Finance/Economics
Hello, Cliff!
It seems as if America’s fiscal situation is rolling quickly toward
the edge of a big scary cliff. The nonpartisan Congressional Budget
Office (CBO) warned earlier this week that the combined forces of
a weakening economy and high maintenance costs associated with
fighting two wars is causing the federal budget outlook to darken
significantly over the next few years.
The CBO [...]
Hank to the Rescue
Treasury Secretary Hank Paulson mounted his white stallion
named “Sucker” and rode to the rescue of central banks from
Berlin to Beijing on Sunday morning by placing US mortgage
giants Fannie Mae and Freddie Mac under direct government
control. The implied government guarantee of their debt has
now been made quite explicit. This means that shareholders
will be practically wiped [...]
Dollar Sniffers- by Greg Strid
Crude oil futures swooned to a hair above $105 a barrel
before closing at $109.71 yesterday. At the same time,
the US dollar rallied and held most of its gains against
major currencies. (The greenback is trading at a seven-
month high against the euro and a two-year high versus
the British pound.)
As far as the US dollar’s rise [...]
Wall Street’s Wild Ride
Stocks started the month of September with a wild, manic ride.
The Dow rocketing over 200 higher in early trading, fueled by
news that Hurricane Gustav did very little damage to the many
oil and gas platforms that dot the Gulf of Mexico. (It also spared
New Orleans, veering to the west instead of adding to the
devastation that [...]
The Economy: Not Dead Yet!- by Greg Strid
The economy is not dead yet! The Commerce Department
reported that the U.S. glowed under the warm light created
by 3.3 percent real economic growth in the second quarter.
This new reading almost doubles the original tally of 1.9
percent- which provided barely enough wattage to read
the fine print on mortgage, credit card and auto loan
statements.
According to Marketwatch.com, the [...]
Blue Market Monday
The market giveth on Friday and taketh away on Monday.
It seems that panic was in vogue today as more bad news
surfaced concerning the lousy state of the nation’s financial
institutions.
The Dow Jones forfeited just over 240 points, and the
broader Standard & Poor’s 500 index sank a hair more than
25 points. The Nasdaq felt the pain as [...]
What’s in Capital One’s Wallet?
“What’s in your wallet?”, the fierce looking Viking asks at the end of the Capital One commercial. Now, Wall Street investors are asking the same question of the creator of this amusing advertising spot.
As the headlines scream about the collapse of the subprime mortgage market and the relentless meltdown of real estate prices, far too [...]
The Economy: Just Limping Along- by Greg Strid
Less than swell news came from the bowels of
government bureaucracy this morning. The
Commerce Department reported that the US
economy grew at an annual rate of 1.9 percent
in the second quarter, which was less than
predicted by economists, and it actually
contracted by 0.2 percent in the final three
months of 2007.
It appears that the sources of growth in America’s
sputtering [...]
On Speculation- by Greg Strid
Maybe, instead of letting all of the useless hot air
generated in Senate hearings on the evils of speculation
with regard to record high energy prices, it should be
harnessed to power Washington DC. This would be real
action that could actually drive down prices, whereas
pointing fat fingers at speculators only makes headlines
and does nothing to address the real [...]
Market Meets Reality
The stock market met reality yesterday – it did not go well. Record high oil prices and a warning about inflation form the Federal Reserve smacked sobriety into U.S. investors. Oil traded at $135 a barrel and the minutes from the Fed’s late April policy meeting implied that further interest rate cuts are unlikely [...]
