Looks like reality may be intruding on our mooseburger fun and games, as Money reports:
Stocks slumped Monday, as investors reeled amid the fallout from the largest financial crisis in years after Lehman Brothers filed for the biggest bankruptcy in history and Bank of America said it would buy Merrill Lynch in a $50 billion deal…
The Dow Jones industrial average (INDU) lost 410 points, or 3.2%, with 40 minutes left in the session. The Standard & Poor’s 500 (SPX) index lost 3.5% and the Nasdaq composite (COMP) lost 2.8%.
Global markets tumbled as investors reeled after Lehman Brothers filed for bankruptcy, Merrill Lynch was forced to sell itself to Bank of America and investors awaited AIG’s restructuring announcement…
Still, some analysts said that the stock selloff could have been worse, considering the depth of the problems.
“You have to throw out the history books because there’s really nothing to compare this to,” said Jim Dunigan, chief investment officer at PNC Advisors.
Art Hogan, chief market strategist for Jefferies & Co., said the magnitude of the financial industry fallout is unprecedented, and could only be compared to the Great Depression of the 1930s or the railroad bankruptcies of the 1800s.
“We’ve never witnessed this before,” said Hogan. “There’s no road map for this.”
A poll follows–“silly season” coming to a swift and badly-needed end? Who will the voters trust to tackle the sinking economy if it becomes the issue that trumps everything else? Is this 1988 all over again…or 1932?
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is that the ramifications of this deepening problem will not be felt by consumers until after the election.
They may vote in November, but their wallets, bank accounts, etc. won’t feel the punch until well after Inauguration Day.
But it’s going to get a hell of a lot worse.
Risky decisions targeting plus sized returns will continue to be shaken to the core.
Lehman Bros has been circling the drain for months. Too bad they could not unwind their positions.
Despicable.
The GOP wants to capitalize on the collapsing economy by preventing Democrats from voting if they’ve had their house foreclosed on.
I would be thrilled to wake up tomorrow to news that Iraq and Afghanistan are full-blown functioning Democracies, that the economy is booming, and unemployment is down at 4%.
If Bush delivers that I’ll vote for McCain.
But returning to reality, we are so desperate for a change because 4 more years of the same is 4 more years of making the problem worse. The results are the reason we so want change – they are not something we celebrate.
How anyone can trust that McCain-Palin would bring any “change” from Bush economic policies is beyond me…
Just like in 1929.
Then we had the implementation of FHA, SEC, and FDIC programs … and only after WWII was the US reset for more growth.
Bush and Cheney are responsible for the lack of regulation of the markets and the look the other way of the SEC.
Naked Short selling, no uptick rule, no enforcement of stock mainuplation unless politically expediant like Martha Stewart.
John McCain’s main economic advisor.
the apostle of anything goes, no regulation financial markets. He is also McCain’s premiere economic adviser. He is just staying out of the spotlight for now because his words were impolitic, not because McCain thinks his economic views are wrong. So with McSame we get all the financial guys who got us into this mess and a journalism major heading up our energy policy? And maybe John Bolton for SOS?
If not in regulation specifics, the spirit.
Gummint bad.
Markit gud.
I can see Palin singing the “Gummint Bad, Markit Gud” showstopper in “High School Musical 4: Servin’ It up at 1600 Penn”
But it was slow and irregular. Then with the start of WWII the massive spending ended it very quickly.
The post WWII was set for growth because of forced saving during the war and the GI Bill.
All brought to you by FDR and the Democratic party.
hit in the first place and who’s been minding the store for the past 8 years: The usual Republican suspects.
were part of a solution that did not include protectionist tariffs and trade policies.
WWII played the capstone role in getting the economy moving again.
You finally took a narrow stance!
I assume next you will follow FDR’s advice and “Clear it with Sidney.”
From 2001 to 2006, Right-to-Work states increased payrolls by 6.4 percent.
Non-right-to-work states increased payrolls by only 2.9 percent from 2001 to 2006.
Right-to-Work states also have lower unemployment rates and show faster income growth.
The market is approaching total economic collapse and that is no exagerration.
Bush better act or Hoover will be a financial genius compared to him.
From 2001 to 2006, Right-to-Work states increased payrolls by 6.4 percent.
Non-right-to-work states increased payrolls by only 2.9 percent from 2001 to 2006.
Right-to-Work states also have lower unemployment rates and show faster income growth.
… and on the ‘world is falling fears’ go home and relax and remember cash is king. Go manage your personal risk and balance sheet. It is your responsibility. If you are that worried, then go buy an assault rifle while they are still for sale.
No idea what I’m talking about, do you?
Try reading a book sometime.
From 2001 to 2006, Right-to-Work states increased payrolls by 6.4 percent.
Non-right-to-work states increased payrolls by only 2.9 percent from 2001 to 2006.
Right-to-Work states also have lower unemployment rates and show faster income growth.
Now, go clear it with Sidney!
cut-paste-repeat
cut-paste-repeat
cut-paste-repeat
.
with full employment, nobody else was available.
.
Briefing reporters at the White House, Paulson said he “never once” considered it would be appropriate to put taxpayer money at risk to resolve the problems at Lehman Brothers
Dow Down 500
AIG on the brink-NY Gov. opens 20 billion line of crdit.
Dow Down 500: It Could Have Been Worse, But ‘Crash’ Risk Remains, Roubini says
The Fed’s expansion of its lending facilities for financial firms.
Raised expectations for a Fed rate cut at Tuesday’s previously scheduled policy meeting.
The Bank of America deal to acquire Merrill Lynch, discussed in detail here.
The $70 billion “liquidity fund” created by a consortium of banks.
Discussion of a separate fund to aid AIG, whose shares fell 61% Monday.
But nothing has changed Roubini’s baseline forecast for another 20% drop in the stock market. The economist, who has been eerily prescient in predicting the ongoing crisis, recommends investors avoid risky assets, including commodities as fears of a global slowdown take hold. On Monday, gold benefited from a “flight to safety” trade in the wake of Lehman’s bankruptcy, but oil fell to its lowest level since mid-February.
Meanwhile, NY Post reporter Mark DeCambre notes major Asian markets were closed Monday for holidays. “We could be looking at two days of carnage,” he says, when Wall Street reacts tomorrow to the delayed reaction in (most notably) Japan, China and South Korea to Monday’s slide and this weekend’s drama.
I think they better cut interest rates tomorrow.
All your bogus stats show is that corporations don’t like paying union wages so they move to non union states or outsource overseas (to which the Republican pay tax incentives to do).
Oh……and I don’t
believe in murdering people like perhaps you do, so I’ll avoid the assualt rifle.
Is that you, John McCain?
Is that you, John McCain?
Hirohito.
There were revisions to the banking laws in the late 1930’s that helped the US emerge from the Great Depression.
The idea that wars benefit the economy are very short sighted. Wars destroy resources and in the long run society suffers by not using those resources for other purposes. Google “Broken Window Analogy” for better explanations.
The bottom line is that Republicans believed their own propaganda that unregulated capitalism always works and rushed to destroy the safety nets that protected our banking system. Profits were privatized but now we are being told that the losses have to be socialized. The Republican mantra that markets know best has run smack up against the realty that tens of thousands of people are going to lose their jobs because of greedy unregulated capitalists. This is a loser for everyone in our country and on top of the losses in property in Texas. We’re screwed.
for the sake of those that depend on you go get your house in order.
Individuals (mostly near retirement) are sold bank stocks/bonds
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mortgage companies lend to unqualified borrowers
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Wall St, firms create structured securities with the help of raters
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Regulators repeal laws that have been in place for almost 100 years
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SF products are sold world-wide, media neglects to question
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Mortgage defaults commence, raters down-rate recent assessments
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Long-term home owners,municipalities, shareholders, counterparties (eg. ABK-AIG) sense trouble as they see money starting to evaporate
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Gov’t fudges around with rescue strategies but can’t outline a plan
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Accounting changes force banks to realize losses sooner than usual
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It’s too much, banks fold, get bought out, bailed out, etc. But mostly the neocons have made a killing.
History will determine if this has been the most financially irresponsible administration in the history of America.
Too bad Enron like prosecutions are now considered bad form and won’t be initiated.
from paying off my loan big guy.
$2,055 is my remaining principle. I paid $717 in principle my last house payment so I’m going to be done in December. My first loan in 1985 was at an interest rate of 12%. I got it down to 7% in 1991. I’m afraid we’re going to see some high interest rates again.
Now if I could only get my storeroom in order.
Good for you!
Cash is king/Gilpin Guy will be king.
It’s like saying nucular. So lowbrow.
There’s no excuse for being Bush lite.
Hopefully you won’t associate me with a unibrow. I got a chuckle out of that line in Shallow Hal.
Socialized home financing has been a disaster, and the Dems. ruled for 40 years in Congress, backing Fannie and Freddie all the way.
Clinton helped his buddies become overpaid and crooked CEOs of FNM and FRE, and Dems have had enough power in Congress since 1994 to block any reforms.
Not saying Repubs didn’t contribute to the problems, but listen to Barney Frank whore for the mortgage banking industry and you’ll understand the problems.
Similarly, both Dems and Repubs bent to the wishes of the investment banking and banking industries for the lightest possible regulation of their businesses, not just the Republicans.
Remember, most of the Wall Street investment bankers who caused these problems back Obama.
run McCain’s campaign.
Once again, the methane cloud around your head has seriously impaired whatever cognitive abilities God granted you.
FNMA was created in the depths of depression to put capital into the marketplace in the most secure of collateral, private homes. FNMC followed later with 99% the same mission, and as I’ve pointed out, it’s a stupid redundancy.
The GSE’s are perfect examples of government investing in the American citizen. The current problems ensued from the change of being fully federal agencies to semi-quasi-public and private.
Like the socialized retirement insurance, by your standards, the GSE’s have been rousing successes until made private.
Just got back from Senator Obama’s rally here. What a great speech! As John McCain admits that he is clueless when it comes to our nations economy, Mr. Obama addressed it head-on in his speech to 6000 admirers in our small community here today. Speaking of McCain’s lazzie fair and just not giving a damn attitude toward suffering Americans, Mr. Obama said:
And it was really good for the local party. There’s enthusiasm here again.
Empty rhetoric.
At least it’s, um, TRUE.
It’s McCain who’s ADMITTED – in a momentary fit of candor – that he knows nothing about economics.
Which may explain why McCain was talking about the “Fundamentally strong” economy this morning and the “Fundamentals at risk” economy this afternoon.
That’s a keeper. And a repeater.
Hurricane Greenspan?
about McCain’s boner on the Colorado River compact?
blasted McCain’s wish to steal Colorado water for his developer buddies in Arizona. McCain’s anti-Colorado positions have doomed his candidacy here. I wish someone would have brought up the fact that Sarah Palen TRIPLED the taxes on energy companies in Alaska and how she hands out $1200.00 welfare checks to every Alaskan with her wealth redistribution. It would show what a lying hypocrite she is.
Salazar spoke about it. Obama also said Rambo had wanted to renegotiate the compact. Didn’t go into detail tho’.
It was a great event. The weather was perfect. The crowd was receptive. There were at least 12,000 of us, maybe more.
Haven’t McCain’s boners caused him enough grief?
“The fundamentals of our economy are strong.”
— Sen. John McCain, in a speech today.
http://thepage.time.com/2008/0…
But we have some sick industries: Autos, housing, finance as well as some boming ones: Energy, agriculture, rail roads.
Politically, it was a pretty dumb statement, but Obama’s dumb statements on the economy offset the damage.
(Long silence?)
OK,
Offshoring
Legal services for companies offshoring.
Foreclosure specialist
Lawn mowing
Walmart greeter
Cabbie
Security. Guards.
Food presenter in grocery stores
OK, you continue.
See… lots of opportunities out there!!!
But over half our business is overseas and the world economy is doing well. So we have that cushion. We also save companies time & money and when things get tight, that actually can help us.
But with all that said, the uncertainity has got me up half the night. I’m responsible for the livelihood of a number of people. And we’re at the whims of the economy.
…if you didn’t blog all day!
Seriously, I’m glad your firm is hanging on. These are perilous times, indeed.
we’re a bunch of “whiners”. The architect of McCain’s economic plan, former Senator Phil Gramm, said so.
We are imagining the troubles at AIG, Lehman Brothers, WaMu, Fannie Mae and Freddie Mac and the losses of jobs, forclosures and the stock market dive. We are in a “Mental Recession” according to the McCain campaign. It’s all in our collective heads.
The final Dow was down 504.48 for the day, or more than 4.4%. 🙁
Yes, Pat Buchanan.
On Hardball, PB made what I think was a good point about the economy and the campaign.
Obama’s problem isn’t that he’s not right on the economy, he just isn’t convincing people of it. People know the economy sucks but Obama is not selling people that he’s the guy to fix it. You can’t just throw Bush/McSame/Palin in and win the argument. Elections are personal, not just folks voting for a list of positions…especially on the economy.
On top of that, he keeps talking about raising taxes (or rolling back tax cuts, whichever you prefer)on the wealthiest Americans. Raising taxes just doesn’t play well even when it’s the right move.
It’s part of the downside of the American Dream. You may not be in the top 2%, but you think that one day you’ll get there. (That’s my take, not Buchanan’s)
Obama’s scared of his own shadow, and he is afraid to say too much, fearing he’ll say “lipstick.”
Fox News? Drudge? I can almost hear you breathing heavily out of your mouth as you write your meaningless drivel.
You’re as bad as Schaffer’s hack with his “Boulder Liberal” tiresome rant.
You need a changeup pitch.
from McClatchy
And both parties have sold out to the lobbyists for the banking and mortgage banking as well as the housing industries. They all wanted policies that made it easy for poor credit risks to get mortgages they couldn’t and often had no intention of paying off.
Let’s get serious guys.
Yes, both parties have suckled at the WS teats. But the underlying philosophy of “the market” and deregulation is predominantly Republican.
Clinton signed the bill overturning Glass-Stegal. And the Dem whores in Congress were just as happy as the Republican ones to give the finance industry everything they wanted in return for donations and easy credit.
This was a failure of the leadership of our country.
I guess like many Americans I had no idea what that was or how and when it was taken away.
Like NAFTA, sometimes it takes awhile to see what the results of certain legislation. I’ll add this to my short list of Clinton disaster bills: NAFTA, the Telecommunications Act, Glass-Stegal. See, he really WAS a great Republican president.
Say both parties are responsible, before voting for the one that is the MOST responsible while saying the economy is good.
for the American auto companies tanking while ignoring the decisions of the car executives? Your observations would exonerate all those Wall Street executives that wanted deregulation. It is amazing how executives with vast power and wealth are never at fault when their industry collapses.
Blame the little guy and protect the rich. Classic Republican mantra.
.
at Wall Street.
They will feign anger at average starting salaries of over $1 Million,
bonuses greater than most PowerBall jackpots, and
other signs of obscene wealth.
I also predict that both campaigns keep asking Wall Street for contributions,
but less openly.
.
S&P’s reaction to the Merrill Lynch buyout by Bank of America was to downgrade BoA’s stock to their watch list.
With all of the questionable mortgage loan instruments floating around, I don’t know how the banks rescue each other. What happens when no-one wants to buy the (collateralized) debt you’re holding?
Hello? Do you folks have your thinking caps on??? McCain co-sponsored a bill as far back as 2005 and in the years since, to stop the irresponsibility of Fannie Mae and Freddie Mac – he predicted that they would eventually cause great harm to the American taxpayer if they weren’t reined in. Obama voted against the bill – why? Because he took over $125,000.00 in PAC money from Fannie Mae and Freddie Mac and he didn’t want to shut off the gravy train! McCain didn’t take any money from the Fannie Mae or Freddie Mac PACs.
Once again, McCain was looking out for the regular folks and Obama was looking out for Obama! Do your research, there’s plenty of evidence out there – Obama is Bad For Middle Class Americans!
Actually what McCain called for was completely deregulating Fannie and Freddie to remove their GSE status. It would have done nothing to impact the size and influence of FMNA FRE and would have removed the limited regulation that the GSEs were subject to.
It was killed in committee when the GOP still held the majority. It never came up for a vote.
Opposition to the bill was largely based around the fact that many, even on the right, recognized the GSE’s problem was that they had been deregulated in the 90’s.
Don’t repost things you read on the internet without actual knowledge–it discredits you.
The only way to solve this is to create more jobs and reduce taxes.
If we give business owners the opportunity to create new projects for energy independence that in turn will boost our economy.
Obama’s solutions all raise taxes. Rebates do nothing!
History usually repeats itself. Look at the 80’s Carter (a democrat) created the issues and Reagan came in and cleaned them up!