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Business General Motors GM profits slip 41% as European struggles take their toll America's largest car firm made $1.5bn in the second quarter of 2012, with European division reporting operating loss of $361m Share 531 Email Dominic Rushe guardian.co.uk, Thursday 2 August 2012 09.25 EDT General Motors GM's CEO Dan Akerson said: 'We have more work to do to offset the headwinds we face.' Photograph: Jeff Kowalsky/EPA General Motors' profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America. America's largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn...

After dutifully abiding by EU fiscal rules, Finland's tiny population remains surprisingly phlegmatic about bailing out less disciplined euro zone members, and is mostly clinging on to its faith in the single currency project. That faith has been tested as a succession of struggling nations make ever greater demands on the sounder economies in the currency bloc, but it is not yet at breaking point. "We had to sort out our own problems ourselves in the past. That's why people are asking, do we have to help others?" said Maija Siirala, a freelance dressmaker and alterations specialist. Finland, one of...

Twenty four centuries ago Socrates argued that the greatest of evils and the only evil worse than doing wrong was getting away with it. Since we experienced the economic near-collapse four years ago, we have also witnessed complete and utter failure in the administration of justice. Senior levels of the Department of Justice, of the banking industry, of the political system, are all “getting away with it.”Is there any chance that Covington and Burling, the firm which represents JP Morgan, Goldman Sachs, Morgan Stanley, B. Of A., Wells Fargo, etc., and spawned AG Eric Holder and AAG Lanny Breuer,...

A few weeks ago, Politico lavishly praised bipartisanship in Washington saying “Don’t look now, but the Senate’s actually working.” The story could have been subtitled “Taxpayers, grab your wallets,” because bipartisanship in Washington usually leads to bigger government. Today, we are learning about the latest example of bipartisan insanity as we hurry toward the fiscal cliff. As most Americans are rightly focused on the impending Obamacare court decision, Democrat and Republican leaders are quietly planning to combine a new highway bailout with a student loan bailout. All of this is to be paid for by raising new taxes and raiding...

A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers. As an alternative, he recommends a combination of capitalism and socialism to weed out weak European banks and companies and to support the strong. “This is how we got into World War II,” Rogers tells Yahoo, referring to Europe’s handling of its financial crisis. “Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.” The Rogers solution: “Let the people who have failed,...

In an official campaign kick-off speech, given earlier this month, Congressman Allen West covered a wide spectrum of issues educating his audience on where he stands on the issues that drive public conversation today. One topic that drew heavy applause was the idea of government bailouts.

Mitt Romney maintains that "President Barack Obama is holding on to the government's stake in General Motors to avoid an embarrassing financial loss before the election, and says he'd sell the stock quickly if he wins the White House," according to the Detroit News, which recently interviewed the Republican presidential candidate. "There is no reason for the government to continue to hold (its GM stake)," Romney tells the news outlet. "The president is delaying the sale of the shares to try and avoid the story that the taxpayer took another loss. I would get the company independent from the government...

Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each. The reduction for qualifying homeowners could amount to monthly savings of up to 35 percent on mortgage payments, Bank of America said in a news release on Monday evening.

A couple of stories surfaced recently that should be of concern to voters that are analyzing how a Romney presidency would differ from the current administration. President Obama has a track record that can be examined to get a grasp of his agenda, but Governor Romney needs to further explain his positions on two key areas that many voters would expect to see a divergence with our present leader. The reports bring in to question whether or not Romney would be any different from the administrations over the past 12 years when it comes to dumping billions of taxpayer dollars...

A couple of stories surfaced recently that should be of concern to voters that are analyzing how a Romney presidency would differ from the current administration. President Obama has a track record that can be examined to get a grasp of his agenda, but Governor Romney needs to further explain his positions on two key areas that many voters would expect to see a divergence with our present leader. The reports bring in to question whether or not Romney would be any different from the administrations over the past 12 years when it comes to dumping billions of taxpayer...

One of Mitt Romney's top advisers said Saturday that President Obama's decision to bailout Chrysler and General Motors was actually Romney's idea. "[Romney's] position on the bailout was exactly what President Obama followed. I know it infuriates them to hear that," Eric Fehrnstrom, senior adviser to the Romney campaign, said. "The only economic success that President Obama has had is because he followed Mitt Romney's advice."

I’ve often described Barack Obama as a European-style politician. He has the kind of big government mindset that would fit comfortably in Brussels or Paris. If he had been born in Provence instead of Hawaii, I’m sure he would have gravitated to the Elysée Palace or challenged Herman Van Rompuy for the presidency of the European Council. He has been the most Eurofederalist of American presidents, actively backing the European Project—to the extent that his vice president, Joe Biden, even declared Brussels to be “the capital of the free world”.It is not hard to see why François Hollande, the Socialist...

In written remarks distributed before a campaign speech to the United Auto Workers Union, Vice-President Joe Biden praised President Obama’s courage for bailing out General Motors and Chrysler. “Where others might have been deterred by property rights or contracts, President Obama charged in, unafraid,” Biden remembered. “He put your jobs, your interests ahead of all else.” Biden urged union members to keep this in mind come election day. “Some may put their trust in the law,” Biden said. “But I say having a guy you can trust at the wheel trumps anything that might be written down in a statute...

Danielle, who is my right hand assistant that manages my life, pointed out to me that born on today which is called “Pi Day” in most math classes was none other than Albert Einstein (March 14th, 1879 – April 18th, 1955). While he taught in Princeton, I was far too young to have ever met him. Although his IQ score was 160, there are many others who score much higher in different fields. Yet the key to Einstein’s mind lies not in his theory of Relativity, but in his Five Maxims for Achieving Excellence. 1. Imagination is more important than...

While talking about capitalism last week, former U.S. Vice President Al Gore got it right. Sort of… On Thursday, he said this about the United States’ economic structure: “While we believe that capitalism is fundamentally superior to any other system for organizing economic activity, it is also clear that some of the ways in which it is now practiced do not incorporate sufficient regard for its impact on people, society and the planet.” Taken by itself, that statement is completely true: Capitalism is the best economic system available, and the version America has been practicing for years is badly flawed....

General Motors told 1,300 employees at its Detroit-Hamtramck factory that they were being “temporarily laid off” for five weeks as the company halts production of the Chevrolet Volt, the Detroit Free Press reports. “Even with sales up in February over January, we are still seeking to align our production with demand,” said GM spokesman Chris Lee. “We needed to maintain proper inventory and make sure that we continued to meet market demand,” he told The Hill in a phone interview.

NASHUA, N.H. - (AP) -- President Barack Obama, turning his political sights on snowy New Hampshire, demanded that Congress eliminate oil and gas company subsidies that he called an outrageous government "giveaway." Though politically a long shot, the White House believes the idea resonates at a time of high gasoline prices. "Let's put every single member of Congress on record: you can stand with oil companies or you can stand up for the American people," Obama said. The president also said GOP charges that his policies are driving up gas prices won't pass "a political bull-detector" test and pointed to...

Plunging deeper into the farce-hole, the FT reports tonight that Obama's foreclosure settlement with the banks over their improper seizure of tax-paying US citizens' homes will in fact be subsidized by those very same US taxpayers. It is a hidden clause (that has not been made public yet) that allows the banks to count future loan modifications under the $30bn (taxpayer funded) HAMP initiative towards their $35bn agreement to restructure obligations under the new settlement. As the FT goes on to note, BofA will be able to use future mods made under HAMP towards the $7.6bn in borrower assistance it...

With sales and profits up at General Motors, proponents of the 2009 automotive bailout for GM (and Chrysler) now assert the taxpayer-financed rescue was a success. In a visit to Michigan in late January, U.S. President Barack Obama argued the deal saved jobs. Canadian politicians, including Finance Minister Jim Flaherty, who last summer incorrectly asserted taxpayers received all their money back, have made similar boasts. Given the revisionist history in play, let’s place that 2009 deal in proper ­context. It’s no surprise that GM and Chrysler are doing better. Relieve any company of its debt through bankruptcy and stuff it...

President Barack Obama, whose economic acumen was shaped by left-wing, Big Government ideologues, wants to fix the housing market mess that government, in large part, is responsible for creating. His plan to tax big banks to raise money to guarantee refinanced loans for existing homeowners to lower their monthly payments is fundamentally flawed, almost certainly won't pass Congress, but it is political pandering of the first order. In an election year, is anyone surprised he would push something he knows won't happen while positioning himself as Rescuer-in-Chief? He can always blame Congress when it doesn't come to pass. The rest...