Daily Financial Crisis Recap Midday 22.10.08

Stocks decline as the earnings report the fallout from the credit crisis. The Dow is at 8,740.71, a loss of 292.95 which is 3.24%.

United States crude oil futures for December delivery fell $3.22, or 4.5 percent, to $68.96 a barrel.

Bush calls 20 nations for an economic summit on November 15th.

Wachovia reports $23.9 billion in losses for its third quarter. IMF Director is caught in a scandal.

Struggling families in the US are cutting down on medication.

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Daily Financial Crisis Recap End of Day 21.10.08

OPEC member countries are freaking out because of the low oil prices. I’m happy.

Sarkozy proposes nationalized wealth funds to protect key industries from market volatility. Germany hates it alreayd, but Italy is busy passing legislation to enact this. Argentina nationalizes $30 billion in public pensions. Markets promptly responded by going down by 13%.

Canada cuts its key interest rate and signals that more cuts are coming up.

Three large regional banks reported losses.

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Daily Financial Crisis Recap 21.10.08

Stocks rallied yesterday and closed at 9,265.43 but they opened lower this morning. It’s already 115.97. lower than yesterday at 9,149.46. Some companies like Caterpillar, Dupont and Texas Instrument announced low earnings. European stocks gave up gains after France announced an injection of funds into its banks.

US govt urges new bank mergers.

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Fed To Loan A.I.G. 85 Billion

In an incredible move, the Fed reversed its decision from Sunday night and decided to loan the struggling insurer AIG $85 billion. Unless backed by the government, the insurer would have followed Lehman Brother suit into bankruptcy. AIG’s struggle stem from credilt default swaps:

Credit default swaps are a type of credit insurance contract in which one party pays another party to protect it from the risk of default on a particular debt instrument. If that debt instrument (a bond, a bank loan, a mortgage) defaults, the insurer compensates the insured for his loss.