October 2008 Blog Posts (32)

JDfn Daily Digest - October 13, 2008

The U.S. Treasury plans to buy equity in "healthy" financial institutions as part of a multibillion-dollar program designed to kick-start the flow of credit for consumers. Speaking to a group of international bankers, Interim Assistant Secretary for Financial Stability Neel Kashkari said the U.S. is working "around the clock" on the program and detailed the steps Treasury is taking to put it in place.

The Bush administration said it is moving quickly to implement a $700 billion… Continue

Added by Jack Lott on October 13, 2008 at 11:19am — No Comments

JDfn Daily Digest - October 10, 2008

President Bush said the government's financial rescue plan was aggressive enough and big enough to work, but would take time to fully kick in. Bush spoke as leaders of the world's leading economies gathered in Washington amid frozen credit markets, panic selling in stock markets and a looming global recession. The president noted that major Western economies were working together in an attempt to stabilize markets and end the spreading panic.

U.S. authorities are now considering… Continue

Added by Jack Lott on October 10, 2008 at 11:00am — No Comments

JDfn Daily Digest - October 9, 2008

Initial claims for jobless benefits dropped 20,000 to a seasonally adjusted 478,000, in line with Wall Street economists. The department said Hurricanes Ike and Gustav were responsible for adding about 20,000 claims on a seasonally adjusted basis. That's down from approximately 45,000 the previous week.

Inventories at U.S. wholesalers rose 0.8 percent in August, higher than what analysts had expected, while sales suffered their largest drop in more than a year and a half. Wall Street… Continue

Added by Jack Lott on October 9, 2008 at 11:39am — No Comments

weekly unemployment report

In the week ending Oct. 4, the advance figure for seasonally adjusted initial claims was 478,000, a decrease of 20,000 from the previous week's revised figure of 498,000. It is estimated that the effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 17,000 claims to the total. The 4-week moving average was 482,500, an increase of 8,250 from the previous week's revised average of 474,250.

The advance seasonally adjusted insured… Continue

Added by Adam Horak on October 9, 2008 at 8:51am — No Comments

Cordinated rate cut.

Federal Reserve, European Central Bank, Bank of England, Bank of Canada, Swiss National Bank and Sweden's Riksbank join forces today in a historical, emergency, coordinated global rate cuts by 50bps ease save the world's economies from the worst crisis since the Great Depression. Fed, ECB, BoE, BoC and Riksbank will cut by 50bps. SNB cut by 25bps. PBoC of China also joins to cut by 27bps. BoJ didn't participate but said it supports the move.

The resulting interest rates… Continue

Added by Adam Horak on October 8, 2008 at 2:19pm — No Comments

JDfn Daily Digest - October 8, 2008

Treasury Secretary Henry Paulson said patience is needed because the ongoing financial market turmoil will not end quickly despite Congress approving a $700 billion bank rescue package. At the start of a press conference, Paulson said that the bailout plan and coordinated central bank interest rates could not end the crisis overnight. More banks are likely to fail in coming months and he stressed that Treasury now has the power to inject capital into banks, a step advocated by many… Continue

Added by Jack Lott on October 8, 2008 at 10:00am — No Comments

JDfn Daily Digest - October 6, 2008

In The News

The Federal Reserve says it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks, fresh steps to help ease a painful credit crisis. Congress in the $700 billion bailout bill President Bush signed on Friday gave the Fed the power to pay interest on those reserves for the first time. The law accelerated the effective date to Oct. 1st of this year versus 2011.

Bank of America Corp. (BAC) and a number of U.S.… Continue

Added by Jack Lott on October 6, 2008 at 10:55am — No Comments

NON Farm Sept 08

THE EMPLOYMENT SITUATION: SEPTEMBER 2008

Nonfarm payroll employment declined by 159,000 in September, and

the unemployment rate held at 6.1 percent, the Bureau of Labor Sta-

tistics of the U.S. Department of Labor reported today. Employment

continued to fall in construction, manufacturing, and retail trade,

while mining and health care

continued to add jobs.

Unemployment (Household Survey Data)

The unemployment rate (6.1 percent) was… Continue

Added by Adam Horak on October 3, 2008 at 10:56am — No Comments

JDfn Daily Digest - October 3, 2008

The House of Representatives voted to approve a revised $700 billion bailout plan for the financial markets. The House's vote follows the Senate's approval and clears the way for President Bush's signature. Passage came over the objections of some members who balked at tax provisions in the bill and giving the Treasury secretary extraordinary power to buy bad assets. The bill now goes to the President for signature.

Employers made deeper cuts in their payrolls in September as the… Continue

Added by Jack Lott on October 3, 2008 at 10:00am — No Comments

JDfn Daily Digest - October 2, 2008

House members are getting another chance to vote on a financial rescue bill that has infuriated millions of voters after the Senate added tax cuts and other sweeteners and passed it handily. Senators passed the much-criticized measure in a 74-25 vote, sending it to the other side of the Capitol for a showdown vote expected tomorrow.

The SEC has extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least… Continue

Added by Jack Lott on October 2, 2008 at 10:39am — No Comments

JDfn Daily Digest - October, 1, 2008

House leaders believe progress is being made toward getting the $700 billion financial industry rescue bill through Congress, thanks partly to a provision increasing insurance for people's deposits. The plan was set for a Senate vote tonight after leaders agreed to add tax breaks for businesses and the middle class and increase deposit insurance in an attempt to revive the legislation rejected by the House. The vote is slated to take place at 7:30 p.m. (Eastern Time). Senators John McCain,… Continue

Added by Jack Lott on October 1, 2008 at 10:30am — No Comments

Oct ADP Report

Wednesday, October 1, 2008, 8:15 A.M. ET

Nonfarm private employment decreased 8,000 from August to September 2008 on a seasonally

adjusted basis, according to the ADP National Employment Report®. The estimated change in

employment from July to August was revised down from a decrease of 33,000 to a decrease of

37,000.

September’s ADP National Employment Report continues to offer evidence of a weak labor

market. Note that this month, the ADP Report does not reflect… Continue

Added by Adam Horak on October 1, 2008 at 8:43am — No Comments