2008 September
Although Congress Squelches the "Paulson Plan" it's Still $700 Billion to You and Me
By Keith Fitz-GeraldInvestment DirectorMoney Morning/The Money Map Report Did U.S. taxpayers dodge a bailout bullet? Maybe not completely. To be sure, under the $700 billion credit-crisis bailout plan proposed by U.S. Treasury Secretary Henry M. “Hank” Paulson Jr., there were some decidedly scary codicils. For one thing, there was a near complete lack of taxpayer [...]
While Lawmakers Reach Credit Crisis Compromise, Money Morning Bailout Plan Expert Displays Doubt
By Jason Simpkins, Jennifer YousfiAnd William Patalon IIIMoney Morning Editors Congressional negotiators late yesterday (Thursday) reached a tentative agreement on a credit-crisis compromise that gives the Bush administration about a third of the $700 billion it has requested up front, but made sure half that outlay was subject to a congressional veto, published reports state. [...]
GE Cuts Earnings Forecasts Amid U.S. Credit Turmoil, Shifts Focus to Industrial Businesses in China
By Jason Simpkins Associate Editor General Electric Co. (GE), yesterday (Thursday) reduced its annual profit forecast for the second time this year and announced plans to reduce dependence on its financial services arm and focus more on the company’s industrial operations, particularly in China. “GE today revised its earnings guidance for the third quarter, to [...]
Dear Hank: Here's How to End the Credit Crisis at No Cost to Taxpayers
By Shah Gilani Contributing Editor While it's clear from the current credit crisis that our financial system is at a critical juncture, it's just as clear that there's no agreement over how we should fix the problems we face. The reality is that neither the plan put forth by U.S. Treasury Secretary Henry M. "Hank" [...]
Credit Crisis Update: U.S. Stocks Skid as Bailout Bogs Down, President to Address the Nation
By Jennifer Yousfi Managing Editor U.S. stocks dropped for the third straight day yesterday (Wednesday) on worries that increasingly rancorous debates will squelch a proposed $700 billion bailout of the U.S. financial system even as Federal Reserve Chairman Ben S. Bernanke warned Congressional leaders that the credit crisis was already damaging the American economy. As [...]
Buffett's Goldman Deal Has Big Benefits, but What Else is Berkshire Up To?
By Jason Simpkins Associate Editor Investing icon Warren Buffett took his own advice Tuesday – getting "greedy when others are fearful" – when he ignored the banking-sector bonfire and slapped down a cool $5 billion for a stake in Goldman Sachs Group Inc. (GS). By putting his money where his mouth is, Buffett's actions – [...]
Global Investing Roundups
Oil Prices Slide on Demand Drop; Home Prices and Sales Fall in August; Nike Adjusted Earnings Up 10%; GM to Sell Strasbourg Plant; Digg's New Dough; Ad Sales Slump; Yahoo's New Ad Platform; Daimler Trying to Unload Chrysler Oil prices slid back below $106 a barrel yesterday (Wednesday) after the Energy Information Administration said demand [...]
Confidence Crisis for Hong Kong Bank Tied to Lehman Bros. Rumors
By Jennifer YousfiManaging Editor Rumors of a capital crisis due to overexposure to distressed U.S. securities drove shares of a Hong Kong bank sharply lower today (Wednesday), as concerned customers lined up outside retail branches to withdraw deposits. The Bank of East Asia Ltd. (OTC ADR: BKEAY), commonly referred to as BEA, asked Hong Kong [...]
How Complex Securities, Wall Street Protectionism and Myopic Regulation Caused a Near-Meltdown of the U.S. Banking System
[In Part III of his three-story investigation of the credit crisis,Money MorningContributing Editor Shah Gilani details how the very complexity of the global financial system brought us to the brink of a total meltdown. In a special addendum tomorrow (Thursday), the former professional trader and hedge-fund manager will detail a banking-system overhaul that would immediately [...]
Why China is Still the World's Best Long-Term Profit Play
By Jason SimpkinsAssociate Editor While a recent crop of economic data suggests that China is not fully insulated from the economic turmoil that has overtaken the United States and Europe, some of that data is suspect. The upshot: The world's fastest-growing economy is still much better off than its Western counterparts and probably remains the [...]
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