Floyd Norris at the New York Times is live blogging the global financial panic today, and has compiled a list of how the world’s markets have performed in October. Compared to some countries, our situation doesn’t seem that bad. Which is scary.
money meltdown
AIG Has Already Used Up 3/4 Of $123 Billion Bailiout
By 10.24.08
It’s only been a month, but AIG has already gone through 75% of its $123 billion government bailout. Those golf trips and sea-side hotels sure add up, don’t they? [Washington Post] (Photo: ChristophrHiestr)
Stocks Are Still Sad
By 10.24.08
Monday’s brief hope of a better week for stocks was exactly that as the market continued its downward spiral through Friday and international indexes suffered body blows. [WSJ]
The Great Depression Diaries
By 10.23.08
July 30, 1931. Magazines and newspapers are full of articles telling people to buy stocks, real estate etc. at present bargain prices. They say that times are sure to get better and that many big fortunes have been built this way. The trouble is that nobody has any money.
Greenspan Says That His Free-Market Ideology Was Flawed
By 10.23.08
Here’s something that probably doesn’t happen too often. Former Federal Reserve chairman Alan Greenspan had a crappier day than you did. He had to admit before our federal government that his free-market, anti-regulation ideology was “flawed.” Ouch.
Wall Street Hoped They'd Be "Wealthy And Retired" Before The House of Cards Fell
By 10.23.08
If you’re wondering why all these supposedly smart people bought bullsh*t securities made up of pools of overpriced mortgages given to broke people with crap credit — it’s time for you to meet the rating agencies. Rating agencies are the folks who decide the “quality” of investments. They’re the ones who decided that these securities deserved a AAA (read: awesome) rating. Did they know that they were passing junk off as gold? Um, yeah, according to reports from Bloomberg and the New York Times. It looks like they sorta did.
By 10.22.08
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The Wall Street Journal says that the troubled California real estate market may be healing, but not without considerable pain. [WSJ]
By 10.22.08
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Wachovia announced their $23.7 billion third quarter loss with an all-too-easy-to-mock pre-taped conference call. “Let’s just close our eyes and imagine what the combination of Wells Fargo and Wachovia will create,” said CEO Bob Steel. We suppose that does make it easier not to rudely stare at the number “23,700,000,000.” [WSJ Deal Journal]
Artists To Stage Literal Meltdown Of American Economy
By 10.21.08
On October 29, the economy will melt down. Not the general economy per se, but a 5 foot tall, 15 feet wide, 1,500 pound ice sculpture of the word “ECONOMY” in Manhattan’s Foley Square, relatively near to Wall Street. Artists Ligorano/Reese say, “this sculpture metaphorically captures the results of unregulated markets on the U.S. economy.” October 29 also happens to be the 79th anniversary of Black Tuesday.
AIG Was Spending Taxpayer Money Lobbying Against Mortgage Regulation
By 10.21.08
AIG apparently spends a pretty significant chunk of cash lobbying politicians, says the WSJ, a practice they’re being forced to abandon as they come under more scrutiny from lawmakers.
Bank of America CEO Explains How He Beat Wall Street
By 10.21.08
Is the new financial capital of our country located in Charlotte, NC? 60 Minutes traveled down south to talk to CEO Ken Lewis about his bank, its recent purchase of Merrill Lynch, whether or not the bank bailout is “socialism” and the economic crisis in general.
By 10.21.08
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More countries on the global money trouble list: Hungary, Serbia, Baltic states, Kazakhstan, Indonesia, South Korea, Argentina Russia, Brazil, Ukraine, Poland. [Slate]
"Whatever You Like" Parody: Coupon Clipping Is The New Largesse
By 10.21.08
Have you seen T.I.’s redonkulous “Whatever You Like” music video, where a burger girl gets picked up and gets drenched by the rapper in expensive alcohol, jewels, fancy cars and an evening of disgusting extravagance? If you haven’t, it’s basically TI singing “I will give you any number of expensive things so you will have sex with me,” on top off a rejected melody from a My Little Pony episode cut with the tinny reggatonic hiccups that pass for beats. Now, perhaps marking the first time I’ve found “Weird Al” Yankovic worth more than a “heh,” the musical parodist has released his own version of “Whatever You Like.” In it, he croons his lovergirl with tales of how they’ll spend time together clipping coupons and rolling up at Costco. As a gesture of his munificence, she can even have a large fry when they go to McDonald’s. Both songs in convenient YouTube format for easy comparison and contrast, inside.
Fed Chairman Discusses Passing Another Stimulus Package
By 10.20.08
Fed Chairman Ben Bernanke suggested today, while testifying before the House Budget Committee, that Congress should consider passing some sort of economic stimulus package that would improve access to credit by homebuyers and other borrowers.
10 Things That Are Going Right For Consumers
By 10.17.08
Kiplinger’s is more optimistic than we are, so they had the cheerful idea to put together a list of 10 things that are going right for consumers — despite the financial apocalypse. Hooray!
AIG Says It Will Try Harder To Cut Costs, Begins By Canceling $10 Million Severance Package
By 10.17.08
AIG has been repeatedly called on the carpet over the past week or so for indefensible “business as usual” expenditures—a lavish corporate retreat, an executive hunting trip, and severance packages costing tens of millions of dollars. Now, after a meeting with NY Attorney General Andrew Cuomo, they’ve announced they’ll start trying harder to monitor and stomp out unnecessary expenses.
Hold On To Your Hats And Sunglasses, Here Comes The Credit Card Meltdown
By 10.16.08
We hope you’re enjoying our current economic roller coaster because it’s likely to continue — According to a new report from research firm Innovest Strategic Value Advisors, titled “Credit Cards at the Tipping Point,” the fun has only just begun. As the credit crunch begins to affect consumers, they’re going to have more difficulty paying their credit card bills. The report suggests that credit card companies’ misleading practices and cavalier extension of credit may come back to bite them. Who should be worried? Capital One.
The Best Cities To Live In During A Recession
By 10.15.08
BusinessWeek asks, assuming that we keep sliding down into an official recession, where are the best places to live? They’ve pulled data from PolicyMap.com and the U.S. Census to make some educated guesses about local economies that will be least damaged by a large-scale downturn. They reason that no matter how the national economy fares, there will always be government jobs and a need for health care; higher education institutes provide a cushion for local economies, too.
