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 »

• 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 »

Thanks to Mark for contributing the following proposal:

When a company falls on difficult times, one of the things that seems to happen is they reduce their staff and workers. The remaining workers need to find ways to continue to do a good job or risk that their job would be eliminated as well. Wall Street and the media normally congratulate the CEO for making this type of “tough decision” and his board of directors gives him a big bonus.

Our government should not be immune from similar risks. Therefore let’s reduce the House of Representatives from the current 435 members to 218 members and Senate members from 100 to 50 (one per state). Also reduce remaining staff by 25%. Accomplish this over the next 8 years. (two steps/two elections) and of course this would require some redistricting. 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 »