Author Topic: Dow Destruction - List all news and videos here on the market collapse  (Read 2531 times)

0 Members and 1 Guest are viewing this topic.

Rock

  • Guest
Please list all news here as regards the end of our economy and the destruction of the dollar by the fed.


1st:  http://money.cnn.com/2008/07/15/news/economy/senate_banking/index.htm?postversion=2008071510



Fed chairman says housing finance crisis and energy costs will hurt growth. Shares of troubled mortgage finance giants open sharply lower

Rock

  • Guest
Dow below 11,000 again.  - 128

Rock

  • Guest
Dollar plumbs new low versus euro

Concerns about U.S. banking sector drive greenback to record low against the 15-nation euro.



NEW YORK (CNNMoney.com) -- The dollar sank to a new all-time low against the euro Tuesday as concerns about the health of the U.S. banking sector and economy deepened.

The 15-nation euro rose as high as $1.6038 in European trading, breaking through its previous high of $1.6018 set April 22. It later pulled back to $1.5992, but remained stronger against the dollar.

The greenback also fell against the Japanese yen, dropping to ¥105.18.
Track currencies

Fears about the dangerously volatile mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), along with government seizure of regional mortgage lender IndyMac (IMB) on Friday, have reignited credit worries, and investors have started to focus on the plight of smaller regional banks.

The government may have demonstrated that it would support struggling mortgage finance companies Freddie Mac and Fannie Mae, and large financial institutions, but "that doesn't really do much for regional banks that are seeing their capital eroded," said Steve Malyon, currency strategist with Scotia Capital in Toronto.

Shares of Washington Mutual (WM, Fortune 500) and National City (NCC, Fortune 500) plummeted in Monday trading and later issued statements that they had enough capital to avoid the fate of IndyMac.

The weak U.S. currency has been one of the factors blamed for high prices of oil and other commodities. Crude futures held above $145 a barrel in Asian trading as investors bought oil as a hedge against inflation. To top of page
First Published: July 15, 2008: 6:49 AM EDT

IndyMac customers line up to withdraw money

Analysts: Most banks are safe

http://money.cnn.com/2008/07/15/markets/dollar/index.htm?postversion=2008071508

Rock

  • Guest
GM to cut jobs, suspend dividend

Beleaguered automaker also plans asset sales, aiming for $10 billion in 'cash improvements' by 2009. CEO Wagoner says 'difficult decisions' necessary for survival.



NEW YORK (CNNMoney.com) -- General Motors Corp. said Tuesday it will suspend its dividend, sell off $4 billion to $7 billion worth of assets and cut 20% worth of salaried cash costs in an overall plan to save billions of dollars.

"We need to take some very tough actions to ensure our survival and success," said Chief Executive Rick Wagoner, in a press conference, referring to the current market conditions as an "unprecedentedly difficult time."

GM (GM, Fortune 500) stock dropped about 5% on the news.

In an earlier broadcast to employees, Wagoner said that these were "difficult decisions," but necessary for the company to prevail in the weak economy beset by high oil prices, which he called GM's "greatest concern."

Wagoner said the cost-cutting actions should help GM generate $10 billion in "cash improvements" by the end of 2009. Overall, the company plans to beef up liquidity by $15 billion through 2009.

At the end of the first quarter, GM said it had $23.9 billion in liquidity and access to $7 billion worth of U.S. credit, which is enough funding to get through 2008. But the company said it is gathering more liquidity to protect itself from a "prolonged U.S. downturn."

"Our plan is not just a plan to survive; it's a plan to win," said Wagoner, noting that raised cash could aid the company in shifting from trucks and SUVs to more fuel efficient cars.

"Our stated goal is to become the fuel economy leader in every sector in which we participate," said Robert Lutz, GM's vice chairman of global product development.

As part of its cost-cutting, GM plans to eliminate health care coverage for U.S. salaried retirees older than 65, effective Jan. 1. Wagoner said the company will increase pensions for affected retirees and their surviving spouses to "defray the impact."

GM has lost about one third of its 107,000 U.S. hourly workers since 2004. GM offered buyouts to its entire remaining U.S. hourly workforce of 74,000 in February, in a bid to unload its more experienced, higher-paid employees.

The Detroit-based automaker has been hard-hit by record-high gas prices, economic weakness, and a waning consumer interest in trucks and sport utility vehicles. The company has not made a profit since 2005.

Truck sales were down 21% in the first six months of 2008, while car sales were down 9% and Hummer sales plunged 40%. Overall, GM's vehicle sales were down 16%: worse than the industry wide vehicle sales decline of 10%.

In June, GM said it would shut four SUV and truck plants, would shift to more fuel efficient vehicles and discontinue its Hummer brand.

The stock price for GM, the world's largest automaker, has plunged 62% this year, to 50-year lows.

Despite the doom and gloom in America, GM's sales edged up in Europe by 3% in the first six months of 2008, including a 58% increase in Eastern Europe and a 60% surge in Russia. This includes a 21% increase in Russian Hummer sales.

"Frankly, we're very well positioned outside the U.S. now, and will be in [the U.S.] too, when this cycle concludes," said Wagoner.

Sen. Barack Obama, D-Ill., the presumptive Democratic candidate for president, said Tuesday in a prepared statement he recently met with the CEOs and plant workers of GM and Ford Motor Co. and that "the impact of their hardship goes far beyond their own companies."

"When a mainstay of the American economy is forced to make a restructuring decision like the one General Motors is announcing today, it is a sober reminder of the difficult economic times we're facing and of why we need change and a new direction in Washington," said Obama.

GM is the fourth-largest American company in terms of annual sales, competing with Toyota Motor (TM) and Ford (F, Fortune 500).  To top of page

http://money.cnn.com/2008/07/15/news/companies/GM/index.htm?cnn=yes

Rock

  • Guest


Bush: 'It's been a difficult time'

President Bush said today he is taking action to help people with falling home prices and high gas prices. "It's been a difficult time for American families," Bush said at a news conference. "We must ensure we can continue providing credit during this time of stress

http://money.cnn.com/2008/07/15/news/economy/bush_economy/index.htm?cnn=yes

Rock

  • Guest
Bad News Bernanke

Stocks plummet after Fed chairman tells Congress fragile U.S. economy being confronted by 'numerous difficulties'



WASHINGTON —  Federal Reserve Chairman Ben Bernanke told Congress Tuesday that the fragile economy is being confronted by "numerous difficulties" including persistent strains in financial markets, rising joblessness and housing problems, despite aggressive interest rate reductions and other fortifying steps over the past year.

At the same time, Bernanke, testifying before the Senate Banking Committee, said rising prices for energy and food are elevating inflation risks.

The situation, he said, poses "significant challenges" for Fed policymakers as they try to chart the best course for keeping the economy growing, while making sure inflation doesn't dangerously flare up. All the economy's problems, including slumping home values, which threaten to make people feel less wealthy and less inclined to spend in the months ahead, represent "significant downside risks" to economic growth.

Over the risk of this year, the economy will grow "appreciably below its trend rate" mostly because of continued weakness in housing markets, high energy prices and tight credit conditions.

Inflation has remain high and "seems likely to move temporarily higher in the near term," he warned.

"Given the high degree of uncertainty" about the Fed's economic outlook, Fed policymakers will need to carefully assess incoming information about inflation and economic growth, he said.

The Fed in June signaled an end to its nearly year long rate-cutting campaign because of growing concerns about inflation. Bernanke kept up his tough anti-inflation talk on Tuesday but stressed many other problems that could short circuit economic growth. He seemed to be keeping his options open in terms of rates. Given all the risky cross currents, economists believe the Fed will leave rates alone when they meet on Aug. 5.

Righting wobbly financial markets is key to getting the economy back on track, he said.

"In general, healthy economic growth depends on well-functioning financial markets," Bernanke said. "Consequently, helping the financial markets to return to more normal functioning will continue to be a top priority," he said.

Bernanke's testimony comes just two days after the Fed and the Treasury Department came to the rescue of mortgage giants Fannie Mae and Freddie Mac, offering to throw them a financial lifeline.

The companies hold or guarantee more than $5 trillion in mortgages — almost half of the nation's total. The Bush administration is asking Congress to temporarily increase lines of credit to Fannie and Freddie and to let the government buy their stock. The Fed has offered to let the companies draw emergency loans.

The pledges of aid have raised concerns about the government's role in such financial problems and the risk to taxpayers.

Bernanke said investors are nervous in general because of the cloudy outlook for the economy and credit conditions, feeding a vicious cycle that can be hard to break.

"Many financial markets and institutions remain under considerable stress, in part because the outlook for the economy and thus for credit quality, remains uncertain."

The Fannie and Freddie troubles came on the heels of the failure of IndyMac, a big bank. And, earlier this year, a run on investment bank Bear Stearns pushed the company to the edge of bankruptcy and into a take over by JPMorgan Chase, which was backed financially by the Fed. That was a controversial move that prompted critics to call it a government bailout, putting taxpayers money at risk.

The Fed, in new projections, now believes inflation will be higher this year than previously thought. Growth for the year will be sluggish but not as bad as previously forecast, helped by the government's $168 billion stimulus, including rebates. The unemployment rate, which could rise as high as 5.7 percent this year, is the same as earlier projections.

http://www.foxnews.com/story/0,2933,382456,00.html

Offline 2Revolutions

  • Member
  • *****
  • Posts: 1,761
  • For we wrestle not with flesh and blood
http://money.cnn.com/2008/07/10/real_estate/foreclosures_no_break/index.htm?postversion=2008071008

Six months, 343,000 lost homes
Through the first half of 2008, the foreclosure rate shows little sign of letting up.

By Les Christie, CNNMoney.com staff writer
Last Updated: July 10, 2008: 8:27 AM EDT

NEW YORK (CNNMoney.com) -- The number of Americans losing their homes to foreclosure continued to soar in June, according to a report released Thursday.

RealtyTrac, an online marketer of foreclosed properties, reported that lenders repossessed 71,563 homes in June. A year ago, just 26,369 homes were taken back.

During the first six months of 2008, 343,159 Americans lost their homes, up 136% from 145,696 recorded during the same period in 2007.

The report revealed that foreclosure filings of all types, including notices of default, notices of auction sales and bank repossessions, rose 53% from June 2007, to 252,363. For the first six months, total filings rose 56% to 1.4 million.

"June was the second straight month with more than a quarter-million properties nationwide receiving foreclosure filings," said James Saccacio, chief executive officer of RealtyTrac.

There was a shred of good news: When compared with May, filings declined 3%.

Part of that decline may be traced to the actions of states, including Maryland and Massachusetts, that have put moratoriums on foreclosures, according to Rick Sharga, a spokesman for RealtyTrac.

"Massachusetts put a 90-day hold on new foreclosures," he said, "and filings dropped 3% there over last year."

But big increases were more common. In 13 states, filings more than doubled from a year earlier, including in Arizona, Nebraska and Oregon.

"The year-over-year increase of more than 50% indicates we have not yet reached the top of this foreclosure cycle," said Saccacio.

Adding to foreclosure woes is that home prices have been falling all year, down more than 14% in the first quarter, according to the latest figures from the S&P Case-Shiller Home Price Index.

Price declines strip homeowners of equity, making many mortgage borrowers owe more than their homes are worth. When they're underwater, they can't borrow against home equity to help out during a rough financial stretch.

Underwater properties are hard to sell because any deal would be for a sum below the mortgage balance - the bank would have to agree to take a loss. Many of these "short sales" get turned down and wind up as bank-owned properties.

"The real explosion has been in bank repossessions," said Sharga. "There's really no place else for these places to go except back to the lenders when they're underwater."

Two things work against short sales, according to Duane LeGate, president of HouseBuyerNetwork.com, a short-sale specialist. One is there is often a question of who has authority over the loan. Mortgage servicers are loath to make decisions that will result in losses of mortgage principal of loans in investor pools, even if it means smaller losses than foreclosures produce.

The second is manpower. Servicers simply don't have the personnel to handle the volume of short-sale and other loss-mitigation requests they've been receiving. Delays in processing short sales can mean approvals come too late.

"We hear about all these streamlined mortgage lending programs," said LeGate. "Where are the streamlined processes to undo the mortgages they originated?"

Sun Belt still hard hit
Nevada led all states in the rate of foreclosure activity for the 17th consecutive month, with one filing for every 122 households, a total of 8,713. California had the most filings with 68,666, one for every 192 households.

Other states with very high foreclosure rates included Arizona, one for every 201 households, Florida (one for every 211), Michigan (one in 375) and Ohio (one in 382).

California had seven of the 10 metropolitan areas worst hit by foreclosure. Stockton had one for every 72 households - more than six times the national average of one for every 501 households. Merced, was second with one for every 77 households, and Modesto - one in 86 - was third.

Cape Coral-Fort Myers, Fla., where one in every 91 households received a foreclosure filing, had the fourth highest rate. In Las Vegas, the only city outside of California and Florida with a foreclosure rate ranking among the top 10, one in 99 households received a foreclosure filing in June.

Those who wish to remain ignorant and free, in a state of civilization, want what never was and what never will be.  - Thomas Jefferson

Offline Optimus

  • Globalist Destroyer
  • Global Moderator
  • Member
  • *****
  • Posts: 12,802
    • GlobalGulag.com
Dollar Weakens as Bernanke Cites Growth Risk, Inflation Danger
http://www.bloomberg.com/apps/news?pid=20601101&sid=aWcHS3PvewOQ&refer=japan
By Bo Nielsen

July 15 (Bloomberg) -- The dollar dropped against the euro as Federal Reserve Chairman Ben S. Bernanke told a Senate committee that growth and inflation risks have both increased.

The currency weakened the most against the yen since the March collapse of Bear Stearns Cos. as Bernanke said helping financial markets return to more normal functioning remains ``a top priority.'' The dollar earlier touched a record low versus the euro on concern confidence in Fannie Mae and Freddie Mac will diminish even after the U.S. government pledged support.

``It's hard to find anything dollar positive in the statement,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``Bernanke clearly acknowledged more growth risks than he anticipated a few weeks ago. The problem is coming from the financial sector.''

The dollar declined 0.4 percent to $1.5976 per euro at 10:25 a.m. in New York, from $1.5908 yesterday, and touched $1.6038, the weakest level since the 15-nation currency's debut in 1999. The U.S. currency fell 1.7 percent to 104.35 yen, from 106.14 yesterday. Japan's currency increased 1.3 percent to 166.74 per euro, from 168.89 yesterday, when it weakened to the all-time low of 169.75.

The U.S. currency has given up all the gains made versus the euro since July 3, when European Central Bank President Jean-Claude Trichet said he has ``no bias'' on future interest- rate moves.

The dollar strengthened 0.6 percent to $1.5706 per euro that week. It has since slumped almost 2 percent on concern Fannie Mae and Freddie Mac, which buy or finance almost half the $12 trillion of U.S. mortgages, will need a government rescue.

The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a fifth day on the ICE market, dropping as much as 0.8 percent to 71.314, the lowest level since April 23, from 71.915.
“The Constitution is not an instrument for the government to restrain the people,
it's an instrument for the people to restrain the government.” – Patrick Henry

>>> Global Gulag Media & Forum <<<

Offline dr4gon

  • Member
  • ****
  • Posts: 403
Citigroup trades lowest since its creation in 1998 according to bloomberg. Insane shit is happening right now
"The answer to 1984, is 1776"

Offline rawiron1

  • Member
  • *****
  • Posts: 3,032
11:35am EST.

Dow 11,020.00 -15.00
Gold 983.20
Oil 142.96

Market is imploding on cue as Alex's guests said that it would in July.

I am doing a silver order this week.  I got gold but have been priced out of the market.

Jason
Jason the Fed

Librium

  • Guest
silver's even better

when the ratio drops, you'll be able to trade silver for more gold than you could have bought with cash