As it is now apparent that the credit crisis has spread to the global economy and has not been contained in any way, the Bush Administration is considering an option included in the $700 billion dollar bailout package that would allow them to invest directly in banks — buying preferred stock in exchange for a “cash injection.” White House spokesperson Dana Perino said taking partial ownership of banks and other moves associated with the financial rescue plan would not be “part of [Bush’s] natural instincts,” according to the NYT, but acknowledged that the situation has gotten sufficiently dire as to warrant a change of heart.
money meltdown
5 Expenses To Cut Right Now If You're In Debt
By 10.9.08
Let’s say that like so many storied former-investment-banking-giants, you, the average consumer, have found yourself over-leveraged (wink, wink) and are looking to clean up your act before the whole thing falls down around you like the house of cards it is. Well, since you can’t increase revenue at will, you’ll have to decrease your costs. Where should you start? Here are 5 expenses that you can cut right now — so you can take the extra cash and throw it at your debt.
Beware Phishers Exploiting Banking Chaos
By 10.9.08
The various takeovers and mergers in the financial fallout give phishers a new opportunity to try to scam you into giving over your bank account warns the FTC. As most of you know, any unexpected email message that looks like it came from a financial institution, asking you to “update,” “validate,” or “confirm” your account information is invariably a scam. Unwitting victims are redirected to a login site that looks like it’s for their bank, but is really just a way to steal your account logins and/or personal information for use in further identity theft. Here’s the FTC’s tips for getting “hooked” by the “phishers” (gotta love it when the Feds pun)…
Backlash: Outrage Forces AIG To Cancel Second Pricey Hotel Party
By 10.9.08
AIG has decided to cancel a second pricey hotel party for their brokers after receiving another loan from the Federal Reserve for $37.8 billion dollars. AIG defended throwing a $400,000 week long bash for its top independent insurance agents and some AIG employees immediately after the bailout — claiming that these events were “standard industry practice” and that they must continue. They announced that they would go ahead with another event at the Half Moon Bay Ritz-Carlton in northern California. 50 AIG employees were expected to attend.
Get All Gawker Networks' Economic Crisis Coverage At Economy.Consumerist.Com
By 10.9.08
Gawker has launched Economy.Consumerist.com to make it easier for you to stay smarter than your cubicle mate by keeping track of the latest in the global money meltdown as reported across the entire Gawker Media Network…
Iceland Is Screwed
By 10.9.08
The Icelandic government seized the nation’s largest lender, Kaupthing Bank. “Effectively the krona can’t be traded at the moment because there are no more banks to clear the trade,” a foreign-exchange trader told Bloomberg. Things have gotten so bad there that Bjork was forced to take out a second mortgage on her collection of screaming children made of glass hiding under a field of sugar.
Planet Earth Cuts Interest Rates
By 10.9.08
Six central banks of the world did a coordinated interest rate cut to try to help the credit crisis. The group included the US and the European Central Bank. What does this mean for your wallet? It’s possible, at some point, that you’ll be able to get or renegotiate loans or mortgages to a better interest rate, and you’re like to see saving account rates drop, but given the apocalyptic economic climate, don’t count on it happening anytime soon.
Our National Debt Has Outgrown The 'National Debt Clock' In NYC
By 10.8.08
Now that we’ve hit double-digit trillions, the “National Debt” clock that’s been running constantly since 1989 in New York City’s midtown can no longer properly display the total. Brian Williams says they’ve had to temporarily adjust the display while they build a new one, slated to go up next year. We’re not sure anyone should be spending money on a fancy new hi-tech clock right now—maybe they should just hang a big chalk board, and hire an unemployed investment banker to write the new debt each day. See the video below.
American Express Judges You Based On Who Holds Your Mortgage, Where You Shop
By 10.8.08
Has your credit limit been inexplicably lowered lately? Well, it might not be anything personal. The problem might be with your mortgage lender. Or where you’ve been shopping. Or where you live. American Express, long rumored to judge customers based on this criteria, has admitted that it evaluates who you do business with and where you live when determining how much credit to give you, says MSNBC.
5 More Wall Street Dudes Who Deserve A Punch In The Face
By 10.7.08
WallStreetFighter has listed 5 more Wall Street dudes that deserve the old “Dick Fuld” right in the face. Guess which Wall Street loser is most punchable?
After The Bailout AIG Bought Themselves A $440,000 "Retreat" At A California Resort
By 10.7.08
Now that AIG has been nationalized, some folks are wondering just how their tax dollars are being spent. If you’re among them, we have some bad news for you from ABC. They are reporting that papers uncovered by congressional investigators show that “less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California.” Ouch.
By 10.7.08
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Bernanke speaks, the stock market falls. [CNBC]
Lehman Brothers CEO Got Punched In The Face
By 10.7.08
Dick “It Wasn’t My Fault” Fuld, the CEO of bankrupt investment bank Lehman Brothers, (seen here being heckled after testifying on Capitol Hill) was apparently punched in the face while working out in Lehman gym on the Sunday following the bankruptcy, according to CNBC’s Vicki Ward.
What Is Commercial Paper And Why Is The Federal Reserve Suddenly Buying It?
By 10.7.08
The Federal Reserve today announced the creation of something called the Commercial Paper Funding Facility (CPFF), that will buy commercial paper directly from issuers. So, you’re asking yourself, what is commercial paper? Why do I care that the Federal Reserve is buying it?
Financial Crisis Grips Earth
By 10.7.08
Just when you thought you were beginning to barely understand the financial cancer destroying America, it metastasized. Now it’s global.
The Economist Sums Up Financial Crisis: "Oh Fuck!"
By 10.6.08
If you feel at a loss for words to describe the now global financial cover, this spoof cover floating around the internet for September’s Economist says it all: “Oh fuck!” Download the large version, suitable for framing or desktop wallpaper, inside…
By 10.6.08
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After falling 800 points in a single trading session, the Dow pulled back to finish down just 369.88. [NYT]
"Funny" Economic-Meltdown-Themed Marketing Fails To Impress Consumers
By 10.6.08
The Wall Street Journal says that big discounts and hilarious bailout-themed marketing has failed impress consumers, and retailers are expecting sales to worsen before they get better. Restoration Hardware launched a “bailout” themed promotion offering $100 off purchases of $400 or more at the home furnishings chain, while Steve Madden posted signs depicting “a declining stock chart and implored shoppers to “Sell Stocks, Buy Shoes.”
