Credit downgrades key catalyst in Wall Street titan's loss of value
Wall Street Journal 1 hour, 2 minutes ago
(Newser)
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After dodging many of the bullets that left its Wall Street peers wounded or dead, Goldman Sachs faces a net loss of up to $2 billion for the fourth quarter, the Wall Street Journal reports. The loss of $5 per share is five times worse than analysts feared as the firm deals with writedowns across its portfolio. Shares plunged $13.23, or 17%, yesterday.
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New video ties terror wars to financial meltdown
Associated Press Nov 28, 08 10:58 AM CST
(AP)
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Al-Qaeda's No. 2 leader appeared in a new video posted today calling on Americans to embrace Islam to overcome the financial meltdown, which he said was a consequence of the Sept. 11 attacks and militant strikes in Iraq and Afghanistan. Ayman al-Zawahiri's 80-minute recording also lashed out at Afghanistan's government and said any US gains in Iraq will be temporary.
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Retailers will default, no matter how many sweaters you buy today
Associated Press Nov 28, 08 9:02 AM CST
(AP)
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Black Friday shoppers hunting for holiday bargains won't be enough to stave off what's likely to become the next economic crisis. Malls from Michigan to Georgia are entering foreclosure, commercial victims of the same events poisoning the housing market. Hotels in Tucson, Ariz., and Hilton Head, SC, also are about to default on their mortgages.
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Few delays reported on roads, airports at start
of Thanksgiving rush
Associated Press Nov 26, 08 11:53 AM CST
(AP)
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Travelers breezed through airport terminals and drivers cruised open roads today, the effects of a sour economy blamed for keeping people closer to home at the start of the annual Thanksgiving rush. Even though gas prices fell and airlines offered last-minute deals, many Americans appeared to be skipping trips this year.
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MARKETS
New consumer credit plan inspires confidence on the street
Wall Street Journal Nov 25, 08 3:16 PM CST
(Newser)
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Stocks were mixed today, as enthusiasm over the Fed’s plan to get banks lending was tempered by a downward revision to third-quarter GDP and a drop in a home-price index, the Wall Street Journal reports. The Dow rose 36.47—its third consecutive up session—to 8,479.86. The Nasdaq fell 7.29 to settle at 1,464.73, while the S&P 500 rose 5.60, closing at 85741.
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OPINION
CNN Nov 24, 08 2:47 PM CST
(Newser)
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Lame-duck presidents have made their share of last-minute legislative contributions, and the current lame duck need be no different, historian Julian E. Zelizer writes for CNN. “Bush does not have to sit on his hands until January 20,” Zelizer writes, and calls on him to “follow the tradition of lame-duck presidents who tried to make a difference, rather than simply playing out the clock.” They include Carter, Reagan, Clinton, and Bush 41.
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Bloomberg Nov 22, 08 12:14 PM CST
(Newser)
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Barack Obama says he will move quickly once in office to enact an ambitious, two-year plan to save or create 2.5 million jobs, Bloomberg reports. Obama announced his plan in his weekly radio address, where he also warned that “we risk falling into a deflationary spiral that could increase our massive debt even further.” About 1.2 million jobs have already been lost this year, and the trend could continue.
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OPINION
The downtime before inaguration could make things grimmer yet
New York Times Nov 21, 08 10:32 AM CST
(Newser)
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The state of the economy right now reminds Paul Krugman a lot of the start of the Great Depression, including a lame-duck administration that seems to have no credibility, hence no influence on the markets, the columnist writes in the New York Times . Drastic damage was done to the country in the months of paralysis between the election and the inauguration of Franklin Roosevelt, and Krugman sees the same thing happening now.
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Plan would repurpose $25B fuel-efficiency carrot already passed
Detroit News Nov 19, 08 1:47 PM CST
(Newser)
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Senate Republicans are crafting legislation that would repurpose an already-approved $25 billion Energy Department initiative to bail out struggling automakers, the Detroit News reports. The plan is at odds with Democratic efforts, which would use money from the $700 billion Wall Street bailout to help Detroit. The Energy money was originally intended to spur an increase in fuel efficiency.
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New York Times Nov 18, 08 5:17 PM CST
(Newser)
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The CEOs of the Big Three automakers told the Senate today that a $25 billion bailout of the industry is necessary to prevent "catastrophic" effects on the economy, the New York Times reports. “If the domestic industry were allowed to fail,” said GM's Rick Wagoner, it would mean “three million jobs lost within the first year.” Meanwhile, Chrysler's Robert Nardelli disclosed that his company, like GM, is on the verge of bankruptcy.
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Crisis has insurance titans desperate for capital
Bloomberg Nov 17, 08 4:21 PM CST
(Newser)
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Four huge insurers are in the process of buying small, troubled S&Ls in order to qualify for a chunk of the Treasury’s bailout cash, Bloomberg reports. Genworth Financial, Lincoln National, Hartford Financial Services, and Aegon NV have set their sights on US banks cited for “unsafe and unsound” financial practices and have announced their intentions to apply for bailout aid.
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