July 15, 2008
Have We Hit Rock Bottom?
Harry Smith: IndyMac, General Motors, And Starbucks; All Examples Of Our Ever Worsening Economy
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IndyMac Federal Bank's customers listen to Burbank Police Sgt. Matthew Ferguson's instructions as he reads names from a sign up sheet, July 14, 2008. (AP)
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Play CBS Video Video CBS Evening News, 07.15.08 Tuesday: High-level assurances over the economy; mortgage giants enter crisis mode; fallout from IndyMac; Gitmo tapes released; families tackle obesity; and air pollution clouds Beijing.
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Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
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Fast Facts GM Moves General Motors announces cuts to salaried jobs, production, dividend to raise turnaround cash.
Are we there yet? This economic slide doesn’t seem to have a finish line. One day’s bad news is followed by another … and then another.
As we learned this week, the banks are in worse trouble than we thought. IndyMac, the $30-billion California financial institution that specialized in writing mortgages for people who weren’t qualified was taken over by the FDIC this week. And depending on who you ask, there are either a handful or dozens or even scores of other banks out there awaiting a similar fate.
Meanwhile we read today of even more scaling back at General Motors, where the stock price is the same as it was in 1950s. News appears and web sites are filled with columns about cost cutting ideas like brown bagging your lunch. Or eliminating your Starbucks Skim Latte. No wonder Starbucks is closing 600 stores.
If there’s a smart person out there who really knows, I’d like an answer. Have we hit bottom? Or is there still a long, long way to go?
By Harry Smith
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