Chief
07-11-2008, 08:15 AM
http://biz.yahoo.com/ap/080711/wall_street.html
Friday July 11, 10:53 am ET
By Tim Paradis,
Stocks tumble amid worries about health of Fannie, Freddie; oil sets fresh records
NEW YORK (AP) -- Stocks tumbled Friday as investors focused on troubles at mortgage companies Fannie Mae and Freddie Mac and watched oil prices climb further into record territory. The Dow Jones industrials fell more than 180 points and neared the 11,000 mark for the first time in two years.
Investors seemed unimpressed by a statement from Treasury Secretary Henry Paulson, who said the government's focus is ensuring that Fannie Mae and Freddie Mac remain as presently constituted to carry out their mission.
The government-chartered companies at times each lost more than 40 percent on growing speculation that a government bailout is needed. A collapse of the two financiers would cause further shock to the financial system, and trigger more losses to banks and brokerages with significant holdings of mortgage-backed securities.
The troubles at Fannie Mae and Freddie Mac are just the latest depressing turn in a year-old credit crisis that shows no sign of ending, disappointing stock traders who just months ago who thought the worst was perhaps over.
Global banks and brokerages have scrambled to sell assets and raise capital in an effort to offset nearly $300 billion of write-downs linked to the credit crisis. Citigroup Inc. announced Friday it will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion.
Meanwhile, oil continued its ascent on supply concerns. A barrel of oil vaulted to a record above $147, raising more concerns about the impact of higher prices on inflation and in turn, the overall economy.
The confluence of negative news offset a mostly positive quarterly report from General Electric Co. The conglomerate that owns everything from television network NBC to jet engine plants reported second-quarter profits that met analysts' expectations. However, the outlook across its business lines was mixed.
In midmorning trading, the Dow fell 185.80, or 1.65 percent, to 11,043.22. It last traded below 11,000 on July 25, 2006.
**SCHNIPP**
Things may look poorly in and from Downtown Vancouver, but the economy is still humming just fine up here in East Vancouver. There is still plenty of Construction, and not too many empty shopfronts up on this side of town.
It's not great because of $4'28 a gallon gasoline, but the economy is far from tanking around us.
To a degree, the "sour economy" that you read about in the newspapers is mostly a figment of their own imagination. I'm sure massive layoffs in the Dinosaur Media hurt like hell for those who just lost their jobs, but the Media is not representative of the rest of the economy, other than people would much rather fill the gas tank instead of paying through the nose to advertise anything in the columbian...
So it goes.
Friday July 11, 10:53 am ET
By Tim Paradis,
Stocks tumble amid worries about health of Fannie, Freddie; oil sets fresh records
NEW YORK (AP) -- Stocks tumbled Friday as investors focused on troubles at mortgage companies Fannie Mae and Freddie Mac and watched oil prices climb further into record territory. The Dow Jones industrials fell more than 180 points and neared the 11,000 mark for the first time in two years.
Investors seemed unimpressed by a statement from Treasury Secretary Henry Paulson, who said the government's focus is ensuring that Fannie Mae and Freddie Mac remain as presently constituted to carry out their mission.
The government-chartered companies at times each lost more than 40 percent on growing speculation that a government bailout is needed. A collapse of the two financiers would cause further shock to the financial system, and trigger more losses to banks and brokerages with significant holdings of mortgage-backed securities.
The troubles at Fannie Mae and Freddie Mac are just the latest depressing turn in a year-old credit crisis that shows no sign of ending, disappointing stock traders who just months ago who thought the worst was perhaps over.
Global banks and brokerages have scrambled to sell assets and raise capital in an effort to offset nearly $300 billion of write-downs linked to the credit crisis. Citigroup Inc. announced Friday it will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion.
Meanwhile, oil continued its ascent on supply concerns. A barrel of oil vaulted to a record above $147, raising more concerns about the impact of higher prices on inflation and in turn, the overall economy.
The confluence of negative news offset a mostly positive quarterly report from General Electric Co. The conglomerate that owns everything from television network NBC to jet engine plants reported second-quarter profits that met analysts' expectations. However, the outlook across its business lines was mixed.
In midmorning trading, the Dow fell 185.80, or 1.65 percent, to 11,043.22. It last traded below 11,000 on July 25, 2006.
**SCHNIPP**
Things may look poorly in and from Downtown Vancouver, but the economy is still humming just fine up here in East Vancouver. There is still plenty of Construction, and not too many empty shopfronts up on this side of town.
It's not great because of $4'28 a gallon gasoline, but the economy is far from tanking around us.
To a degree, the "sour economy" that you read about in the newspapers is mostly a figment of their own imagination. I'm sure massive layoffs in the Dinosaur Media hurt like hell for those who just lost their jobs, but the Media is not representative of the rest of the economy, other than people would much rather fill the gas tank instead of paying through the nose to advertise anything in the columbian...
So it goes.