The last time the stock market was this high, the Great Recession had just started, and stocks were pointed toward a headlong descent. But on Thursday, the Dow Jones industrial average hit its highest mark since December 2007, and the Standard & Poor's 500 index soared to its highest level since January 2008.
J.P. Morgan's announcement of a spectacular trading loss of $2 billion last week gives fuel to regulators who are inclined to slim down or at least stop the growth of such "too-big-to-fail" megabanks in the future, banking analysts say.
It's an oldie but a goodie for our Federal Reserve chairman. In one of his recent lectures at George Washington University (GWU), Ben S. Bernanke made the self-congratulatory assertion that the "forceful policy response" led by the Federal Reserve in 2008 helped avoid a more serious economic downturn.
Much has been made of President Obama's stoking class warfare and demonizing success. Less attention, however, has been paid to the consequences of the president - and his predecessor - taking the sting out of failure.
Beware politicians whose legislation bears a grandiose title. You can be certain their schemes will accomplish the opposite of their purported intent. Such is the case with the Wall Street Reform and Consumer Protection Act signed into law one year ago today. The massive 2,300-page tome - commonly known as Dodd-Frank - promised to fix the financial system, streamline regulation and end bailouts. Like so much of President Obama's legislative achievements, this bill promised much, delivered little and cost a great deal.
The Gnomes of Zurich were derogatory caricatures of secretive, greedy, stiff Swiss-German bankers, pince-nez aquiver, who ruled over the land of secret numbered accounts for tax dodgers the world over. With the world's best financial intelligence service, they knew their stuff and seldom spoke, even in retirement.
The national unemployment rate remains stubbornly high - 9.5 percent in June - and the private sector simply isn't willing yet to make a genuine effort to create jobs. Some contend that to stimulate the economy, the government should spend and borrow more. This argument ignores a central reason for the lack of job creation: policy-induced uncertainty.
Congressional negotiators on Wednesday jettisoned a House amendment that threatened to interfere with the Federal Reserve's anti-inflation efforts while widening the public window for viewing into the Fed's secretive lending and securities market activities.
Nothing frightens a man like bad news about his money. The war in Iraq, health care costs, gay marriage, abortion and tooth decay are all bad, but not as bad as a faltering economy, stupid.
NEW YORK (AP) — Wall Street sank yesterday as oil's surge above $108 a barrel and more worrisome signs for the financial sector led investors to extend last week's losses. The Dow Jones Industrial Average fell more than 150 points, bringing its three-day loss to nearly 515, while broader indexes showed steeper percentage losses.