BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Across the pond, the E.U. is talking about a rescue package for Europe]]>http://www.bloggingstocks.com/2008/10/02/across-the-pond-the-e-u-is-talking-about-a-rescue-package-for/http://www.bloggingstocks.com/2008/10/02/across-the-pond-the-e-u-is-talking-about-a-rescue-package-for/http://www.bloggingstocks.com/2008/10/02/across-the-pond-the-e-u-is-talking-about-a-rescue-package-for/#commentsFiled under: , ,

A problem that originated in the New World is re-exposing some long-standing nuanced opinions in the Old World.

France and Germany disagreed over how to prevent the global credit crunch from further hurting European banks. Germany, Europe's largest economy, does not want to set up a bailout / rescue fund that France is seeking. Luxembourg Prime Minister Jean-Claude Junker said the fund, which France argued should be as large as 300 billion euros or about $415 billion, isn't needed.

Economist Richard Felson said the United Kingdom also is against the idea, with Britain arguing that an ad hoc intervention policy would be sufficient for now. "A lot will depend on how the U.S. rescue package, provide it passes the U.S. House, performs in lowering overnight interest rates and restoring confidence," Felson said. "There's the sense in the U.K. that while the crisis extends beyond America's borders, the bulk of the bad-asset fallout will still be U.S.-based."

The U.S. Senate passed a revised rescue package, 74-25, Wednesday night and the U.S. House is expected to vote on the measure as soon as Friday.

However, the measure had little impact on overnight interest rates, at least initially. The London Interbank Overnight Rate, or LIBOR, rose for a fourth day, up 6 basis points to 4.21% Wednesday night, as banks continued to hoard cash.

Continue reading Across the pond, the E.U. is talking about a rescue package for Europe

Across the pond, the E.U. is talking about a rescue package for Europe originally appeared on BloggingStocks on Thu, 02 Oct 2008 10:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout planEUeuro zoneEuropean UnionFrancegdpGermanyinterest ratesInterestRatesinthenewsLIBORLuxembourgmortgage backed securitiesrescue plantradeU.S. CongressThu, 02 Oct 2008 10:50:00 EST<![CDATA[Will the market crash in October?]]>http://www.bloggingstocks.com/2008/09/29/will-the-market-crash-in-october/http://www.bloggingstocks.com/2008/09/29/will-the-market-crash-in-october/http://www.bloggingstocks.com/2008/09/29/will-the-market-crash-in-october/#commentsFiled under: , , ,

There is a bit of trepidation as I sit here at my screen, watching the S&P 500 drop more than 3%, reading about yet another bank "buyout," and especially after skimming through Congress's just-released 110 page $700 billion Emergency Economic Stabilization Act -- Wall Street bailout plan.

Apparently, no on likes it. The bright point of the plan is the two inch margins and the double spacing that make it readable.

As an economist, I am very concerned about the long term consequences of the plan, whether it will train the markets to expect government intervention. Also, the sheer cost is very high -- about $4,600 per working person -- unless, of course, the government is able to make money with it.

Is this just the fore shocks and tremors before the financial earthquake? With all these banks failing, things could get very messy. Is this market setting up for a crash?

Continue reading Will the market crash in October?

Will the market crash in October? originally appeared on BloggingStocks on Mon, 29 Sep 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout planBailoutPlanEmergency Economic Stabilization ActEmergencyEconomicStabilizationActfeaturedMarket crashMarketCrashWachovia bankWachoviaBankWBMon, 29 Sep 2008 12:30:00 EST<![CDATA[Should Congress start a 'U.S. Society Bank'?]]>http://www.bloggingstocks.com/2008/09/25/should-congress-start-a-u-s-society-bank/http://www.bloggingstocks.com/2008/09/25/should-congress-start-a-u-s-society-bank/http://www.bloggingstocks.com/2008/09/25/should-congress-start-a-u-s-society-bank/#commentsFiled under: ,

With the U.S. Treasury's $700 billion intervention bill -- commonly called the bailout bill -- nearing President Bush's desk for review and signature into law, a compelling question has risen in economic and taxpayer circles.

Given that the U.S taxpayer is funding the recovery, if not the bailout, of financial institutions and banks, are banks and financial institutions doing enough to show their gratitude to the people of the United States, the banking sector's lender -- and investor -- of last resort?

One standpoint argues they aren't, so says economist Richard Felson, and here's what Felson would like to see: In addition to equity stakes in each company that receives taxpayer assistance, the U.S Congress should require the company/bank to pay an annual fee to fund the administrative costs of a bank for low-income citizens and senior citizens.

Continue reading Should Congress start a 'U.S. Society Bank'?

Should Congress start a 'U.S. Society Bank'? originally appeared on BloggingStocks on Thu, 25 Sep 2008 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout billbailout planbanking sectorbanksbudget deficitCongressFDICfinancial crisisnational debtsenior citizenstaxestaxpayersU.S. CongressU.S. Society BankU.S. TreasuryThu, 25 Sep 2008 16:50:00 EST