October 3, 2008

October 1, 2008

Investors have been watching and waiting for more than a week as Congress tried to hammer out a financial rescue plan for the U.S. banking system and the economy. On Monday the markets were shocked when the bailout plan failed a vote in the House of Representatives. The Dow Jones industrial average lost 500 points in mere minutes as the vote took place and ended up down 777 points. The 777 point drop represented the biggest single-day fall ever outpacing the 684 point drop the first trading day after the September 11, 2008 terrorist attacks.

Citigroup agreed on Monday to purchase Wachovia's banking operations for $2.1 billion. The buyout was arranged by federal regulators, making Wachovia the latest casualty of the widening global financial crisis.

September 24, 2008

As things seem to grow more dire, and housing prices are dropping like a stone, credit is tightening up, job losses are mounting and everyone is bailing from the market, what is billionaire Warren Buffett doing?

Well, Mr. Buffett and his company Berkshire Hathaway (NYSE: BRK) happen to be sinking $5 billion into Goldman Sachs Group, Inc. (NYSE: GS). Says Mr. Buffett, "I am betting on the Congress doing the right thing for the American public and passing this bill,'' Buffett said on cable channel CNBC. "I certainly have a vote of confidence in Goldman and a vote of confidence in Congress.''

September 8, 2008  

Wind and solar energy stocks are on the rise on Wall Street. Oil’s dramatic rise in the first half of 2008 was a wake-up call as to the need and the potential of alternative energy sources. Historically the problem with solar and wind as alternative energy sources was that oil was so cheap it was not cost effective to pump lots of money into alternative energy research and production plants. As the world economies grow accustomed to oil’s triple digit prices, the investment in wind and solar energy research and production becomes more practical. And over time, the increasing efficiency of wind turbines and solar panel technologies also makes those technologies more attractive.