travel will decline.

Andrew Torgan
CNN Financial News Producer

When it comes to the financial crisis, there's been a lot of blame-shifting and finger-pointing. But in a surprise move, one of the nation's biggest banks is now admitting it played a part in the debacle.

Goldman Sachs CEO Lloyd Blankfein has apologized for taking part in the era of free and easy money.

"We participated in things that were clearly wrong and have reason to regret," Blankfein said at a corporate conference in New York. "We apologize."

Blankfein’s comments came the same day that Goldman announced it’s launching a $500 million initiative called "10,000 Small Businesses," aimed at unlocking the job creation and economic growth potential of America's small companies.

The project's advisory council features an array of business luminaries, including Warren Buffett, the bank’s largest shareholder

It’s worth pointing out that Goldman Sachs earned an eye-popping $3.2 billion in the third quarter, as revenue from trading rose fourfold from a year ago.

We have new signs today that the recovery in the housing market is tenuous at best.

Construction of new homes plunged by nearly 11% last month as builders waited on the sidelines to see whether Congress would extend the homebuyer tax credit.

Housing starts fell 10.6% in October to a seasonally adjusted annual rate of 529,000 - the lowest level in six months. And applications for building permits, a gauge of future activity, fell 4% to an annual rate of 552,000 units.

Both readings were below expectations.

Also on the economic front, consumer prices in October were essentially unchanged from a year ago as the rising cost of oil and gas offset price declines elsewhere.

The Consumer Price Index, the government's key inflation reading, is now down only 0.2% during the past 12 months compared to the same period a year ago. This is the smallest 12-month rate of decline since February.

The core CPI, which is more closely watched by economists because it strips out volatile food and energy prices, is up 1.7% over the past year.

If you thought this year’s graduating class faced a bleak job outlook, next year’s not going to look much better.

New college graduates had 40% fewer job prospects this year, according to a new report. And the outlook for 2010, while better, is still not very promising.

Jobs for graduates with bachelor's degrees, which account for most new graduate hires, will drop nearly 1% next year, according to Michigan State University's survey on recruiting trends.

Hiring of master's degree graduates will plummet by 11% based on a weaker labor market for accounting students, the study said.

Jobs for Ph.D.s will spike by 20% and those for MBA graduates will rise 11%.

Overall, hiring of grads with any degree will decline by 2% compared to 2009.

After a sharp drop last year, more Americans are expected to travel for the 2009 Thanksgiving holiday, although travel by air will decline.

According to the latest forecast from AAA, 38.4 million Americans will travel at least 50 miles from home for the Thanksgiving weekend, an increase of 1.4% from last year, when 37.8 million traveled.

Driving will account most of the increase, with 33.2 million Americans expected to travel by car, up 2.1% from the 2008 season, according to AAA. But flying will decrease 6.7% to 2.3 million travelers.

Travel by train, boat, bus and other means is expected to edge up 1.2% to 2.9 million Americans, AAA said.

Last year, Thanksgiving travel plunged 25.2% compared to 2007.

Finally, you’d better hoard your Eggos!

Grocery stores will be experiencing a shortage of the frozen waffles until mid-2010 due to problems at two bakeries, a Kellogg's says.

Flooding at an Atlanta bakery during heavy rains in October forced Kellogg, which makes Eggo products, to shut down production temporarily. Plus, equipment at Kellogg's largest waffle facility in Tennessee needs extensive repairs.

Remaining Eggo inventory will be rationed to stores across the country.

Follow the money… on Twitter: @AndrewTorganCNN

More than 15 million taxpayers may owe the IRS, according to a report released by the Treasury Dept. on Monday.

Andrew Torgan
CNN Financial News Producer

More than 15 million taxpayers may be getting paid more of the Making Work Pay credit than they should, according to a report from a Treasury Dept. inspector general that was released Monday. That means they either will get less of a refund than they expected, or will actually owe money to the IRS on their 2009 taxes.

The taxpayers most vulnerable are those in two-earner couples; those who have dependents who earn wages; single or married filers who have more than one job at the same time; and filers who get pension payments or have a job and receive Social Security benefits.

Also late yesterday, the U.S. Postal Service reported a $3.8 billion loss in the 2009 fiscal year and said it plans to propose to Congress in 2010 that it drop Saturday delivery.

The agency already reduced expenses by $6 billion during the year ended Sept. 30.

Those measures included eliminating 40,000 jobs. However the cash-strapped agency still employs over 712,000 people. The Postal Service also reduced overtime hours and lowered transportation-related costs.

Additionally, the USPS lowered the payments it made for retiree health benefits by $4 billion in fiscal 2009.

A new report says federal regulators, in rushing to rescue AIG last year, failed to use their clout to negotiate concessions from business partners of the troubled insurer.

As a result, $62.1 billion of taxpayer and AIG funds were essentially funneled to 16 banks, which were counterparties to AIG insurance contracts, according to a report by Neil Barofsky, Special Inspector General for the $700 billion bailout.

The amount paid to the 16 banks represented the full-dollar amount of the underlying assets that the counterparties had insured through AIG. The news that the Fed paid 100 cents on the dollar for the assets caused a big stir among lawmakers and taxpayers.

The number of Americans that have trouble putting food on the table shot up last year in an unprecedented spike to a record 17 million households. That’s 1 in 6 Americans.

The Department of Agriculture report, which has been released annually since 1995, said the number of Americans that were hungry rose to 14.6%. In 2007, 13 million households or 11.1% of Americans had trouble getting enough food.

The one-year jump is all the more significant, given the number of hungry Americans had never been higher than 11.9% since these surveys began.

Finally, when most people think of “Black Friday” shopping, they think of things like flat screen TVs, toys and sweaters.

Well now you can add cars and trucks.

“Black Friday,” the day after Thanksgiving, is the best day to buy a car, according to car pricing researchers at Truecar.com.

Analysts looked at day-by-day car pricing for the last several years. That data revealed that discounts on “Black Friday” are, on average, the biggest of the year.

Follow the money… on Twitter: @AndrewTorganCNN

Improved results may allow GM to start repaying government loans sooner.

Andrew Torgan
CNN Financial News Producer

General Motors says that improved results will allow it to start repaying government loans sooner than expected, although the company continued to lose money in its first quarter since emerging from bankruptcy.

GM says it anticipates paying $1 billion to the Treasury Dept. in December, along with $192 million to the Canadian and Ontario governments.

GM received $6.7 billion in loans from the Treasury as part of its bankruptcy proceedings, along with help from Canada and Ontario. But that’s only a fraction of the $50 billion in bailout money GM has received from U.S. taxpayers since the end of 2008.

The government now owns a majority stake in GM, and it’s not clear if taxpayers will ever recover all that much of the $50 billion investment.

Despite a recent upturn in auto sales, GM continues to struggle. The company lost $1.2 billion between its emergence from bankruptcy on July 10 and the end of the third quarter on Sept. 30.

Also front and center on Wall Street, retail sales rose a better-than-expected 1.4% last month, compared with September's revised decline of 2.3%. But excluding autos and auto parts, sales edged up 0.2% - which is slightly worse than expected.

With Black Friday - the big shopping day after Thanksgiving - less than two weeks away, these numbers are being closely scrutinized for signs of how much consumers will be willing to spend during the all-important holiday shopping season.

Consumer spending accounts for two-thirds of all economic activity in the United States.

Ben Bernanke is also making news today. The Fed chairman says the recovery in the U.S. economy will be modest, with higher than desired levels of unemployment in the foreseeable future.

Speaking to the Economic Club of New York, Bernanke said in his prepared remarks that financial conditions are significantly better than when he spoke to the club a year ago– at the height of the global financial crisis.

But he cautioned that “some important headwinds - in particular, constrained bank lending and a weak job market - likely will prevent the expansion from being as robust as we would hope.”

And he didn't offer much immediate hope of a better labor market in the U.S. either.

“Jobs are likely to remain scarce for some time, keeping households cautious about spending,” Bernanke cautioned.

The latest Labor Dept. report showed unemployment hit 10.2% in October, the first time it has been in the double digits in 26 years. Employers also trimmed 190,000 jobs from payrolls, the 22nd straight month of job losses.

Despite the Fed chief’s comments, stocks are off to the races, with the major indexes hitting fresh highs for the year as investors focused on the weak U.S. dollar and those signs of improvement in the retail sector.

Stocks have rallied over the past two weeks as investors have gained confidence in the pace of the economic recovery. The market has also been supported by signs that policymakers around the world will keep economic stimulus efforts in place for a prolonged period of time.

The weak dollar helped also helped propel gold prices to a new all-time high above $1,130 an ounce.

Follow the money… on Twitter: @AndrewTorganCNN

McDonald's says it plans to open 1,000 new restaurants next year

Andrew Torgan
CNN Financial News Producer

President Obama, facing a nationwide unemployment rate north of 10%, said today he's organizing a White House jobs summit next month.

The president said people are “desperately searching for work” and that the government has “an obligation to consider every additional responsible step we can” to get people back to work.

He said the summit in December will bring together CEOs, small business owners, economists, financial experts and representatives from labor and non-profits groups to talk about how to get job creation back on track.

President Obama’s comments followed some encouraging signs out this morning on both the labor and housing fronts.

The number of Americans filing first-time claims for unemployment insurance fell last week to their lowest level this year. And foreclosure filings were down 3% in October, the third consecutive month-over-month dip.

Initial jobless claims dropped by 12,000 to 502,000 in the week ended Nov. 7. That’s the fewest number since the week ended Jan. 3, when 488,000 initial claims were filed.

The president called that “a hopeful sign,” but he also said that finding jobs for the millions without them remains one of his administration's greatest challenges.

In addition, the Labor Dept. said 5.63 million people filed continuing claims in the week ended Oct. 31, the most recent data available. That was down 139,000 from the preceding week's revised 5.77 million claims.

As for those foreclosure filings, the 3% decline in October followed a 4% drop in filings during September and a 1% dip in August. Still, foreclosure rates remain elevated from a year ago: They're up 18% compared with October 2008.

Mixed results from the world’s largest retailer today. Wal-Mart reported third-quarter profits that beat analysts' estimates, boosted by inventory reductions and other cost-cutting measures.

However, Wal-Mart's same-store sales declined 0.4% in the quarter as Americans continue to spend very cautiously. Same-store sales measure sales at stores open at least a year, and are a key measure of a merchant's performance.

Wal-Mart also issued a disappointing same-store sales forecast for the fourth quarter, which includes the crucial holiday shopping season.

Another company that dominates its respective landscape, McDonald's says it plans to open 1,000 new restaurants next year and renovate 2,300 existing locations.

At a meeting of company investors today, the fast-food giant said it would focus on opening new restaurants primarily in the U.S., Germany, France, Russia, China and Australia.

Specifically, McDonald's plans for 150 new U.S. locations plus: 260 in Europe; 490 across Asia, the Middle East, Africa and Australia; 80 in Latin America; and 20 in Canada.

Beating Congress to the punch, the Federal Reserve today released a new rule to prohibit banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have.

Starting on July 1, 2010, all banks will have to ask their customers to opt in to overdraft protection plans for ATM and debit card transactions.

Some banks charge as much as $39 when customers overdraw their bank account by even a few dollars.

Currently, more than 75% of banks automatically sign customers up for overdraft programs, according to a study by the Federal Deposit Insurance Corp.

Follow the money… on Twitter: @AndrewTorganCNN

Most cities in the U.S saw gains in the median price of single-family homes sold during the three months that ended Sept. 30

Andrew Torgan
CNN Financial News Producer

The prolonged period of pain in the housing market seems to be easing, at least temporarily anyway.

Most cities in the U.S saw gains in the median price of single-family homes sold during the three months that ended Sept. 30, according to the National Association of Realtors' quarterly report on home prices. This is the second consecutive quarter of gains.

The national median home price was $177,900 in the third quarter, up $7,000 from the previous quarter. And while that was still down more than 11% from the third quarter of 2008, the pace of decline is slowing. In the second quarter of 2009, home prices fell more than 15% from the same period last year.

The NAR attributed much of the recent increase in home prices to the government's first-time homebuyer tax credit, which has helped revive sales.

Also on the home front… the Treasury Department says some 650,000 troubled borrowers have been put into trial loan modifications under President Obama's $75 billion foreclosure rescue plan.

That number represents 20% of eligible homeowners at least 60 days behind in their payments, according to the Treasury. This is up from 16% a month earlier.

Despite the progress, housing counselors say the number of people falling into foreclosure vastly exceeds the ranks getting assistance. The number of filings hit a record high of 937,840 in the third quarter. That's a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

And JPMorgan & Chase says it plans to hire 1,200 mortgage loan officers as the bank moves to expand its home loan business.

The New York-based bank said the hiring spree will grow its home loan sales force by 60% and will be complete by the end of 2010.

New loan officers will be hired in 23 states - including California, Florida and Texas and key cities such as New York and Chicago.

The new loan officers will work with personal bankers and referral sources, such as real estate agents and builders, as well as with their own network of homeowners, JPMorgan says.

“There’s no place like home for the holidays,” or so the old song says. But despite some discounts on plane tickets and hotels, people continue to look for even cheaper travel deals for the upcoming Thanksgiving holiday - and some may wind up avoiding the airlines altogether.

The Air Transport Association says it expects a 4% decline in the number of airline passengers during Thanksgiving compared with a year ago.

The ATA attributes the drop-off to the tough economic climate, citing high unemployment and the recession as the main reason.

There are also many new fees for checking bags and a host of other charges that can add to the cost of air travel - and that may be leading more people to stick closer to home this year.

But travelers shouldn't expect planes to be less crowded than in the past. In fact, they'll be even more crowded. Airlines have been cutting back on flights or rolling out smaller planes in response to the decline in bookings.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

The nation's unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.

The reading is a sign of the continued weakness in the labor market - even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression.

The Labor Dept. said this morning that unemployment rate spiked to 10.2% last month, up from 9.8% in September. That’s the highest rate since April 1983.

There was also a net loss of 190,000 jobs in October. And while that’s worse than what economists were expecting and is still a big number – it is an improvement from the 741,000 jobs we lost in January.

The largest losses last month were in the construction, manufacturing and retail sectors.

The jump in the unemployment rate was driven up by a large drop in the number of people who describe themselves as self-employed, as well as the number of teenagers who have jobs. The unemployment rate for teenagers in the labor force soared to 27.6%, up 1.8 percentage points and hitting a third-straight record high.

It’s with that employment report as a backdrop that President Obama signed into law a bill to provide up to 20 additional weeks of jobless benefits to unemployed Americans, as well as extend the $8,000 tax credit for new homebuyers into the middle of next year.

After calling the jobless rate “sobering,” Obama said the bill he signed “will help grow our economy, help create and save jobs, and help provide necessary relief to small businesses,” in a statement following the signing.

The House approved the measures by a 403-12 vote Thursday afternoon, a day after the Senate passed the legislation.

The closely watched legislation will extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% will receive an additional six weeks. The proposal will be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.

The Senate had been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.

Commodities prices also reacted to the unexpected spike in the unemployment rate.

Crude oil prices dropped by more than $2 to around $77 per barrel. Oil prices have risen from a low of less than $33 a barrel last December to a high for this year of $82 in October.

And gold powered through the $1,100 an ounce barrier as nervous investors sought out the metal as a safe haven.

Gold prices have soared 5% this week amid speculation that overseas central banks may be moving toward buying more gold as they look for ways to reduce their exposure to the U.S. dollar - the traditional reserve currency of choice for many of those foreign central banks.
Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

Unemployed Americans are set to get up to 20 additional weeks of jobless benefits, while new homebuyers are poised to see the $8,000 tax credit extended into mid-next year.

The House approved the measures by a 403-12 vote this afternoon, one day after the Senate passed the legislation. The bill now moves to the White House for President Obama's signature.

The legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment higher than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.

The measure would apply to those whose benefits run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round.

The House, which passed its own benefits extension in September, giving an additional 13 weeks in high-unemployment states, approved the Senate's version.

The Senate had been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.

The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.

The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

News of the unemployment benefits extension comes as the number of Americans filing first-time claims for jobless benefits fell by 20,000 to a seasonally adjusted 512,000 last week - the lowest level in 10 months.

And the number of people who continue to claim benefits for one week or more fell by 68,000 to 5.75 million – the eighth decline in nine weeks.

Still, companies are reluctant to hire and economists expect the unemployment rate will tick up to 9.9 percent when October's figure is reported Friday.

And the House passed a bill Wednesday to move up the effective date for credit card reforms to Dec. 1, from February and August 2010.

In May, President Obama signed into law a credit card reform act to crack down on the way issuers raise fees and interest rates. The reforms were scheduled to roll out in three parts over 12 months.

"Just in time for the holidays, Congress can lock in a ban on interest rate hikes on existing balances, and the tricks that have kept far too many consumers trapped in a never-ending cycle of debt," said bill co-sponsor Rep. Carolyn Maloney, D-N.Y., in a statement issued late last month.

House Financial Services Committee Chairman Barney Frank, D-Mass., was the other sponsor of the bill.

The Senate will also have to vote to pass the measure expediting the changes in order for it to go to President Obama for his signature.

Finally, in an effort to give troubled borrowers yet another way to avoid foreclosure, Fannie Mae says it will allow eligible homeowners to rent their own homes.

The Deed for Lease program lets homeowners transfer the deed back to their lender and then sign a lease to remain in the home. The effort is aimed at borrowers with mortgages owned or guaranteed by Fannie Mae who do not qualify for or cannot sustain a loan modification. Borrowers must live in the home as their primary residence and must be released from any subordinate liens.

The program aims to reduce the number of foreclosed properties being abandoned because they often fall into disrepair and hurt the surrounding homes' values. Also, it keeps a roof over troubled borrowers' heads and a steady stream of income coming from the property.

Follow the money… on Twitter: @AndrewTorganCNN

Federal Reserve policymakers voted again to keep the central bank's key interest rate near zero, just one week after the government reported that the economy grew in the third quarter.

Andrew Torgan
CNN Financial News Producer

Federal Reserve policymakers voted once again today to keep the central bank’s key interest rate near zero. Ben Bernanke and Co. added in a statement that although the economy continues to improve, the Fed intends to stay the course – at least for a while.

The central bank’s decision came just one week after the government reported that the economy grew in the third quarter, the first gain in more than a year

While it was widely assumed that the Fed would leave rates in a range of 0% to 0.25%, economists and investors were eager to see how it described the economy in its statement.

And the Fed repeated language from earlier statements that economic conditions are “likely to warrant exceptionally low levels of the federal funds rate for an extended period.”

The federal funds rate is a benchmark used to set the rates paid on a wide range of business and consumer loans, such as home equity lines and credit cards. It has been near zero since December 2008.

Also in focus, the nation's employment picture continued to deteriorate last month, although the rate of decline continued to slow, according to two reports out today.

Payroll-processing firm ADP said private-sector employers cut 203,000 jobs in October. It was the seventh month in a row that the number of job cuts fell from the month before.

In a separate report, the pace of announced job cuts slowed, but the number of cuts announced in 2009 will soon exceed last year's total.

Job cut announcements by employers fell to 55,679 in October, 16% fewer than in September, according to outplacement firm Challenger, Gray & Christmas. It was the third consecutive monthly decline.

We’ll get the government’s official snapshot of the labor market on Friday with the October employment report. Consensus estimates are for a loss of 175,000 jobs and the unemployment rate ticking up to 9.9%.

Meanwhile, the number of Americans filing personal bankruptcies surged 9% in October, and we are now on target for the highest annual total in four years, according to a report issued today.

The American Bankruptcy Institute, an industry research firm that relies on data from the National Bankruptcy Research Center, said 135,914 consumers filed for bankruptcy last month. Almost a third of the bankruptcies were filed under Chapter 13, in which consumers are put on a repayment plan of up to five years.

The group is also forecasting total bankruptcies will exceed 1.4 million in 2009, which would be the highest since 2005. It would also be an increase of at least 30% from last year.

Follow the money… on Twitter: @AndrewTorganCNN

General Motors, Ford Motor and Nissan reported that their sales were up from a year ago.

Andrew Torgan
CNN Financial News Producer

It’s a busy day on the deal front, and it starts with Warren Buffet’s big bet on the future of the United States.

Buffett's Berkshire Hathaway is buying railroad operator Burlington Northern Santa Fe for $44 billion, in what he characterizes as an "all-in wager on the economic future of the United States."

Berkshire, which already has major stake in the company, will acquire the remaining 77.4% of the company in a cash-and-stock offer worth $100 per share.

"Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a statement.

The deal, which would rank as the largest acquisition in Berkshire Hathaway's history, would also include $10 billion of Burlington Northern debt.

It would also expand the already massive portfolio of companies Berkshire already owns. Brand-name businesses such as auto insurer Geico, See's Candy and Fruit of the Loom are all subsidiaries.

And in a major consolidation of the tool industry, Stanley Works agreed late Monday to acquire Black & Decker in a $4.5 billion all-stock deal.

The deal is expected to close in early 2010, and the new company will be called Stanley Black & Decker.

Stanley, which is a leader in hand tools, owns brand names including FatMax, Bostitch and Mac Tools. Black & Decker, known for its power tools, owns Kwikset, Baldwin and Price Pfister, among others.

The deal will also likely mean thousands of job cuts are on the horizon at the combined company.

Meanwhile, big job cuts are looming at Johnson & Johnson.

The consumer health products maker says it will cut up to 7% of its global workforce – or up to 8,000 jobs – as part of an ongoing cost-cutting plan that the company says will save between $1.4 and $1.7 billion by 2011.

The company will also simplify its business structure and remove some layers of management to streamline its operations.

J&J has about 117,000 employees spread across more than 250 companies.

Switching gears if you will, the major automakers are reporting that their October sales rebounded following a weak September, as an increase in the number of cars available at dealers helped to get sales moving once again.

General Motors, Ford Motor and Nissan also reported that their sales were up from a year ago while Toyota said its sales were essentially unchanged from the same period last year. Chrysler Group reported sales fell 30% from October 2008, however.

Auto sales shot up for most major car manufacturers in late July and the first three weeks of August thanks to the government's “Cash for Clunkers” program, which offered up $4,500 of federal money to buyers trading in gas guzzlers when buying new cars. But the popular program left most auto dealers with limited supplies of vehicles in September.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

CIT Group, one of the nation's leading funders of small and medium-sized businesses, filed for the fifth-largest bankruptcy by assets in U.S. history over the weekend as part of a reorganization plan that has the support of a majority of its debt holders.

Not to be confused with Citigroup, CIT is seeking quick approval of the prepackaged plan in bankruptcy court and said none of its operating subsidiaries would be affected by the filing, allowing them to continue operations.

In the bankruptcy filing, CIT said it had $71 billion in assets and $64.9 billion in liabilities. Only Lehman Brothers, Washington Mutual, WorldCom and General Motors had more in assets when they filed for protection.

CIT's position in the business world is crucial: it’s a top lender to women and minorities and it says it is the leading provider of “factoring,” a key element in the day-to-day financing of the retail industry. It’s also the nation's third-largest lessor of rail cars and the world's third-largest lessor of aircraft.

One company that did not seek bankruptcy protection this year or take any government bailout money was Ford Motor.

And today, Ford reported a surprise profit of just under $1 billion for the third quarter - helped by a bump in sales from the government’s “Cash for Clunkers” program, a reduced cost structure and problems at its rivals Chrysler and General Motors.

Ford said cost cutting during the past year and an improved outlook for sales leads the company to believe it will be "solidly profitable" in 2011 - the most bullish outlook Ford has offered investors since it started losing money in 2005.

Ford, along with the rest of the auto industry, reports sales figures for October tomorrow. And the post-clunkers hangover is expected to continue.

It’s also a very busy day on the housing and economic fronts.

The number of signed sales contracts to buy homes rose for the eighth straight month in September.

The National Association of Realtors said its September Pending Home Sales Index spiked 6.1% to the highest level since December 2006 as people rushed to take advantage of an $8,000 tax credit for first-time homebuyers.

It's estimated that between 200,000 and 400,000 additional sales will have been made because of that incentive. The credit lapses at the end of this month, and the housing industry is bracing for a major turndown in sales if Congress fails to pass some kind of extension.

Meanwhile, a key index of manufacturing activity jumped in October, reaching its highest level in three and a-half years.

The Institute for Supply Management's manufacturing index rose to a reading of 55.7 in October from 52.6 the month before. It was the highest reading since April 2006 when the index registered 56.

The monthly report is a national survey of ISM members, who are purchasing managers in the manufacturing field. Readings above 50 indicate growth, while levels below 50 signal contraction. Readings below 41.2 are associated with a recession in the broader economy.

The index first showed growth back in August after 18 months of contraction. It dipped slightly in September from the previous month, but has held above the level indicating growth for three months in a row.

And construction spending also rose in September as the increase in housing starts over the last few months has finally shown up in the residential construction numbers.

Follow the money… on Twitter: @AndrewTorganCNN

Andrew Torgan
CNN Financial News Producer

The first quarter of economic growth in more than a year was a cause for celebration yesterday, albeit one tempered by the realization that until job creation picks up, any recovery will not be felt on Main Street for some time.

Today, the Obama Administration weighed in on that subject, saying the largest stimulus program in the nation's history has created or saved about 650,000 state and local jobs.

Based on approximately $150 billion in spending from the $787 billion recovery package, the tally is the first broad, concrete look at the stimulus program's impact on the economy. The numbers are drawn from tens of thousands of reports from state and local recipients as well as private companies.

And the White House said the actual number of jobs created so far is likely closer to 1 million, since its report only focused on $150 billion of the $339 billion in stimulus funds spent so far.

The Obama administration is expected to announce further details about jobs Friday afternoon, after the government posts complete reports online on its stimulus data tracker Recovery.gov. Each job cost $230,000 to create.

But with the unemployment rate expected to tick up to 9.9% and more jobs losses expected next week when the government releases its October employment report, when are the jobs going to get here?

The answer, according to CNNMoney.com, is not anytime soon.

The consensus forecast is that job losses will continue through the end of this year, with many economists not expecting unemployment to peak until next summer. That will add to the 7.2 million jobs already lost in this downturn.

Jobs are what are known as a trailing or lagging indicator, meaning that they change in response to other economic events, rather than predicting changes the way a leading indicator, such as the stock market, does. That's because even after a recession has ended, employers are slow to add staff until they're sure that demand has returned.

The real worry is that the deepest and longest recession since the Great Depression will be followed by a jobless recovery, just like what happened after the recessions in 1990-1991 and 2001.

Also in focus today, spending by Americans took a big tumble in September as the “Cash for Clunkers” program expired and the weakness in the job market persisted.

The 0.5% drop in spending last month was the largest since December 2008, when the recession was at its worst. Personal income, meanwhile, was essentially unchanged in September.

Speaking of “Cash for Clunkers” the White House on Thursday lashed out at a prominent critic of the program, arguing that the popular trade-in initiative helped give the auto industry and the economy a much needed boost in the past few months.

In a blog post on whitehouse.gov, the administration argued that a report on “Clunkers” by automotive Website Edmunds.com that said it cost taxpayers $24,000 per vehicle sold and did not have a great impact on the auto industry “doesn't withstand even basic scrutiny” and is based on “implausible assumptions.”

Follow the money… on Twitter: @AndrewTorganCNN