Happy Turkey day everyone!Image Source: Net a Porter
While you wait for Thanksgiving dinner, here is something to oogle over.....
Happy Turkey day everyone!
Image Source: Net a Porter
Happy Turkey day everyone!Image Source: Net a Porter
It's been another exciting week! Almost comparable to that week in September/October, except no major banks collapse (yet) and there were no big mergers. The DOW finally broke the 8000 point after hovering around it for a month, on Wednesday, tumbling 5.1% in a day to yet another more than 5 year new low. The downward momentum continued into Thursday, until it finally went back up to 8000 levels towards the end of Friday.
The week started off with Pandit's speech at Citi, announcing their plan to cut 52,000 jobs (yike!) and cut expenses by 20%. Citi's share began falling as investors worry that these measures will not be able to revive Citi from its current situation- they lost $20.3 bn in the last year and some don't expect it to be profitable in 2009 as they worry about Citi's exposure to credit card/mortgage losses and toxic debt. On Thursday, Prince Alwaleed of Saudi Arabia announced that he was boosting his shares in Citi from 4% to 5%. That didn't give other investors much confidence (not everyone's Buffet), as Citi shares broke the $5 point that day (a 13 year low). This is a very dangerous level to be at, because many institutional investors are not allowed to own shares below $5 and this could trigger a wave of selling before year end. On Friday Pandit assured employees that he would like to keep the company together and does not wish to spin off its Smith and Barney brokerage unit (their crown jewel I guess?). Still, there are rumors of them finding a merger partner or raising capital in the future. Citi is also pressing members of Congress to put back the ban on short selling, as they claim that it is hurting their stock price. Citi's stock price ended $3.77 on Friday, down from $20 a month ago and $30 a year ago!
Following the lead of Golman and UBS, other Wall Street banks are being pressured to foregoe execute bonus this year. JP Morgan also announced that they will be cutting 10% of their workforce.
The other big driver this week was the auto industry. Discussions started looking bleak on Wednesday (and thus the huge drop on concerns of an even deeper recession if the auto industry collapses), as Congress members continue to bicker with the Big 3. I'm not too sure about the details (cars just don't interest me that much), but it sounds like they're concerned about whether taxpayer's money is going to waste since the auto industry was already not competitive before the this financial crisis and they want to see a sound plan to change them into healthier companies before they come to their aid. I believe the catch phrase of the week is, "You show us the plan, and we'll show you the money." Makes sense to me. They will be meeting again in December for the Big 3 to prove to American that they are worth saving. Oh and they seemed to have came up with a good source of where the $25 bn will come from too. Instead of from TARP, it will come from the money already approved in July to help make more environmentally friendly cars. They will give them this money in advance and the Big 3 will slowly pay back this amount into this pool of funds. Makes complete sense to me. That way, we're not creating extra debt.
Speaking of politics, Bernanke has not been very popular recently. His abrupt change of the use of TARP surprised many, leaving them to wonder what exactly they voted for. His annoucement that he doesn't plan to use the rest of the $350 bn of TARP until Obama's administration comes on board, making one question whether he's given up already. Claiming twice in the last week that the government's efforts have succeeded in stabilizing the financial system does not make it true- especially given the crazy market movement this week.
Another major factor contributing to the drop this week is the Fed slashing its outlook for the economy through 2009. They lowered the 2008 GDP forecast from 1-1.6% to 0-1.3% and forecasts that the economy could shrink by 0.2% in 2009. They also raised their unemployment projections sharply higher to 6.3% to 6.5% for 2008 and 7.1%-7.6% for 2009. In addition, the consumer price index also fell by 1% in October, the biggest drop since 1947, suggesting deflation. Many expect this recession would last longer than the middle of 2009. This is gloomy enough news to send anyone running.
Even Berkshire Hathaway was not immune to this market turbulence. On Wednesday, Berkshire plunged over 12%, its worst day since 1987's market crash. They've been getting a lot of bad press lately, with declining earnings in their insurance operations and stocks. They had 9 straight days of decline after they published their third quarter earnings report. Goldman Sachs and General Electric, Buffet's most recent purchases, also went below the price he got them for. Some suggested that he needed a new crystal ball. But on Friday, it Berkshire bounced by 16%, to $90,000. This week, Berkshire also got over $1 bn for its shares in Anheuser-Busch, a brewer, as the acquisition of it by InBev was formally completed. Buffet says he's not worried. Incidentally, Berkshire also significantly boosted its shares in ConocoPhillips this quarter, indicating that he's bull on oil.
On Friday Obama finally decided on the next Treasury Secretary- Timothy Geithner, the current president of the NY Fed Reserves. This appointment was welcoming news to Wall Street as it rallied back up into the 8000 levels. I'm not going to go into his history but he's had a LOT of experience and is widely seen as a good candidate for the job.
Overseas, Iceland finally got a $10.2 bn loan on Thursday, from the IMF, Dutch, British and the Nordic countries. And did you know that we still had pirates in this day and age? Earlier this week, it captured the Sirius Star, which has an oil cargo of about $100 mn worth. Apparently piracy is still very prevalent these days, there has been a record of 199 since the beginning of the year- most prominently in the Gulf of Aden near Somalia. On Thursday, an Indian navy warship sank a Somali pirate vessel. It's like the Pirates of the Caribbean in modern times!
The week started off with Pandit's speech at Citi, announcing their plan to cut 52,000 jobs (yike!) and cut expenses by 20%. Citi's share began falling as investors worry that these measures will not be able to revive Citi from its current situation- they lost $20.3 bn in the last year and some don't expect it to be profitable in 2009 as they worry about Citi's exposure to credit card/mortgage losses and toxic debt. On Thursday, Prince Alwaleed of Saudi Arabia announced that he was boosting his shares in Citi from 4% to 5%. That didn't give other investors much confidence (not everyone's Buffet), as Citi shares broke the $5 point that day (a 13 year low). This is a very dangerous level to be at, because many institutional investors are not allowed to own shares below $5 and this could trigger a wave of selling before year end. On Friday Pandit assured employees that he would like to keep the company together and does not wish to spin off its Smith and Barney brokerage unit (their crown jewel I guess?). Still, there are rumors of them finding a merger partner or raising capital in the future. Citi is also pressing members of Congress to put back the ban on short selling, as they claim that it is hurting their stock price. Citi's stock price ended $3.77 on Friday, down from $20 a month ago and $30 a year ago!
Following the lead of Golman and UBS, other Wall Street banks are being pressured to foregoe execute bonus this year. JP Morgan also announced that they will be cutting 10% of their workforce.
The other big driver this week was the auto industry. Discussions started looking bleak on Wednesday (and thus the huge drop on concerns of an even deeper recession if the auto industry collapses), as Congress members continue to bicker with the Big 3. I'm not too sure about the details (cars just don't interest me that much), but it sounds like they're concerned about whether taxpayer's money is going to waste since the auto industry was already not competitive before the this financial crisis and they want to see a sound plan to change them into healthier companies before they come to their aid. I believe the catch phrase of the week is, "You show us the plan, and we'll show you the money." Makes sense to me. They will be meeting again in December for the Big 3 to prove to American that they are worth saving. Oh and they seemed to have came up with a good source of where the $25 bn will come from too. Instead of from TARP, it will come from the money already approved in July to help make more environmentally friendly cars. They will give them this money in advance and the Big 3 will slowly pay back this amount into this pool of funds. Makes complete sense to me. That way, we're not creating extra debt.
Speaking of politics, Bernanke has not been very popular recently. His abrupt change of the use of TARP surprised many, leaving them to wonder what exactly they voted for. His annoucement that he doesn't plan to use the rest of the $350 bn of TARP until Obama's administration comes on board, making one question whether he's given up already. Claiming twice in the last week that the government's efforts have succeeded in stabilizing the financial system does not make it true- especially given the crazy market movement this week.
Another major factor contributing to the drop this week is the Fed slashing its outlook for the economy through 2009. They lowered the 2008 GDP forecast from 1-1.6% to 0-1.3% and forecasts that the economy could shrink by 0.2% in 2009. They also raised their unemployment projections sharply higher to 6.3% to 6.5% for 2008 and 7.1%-7.6% for 2009. In addition, the consumer price index also fell by 1% in October, the biggest drop since 1947, suggesting deflation. Many expect this recession would last longer than the middle of 2009. This is gloomy enough news to send anyone running.
Even Berkshire Hathaway was not immune to this market turbulence. On Wednesday, Berkshire plunged over 12%, its worst day since 1987's market crash. They've been getting a lot of bad press lately, with declining earnings in their insurance operations and stocks. They had 9 straight days of decline after they published their third quarter earnings report. Goldman Sachs and General Electric, Buffet's most recent purchases, also went below the price he got them for. Some suggested that he needed a new crystal ball. But on Friday, it Berkshire bounced by 16%, to $90,000. This week, Berkshire also got over $1 bn for its shares in Anheuser-Busch, a brewer, as the acquisition of it by InBev was formally completed. Buffet says he's not worried. Incidentally, Berkshire also significantly boosted its shares in ConocoPhillips this quarter, indicating that he's bull on oil.
On Friday Obama finally decided on the next Treasury Secretary- Timothy Geithner, the current president of the NY Fed Reserves. This appointment was welcoming news to Wall Street as it rallied back up into the 8000 levels. I'm not going to go into his history but he's had a LOT of experience and is widely seen as a good candidate for the job.
Overseas, Iceland finally got a $10.2 bn loan on Thursday, from the IMF, Dutch, British and the Nordic countries. And did you know that we still had pirates in this day and age? Earlier this week, it captured the Sirius Star, which has an oil cargo of about $100 mn worth. Apparently piracy is still very prevalent these days, there has been a record of 199 since the beginning of the year- most prominently in the Gulf of Aden near Somalia. On Thursday, an Indian navy warship sank a Somali pirate vessel. It's like the Pirates of the Caribbean in modern times!
This week was actually quite eventful.
It started off with China announcing a $600 billion fiscal stimulus plan effective from now until 2010, to be spent on infrastructure and social projects. Even this Asia powerhouse is not imperious to the global economic downturn, they are expecting growth to slow down to 8-9% as opposed to the double digit growth in the last 5 years. On the plus side, at least they're able to and are doing something to increase the liquidity in their economy.
Over in Europe, things are not so positive. Latvia a small European country, part of the former Soviet Union, just took over their second largest bank, Parex, last weekend. Are they going to be the next Iceland?
Back in the US, American Express got approved to become a bank holding company on Tuesday (just like Goldman Sachs and Morgan Stanley). This way, they'll have better access to capital both from deposits AND from the government, which is probably a good move since consumer loans is expected to hit next and Amex has a LOT of business in that (obviously).
The latest bank in the spotlight is Citigroup. The good news is that on Tuesday, they joint the ranks of Bank of America and JP Morgan to refinance mortgages to help people stay in their homes. The bad news is that Citigroup will be laying off 10% of their workforce (which may add up to 40,000 layoffs!) and doing some serious cost cutting. People are also not very happy with their (relatively) new CEO Vikram Pandit. He lost the Wachovia deal to Wells Fargo and the share price has gone down from $50 last year to $9 on Friday. The board is now questioning whether he's up for the job after all (granted it really wasn't his fault that Citi is in such deep trouble, he was just called in to fix Chuck Prince's mess). He is expected to be making a huge speech about all this on Monday.
On Wednesday, Paulson announced that they were changing their strategy for the use of the $700bn bailout- now known as the Troubled Asset Relief Program (TARP) funds. Instead of buying up bad mortgage debt, they are now going to use the remainder of the funds to directly inject capital into financial institutions. They realized that given the current situation, the original plan was becoming cumbersome and it was just easier and more efficient this way to directly inject capital in order to stabilize the financial system and get lending going, which right now they seem to have achieved (temporarily anyway). But then the question becomes, at which point do they stop giving capital injections to anyone who asks?
This question is especially interesting with the current fiasco in the auto industry. The big 3 are now desperately lobbying for a $25 billion financial aid package to save them from filing for chapter 7 bankruptcy, which means liquidation and going out of business. This would potentially indirectly lead to millions of job losses, due to its huge supply chain. Obama and the democrats are all for it, but some of the Republicans are more reluctant. I can actually see where they are coming from. Bailing out the banking industry is one thing, since banks are a huge part of our economy and will still be around in 50 years time. The auto industry on the other hand, is a dying industry. American cars are simply not globally competitive enough to survive on the long term. They are not as luxurious as European cars, they are not as cheap as Chinese cars and they are not as endurable and gimmicky as Japanese cars. They would slowly go out of business anyway. The current economic situation is just speeding up the process. I'd invest in a Chanel flap bag because I know that it will still be elegant and classic 20 years down the road, but I wouldn't spend the same amount of money on a Coach bag, even if it is limited edition and super luxed up. But I guess the $25 billion will buy us more time to "prepare", so it doesn't add to oil to the current fire. They are also quibbling about where this money should be coming from. The Democrats want it to come out of the TARP money (which makes sense, especially given the "new" strategy) and Bush wants to widen the budget deficit. I believe they're hoping to approve the package this week in the lame-duck session (if anyone is interested in why it is called the lame-duck session, as I was, check it out here).
The G20 also had a meeting on Saturday to discuss the world economy. There weren't any specific guidelines, but they agreed to join their efforts to achieve common objectives, like to improve the regulations and functioning of the financial markets. It's a start. And the power of 20 is definitely more powerful than that of one.
It started off with China announcing a $600 billion fiscal stimulus plan effective from now until 2010, to be spent on infrastructure and social projects. Even this Asia powerhouse is not imperious to the global economic downturn, they are expecting growth to slow down to 8-9% as opposed to the double digit growth in the last 5 years. On the plus side, at least they're able to and are doing something to increase the liquidity in their economy.
Over in Europe, things are not so positive. Latvia a small European country, part of the former Soviet Union, just took over their second largest bank, Parex, last weekend. Are they going to be the next Iceland?
Back in the US, American Express got approved to become a bank holding company on Tuesday (just like Goldman Sachs and Morgan Stanley). This way, they'll have better access to capital both from deposits AND from the government, which is probably a good move since consumer loans is expected to hit next and Amex has a LOT of business in that (obviously).
The latest bank in the spotlight is Citigroup. The good news is that on Tuesday, they joint the ranks of Bank of America and JP Morgan to refinance mortgages to help people stay in their homes. The bad news is that Citigroup will be laying off 10% of their workforce (which may add up to 40,000 layoffs!) and doing some serious cost cutting. People are also not very happy with their (relatively) new CEO Vikram Pandit. He lost the Wachovia deal to Wells Fargo and the share price has gone down from $50 last year to $9 on Friday. The board is now questioning whether he's up for the job after all (granted it really wasn't his fault that Citi is in such deep trouble, he was just called in to fix Chuck Prince's mess). He is expected to be making a huge speech about all this on Monday.
On Wednesday, Paulson announced that they were changing their strategy for the use of the $700bn bailout- now known as the Troubled Asset Relief Program (TARP) funds. Instead of buying up bad mortgage debt, they are now going to use the remainder of the funds to directly inject capital into financial institutions. They realized that given the current situation, the original plan was becoming cumbersome and it was just easier and more efficient this way to directly inject capital in order to stabilize the financial system and get lending going, which right now they seem to have achieved (temporarily anyway). But then the question becomes, at which point do they stop giving capital injections to anyone who asks?
This question is especially interesting with the current fiasco in the auto industry. The big 3 are now desperately lobbying for a $25 billion financial aid package to save them from filing for chapter 7 bankruptcy, which means liquidation and going out of business. This would potentially indirectly lead to millions of job losses, due to its huge supply chain. Obama and the democrats are all for it, but some of the Republicans are more reluctant. I can actually see where they are coming from. Bailing out the banking industry is one thing, since banks are a huge part of our economy and will still be around in 50 years time. The auto industry on the other hand, is a dying industry. American cars are simply not globally competitive enough to survive on the long term. They are not as luxurious as European cars, they are not as cheap as Chinese cars and they are not as endurable and gimmicky as Japanese cars. They would slowly go out of business anyway. The current economic situation is just speeding up the process. I'd invest in a Chanel flap bag because I know that it will still be elegant and classic 20 years down the road, but I wouldn't spend the same amount of money on a Coach bag, even if it is limited edition and super luxed up. But I guess the $25 billion will buy us more time to "prepare", so it doesn't add to oil to the current fire. They are also quibbling about where this money should be coming from. The Democrats want it to come out of the TARP money (which makes sense, especially given the "new" strategy) and Bush wants to widen the budget deficit. I believe they're hoping to approve the package this week in the lame-duck session (if anyone is interested in why it is called the lame-duck session, as I was, check it out here).
The G20 also had a meeting on Saturday to discuss the world economy. There weren't any specific guidelines, but they agreed to join their efforts to achieve common objectives, like to improve the regulations and functioning of the financial markets. It's a start. And the power of 20 is definitely more powerful than that of one.
Remember this absolutely darling gray and yellow block dress from this summer?
Well the makers of it, MINT Jodi Arnold, are having an online sample sale taking 60% off more genius pieces from today until the end of November. Frankly, we get a lot of emails about these online sample sales etc and we usually whiz pass them, just because there are so many and because they're not always designs that we endorse. But MINT caught my eye (because it reminded me of the block dress above) and I spent a bit more time looking into it and I LOVE the collection.
Especially these two dresses which are absolutely refreshing, youthful AND flattering to wear too. They are just so different from the dresses on the racks in stores, one is artsy, pop and cool (left), while the other is feminine and romantic (right).
Then they have more usual designs with a twist. I am loving the asymmetrical shoulder of the gray dress, this model does not do the dress justice. And this sequins dress is very reminiscent of the FCUK dress from last year, but the neckline jazzes it up.
The silhouette of this strapless dress with the folds at the bodice is just darling. The thin gold belt also brings a bit of the holiday spirit to it. And I just love the details on the collar of this coat!
So if anyone is interested. From now until the end of the month is a good time.
Image Source: Mint
Well the makers of it, MINT Jodi Arnold, are having an online sample sale taking 60% off more genius pieces from today until the end of November. Frankly, we get a lot of emails about these online sample sales etc and we usually whiz pass them, just because there are so many and because they're not always designs that we endorse. But MINT caught my eye (because it reminded me of the block dress above) and I spent a bit more time looking into it and I LOVE the collection.
Especially these two dresses which are absolutely refreshing, youthful AND flattering to wear too. They are just so different from the dresses on the racks in stores, one is artsy, pop and cool (left), while the other is feminine and romantic (right).
Then they have more usual designs with a twist. I am loving the asymmetrical shoulder of the gray dress, this model does not do the dress justice. And this sequins dress is very reminiscent of the FCUK dress from last year, but the neckline jazzes it up.
The silhouette of this strapless dress with the folds at the bodice is just darling. The thin gold belt also brings a bit of the holiday spirit to it. And I just love the details on the collar of this coat!So if anyone is interested. From now until the end of the month is a good time.
Image Source: Mint
It was another turbulent week in the markets.
It started off with a rally as election day approached and everyone was filled with hope for change. On Tuesday, America finally voted for our next president- President Barack Obama. Even though the result seemed obvious in the last few weeks, it was still a very exciting day here in Chicago. Everyone in the streets were hyped, retailers like Starbucks and Ben & Jerry's were giving out free coffee and ice cream, roads around Grant Park were closed for the rally, the over all atmosphere was just very exhilarating! Unfortunately I wasn't one of the lucky few to get tickets to Grant Park, but I actually thought that both Obama's victory and Mcain's concession speech were really well done. Mcain's speech was very touching and gracious (though whoever dressed him with an ugly yellow tie should be shot), while Obama's speech was very inspiring- yes we can!
The next day after this pleasent distraction though, the market turned its attention back to the economy and it went downhill from there.
The outlook is pretty pessimistic. Bonuses are slashed (ironically Bear and Lehman survivors are actually getting better deals from their retention package than their counterparts in other firms like Goldman). The next domino to fall seems to be consumer loans, such as credit card and auto loans. Predictions of when this will all be over just keeps getting postponed. Last week, it was middle of 2009. Now we're hearing beginning of 2010!!
Obama is already looking into all this at a meeting of the transition economic advisory board, which included a high-powered collection of business, academic and government leaders, such as Buffet, who called into Chicago from Obama- just like Charlie in Charlie's Angels! His priorities are to get a second stimulus package out asap (maybe even before Christmas!) and saving the auto industry.
All this talk about presidency and campaigning just reminded me that I've forgotten to watch Brothers and Sisters this season. Better go catch up!
It started off with a rally as election day approached and everyone was filled with hope for change. On Tuesday, America finally voted for our next president- President Barack Obama. Even though the result seemed obvious in the last few weeks, it was still a very exciting day here in Chicago. Everyone in the streets were hyped, retailers like Starbucks and Ben & Jerry's were giving out free coffee and ice cream, roads around Grant Park were closed for the rally, the over all atmosphere was just very exhilarating! Unfortunately I wasn't one of the lucky few to get tickets to Grant Park, but I actually thought that both Obama's victory and Mcain's concession speech were really well done. Mcain's speech was very touching and gracious (though whoever dressed him with an ugly yellow tie should be shot), while Obama's speech was very inspiring- yes we can!
The next day after this pleasent distraction though, the market turned its attention back to the economy and it went downhill from there.
- Retail chains posted the worst monthly sales data in more than 3 decades! Retailers are closing stores. Circuit City for instance is closing 155 US stores. Jewelers were also hit especially hard. Many, such as Whitehall and Friedmans, are being forced to hold liquidation sales, which in turn is creating temoporary price competition for its healthy peers
- As sales drop, so did unemployment. The job report this week showed that in October, 240,000 jobs were lost, taking the unemployment rate up to 6.5% from 6.1% in September, hitting all sectors. Companies such as GS, Circuit City, Mattel, Time Warner, Yahoo, Ford and GM have or are planning to cut back their workforces
- GM in particular posted worst than expected earnings and have called off their merger deal with Chrysler in order to focus on its own financial health. Chrysler is now in talks with Hyundai. The auto industry as a whole is not doing well in this economy (except Porsche, which posted a 46% rise in pretax profit) and the big three (GM, Ford and Chrysler) have approached the government for a $50 billion aid. The auto industry is in fact one of Obama's top priorities to save/ I guess since it takes up 3% of overall GDP it will have immense effects both directly and indirectly on the economy, and not just affect Detroit
The outlook is pretty pessimistic. Bonuses are slashed (ironically Bear and Lehman survivors are actually getting better deals from their retention package than their counterparts in other firms like Goldman). The next domino to fall seems to be consumer loans, such as credit card and auto loans. Predictions of when this will all be over just keeps getting postponed. Last week, it was middle of 2009. Now we're hearing beginning of 2010!!
Obama is already looking into all this at a meeting of the transition economic advisory board, which included a high-powered collection of business, academic and government leaders, such as Buffet, who called into Chicago from Obama- just like Charlie in Charlie's Angels! His priorities are to get a second stimulus package out asap (maybe even before Christmas!) and saving the auto industry.
All this talk about presidency and campaigning just reminded me that I've forgotten to watch Brothers and Sisters this season. Better go catch up!
Standing five feet eight inches, I'm not that tall. But slap on a pair of 4 inch heels and I will tower over you, which is actually a great feeling; that is until my knees fail, my feet fumble, and suddenly it's impossible to find the ground beneath me. Even with the training of classical ballet in my back pocket, balance (or shall we say off-balance) always gets the best of me.
And just a little something for you to lust after…
However, in all seriousness, adding heels tends to make you feel empowered. Your posture will be better, because that’s the only way you can walk in them, that leads to your head being held higher and ultimately you’ll be walking the streets flooding them with your confidence. This can then result in feeling a rush of greatness, which is the most important part.
I believe in always looking put-together, and neat and tidy when leaving the house. And a good pair of heels (or kitten heels, or flats, or boots), styled properly, can really make an outfit.
I believe in always looking put-together, and neat and tidy when leaving the house. And a good pair of heels (or kitten heels, or flats, or boots), styled properly, can really make an outfit.
And just a little something for you to lust after…
My great obsession with Giambattista Valli is only increased with this pair of beautiful red shoes. And look at that beautiful shattered crystal heel detail, Versace.
A tad dramatic, but nonetheless, platforms are amazing. Gucci, Louis Vuitton & Marni
Christian Louboutin does no wrong [ever] at Rodarte.
Lacroix, oh Lacroix, tout ce que vous créez est beau. I have a strange affinity to those white sandals by Emilio Pucci. And do you SEE what I mean when I said I don't know what I've been doing NOT looking at Celine?
A good pair of heels always make a woman look powerful, strong, elegant and sexy. So don't worry about being "too tall." Enjoy your new found height - or as long as your feet will allow it.
Image Source: Style.com
Image Source: Style.com
It was a good week for the markets this week. The DOW went up 11.3% for the week- the biggest one-week gain since October 1987 (also the time of the last market crash) and it was generally very positive globally too.
It's actually kind of strange seeing as there wasn't exactly any positive news coming out this week. The GDP data came out and we are officially in a recession with an annual GDP decline of 0.3% in the third quarter. It is expected to continue until at least the first quarter of next year. The consumer confidence index is at an all time low, since they started tracking it in 1967. It fell from 61.4 to 38 in a month- the third steepest drop. Companies continue to report declining earnings. The only highlight is that as a result there are some amazing sales out there. Saks is already taking EXTRA 40% off already reduced items- I got something at 70% off today! If only I had the capital to fully utilize the opportunity. Maybe the market is just so used to all this stuff by now that it has already been factored in and now everyone is just looking for a bargain.
One piece of good news was the Fed cutting its rate again this month by another 0.5% to 1%. Experts were not expecting it to help much, but since the market reacted very positively, I guess they were wrong. The rates are expected to hold from now- or so I hope. They've got to save something in case of an even rainier day- or month! Another factor contributing to the positive market may be because some of the government actions are finally taking effect. The commercial paper lending program started this week, and I heard it's doing quite well. There are signs that the credit market is finally thawing. JP Morgan also announced that they are halting home foreclosures for 90 days and modifying loan terms to help those living in the home and show a "willingness" to pay, which is very nice of them.
Then there is the upcoming elections next week. Historically, regardless of who wins, there will be a rally in the market as investors are more "sure" of the future. From the looks of it, Obama seems like he is half way into White House. Personally I'm not very up to date with the intricacies of politics, so I don't know what the winning of either will mean for the economy. But for those of you who are not sure to which camp you belong to, I did stumble upon an interesting quiz on ABC, where they sum up each candidate's views on certain issues. I am surprisingly more of a Republican than I thought- I got 6 to 7 for Obama. Close call! I guess you have to be a little Republican to be a capitalist.
Employment data will also be coming out next week, where more unemployment is expected. And in the coming weeks, we can also be expecting news of a $600 billion bailout for troubled home loans (which sounds a bit repetitive of what JP Morgan is already doing) and another stimulus package worth $300 billion (tax cuts!). The government is seriously on a serial spending spree!
It's actually kind of strange seeing as there wasn't exactly any positive news coming out this week. The GDP data came out and we are officially in a recession with an annual GDP decline of 0.3% in the third quarter. It is expected to continue until at least the first quarter of next year. The consumer confidence index is at an all time low, since they started tracking it in 1967. It fell from 61.4 to 38 in a month- the third steepest drop. Companies continue to report declining earnings. The only highlight is that as a result there are some amazing sales out there. Saks is already taking EXTRA 40% off already reduced items- I got something at 70% off today! If only I had the capital to fully utilize the opportunity. Maybe the market is just so used to all this stuff by now that it has already been factored in and now everyone is just looking for a bargain.
One piece of good news was the Fed cutting its rate again this month by another 0.5% to 1%. Experts were not expecting it to help much, but since the market reacted very positively, I guess they were wrong. The rates are expected to hold from now- or so I hope. They've got to save something in case of an even rainier day- or month! Another factor contributing to the positive market may be because some of the government actions are finally taking effect. The commercial paper lending program started this week, and I heard it's doing quite well. There are signs that the credit market is finally thawing. JP Morgan also announced that they are halting home foreclosures for 90 days and modifying loan terms to help those living in the home and show a "willingness" to pay, which is very nice of them.
Then there is the upcoming elections next week. Historically, regardless of who wins, there will be a rally in the market as investors are more "sure" of the future. From the looks of it, Obama seems like he is half way into White House. Personally I'm not very up to date with the intricacies of politics, so I don't know what the winning of either will mean for the economy. But for those of you who are not sure to which camp you belong to, I did stumble upon an interesting quiz on ABC, where they sum up each candidate's views on certain issues. I am surprisingly more of a Republican than I thought- I got 6 to 7 for Obama. Close call! I guess you have to be a little Republican to be a capitalist.
Employment data will also be coming out next week, where more unemployment is expected. And in the coming weeks, we can also be expecting news of a $600 billion bailout for troubled home loans (which sounds a bit repetitive of what JP Morgan is already doing) and another stimulus package worth $300 billion (tax cuts!). The government is seriously on a serial spending spree!
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