•Money-Market Rates Decline on Bank Bailouts, Government Infusions of Cash
Following this news, Dow began by rising 250 out of the gate but has pulled back to up 136, advancers over decliners 5-2 & while NAZ is up 9. S&P 500 FINANCIALS INDEX dropped fractionally & the Dow Jones REIT index dropped 5 nearing its yearly low. Junk bond funds were mixed to slightly up, those super high yields are attracting a few buyers. However the Alerian MLP index is having a great day, gaining 11 as it continues the rebound from last week. The index started the week with an 11% yield (not to mention higher oil prices) attracting buyers.
Alerian MLP index -- 2 weeks
Oil is having a nice day, helping big oils. Chevron (CVX) & Exxon Mobil (XOM), the 2 Dow stocks, were each up over 2.
| CLX08.NYM | Crude Oil Nov 08 | ....73.80 | .... 1.95 (2.7%) |
China reported that its GDP rose only 9% in Q3, the slowest growth in 5 years, the growth rate has been slipping each quarter for a year. Global slowdown plus effects from the credit mess are being felt even in one of the strongest economies.
China's Economy Grows 9%, Slowest Pace in Five Years
Federal Reserve Chairman Bernanke wants to see more gov spending to help the economy. With the Dems taking over in DC, chances are a big spending package will be passed but that could mean waiting until next year. Plus there will be further delays before money gets into the economy.
•Bernanke Supports Consideration of Additional Stimulus on `Weak' Outlook
This is the heart of earnings seasons, many of the biggest companies will be reporting this week. Now that the chaos on banking business is settling down, earnings should become the market drivers this week as macro economic reports will be light.
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Recently an insurance company nearly wind up....
A bank is nearly bankrupt......filing chapter 11 protection.
How it affect you? Did you buy insurance? Did you buy mini note or bonds?
Who fault?
They bailout trouble finance company, but they will not bail out your credit card bills……the bill out of finance companies is due to all of them interruption with their major operating activities business, the loan business, subsequently, if other industries also interrupt their own operating business and asked for bail out within their sector…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……
The top management of the Public listed company ( belong to "public" ) monthly salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..
Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.
Are you a partisan?
Sign a petition to your favourite president candidate, congress member, House of representative again and ask for their views to not just comment on this, and what regulations they are going to commit and implementation the regulation, I believe should vote for the one who come suggest good implementation and let’s see who back up, which don’t implement after just mentioning in the election campaign.....If you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...
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