An allegedly long-running pyramiding scheme run by investment strategist Bernard Mardoff has rocked the entire financial and business world. The scheme, popularly called as the Ponzi scheme, has taken the government by surprise and left many investors shocked most particularly those investments affected in the scandal.
This case is really aweful. It is surprising that the government has not detected the scheme, which has been said to have been running since 1999! What has the government been doing? Are the officials sleeping on their jobs? The current financial crisis is already crippling the economy, and the addition of scandals such as this is really unbearable. This could aggravate the the already volatile condition of the financial market. The scandal is a real pain in the neck.
Posted by Jones on December 23rd, 2008 :: Filed under
$$$ CRISIS,
SIMPLY SCANDALOUS
The recent interest rate cut, even at a record-low, seemed to have failed to lift business confidence. Today (December 18), stock trading at the Wall Street fell. The Dow Jones industrial index plunged by 1.12% or 99.80, the Nasdaq stock market index also fell 0.67% or 10.58 and the Standard & Poor’s index dropped 0.97% or 8.76 points. While some economists previously said the interest rate cut would boost business confidence, the outcome so far was the other way, the investors’ confidence seemed still reeling the effects of the financial turmoil.
The question that needs an answer will be, “When will this financial crisis really end?” the crisis has already brought the economy at its heel. It has been going on since december last year. It seems the government is not quick at resolving the crisis, although Pres. George W. Bush was very quick at dodging away at the shoes thrown at him in Iraq.
Posted by Jones on December 22nd, 2008 :: Filed under
$$$ CRISIS,
SIMPLY SCANDALOUS,
STOCK MARKET
A big blow in the automobile industry has happened. Chrysler announced that it will close down its plants in the United States for at least one month beginning on Friday (December 19). The move would certainly affect the 46,000 employees so the auto maker. This would mean they will have no work beginning Friday until January 19 of next year. While the company said the workers will receive payments, through a mixture of government unemployment benefits and company contributions, the amount will be less than the employee’s monthly salary.
Chrysler is usually stopping its production every year, around Dec. 24 to January 5, but this year’s one-month production stoppage is certainly a cause of concern. The company said they have to lenghten the production stoppage to ease the impact of the credit crunch, which affected the auto maker’s sales records and even the performance of the entire automobile industry.
Posted by Jones on December 21st, 2008 :: Filed under
$$$ COMPANIES,
$$$ CRISIS,
SIMPLY SCANDALOUS
The current condition of General Motors, Chrysler and Ford Motors is a cause of concern for the automobile industry. The ailing auto makers are in dire need of help. The so-called Big 3 is currently experiencing internal bleeding due to the slow down in the auto market. The market is shrinking as a result of the current financial crisis that is crippling the economy.
In fact, even its competitors cannot stand the impending collapse of GM. Giant automobile manufacturers such as Toyota Motor, Honda Motors and other auto makers said if the Big 3 will fold down, the automobile industry will be greatly affected. Competition for the already shrinking market will become stiffer as new players will enter the market. The Big 3’s failure will also affect the auto parts suppliers as this will lead to their bankruptcies due to the collapse of their biggest clients, the Big 3.
Posted by Jones on December 20th, 2008 :: Filed under
$$$ COMPANIES,
$$$ CRISIS,
SIMPLY SCANDALOUS
A leading defense contractor said the United States military spending will continue to rise as financial uncertainties and economic crisis continue to shake the nation. Northrop Grumman Corp chief executive Ron Sugar said the economic uncertainties across the globe can bring more threats to the country. The economic turmoil might increase tensions and pressures among and between countries and hence could affect the the US national security. Such kind of threat causes the government to keep its defense expenditures at a high level to ensure national security.
What an excuse! It would be better if those moneys spent on the military be alloted to those who lost their jobs. That way, the nation can be more secured.
Posted by Jones on December 19th, 2008 :: Filed under
$$$ CRISIS,
SIMPLY SCANDALOUS
Economists believe that the current rise in the inflation will definitely reach its point of exhaustion. And when that time comes, deflation will occur – a lowering of the prices of goods and services. Such event will certainly happen in the future. So it would be a nice idea to save money today, perhaps cut off a little bit on spending spending on unnecessary items. An economist opined, “you have to put aside less money today to consume in the future.” When inflation reached its peak and starts to go down, that is the best time to spend the money saved. Thus fixed income indivduals and families should start saving some money now so that in the future, they will have more cash to spend and more items to purchase.
Posted by Jones on December 18th, 2008 :: Filed under
$$$ CRISIS
Wall Street has already been rocked by crisis these days. The financial district has been blamed for the onset of the financial crisis. Wall Street has also been the beneficiary of the recent $700 billion bailout package approved by the federal government, which irked many critics who think that instead of punishing the culprits of the crisis the government has actually saved them with the bailout.
Once again, a shocking news shook the world of financial industry. Former Nasdaq Stock Market chairman and Bernard L. Madoff Investment Securities founder Bernard Madoff has been arrested by government agents for “running a giant Ponzi scheme.” It was alleged that Madoff, who denied the accusations, pays returns to certain investors out of the principle received from the other investors. The long-running pyramid scheme ripped off an estimated $50 billion from the investors. This outrageous news sent shockwaves to economists and investors. Why not? The nation and the world is already in crisis, such kind of news would be certainly appalling.
Posted by Jones on December 17th, 2008 :: Filed under
$$$ CRISIS
News of the Federal Reserve cutting its interest rate is not unusual, especially during these times that the nation is in dire crisis. In the past several months, the Fed already made such moves, cutting its interest rates to unprecedented levels to ease the impact of the crisis by bringing back the confidence of the financial investors and spur consumer spending.
But what is shocking is the news that the Fed is prepared to cut the rates by 0.5%! This is an all-time low. No other central bank in any country has done this – cutting the federal fund rate at such level – before and even at present. The Fed’s recent action shows the seriousness of the situation. However, economists believe the Fed’s plan is a psychological move. An economist commented, “It’s a feel-good thing.”
Posted by Jones on December 16th, 2008 :: Filed under
$$$ CRISIS