For the week ending Feb. 20, 2009:

Stocks fell around the world this week as investors remained skeptical of the U.S. government’s effort to bail out the financial sector. The Dow Jones Industrial Average fell to a six-year low on Thursday, while Japan’s Topix stock index tumbled to its lowest level in 25 years. As the selling ensued, Treasuries rallied, and gold rose above $1,000 per ounce.

U.S. economic news Obama administration takes aggressive stance to hall foreclosures
U.S. President Barack Obama pledged $275 billion for a program to cut mortgage payments for struggling homeowners and expand the role of Fannie Mae and Freddie Mac in curbing Read the rest of this entry »

Lamar Thames

The worldwide economic crisis is wreaking havoc with families, banking, finance, construction, infrastructure and probably more areas that we can even imagine at this time. As I have said before, I am not sure that all of the changes that may come about because of the financial chaos will be bad. There are benefits to a leaner, meaner economy, the least of which is greater efficiencies and more conservation in many areas.

Look at what has happened in the oil industry. Prices went through the roof in the U.S., motorists reduced their driving by billions of miles and prices came down, thus producing a benefit to the environment. (I know gas prices have rebounded against all odds, but there are other reasons for that.) You can see similar results in water usage and prices for all manner of Read the rest of this entry »

(If you think the economy is bad now, read what they were saying back in 1953)

‘I’ll tell you one thing, if things keep going the way they are, it’s going to be impossible to buy a week’s groceries for $20.’

 

‘Have you seen the new cars coming out next year?  It won’t be long before $2,000 will only buy a used one.’

 

‘If cigarettes keep going up in price, I’m going to quit.  A quarter a pack is ridiculous.’ Read the rest of this entry »

• For the week ending Feb. 13, 2009
  
  
• U.S. government aid plans get tepid reception
• Companies forecast future slowdown, announce job cuts
• Consumer confidence falls as job losses mount
• Cisco sells bonds as credit markets begin thaw
• Eurozone economy contracts

Stocks lost ground this week as investors reacted with skepticism to the U.S. government’s $789.5 billion stimulus package and the U.S. Treasury’s bank rescue plan. Markets seemed to conclude that the stimulus plan would be insufficient to turn the U.S. economy around and the bank rescue plan lacked details. Reports that the U.S. government may subsidize mortgage payments helped stocks recover some lost ground late in the week. Read the rest of this entry »

I know you may be expecting commentary about “American Idol” in this posting, but not this week. For one thing, nothing is really happening on Idol worth talking about, and for another Idol Chatter is just meant as a catch-phrase for all kinds of chatter, which is what I am doing this week. So here goes:

*********************

FALLEN IDOLS

Too bad about Michael Phelps, A-Rod (I hate those nicknames) and all the other athletic superstars who have been, or will be, discovered to have used illegal and/or performance-enhancing drugs. I don’t really waste too much time worrying about them or their images, except in the regard that so many of our impressionable young people might be seduced into Read the rest of this entry »

Stock rally fizzles on bad news

For the week ended January 30, 2009

• Economy shrank, prices fell last quarter
• More companies post losses, cut jobs
• Ongoing unemployment rises
• Home prices decline but home resales rise
• ndex of leading economic indicators edges up

To no one’s surprise, the U.S. economy shrank in the fourth quarter of 2008. But the announced 3.8% drop in gross domestic product (GDP) was actually better than many economists had expected. However, excluding a buildup of inventories, the economy contracted 5.1% in the quarter. The U.S. stock market responded to the Friday morning announcement by declining broadly. Read the rest of this entry »

Lamar Thames

Uh, oh!

Was Monday’s announcements of massive nationwide layoffs the flash-flood warning of an economic tsunami heading our way? 

School districts across the state are facing large budget cut that will force them to eliminate jobs. Home Depot, Sprint, Caterpillar and Pfizer are among the latest national companies to announce huge job losses. 

I am hearing talk of layoffs in nearly every walk of life these days, including the elimination of a job that recently hit home. Clear Channel Radio announced on Jan. 20 it was laying off 1,850 employes across the country. One of them was my son, Joe, an advertising sales person in Jacksonville. He lost his job on the day Barack Obama was inaugurated and the same day that both radio talk show personalities David Lamm and Joe Cowart lost theirs. Read the rest of this entry »

For the week ended January 23, 2009, compiled by MFS:

• Dow suffers its worst Inauguration Day decline
• State Street losses spark banking rout
• Microsoft stuns with report of loss
• U.K. economy officially in recession
• Slowing China growth hits region’s export markets
• Central banks in Brazil and Canada cut rates

Stocks took a dive this week amid disappointing earnings and economic news. Corporate heavyweights, including Microsoft, General Electric, and Advanced Micro Devices, reported lower earnings, and economic data continued to point to a worsening global recession. As Barack Obama took office as the 44th president of the United States, the Dow Jones Industrial Average posted its worst Inauguration Day performance as worries mounted about the fate of the nation’s financial services sector. The Dow lost 332.13 points, or 4%. The decline was led by a 20% drop in bank shares as concern increased that financial institutions would need to be nationalized. Read the rest of this entry »

Stocks hit by news of mounting economic woes

For the week ended January 16, 2009

• Bank of America gets $138B bailout
• Data suggest worsening recession
• U.S. cost of living falls
• Citigroup will split its operations
• JPMorgan’s profits fall 76%
• Central banks in eurozone, Mexico, and Turkey cut rates

Stocks staged a bounce Friday morning after the U.S. government agreed to a $138 billion bailout of Bank of America. However that upbeat news was not enough to reverse the week’s selloff, which was sparked by a steady stream of data signaling and even deeper recession. Read the rest of this entry »

This is a weekly review of financial markets from MFS.

For the week ended January 9, 2009

• 524,000 jobs lost in December; 2.6 million for the year
• Unemployment hits 7.2%
• Christmas retail sales suffer
• More layoffs announced

More bad economic news piled up this week as the U.S. Department of Read the rest of this entry »