Aware Brain

Investors are trading down most stocks today, as realistic expectations for the survival of GM and Chrysler fade. The DJIA is getting close to a decade-old trading range from the late 1990’s. Sam Stovall, chief investment strategist at Standard & Poor’s, said Wall Street is nervous. As if consumer sentiment was not already low enough, Stovall said that the failure of a company with the name recognition of GM would “impact the psyche of the average consumer.”

At the same time, more local governments are forced to halt municipal services and programs, some of which are more critical. Clark County NV is looking at having to stop providing some family services. Peter Ediger of Family Promise told lawmakers they must make an effort to keep families intact “in these economic troubled times,” and Tom Waite of Boys Town of Nevada said with the economy performing poorly the stress on families becomes worse. The county school district is also going to stop block scheduling in its schools, a program that has allowed students to accumulate more credits in a shorter amount of time. Since block scheduling was implemented three years ago, the rate has jumped from 60 percent the first year to 84 percent last year, as well as allowing college-bound students  to build their academic resumes, according to school officials. It is possible that reduced municipal services could result in more high school drop-outs and increased family problems.

New Jersey could join California in furloughing state workers. Governor Jon Corzine will release revenue numbers later today, and says giving state employees two days off without pay this spring would save $35 million. He says layoffs may be necessary if his plan is not implemented.

Charlotte NC was the site of another mobbed job fair today. Lines stretched around the block as unemployed workers waited two hours to speak with company representatives. “I’m applying everywhere that I can think of,” graphic artist Pamela Williams told local TV station NewsChannel 36. Williams said she has applied for several jobs since November, but she hasn’t received any offers. Analysts say they expect the unemployment rate to grow in coming months.

Colorado lawmakers were told that their $1 billion state budget deficit will continue for at least two years. Lawmakers are nervously awaiting a March forecast that could show revenues poised to slip even more. Rep. Frank McNulty, said that part of a solution would be to look at cutting eligibility to social programs such as the Children’s Basic Health Plan.