11 March 2008
News and Comments - 03/11/08
Posted by Terrie Soberg under: What's News .
15 Comments so far...
Joy Bischoff Says:
11 March 2008 at 12:40 am.
Here is part of an article out of the UK tonight that Sharon Anderson sent me:
Market panic after Bear Stearns reports
By Ambrose Evans-Pritchard
Last Updated: 1:17am GMT 11/03/2008
Panic swept the credit markets on reports of an insolvency crunch at both the US investment bank Bear Stearns and the mortgage giant Fannie Mae, triggering a dramatic surge in default insurance and rumours of yet another emergency rate cut by the US Federal Reserve.
Bear Stearns headquarters in New York: Insolvency fears set off storm in credit markets
There are fears that Bear Stearns have been unable
to raise capital to cover mortgage losses
Financial shares plummeted on Wall Street in another day of wild trading as the markets began to fear that the $200bn (£100bn) life-line pledged by the Fed last Friday would not be enough to halt a vicious downward spiral.
The Dow Jones index was off 137 points to 11757 in New York, breaking through the crucial support line of its January lows. Credit default swaps (CDS) measuring bankruptcy risk on Bear Stearns debt rocketed from 246 points to 792 on fears that it had been unable to raise capital to cover mortgage losses and was preparing to invoke Chapter 11 bankruptcy protection.
“There is no truth to the liquidity rumours,” said a spokesman.
Almost every indicator of credit stress was flashing warning signals. The CDX index measuring default risk on US investment grade bonds rose to 190 and the iTraxxx Europe touched 150.
Bank of America said the Fed would have to cut rates to 1.5pc by the middle of the year. The futures markets have begun to price in the serious possibility of a 100 basis point drop next week. Goldman Sachs said the Fed chairman, Ben Bernanke, might push through an emergency cut even sooner.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/11/cnbear111.xml
Jesse Says:
11 March 2008 at 12:55 am.
No wonder it is so cold outside. I think hell is freezing over because for once I agree with Al Sharpton.
Lawsuit Eyed by Sharpton Over Florida
Laying the groundwork for a court battle that could divide the Democratic Party, the Reverend Al Sharpton is threatening to sue the Democratic National Committee if it counts Florida’s primary results in the official presidential delegates tally.
Rev. Sharpton is traveling to Florida today to compile lists of residents who skipped the January contest because they thought their votes would not count. He plans to have those residents sign affidavits saying they would be disenfranchised by the seating of the Florida delegation, in the event the Democratic Party allowed that to happen.
The party had promised to exclude Florida and Michigan from the nomination process after the states scheduled their primaries in January, earlier than party rules had allowed, but the close contest between senators Clinton and Obama has turned attention toward those primaries, prompting debate between the campaigns and party leaders over how to handle the lockout.
Cavetrollhead Says:
11 March 2008 at 2:19 am.
Lol. Yes me too Jesse. I actually agree with Shakedown Sharptown.
And Joy, I have stopped contributing to my 401k even though the company matches 50%. I think I will start again once things have begun to recover in a couple of years. (hopefully it will recover that soon.)
Cameron Says:
11 March 2008 at 6:38 am.
Looks like another banner year for the oil companies.
Gasoline price spike has only just begun
Motorists should expect to pay upwards of $3.75 a gallon in the coming weeks as prices at the pump catch up with record crude, but relief may arrive by summer.
By Steve Hargreaves, CNNMoney.com staff writer
Gas prices, already near a record high, will likely add another 50 cents a gallon in the next few weeks.
NEW YORK (CNNMoney.com) — Gasoline hit record levels Tuesday - and experts say it will likely continue to soar in tandem with the skyrocketing price of crude.
The national average retail price for gas has risen 27 cents in the last month to $3.227 a gallon, matching the all-time high set on May 24, 2007, according to the motorist organization AAA.
And experts say motorists should prepare to pay nearly $4 a gallon - and in some places even more than that - before the price of gas finally comes down in the late spring as high prices crimp demand.
The price of gasoline usually increases this time of year. Several factors contribute to the runup: Low refinery output due to maintenance, a switch from winter to pricier summer blends, and the looming high-demand summer driving season.
Experts say this time around the spike will be more pronounced, mostly due to the surging price of oil and, to a lesser extent, refiner’s attempts to grow their profit margins.
http://money.cnn.com/2008/03/10/news/economy/gas_prices/index.htm?eref=yahoo
Angela Rogin Says:
11 March 2008 at 10:24 am.
I didn’t know gas could hurt. Ouch ouch ouch. The stop and go traffic I drive in just eats it up. All the while we have so much oil just sitting. Well not all of it is sitting. In the gulf Mexico and Cuba are just siphonnng it off.
Matt Says:
11 March 2008 at 11:12 am.
This guy is not living in reality to not resign right away.
IMPEACHMENT PROCEEDING?
Republicans Set Deadline For Governor’s Ousting: ‘I’ve Asked Him To Resign’
NEW YORK (CBS) ? If Gov. Eliot Spitzer opts to roll the dice and not resign, state Republican leadership will force him to go all-in and call for his impeachment from office, according to a state Assemblyman, who admitted he asked the governor to step down.
Sources told CBS 2 HD shortly after it was reported that the governor was linked to a prostitution ring that he would likely hand in his resignation, which could happen within the next 36 hours.
One way or another, the clock is ticking on Spitzer’s next move.
http://wcbstv.com/breakingnewsalerts/spitzer.prostitution.ring.2.673848.html
Cameron Says:
11 March 2008 at 11:15 am.
Oil prices break fresh record high near $110
Oil prices struck a record high of 109.72 dollars per barrel on Tuesday after the dollar hit a fresh all-time low against the euro and amid persistent energy supply concerns, traders said.
New York’s main oil contract, light sweet crude for delivery in April, soared to the historic level, beating the previous peak of 108.21 dollar that was set on Monday.
http://www.breitbart.com/article.php?id=080311144348.faqp5u5q&show_article=1
Cameron Says:
11 March 2008 at 11:19 am.
Stocks surge on Fed move
Wall Street cheers news that the central bank is pumping an additional $200 billion into the banking system.
NEW YORK (CNNMoney.com) — Stocks surged Tuesday morning after the Federal Reserve said it would loan up to $200 billion to banks and lenders in an effort to loosen up tight credit markets.
The Dow Jones industrial average (INDU) soared more than 250 points in the early going. The blue-chip index had ended the previous session at a 17-month low.
http://money.cnn.com/2008/03/11/markets/markets_morning/index.htm?cnn=yes
E.E. Says:
11 March 2008 at 1:25 pm.
Shakedown Sharptown, LOL. What a scam it would be to say those delegates wouldn’t count so Obama doesn’t campaign in those places then seat them. I don’t put anything past the dems any more.
Joy Bischoff Says:
11 March 2008 at 3:37 pm.
When there is good economic news we want to definitely announce that.
Stocks Shoot Higher on Fed Credit Plan
Tuesday March 11, 4:25 pm ET
By Joe Bel Bruno, AP Business Writer
Dow Jumps More Than 400 Points After Fed, Other Central Banks Move to Ease Credit Crisis
NEW YORK (AP) — Wall Street finally found a reason for a huge rally Tuesday, after the Federal Reserve said it plans to pump $200 billion into the financial markets to help ease the strain from the credit crisis. The Dow Jones industrial average shot up more than 416 points, its biggest one-day point gain since July 24, 2002.
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The Fed’s program is part of a worldwide effort to help struggling banks and mortgage providers. The Fed — acting in concert with the European Central Bank, the Bank of Canada and the Swiss National Bank — agreed to loan investment banks money in exchange for debt, including slumping mortgage-backed securities.
The move is meant to essentially create a market for assets that investors have been too scared to buy. That freeze-up in demand had sent asset values plunging and caused huge losses for some of the world’s biggest banks.
http://biz.yahoo.com/ap/080311/wall_street.html?.v=32
S.J. Says:
11 March 2008 at 4:03 pm.
So Joy do you think this will straighten the economy out then?
Joy Bischoff Says:
11 March 2008 at 5:10 pm.
S.J., I was trying to be positive since I have been so negative about the economy lately. As far as straightening out our economy, what happened today in the long run exacerbates our problem. It is only through savings and production that we will put our economy on a firm foundation. Getting deeper into debt just puts things off. I am concerned that foreign banks and governments are basically buying America. The Fed worked with the European Central Bank, the Bank of Canada and the Swiss National Bank agreed to loan investment banks money in exchange for debt, including slumping mortgage-backed securities.
So these foreigners just bought up a nice chunk of America.
Saddened Says:
11 March 2008 at 5:23 pm.
But the stock market going up is a good thing isn’t it?
Joy Bischoff Says:
11 March 2008 at 5:28 pm.
Sure it is, Saddened. That’s why I wanted to share the good news. But when pressed, I don’t want to give false hope that this is the solution. Long term stability comes through real growth not borrowing money. The fiddler will have to be paid some day. This forestalls things and maybe can help people have time to work toward personal stability to a certain degree. There is still a lot of good in the world and things to be happy about.
Saddened Says:
11 March 2008 at 5:40 pm.
Dang. I was kind of afraid of that. Well thanks for answering.
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