Last Week in the Economy Cliff notes

[Trey803 5,000+ posts]

Investors poured money into bonds, and the yield on the benchmark 10-year Treasury note fell to a 5-year low.

But it looked like that wouldn't be enough, so Sunday afternoon the Federal Reserve, along with 10 banks, announced a $70 billion pool of funds to aid troubled financial firms. The U.S. central bank also loosened its lending restrictions.

In the worst day on Wall Street in seven years, the Dow Jones Industrial Average tanked more than 500 points after Lehman Brothers' epic collapse of the buyout of Merrill Lynch.

Gold rose $70, a new record. Oil rose $6, its second-largest jump ever. And the yield on the three-month Treasury sank to 0.02%, the lowest level since 1940.

The Fed also said it would make unlimited funds available to banks to finance purchases of asset-backed commercial paper from money market funds.

In a press conference, Treasury Secretary Paulson outlined the government's plan to put up hundreds of billions of dollars to help stem the crisis, saying "the financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing."

cliff notes:

**** near market crash (some would argue it did crash)

Our govt. pretty much is introducing enough money to the market to bail it out (my analysis of the article but I am no marketing wiz)

http://finance.yahoo.com//banking-budgeting/article/105803/The-Week-That-Broke-Wall-Street

Click to read more...

 

[Ignatowski 5,000+ posts]

I pulled 135K out of the stock market last week and dumped it into

CD's.......I'll wait till the Suits figure it all out again,they are messing up

big time as we speak and destroying a nations economy....

Ill be back in mid 2009 once it all clears up

 

[Hintzyboy 5,000+ posts]

I pulled 135K out of the stock market last week and dumped it into CD's.......I'll wait till the Suits figure it all out again,they are messing up

big time as we speak and destroying a nations economy....

Ill be back in mid 2009 once it all clears up

Economy's been messed up for a while. It's just finally showing up big time on Wall Street, but people have been feeling it for quite some time. If something doesn't change very soon, we're all screwed. I have a very bad feeling that the November elections will decide whether or not this country goes into another depression. McCain will screw us all either way, and Obama will screw us all unless he puts his social reform stuff on hold for a while (which will leave him labled as a liar).

Either way, the liklihood of me moving to a foreign country in the near future increases every day (I of course have other reasons like travel, school, culture, etc, but this might get added to the stack)

 

[snoopdan 5,000+ posts]

no one cares, we're all moving to canada anyways.

 

[Flipx99 5,000+ posts]

Yields will increase next week as cash moves from bonds to equities.

 

[sholiz 10+ year member]

canada ... meh

amsterdam? FTW