Paulson’s Bail-Out: No New Jobs
Henry Paulson’s program to save the economic universe from dark powers may or may not rescue the financial system. It comes with a $1 trillion checking account which the government will use to buy…
Economy
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Newest first · Page 405Fed Saves AIG’s (AIG) Bacon, Makes Two Sets Of Rules
The Fed rescued AIG (AIG), loaning the company $85 billion for two years in exchange for a 79.9% interest in the company. After allowing Lehman (LEH) to fail, the new arrangement with AIG raises…
FOMC Asleep At The Wheel
Well, the awaited FOMC announcement has finally come out and is a disappointment initially. The FOMC voted unanimously to leave interest rates unchanged at 2.00%. The Discount Rate was also unchanged at 2.25%. On…
The Phillips Curve Is Dead, Except At The Fed
By John Tamny, RealClearMarkets The Phillips Curve is the theory that inflation is the result of total demand outstripping total supply at the national level. In a recent speech, Fed vice chairman Donald Kohn…
Fed Rate Cut: No Guts, No Glory
The Fed may still be concerned about inflation given that the UK said consumer prices there had a core increase of 4.7%. Even with that news, the oil and commodities elements of rising costs…
FOMC Alert: Traders Now Looking At Possible Rate Cuts
Today wasn’t just a bad day for financial stocks and for the markets in general. It may have been a real game changer. But interestingly enough, there is now roughly a 32% chance that…
China Cuts Rates, Europe Central Banks Open Vaults
Central banks in Europe said they were ready to put billions of dollars into the financial markets to ease the current credit crisis. According to The New York Times, "The central bank said it…
The US Economy: Sunny Days Ahead
"You are my sunshine, my only sunshine; you make me happy when skies are gray" Alan Greenspan went on CNBC late yesterday to flog the paperback version of his ancient book "The Age of…
The Bear Market’s Big Sucker Rally (MSFT)(BA)(GE)(F)(FNM)(FRE)(WM)(LEH)
In community college Economics 101 students learn that there can be dips in bull markets. Usually these are caused by a single event like a change in the party that runs Congress. The same…
Unemployment Soars to 6.1% On Way to 8%
The jobs data isn’t getting better, and in fact is getting worse. The Labor Department has issued unemployment as being 6.1% in August, while consensus estimates were calling for a 0.1% increase to 5.8%.…
A Dozen Companies Which Should Lay-Off 10,000 People This Year
The evidence that sales at many companies are struggling and that employment will suffer are almost everywhere. Recently, a division of GMAC said it would let 5,000 people go. According to MSNBC, "Job cuts…
China Economics 101: Stimulation Causes Inflation
The communist central government in China is starting to sweat a slowdown in the national economy of the world most populated country. It has begun to dawn on them that the "law of large…
American Consumer Circa 1973
There may be some continued hope among the ludicrously optimistic that the current economic conditions will lead to a "soft landing" making it look a bit like most recent slow periods. The GDP dips…
UK: Worst Recession In 60 Years
If the US economy looks anything like the one in the UK, Americans should brace for the worst recession since WW II. That would probably mean unemployment of close to 15% and negative GDP…
Official Word: Economy Is A Mess
The federal government finally discovered what everyone already knew. The economy has gone to hell in a hand-basket. Personal income fell 0.7 percent in the month, the sharpest decline since a 2.3 percent plunge…