The US economy is likely to be in worse shape a year from now and will require aggressive government spending and intervention to stem the damage, economist Martin Feldstein told CNBC.
If you haven’t been able to tell by now, I like to write. Look no further than my three books for proof. I seek to raise awareness of important issues, always trying to strike themes that investors can act on. I do this from a macro perspective, from the top-down — the subject of my latest book, Investing from the Top Down. Here are my top 10 'Top-Down' investing themes for 2009.
Congressional Republicans said they would work with Democrats to craft a plan to stimulate the economy, but only if GOP ideas are considered for a bill that could cost as much as $1 trillion.
The big questions for the coming year are how long and deep will the recession be and how it will compare to those of the past.
Monday's market is still feeling last week's pain, as lowered earnings outlooks add to the downward pressure from big bank downgrades. And forensic analysts continue to sift through the alleged Bernie Madoff fraud, asking: Can investors get anything back? But CNBC heard from experts who are anticipating an annual Santa Claus rally — and think it's crucial to buy oil stocks and other selected equities now.
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.
The US government could be entering a bottomless pit of bailouts if it starts propping up failing companies outside the financial sector—including the struggling auto industry, economists say.
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.
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.
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.