Nevertheless, US is 'navigating the mother of all financial storms'
Bloomberg Nov 4, 08 1:46 PM CST
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The credit crisis has had at least one unintended positive effect, stopping a growing threat of inflation, Bloomberg reports. Dallas Fed president Richard Fisher said “inflationary momentum froze in its tracks” as the credit market did the same, but otherwise had a poor view of the economy. “I don't see any economic growth in 2009,” he said. “None.”
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Twin concerns drive new consumer psyche
Wall Street Journal Nov 4, 08 10:43 AM CST
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Affluent Americans are folding up the Gucci sunglasses and trying green living's thriftier practices on for size, a response to environmental and economic concerns that's sure to dampen spending for the duration of the recession, the Wall Street Journal reports. "People aren't shopping to feel better," said one retail consultant. "They actually are not shopping to feel better."
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After seeing some thawing in key credit markets, Treasury may expand program
Wall Street Journal Nov 4, 08 8:21 AM CST
(Newser)
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Treasury is considering using some of the $700 billion at its disposal to buy stakes in a range of financial companies beyond banks, the Wall Street Journal reports. The idea comes after seeing measured success in thawing credit markets by taking equity stakes in several banks. Treasury may also abandon its plan to buy troubled assets from banks at auction, instead purchasing those directly.
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Debt tightens as profits fall for many acquired companies
New York Times Nov 3, 08 11:30 AM CST
(Newser)
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After a nearly 3-year buyout spree, private equity firms are facing tightened credit conditions just as slumping consumer spending squeezes many of their acquisitions, the New York Times reports. The leveraged-buyout bubble that culminated in $796 billion in deals in 2007 is bursting, leading to a grim reckoning as firms saddled with the debt used to buy them are unable to secure fresh credit to weather the downturn.
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Tallest building in Ireland would house band's studio
AFP Nov 1, 08 2:20 PM CDT
(Newser)
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Not even Bono is immune to the gloomy economy. Plans for a record-breaking Dublin skyscraper partly financed by the band U2 are on hold thanks to the global crisis, AFP reports. The U2 Tower, designed by architect Norman Foster, would be the tallest in Ireland and house a studio for the band. A city agency said the project was on hold, but that “the objective is to see this landmark project complete.”
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After credit downgrade, firm reports 67% decline in quarterly net income
Wall Street Journal Oct 29, 08 3:03 PM CDT
(Newser)
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MGM Mirage will suspend work on new casinos in Las Vegas and Atlantic City due to the dismal credit climate, the Wall Street Journal reports. The firm reported a 67% drop in third-quarter net income as the slumping economy quells consumers’ desire to gamble or spend at casino restaurants and luxury shops. Fitch downgraded MGM Mirage’s credit rating to “junk” level last week.
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With Inflation fears fading, 'the issue now is how bad the recession will be'
Bloomberg Oct 29, 08 8:44 AM CDT
(Newser)
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Worries about inflation are taking a backseat to recession fears as the Federal Reserve today is likely to lower its benchmark rate another half-point to 1%, with the possibility it could go to zero by June if the economy doesn’t rebound, reports Bloomberg. “The issue now is how bad the recession will be,'' said one expert.
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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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Gas drops 53 cents in two weeks
Reuters Oct 27, 08 3:35 AM CDT
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Gasoline prices have dropped 53 cents in the last two weeks, the steepest decline ever, according to the nationwide Lundberg Survey. The national average price for a gallon of regular unleaded is $2.78, Reuters reports. Wichita, Kansas, has the cheapest gasoline, at $2.26 a gallon, and San Francisco gas is the most expensive, at $3.37.
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With AIG sinking, banks are calling loans to transit agencies
Washington Post Oct 24, 08 2:55 PM CDT
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Transit agencies nationwide are facing the prospect of unexpectedly having to repay billions in loans to large banks under financing deals made years ago, the Washington Post reports. Because AIG guaranteed many of the agreements, the insurance behemoth's woes could potentially affect millions of public transit riders as banks worldwide demand full payment for multimillion-dollar loans in coming weeks.
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Restructuring bank will trim 3,000 employees
Reuters Oct 23, 08 7:39 AM CDT
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Goldman Sachs will cut almost 3,300 jobs, or about 10% of the bank's total staff, an insider told Reuters today. Although Goldman has weathered the credit crisis better than its competitors, its transition from an investment bank to a traditional enterprise means that it will have to obey stricter regulations and take fewer risks. The bank had no comment.
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OPINION
Coffee empire's rise tracked (and fueled) housing's, and store locator mirrors trouble spots
Slate Oct 21, 08 3:48 PM CDT
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A simple tool could hold the key to predicting where the financial crisis will strike next, Daniel Gross writes on Slate: Starbucks’ Internet store locator. “Having a significant Starbucks presence is a pretty significant indicator of the degree of connectedness to the form of highly caffeinated, free-spending capitalism that got us into this mess.”
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