GM WOES - General Motors is planning to cut thousands of white-collar jobs and is also considering whether it should sell or stop production of more of its brands. In the past few years, GM has run up massive losses as U.S. auto sales plunged to a 15-year low in June.

WHERE THERE’S SMOKE, THERE’S FIRE – So said JP Morgan Chase Chief Executive Jamie Dimon in encouraging U.S. regulators to investigate whether people betting on a downturn in Bear Stearns’ stock deliberately brought down the investment bank.  According to Mr. Dimon, “This is worse than insider trading.  This is deliberate and malicious destruction of value and people’s lives.  They shouldn’t go to jail for a short period of time.”   Maybe the "powers that be" are listening...the SEC just announced that "it and other securities regulators immediately will conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices."  In addition, the August Vanity Fair has an article titled "Bringing Down Bear Sterns," a blow-by-blow account from insiders.

ENVIRONMENT OR ECOMOMY? - A CNN poll reveals that 49% of Americans prioritize environmental protection over economic growth versus 44% who say the economy should be the top priority. However, 73% of those polled favored expanding offshore drilling for oil and natural gas, although these actions are considered hazardous to the environment by many environmental advocates.

HOUSING LIFELINE – The Senate has finally passed its version of legislation that would extend help to homeowners at risk of foreclosure.  The Senate legislation must be reconciled with previously-passed House legislation and the final bill faces a threatened White House veto.  Click here for a recap of the Senate bill.  

CLASS ACTION COST 4,000 JOBS - UnitedHealth agreed to pay more than $900 million in settlement funds to resolve class-action lawsuits stemming from allegations that it gave executives too much control over stock options. The company then announced that it will be eliminating 4,000 jobs by streamlining technology, back-office support, network management and clinical operations in an effort to cut costs.  Bet they keep the executives and lawyers.

GRASSO WINS - A lawsuit contesting a $187.5 million pay package for former New York Stock Exchange chairman Richard Grasso has been dismissed. The case was dismissed by the New York Supreme Court Appellate Division on the grounds that former New York Attorney General Eliot L. Spitzer no longer had authority to continue the action since the NYSE became a for-profit company in 2006.

HAVE MERCY ON INVESTORS – In an open “memo” to the SEC, investor advocate Jacob Zamansky states that, “Our financial system is broken, and individual investors must once again pay the price for Wall Street’s unbridled greed.  Someone needs to speak for these wronged investors, and the SEC is failing them.”  Read the entire article at BusinessWeek.com.  

EPA HAS “HUMAN LIFE VALUE” - According to the Environmental Protection Agency, the "value of a statistical life" for all Americans is $6.9 million. That is a drop of nearly $1 million from just five years ago. Not sure how this figure is calculated but, believe it or not, when drawing up regulations, government agencies put a value on human life and then weigh the costs versus the lifesaving benefits of a proposed rule. For example, let’s consider a hypothetical regulation that costs $18 billion to enforce, but will prevent 2,500 deaths. At the old figure of $7.8 million per person, the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted. Some environmentalists accuse the Bush administration of changing the value to avoid tougher rules -- a charge the EPA denies.

• Do you have a guaranteed income stream? You want some kind of income that's predictable and not subject to investment fluctuations. BTW, delaying Social Security will net you between 7% and 8% higher checks for each year you delay.

• Do you have liquid assets? Workers without a traditional pension need to have cash that can be spent immediately upon retirement. Many say that, in a declining market, if you need to sell stocks to produce income to live off of, you shouldn't retire.

• Do you have a retirement distribution strategy? Consider having enough money so that withdrawing 4% to 5% each year will cover all your bills.

• Do you have health insurance? If you retire prior to age 65, when Medicare eligibility kicks in, you'll need to find another source of health insurance. Even after qualifying for Medicare, some studies have found couples will need around $225,000 to pay for out-of-pocket expenses like premiums, deductibles, and copays.

• Do you have a Plan B? Circumstances often complicate retirement plans. You could be laid off, develop a health problem, or have to care for a frail relative. Don't fall in love with a specific retirement date or a certain lifestyle. Maintaining good health and insurance for disability and long-term care can help mitigate some of these risks, but you may have to downsize your standard of living.

• Consider working longer or a “post retirement” job. As above, working just one extra year gives your retirement savings more time to accrue, let's you delay tapping your nest egg, shortens the period your savings will need to last, and allows you to get higher Social Security checks for life. And many jobs also provide valuable health insurance. If you can find a job you enjoy, even one extra year of work can raise your standard of living throughout your retirement.