December 1, 2008 Issue 004 Volume 002
...
I hope everyone is enjoying the holiday season as we approach a new year. Even with all the pain in our stock market. After all, we still have plenty to be thankful for. I hope you are able to spend some time with good friends and family during this season.
What's Going On?
......
Fed announces new mortgage support program ..
The Federal Reserve in another massive life-supporting intervention for the U.S. financial system on Tuesday announced a $600 billion program to buy mortgage related debt and securities and $200 billion to facility to support consumer debt securities. ...Economic recovery ...
The economy has probably slipped into a recession that will last through August of next year. However consumers will still continue to cut spending to rebuild their lost wealth. ...Commerce Department report ...
Consumers cut spending at the steepest rate in 28 years according to a commerence Department report on Tuesday. ...Nation's economy
Jobless claims remain at recessionary levels, consumers cut back on spending and home sales fell to lowest level in nearly 18 years. .....
.....
Reverse Mortgages
The new reverse mortgage rules allow homeowner age 62 and older to borrow more money and even allows them to purchase a new home in 2009. ....More Jobs Are Being Cut
JPMorgan Chase & Co. said today it will cut a total of 9,200 jobs at Washington Mutual, which it acquired Sept. 25 after Washington Mutual became the nation's largest bank to fail amid the ongoing credit crisis. ....Housing Could Bottom Soon
... The housing market could bottom next year with the flood of "FOR SALE" signs in the front yard of many neighborhoods across our great country. Even though there are buyers looking for foreclosed property, I have to agree with that crazy guy known as Jim Cramer when he was noted saying, it is not helpful that home builders keep adding to supply. Because with all of the layoff happening across the country, who can afford to buy them? ..You Can Buy A Bank
... The Federal Deposit Insurance Corp. is establishing a "modified bidder qualification process" to allow interested parties that do not currently have a bank charter to participate in the bid process through which failing depository institutions are resolved. Must have compliant business plan, capital and manager that can meet their strict standards. ...Stock Recommendation
On November 17, 2008 my stock choice of Goldman Sachs (NYSE:GS) was $67.79. On November 26th last trade was $76.50. And I still think it's a good choice. Hang in and let's see what it does Friday and cash out. For the weak in heart. Take the nine bucks and run. UPDATE: Symbol "GS" Stock closed at 78.99 on Friday. Hope everyone enjoy a little gain. I expect it to go back down. Monday. However the same will be with the majority of stocks. ... This week I am going to suggest symbol "ISRG" today's last trade was119.23. Lets see what happens on Friday 5th of December. ....
MARKET WATCH
Obama reassures nervous nation on ailing economy
Wednesday November 26, 5:50 pm ET By Sara Kugler and Stephen Ohlemacher, Associated Press Writers ....
Obama reassures nervous nation on ailing economy, names former Fed chair to economic team
CHICAGO (AP) -- President-elect Barack Obama sought to reassure the nation and nervous holiday shoppers about the ailing economy Wednesday as beleaguered stores braced for their most important month of the year. ...
Stocks on win streak amid more bad economic news
Wednesday November 26, 6:57 pm ET By Christopher S. Rugaber, AP Economics Writer ...
Drumbeat of bad economic reports continues, but Wall Street finds a winning streak ..
WASHINGTON (AP) -- Wall Street finally has something to be thankful for. A set of economic reports out Wednesday were predictably gloomy, but the stock market continued its winning streak. The Dow Jones industrials rose 247 points, the first time since April 15-18 there were four straight days of gains.
Cerberus claims it was misled in deal for Chrysler .
Wednesday November 26, 5:00 pm ET By Tom Krisher, AP Auto Writer
Cerberus accuses Daimler of misrepresentations before deal to buy Chrysler closed last year
DETROIT (AP) -- Relations between Chrysler's current and former owners turned ugly Wednesday when private equity firm Cerberus Capital Management LP accused Daimler AG of "intentionally and materially" misleading Cerberus before the German automaker sold Chrysler last year. ....
