News round-up: 10 Sep 2008

Yesterday was a miserable day in the market with the Dow down 280 points in America. Lehman was the watch word of the day as worries about its solvency caused the stock to fall 45%. WaMu didn’t do much better. It was down nearly 20%. Overall, the financial services took a big hit in the states.

As Far as Frannie goes, Martin Wolf says that the UK should not replicate the U.S. bailout — read it. There is a very good article on how the GSE takeover will affect the U.S. budget deficit. Oh yeah, and Bill Gross’s Pimco made $1.7 billion off of the bailout.

In the UK, the consumer is really pulling back and this downturn is looking as nasty as the one in the early 1990s.

There was not a ton of good news out there yesterday (unless you’re Bill Gross). Oil did fall under $100 as I predicted. If you have a important positive story, we want to know. I do have a section on dream homes.

If you want a good laugh, check out the article about North Korea in my Odds & Ends section — supposedly Kim Jong-Il has been dead for 5 years. Kind of like the urban myth of Saddam Hussein and his many body doubles.

Dream homes

Fannie-Freddie Fallout




Financial Services

Odds & Ends

  1. Mark Wadsworth says

    Hee hee, first the property price bubble, now the oil bubble. Bursting, I mean.

  2. Edward Harrison says

    Yes, it seems asset deflation is the mode de jour. So be it. These assets were all inflated Let’s get back to normal, reasonable levels and start with a clean slate I say.

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