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Slideshow: 13 Biggest Federal Reserve/Treasury Moves in 2008-2009.
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2008 - early 2009 was an unprecedented period for the United States economy. Take a look back at some of the key steps that the Fed and the Treasury took over this time period, most of which were unthinkable before the crisis began.
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View the Slideshow!
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| If you want to know what was dominating the markets today, read on: |
Dow Reaches 8-Month High
Better-than-expected earnings continued to fire up stocks on Thursday. The Dow Jones Industrial Average crept up over the 9,000 mark for the first time since January. The DJIA added 188 points to finish at 9,069.29. Way to go Dow! Is the Dow really on its way to the 15,000 mark? The markets are truly reaping the benefits of low earnings expectations. Upbeat earnings don't last forever especially when accompanies by sluggish topline growth, so hopefully something else will come along to drive the market or a significant pullback may be around the corner. Microsoft and Amex disappointed after hours.
How is the Economy Performing?
The housing market may be heading in the right direction. Well...at least according to recent reports. Let's dive a little deeper and see what reports are making headlines today.
Home resales in the U.S. rose in June for a third consecutive month. The National Association of Realtors said purchases climbed 3.6 percent to an annual rate of 4.89 million and beat forecasts. This is not all that impressive given the amount of tax incentives, lower interest rates, and foreclosures that are making it possible for consumers to purchase homes (white picket fence included). Reports at the state level are painting a much more dismal picture. And some believe a housing recovery will look like a frying pan!
The FTC has finally wised up and started cracking down on the massive amount of companies swindling money from consumers with false promises to prevent foreclosures. You've seen the commercial. Something along the lines of "Call us now and we will fight to keep you in your home with little or no cost." These companies are taking thousands of dollars from consumers while doing nothing to actually prevent foreclosures.
Video - Empty Promises: Mortgage Bank Scams
A Jobless Recovery is the Last Thing We Need
Still looking for a job? Recently given a pink slip? According to the Labor Department a higher percentage of Americans can now answer yes to these questions. The number of Americans filing for initial unemployment insurance rose last week. There were 554,000 initial jobless claims filed in the week. Analysts were expecting a bigger jump, so most investors took the news as a good sign.
Everyone is so busy cheering recent impressive earnings and other bright spots in the economy that unemployment numbers end up on the back burner. Unfortunately, a turnaround in the job market will be an uphill battle. We just hope that this lady is wrong.
Video - Can we have economic growth without job growth?
The duration of unemployment insurance varies by state. How many weeks can an individual receive unemployment benefits in a given state?
State Budgets are Feeling the Heat
It's getting hot in the kitchen in a lot of states as they try to cook up plans to prevent huge budget shortfalls. Only three weeks into the fiscal year and states are already struggling. Will more states end up facing the same issues California is? Here is a radical idea - when the wealthy got to jail, make them foot the bill.
Automakers Return to the Forefront
Even the world's largest automaker is facing its own problems as the downturn in auto sales continues. Toyota Motor Corp. TM announced that is has decided to shut down a California auto-assembly plant that it operated with General Motors.
Volkswagen apparently stopped its bickering with Porsche and approved a merger between the two carmakers (listen closely for all the cheers). The whole situation was getting pretty ridiculous. How soon do we forget the drama that surrounded this deal? Now that the CEO of Porsche has left the building, things are finally moving forward. Family drama and feuds are better suited for page six of the New York Post and not merger deals, ok, maybe Sumner Redstone will disagree.
Ford Motor Co. F returned to profitability during the second quarter and posted a $2.3B Profit. Good job Ford! Remember this is one of the automakers that didn't take Uncle Sam's dollars. Why Alan Mullay can't take a vacation just yet.
Other Juicy Tidbits
Ok, hopefully you caught President Obama's press conference regarding health care reform last night. If not, check out what the President had to say. Overall, the President received mixed reviews regarding and some of his comments fell on deaf ears. With so many numbers being thrown out regarding the proposed form, let's look at the problems with health care reform in terms of numbers . Those numbers may be scary to some, but the President is still finding plenty of support for his proposal. Of course, Karl Rove is not impressed.
Goldman Sachs GS has become the MVP of bailout recipients. First, the company paid back TARP funds in record time. Then the company reported second quarter results that exceeded expectations. And now the denizens of 85 Broad are pleased to announce that they bought back their TARP warrants for $1.1 billion. Here is a pat on the back . Now if they would just stop using cheap government money from the discount window to finance those vaunted trading operations then maybe the Prez will finally get off their back .
You don't cut the Oracle of Omaha's credit rating and remain in his good graces .
This is what you would sound like if you just sold your company for $847 million.
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| Featured Article from the InvestorGuide University |
Introduction to the Economy
Learn how the economy can be influenced by the US government through fiscal and monetary policy. Understand the importance of a global economy and why individuals should make a portion of their investments overseas.
Read the Full Article |
Browse the InvestorGuide University
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