Archive for September, 2008

Economists Look to Rate Cuts, Second Financial Rescue Package for Hope

Tuesday, September 30th, 2008

After failing to pass a bill geared at kick starting the financial system in the United States on Monday, market participants are looking for help from central bankers in the form of rate cuts and a return of the failed bill as early as Thursday. Read More Now

Current Events Could make the World a Better Place

Tuesday, September 30th, 2008

The New York Times' Julie Creswell and Ben White said it is "The end of an era." They describe yesterday's Wall Street as "a world of big egos...where people love to roll the dice with borrowed money...in search of ever- higher returns," and what those returns can buy. A ...

Case-Shiller Home Price Index Continues to Decline in July

Tuesday, September 30th, 2008

The S&P Case-Shiller home price index fell more than expected in the July as the 20-city composite index posted an annual decline of 16.3%, extending the prior month's 15.9% decline. The Case-Shiller index has fallen every month since peaking in July 2006, but economists say the rate of decline may ...

Overnight USD LIBOR Makes Biggest Jump on Record

Tuesday, September 30th, 2008

In the largest rise on record, the British Bankers Association reported that the overnight U.S. dollar inter-bank lending rate (LIBOR) jumped 431 basis points to 6.88%. Read More Now

Fed Funds Futures Price in 50Bp Cut

Tuesday, September 30th, 2008

As the U.S. Congress voted to reject the bailout legislation, Fed Funds Futures are pricing in a 66% chance of a 50bp rate cut and 34% of a 75bp cut for the next Federal Reserve meeting scheduled for Oct. 29. Read More Now

Tuesday’s Events: Canadian GDP; U.S. Consumer Confidence, ISM Chicago PMI

Tuesday, September 30th, 2008

Economic data realeased today will include the S&P/Case Shiller house price index, consumer confidence, and the Chicago purchasing managers index. But in the aftermath of the House of Representatives rejecting the financial rescue package, all eyes and ears will be on global central bankers and policy-makers. Read More ...

Fed’s Hoenig Says U.S. Will Emerge From Crisis With a Stronger Economy

Tuesday, September 30th, 2008

The Federal Reserve's Thomas Hoenig said he will be more anxious than others to raise rates when feasible. The Bank of Kansas City President was speaking at a bank-sponsored forum in Nebraska. Hoenig said inflation in the U.S. at 5.5% is too high, and will have a long-run impact on the ...

House Rejects Emergency Economic Stabilization Act

Monday, September 29th, 2008

After several days of deliberation, a majority of U.S. House representatives voted to reject the Emergency Economic Stabilization Act of 2008 in a final vote of 228 to 205. Read More Now

U.S. Attorney’s Office Investigating Accounting, Disclosure at Fannie and Freddie

Monday, September 29th, 2008

Freddie Mac and Fannie Mae continue to be a source of scrutiny after it was announced that the Government Sponsored Enterprises have been subpoenaed by New York Attorney's Office. Read More Now

Bernanke Says Proposed Bill to Restore Flow of Credit

Monday, September 29th, 2008

In a statement released Monday morning, Federal Reserve Chairman Ben Bernanke said he welcomes the rescue package bill agreed to by U.S. lawmakers and that it should help stabilize the financial system. "This legislation should help to restore the flow of credit to households and businesses that is essential for ...