All entries by Jason Simpkins
Iceland Gets $11 Billion Bailout
Nov 21st, 2008 | By Jason Simpkins | Category: Financial NewsIceland today (Thursday) secured nearly $11 billion in loans from the International Monetary Fund (IMF) and other nations. The bailout will help the island nation stabilize its currency and recapitalize its banks, but it will also saddle its tiny population with a huge debt burden.
Congress Debates Another Bailout, GM, Ford (F) and Chrysler Chiefs Push for Action
Nov 19th, 2008 | By Jason Simpkins | Category: Financial NewsExecutives from Detroit’s “Big Three” auto companies – General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler LLC – yesterday (Tuesday) joined Congressional Democrats on Capitol Hill to make the case for an industry-wide bailout that could spare their troubled companies from totally collapsing. Detroit’s bigwigs have been met with considerable resistance so far, but will continue to make their case today and into the New Year.
World Bank Triples Lending to Developing Countries
Nov 13th, 2008 | By Jason Simpkins | Category: Financial NewsThe World Bank said yesterday that it plans to triple its lending to developing nations this year in an effort to prevent a “human crisis” that has been brought about by economic turmoil.
Paulson Amends TARP, Reshaping the Bailout
Nov 13th, 2008 | By Jason Simpkins | Category: Financial NewsU.S. Treasury Secretary Henry M. Paulson yesterday (Wednesday) announced a reshaping of the government’s $700 billion Troubled Asset Relief Program. Instead of purchasing troubled assets directly from banks, Paulson said the majority of the funds allotted to the Treasury Department would be used to purchase equity stakes in financial institutions and bolster the consumer credit market.
Possible Third Stimulus on the Way as Unemployment Poses Next Hurdle for the Economy
Nov 12th, 2008 | By Jason Simpkins | Category: Financial NewsWith gross domestic product plummeting and the jobless rate at a 14-year high, U.S. policymakers will have to author at least one more stimulus package in the months to come if they are to elbow aside the impact of high unemployment and depressed consumers.
GM and Ford Burning Cash, Seek Emergency Government Loans
Nov 10th, 2008 | By Jason Simpkins | Category: Financial News, Stock Market InvestingAmerica’s two leading auto manufacturers, Ford Motor Co. (F) and General Motors Corp. (GM), reported heavy third-quarter losses Friday and are under a severe liquidity strain. Both are seeking emergency loans from governments in the United States and Europe.
Job Losses Pile on in October, Expected to Accelerate as Economy Worsens
Nov 6th, 2008 | By Jason Simpkins | Category: Financial NewsJob losses spiked in October according to two key employment reports released yesterday (Wednesday). The rate of unemployment has risen steadily over the past year but job losses expanded in both size and scope in October and will likely continue to accelerate well into 2009, further exacerbating an already potent economic downturn.
European Commission Voices Antitrust Concerns Over BHP’s Bid for Rio Tinto
Nov 5th, 2008 | By Jason Simpkins | Category: Financial NewsBHP Billiton Ltd. (BHP) yesterday (Tuesday) received a formal complaint from the European Commission that detailed antitrust concerns about the mining giant’s proposed buyout of Rio Tinto PLC (RTP). Despite a sharp decline in commodities prices, BHP will likely make every effort to move on with the deal, which could mean selling some of its assets.
Likely EU Recession Paves the Way for Greater ECB Influence
Nov 4th, 2008 | By Jason Simpkins | Category: Financial NewsThe European Commission (EC) said yesterday (Monday) that the Eurozone economy has already slipped into a recession and strong and stable economic growth will not return until 2010. The European Central Bank (ECB), originally charged with the task of maintaining price stability, has now found itself with the added responsibility of encouraging growth and will likely cut interest rates later this week.