SubscribeAll Posts Tagged With: "bailout plan"
Good-bye 2008: Wish We Never Knew Ya!
Much like an embarrassing family member or friend, or humiliating past pictures taken of you in a ridiculous outfit or pose, we’d all like to pretend that 2008 never happened and it was just a figment of our imagination.
Personally, we’ve had friends lose their jobs, watch their business nosedive, pull their hair at sharply reduced retirement incomes and/or be abandoned by their wives. And everyone’s investment portfolio got blasted to one degree or another.
It didn’t matter what you invested in, you still lost. The "winning investment" was the one that managed to leak one dollar in four (or fewer) by…
2Jan2009 | Oxbury Research | 0 comments | ContinuedPaulson Announces New Plans to Buy Equity Stakes in Banks and Revive Credit Markets
The U.S. government yesterday (Tuesday) announced plans to invest $250 billion, more than a third of the $700 billion congressional bailout allotment, into nine of America’s largest banks in an effort to bolster confidence in the financial system. Similar to steps taken by European governments earlier this week, the government will guarantee new debt and take equity stakes in the participating banks.
"Government owning a stake in any private U.S. company is objectionable to most Americans – me included," U.S. Treasury Secretary Henry Paulson said announcing his decision to effectively nationalize the nation’s banking sector. “Yet, the alternative of leaving…
15Oct2008 | Money Morning | Comments Off | ContinuedThe Bull Market No One is Talking About
The financial world didn’t get its relief yesterday. The bailout plan and any accompanying reprieve just weren’t in the cards. The Dow tumbled and investors rushed to the exits.
I’m not going to harp on the bad news again, I’m sure you’ve heard it all by now. That’s because opportunity is knocking right now.
I will say the bailout plan, or some form of it, will be formalized and approved. Too many politicians have too much riding on it. And then all will go back to normal…for a few days.
We could even get a nice bounce in the markets following…
1Oct2008 | Q1 Publishing | 1 comment | ContinuedCredit Crisis Update: U.S. Stocks Notch Record Gains on Investor Hopes for a New Bailout Plan
U.S. stocks soared yesterday (Tuesday) – with the Dow Jones Industrial Average gaining 485 points in posting its third-biggest point gain ever – as investors surged back into stocks just one day after the surprise rejection of a $700 billion bailout plan touched off a record sell-off.
On Monday, after the House of Representatives refused to approve the compromise bailout accord, the Dow Jones plunged nearly 778 points – for its biggest point drop ever – as $1.2 trillion in shareholder wealth was eradicated from U.S. shares. The Standard & Poor’s 500 Index dove 8.79%, incurring its biggest loss since the 1987 stock market…
1Oct2008 | Managing Money | Comments Off | ContinuedFive Reasons Why the $700 Billion Banking Bailout Will Translate into $250 Oil
I’ve been predicting record oil prices for a number of years now, so when crude oil prices recently plunged from their record highs, I warned investors and consumers that the decline was nothing more than a temporary respite.
But now it’s clear that the fallout from the $700 billion banking bailout pact will virtually guarantee that my prediction will come true.
As the curtain closed on the third quarter yesterday (Tuesday) – leaving many investors worried that the long-feared "Super Crash" was imminent – crude-oil futures were staring at their first decline in seven quarters and their biggest quarterly decline in 17 years,…
1Oct2008 | Money Morning | Comments Off | ContinuedCongress Unveils Bailout Plan, but Will the Markets Respond?
After some late-week political wrangling that also consumed most of the weekend, congressional leaders late yesterday (Sunday) announced their agreement to a detailed version of the long-awaited $700 billion bailout plan that analysts say is crucial to keep the U.S. economy out of a Depression-like downturn.
The bill will be introduced in the U.S. House of Representatives early this morning (Monday) and will then head over to the Senate for consideration by Thursday, Senate Majority Leader Harry Reid, D-Nev., said late last night.
Lawmakers must somehow again steer a path that allows them to traverse taxpayer and (and soon-to-be) voter ire at having…
29Sep2008 | Money Morning | Comments Off | ContinuedForget the Bailout, Buy Like Warren Buffett
In today’s semi-political investment environment, it starts to become a little hazy whether we’ve turned the corner or whether we’re still headed for an even worse market crash. Press reports have praised the work of Treasury Secretary Henry Paulson and Congress for diverting the economy from a new version of the Great Depression.
The only problem is that their plan has not been adopted. It still must run the gauntlet of the U.S. Congress. Anyone who knows something about politics understands that trying to get a bill passed is like playing a grown up version of telephone – you may not…
26Sep2008 | Investment U | Comments Off | ContinuedWhile Lawmakers Reach Credit Crisis Compromise, Money Morning Bailout Plan Expert Displays Doubt
Congressional negotiators late yesterday (Thursday) reached a tentative agreement on a credit-crisis compromise that gives the Bush administration about a third of the $700 billion it has requested up front, but made sure half that outlay was subject to a congressional veto, published reports state.
Details remained sketchy late yesterday. However, this much is known. Under the plan – known as the “Troubled Assets Rescue Plan,†or TARP – U.S. Treasury Secretary Henry M. “Hank†Paulson Jr. would get an immediate $250 billion to begin bailout operations, and could obtain an additional $100 billion if needed. The final installment of $350…
26Sep2008 | Money Morning | Comments Off | ContinuedDear Hank: Here’s How to End the Credit Crisis at No Cost to Taxpayers
While it’s clear from the current credit crisis that our financial system is at a critical juncture, it’s just as clear that there’s no agreement over how we should fix the problems we face. The reality is that neither the plan put forth by U.S. Treasury Secretary Henry M. “Hank” Paulson Jr. – nor any of the addendums offered up by Congress or the lobbyists – will resolve this crisis.
The key culprits are the structured financial products that reside on the balance sheets of banks, dead investment banks, insurance companies, hedge funds and all manner of other duped and unsuspecting…
25Sep2008 | Money Morning | Comments Off | ContinuedBig Bailout: What The Fed’s Decision Means For Stocks – And For You – And How To Profit From It Anyway
The bailout made it official: Other than the week of September 11, 2001, last week was the most memorable of my career.
By the time the closing bell rang on Friday, investors were exhausted after an astonishing week of crazy activity, as the stock market swung from enormous losses, due to the fallout of the Lehman Brothers bankruptcy and AIG mess, to equally remarkable rallies amid talk of a massive government bailout plan.
Like many others, I knew I’d need the weekend to digest and make sense of everything that happened. The only reprieve I got was taking my 7-year old son…
25Sep2008 | Smart Profits Report | Comments Off | Continued
Loading ...
