March 5th, 2009
12:08 PM ET

Ali's mid-morning update...here's where we stand

Editor's Note: Check out this mid-morning update from Ali Velshi and tune in to hear more from him tonight on AC360° at 10 p.m. ET.

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/03/05/t1home.gm.logo.gi.jpg]

Ali Velshi
CNN Chief Business Correspondent

Market getting hit again.  Citi shares drop to their lowest level ever, briefly below $1.

GM internal audit shows danger that the company may fail.  GM is a large part of why the market is in decline.

New numbers indicate that a record 1 in 10 homes with mortgages were delinquent by 1 month of more at the end of 2008.

Major retailers announced sales figures for February, as compared to last February.  WalMart trounced estimates, saying that lower gas prices gave its customers more money to spend at the store.  Other retailers are still struggling, but some say the tide COULD be turning.  Same store sales are quite current and one of the best indicators of sentiment.

Unemployment numbers come out tomorrow – could be worst yet as jobless rate may hit 8%

Filed under: Ali Velshi • Economy • Finance
soundoff (5 Responses)
  1. xtina, chicago IL

    DO you find in your research that people are spending money on small ticket items and not on big purchases? I get that general vibe. Do you think that union regulations and crippling demands made upon big companies by unions have caused firms such as GM to be "on the brink"?

    March 5, 2009 at 2:33 pm |
  2. James, Elk Grove, CA

    Why does the government keep giving monies to the crooks who are partly to blame for our financial crisis? They can't be trusted with the bail out money and I think some of their dispicable actions have proven that fact. Give the money directly to the people. Money trickles up faster than it does down. That is a fact! This is how you stimulate an economy. People will be buying goods and services immediately. People and businesses will be making deposits into their banks, now banks have the money needed for conducting their own business. People will be buying new cars, buying new homes, remodelling, buying more groceries, going to vacation spots, etc. If some people decide to spend their money fullishly, I say too bad. We all should be smarter about our financial decisions by now, no excuses. I am not a financial advisor but that's just what I think.

    March 5, 2009 at 1:49 pm |
  3. Sharon S

    GM needs to go ahead and file bankruptcy! they need to regroup get rid of the Union, that is a big part of their problem! Then they can regroup get average wages going and good benefits but no more of this over the top benefits and packages that the union insisted upon!

    Unions are a dying breed they need to be done away with they did their job while they were needed but the truth is they have not been needed in this country for a very long time!

    March 5, 2009 at 12:51 pm |
  4. Ed Tlach

    The market is bad because we keep trying to prop up 3 businesses that are broke and the reason they are broke is because they will not manage responsibly. AIG, in the past 14 months they have lost $180 billion the same amount we the taxpayers gave them in the form of a hand out. They don't have to conduct business responsibly if some one will continue to feed their bad habits.
    GM – same situation, irresponsible management, poor business plan and the tax payer has to stand the losses so they can earn millions in personal salaries and bonuses.
    Citi – this is just plan stupid. If this was any number of smaller banks in this country we would close them down. This institution needs to be closed and sold even if the government had to buy the bad debts. No use funding the managers of this company with million dollar salaries.
    All in all if we let all 3 of these companies go broke and close them down and just as well throw in Chrysler while you are at it. The stock market would stabilize and eventually everyone would get back to work and everything would be fine.
    You don't see the market being affected by Bear Sterns any longer, this is old news and yes the day they went broke it was a big deal but 30 days after everyone forgot about it and went on.
    I know there are great economists out there but most can not see the forest for the trees. I predict the Dow will get down to 4900 before it actually stabilizes. In fact if the government keeps the 3 above mentioned companies going it could go even lower.

    March 5, 2009 at 12:46 pm |
  5. Michael "C" Lorton, Virginia

    After reading your article--I woke up this morning--I'm still above the ground--I went to work--and today I'm grateful--tomorrow--will wait and see what it brings..

    March 5, 2009 at 12:28 pm |