The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was defeated in the House of Representatives. The lawmakers won't have a lot of room to negotiate. The Senate won't hold any roll-call votes today because several lawmakers will be celebrating Rosh Hashanah, the Jewish New Year. Senators say they have no choice but to revive the measure, which is designed to restore confidence in the nation's banking system.
President Bush said the economic… Continue
Added by Jack Lott on September 30, 2008 at 10:30am —
The House defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nose dive into recession without it.
Several Republican aides said House Speaker Nancy Pelosi, torpedoed any spirit of bipartisanship that surrounded the bill with a scathing speech near the close of the debate that blamed Bush's policies for the economic turmoil.
Citigroup (C)… Continue
Added by Jack Lott on September 29, 2008 at 9:30am —
President Bush tried to reassure the markets that Congress, despite a breakdown in negotiations, would pass a $700 billion financial rescue plan. President Bush wants Congress to complete a bipartisan agreement on a mortgage rescue plan before Wall Street opens on Monday.
The Commerce Department said Gross Domestic Product, the measure of total goods and services output within U.S. borders, expanded at a 2.8 percent rate in the April-June second quarter rather than the 3.3 percent… Continue
Added by Jack Lott on September 26, 2008 at 10:30am —
Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented $700 billion financial rescue plan, agreeing to include widely supported limits on pay packages for executives whose companies benefit. A bipartisan meeting is set to begin drafting a compromise, which top Democrats said they hoped could pass within days.
Federal Reserve Chairman Bernanke moved closer to cutting interest rates, signaling that risks to U.S. growth are… Continue
Added by Jack Lott on September 25, 2008 at 10:30am —
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATA
In the week ending Sept. 20, the advance figure for seasonally adjusted initial claims was 493,000, an increase of 32,000 from the previous week's revised figure of 461,000. It is estimated that the effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 50,000 claims to the total. The 4-week moving average was 462,500, an increase of 16,000 from the previous… Continue
Added by Adam Horak on September 25, 2008 at 9:52am —
The National Association of Realtors reported that resales of U.S. single-family homes and condos fell 2.2% in August to a seasonally adjusted annual rate of 4.91 million. Economists expected sales to hit 4.93 million. Resales have fallen 10.7% in the past year. The inventory of unsold homes on the market fell 7% to 4.26 million, a 10.4 month supply at the current sales pace.
Federal Reserve Chairman Bernanke said the U.S. is facing ``grave threats'' to financial stability and warned… Continue
Added by Jack Lott on September 24, 2008 at 11:04am —
President Bush has reassured foreign leaders that the plan to rescue U.S. financial institutions will pass Congress. Speaking to reporters in New York, where he is attending meetings of the United Nations, Bush said the debate in Congress on the package is part of the normal give-and-take. He said, "I am confident....that there will be a bipartisan bill.”
Federal Reserve Chairman Ben Bernanke said that Congress must act swiftly to approve Treasury Secretary Henry Paulson's plan to… Continue
Added by Jack Lott on September 23, 2008 at 10:44am —
The Bush administration insisted that Congress must move quickly to approve what one lawmaker called the "mother of all bailouts" -- a $700 billion proposal to buy a mountain of bad mortgage debt in an effort to unfreeze the nation's credit markets.
The G7 group of finance ministers and central bank governors of the wealthiest industrial countries held a teleconference and agreed to take "whatever actions may be necessary" to ensure the stability of the international financial… Continue
Added by Jack Lott on September 22, 2008 at 10:12am —
President Bush said a broad-ranging U.S. plan to fight the crisis will get the financial system moving again. But in a statement from the White House, he said that plan will put "significant" amounts of taxpayer dollars on the line. The President said Democrats and Republicans must come together to approve the plan.
The Federal Reserve took two steps to boost market liquidity. The Fed will extend loans to banks to finance their purchases of asset-backed commercial paper from money… Continue
Added by Jack Lott on September 19, 2008 at 11:00am —
The world's major central banks banded together to inject as much as $180 billion into money markets in a bid to stave off the growing global financial crisis. The Federal Reserve joined with the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank to pump more short-term dollar liquidity into the financial system.
The Federal Reserve added another $50 billion in overnight loans to help liquefy money markets, matching the amount offered twice… Continue
Added by Jack Lott on September 18, 2008 at 10:47am —
The government has stepped in to rescue American International Group Inc. (AIG) with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world's largest insurers and the right to remove senior management.
Barclays PLC (BCS), the third-largest British bank, took advantage of Lehman Brothers Holdings Inc.'s (LEH) bankruptcy reorganization to reach a deal for Lehman's North American investment banking and trading… Continue
Added by Jack Lott on September 17, 2008 at 11:25am —
For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent.
Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few… Continue
Added by Adam Horak on September 16, 2008 at 2:30pm —
The Federal Open Market Committee held its benchmark Fed funds rate at 2.0 percent. Analysts were divided about what the Fed would do after a stunning shakeup over the weekend with Lehman Brothers declared bankruptcy and Merrill Lynch moved to sell itself to Bank of America. Some said a rate cut was absolutely necessary, while others argued just as strongly that the Fed should hold steady. The vote was unanimous.
The Federal Reserve pumped another $70 billion into the nation's… Continue
Added by Jack Lott on September 16, 2008 at 11:30am —
CONSUMER PRICE INDEX: AUGUST 2008
The Consumer Price Index for All Urban Consumers (CPI-U) decreased
0.4 percent in August, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The August
level of 219.086 (1982-84=100) was 5.4 percent higher than in August 2007.
The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) decreased 0.5 percent in August, prior to seasonal… Continue
Added by Adam Horak on September 16, 2008 at 9:14am —
Lehman Brothers (LEH), burdened by $60 billion in soured real-estate holdings, filed a Chapter 11 bankruptcy petition in U.S. Bankruptcy Court after attempts to rescue the 158-year-old firm failed. Meanwhile, Bank of America Corp. (BAC) said it is snapping up Merrill Lynch & Co. Inc. (MER) in a $50 billion all-stock transaction.
The Federal Reserve, acting as Lehman Brothers was heading toward a bankruptcy filing, expanded its loan programs and said it would accept a broader… Continue
Added by Jack Lott on September 15, 2008 at 9:30am —
The Labor Department reported that U.S. producer prices fell a steeper than expected 0.9% in August, helped by lower energy costs. The decline follows on the heels of a sharp 1.2% gain in July. Excluding food and energy, "core" producer prices rose 0.2% last month. Analysts were predicting a decrease of 0.4% in overall PPI and a 0.2% increase in the core rate. Producer prices are up 9.6% over the past 12 months.
Total sales at U.S. retailers in August fell for a second month in a row… Continue
Added by Jack Lott on September 12, 2008 at 10:47am —
The Labor Department reported that applications for jobless benefits dropped to a seasonally adjusted 445,000, down by 6,000 from the prior week. That is above analysts' expectations of 440,000. The four-week moving average, which smoothes out week-to-week fluctuations, rose slightly to 440,000.
The Commerce Department reported that the trade deficit rose by 5.7 percent to $62.2 billion in July, much worse than the $58 billion deficit that Wall Street expected. It pushed the gap… Continue
Added by Jack Lott on September 11, 2008 at 10:10am —
The Mortgage Bankers Association said the lowest 30-year mortgage rates since late May boosted demand for mortgage applications last week, particularly by homeowners looking to refinance existing loans. Average 30-year loan rates sank 0.33 percentage point to 6.06 percent, spurring a more than 15 percent jump in refinance applications.
Oil prices edged just slightly higher after OPEC vowed to abide by its quotas but decided not to take the more dramatic step of slashing production… Continue
Added by Jack Lott on September 10, 2008 at 11:00am —
The Commerce Department reported that inventories at U.S. wholesalers rose 1.4 percent in July, twice what analysts had forecast, while sales were down 0.3 percent. Analysts expected inventories to rise 0.7 percent, compared with a 0.9 percent gain in June, previously reported as 1.1 percent.
The Congressional Budget Office estimates that with the economy weakening and spending on the war rising, the federal government's budget deficit is expected to more than double this year… Continue
Added by Jack Lott on September 9, 2008 at 10:16am —
The Labor Department said 84,000 jobs were lost in August, significantly higher than the 75,000 that economists forecast. In addition, July's job losses were revised up to 60,000 and June's to 100,000 from a previously reported 51,000 in each month. The U.S. unemployment rate unexpectedly shot up to 6.1 percent in August, its highest in nearly five years and the average hours of work remained unchanged from July at 33.7.
A Mortgage Bankers Association survey said foreclosures… Continue
Added by Jack Lott on September 5, 2008 at 11:05am —