A new normal? That’s what one financial services guru says America consumers can expect now that the housing market has collapsed and people are losing their jobs in droves. “The worst is yet to come," adds Howard Davidowitz, chairman of Davidowitz & Associates. He thinks that the once lofty American's standard of living is undergoing a "permanent change" – with key financial assets gone that aren’t coming back; such as . . . -- An $8 trillion negative wealth effect from declining home values. -- A $10 trillion negative wealth effect from weakened capital markets. -- A $14 trillion consumer …

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The stock market seem to be stabilizing, aided by news that the Federal Reserve will buy up short-term debt in order to get companies financially interacting again. I won't get into the gruesome details, but buying up short term debt (known as commercial paper on Wall Street - a mechanism that enables companies to borrow money overnight or or over the course of a few days) is an area that the Federal Reserve rarely gets into. Of course, these are historic times and the Fed will every tool in its arsenal to reverse the sliding economy. That's what we're seeing …

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The impact from the ongoing credit crisis is finally starting to translate into layoffs for the tech sector. The folks I'm talking to say that AT&T, Apple, Yahoo, Sun, eBay, Microsoft, Nortel, HP, EDS, and even Google are going to be passing around pink slips with alarming aggressiveness in weeks to come. Sun looks like its ready to layoff 2,500 employees, Yahoo up to 3,500, Apple about 1,500, and HP will slice off a whopping 25,000 staffers after its buyout of EDS. Industry statistics say that about 1,417,000 tech staffers are out of work so far this year, and that's …

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There’s an old joke that the definition of a successful politician is a person who can stand on a fence and make voters believe it’s a platform. That’s a tall order, however, for presidential candidates John McCain and Barack Obama – especially when it comes to their economic policies (and that goes double for the tech sector). Americans are well aware that the economy isn’t exactly operating on all cylinders and will make the economic policies of each candidate a priority before they decide who earns their vote. The fact that McCain shook the political world and chose conservative Alaska …

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Surprising news from the Yahoo camp late this afternoon, with Yahoo announcing that it will begin a limited test of Google Inc.'s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo’s own search results. According to a statement from Yahoo, the test will apply only to traffic from Yahoo.com in the U.S. and will not include the company’s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo search queries. The news sent shock waves through Wall Street, …

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Today's trading was flat, with most of the tech news coming from the Yahoo & Microsoft camps. Microsoft seems to be getting all Tony Soprano-like on the Yahoo board, issuing a pointed letter that emphasized an April 26 deadline for accepting its $44.6 billion takeover bid for the mega-web portal. Reportedly, Microsoft chief Steve Ballmer threatened Yahoo, saying if its board of directors board doesn't relent, he would slash Microsoft bid's and demand that Yahoo's shareholders request a new board that would see things in their favor - and in Microsoft's favor, as well. Yahoo returned fire with a defiant …

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Kind of a quiet week in the technology corner of the stock market. That's not so bad, as people can exhale and figure out if the latest Federal Reserve move to cut the Fed Funds rate by .75 points signals the bottom (finally) of the bearish stock market. if so, then buyers will move back into the market and some semblance of sanity can prevail as the big financial houses move to stabilize themselves amidst the aftershocks of the credit and lending crisis. One tech story that only grows bigger, however, is the Yahoo-Microsoft face-off. On Tuesday, Yahoo's directors made …

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The End.