1/22/08 Must Reads: Holy Crap, What's Happening to the Economy Edition!?

Tuesday, January 22, 2008
Todd Epp in S.D. Watch "Must Reads"

What’s better after a long weekend than an economy that’s in the crapper!  Welcome to SD Watch’s “Holy Crap, the Economy Stinks” Must Reads Edition!

• The Fed Makes a Cut—Wall Street Journal

Jan. 22, 2008
The Federal Reserve, confronted with increased fears of a recession, cut the federal-funds rate by three-quarters of a percentage point on Tuesday. Policy makers cited a weakening economic outlook, and downside risks to growth. The move came amid a global stock-market selloff. On the news, U.S. stock futures quickly reclaimed some early losses but remained volatile.

For more information, see:
http://wsj.com?mod=djemalertNEWS

• Wall St futures fall, point to further sell-off—Reuters
  

• Bank of America Tanks 4th Quarter—Wall Street Journal
  

Jan. 22, 2008
Bank of America said fourth-quarter net income fell sharply to $268 million, or five cents a share, compared with$5.26 billion, or $1.16 a share, a year earlier. The bank reported trading-account losses of $5.44 billion, driven by write-downs of collateralized debt obligations and weaker trading results.

“Our fourth quarter results were severely impacted by ongoing dislocations in capital markets and the slowing economy,” said Kenneth D. Lewis,chairman and chief executive officer. “Even given that environment, we certainly are not pleased with our performance. However, we are cautiously optimistic about 2008, though we believe economic growth will be anemic at best in the first half.”

http://online.wsj.com/article/SB120099038475306135.html?mod=djemalertNEWS

• Asian Stock Markets Plunge for Second Day—New York Times
  

Stock markets across Asia plunged even farther and faster on Tuesday than on Monday as anxious sellers dumped huge numbers of shares on worries that an economic slowdown in the United States could drag down growth around the world.

Tokyo’s Nikkei closed down more than 5.7 percent while Hong Kong’s Hang Seng lost 8.7 percent of its value.
 
Read More: http://www.nytimes.com/?emc=na

Better get that Folger’s coffee can, stick some money in it, and bury it in the back yard.  And vote Democratic this election season.

 

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