The $700 billion bailout of Wall Street's subprime-tainted securities harkens back to the real- estate bets that sparked the savings and loan crisis in the 1980s. The geography's the same, too.
The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an emergency coordinated bid to ease the economic effects of the financial crisis. The Fed, ECB, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. Separately, China's central bank lowered its key one-year lending rate by 0.27 percentage point.
European leaders continued to clash over measures to ease the financial crisis, Britain announced a three-part multibillion-dollar bailout for its beleaguered banks, and Spain moved to mount a separate rescue of its own banking sector. Prime Minister Gordon Brown depicted the British measures as far more radical than had been forecast and farther reaching than America’s $700 billion bailout.
The Fed said in a statement that it would begin to buy large amounts of short-term debt in an effort to stimulate the credit markets, which have all but dried up.
The European Union’s finance ministers more than doubled the minimum level of guarantees for bank deposits in member countries, to 50,000 euros ($68,000), on Tuesday as they battled to shield the Continent’s banks from turmoil and build a measure of confidence in its battered financial system.
The markets have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets, and that many banks are still having difficulty gaining access to cash.
Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion rescue plan to restore order to the financial industry.
As troubles in financial markets spread around the world, accelerating economic downturns in major economies on three continents, Sweden became the latest European country to offer new protection for bank deposits, after the German government offered blanket guarantees Sunday to all private savings accounts.
A Harvard economist weighs in on the quality of real estate's "troubled assets" that the government is buying. In the housing markets, there are really three Americas. The declining inner cities of the Rust Belt. The expensive markets of the two coasts, like New York and Los Angeles,; and the Third America — the growing areas, like Atlanta, Dallas, Houston and Phoenix.
After seven years of nonstop construction, skyrocketing rents and sales prices, and a seemingly endless appetite for luxury housing that transformed gritty and glamorous neighborhoods alike, the credit crisis and the turmoil on Wall Street are bringing New York’s real estate boom to an end.
Passage of the rescue bill has pushed up long-term Treasury rates, as markets anticipate large sales of new Treasury bonds to raise bailout cash. The stock market has stopped nauseating freefalls twice this week and is rallying well now. These moves also reflect hopes for coordinated global central bank rate cuts over the weekend and a Euro-zone version of our rescue package.
The legislation drew some very vocal criticism in a congressional hearing leading up to the vote. Several legislators who ultimately voted in favor of the bill said that the bill was not the best choice or even a good choice but it was a product of compromise and not acting could prove disastrous.
While year-over-year prices are still up, sale prices on average fell significantly in the third quarter while the number of apartment sales dropped sharply and inventory soared, according to a host of reports released today announcing Manhattan sales results in the third quarter.
The median sales price of a Manhattan apartment was $928,000 in the third quarter, the firm's report said. That was up more than 7 percent from the same period last year but down more than 9 percent from this year's second quarter.
Manhattan apartment sales fell for the third consecutive quarter and inventory rose by a third even as prices continued to extend a five-year streak of gains.
New York's real estate community doesn't just love Mayor Bloomberg. It lurves him. And it's greeting the news of his third-term bid accordingly.
The House of Representatives gave final approval to the $700 billion bailout for the financial system, reversing course to authorize what may be the most expensive government intervention in history.
Even though the national housing market is suffering and jobs on Wall Street are being lost every day, Manhattan real estate prices are higher now than they were a year ago.
Wells Fargo said its offer keeps Wachovia intact and needs no U.S. assistance, unlike Citigroup's offer, which relied on financial backing from the Federal Deposit Insurance Corp.
The announcement came just four days after Citigroup had agreed to buy banking operations of Wachovia for $2.2 billion or about $1 a share. But Wachovia, which is based in Charlotte, N.C., has now apparently rejected that deal in favor of one where the entire company would be acquired.
It’s better than nothing. That’s the less-than-enthusiastic grade being given the government's financial rescue package by private economists — who continue to express doubts about whether the plan will work.
Owner/publisher Seth Lipsky's statement on the Sun web site: "It is my duty to report today that Ira Stoll and I and our partners have concluded that the Sun will cease publication"