Archive: October 12, 2008 - October 18, 2008
Bush to Talk Econ With Euros at Camp David
The White House said today that President Bush will meet at Camp David on Saturday with French President Nicolas Sarkozy and EU Commission President Jose Manuel Barroso. The two foreign leaders are already scheduled to be in Canada for meetings later in the week, prompting Bush's invitation for dinner, according...
October 14, 2008; 3:14 PM ET | Comments (0)
McCain's Economic Plan
BLUE BELL, Pa. -- Sen. John McCain (R-Ariz.) today proposed $52 billion worth of tax breaks aimed at reducing the impact of stock market losses on the nation's seniors, providing relief to the unemployed and encouraging savings. Under his plan, unveiled as he campaigned in a suburb of Philadelphia, seniors...
October 14, 2008; 3:05 PM ET | Comments (1)
Reid Calls for More Stimulus
In a statement released moments ago by Senate Majority Leader Harry Reid (D-Nev.), he echoed calls by House Speaker Nancy Pelosi (D-Calif.) for an economic stimulus plan aimed at Main Street, now that the Wall Street bailout/rescue plan apparently is underway. "Congress will review the details of the Administration's new...
October 14, 2008; 2:09 PM ET | Comments (3)
Bipartisan Hill Kudos for Nationalization
Congressional leaders offered bipartisan praise for today's actions, saying that Treasury Secretary Hank Paulson was taking steps that he initially resisted but were pushed early by House and Senate negotiators. House Speaker Nancy Pelosi (D-Calif.) called the joint announcements "steps in the right direction that could help restore confidence" in...
October 14, 2008; 1:01 PM ET | Comments (1)
Plan Calls for Stricter Executive Pay Limits
Banks participating in the federal rescue program announced today must abide by stricter restrictions on executive pay than Treasury officials first indicated were required under the legislation. The new restrictions include some of the toughest requirements spelled out by Congress. The plan's new rules require that participating banks take back...
October 14, 2008; 12:34 PM ET | Comments (1)
Crisis Hits Real Economy: Pepsi Flat
PepsiCo. which, like Coca-Cola, has long been considered a "safety stock" -- in good times or bad, folks drink soda -- said this morning that people actually aren't drinking soda. Result: The company will cut 3,300 jobs in the United States. The company's stock is being hammered thanks to a...
October 14, 2008; 12:03 PM ET | Comments (1)
The Return of Gordon Gekko?
Oh, this is good: Variety reports this morning that 20th Century Fox is fast-tracking a sequel to "Wall Street," Oliver Stone's 1987 film that introduced super-trader Gordon Gekko and his signature line -- "greed is good" -- into the culture. The sequel's plot so far: Gekko is finally released from...
October 14, 2008; 11:10 AM ET | Comments (6)
Is the Rally Over Already?
As if on cue, the Dow turned negative for the first time this week just as FDIC Chairman Sheila Bair, appearing CNBC moments ago, said that "the markets are responding" well to Treasury's nationalization plan for U.S. banks that was announced this morning. There have been worries all day yesterday...
October 14, 2008; 11:02 AM ET | Comments (1)
Hill Reaction Rolling In to Bank Nationalization
Lawmakers are beginning to release statements on Treasury's plan, reported in The Post this morning, to partially nationalize major U.S. banks in an effort to stabilize the economy. We are looking forward to statements from the most conservative Republicans and Democrats on the partial government takeover of banks. "The actions...
October 14, 2008; 11:00 AM ET | Comments (3)
Dow Shoots Out of Gates Again
The Dow shot above 300 points in the first few moments of trading today and, as of about 10 a.m., is up about 180 points, or more than 2 percent. The S&P 500 is up nearly 2 percent. The tech-heavy Nasdaq is the laggard in today's early rally, fluctuating above...
October 14, 2008; 10:02 AM ET | Comments (3)
The Day the U.S. Economy Changed
Make no mistake: today's announcement that the U.S. Treasury will invest $250 billion of taxpayer money in private American banks marks a pivot point in how the U.S. economy thinks of itself. Nothing this radical in government-sponsored financial engineering has occurred on such a widespread, systematic scope since FDR's alphabet-soup...
October 14, 2008; 9:28 AM ET | Comments (8)
Morning Briefing
Will the rally continue today? By the looks of the overseas markets, that might just be the case. Yesterday's move by the federal government to take direct equity stakes in the nation's largest banks seems to have bolstered confidence overseas. Markets are soaring in Europe and Asia. In Japan, where...
October 14, 2008; 7:12 AM ET | Comments (6)
Readers: It's Not a Turnaround Yet
Earlier today, we asked our readers: "Do you think the turnaround has begun?' So far, 61 readers have replied. The overwhelming majority answered -- either verbosely or succinctly -- "no." There was some cautious optimism sprinkled in among the comments, which you can see here. But by and large, most...
October 13, 2008; 6:33 PM ET | Comments (16)
Today's Surging Stocks
Today's rally -- with 15 minutes left in the trading day, the Dow, the Nasdaq and the S&P 500 all are up 9 percent -- is generally across the board, sector-wise. Advancers on the New York Stock Exchange outpaced decliners by about 2,900 to 250. Three of the five most...
October 13, 2008; 3:54 PM ET | Comments (3)
Obama: Here's My Economic Plan
Determined to keep the campaign spotlight on the economy, Sen. Barack Obama (D-Ill.) has added $60 billion in new tax breaks and other benefits to his economic stimulus plan and will urge Congress to act quickly after the election to provide middle-class relief, The Post's Shailagh Murray and Paul Kane...
October 13, 2008; 3:02 PM ET | Comments (3)
Treasury Pays Firm $2.5 Million to Consult on Bailout
One thing has been clear all along about the $700 billion Wall Street rescue-bailout: Someone would make money on it. That started today. Treasury just issued a statement saying it has hired Chicago investment consulting firm Ennis Knupp and Associates to advise on the implementation of the bailout/rescue plan. The...
October 13, 2008; 2:50 PM ET | Comments (17)
Pelosi: U.S. in 'Survival Mode'
In remarks just concluded, House Speaker Nancy Pelosi (D-Calif.) touted the need for a relief package to aid taxpayers, as opposed to the $700 billion bailout/rescue plan aimed at Wall Street. "We're in a time when we need to tighten our belts," Pelosi said. "We need to take ourselves into...
October 13, 2008; 1:01 PM ET | Comments (10)
U.S. Regulators Prepare to Move Beyond $700 Billion Bailout
U.S. regulators are preparing to expand their response to the financial crisis beyond the $700 billion bailout package that was approved by Congress and signed into law earlier this month, sources familiar with the matter said today. An additional plan is set to be announced soon, most likely tomorrow morning,...
October 13, 2008; 12:43 PM ET | Comments (13)
Do You Think the Turnaround Has Begun?
The Dow is up 500 points, or 6 percent, and the S&P 500 and Nasdaq are both also up more than 6 percent in lunchtime trading. There's a feeling among some that the markets are starting to feel more confident that the global governments -- because that's who it's up...
October 13, 2008; 12:20 PM ET | Comments (68)
Sovereign in Talks With Spanish Bank
Sovereign Bank, a regional lender based outside Philadelphia that is struggling to survive mortgage-related losses, is discussing selling itself to Spanish banking giant Banco Santander, both sides confirmed this morning. The talks are in an "advanced" stage, Sovereign said. The terms remain unclear, but Santander is unlikely to pay a...
October 13, 2008; 11:47 AM ET | Comments (1)
Paulson To Speak With Top U.S. Bankers
Treasury Secretary Hank Paulson will meet with the heads of the top U.S. banks in Washington and by phone today at 3 p.m., as a plan moves forward for the federal government to invest directly in banks, nationalizing them to a degree in an attempt to stabilize them. Also, Italian...
October 13, 2008; 11:43 AM ET | Comments (2)
Bush: 'Tough Times for Our Economies'
In a joint statement just concluded with visiting Italian prime minister Silvio Berlusconi in the White House Rose Garden, President Bush said that these are "tough times for our economies, yet we can be confident we can work our way though these challenges." Italy has been a U.S. ally in...
October 13, 2008; 11:24 AM ET | Comments (1)
Bush to Speak Shortly: Watch Market Response
President Bush is scheduled to address the press in a few moments (at 10:55 a.m.) with Italian Premier Silvio Berlusconi. Presumably, Bush will make some remarks on the economy and the bailout package being readied. As a bit of spectator sport, take a look at what the markets do as...
October 13, 2008; 10:47 AM ET | Comments (1)
Stocks Rally at Opening
Like bulls behind a gate snorting to escape, stocks roared out at the opening bell moments ago. In the first few minutes of trading, the Dow is trading up 400 points, or more than 4 percent, and rising. The S&P 500 and Nasdaq also are trading up more than 4...
October 13, 2008; 9:39 AM ET | Comments (2)
Stock Rally in the Offing?
The bond markets take the Columbus Day holiday today, but the stock markets do not. Will this be the day the markets push off the bottom of the pool and try to get above water? There are good signs. As The Post's Zach Goldfarb reported earlier, the Asian markets have...
October 13, 2008; 9:24 AM ET | Comments (1)
Treasury Lays Out Plan to Improve Financial Stability
The head of the government's $700 billion financial rescue plan said that officials are assembling a "tool kit" of methods to implement the program, including investing money directly into banks and buying individual mortgages from them. Staff writer Peter Whoriskey reports on the 8 a.m. speech by Neel Kashkari, interim...
October 13, 2008; 8:40 AM ET | Comments (1)
Morning Briefing
Welcome to the Week After. U.S. stock markets fell their most ever last week while officials around the world grasped for solutions to stem a financial panic. It looks like there may be a respite today, though with the kind of volatility we saw last week, we never know. Asian...
October 13, 2008; 7:36 AM ET | Comments (0)
