AP Money Minute
Associated Press
Transcript
EP money minute the stock market kened wildly during Wednesday's session ending in negative territory the moves came after the Federal Reserve was joined by central banks around the world in cutting Benchmark interest rates the Dow fell 189 points to 9258 European governments are moving to contain the crisis the British treasury announced it would be investing about $88 billion in exchange for stakes in the country's largest banks and building societies American Shoppers went into hiding in September retail sales reports for the month show consumers were largely sticking to buying Essentials the week reports are renewing worries about the holiday shopping season and the health of the overall economy there's a bit of unexpected good news to The Battered housing market the National Association of Realtors says pending home sales Rose 7.4% from July to August that's the highest rating since June 2007 I'm Mark hamri with ap money minutes
Dow Sinks Despite Worldwide Interest Rate Cuts
Associated Press
Transcript
[Music] the stock market opened Wednesday to Good News the Federal Reserve and several other central banks including those in Europe England and Canada cut interest rates in a coordinated effort to get credit markets moving again we saw a big bounce on that lasted 20 minutes and that was it and then the Market's just there they're still no confidence out there and that's the problem you know we we've never been here before the treasury's never been here before the fed's never been here before the Dow which had already dropped 875 points before Wednesday's open was soon down by another 150 points several analysts say interest rate Cuts alone won't fix the problem lower is better than higher but um it's not going to do as much as it usually would because credit markets have Frozen it's really a question of ability to make loans and willingness to make loans and I think that uh there's you know a lot of fear out there people are you know hey now they're seeing that we're getting this um coordination among all the central banks where they're you know cutting the rates which is all fine and well and good but the damage has already been done basically and I think you know people aren't quite sure where everything's going to settle out the fed's action will reduce costs for people whose home equity and other floating rate loans are tied to the prime rate and at least one Trader thinks the aggressive government moves will eventually get the economy moving again I personally believe that all these rate cuts and this 700 billion plan it's going to work and I think if you're a young family Now's the Time to be buy stock Now's the Time to Begin in the market looking down the road in another ominous sign major US retailers turned into dismal third quarter sales reports consumer spending accounts for more than 2third of the nation's economic activity Matt fredman the Associated Press
Fed, 6 Other World Central Banks Cut Rates
Associated Press
Transcript
It may be the good news investors have been waiting for. This morning, the Federal Reserve announced that they would cut the federal funds rate by half a percent. Now, that's the rate that banks lend to one another. So, it's another attempt by the Federal Reserve to unfreeze those credit markets, which is really ailing the current economy. Investors hope that this will have a positive impact on today's markets because so far it's been a dismal week on Wall Street. In the last five trading days, the Dow Jones has lost 1,400 points alone. Yesterday, the Dow closed down 500. The S&P 500 index fell below the 10,00 mark for the first time in five years. And investors are currently super sensitive to any type of news that comes out, good or bad. And they're worried that any news that does come out doesn't seem to be having a lasting positive impact on the markets. And part of that is because of the international markets. Right now, everyone's watching the Asian and European markets. The Asian markets took a huge hit last night. Japan's Nicay market fell almost 10%. The Indonesian markets had to close altogether because they were fearing a crash. The European markets were tanking but then seemed to rebound after the Fed's announcement and investors hope that the US markets will be able to stay afloat with this announcement today. Investors agree that this is a crucial week to see whether or not the government can step in and heal this economy or whether or not we'll be seeing a longlasting recession in the months ahead. In New York, Bonnie Go, the Associated Press.
Financial Crisis Deepens As Asian Markets Falter
Associated Press
Transcript
in a bold move the british government has announced a plan to partially nationalize some of its largest banks eight banks will be involved the price tag more than 87 billion dollars well look these are extraordinary times you just have to look at what's happening in markets all over the world at the moment we really are going through some pretty turbulent times the british treasury made the announcement before markets opened on wednesday saying this was just an initial step i believe we can look forward to a fairer more equitable and reliable financial system because these are also global problems global action is required this is a long haul and we have invited other european countries to consider proposals we have put to them this morning on medium-term funding are in an active consultation about how we can adopt a european wide funding plan but that did not stop the sell-off across the board stocks were way down in asia in some cases the numbers are simply staggering japan's nikkei fell more than 9 percent the biggest drop in more than two decades stocks in indonesia were down 10 percent and trading in russia was halted after stocks plunged more than 14 percent shortly after the markets opened also down more than 5 percent stocks in australia hong kong taiwan and singapore today's bad news follows another horrible day on wall street the dow jones industrials lost more than 500 points in trading on tuesday because of fears of worldwide economic recession it has now fallen more than 300 points in the past five trading days the president says it will take time for the economy to recover right now we're in tough tough times no question about it but you can't convince me that in the long run that we're not going to get back on our feet again and if anybody ever says that they don't understand the american spirit the president is now reaching out to european leaders to come together for a summit on the economic upheaval world finance leaders will be in washington on friday for a meeting of the world bank and the imf rita foley the associated press
Paulson Says Global Markets Remain Strained
Associated Press
Transcript
we are a strong and a wealthy nation with the resources to address the needs we face i am confident that with the right policy response time and effort we will conquer these challenges as well u.s and global financial markets continue to be severely strained a chain of events caused by the ongoing housing correction has reverberated throughout through u.s banks and financial institutions and has seriously impacted the underlying economy reaching american households and businesses a root cause of this situation is a and a lack of confidence in mortgage assets as well as a lack of confidence in many of the financial institutions that hold these assets because of this widespread uncertainty investors are hesitant to commit capital to financial institutions investor confidence is critical to restore liquidity and enhance the stability of our financial system this financial turmoil is now directly affecting more families and businesses when banks cannot finance at reasonable levels and cannot or are not willing to lend everyone in our economy who depends on credit suffers the capital markets are the pipes through which money flows to finance student loans car loans home loans and small businesses payrolls and inventory and uncertainty and a lack of confidence have clogged our basic financial plumbing while our actions have been aimed at restoring financial markets and institutions our purpose is to prevent financial market difficulties from further impacting businesses and families across the country
Town Hall Debate - Debt and Credit: How would you break t...
C-SPAN
Transcript
remember last summer i said that wall street got drunk a lot of people now look back and think the federal government got drunk and in fact the americans consumers got drunk how would you as president try to break those bad habits of too much debt and too much easy credit specifically across the board for this country not just at the federal level but as a model for the rest of the country as well well i think it starts with washington we've got to show that we've got good habits because if we're running up trillion dollar debts that we're passing on to the next generation then a lot of people are going to think well you know what there's easy money out there it means and i have to again repeat this it means looking at the spending side but also at the revenue side i mean senator mccain has been talking tough about earmarks and that's good but earmarks account for about 18 billion dollars of our budget now when senator mccain is proposing tax cuts that would give the average fortune 500 ceo an additional 700 000 in tax cuts that's not sharing a burden and so part of the problem i think for a lot of people who are listening here tonight is they don't feel as if they are sharing the burden with other folks i mean you know it's tough to ask a teacher who's making 30 or 35 000 a year to tighten her belt when people who are making much more than her are living pretty high on the hog and and that's why i think it's important for the president to set a tone that says all of us are going to contribute all of us are going to make sacrifices and it means that yes we may have to cut some spending although i disagree with senator mccain about an across-the-board freeze that's an example of an unfair burden sharing that's using a hatchet to cut the federal budget i want to use a scalpel so that people who need help are getting help and those of us like myself and senator mccain who don't need help aren't getting them that's how we make sure that everybody is willing to make a few sacrifices senator mccain well you know nailing down senator obama's various tax proposals is like nailing jello to the wall there's been five or six of them and if you wait long enough they'll probably be another one but he wants to raise taxes my friends the last president to raise taxes during tough economic times was herbert hoover any practice protection and protectionism as well which i'm sure we'll get to at some point you know last year up to this time we've lost seven hundred thousand jobs in america the only bright spot is that three hundred over three hundred thousand jobs have been created by small businesses senator obama's secret that you don't is that his tax increases will increase taxes on fifty percent of small business revenue small businesses across america will will have to cut jobs and we'll have their taxes increase and won't be able to hire because of senator obama's tax policies you know he said some time ago he said he would forgo his tax increases if the economy was bad i got some news senator obama the news is bad so let's not raise anybody's taxes my friends and make it be very clear to you i am not in favor of tax cuts for the wealthy i am in favor of leaving the tax rates alone and reducing the tax burden on middle-income americans by doubling your tax exemption for every child from 3 dollars to seven thousand dollars to giving every american a five thousand dollar refundable tax credit and go out and get the health insurance you want rather than mandates and fines for small businesses as senator obama's plan calls for and let's create jobs and let's get our economy going again and let's not raise anybody's taxes uh senator obama we have another question from the internet um can i respond to this briefly look for the guys the right things were established by the two campaigns we worked very hard on this this will address i think the next the tax issue because i think it's very important
Town Hall Debate - Economy: Will the economy get worse be...
C-SPAN
Transcript
prepared for that no I am confident about the American economy uh but we are going to have to have some leadership from Washington that not only sets out much better regulations for the financial system the problem is we still have a archaic 20th century uh regulatory system for 21st century financial markets we're going to have to coordinate with other countries to make sure that whatever actions we take work but most importantly we're going to have to help ordinary families be able to stay in their homes make sure that they can pay their bills deal with critical issues like healthare and energy and we're going to have to change the culture in Washington so that lobbyists and special interests aren't driving the process and your voices aren't being drowned out Senator mcain and all cander do you think the econom is going to get worse before it gets better I think it depends on what we do I think if we act effectively if we stabilize the housing market which I believe we can if we go out and buy up these bad loans so that people can have a new mortgage at the new value of their home I think if we get rid of the cronyism and special interest influence in Washington so we can act more effectively my friend I'd like you to see the letter that a group of senators and I wrote warning exactly of this crisis sen Obama's name was not on that letter the point is the point is that we can fix our economy Americans workers are the best in the world they are the fundamental aspect of America's economy they're the most Innovative they're the best uh they're most at best we're the best exporters we're the best importers they're most effective they are the best workers in the world and we got to give them a chance they got we got to give them a chance to do their best again and they are the innocent bystanders here in what is the biggest financial crisis and challenge of our time we can do it thank you Senator main we're going toh continue over in section f as it turns out uh Senator Obama this is a question from you from Teresa Finch Teresa how can
Bank of China protests
CNN
No transcript available for this clip.
Polish exodus from UK?
CNN
Transcript
It's called economic migration. Migrants travel to a country with one aim and one aim only, to work and make money. But what happens if the economy of that country starts to go downhill, when banks are in trouble, when homes and jobs are lost? It's a question some of the half million or so Polish migrants who've entered Britain since 2004 are asking themselves right now. Anecdotal evidence suggests that an increased number of people started returning probably around a year ago, and we certainly believe that that's likely to have been accelerated in recent months because of the economic downturn. In addition, the Polish zloty has risen sharply against the British pound, and for people who are in Britain to make money, this spells bad news. Some people decided to go back earlier to Poland. They say we're never going to achieve what's planned with the pound so weak. Another group, which is the Polish government, are staying longer than originally planned. The Polish government is taking advantage of the British economic uncertainty and making a bid to get its young people to return home. It's set up a website designed to advertise the increasing number of vacant positions in Poland. A booming private sector and plans for staging events such as the Euro 2012 tournament has boosted employment and salaries, with unemployment rates down to 6.8 percent. That's down from 19.7 percent in the last year. The number of vacant positions in Poland has dropped from 19.7 percent in 2003. But according to some, this is still not enough to create an explosion of migration back to Poland. There are many more jobs in Poland now than there were four years ago, say in industry, factory work, but these jobs pay about 800, 900 zloty a month, and that is not enough to tempt anybody back to Poland. Polls on the street of London agree. I think it's not so bad, but... I don't come in here to get some money. I just come in here to get a new experience. That's why I'm here. So it doesn't matter if the economy is good or not. I stay here because it's good money. London is a good job for Polish people. So while sliding stocks may not necessarily mean the exodus of Poles from Britain, it may certainly mean that the UK is no longer a country of the rich. So while sliding stocks may not necessarily mean the exodus of Poles from Britain, it may certainly mean that the UK is no longer a country of the rich.
Fed Chief Says Financial Crisis Deepening
VOA News
Transcript
Wall Street fluctuated sharply in early trading Tuesday a day after the Dow Jones index fell to its lowest level in four years World Markets posted mixed results some European stocks Rose as much as 2% Tuesday while a key index in Japan plunged 3% speaking in Washington Federal Reserve chairman Ben banki said signs indicate US economic growth is likely to remain subdued for the rest of the year overall the combination of the incoming data and recent Financial developments suggests that the outlook for economic growth has worsened and that the downside risk to growth have increased in light of these developments the Federal Reserve will need to consider whether the current stance of policy remains appropriate analysts say the fed's gloomy assessment opens the door for a possible rate cut when the Central Bank meets again later this month in the meantime the FED has announced plans to buy up massive amounts of short-term debt analysts say the plan to buy commercial paper as they're known should make it easier for companies to obtain short-term loans Financial strategist Howard Welden the solution has to be uh moves to get Banks uh trusting Banks uh liquidity uh not just liquidity from central banks but movement of funds between between Banks despite the federal reserve's efforts to inject confidence into credit markets Wall Street sank further on Tuesday the Dow closed more than 500 points lower Finance worker Charles small blames fear I really think people are reacting emotionally rather than logically uh I think you as FDR said you have nothing to fear but fear itself there used to be irrational exuberance as Greenspan said and now it's gone the other way meanwhile the Bush Administration says it's moving quickly to implement the $700 billion economic rescue plan approved by Congress last week President Bush assured a meeting of small business owners in Virginia that the US Will Survive the latest financial crisis and emerge stronger Millar Sega vaa news
US Financial Crisis Spills Over to World Markets
VOA News
Transcript
the Bell marks the daily close of the New York Stock Exchange its ring Echoes across the globe countries around the world are suffering from the same problem as the US Banks failing and credit drying up in Russia the government will extend loans to Banks hoping to ease the country's liquidity shortage the government is allocating loans to Banks worth a total of 50 billion rues for a period of at least 5 years Russia is also lending money to Iceland to bolster that country's finances on Tuesday Iceland nationalized its second largest bank to relieve customer concerns everything is closed we couldn't sell our stock we couldn't take out of our account in the pank in Germany automobile manufacturer opal closed for 3 weeks as customer demand plummeted what has happened in the USA is about to lead markets worldwide into a recession and recession and selling cars do not get along at all across the Arab world stock markets plunged in Egypt stocks hit a two-year low we did not have any buyer request today everybody is selling at a big loss China's Shanghai Composite Index fell after markets open Tuesday now we are facing a great challenge in overseas demands and it is very hard to raise the domestic demands and investment is being dragged down by the poor performance of the real estate industry but William Klein from the Peterson Institute for international economics says China may eventually emerge from the crisis as an economic leader if China continues to have uh high growth uh and uh all the rest of the world is uh uh in recession then China is going to look even better but it's not clear that that's going to happen China is very dependent on exports uh to the United States economists don't see an end in sight they say consumers will again have to trust Banks and stocks before there's an upswing Carolyn purui vaa news
Bad Economy Bad for Your Health?
Associated Press
Transcript
everywhere you look there's bad economic news and it's causing people lots of stress well uh I'll be working a lot longer than I had planned that's for sure because my 401k took has been taking a hit for the last several months stocks are down everywhere yeah it's going down I mean across the world you know which is quite frightening the credit crunch is bad for business it's a little bit disheartening and it's nerve-wracking and every single day we go to work and wonder if it's going to be the last people are in about their money but then can we really trust the banks there's a sense that the country has been living beyond its means us bankruptcy judge John ninfo sees the end result of this every day debt levels for consumers credit card debt car loans and so forth have just increased exponentially we're living on a mountain of debt he recommends people take this opportunity to study their finances closely and to learn to spend what they make family therapist Kenneth Rouge is also seeing the dramatic effect of this economic crisis marriages are stressed um a lot of anxiety among the bread winner or the person that's watching their money go down Rouge says patients are suddenly showing up with stress related ailments like insomnia back pain migraines he tells his patients to use this opportunity to step back and re-evaluate what's important your family and love connections that happiness and real wealth comes in your relationships not in your stuff Ted shaffrey the associated president New York
Stocks End Lower Amid Swings
Associated Press
Transcript
when we regain confidence and people really feel that we have hit bottom we're we're close I think we're very close to some sort of a bottom it's very tough to time the exact bottom in these bare markets investors analysts pundits all agree we're close to a bottom but where is it did it already happen treasury secretary Henry Paulson says no the turmoil will not end quickly and significant challenges remain ahead the federal government has taken a series of drastic steps to help mend the crippled economy a 700 bill ion doll bailout plan a plan to buy up short-term unsecured loans and just today the Federal Reserve in a concerted effort with other International Banks cut interest rates to help ease the Frozen credit markets but investors remain unconvinced people are you know hey now they're seeing that we're getting this um coordination among all the central banks where they're you know cutting the rates which is all fine and well and good but the damage is already been done basically and I think you know people aren't quite sure where everything's going to settle out investor uncertainty really drove those markets today the Dow Jones Industrial Average went down around 200 but then went into positive territory around 100 points but then when Paulson spoke it all fell apart it was amazing cuz I was looking at the market at 354 we were up 60 points at 356 we were down 100 so it just turned around rapidly you know and that's what happened it was depressing after a rush of trading in the last hour the Dow Jones Industrials closed down 189 points at 9,2 258 while the S&P 500 closed down 11 at 984 and the NASDAQ closed down 14 at 1,740 but amongst the ups and downs Traders on the floor remain optimistic I personally believe that all these rate cuts and this 700 billion plan it's going to work and I think if you're a young family Now's the Time to be buying stock Now's the Time to be getting the market looking down the road although investors may not share the same confidence they hope for it in New York Bonnie go the associate press