Finance/Economics
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!
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 [...]
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
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 [...]
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 [...]
Inflation: The New Wave- by Greg Strid
An inflationary wave is building around the globe and
it threatens living standards and political stability. Prices
for food, energy and industrial commodities have been
rising steadily for the past few years. (The soaring cost
of food has sparked riots in Bangladesh and China this
year.) There are two main components that are giving
life and breath to the steady rise [...]
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