tag:blogger.com,1999:blog-47945627072145893602008-10-12T06:10:58.168-07:00Finance and investment news and analysis, insight, trading tips every business day.Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comBlogger444125871469http://www.feedburner.comtag:blogger.com,1999:blog-4794562707214589360.post-42988969006180084452008-10-10T14:20:00.000-07:002008-10-10T14:21:27.190-07:002008-10-10T14:21:27.190-07:00

Global financial markets have taken steep discounts over the past week, in addition to falling values over the past year due to the unwinding of credit markets. After weeks of hand-wringing and record declines on stock exchanges around the world, the US markets had the final say of the week and indications are encouraging that most of the selling may be over. US markets were down sharply in the

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-69102216953051540312008-10-09T14:55:00.000-07:002008-10-09T14:56:46.357-07:002008-10-09T14:56:46.357-07:00

The Dow Jones Industrial Average, the most revered index on the planet, has been bruised and battered to a shell of its former self over the past month. On September 8, the index closed at 11,510.74. A month later - just 23 trading days - it is nearly 3000 points lower, a decline of 25.5%, much of it occurring in just the past seven sessions. From its high a year ago at 14,250, the Dow is now

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-65789496308626559942008-10-08T14:16:00.000-07:002008-10-08T14:18:32.806-07:002008-10-08T14:18:32.806-07:00

Spirits were lifted slightly this morning on news of an emergency rate cut by the US Federal Reserve which was coordinated with similar rate reductions in other major countries. The Fed funds rates was cut from 2% to 1.5%. The Bank of England cut its rate from 5% to 4.5% and the European Central Bank ordered a 0.5% cut in its key rate to 3.75%. Central banks around the globe responded by

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-5949821527482691792008-10-07T14:11:00.001-07:002008-10-07T14:11:56.819-07:002008-10-07T14:11:56.819-07:00

Those investors who did some bargain hunting in the closing hour of trade Monday may not look so wise after today's horrific results. On the other hand, they just may have been a few days, weeks or months early. The stock market was pretty easy to figure on Tuesday. All one had to do was draw a diagonal line at a 20 degree angle from the open and the closing price was right there. Panic would

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-22313120083123387952008-10-06T14:11:00.000-07:002008-10-06T14:12:40.609-07:002008-10-06T14:12:40.609-07:00

The continuing credit crisis took its toll on frazzled investors again on Monday, with the Dow down as much as 800 points shortly before 3:00 pm. From that point forward, however, stocks rallied across all indices shaving the losses by more than half in the final hour. Dow 9,955.50 -369.88; NASDAQ 1,862.96 -84.43; S&P 500 1,056.89 -42.34; NYSE Composite 6,754.91 -334.03 What moved stocks late

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-31774339497025840522008-10-03T14:58:00.000-07:002008-10-03T14:59:28.690-07:002008-10-03T14:59:28.690-07:00

All major US stock indices were higher at the outset of trading on Friday as passage of the massive financial industry bailout bill (let's call a spade a spade) by the House of Representatives seemed likely. The Dow was up more than 300 points by mid-day, but once news that the bill had passed the House and was en route to a sure signing by President Bush, a general sell-off ensued, taking down

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-69625778917534697082008-10-02T14:05:00.000-07:002008-10-02T14:06:48.789-07:002008-10-02T14:06:48.789-07:00

On Wednesday night, the United States Senate overwhelmingly passed (74-25) the massive $700+ billion bailout plan, similar to the one that was rejected by the House of Representatives on Monday. The final bill before the Senate looked quite different from the House version. In addition to being 475 pages in length, the bill added a number of provisions for tax relief, various tax credits and

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-81401399324518015162008-10-01T15:29:00.001-07:002008-10-01T15:29:45.857-07:002008-10-01T15:29:45.857-07:00

The Dow recovered from a 200-point loss early on and finished moderately lower as prospects for a bailout or "rescue" (as John McCain prefers) bill improved overnight with key Senators vowing a vote on the measure Wednesday night. A number of new elements have been tossed around the periphery of the plan that failed in the House on Monday, the best-received being a move to increase FDIC

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-4627021239419948532008-09-30T14:02:00.001-07:002008-09-30T14:02:56.306-07:002008-09-30T14:02:56.306-07:00

The US stock markets are volatile enough to drive a sober man to drink. Of course, adroit options players are having a field day on the wild swings with naked straddles and bets one way or the other. But the noise has to be filtered out and I found an exceptional article on cnn.com by economist Jeffrey Miron which expresses a belief that bankruptcy, not bailout, is the correct solution,

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-12421287643939822432008-09-29T13:51:00.000-07:002008-09-29T13:52:29.705-07:002008-09-29T13:52:29.705-07:00

With the ill-advise and hastily-prepared Emergency Economic Stabilization Act of 2008 failing in the House of Representatives, conservatives and liberal alike are cheering the 228 members who voted against the measure. The actual votes cast by each member of the House can be seen here. Failing largely along party lines, the measure now seems doomed to permanent defeat even though stocks -

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-46204082494327335472008-09-29T11:30:00.001-07:002008-09-29T11:30:58.183-07:002008-09-29T11:30:58.183-07:00

The House of Representatives, for once heeding the overwhelming voice of the public, voted down the massive $700 billion bailout of Wall Street banking interests. By a vote of 228-205, the Emergency Economic Stabilization Act of 2008 bill was defeated across party lines, with rank-and-file Democrats and Republicans defeating the measure. As expected, Wall Street reacted with shock and horror.

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-67417010939697417392008-09-29T08:23:00.000-07:002008-09-29T08:24:26.297-07:002008-09-29T08:24:26.297-07:00

The proposed federal bailout plan which is scheduled for a vote in the House of Representatives today, Monday, September 29, 2008, is nothing more than a $700 billion expense to taxpayers, with limited congressional oversight and no hard provisions to limit executive enrichment or protect either homeowners or taxpayers. In the bill, known as the Emergency Economic Stabilization Act of 2008, and

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-82241498031329845112008-09-26T13:51:00.000-07:002008-09-26T13:54:30.791-07:002008-09-26T13:54:30.791-07:00

Well, the markets gave us all the answer we were seeking. There really wasn't a "severe financial crisis" such as was being peddled by Henry Paulson and the Bush administration. It was all scare tactics designed to steal $700 billion dollars from US taxpayers and give the Treasury Secretary unimpeachable powers. They failed. Miserably. The Dow finished up 118 points on Friday and is up a very

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-63260477621812304832008-09-26T10:02:00.000-07:002008-09-26T11:35:17.431-07:002008-09-26T11:35:17.431-07:00

Overnight, while the politicians in Washington dreamt sweet dreams of re-election and $700 billion bailouts, the FDIC took over Washington Mutual, sold a portion of the assets to JP Morgan Chase (the rich really do get richer) for about $1.9 billion and maybe saved the economy. Geez, regulators actually doing the right thing. What a concept. In the nation's capitol, president Bush and his

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-48329889698483679302008-09-25T13:48:00.000-07:002008-09-25T13:49:11.946-07:002008-09-25T13:49:11.946-07:00

Editor's Note: There is so much to be said here, I could write for days and not even begin to scratch the surface, so today's normal single post is being broken into two parts, but since this is a blog in reverse chronological order, I'm publishing this part last. First, an overview of the day's events. Basically, if you're not up to speed on the destruction of the American financial, legal and

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-77132493814157445692008-09-25T13:42:00.000-07:002008-09-25T13:48:08.835-07:002008-09-25T13:48:08.835-07:00

The government, which is supposedly under the purview of the "people" has run amuck. They are not responsive to the wishes of the people. Congressional aides said that calls were coming in to their offices yesterday 99-1 AGAINST any kind of bailout, yet the government presses ahead. And, sure, we've had these kinds of things before, but this is very different. They are going to sweep away all

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-53790258533539384402008-09-24T15:20:00.000-07:002008-09-24T15:22:06.344-07:002008-09-24T15:22:06.344-07:00

The debate on Capitol (or should it be "Capital") Hill rages over whether to grant Treasury Secretary Henry Paulson a $700 billion check to ball out failing - or already failed - financial institutions. On Tuesday, the Secretary and Fed head Ben Bernanke gave testimony and fielded questions from the Senate. Today, it was members of the House of Representatives who took turns poking and prodding

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-73115754546994270802008-09-23T13:47:00.000-07:002008-09-23T13:49:20.487-07:002008-09-23T13:49:20.487-07:00

The Gospel according to Bernanke and Paulson: Heed ye these dire warnings. Iffeth thou do not giveth the sum of seven hundred billion US drachmas to your brethren in the financial services industries, whatfor good are ye, oh, congress! For iffeth thou shall fail to giveth away the money of the taxpayers to the richest men in the world, a terrible plague shall befall both of your houses: those

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-49918164176198190772008-09-22T13:48:00.000-07:002008-09-22T14:20:18.659-07:002008-09-22T14:20:18.659-07:00

If you thought last week's market action was wild, hold on. The second act: this week, figures to create such a climate of fear and derision the likes of which most traders and common people have never seen. Remember 9/11. That bears repeating: Remember 9/11, when the Twin Towers were felled, supposedly by fires caused by airplanes smashing into them 90 stories above ground. It was fiction then

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-28958839144030498972008-09-19T13:49:00.000-07:002008-09-19T16:10:03.467-07:002008-09-19T16:10:03.467-07:00

Fear. It's what drove the Dow down 950 points over two days this week. Oddly enough, fear also was the motivating factor behind Wall Street's dramatic two-day turnaround in which the Dow gained back nearly 800 points. On Monday and Wednesday, the fear was that major investment banks were about to cause a global financial meltdown. On Thursday and Friday, the days the market rebounded, that same

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-10928503631860253232008-09-19T06:17:00.000-07:002008-09-19T06:19:03.399-07:002008-09-19T06:19:03.399-07:00

Government Taking Extreme Measures to Rescue Corporate America Unbelievable. The measures being undertaken by various branches of the government, including the congress, the SEC and Treasury in concert with the Federal Reserve are the most extraordinary that I have ever seen. The US Treasury is opening a function that will guarantee money market funds. Treasury also recently announced plans to

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-526894554792647732008-09-18T14:09:00.000-07:002008-09-18T14:10:30.729-07:002008-09-18T14:10:30.729-07:00

Briefly, how the Dow gained 400 points after losing 450 on Wednesday: Before the markets open, the Federal Reserve, along with the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank inject $180 billion into into financial markets in an effort to add liquidity. By 10:00 am, the plan seems to be working. The Dow Jones Industrials are up 200 points. Investors,

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-66725905094456217252008-09-17T14:05:00.000-07:002008-09-17T15:52:44.585-07:002008-09-17T15:52:44.585-07:00

When US stock markets opened on Wednesday, with fresh news that insurer AIG would receive an $85 billion loan from the Federal Reserve in exchange for an 80% equity stake in the company, there was hope that Wall Street could manage to display at least a modicum of confidence that a major economic calamity had been avoided. What occurred was exactly the opposite. Fear that more highly-leveraged

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-58354187416271019292008-09-16T20:21:00.000-07:002008-09-16T20:22:09.845-07:002008-09-16T20:22:09.845-07:00

After the markets closed, the Federal Reserve authorized an $85 billion emergency loan to insurance concern American International Group (AIG). The nation's largest insurance company, AIG fell into the "too big to fail" category, which is a bunch of rubbish, but nevertheless qualifies it - in the minds of policy makers at the Federal Reserve - for assistance from US taxpayers. Though the story

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.comtag:blogger.com,1999:blog-4794562707214589360.post-20255824821309800892008-09-15T14:39:00.000-07:002008-09-15T14:40:53.415-07:002008-09-15T14:40:53.415-07:00

The world financial system met with extreme turmoil Monday morning as Lehman Bros., one of Wall Street's best-established investment banks, began the day by filing for bankruptcy protection in federal court. The latest victim of the ongoing liquidity crisis, Lehman failed to find a buyer of last resort to rescue its failing franchise. Shares fell to 21 cents at the close of the session. Lehman

Rickhttp://www.blogger.com/profile/03750146830682218859noreply@blogger.com