As Treasury shifts gears from assets to equity stakes, firms shy away
Wall Street Journal Nov 7, 08 10:22 AM CST
(Newser)
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A survey of more than 400 financial institutions found a large percentage are reluctant to participate in the $700 billion bailout program because of confusion, the Wall Street Journal reports. As Treasury hastily shifted gears from the original plan to buy toxic debt to taking equity positions in banks, more than nine in 10 firms said a “lack of clarity” has kept them from participating.
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Investors cashing out
in record numbers to meet obligations
Wall Street Journal Nov 7, 08 9:25 AM CST
(Newser)
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Hedge funds are increasingly to blame for the swooning Dow, the Wall Street Journal reports, as demands from investors to withdraw funds have sparked a securities selling frenzy in recent days. The rush to withdraw comes as investors—endowments and pension funds as well as wealthy individuals—see other investments shrink and need cash to cover their obligations.
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Seeking to loosen credit, central banks plan another round of cuts
Washington Post Oct 28, 08 10:30 AM CDT
(Newser)
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Central banks worldwide are slashing interest rates, attempting to stem the bleeding in financial markets as investors dump holdings, credit remains tight, and currencies spasm in value, the Washington Post reports. The Federal Reserve is set to cut rates for the second time in as many weeks tomorrow, while the EU plans to do the same next week. South Korea cut three-fourths of a point yesterday.
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Beijing steps up as leaders craft plans to manage economies
Washington Post Oct 25, 08 6:15 PM CDT
(Newser)
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Asian and European world leaders joined forces today to call for stricter regulation of world financial markets and a shakeup of the monetary system, the Washington Post reports. The declarations marked the close of a 2-day summit in Beijing attended by more than 40 heads of state. Bailouts in the West are "not enough given the current situation, and more needs to be done," said Chinese Prime Minister Wen Jiabao.
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OPINION
When fear is rampant, the markets discount America's future
New York Times Oct 17, 08 9:32 AM CDT
(Newser)
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“I’ve been buying American stocks,” Warren Buffett writes in the New York Times , and he'd like to see a stampede of others following suit. Sure, the financial system is a mess, global economies are faltering, unemployment is rising, and headlines will continue to terrorize markets. But markets will repair themselves, says the Oracle of Omaha, and those who wait for "the comfort of good news" will lose out.
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UPDATED
Associated Press Oct 14, 08 7:43 AM CDT
(AP)
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President Bush this morning confirmed the government's $250 billion plan to buy shares in banks, in the latest move to calm the turmoil in the financial markets and stave off a deep recession. Speaking from the Rose Garden after an early-morning meeting with economic advisers, Bush said the move will help restore confidence and "return our economy to the path of growth and prosperity."
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OPINION
Analyst gives four
signs of sanity to scan your tea leaves for
Wall Street Journal Oct 6, 08 9:14 AM CDT
(Newser)
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The main thing ailing the credit markets is a crisis of information, writes L. Gordon Crovitz in the Wall Street Journal , so it’ll probably end when we have some. Things may be looking up when… Prices are discovered: Right now, there’s no demand for mortgage-backed securities, and hence no price. When we see some transactions that don’t involve the government, the picture will be clearer.
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Monetary fund chief pressures Congress to pass bailout, Europe to make plans
Guardian (UK) Oct 1, 08 7:30 AM CDT
(Newser)
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The US must act swiftly to avoid economic meltdown and Europe's banks need to be ready with emergency plans of their own, IMF's managing director warns. European and Asian markets have bounced back on the prospects of a revived US bailout deal, but JP Morgan analysts warned yesterday that Europe's banks face another $45 billion in losses before the end of the year, the Guardian reports.
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UPDATE
US economic illness goes viral
Bloomberg Sep 30, 08 3:50 AM CDT
(Newser)
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Europe markets edged back up after an early drop today as the failure of the US bailout package continued to sap confidence worldwide, Bloomberg reports. Asia's markets went into freefall on opening this morning but gradually recouped some losses on hopes of a fresh deal. The Nikkei index was down nearly 5% before closing 4.12% lower, Reuters reports, while Hong Kong's closed up almost 1%.
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ANALYSIS
Deadline looms tomorrow for investors to bail from already-struggling market
New York Times Sep 29, 08 9:43 AM CDT
(Newser)
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Hedge funds are bracing for a major test of wills tomorrow, the deadline for investors to withdraw from the funds for the rest of the year, the New York Times reports. A spate of withdrawals could cause a cascade of flight from the $2 trillion industry, which has seen its worst year ever, with the average fund down 10%.
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Biz slows as
bailout talks stall
Reuters Sep 26, 08 7:00 AM CDT
(Newser)
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The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in.
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Their money is in riskier investments these days
New York Times Sep 23, 08 10:43 AM CDT
(Newser)
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Among those hardest hit by the financial crisis are retirees, and they have less chance to recover than their younger counterparts, the New York Times reports. As companies have abandoned fixed pensions for 410(k)s, retirees can lose large percentages of their wealth in a short period. And low-risk investments, like bonds, simply don't offer enough income.
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