10 Oct 2008

Posted at 16:42h in The Friday Brief by
News continues worsen in financial markets throughout the world. No economy is free from the carnage with more than $25 trillion erased from global equities in 2008. The Dow Jones Industrials index is now down more than 43% from its record high a year ago. This week represents the worst for the S&P 500 since 1933.

03 Oct 2008

Posted at 15:34h in The Friday Brief by
We began the third quarter with most of the major stock markets in bear market posture, off 20% or more and we continued to decline from there. The Dow Jones Industrials dropped another 4.4% while both the S&P 500 and the Nasdaq fell over 9% more. From top to bottom the Dow lost a maximum of 27% while the S&P and Nasdaq toppled 30%.  It was a quarter of ugly new records as the largest bank in US history failed and the largest US insurance company appealed for government help. Every investment bank on Wall Street is now gone. The nation’s first money market fund the Reserve Primary Fund went below a dollar a share or “broke the buck” when Lehman defaulted on a large chunk of debt owned by the fund. The rates banks charge each other on loans reached record highs bringing those markets to a standstill. In fact, it’s hard to find a market that has not been significantly affected by near and complete freezes in credit flows. And broken record or all broken records, by the end of a three-month ordeal Wall Street finds itself begging for help from a less-than-sympathetic US House of Representatives.

26 Sep 2008

Posted at 15:48h in The Friday Brief by
As yet another bank fails and the stakes get higher, Congress and the White House continue to argue over the best plan for recovery. These are political institutions with some of the best politicians (best at being political) in the world, so it is difficult if not impossible to remove the political aspects of a public debate of this magnitude. And if you take your news and views from television it may be nearly impossible for you separate your emotions from the situation because these pols are so skilled at arousing the passions of those on their side. But if you can suspend your ire from the events of yesterday for a few moments a better understanding of the ideology behind what is going on might be possible.

22 Sep 2008

Posted at 16:43h in The Friday Brief by
Few symbols of America’s culture better explain us as a nation than the home. From the early days when European settlers fled various forms of tyranny to today, the desire to come home to one’s own has motivated us to work harder and perhaps to risk more. As George Bailey‘s father put it in It’s a Wonderful Life when describing their small Building and Loan; “you know, George, I feel that in a small way we are doing something important.  Satisfying a fundamental urge. It's deep in the race for a man to want his own roof and walls and fireplace. And we're helping him get those things in our shabby little office.”