There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:
- On Monday, the Dow Jones Industrial Average dropped by 127 points./li>
- On Tuesday, the Dow Jones Industrial Average rose by 151 points./li>
- On Wednesday, the Dow Jones Industrial Average plunged 427 points./li>
- On Thursday, the Dow Jones Industrial Average tumbled 445 points./li>
- On Friday, the Dow Jones Industrial Average rebounded 494 points and closed the week at 8046.? Bank of America projected that the worst is still ahead for the U.S. economy. The bank also projected that the credit card industry would suffer its largest losses ever./li>
- Southwest Airlines purchased 14 landing slots at LaGuardia Airport in New York./li>
- Home construction has fallen to a 49 year low./li>
- Citigroup is reportedly evaluating options of selling off various pieces of its business as well as placing the firm up for sale. /li>
- GMAC has filed for status as a bank holding company./li>
- Funds to pay unemployment benefits were down in 32 states as of September 30, 2008./li>
- There are approximately 18.6 million homes sitting vacant in the U.S./li>
- China recently initiated a $586 billion stimulus plan./li>
- The head of the Federal Reserve’s Chicago office predicted that weakness in the U.S. economy will last well into next year./li>
- Many credit card issuers are increasing the interest rates they charge on outstanding balances and the penalty fees they charge for late payments./li>
- The price of Goldman Sachs’ stock has dropped more than 75% this year./li>
- The Bank of New York Mellon Corp. announced that it would reduce its work force by 4% or approximately 1,800 employees./li>
- Washington Mutual, which is now owned by J. P. Morgan, plans to eliminate 1,600 jobs./li>
- Three more banks failed on Friday. Two California thrifts were closed and a community bank in Georgia was shuttered./li>
- Hedge fund executive Hugh Hendry predicted that all major U.S. financial companies will end up being nationalized./li>
- The Big Three Automakers request for a bailout was rejected by Congress. The automakers were told to return to the drawing board and revise their business plans before renewing their request to Congress./li>
- Personal bankruptcy filings rose 8% in October./li>
- Jobs are the key. The U.S. economy is unlikely to stabilize until the country reverses the trend in unemployment. Unfortunately, the papers are full of reports of more jobs being cut. The ripple effect of job losses almost inevitably leads to more job losses./li>
- Many charities and nonprofits are suffering. Not only are contributions down, but many are facing adverse impacts from the turbulence in the credit markets./li>
- The Atlanta Journal speculated that “Citigroup at brink of failure.”/li>
Page Perry’s Market Monitor is published periodically to give investors an overview of certain recent developments impacting the economy and/or the investment markets.