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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (42343)	12/7/2005 1:50:31 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Heating bill bump to hit 5-year high By Barbara Hagenbaugh, USA TODAY WASHINGTON — The Energy Department is warning consumers to get ready for the steepest rise in home heating bills in five years this winter. Homeowners on average will see a 25.7% increase in their heating costs from a year ago, the government said Tuesday. That's down a bit from a 28.1% increase forecast last month, but if realized, the gain would be the biggest since the 2000-01 season. Average heating bills rose 12% last season. BIGGER BILLS Average U.S. winter heating bill: 1999 $564 2000 $774 2001 $551 2002 $672 2003 $702 2004 $786 2005 $989* * Forecast Source: Energy Information Admin., Dept. of Energy The sharp jump in costs will hit low-income and fixed-income households the hardest. Mark Wolfe, executive director of the National Energy Assistance Directors Association, said a few percentage points would make little difference to those struggling to make ends meet. "It's going to be a very expensive winter," said Wolfe, noting that government heating assistance for low-income households has not adjusted for the rise in costs. "We are still looking at a potential public health crisis." Natural gas users are expected to have the biggest increases in their heating bills this winter. Homeowners who use natural gas are expected to pay $1,024 to heat their homes from October through March, up 37.8% from last season. Last year, homeowners who use natural gas saw a 13.4% increase in their heating bills. Approximately 55% of U.S. homes are heated with natural gas. Louise Pleasanton, 74, said her last natural gas bill for her home in Brentwood, Mo., was $124 for a period when she usually pays between $80 to $90. She's worried she'll be unable to pay the next bill when it comes. "It's pretty tough," said the retired administrative assistant, who lives primarily on Social Security. "I'm pretty much down to the bare bones now." Like last year, heating oil customers are expected to have the biggest tab this winter, the Energy Department said. Those who heat their homes with heating oil are expected to pay $1,454 on average, up 21.3% from last year. Although down from a 27.2% increase forecast last month, it would come on top of a 32.7% gain last year. Homeowners who use electricity will pay $763 in heating costs this winter, up 6.5% from last year, the Energy Department said. High heating costs can also hurt some businesses and the overall economy if consumers have to cut spending to pay their heating bills. But so far, prices aren't high enough to cause major problems in an otherwise healthy economy, said Richard Yamarone of Argus Research. Still, heating costs likely will "take a pretty large chunk out of consumer spending, which, of course, is the heart of the economy," he said. Energy officials said in a monthly report that they lowered their cost forecast after relatively milder fall temperatures led to lower-than-expected heating demand. But with energy costs still high, the officials warned their estimates could change with the weather. "Should colder weather prevail, expenditures could be significantly higher," the report said.

To: Knighty Tin who wrote (42343)	12/7/2005 2:47:09 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Ford to slash up to 30,000 jobs, 10 plants: report NEW YORK (MarketWatch) - Ford Motor Co., in a move aimed at bringing its costs in line with its flagging U.S. business, plans to slash up to 30,000 jobs and close at least 10 plants in the next five years, according to a report published Wednesday. Wall Street embraced the news in midday trading, with shares of Ford moving as high as $8.29, up 2%, despite a declining broader market. [gee why dont they fire everyone to get share price up to $10? - Mish] The Dearborn, Mich.-based automaker will present the restructuring plans, dubbed the "Way Forward", to the board of directors on Wednesday, the Detroit News reported, citing sources familiar with the situation. The plan, expected to be announced Jan. 23, includes the departure of as many as seven top executives. Ford spokesman Oscar Suris declined to comment on what he described as "speculative scenarios" from the media. "A comprehensive plan is coming in January and it won't be solely about cutting costs," he said. Mark Fields, new president of Ford's Americas division, is scheduled to present the proposal for changes through 2011, with cuts deeper than many observers expected, the report said. A previous restructuring announced by Chairman and Chief Executive Bill Ford Jr. would have cut about 20,000 job cuts in its North American operations. "Ford, like GM, has too much overhead, too many people and too many plants to support their current business," said Burnham Securities analyst David Healy. The plant closures would likely include assembly lines St. Paul, Minn., and St. Louis, Mo., where it makes Explorer SUVs. "This is part one of a two part program to get Ford back into the black in North America," Healy said. "Closing plants and cutting jobs is the easy part. The challenge will be part two - sprucing up the product line." marketwatch.com ============================================================ 30,000 Ford jobs - poof 30,000 GM jobs - poof Who will be able to afford their cars? Mish