Monday: Warren Buffett told CNBC the U.S. economy has "fallen off a cliff." Prof. Nouriel Roubini, who predicted the current crisis, said the U.S. recession could last up to 36 months. But some M&A activity was seen: Dow Chemical and Rohm & Haas announced a deal; and Roche and Genentech are reportedly close to their own agreement. CNBC heard from experts who said steady growth companies are the way to invest now; and that the government rescue plan is going to create the first signs of recovery.
Should we nationalize banks in the U.S.? I find the current debate about whether or not banks should be nationalized, bordering on ridiculous. The truth is, some very large institutions are already nationalized. How do I know this? Easy, fresh baked cookies.
Even as the economy sheds jobs at an alarming rate, there are early signs consumers are over the shock of recession and opening their wallets again. "There's pent up demand," says one economist. "Whether it is long lasting is another story.”
Even as the economy sheds jobs at an alarming rate, there are early signs consumers are getting over the shock of recession and opening their wallets again. "There's pent up demand," says one economist. "Whether it is long lasting is another story.”
The U.S. economy looks "dismal" in the short term but should return to growth by year-end as housing markets finally reach "some sort of equilibrium," said Richmond Federal Reserve Bank President Jeffrey Lacker.
The following is the full text of the Beige Book released by the Federal Reserve on July 23, 2008 and based on information collected on or before February 23, 2009:
As investors grapple with the worst market since 1996, the President says stocks are a good deal.
Tuesday: Fed Chairman Ben Bernanke defended the AIG bailout, saying the alternative would've been a disaster. Treasury Secretary Tom Geithner defended the Obama Administration's plan to buttress and stimulate the U.S. economy. Auto sales plummeted; Citigroup said it'll lower some mortgage payments; and subsidiaries of Warren Buffett's Berkshire Hathaway announced job cuts. CNBC heard from experts who said the U.S. economy is in a depression — but the next move is an upside jump.
Did President Obama's budget break the market's back and push us through key support levels?
Let me be very clear on the economics of President Obama’s State of the Union speech and his budget. He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.
Friday: General Electric (CNBC's parent company) said it'll slash its quarterly dividend 68 percent, saving $9 billion annually. The U.S. agreed to boost its stake in Citigroup to as much as 36 percent. U.S. GDP data was sharply revised downward, with economic loss at 6.2 percent. Experts told CNBC that the market is resisting scary talk from President Obama and Fed Chairman Bernanke — but the recession's end is nowhere in sight.
With the news this bad and uncertainty this high, Joe Terranova is starting to think that maybe the bottom is near.
The budget that President Obama proposed on Thursday is nothing less than an attempt to end a three-decade era of economic policy dominated by the ideas of Ronald Reagan and his supporters, the New York Times reports.
Pledging "a new era of responsibility," President Barack Obama unveiled a multi-trillion-dollar spending plan.
The President has a plan to dissolve the federal deficit within four years. Now it's up to us to plug our own personal deficits.
As President Obama prepared to deliver his budget for fiscal year 2010 on Thursday morning, political insiders discussed the pros and cons.
Wednesday: As the state of financials continues to worry the markets, Fed Chairman Ben Bernanke said the U.S. has no plans to nationalize Citigroup. Wealthy Americans are suing UBS to keep their names secret (as a $31 billion UBS order went wrong) and Congress is considering a housing bill that'd let judges erase mortgage debt. Experts told CNBC that America needs more infrastructure in the stimulus bill — and that there won't be a recovery until housing improves.
U.S. banking regulators announced Wednesday that the "stress test" program on banks with more than $100 billion in assets will be completed by no later than April, CNBC has learned.
Obama spoke of many things in his Financial State of the Union. But the underlying tone was one steeped in one basic theme: accountability. For his administration, for you and me, and for the scoundrel corporate leaders everyone loves to hate nowadays. He said over and over again that the party is over, the fantasy dead. We have to be accountable for our actions.
Tuesday: Fed Chairman Ben Bernanke warned the "severe" U.S. recession may drag into 2010 unless the government succeeds in stabilizing the banking system and financial markets. Debate continues on bank "nationalization," with Bank of America insisting it won't need a bigger U.S. stake; and analysts wondering if Citigroup actually needs the government to pick up more than 40 percent. Experts told CNBC that fears of nationalization are overdone — and we're now entering the epicenter of the recession.