The stunning collapse of investment banking firm Bear Stearns over the weekend, and it’s fire-sale purchase for pennies on the dollar by JP Morgan Chase has is just the latest bad news rattling investors’ nerves.
Oil, which crossed the $100 / barrel mark less than a month ago, hit another record high of almost $112 / barrel on world markets today. Gasoline prices have followed suit, hitting new highs on a daily basis, with no end in sight. Rising fuel prices prompted United Airlines to raise round trip fares as much as $50 last week.
The Federal Reserve enacted another emergency rate cut over the weekend, with yet another cut of up to 100 basis points expected later this week.
The U.S. dollar continues to weaken, making foreign goods more and more expensive for Americans.
Almost every day, you hear of another major retailer reporting dismal sales figures.
Saying that the U.S. real estate market is in a slump is like saying that the Titanic sprung a minor leak.
The Dow finished last week below 12,000. Overseas markets have dropped sharply today, down between 4% and 5%. Fasten your seat belt when the U.S. markets open today.
Will today come to be known as the St. Patrick’s Day Massacre on Wall Street, or will it simply be another roller coaster ride for investors?
More and more lately, it seems that “no news is good news”.
And yet the Bush administration still can’t bring itself to accept the fact that the U.S. economy is in a recession.