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Stocks taking off: The GM IPO might have something to do with it - as well as more encouraging news about Irish debt and better-than-expected jobless claims data. Dow is up about 175 points.
Latest on GM: Trading a little under $36 a share, up 8.2 percent.
New worries for California bonds: State officials have called off a $267.3 million bond sale it planned to price next week because of tepid market conditions. From the WSJ:
The normally staid market has grown volatile the past week, posting its sharpest selloff in nearly two years, as investors demand higher interest rates to buy paper issued by states, cities and counties to finance their operations. Localities have been hammered by a drop in tax revenue amid the downturn--and unlike the federal government, most are barred constitutionally from running deficits. "The tax-exempt municipal bond market is a cold, cold world right now for issuers and taxpayers," Tom Dresslar, a spokesman for the California State Treasurer.
Californians want it all: They're in favor of more budget cuts, but they oppose cuts on programs that make up 85 percent of the state's general fund obligations, according to an LAT//USC poll. In other words, do the impossible. From the LAT:
That paradox rests on Californians' firm belief that the state's deficit--estimated last week at nearly $25 billion over the next 18 months--can be squared through trimming waste and inefficiencies rather than cutting the programs they hold dear. Despite tens of billions that have been cut from the state budget in recent years, just a quarter of California voters believed that state services would have to be curtailed to close the deficit.
Bill to extend jobless benefits: It might get through the House, but good luck in the Senate, where the previous extension ran into all kinds of trouble. From CNNMoney:
A report by the U.S. Congress Joint Economic Committee, which is headed by Democrats, said that ending the extended unemployment program would drain the economy of $80 billion and result in the loss of more than 1 million jobs over the next year. That's because the unemployed are usually living so close to the edge that they spend their benefits immediately, generating economic activity. Those opposed to extending the deadline are concerned about the impact on the deficit and about whether prolonged benefits keep the jobless from looking for work.
New Madoff arrests: Two former employees of the Ponzi schemer have been picked up by federal officials and will be charged today in connection with the massive fraud. (Bloomberg)
Globes sues Dick Clark Productions: The Hollywood Foreign Press Association alleges that the production company secretly negotiated a low-ball renewal deal with NBC. (LAT)
"Call of Duty" keeps piling up sales: Activision's videogame blockbuster racked up to $650 million in sales after five days. That sets an industry record. (THR)
Warner Bros. probes leak: Studio would like to know how 35 minutes of "Harry Potter and the Deathly Hallows" wound up on the Internet late Monday night. (WSJ)
Feds examine Tribune ESOP: Getting a look is GreatBanc Trust, which was hired by the media company to represent employee interests. (Chicago Tribune)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.