Fed, ECB, BOE Cut Rates in Unprecedented Response to Combat Credit Freeze The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression.
U.S. Stocks Retreat as Recession Concerns Outweigh Rate Cuts; Alcoa Drops U.S. stocks fell for a sixth day as unprecedented interest-rate cuts by six central banks failed to convince investors the global economy will avoid a recession.
Pending Home Resales in U.S. Increase 7.4% as Foreclosures Reduce Prices More Americans unexpectedly signed contracts in August to purchase previously owned homes as mounting foreclosures pushed down prices.
Treasury Will Offer More Debt Amid `Severe Dislocations' in Credit Markets The U.S. Treasury said it will sell more debt to meet demand for government securities and alleviate ``protracted shortages,'' said Karthik Ramanathan, the department's head of debt management.
GE, American Express Reduce Commercial Paper Yields After Global Rate Cuts General Electric Co. and American Express Co. reduced their commercial paper yields, while an index of short-term borrowing costs rose, showing companies are struggling to finance themselves after global interest-rate cuts.
Russia, Indonesia Halt Trading in Worst Emerging-Market Rout in 20 Years Russia, Indonesia, Ukraine and Romania shut their stock exchanges and Brazilian stocks fell to the lowest in two years in the worst week for emerging markets in at least two decades on concern that a deepening credit crisis will halt global growth.
Full Version: Economic and Financial News
US Financial System Bailout: Reverse Socialism
- Prudent Bear 10/8/2008
Creating a Great Depression
- Prudent Bear 10/8/2008
Losses on Bad U.S. Assets Could Top $1.4 Trillion
- The Wall Street Journal 10/8/2008
Investors Seeking Safety Flock to Yen
- The Wall Street Journal 10/8/2008
Forget Logic; Fear Appears to Have Edge
- The New York Times 10/8/2008
The Wall Street Bust
- Prudent Bear 10/8/2008
Retirement Accounts Have Lost $2 Trillion
- Chicago Tribune 10/8/2008
For the New Contagion, the Same Old Prescriptions
- Washington Post 10/8/2008
With Bonds in Trouble, States Seek Federal Help
- The New York Times 10/8/2008
September Retail Sales Reflect the Slowdown
- The New York Times 10/8/2008
Nervous Shoppers Pull Back
- CNN Money
- Prudent Bear 10/8/2008
Creating a Great Depression
- Prudent Bear 10/8/2008
Losses on Bad U.S. Assets Could Top $1.4 Trillion
- The Wall Street Journal 10/8/2008
Investors Seeking Safety Flock to Yen
- The Wall Street Journal 10/8/2008
Forget Logic; Fear Appears to Have Edge
- The New York Times 10/8/2008
The Wall Street Bust
- Prudent Bear 10/8/2008
Retirement Accounts Have Lost $2 Trillion
- Chicago Tribune 10/8/2008
For the New Contagion, the Same Old Prescriptions
- Washington Post 10/8/2008
With Bonds in Trouble, States Seek Federal Help
- The New York Times 10/8/2008
September Retail Sales Reflect the Slowdown
- The New York Times 10/8/2008
Nervous Shoppers Pull Back
- CNN Money
European stock markets in freefall following Paris financial summit- by Peter Schwarz - 2008-10-07
Panic grips global financial markets- by Barry Grey - 2008-10-07
Thursday is D-Day Thursday's auction for Lehman's credit default swaps (CDS) - 2008-10-06
Myth Busting On the Way To an Economic Solution - A. Vargas Llosa, TNR
Good Policies Can Save the Economy - Lee Ohanian, Wall Street Journal
The Bailout and the Vanishing Taxpayer - Steven Malanga, RCM
Give the Rescue Plan Time - Editorial, Los Angeles Times
A Better Bailout with Actual Foundation - Nicole Gelinas, City Journal
Another Rescue But Still No Solution - David Wighton, Times of London
Ignoring Reality Has a Price - David Leonhardt, New York Times
SEC's Short-Seller Witch Hunt Nabs a Munchkin - J. Weil, Bloomberg
Bailout For Detroit's Bankrupt - Thomas Cooley, Forbes
Globalizing The Crisis Response - Bergsten & Subramanian, Wash Post
Let's Call Off the Recession - Louis Woodhill, RealClearMarkets
The European Union's Do-Nothings - Editorial, Investor's Business Daily
Off The Street
Keep Your Eye on the Credit Markets’ Ball - Vinny Catalano's Blog
Progress Never Easy in the Dismal Science - J. Picerno, Capital Spectator
Causes of the Mortgage Meltdown - Mark Perry, Carpe Diem
The Burst Commodity Bubble - Felix Salmon, Market Movers
Are We in a Recession? Probably - Steve Verdon, Outside The Beltway
Recession Announcement Coming Soon? Probably - Real Time Economics
Transcripts & Videos
John Tamny on the Government Bailout - Neil Cavuto, Fox Business
Interest Rates Need to Be Cut - Jim Cramer, TheStreet.com
U.S. Stocks Fall For Fifth Day As Credit Concerns Remain. - Bloomberg
It's a Good Idea for The Fed To Buy Commercial Paper - TheStreet.com
Good Policies Can Save the Economy - Lee Ohanian, Wall Street Journal
The Bailout and the Vanishing Taxpayer - Steven Malanga, RCM
Give the Rescue Plan Time - Editorial, Los Angeles Times
A Better Bailout with Actual Foundation - Nicole Gelinas, City Journal
Another Rescue But Still No Solution - David Wighton, Times of London
Ignoring Reality Has a Price - David Leonhardt, New York Times
SEC's Short-Seller Witch Hunt Nabs a Munchkin - J. Weil, Bloomberg
Bailout For Detroit's Bankrupt - Thomas Cooley, Forbes
Globalizing The Crisis Response - Bergsten & Subramanian, Wash Post
Let's Call Off the Recession - Louis Woodhill, RealClearMarkets
The European Union's Do-Nothings - Editorial, Investor's Business Daily
Off The Street
Keep Your Eye on the Credit Markets’ Ball - Vinny Catalano's Blog
Progress Never Easy in the Dismal Science - J. Picerno, Capital Spectator
Causes of the Mortgage Meltdown - Mark Perry, Carpe Diem
The Burst Commodity Bubble - Felix Salmon, Market Movers
Are We in a Recession? Probably - Steve Verdon, Outside The Beltway
Recession Announcement Coming Soon? Probably - Real Time Economics
Transcripts & Videos
John Tamny on the Government Bailout - Neil Cavuto, Fox Business
Interest Rates Need to Be Cut - Jim Cramer, TheStreet.com
U.S. Stocks Fall For Fifth Day As Credit Concerns Remain. - Bloomberg
It's a Good Idea for The Fed To Buy Commercial Paper - TheStreet.com
Fed, Central Banks Cut Rates to Aid World Economy- APThe Federal Reserve and six other major central banks from around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.
- Stocks fluctuate after emergency rate cut- AP
- Central banks, governments try to contain crisis- AP
- Retailers report weak September sales- AP
- Bank of America to buy back $4.7B in securities- AP
- Pending home sales up 7.4 percent in August- AP
- Trading on both Russian stock markets halted- AP
- Oil down after surprise jump in US crude supplies- AP
- Wachovia, Citigroup, Wells Fargo extend standstill- AP
- No Quick Fix: Roubini Forecasts Worsening Economy, 2-Year
Stocks Sink After Rate Cuts Fail to Stem Recession Fear- APWall Street has tried but failed to find some stability from an interest rate cut by the Federal Reserve and other big central banks. Stocks wavered throughout the day, moving in and out of positive territory and finally closing with another loss.
- Paulson says global markets remain strained- AP
- Fed, central banks cut rates to aid world economy- AP
- Oil prices skid to 2008 low on falling demand- AP
- Down market hits 1-year mark with no clear bottom- AP
- Pending home sales up 7.4 percent in August- AP
- Wall Street panic rolling over consumers worldwide- Reuters
- Retailers report weak September sales- AP
- AIG says lavish event was mischaracterized- Reuters
- Fire Paulson, Bernanke, and Spend Like Mad: Advice for the Next President- Tech Ticker
ECB Offers Banks Unlimited Cash for Six Days in Bid to Ease Money Markets The European Central Bank brought forward plans to lend banks unlimited cash and pumped a record $100 billion in overnight funds into the financial system after an interest-rate cut failed to soothe tensions in money markets.
U.S. Entered a Recession as Record Consumption Boom Ended, Economists Say By almost all accounts, the U.S. is now in a recession, according to economists surveyed by Bloomberg News.
Paulson Signals U.S. May Invest in Lenders as Part of $700 Billion Rescue Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.
South African Central Bank Leaves Benchmark Interest Rate Unchanged at 12% South Africa's central bank left its benchmark interest rate unchanged for a second consecutive meeting as the global credit crisis threatened to undermine economic growth, even as inflation reached a record.
Trichet Engineers `Regime Change' at ECB as Crisis Engulfs European Banks European Central Bank President Jean- Claude Trichet is opening up the floodgates as the credit crisis threatens to cripple the region's banking system.
U.S. Initial Jobless Claims Fall 20,000 to 478,000 as Storm Fallout Eases Fewer Americans filed first-time applications for unemployment benefits last week as job losses related to the Gulf Coast hurricanes subsided.
South Korea, Taiwan, Hong Kong Cut Interest Rates Following Global Easing South Korea, Taiwan and Hong Kong cut interest rates a day after reductions by the U.S., Europe and China to stem damage from the global financial crisis.
China Cuts Rate to Protect `Big Enchilada' Economy, While Japan Stagnates Wednesday may go down as the day the economic balance of power shifted in Asia.
Bank of England May Follow Rate Cut With `Another Big One,' Allsopp Says Former Bank of England policy maker Christopher Allsopp said the U.K. central bank may follow its half-point interest rate cut with another reduction if the financial crisis doesn't abate.
Fear Trumps Greed as Market Worries Amplify News, Paralyze World Economy Greed and fear are the emotions that rule markets. Fear is winning.
Bernanke, Paulson Seek Global Help as Credit Crisis Rebuffs U.S. Efforts Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson are discovering both the leeway and limits they have as policy makers as they struggle to combat the 14-month-old credit crisis.
U.S. Entered a Recession as Record Consumption Boom Ended, Economists Say By almost all accounts, the U.S. is now in a recession, according to economists surveyed by Bloomberg News.
Paulson Signals U.S. May Invest in Lenders as Part of $700 Billion Rescue Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.
South African Central Bank Leaves Benchmark Interest Rate Unchanged at 12% South Africa's central bank left its benchmark interest rate unchanged for a second consecutive meeting as the global credit crisis threatened to undermine economic growth, even as inflation reached a record.
Trichet Engineers `Regime Change' at ECB as Crisis Engulfs European Banks European Central Bank President Jean- Claude Trichet is opening up the floodgates as the credit crisis threatens to cripple the region's banking system.
U.S. Initial Jobless Claims Fall 20,000 to 478,000 as Storm Fallout Eases Fewer Americans filed first-time applications for unemployment benefits last week as job losses related to the Gulf Coast hurricanes subsided.
South Korea, Taiwan, Hong Kong Cut Interest Rates Following Global Easing South Korea, Taiwan and Hong Kong cut interest rates a day after reductions by the U.S., Europe and China to stem damage from the global financial crisis.
China Cuts Rate to Protect `Big Enchilada' Economy, While Japan Stagnates Wednesday may go down as the day the economic balance of power shifted in Asia.
Bank of England May Follow Rate Cut With `Another Big One,' Allsopp Says Former Bank of England policy maker Christopher Allsopp said the U.K. central bank may follow its half-point interest rate cut with another reduction if the financial crisis doesn't abate.
Fear Trumps Greed as Market Worries Amplify News, Paralyze World Economy Greed and fear are the emotions that rule markets. Fear is winning.
Bernanke, Paulson Seek Global Help as Credit Crisis Rebuffs U.S. Efforts Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson are discovering both the leeway and limits they have as policy makers as they struggle to combat the 14-month-old credit crisis.
Fed, ECB, BOE, China Cut Interest Rates as Credit Crisis Hammers Economies The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression.
Fed Will Purchase U.S. Commercial Paper in Attempt to Ease Credit Crisis The Federal Reserve will create a special fund to buy U.S. commercial paper, seeking to unblock the financing tool that drives everyday commerce for American businesses.
Fed Doubles TAF Sales to $900 Billion, Mulls Other Steps to Unlock Markets The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.
Fed Will Purchase U.S. Commercial Paper in Attempt to Ease Credit Crisis The Federal Reserve will create a special fund to buy U.S. commercial paper, seeking to unblock the financing tool that drives everyday commerce for American businesses.
Fed Doubles TAF Sales to $900 Billion, Mulls Other Steps to Unlock Markets The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.
Libor Holds Central Banks Hostage as London Rate Freezes Worldwide Lending Danilo Coronacion oversees 15 percent of global coconut oil production at CIIF Oil Mills Group in the Philippines. These days, he spends a lot of time worrying about events half a world away in London. The name of his pain? Libor.
Fear Trumps Greed as Market Worries Amplify News, Paralyze World Economy Greed and fear are the emotions that rule markets. Fear is winning.
Bernanke's Weekend Calls to Trichet, King Laid Ground for Global Rate Cut Federal Reserve Chairman Ben S. Bernanke's push for the broadest coordinated interest-rate cut in history started with a weekend of telephone conversations with Jean-Claude Trichet and Mervyn King.
BlackRock, Pimco Submit Bids to Manage Mortgage Assets for Treasury Rescue BlackRock Inc. and Pacific Investment Management Co. submitted proposals to manage troubled mortgage- backed securities in the biggest portion of the Treasury's $700 billion financial-rescue program, people familiar with the matter said.
Royal Bank of Scotland Loses Credibility After Goodwin's ABN Amro Purchase Royal Bank of Scotland Group Plc Chief Executive Officer Fred Goodwin may have wanted to win more than was good for him.
Fear Trumps Greed as Market Worries Amplify News, Paralyze World Economy Greed and fear are the emotions that rule markets. Fear is winning.
Bernanke's Weekend Calls to Trichet, King Laid Ground for Global Rate Cut Federal Reserve Chairman Ben S. Bernanke's push for the broadest coordinated interest-rate cut in history started with a weekend of telephone conversations with Jean-Claude Trichet and Mervyn King.
BlackRock, Pimco Submit Bids to Manage Mortgage Assets for Treasury Rescue BlackRock Inc. and Pacific Investment Management Co. submitted proposals to manage troubled mortgage- backed securities in the biggest portion of the Treasury's $700 billion financial-rescue program, people familiar with the matter said.
Royal Bank of Scotland Loses Credibility After Goodwin's ABN Amro Purchase Royal Bank of Scotland Group Plc Chief Executive Officer Fred Goodwin may have wanted to win more than was good for him.
Libor Dollar Rate Jumps to Highest Level This Year as Credit Stays Frozen The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day.
Paulson Signals U.S. May Invest in Lenders as Part of $700 Billion Rescue Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.
Kaupthing Bank Seized by Regulators as Iceland's Financial Turmoil Worsens Iceland's government seized control of Kaupthing Bank hf, the nation's biggest bank, completing the takeover of a banking industry that collapsed under the weight of foreign debt.
FerroChina Can't Repay $104 Million Due to Crisis, Shuts Down Steel Mills FerroChina Ltd., a Chinese steelmaker, said it is unable to repay loans totaling 706 million yuan ($104 million) because of the ``current economic crisis,'' and a further 4.52 billion yuan in loans and notes may also be at risk.
AIG May Tap $37.8 Billion from Federal Reserve, Following $85 Billion Loan American International Group Inc., the insurer taken over by the government, may access $37.8 billion from the Federal Reserve Bank of New York, in addition to the $85 billion loan that helped it stave off bankruptcy.
Trichet Engineers `Regime Change' at ECB as Crisis Engulfs European Banks European Central Bank President Jean- Claude Trichet is opening up the floodgates as the credit crisis threatens to cripple the region's banking system.
Paulson Signals U.S. May Invest in Lenders as Part of $700 Billion Rescue Treasury Secretary Henry Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.
Kaupthing Bank Seized by Regulators as Iceland's Financial Turmoil Worsens Iceland's government seized control of Kaupthing Bank hf, the nation's biggest bank, completing the takeover of a banking industry that collapsed under the weight of foreign debt.
FerroChina Can't Repay $104 Million Due to Crisis, Shuts Down Steel Mills FerroChina Ltd., a Chinese steelmaker, said it is unable to repay loans totaling 706 million yuan ($104 million) because of the ``current economic crisis,'' and a further 4.52 billion yuan in loans and notes may also be at risk.
AIG May Tap $37.8 Billion from Federal Reserve, Following $85 Billion Loan American International Group Inc., the insurer taken over by the government, may access $37.8 billion from the Federal Reserve Bank of New York, in addition to the $85 billion loan that helped it stave off bankruptcy.
Trichet Engineers `Regime Change' at ECB as Crisis Engulfs European Banks European Central Bank President Jean- Claude Trichet is opening up the floodgates as the credit crisis threatens to cripple the region's banking system.
Stocks Fall Day After Heavy Selling- ReutersStocks surrendered early gains after IBM Corp. reaffirmed its profit forecast and investors hoped the government might take ownership stakes in banks to help stabilize the financial industry.
- White House considers ownership stakes in banks- AP
- Iceland suspends stock trading, creates new bank- AP
- European markets recover lost ground- AP
- Traders look for direction on oil market- AP
- 3 Asian central banks slash interest rates- AP
- Jobless claims drop from 7-year high- AP
- August wholesale inventories up, sales drop- Reuters
- IBM 3Q profit a positive sign for tech sector- AP
- Treasury Finally Sees Light: A New-and-Improved Bailout Plan- ClusterStock.com
Libor Dollar Rate Jumps to Highest in Year; Credit Stays Frozen
- Bloomberg
- 10/09/2008 07:18 AM
- Bloomberg
- 10/09/2008 07:56 AM
- AP
- 10/09/2008 08:46 AM
G-7 Gathers With `Backs Against the Wall' as Crisis Grips Global Economy Finance ministers and central bankers from the Group of Seven nations meet today facing a breakdown in investor confidence in their ability to end the credit freeze endangering the global economy.
U.S. Treasury Plans Bank-Stake Purchases Within Weeks to Shore Up Capital The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.
Fed's Loans to Commercial Banks Double to $98 Billion as Money Rates Soar The Federal Reserve's direct loans to commercial banks almost doubled to a record $98.1 billion yesterday from a week before as the credit freeze sent money- market rates soaring.
Singapore Ends Policy of Currency Gains as Economy Enters Into Recession Singapore fell into the first recession since 2002 as manufacturing slumped, prompting the central bank to end a policy favoring gains in its currency in an effort to support the economy.
Bank of Japan Members Said Economic Recovery May Be Delayed, Minutes Show Bank of Japan policy board members said last month the economy's recovery may be delayed as growing tension in global financial markets threatens exports, meeting minutes show.
EU Crippled in Crisis as 27 Governments Confront a Single Hobbled Economy It took the European Union almost three decades to agree on what could legitimately be called chocolate. That doesn't bode well for its handling of the worst financial crisis in its history.
IMF, Financial Stability Forum Hold an Emergency Meeting on Mouting Crisis The International Monetary Fund and Financial Stability Forum held an emergency meeting of officials from 27 countries today to discuss the mounting financial crisis.
Asia-Pacific Bond Risk Jumps, Australia's Benchmark Index Trades at Record The perceived risk of Asia-Pacific companies and governments defaulting on their debt rose after interbank lending rates jumped. Australia's benchmark for credit risk traded at a record.
Iceland Premier Haarde Tells Countrymen to Go Fishing After Banks Implode Iceland Prime Minister Geir Haarde has some advice for his fellow citizens after the country's banking system imploded: Go fishing.
Philippine Export Growth Accelerated to 6.5% in August on Demand From Asia Philippine exports rose at a faster pace in August as increased sales to China and Japan offset falling shipments to the U.S.
Libor Holds Central Banks Hostage as London Rate Freezes Worldwide Lending Danilo Coronacion oversees 15 percent of global coconut oil production at CIIF Oil Mills Group in the Philippines. These days, he spends a lot of time worrying about events half a world away in London. The name of his pain? Libor.
U.S. Treasury Plans Bank-Stake Purchases Within Weeks to Shore Up Capital The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.
Fed's Loans to Commercial Banks Double to $98 Billion as Money Rates Soar The Federal Reserve's direct loans to commercial banks almost doubled to a record $98.1 billion yesterday from a week before as the credit freeze sent money- market rates soaring.
Singapore Ends Policy of Currency Gains as Economy Enters Into Recession Singapore fell into the first recession since 2002 as manufacturing slumped, prompting the central bank to end a policy favoring gains in its currency in an effort to support the economy.
Bank of Japan Members Said Economic Recovery May Be Delayed, Minutes Show Bank of Japan policy board members said last month the economy's recovery may be delayed as growing tension in global financial markets threatens exports, meeting minutes show.
EU Crippled in Crisis as 27 Governments Confront a Single Hobbled Economy It took the European Union almost three decades to agree on what could legitimately be called chocolate. That doesn't bode well for its handling of the worst financial crisis in its history.
IMF, Financial Stability Forum Hold an Emergency Meeting on Mouting Crisis The International Monetary Fund and Financial Stability Forum held an emergency meeting of officials from 27 countries today to discuss the mounting financial crisis.
Asia-Pacific Bond Risk Jumps, Australia's Benchmark Index Trades at Record The perceived risk of Asia-Pacific companies and governments defaulting on their debt rose after interbank lending rates jumped. Australia's benchmark for credit risk traded at a record.
Iceland Premier Haarde Tells Countrymen to Go Fishing After Banks Implode Iceland Prime Minister Geir Haarde has some advice for his fellow citizens after the country's banking system imploded: Go fishing.
Philippine Export Growth Accelerated to 6.5% in August on Demand From Asia Philippine exports rose at a faster pace in August as increased sales to China and Japan offset falling shipments to the U.S.
Libor Holds Central Banks Hostage as London Rate Freezes Worldwide Lending Danilo Coronacion oversees 15 percent of global coconut oil production at CIIF Oil Mills Group in the Philippines. These days, he spends a lot of time worrying about events half a world away in London. The name of his pain? Libor.
Bernanke, Paulson Seek Global Help as Credit Crisis Defeats U.S. Efforts Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson are discovering both the leeway and limits they have as policy makers as they struggle to combat the 14-month-old credit crisis.
Fed's Loans to Commercial Banks Double to $98 Billion as Money Rates Soar The Federal Reserve's direct loans to commercial banks almost doubled to a record $98.1 billion yesterday from a week before as the credit freeze sent money- market rates soaring.
Fed's Rosengren Says Credit Crisis May Slow Consumer Spending, Harm Growth The outlook for U.S. economic growth may worsen amid the credit crisis, as many large financial institutions refuse to lend to one another for even just a few days, Boston Federal Reserve Bank President Eric Rosengren said.
Fed's Loans to Commercial Banks Double to $98 Billion as Money Rates Soar The Federal Reserve's direct loans to commercial banks almost doubled to a record $98.1 billion yesterday from a week before as the credit freeze sent money- market rates soaring.
Fed's Rosengren Says Credit Crisis May Slow Consumer Spending, Harm Growth The outlook for U.S. economic growth may worsen amid the credit crisis, as many large financial institutions refuse to lend to one another for even just a few days, Boston Federal Reserve Bank President Eric Rosengren said.
Mutual Fund Withdrawals Jump to Record $72 Billion as Investors Seek Haven Investors pulled a record $52.1 billion from U.S.-managed stock and bond mutual funds in the past week, seeking the safety of government-insured bank deposits as the financial crisis worsened.
Rising CD Rates Make Banks a Safe Harbor for Cash Amid Market Turmoil Banks are increasing rates on certificates of deposit, making them a good place to store money for customers seeking safety during the market turmoil, financial analysts said.
Russia Leads Emerging-Market Share Gains, Snapping Six-Day Record Decline Russia's Micex Index rallied as much as 17 percent and emerging market stocks rose the most in three weeks as coordinated central bank rate cuts spurred investors to start buying shares at the cheapest valuations in a decade.
Rising CD Rates Make Banks a Safe Harbor for Cash Amid Market Turmoil Banks are increasing rates on certificates of deposit, making them a good place to store money for customers seeking safety during the market turmoil, financial analysts said.
Russia Leads Emerging-Market Share Gains, Snapping Six-Day Record Decline Russia's Micex Index rallied as much as 17 percent and emerging market stocks rose the most in three weeks as coordinated central bank rate cuts spurred investors to start buying shares at the cheapest valuations in a decade.
ICHAEL R. SESIT
Me-First Attitude Won't Rescue Banks, Economy ``United we stand, divided we fall'' is a phrase attributed to people as varied as the 6th century B.C. Greek author Aesop and the American revolutionary patriot Patrick Henry.
MORE MICHAEL R. SESIT 
JOE MYSAK
Banking Meltdown Is Sure Recipe for Steakhouse Agita Do restaurant prices ever go down? MORE JOE MYSAK
JOHN F. WASIK
Rescue Legislation Contains Palliatives, No Cure While Washington's financial rescue program may not cure the credit crunch or the U.S. foreclosure crisis, there are numerous palliatives for Main Street savers, taxpayers and homeowners.
Me-First Attitude Won't Rescue Banks, Economy ``United we stand, divided we fall'' is a phrase attributed to people as varied as the 6th century B.C. Greek author Aesop and the American revolutionary patriot Patrick Henry.
MORE MICHAEL R. SESIT JOE MYSAK Banking Meltdown Is Sure Recipe for Steakhouse Agita Do restaurant prices ever go down?
MORE JOE MYSAK JOHN F. WASIK Rescue Legislation Contains Palliatives, No Cure While Washington's financial rescue program may not cure the credit crunch or the U.S. foreclosure crisis, there are numerous palliatives for Main Street savers, taxpayers and homeowners.
U.S. Has Dwindling Number of Tools in Economic Crisis - APThe government still has some unused options that might ease the credit and housing crises and brighten the economic outlook. But the options are shrinking.
- Treasury 'Actively' Looking to Buy Equity Stakes in Banks
- Economists: Recession Is Here
- Investors Pull $43B Out of Stock Mutual Funds in Past Week
- Retirement Savers Lost $2 Trillion in Past 15 Months
- What McCain and Obama Won't Say: There's No Money Left for Tax Cuts
- Meltdown 101: Investors Get Back to Shorting
- Roubini: Rate Cuts Reduce Crash Risk, but Dow 7,000 Likely 'Sometime Next Year'
- Manhattan Real Estate Prices Headed Downward
Snowballing sell-off drives Dow down 679 points - AP - 16 minutes ago
A stampede of selling that began in the waning minutes of trading on Wall Street spread to Asia on Friday, deepening a financial crisis that has defied all efforts to stop it. Asian markets plunge after huge Wall Street losses - AP - 15 minutes ago
A massive sell-off on Wall Street and escalating fears of a global recession sent Asian stocks plunging Friday, with Japan's benchmark index plunging more than 10 percent.
Swaggers turn to shudders a year after market high - AP - 8 minutes ago
Just a year ago, investors were swaggering as the stock market surged to an all-time high. Now, almost everyone on Wall Street and Main Street seems to be shuddering amid a frightening reversal of fortune that has erased $8.3 trillion in shareholder wealth in the past 366 days.
Wells Fargo plans to buy Wachovia; Citi ends talks - AP - 1 hour, 47 minutes ago
Wells Fargo emerged as the apparent victor in the battle for control of Wachovia bank Thursday night, after rival suitor Citigroup broke off talks with Wells Fargo and federal regulators but vowed to have its day in court.
Financial turmoil, weaker sales batter GM shares - AP - 2 minutes ago
Investors were watching to see whether General Motors Corp. shares will fall for a seventh straight session Friday as financial turmoil and a weakening global auto market have heightened worries that the automaker may be unable to pull out of its nosedive before it runs out of cash.
Airline shares hit market turbulence - AP - 18 minutes ago
Airline shares and oil prices used to move together like kids on a teeter-totter, with one rising while the other falls. But the financial crisis affecting the U.S. and other countries has thrown that conventional wisdom out the window.
Mid-sized Japanese insurer goes bankrupt - AP - 18 minutes ago
A medium-sized Japanese insurance company says it has gone bankrupt, becoming the first Japanese financial company to collapse on the fallout from the U.S. credit crisis.
Banks borrow record amount from Fed - AP - Thu 7:37 pm ET
Banks borrowed in record amounts from the Federal Reserve's emergency lending facility over the past week, while investment banks drew loans at a brisk -- though slightly lower -- pace, fresh proof of the credit problems gripping the country.
A stampede of selling that began in the waning minutes of trading on Wall Street spread to Asia on Friday, deepening a financial crisis that has defied all efforts to stop it. Asian markets plunge after huge Wall Street losses - AP - 15 minutes ago
A massive sell-off on Wall Street and escalating fears of a global recession sent Asian stocks plunging Friday, with Japan's benchmark index plunging more than 10 percent.
Swaggers turn to shudders a year after market high - AP - 8 minutes ago
Just a year ago, investors were swaggering as the stock market surged to an all-time high. Now, almost everyone on Wall Street and Main Street seems to be shuddering amid a frightening reversal of fortune that has erased $8.3 trillion in shareholder wealth in the past 366 days.
Wells Fargo plans to buy Wachovia; Citi ends talks - AP - 1 hour, 47 minutes ago
Wells Fargo emerged as the apparent victor in the battle for control of Wachovia bank Thursday night, after rival suitor Citigroup broke off talks with Wells Fargo and federal regulators but vowed to have its day in court.
Financial turmoil, weaker sales batter GM shares - AP - 2 minutes ago
Investors were watching to see whether General Motors Corp. shares will fall for a seventh straight session Friday as financial turmoil and a weakening global auto market have heightened worries that the automaker may be unable to pull out of its nosedive before it runs out of cash.
Airline shares hit market turbulence - AP - 18 minutes ago
Airline shares and oil prices used to move together like kids on a teeter-totter, with one rising while the other falls. But the financial crisis affecting the U.S. and other countries has thrown that conventional wisdom out the window.
Mid-sized Japanese insurer goes bankrupt - AP - 18 minutes ago
A medium-sized Japanese insurance company says it has gone bankrupt, becoming the first Japanese financial company to collapse on the fallout from the U.S. credit crisis.
Banks borrow record amount from Fed - AP - Thu 7:37 pm ET
Banks borrowed in record amounts from the Federal Reserve's emergency lending facility over the past week, while investment banks drew loans at a brisk -- though slightly lower -- pace, fresh proof of the credit problems gripping the country.
- Afternoon Reading: The $700 Billion Bailout's No Confidence Voteat The Wall Street Journal Online(Thu 3:22pm)
- The Looming Lehman CDS Unwindat The Wall Street Journal Online(Thu 2:45pm)
- The Financial Crisis: Views From the Private-Equity Frontat The Wall Street Journal Online
G-7 Gathers With `Backs Against the Wall,' Weighs Plan to Guarantee Loans Finance ministers and central bankers from the Group of Seven nations meet today facing a breakdown in investor confidence in their ability to end the credit freeze endangering the global economy.
Cost of U.S. Crisis Response Is Ballooning, Along With the Deficit, Debt The global financial crisis is turning into a bigger drain on the U.S. federal budget than experts estimated two weeks ago, ballooning the deficit toward $2 trillion.
World Needs 1.5 Percentage Point Rate Cut to Avert Disaster, Roubini Says Nouriel Roubini, the professor who two years ago predicted the financial crisis, said world financial officials should orchestrate interest-rate cuts of at least 1.5 percentage points to help avert a depression.
French Industrial Output Declines, Adding Evidence Economy Is In Recession French industrial production declined in August, further evidence that the second-largest economy of the 15 countries sharing the euro probably slipped into recession last quarter.
India Makes Steepest Cut in Cash Ratio Since 2001; Rupee Plunges to Record India made the steepest cut since 2001 in the amount of cash lenders need to set aside as reserves to kick-start the economy, after industrial output grew at the slowest pace in 14 years and the rupee slumped to a record low.
IMF to Use `Rapid-Fire' Emergency Loan Program as Emerging Markets Buckle The International Monetary Fund will use a ``rapid-fire'' emergency-loan program to lend hundreds of billions of dollars to emerging markets as the credit squeeze threatens to hobble nations that until this year were weaning themselves off the fund's aid.
EU Crippled in Crisis as 27 Governments Confront a Single Hobbled Economy It took the European Union almost three decades to agree on what could legitimately be called chocolate. That doesn't bode well for its handling of the worst financial crisis in its history.
Greenspan Sees Housing Recovery in First Half of 2009, Says Credit to Thaw Former U.S. Federal Reserve Chairman Alan Greenspan wrote in an article for Emerging Markets newspaper that the U.S. housing market will recover in the first half of 2009.
U.S. Treasury Plans Bank-Stake Purchases Within Weeks to Shore Up Capital The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.
Iceland Premier Haarde Tells Countrymen to Go Fishing After Banks Implode Iceland Prime Minister Geir Haarde has some advice for his fellow citizens after the country's banking system imploded: Go fishing.
French Industrial Production Declined 0.4% in August: Table of the Day Following is a summary of the August industrial production report from French Statistics Office in Paris:
Cost of U.S. Crisis Response Is Ballooning, Along With the Deficit, Debt The global financial crisis is turning into a bigger drain on the U.S. federal budget than experts estimated two weeks ago, ballooning the deficit toward $2 trillion.
World Needs 1.5 Percentage Point Rate Cut to Avert Disaster, Roubini Says Nouriel Roubini, the professor who two years ago predicted the financial crisis, said world financial officials should orchestrate interest-rate cuts of at least 1.5 percentage points to help avert a depression.
French Industrial Output Declines, Adding Evidence Economy Is In Recession French industrial production declined in August, further evidence that the second-largest economy of the 15 countries sharing the euro probably slipped into recession last quarter.
India Makes Steepest Cut in Cash Ratio Since 2001; Rupee Plunges to Record India made the steepest cut since 2001 in the amount of cash lenders need to set aside as reserves to kick-start the economy, after industrial output grew at the slowest pace in 14 years and the rupee slumped to a record low.
IMF to Use `Rapid-Fire' Emergency Loan Program as Emerging Markets Buckle The International Monetary Fund will use a ``rapid-fire'' emergency-loan program to lend hundreds of billions of dollars to emerging markets as the credit squeeze threatens to hobble nations that until this year were weaning themselves off the fund's aid.
EU Crippled in Crisis as 27 Governments Confront a Single Hobbled Economy It took the European Union almost three decades to agree on what could legitimately be called chocolate. That doesn't bode well for its handling of the worst financial crisis in its history.
Greenspan Sees Housing Recovery in First Half of 2009, Says Credit to Thaw Former U.S. Federal Reserve Chairman Alan Greenspan wrote in an article for Emerging Markets newspaper that the U.S. housing market will recover in the first half of 2009.
U.S. Treasury Plans Bank-Stake Purchases Within Weeks to Shore Up Capital The government is planning to buy stakes in a wide range of banks within weeks as the credit freeze increasingly threatens to tip the U.S. economy into a deep recession.
Iceland Premier Haarde Tells Countrymen to Go Fishing After Banks Implode Iceland Prime Minister Geir Haarde has some advice for his fellow citizens after the country's banking system imploded: Go fishing.
French Industrial Production Declined 0.4% in August: Table of the Day Following is a summary of the August industrial production report from French Statistics Office in Paris:
Who owns the IMF?: The International Monetary Fund could be a vital institution in the global economy – but only if reformed to reflect new realities
Indonesian stock exchange halted indefinitely: The president of the Indonesian stock exchange says trading will be suspended indefinitely "to prevent deeper panic" after another huge drop on Wall Street.
Russia's Crash `Pretty Much the Same' as 1929, Micex Chief Says: The 67 percent decline in Russian equities this year resembles the U.S. stock market crash of 1929 because of the damaging effect of highly leveraged investors, the head of Russia's Micex Stock Exchange said.
Russian President Endorses Emergency G8 Summit; Russian President Dmitry Medvedev Friday endorsed the idea of an emergency Group of Eight summit on the global financial crisis but insisted on major developing countries such as China and India being included.
Putin: US image damaged forever over economy woes: - The financial crisis has irreparably damaged the image of the U.S. as the leader of the free world and the global economy, Russian Prime Minister Vladimir Putin said Thursday.
Financial Crisis: Gordon Brown demands £20 bn 'British money' from Iceland: The Prime Minister said Britain would seize the assets of Icelandic companies and take “further action against the authorities” over the collapse of the island’s banks.
Selling frenzy persists as gobal stocks dive: Global stocks dove head first to five-year lows on Friday at the end of a brutal week as even the traditional safe-havens of gold and government bonds suffered as fear-stricken investors sought refuge in cash.
U.S. Weighs Backing Bank Debt: Removing Deposit Insurance Limits Also on the Table
General Motors' market cap plunges to 1929 level; Stocks fall in Europe and US: General Motors shares have fallen 13% and the market capitalisation is down to the level it was at in March 1929 - at about $4 billion. It had a market cap of $52 billion in 2000. The stock has fallen 45% in the last month.
The current financial crisis is only the beginning: One could argue that the banking crisis is just the cold sweat, not the flu that follows it.
Indonesian stock exchange halted indefinitely: The president of the Indonesian stock exchange says trading will be suspended indefinitely "to prevent deeper panic" after another huge drop on Wall Street.
Russia's Crash `Pretty Much the Same' as 1929, Micex Chief Says: The 67 percent decline in Russian equities this year resembles the U.S. stock market crash of 1929 because of the damaging effect of highly leveraged investors, the head of Russia's Micex Stock Exchange said.
Russian President Endorses Emergency G8 Summit; Russian President Dmitry Medvedev Friday endorsed the idea of an emergency Group of Eight summit on the global financial crisis but insisted on major developing countries such as China and India being included.
Putin: US image damaged forever over economy woes: - The financial crisis has irreparably damaged the image of the U.S. as the leader of the free world and the global economy, Russian Prime Minister Vladimir Putin said Thursday.
Financial Crisis: Gordon Brown demands £20 bn 'British money' from Iceland: The Prime Minister said Britain would seize the assets of Icelandic companies and take “further action against the authorities” over the collapse of the island’s banks.
Selling frenzy persists as gobal stocks dive: Global stocks dove head first to five-year lows on Friday at the end of a brutal week as even the traditional safe-havens of gold and government bonds suffered as fear-stricken investors sought refuge in cash.
U.S. Weighs Backing Bank Debt: Removing Deposit Insurance Limits Also on the Table
General Motors' market cap plunges to 1929 level; Stocks fall in Europe and US: General Motors shares have fallen 13% and the market capitalisation is down to the level it was at in March 1929 - at about $4 billion. It had a market cap of $52 billion in 2000. The stock has fallen 45% in the last month.
The current financial crisis is only the beginning: One could argue that the banking crisis is just the cold sweat, not the flu that follows it.
10/13/2008
May Be Lucky to Get Worst Recession Since 83'
- Bloomberg 10/13/2008
Global Creditors End U.S. Spending Spree
- Washington Times 10/13/2008
Three Rules Will Help Protect You From Meltdown
- Bloomberg 10/13/2008
Got $700 Billion? Sweat the Details
- New York Times 10/13/2008
U.S. Aims to Buy Equity in 'Healthy' Banks
- MarketWatch 10/13/2008
U.S. Weighing More Measures to Fix Fiscal Crisis
- Newsday 10/13/2008
Homeownership Turned Upside Down
- Chicago Tribune 10/13/2008
Credit Squeeze Hits Home
- San Diego Union-Tribune 10/13/2008
O.C. Maps Tell Tale of Subprime Boom, Bust
- Orange County Register 10/13/2008
Shipping Sector Hit by Credit Crisis
- Financial Times 10/13/2008
Saddled With Debt, Some Decide to Torch Vehicles
- Washington Post 10/13/2008
Wells-Wachovia Tie-Up OK'd
- CNN Money
May Be Lucky to Get Worst Recession Since 83'
- Bloomberg 10/13/2008
Global Creditors End U.S. Spending Spree
- Washington Times 10/13/2008
Three Rules Will Help Protect You From Meltdown
- Bloomberg 10/13/2008
Got $700 Billion? Sweat the Details
- New York Times 10/13/2008
U.S. Aims to Buy Equity in 'Healthy' Banks
- MarketWatch 10/13/2008
U.S. Weighing More Measures to Fix Fiscal Crisis
- Newsday 10/13/2008
Homeownership Turned Upside Down
- Chicago Tribune 10/13/2008
Credit Squeeze Hits Home
- San Diego Union-Tribune 10/13/2008
O.C. Maps Tell Tale of Subprime Boom, Bust
- Orange County Register 10/13/2008
Shipping Sector Hit by Credit Crisis
- Financial Times 10/13/2008
Saddled With Debt, Some Decide to Torch Vehicles
- Washington Post 10/13/2008
Wells-Wachovia Tie-Up OK'd
- CNN Money
Global Stocks Climb, Euro Rises on Bailout Plan; Banks Advance
- Bloomberg
- 10/13/2008 07:50 AM
- AP
- 10/13/2008 09:52 AM
- Bloomberg
- 10/13/2008 07:52 AM
- AP
- 10/13/2008 09:35 AM
Fed Says ECB, Others to Offer Unlimited Dollar Funds
- Bloomberg
- 10/13/2008 04:55 AM
- AP
- 10/13/2008 06:20 AM
- FT ($)
- 10/12/2008 09:22 PM
- Bloomberg
- 10/13/2008 04:57 AM
- FT ($)
- 10/13/2008 05:59 AM
- Washington Post
- 10/13/2008 05:24 AM
- San Diego UT
- 10/13/2008 05:23 AM
Slow-Motion Crash Leaves Investors Scrambling
- WSJ ($)
- 10/13/2008 06:21 AM
- WSJ ($)
- 10/13/2008 05:33 AM
- WSJ ($)
- 10/13/2008 05:13 AM
- CSM
- 10/13/2008 05:28 AM
- Orange County Reg.
- 10/13/2008 05:26 AM
- NY Times
- 10/13/2008 05:19 AM
- FT ($)
- 10/12/2008 09:24 PM
- WSJ ($)
- 10/12/2008 08:59 PM
- NY Times
- 10/12/2008 08:14 PM
- FT ($)
- 10/12/2008 05:02 PM
Financial crisis: World round-up
- BBC
- 10/13/2008 05:38 AM
- NY Times
- Norris
- 10/13/2008 05:18 AM
U.S. Forces Nine Major Banks To Accept Partial Nationalization
- Washington Post
- 10/14/2008 05:36 AM
- WSJ ($)
- Bernanke
- 10/14/2008 05:33 AM
- Bloomberg
- 10/14/2008 05:18 AM
- FT ($)
- 10/13/2008 09:14 PM
- NY Times
- 10/13/2008 07:46 PM
Credit Bubble Bulletin
by Doug Noland | Oct 10
Hoping There's Hope
Hopefully things are not as dire as they appear.
Read more
The Bear's Lair
by Martin Hutchinson | Oct 13
Armageddon or a bumpy landing?
The reversion to normal can be a wrenching process.
Read more
Treasury Said to Invest $125 Billion in U.S. Banks
- Bloomberg
- 10/14/2008 05:18 AM
- Washington Post
- 10/14/2008 05:36 AM
- WSJ ($)
- Bernanke
- 10/14/2008 05:33 AM
- NY Times
- 10/14/2008 05:16 AM
- AP
- 10/14/2008 06:41 AM
- Bloomberg
- 10/14/2008 05:45 AM
- WSJ ($)
- 10/14/2008 05:35 AM
- Bloomberg
- 10/13/2008 05:57 PM
How a banking crisis brought down a small economy
- Economist
- 10/14/2008 08:29 AM
- Bloomberg
- 10/14/2008 05:35 AM
- Bloomberg
- 10/14/2008 05:15 AM
- FT
- 10/13/2008 07:52 PM
- FT
- 10/13/2008 07:48 PM
- IHT
- 10/14/2008 05:39 AM
- IHT
- 10/14/2008 05:37 AM
- Bloomberg
- 10/14/2008 05:34 AM
- Bloomberg
- 10/14/2008 05:31 AM
- FT ($)
- 10/13/2008 09:06 PM
- FT ($)
- 10/13/2008 09:02 PM
Government Moves Again to Unclog Credit Lines- APPresident Bush on Tuesday announced a $250 billion plan by the government to directly buy shares in the nation's leading banks, saying the drastic steps were "not intended to take over the free market but to preserve it."
- Stocks mixed as profit-taking sets in- AP
- Video: Paulson on the Rescue Plan- CNBC
- Oil rises above $84 as financial panic eases- AP
- PepsiCo profit misses view; to cut 3,300 jobs- Reuters
- Blackstone: U.S. action could crack the crisis- Reuters
- Johnson & Johnson tops estimates, shares rise- AP
- World stocks soar on bank rescue plans- AP
- Bottom or Not? Traders Cheer Bailout, but Economy, Earnings Threaten Rally- Tech Ticker
Double Bind: Savers on the Hook for Squanderers- Laura RowleyA former SEC economist argues that rampant consumerism and wealth disparity are to blame for the economic meltdown.
- Steering the Mortgage Market as Home Prices Decline- Jack Guttentag
- How to Ruin the U.S. Economy- Ben Stein
- Will Rescue Bill Rescue Us?- Jeremy Siegel Ph.D.
Stocks pull back as profit-taking sets in - AP - 3 minutes ago
Wall Street ended a relatively calm session with a moderate loss. The Dow closed down 76 points a day after its record 936-point jump. Investors, while pleased with the government's plans to spend $250 billion to buy stock in private banks, decided to cash in some of their profits from the previous day's massive advance. Government moves again to unclog credit lines - AP - 6 minutes ago
The government put itself four-square into the country's banking business Tuesday, resorting to what President Bush conceded was the unwelcome choice of buying into the system to loosen paralyzed channels of credit.
Intel 3Q profit beats forecast but outlook cloudy - AP - 45 minutes ago
Intel Corp. says its third-quarter profit rose 12 percent and edged past Wall Street's forecasts. But the chip maker says the financial crisis makes it hard to predict its results for the current period.
Oil falls below $79 on profit-taking, demand drop - AP - 57 minutes ago
Oil prices fell below $79 a barrel in choppy trading Tuesday as investors took profits from the previous day's rally and shifted their focus back to signs of dwindling world energy demand.
PepsiCo to cut 3,300 jobs as profit falls 10 pct - AP - 32 minutes ago
PepsiCo Inc. is cutting jobs and closing factories to give it some "breathing room" to navigate the volatility that has permeated all corners of the global economy.
Direct US stake in banks has many precedents - AP - 17 minutes ago
For all the thorny free-market issues raised, the big U.S. intervention in banks does have precedents -- from wholesale wartime takeovers of entire industries to the seizing of hundreds of failed savings and loans in the 1980s.
Apple to offer $999 entry laptop, better graphics - AP - 42 minutes ago
Apple Inc. touched up its line of laptop computers Tuesday with a minimal nod to the economic turmoil that might push consumers to be more frugal this holiday shopping season.
Johnson & Johnson 3Q profit rises, tops views - AP - 26 minutes ago
Health care giant Johnson & Johnson on Tuesday posted a 30 percent jump in third-quarter profit and beat Wall Street expectations, mainly because the year-ago results were weighed down by a $745 million restructuring charge.
Credit markets see more gradual improvements - AP - 1 hour, 3 minutes ago
The government's efforts to crank open the credit markets have led to some mild improvements in lending rates and Treasury bill yields. But it will probably take months, and perhaps a few years, before lending returns to healthier levels.
Genentech 3Q profit rises, meets forecast - AP - 20 minutes ago
Genentech Inc.'s third-quarter profit fell rose 6.7 percent on sales of key cancer drugs, the biotechnology company said Tuesday, matching Wall Street's profit forecasts.
Wall Street ended a relatively calm session with a moderate loss. The Dow closed down 76 points a day after its record 936-point jump. Investors, while pleased with the government's plans to spend $250 billion to buy stock in private banks, decided to cash in some of their profits from the previous day's massive advance. Government moves again to unclog credit lines - AP - 6 minutes ago
The government put itself four-square into the country's banking business Tuesday, resorting to what President Bush conceded was the unwelcome choice of buying into the system to loosen paralyzed channels of credit.
Intel 3Q profit beats forecast but outlook cloudy - AP - 45 minutes ago
Intel Corp. says its third-quarter profit rose 12 percent and edged past Wall Street's forecasts. But the chip maker says the financial crisis makes it hard to predict its results for the current period.
Oil falls below $79 on profit-taking, demand drop - AP - 57 minutes ago
Oil prices fell below $79 a barrel in choppy trading Tuesday as investors took profits from the previous day's rally and shifted their focus back to signs of dwindling world energy demand.
PepsiCo to cut 3,300 jobs as profit falls 10 pct - AP - 32 minutes ago
PepsiCo Inc. is cutting jobs and closing factories to give it some "breathing room" to navigate the volatility that has permeated all corners of the global economy.
Direct US stake in banks has many precedents - AP - 17 minutes ago
For all the thorny free-market issues raised, the big U.S. intervention in banks does have precedents -- from wholesale wartime takeovers of entire industries to the seizing of hundreds of failed savings and loans in the 1980s.
Apple to offer $999 entry laptop, better graphics - AP - 42 minutes ago
Apple Inc. touched up its line of laptop computers Tuesday with a minimal nod to the economic turmoil that might push consumers to be more frugal this holiday shopping season.
Johnson & Johnson 3Q profit rises, tops views - AP - 26 minutes ago
Health care giant Johnson & Johnson on Tuesday posted a 30 percent jump in third-quarter profit and beat Wall Street expectations, mainly because the year-ago results were weighed down by a $745 million restructuring charge.
Credit markets see more gradual improvements - AP - 1 hour, 3 minutes ago
The government's efforts to crank open the credit markets have led to some mild improvements in lending rates and Treasury bill yields. But it will probably take months, and perhaps a few years, before lending returns to healthier levels.
Genentech 3Q profit rises, meets forecast - AP - 20 minutes ago
Genentech Inc.'s third-quarter profit fell rose 6.7 percent on sales of key cancer drugs, the biotechnology company said Tuesday, matching Wall Street's profit forecasts.
redit crisis
A cool quarter-trillion
Federal officials unveil plan to recapitalize banks, thaw credit markets.
• Treasury developing separate approach for failing firms
• Money-market tensions begin to ease as Libor rate falls slightly
• Key lending rates ease | Street a public road (First Take)
• The difference is American banks allowed to fail (First Take)
A cool quarter-trillion
Federal officials unveil plan to recapitalize banks, thaw credit markets.
• Treasury developing separate approach for failing firms
• Money-market tensions begin to ease as Libor rate falls slightly
• Key lending rates ease | Street a public road (First Take)
• The difference is American banks allowed to fail (First Take)
Greetings from RGE Monitor!
Seeing some green on tickers around the world, as opposed to the red that was flashing last week, sure feels good. Credit market conditions also appear to be easing somewhat with respect to last week. Moreover, oil prices – a good indicator of markets’ willingness to take risk – lost steam. But is this a just a blip or are we at the turning point?
Over the weekend G7 governments agreed to address this global financial crisis in a coordinated manner, laying out a set of common objectives and principles so that each country could define its own special local financial program.
Here are the main policy actions that will be undertaken:
More details of European financial support programs are being flashed out. As the European governments disclosed plans to invest more than $2.5 trillion into the European financial system, the U.S. authorities announced a plan to rescue frozen credit markets that includes spending $250bn out of the $700bn already allocated for ownership stakes in nine major banks who have already agreed to participate.
The markets are certainly greeting the policy makers’ response with some optimism; however we might not be out of the woods quite yet.
The process of deleveraging is still ongoing and, on the real side of the economy, the measures adopted so far might reduce the severity and the length of the U.S. (and global) downturn but will not avoid it. A recession in the U.S. likely started a long time ago. U.S. home prices are still falling and will not find a floor as long as demand for homes keeps falling faster than supply and inventories stay at record highs. U.S. personal consumption might exhibit negative growth in Q3 2008 for the first time since Q4 1991 – and with personal consumption making up over 70% of U.S. aggregate demand, Q3 2008 real U.S. GDP growth could very well turn out negative. Private investment, both residential and capex, has been falling for quite some time. Unemployment is high and rising.
The old saying that when the U.S. sneezes the rest of the world catches a cold seems to still hold. Most of the other G7 economies have already experienced a quarter of negative growth and are navigating toward recession. A G7 recession coupled with a marked slowdown of large emerging economies can realistically translate into a global recession.
According to our Nouriel Roubini two essential components are still missing among the measures adopted so far. The fist one would be a large fiscal stimulus plan in the form of old fashioned traditional Keynesian spending to boost aggregate demand. “If such a fiscal stimulus plan is not rapidly implemented any improvement in the financial conditions of financial institutions that the rescue plans will provide will be undermined – in a matter of six months – with an even sharper drop of aggregate demand that will make an already severe recession even more severe.” The second one is a plan to reduce the debt overhang of distressed households via the institution of a new Home Owners’ Loan Corporation (HOLC) or better a Home Owners’ Mortgage Enterprise (HOME).
Seeing some green on tickers around the world, as opposed to the red that was flashing last week, sure feels good. Credit market conditions also appear to be easing somewhat with respect to last week. Moreover, oil prices – a good indicator of markets’ willingness to take risk – lost steam. But is this a just a blip or are we at the turning point?
Over the weekend G7 governments agreed to address this global financial crisis in a coordinated manner, laying out a set of common objectives and principles so that each country could define its own special local financial program.
Here are the main policy actions that will be undertaken:
- Preventing systemically important banks and broker dealers from going bust by taking “decisive action and use all available tools to support systemically important financial institutions and prevent their failure” as in the G7 statement
- Recapitalization of banks and broker dealers via public injections of capital via preferred shares – i.e. partial nationalization of financial institutions. “Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses”
- Temporary guarantee of bank liabilities: all deposits, possibly interbank lines (along the lines of the British approach; see here for U.S. and for Eurozone approach), likely other new debts incurred by the banking system. “Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits”
- Unlimited provision of liquidity to the banking system and to some parts of the shadow banking system to restore interbank lending and lending to the real economy. “Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses”
- Provision of credit to the corporate sector via purchases of commercial paper (certainly in the U.S., possibly in Europe)
- Purchase of toxic assets to restore liquidity in the mortgage backed securities market (U.S.). “Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary”
- Implicit triage between distressed banks that are solvent given liquidity support and capital injection and those that are non-systemically important and insolvent that will need to be closed down/merged/resolved
- Use of the IMF and other international financial institutions to provide lending to many emerging market economies – and some advanced ones such as Iceland – that are now at risk of a severe financial crisis.
- Use of any other tools that are available and necessary to avoid a systemic meltdown, including implicitly more monetary policy easing as well as possibly fiscal policy stimulus. “We will use macroeconomic policy tools as necessary and appropriate”
More details of European financial support programs are being flashed out. As the European governments disclosed plans to invest more than $2.5 trillion into the European financial system, the U.S. authorities announced a plan to rescue frozen credit markets that includes spending $250bn out of the $700bn already allocated for ownership stakes in nine major banks who have already agreed to participate.
The markets are certainly greeting the policy makers’ response with some optimism; however we might not be out of the woods quite yet.
The process of deleveraging is still ongoing and, on the real side of the economy, the measures adopted so far might reduce the severity and the length of the U.S. (and global) downturn but will not avoid it. A recession in the U.S. likely started a long time ago. U.S. home prices are still falling and will not find a floor as long as demand for homes keeps falling faster than supply and inventories stay at record highs. U.S. personal consumption might exhibit negative growth in Q3 2008 for the first time since Q4 1991 – and with personal consumption making up over 70% of U.S. aggregate demand, Q3 2008 real U.S. GDP growth could very well turn out negative. Private investment, both residential and capex, has been falling for quite some time. Unemployment is high and rising.
The old saying that when the U.S. sneezes the rest of the world catches a cold seems to still hold. Most of the other G7 economies have already experienced a quarter of negative growth and are navigating toward recession. A G7 recession coupled with a marked slowdown of large emerging economies can realistically translate into a global recession.
According to our Nouriel Roubini two essential components are still missing among the measures adopted so far. The fist one would be a large fiscal stimulus plan in the form of old fashioned traditional Keynesian spending to boost aggregate demand. “If such a fiscal stimulus plan is not rapidly implemented any improvement in the financial conditions of financial institutions that the rescue plans will provide will be undermined – in a matter of six months – with an even sharper drop of aggregate demand that will make an already severe recession even more severe.” The second one is a plan to reduce the debt overhang of distressed households via the institution of a new Home Owners’ Loan Corporation (HOLC) or better a Home Owners’ Mortgage Enterprise (HOME).
Banks Brace for Slump as Economy Weakens
- NY Times
- 10/15/2008 09:09 PM
- Bloomberg
- 10/15/2008 02:27 PM
- Bloomberg
- 10/15/2008 07:58 AM
- Bloomberg
- 10/15/2008 07:57 AM
- WSJ ($)
- 10/15/2008 05:44 AM
- LA Times
- 10/15/2008 05:40 AM
- Bloomberg
- 10/15/2008 07:59 AM
- LA Times
- 10/15/2008 05:23 AM
- NY Times
- Leonhardt
- 10/15/2008 05:03 AM
- NY Times
- 10/15/2008 05:03 AM
- Bloomberg
- 10/15/2008 04:58 AM
- Bloomberg
- 10/15/2008 04:57 AM
- Houston Chronicle
- 10/15/2008 08:29 AM
- Business Week
- 10/15/2008 05:50 AM
- Bloomberg
- 10/15/2008 05:30 AM
U.S. Industrial Output Fell 2.8% in September, Most Since 1974
- Bloomberg
- 10/16/2008 08:23 AM
- NY Times
- 10/15/2008 09:09 PM
- Bloomberg
- 10/16/2008 08:04 AM
- UPI
- 10/16/2008 06:30 AM
- Dallas Morning News
- 10/16/2008 05:39 AM
- Chicago Tribune
- 10/16/2008 05:37 AM
- LA Times
- 10/16/2008 05:33 AM
- NY Times
- 10/16/2008 05:23 AM
- Bloomberg
- 10/16/2008 05:25 AM
- NY Times
- 10/16/2008 05:24 AM
Stocks fluctuate following tame inflation report
- AP
- 10/16/2008 09:18 AM
- Bloomberg
- 10/16/2008 08:20 AM
- AP
- 10/16/2008 08:13 AM
U.S. Industrial Output Fell 2.8% in September, Most Since 1974
- Bloomberg
- 10/16/2008 08:23 AM
- NY Times
- 10/15/2008 09:09 PM
- Bloomberg
- 10/16/2008 08:04 AM
- UPI
- 10/16/2008 06:30 AM
- Dallas Morning News
- 10/16/2008 05:39 AM
- Chicago Tribune
- 10/16/2008 05:37 AM
Oil plummets on big jumps in US crude, gas stocks
- AP
- 10/16/2008 03:04 PM
- Bloomberg
- 10/16/2008 03:07 PM
- Bloomberg
- 10/16/2008 02:19 PM
- Bloomberg
- 10/16/2008 03:13 PM
- Bloomberg
- 10/16/2008 03:04 PM
U.S. Industrial Output Falls Most Since 1974; Consumer Inflation in Check The U.S. economic downturn deepened in September and October as the credit crisis intensified, reports showed today.
U.S. Homebuilder Confidence Falls to Lowest on Record as Credit Seizes Up Confidence among U.S. homebuilders slid in October to the lowest level since record-keeping began in 1985, a sign the crisis in credit markets may deepen the worst housing recession in a generation.
Philadelphia Fed's Factory Index Plunges to Minus 37.5, Lowest Since 1990 Manufacturing in the Philadelphia region shrank in October at the fastest pace in almost two decades, a sign the worsening credit crush is pushing the economy into a deeper slump.
Singapore, Malaysia Will Guarantee Local, Foreign-Currency Bank Deposits Singapore and Malaysia will guarantee bank deposits to shore up confidence in the two Southeast nations' financial institutions amid a deepening credit crisis.
Kevin Who? Warsh Emerges From Obscurity to Key Player in Fed's Bank Rescue When nine U.S. bank chieftains gathered this week in a Treasury conference room to hear the government's plans to invest in their firms, they faced Washington's frontline crisis-response team: Henry Paulson, Ben S. Bernanke, Timothy Geithner -- and Kevin Warsh.
Bernanke May Discard Decades-Old Aversion to Meddling With Asset Bubbles Federal Reserve Chairman Ben S. Bernanke signaled an end to the Fed's decades-old aversion to interfering with asset-price bubbles as the financial crisis reshapes some of the central bank's most firmly held views on regulation and monetary policy.
Paulson Signals Hedge Funds Aren't Currently Eligible for Government Money U.S. Treasury Secretary Henry Paulson said his plan to inject capital into financial companies is focused on banks and thrifts, indicating unregulated firms such as hedge funds won't initially get government aid.
Almunia Says Financial Crisis Poses `Significant Risk' to European Growth European Union Monetary Affairs Commissioner Joaquin Almunia said the turmoil in the global financial system poses ``serious challenges'' for economic growth in Europe.
ECB's Power Grows Beyond Boundaries as Neighbors Ask For Help With Crisis The European Central Bank's power is growing beyond its borders as the financial crisis forces neighboring economies to seek its shelter.
U.S. Industrial Production Fell The Most Since 1974: Table of the Day Following is a summary of the U.S. industrial production and capacity utilization report for Sept. released by the Federal Reserve.
U.S. Homebuilder Confidence Falls to Lowest on Record as Credit Seizes Up Confidence among U.S. homebuilders slid in October to the lowest level since record-keeping began in 1985, a sign the crisis in credit markets may deepen the worst housing recession in a generation.
Philadelphia Fed's Factory Index Plunges to Minus 37.5, Lowest Since 1990 Manufacturing in the Philadelphia region shrank in October at the fastest pace in almost two decades, a sign the worsening credit crush is pushing the economy into a deeper slump.
Singapore, Malaysia Will Guarantee Local, Foreign-Currency Bank Deposits Singapore and Malaysia will guarantee bank deposits to shore up confidence in the two Southeast nations' financial institutions amid a deepening credit crisis.
Kevin Who? Warsh Emerges From Obscurity to Key Player in Fed's Bank Rescue When nine U.S. bank chieftains gathered this week in a Treasury conference room to hear the government's plans to invest in their firms, they faced Washington's frontline crisis-response team: Henry Paulson, Ben S. Bernanke, Timothy Geithner -- and Kevin Warsh.
Bernanke May Discard Decades-Old Aversion to Meddling With Asset Bubbles Federal Reserve Chairman Ben S. Bernanke signaled an end to the Fed's decades-old aversion to interfering with asset-price bubbles as the financial crisis reshapes some of the central bank's most firmly held views on regulation and monetary policy.
Paulson Signals Hedge Funds Aren't Currently Eligible for Government Money U.S. Treasury Secretary Henry Paulson said his plan to inject capital into financial companies is focused on banks and thrifts, indicating unregulated firms such as hedge funds won't initially get government aid.
Almunia Says Financial Crisis Poses `Significant Risk' to European Growth European Union Monetary Affairs Commissioner Joaquin Almunia said the turmoil in the global financial system poses ``serious challenges'' for economic growth in Europe.
ECB's Power Grows Beyond Boundaries as Neighbors Ask For Help With Crisis The European Central Bank's power is growing beyond its borders as the financial crisis forces neighboring economies to seek its shelter.
U.S. Industrial Production Fell The Most Since 1974: Table of the Day Following is a summary of the U.S. industrial production and capacity utilization report for Sept. released by the Federal Reserve.
Bernanke May Discard Decades-Old Aversion to Meddling With Asset Bubbles Federal Reserve Chairman Ben S. Bernanke signaled an end to the Fed's decades-old aversion to interfering with asset-price bubbles as the financial crisis reshapes some of the central bank's most firmly held views on regulation and monetary policy.
Fed's Kohn Sees `Prolonged Period of Cautious' Lending, `Sub-Par' Growth The U.S. economy will have to weather a long period of cautious lending that will probably impair growth for another year, Federal Reserve Vice Chairman Donald Kohn said.
Fed Offers GE, Citigroup Subsidized Cash Through Fund for Commercial Paper The Federal Reserve may subsidize U.S. companies by buying their short-term debt at rates below those demanded by private investors in the $1.6 trillion commercial-paper market.
Fed's Kohn Sees `Prolonged Period of Cautious' Lending, `Sub-Par' Growth The U.S. economy will have to weather a long period of cautious lending that will probably impair growth for another year, Federal Reserve Vice Chairman Donald Kohn said.
Fed Offers GE, Citigroup Subsidized Cash Through Fund for Commercial Paper The Federal Reserve may subsidize U.S. companies by buying their short-term debt at rates below those demanded by private investors in the $1.6 trillion commercial-paper market.
Google Profit Rises as Advertisers Rely More on Web Engines; Shares Climb Google Inc., owner of the most popular Internet search engine, said third-quarter profit climbed 26 percent as more customers used Web search ads to spur sales in a slowing economy, sending the shares higher.
U.S. Stocks Jump on Bond Insurer Bailout Plan, Oil's Retreat; Ambac Gains U.S. stocks rose for the first time in three days as oil's retreat below $70 a barrel sparked a rally in consumer companies and prospects of a government bailout of bond insurers reversed a slide in financial shares.
Ambac, Bond Insurers Will Present Plan to Tap Treasury Funds, Callen Says Ambac Financial Group Inc. and other bond insurers are working on a plan to send to the U.S. Treasury that would enable them to sell troubled assets to the government, Chief Executive Officer Michael Callen said.
Industrial Output in U.S. Falls Most Since 1974; Consumer Prices in Check The U.S. economic downturn deepened in September and October as the credit crisis intensified, reports showed today.
Paulson Signals Hedge Funds Aren't Currently Eligible for Government Money U.S. Treasury Secretary Henry Paulson said his plan to inject capital into financial companies is focused on banks and thrifts, indicating unregulated firms such as hedge funds won't initially get government aid.
U.S. Stocks Jump on Bond Insurer Bailout Plan, Oil's Retreat; Ambac Gains U.S. stocks rose for the first time in three days as oil's retreat below $70 a barrel sparked a rally in consumer companies and prospects of a government bailout of bond insurers reversed a slide in financial shares.
Ambac, Bond Insurers Will Present Plan to Tap Treasury Funds, Callen Says Ambac Financial Group Inc. and other bond insurers are working on a plan to send to the U.S. Treasury that would enable them to sell troubled assets to the government, Chief Executive Officer Michael Callen said.
Industrial Output in U.S. Falls Most Since 1974; Consumer Prices in Check The U.S. economic downturn deepened in September and October as the credit crisis intensified, reports showed today.
Paulson Signals Hedge Funds Aren't Currently Eligible for Government Money U.S. Treasury Secretary Henry Paulson said his plan to inject capital into financial companies is focused on banks and thrifts, indicating unregulated firms such as hedge funds won't initially get government aid.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.