Utah's relatively low rate of unemployment is a good thing for the state budget. Some states are running out of funds to pay unemployment claims. Stateline.org reports that Michigan, which has the nation's higest unemployment rate at 8.9%, is being forced to borrow from the federal government to pay unemployment benefits. Unemployment insurance trust funds are in danger of insolvency in California, Michigan, Missouri, New York, Ohio, South Carolina and Wisconsin. According to the National Employment Law Project, a policy group based in New York that advocates on behalf of the unemployed, 11 additional states are facing financial challenges paying their jobless benefits. California, which has a 7.3% unemployment rate, could see a $1.6 billion deficit in their unemployment fund by the end of next year. South Carolina only has enough money to pay unemployment benefits until the middle of January 2009. Experts say many states have not built up their trust funds during economic prosperity, and it will be hard to get out in front of this problem with a struggling economy.

The news never stops. Here are some stories you'll want to catch up on this morning... Any way you look at them, the numbers aren't pretty. The Dow lost 508 points yesterday, and 1400 points over the last five trading days. That translates to a drop of over 1/3rd in value over the last year. In another effort to get the markets moving in the right direction, this morning the Fed cut the federal funds rate by .5% to 1.5%. A new poll shows 53% of Americans think the $700 billion bailout bill was a "bail out" for Wall Street, while just 40% say it will help the struggling economy. The same poll found that 59% said the measure will treat taxpayers unfairly, while 52% said it would be a waste of money. Today's installment of "The Financial Crisis Knows No Borders" features the move by the UK to partly nationalize eight banks on the brink of failure. That move could cost the British government upwards of 50 billion pounds. If you're a gadget freak like me, you'll be interested in this next item. Not to be outdone by Google's Android phone, and the iPhone, Blackberry is launching their own touchscreen smart phone today - the "Storm." The phone will feature a touchscreen that "depresses and clicks" like a computer mouse.

"In the past a leader was a boss. Today’s leaders must be partners with their people.. they no longer can lead solely based on positional power". Source - http://www.woopidoo.com/business_quotes/power-quotes.htm

Good morning. Here's some stories you'll want to read to help get a jump on your day... You probably already feel the uncertainty from yesterday's tumble on Wall Street. The $700 billion bailout package is not calming the fears of investors, and many now wonder if the financial crisis is outpacing efforts by policymakers to contain it. In fact, the economic problems are beginning to circle the globe, leading some to wonder if the crisis will threaten the very existence of the European Union. A new poll shows 60% of Americans are anticipating the current economic problems to lead to another depression. However, economists say the situation is worsening into a painful recession, but it's a long way from becoming another depression. Draper and other up and coming areas of the Salt Lake valley are being hit hard by foreclosures. Some of the biggest losses are in Draper near the new LDS Temple. One real estate agent says most of the abandoned homes were purchased by investors or others looking to make a big profit. Now they sit empty. If there is one silver lining to the economy it's this. Oil prices are dropping, and that means gasoline prices are falling as well. One expert tells CNN that we'll see $3 gas within the next week or two.

The worst employment numbers in five years. That's the grim news from CNN as the new figures are out this morning. There was a net loss of 159,000 jobs in September, the ninth straight month the U.S. economy has lost jobs. The August job loss was revised to 73,000 jobs, taking year-to-date job losses to 760,000. "This marks a clear downshift in the economy," said Robert Dye, senior economist with PNC Financial Services Group. That's even worse than analysts expected, as they were looking for a loss of 101,000 jobs last month. Retailers shed 40,000 jobs last month - which does not bode well for the holiday shopping season. The private sector has lost nearly a million jobs since December. Only government and education and health services posted job gains. Government added 9,000 jobs while education and health services added 25,000 jobs. Experts say these new numbers signal a further weakening of the economy and a recession that should last until Spring of 2009.

Looks like the Technology Sector won't be immune to the credit crunch. Ben Worthen in the Wall Street Journal says that a recent survey of CIO's found that a majority are looking to cut back on their budgets - even by the end of the year. In past downturns CIOs felt as though they could nip away at their budgets, but this time they’re looking at an overhaul. Not only are they under pressure to shrink their budgets for 2009, but they’re trying to cut costs before the end of 2008, Joel Whitaker, senior director for the CIO Executive Board, tells the Business Technology Blog. “The turmoil on the street is hitting home,” he says. Worthen adds nearly a quarter of CIO's have instituted a hiring freeze, which means businesses may not have enough people on staff to finish already started projects on time.

Some news items for you this morning... Unless you were under a rock or the victim of an alien abduction yesterday, you already know about the Dow's historic plunge after the U.S. House rejected the proposed bailout plan. The drop took out $1.2 billion in value from the market. Now lawmakers are back to square one on plans to fix the financial crisis. Despite a freeze in the global credit market, some Utah banks are still lending. But it's very hard to get a loan. Some residential and industrual projects are in "pause mode," while others are finding it difficult to get a loan or mortgage without a good credit history. Another bank is no more due to the current market crisis, as Citigroup scooped up the remains of Wachovia for $2.2 billion. Citigroup will acquire Wachovia's $600 billion in deposits. If you're looking for a silver lining in the current mess, oil prices are still falling due to the unrest. Crude prices are under $100 as investors fear the global economic situation will reduce demand for oil. A judge has ordered Hexion Specialty Chemicals to honor it's $6.5 billion buyout of Huntsman Corp. The judge says Hexion had no grounds to back out of the deal. If Hexion doesn't honor the judge's order, Huntsman officials say they'll seek $3 billion in damages.

The Dow drops nearly 778 points after bailout bill fails in Congress. Biggest one-day point drop in history.

Steven Pearlstein from the Washington Post breaks down the solution to the financial crisis into one of two choices. Prevent an economic meltdown, or teach Wall Street a lesson? The financial situation is now downright scary. Don't look at the stock market -- that's not where the problem is. The problem is in the credit markets, which are quickly freezing. I won't bore you with technical indicators like Libor and Treasury swap spreads, but if you talk to people who work these markets every day, as I have, they report that the money markets are in worse shape than they were last August, or even during the currency crises of 1998. It's a very tight rope to walk, and if we're wrong, it could cost much more than $700 billion. Choices, choices...

Some stories that you should spend some time reading on this Friday morning... "This sucker could go down." That's what President Bush said after talks over the $700 billion bailout collapsed last night. Lawmakers plan to try again today. The Los Angeles Times has analysis here. More from BusinessWeek is here. Washington Mutual failed yesterday as well. It's the largest bank failure in U.S. history. JP Morgan Chase will assume control of the more than 2,300 branches today. The only bright spot is the FDIC did not have to draw on any of its reserves as a result of the collapse. HSBC announced they're cutting 1,100 jobs around the globe as a result of the credit crunch. Most of the cuts are back room jobs in the firms banking and markets firms. CNN reports that new home sales fell to a 17-year low in August. It's the slowest pace since 1991, right before the first gulf war.