On Friday, the auto bailout was announced: General Motors and Chrysler will get up to $17.4 billion in short-term loans from the U.S. in return for deep concessions. Treasury boss Hank Paulson reversed himself, asking for the second half of the TARP fund. Who gets bailed out next — and where does it end? Strategists told CNBC the bailout is going to make things worse; but one airline CEO sees a healthy Darwinian process.
Thursday: U.S. jobless claims eased from a 26-year peak but still showed weakness in the economy. After the Federal Reserve's moves this week, homeowners are scrambling to refinance; the dollar is sliding against the euro. And the second half of the $700 billion TARP bailout fund looks likely to go toward foreclosure relief and economic stimulus. CNBC heard from experts who say crude oil prices are finally correct — and oil, stocks and gold are going to soar.
Now that Fed Chairman Bernanke has answered how low he would take interest rates, he needs to explain what's next.
Some of the bad news Tuesday was "less worse" than many feared: Goldman Sachs reported its first quarterly loss since going public — but the $2.1 billion loss was much narrower than many had feared and Goldman shares rose as much as 11 percent. Stocks soared on the Federal Reserve rate-cut decision and options trading looks bullish on Boeing. CNBC heard from experts who predict a massive OPEC cut and more Fed moves to come.
Below is the statement released by the Federal Open Market Committee after its Dec. 15-16 meeting on interest rate policy:
With the Fed's key rate dropping closer to zero, the central bank is moving into uncharted territory. Still, Fed Chairman Bernanke has made it clear the Fed isn't running out of ammunition yet.
This morning's CPI data is further indication that demand for consumer goods is down as a result of a shift in spending habits due to the credit crunch.
The Consumer Price Index had its biggest one month drop ever. Here is a breakdown of the inflation benchmark to show you where costs are falling most.
When the Federal Reserve policymakers decide on interest rates Tuesday, investors will probably look one step beyond their decision, to gauge how much money will the Fed be willing to print once it is out of rate ammunition.
The Federal Reserve is expected to cut interest rates to close to zero on Tuesday and may point to further unconventional steps to battle a year-old recession.
"We have to sit down and figure what kind of life we have left," says Joan Sinkin, who with her husband, lost their life savings.
Some economists say it's time for Fed Chairman Bernake to just say no to Wall Street and cut interest rates less than the half point that's expected at Tuesday's meeting.
Numbers from the fed today demonstrated the turmoil that swept our ecoomy in the third quarter.
The survival of the U.S. economy depends on helping homeowners, said John Bogle, The Vanguard Group founder and former CEO.
Congressional wrangling over an auto-industry bailout continued to dominate expectations on Thursday, complicated by more downbeat data about initial claims for unemployment benefits. But some analysts interviewed by CNBC found diamonds among the lumps of coal.
Murky signs: Markets had rallied Wednesday morning on the belief that an auto industry bailout was all but certain. But some GOP legislators are opposing the White House deal with congressional Democrats. A top analyst sees financials in critical condition until 2010, but a peer says he's been buying bank stocks and socking them away. And a CNBC guest said commodities are going to lead a 50% S&P rally.
An auto industry bailout package seems inevitable Tuesday — and the dollar and U.S. stocks are riding the expectation higher. The news continued to be glum for small business owners struggling with the recession and retailers, whose holiday sales may be even weaker than expected. But top analysts told CNBC they expect a Christmas-New Year's Eve rally and see an energy stock recovery in the works.
Obama's plan to spend billions on infrastructure appears aimed at helping cash-strapped states as much as the average worker.
President-elect Barack Obama announced over the weekend that his plan to stimulate the nation's lagging economy involves making big investments in infrastructure. CNBC asked the pros to weigh in on the president-elect's proposal.
The White House said Monday it was "very likely" to reach a deal with Congress to aid U.S. auto makers — providing Democratic legislators can offer specific terms. Meanwhile, more glum earnings and job-cut statements came from 3M, MetLife and Dow Chemical. Crunching these concepts together, experts told CNBC that the market is bottoming and the smart money is quietly starting to buy up energy, tech stocks — and airlines.