CNN New York
The pain of Chrysler’s bankruptcy filing is hitting hard today – 789 Chrysler dealerships representing about 25% of the auto maker’s 3,181 dealerships – are getting word today they will be shut down. That means thousands of salespeople and staff out of work and a major impact on communities. General Motors is expected to soon announce an even bigger number of closures, as it heads toward a June 1st deadline to restructure with or without a Chapter 11 filing.
Most analysts expect GM will have to file as well.
Ahead of the Chrysler news this morning, more signs that the jobs picture is worsening, even as some signs on the economy are positive, or at least showing a slower pace of deterioration. A record 6.5 million people are now collecting unemployment claims, and the number of first time filers jumped last week by 32-thousand to a total of 637-thousand.
Inflation at the wholesale level jumped a bigger than expected 0.3% in April, but the year-over-year change in the Producer Price Index was DOWN 3.7%, which is the biggest decline since 1950, as a weak economy means prices must be cut to entice retailers to buy.
President Obama, as I write this is making a push at a high school town hall event in New Mexico the credit card legislation making its way through Congress – Mr. Obama has railed against hidden fees and sudden interest rate hikes that have many Americans outraged.
Times are tough; tougher than most Americans have witnessed in their lifetimes. People are losing their jobs, watching their homes fall into foreclosure and seeing their savings disappear.
But in small towns and big cities across the country, Americans are fighting back by starting a new business because the old one shut down; by finding a way to pay the mortgage and stay in their homes, and by rebuilding their communities to save them from becoming economic statistics.
Anderson Cooper, Ali Velshi and a panel of financial experts will explore how the country is picking up the pieces, moving on and moving ahead in the next CNN Money Summit: Money and Main Street, airing Thursday night at 8p.m. ET.
We want you to be part of this hour by telling us about your personal economy … click here to submit your i-report.
“Money & Main Street” is all about you – we're taking a look at how economic headlines are affecting everyday Americans.
Be part of a special TV and online event, the CNN Money Summit with Anderson Cooper & the CNN Money Team, May 14 at 8 p.m. ET, by sharing your story on iReport.com.
Tell us how a worsening economy is affecting your life and how you're finding ways to cope. Share your stories and questions. To get started, check out our economy-related assignments here.
Program Note: Make sure to check out the next CNN Money Summit on Friday, March 6 at 11 p.m. ET.
CNN Chief Business Correspondent
The TV show "Survivor" picks a new location every year. Gabon, Micronesia and China have been the last three. Considering the state of the economy, maybe next season should be "Survivor: United States"?
Americans are scared about their economic future, and with good reason. Right now more than 11 million people are out of work, and the unemployment rate is fast approaching a dismal 8 percent. Even those who are lucky enough to be employed are nervous about their job security and future prospects.
And what do nervous consumers do? They spend frugally, hoarding the rest of their cash for dark days ahead. They avoid making major purchases, like cars or homes- both of which are seeing their values nose-dive. That in turn hits businesses, which then need to cut costs themselves, which usually leads to...you guessed it: more job cuts!
And so the self-reinforcing cycle continues, over and over, and the U.S. economy spirals down, down, down.
Perhaps we aren’t totally forsaken. After all the president, Congress, and the Federal Reserve are working overtime trying to turn the economy around, churning out fix-it plans left and right. There’s the bank bailout plan, the stimulus plan, the mortgage plan, the bank and credit program, and the billions upon billions of dollars each of those entails.
Can the government really get us out there buying again through pure force of will (and legislation)? And can these huge recovery programs actually have any effect on your mortgage, your retirement savings, or- perhaps most importantly- your job?
We'll examine these issues on the CNN Money Summit. Send us your questions and tune in for answers on Friday, March 6 at 11 p.m. ET.
Americans are coping with a terrible trifecta of wealth destruction. Workers are being laid off in numbers never seen before - almost 700,000 jobs lost last month alone. Have you been affected?
This week the Obama Administration released details on its $75 billion loan modification and refinancing program. So what will this do for homeowners and how will it help you?
We want to know what you're thinking. Do you have a question for the CNN Money Summit team about your job, your income or your savings?
We'll examine the problems and explore the solutions in the next CNN Money Summit Saturday, March 7 at 8 p.m. ET.
Program Note: Tune in to hear more from David Gergen tonight on the AC360° at 10 p.m. ET. And watch him on the CNN Money Summit on Friday at 11 p.m. ET.
David Gergen | Bio
CNN Senior Political Analyst
This is a good moment to look ahead at the extraordinary challenges facing President Obama and how he and his team will try to solve them. Based on what has appeared in the public press as well as personal conversations in Washington, here is my best take:
In winning passage of the stimulus package, the President managed his way successfully through his first storm but he and his team recognize there are darker, more treacherous ones ahead. The economy has been deteriorating at such an accelerating rate in recent months that the administration had to expand the size of the stimulus package far beyond what they originally envisioned. If the economy continues to sink – and signs around the globe point in that direction – even this package will not be big enough. And economists of almost every stripe complain that its impact was weakened during the political wrangling.
Program Note: Tune in to the next CNN Money Summit with Ali Velshi on Tuesday, Feb. 17 at 11 p.m. ET and Friday, Feb. 20 at 11 p.m. ET.
CNN Chief Business Correspondent
For better or for worse, the biggest economic stimulus bill in history- ringing in at a whopping $787 billion dollars- has been passed. The bill is a hodgepodge of government spending, long-term investment, and tax breaks that Congress HOPES will get the economy back on track.
Supporters say the bills' provisions will kick start the job market, push stock prices higher, and restore confidence in the housing market. 3.6 million people have already lost their jobs during this recession, consumer and business spending have just about ground to a halt, and housing prices continue to drop. The stimulus bill has its work cut out for it.
Americans are coping with a terrible trifecta of wealth destruction. Workers are being laid off in numbers never seen before - almost 600,000 jobs lost last month alone.
Retirement accounts have been sliced nearly in half.
President Obama and Congress are working on a stimulus package to reverse the downward spiral through big spending and big tax breaks.
Will it work? How quickly? We’ll examine the problems and explore the solutions in the next CNN Money Summit Tuesday, Feb. 17 at 11 p.m. ET.
But we want to know what you're thinking. Do you have a question for the CNN Money Summit team about your job, your home or your financial opportunities?
Did you find out about the CNN Money Summit on Facebook? If you did, let us know in your questions!!!