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Super Tuesday is Terrible Tuesday for Stock Market
The American public is busy trying to figure out what all these polls mean about who is going to be their partys candidate. Meanwhile, Super Tuesday has turned out to be Terrible Tuesday for the stock market. Todays news that service sector shrank sent stocks in the wrong direction.The volatility that pummeled stocks in January returned with the news that the service sector shrank last month for the first time since March 2003. The report from the Institute for Supply Management wiped out the nascent optimism about the economy that had sent stocks surging higher last week.The report drives a nail into the coffin from investors minds that were in a recession, said Todd Salamone, director of trading at Schaeffers Investment Research. That doesnt mean stock prices in the months ahead will be lower. But when you see headline numbers like this, there tends to be a reactionary sell.The ISM said its index of service sector activity, which accounts for about two-thirds of the economy, dropped below 50, a level that indicates contraction. Economists had expected another month of growth.Its possible the service sector, which includes businesses ranging from restaurants to retailers to banks, could bounce back in February as the manufacturing sector did in January after its December contraction. The benefit of the Federal Reserves two big interest rate cuts in the latter part of January could also help spur the service sector back into growth mode later this year.Marketwatchs entry says the data today is pointing toward a recession.Todays awful numbers:Dow down 370.03 2.93% - biggest one-day point drop for Dow since it dropped 387 points on Aug. 9, 2007.Nasdaq lost 73.28 3.08%Standard and Poors 500 lost 44.18 3.20%Permalink | Recent Headlines | WWFeeds.com

Bernanke Says Some Small Banks May Fail
Federal Reserve Chairman Ben Bernanke said in testimony in front of U.S. Congress today that there could be some bank failures because of the ongoing credit crisis. The AP reports that Bernanke did says that the large U.S. banks will likely recover but it is disturbing to hear he expects some small bank failures.Bernanke, testifying before Congress, said that while the large U.S. banks will likely recover from the recent credit crisis, others could fail.Implying that some banks may fail stirs concerns for any investor whos familiar with financial and economic history, said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. Investors have been very edgy about credit market conditions and banks financial conditions. Very edgy. And this doesnt remove that edginess.Earlier, stocks had fallen in response to a Labor Department report that first-time unemployment claims rose last week by 19,000 to 373,000, the highest level since late January.Scott Wren, equity strategist for A.G. Edwards & Sons, said he still believes theres less than a 50 percent chance of a recession, but that its clear employers are cautious about hiring.To consistently see claims up near 400,000, thats pretty telling often-times of a recession, he said.On the positive side Bernanke doesnt anticipate a return to the stagflation periods of the 1970s - although with gas forecast to exceed $4 a gallon not everyone is convinced. Marketwatch reports that stocks are lower today following Bernankes words and news that last years GDP growth was just 0.6%Permalink | Recent Headlines | WWFeeds.com

Mercantile Bank Corporation Announces First Quarter Provision ... - FOXBusiness
Mercantile Bank Corporation Announces First Quarter Provision ...FOXBusiness - 40 minutes agoGRAND RAPIDS, Mich., Mar 28, 2008 PrimeNewswire via COMTEX -- At a meeting held March 27, 2008, the Board of Directors of Mercantile Bank Corporation Nasdaq:MBWM determined that deteriorating economic conditions and real estate valuations have had ...Mercantile Bank expects 1Q provision BusinessWeekUPDATE 1-Mercantile Bank to post Q1 loss on increased provision ReutersForbes - MLive.com - Trading Markets press release - Business Wire press releaseall 21 news articles

Fremont General says FDIC orders recapitalization of bank and ... - CNNMoney.com
Fremont General says FDIC orders recapitalization of bank and ...CNNMoney.com - 42 minutes agoNEW YORK, Mar. 28, 2008 Thomson Financial delivered by Newstex -- Fremont General NYSE:FMT PR NYSE:FMT Corp. Friday said the Federal Deposit Insurance Corporation issued a supervisory prompt corrective action directive to the company and to its ...Fremont Ordered to Recapitalize Wall Street JournalFremont Ordered by FDIC to Find Buyer; Curbs Imposed Update3 BloombergReuters - FOXBusiness - Housing Wire - 24/7 Wall St.all 20 news articles

Gold Passes $1,000 Mark
Gold traded at a record $1,000 an ounce for the first time today. The news coincides will the recession concerns, the weak dollar and the high price of oil. The BBC reports that since the beginning of 2008 gold has jump 20%. Gold also climbed 32% last year.Since the beginning of the year the value of gold has increased by about 20%, after it rose 32% in 2007.Gold eventually settled for the day at $993.80, up $13.30 an ounce.Analysts say gold will stay high as long as dollar and growth fears remain.Every bit of bad US economic data boosts gold in two ways, said Fortis Bank.First because it reinforces the return of its role as a safe-haven asset, and second because the dollar falls on expectations of further Federal Reserve rate cuts.The price of gold story made all the major newspapers and wire services: Reuters, Guardian, The Independent, Forbes, National Post, USA Today, Financial Times, Wall Street Journal, Telegraph.co.uk, Bloomberg and New York Times to name a few.A 52% climb in just twelve months might mean gold has climbed too quickly notes USA Today columnist John Waggoner here.If youre hankering to buy gold, you may get a chance to buy it more cheaply in the next month or so. Gold bullion has soared 52% over the past 12 months and 19% this year ? and it may have gotten ahead of itself. But if you want to invest for the long run in gold ? which can have a role in a diversified portfolio ? you have three good options: gold bullion coins, gold exchange-traded funds and gold mutual funds.Then again, Waggoners column also mentions that James DiGeorgia - editor of the Gold and Energy Advisor website - says gold could climb to $2,500 an ounce.Permalink | Recent Headlines | WWFeeds.com

Clear Channel says buyout may collapse - Reuters
EarthtimesClear Channel says buyout may collapseReuters - 20 hours agoNEW YORK Reuters - Radio broadcaster Clear Channel Communications Inc said on Friday its pending $20 billion buyout may collapse, as the banks had failed to provide funding for the deal under previously agreed terms.Clear Channel Defers Dividend Wall Street JournalUPDATE:Clear Channel,Buyers Want Suit Kept In Texas State Court CNNMoney.comForbes - Bizjournals.com - Boston Globe - The Associated Pressall 564 news articles

UBS to mark down auction-rate securities - CNNMoney.com
PravdaUBS to mark down auction-rate securitiesCNNMoney.com - 3 hours agoTORONTO Thomson Financial - UBS NYSE:UBS AG said Friday it is cutting the value of auction-rate securities in its brokerage customers' accounts, the first confirmation that problems with the securities have eroded the principal holdings of investors.3 Firms Are Asked for Data on Auction-Rate Shares New York TimesUBS, Merrill, Bank of America Auction Sales Probed Update4 BloombergForbes - Wall Street Journal - Reuters - Boston Heraldall 54 news articles

Greenspan Sees Recession Risk
The BBC reports that former Fed chairman Alan Greenspan - who blasted Bush in his book - has warned that US economic growth has stalled and a quick recovery is not likely.As of right now US economic growth is at zero, he said, adding the longer it stayed this way the greater the risk of a deep recession.Wall Street giants Goldman Sachs and Merrill Lynch have both forecast that the US economy will contract in 2008.The US Federal Reserve has said 2008 growth will be between 1.3% and 2%.The forecast, made last week, was half a percent lower than the Feds previous estimation.The gloomy outlook was blamed on falling house prices, reduced bank lending, turmoil in the financial markets and higher oil prices.If the gloomy outlook isnt enough Greenspan also thinks oil will keep rising and that the housing mark will provide more concern before it gets better.Mr Greenspan also predicted that booming oil prices, which reached a record of more than $101 last week would keep rising and that the US housing market would see more misery before the tide turned.Greenspan isnt alone. Just yesterday there were reports that more analysts have jumped on the recession is likely bandwagon. If we do dip into an actual recession how long will we stay there? Thats the next question that needs answering.Permalink | Recent Headlines | WWFeeds.com

Bank of America to Buy Countrywide
Reuters reports that Bank of America is buying Countrywide for $4 billion.The purchase marks another acquisition for Bank of America Chief Executive Kenneth Lewis, who has spent more than $100 billion since 2004 to create the second-largest U.S. bank and the nations largest consumer bank.It also provides a lifeline for Countrywide, which became a poster child for what critics say were lending excesses that fueled the housing and credit meltdown.The largest U.S. mortgage lender has been convulsed by mounting losses and defaults, a loss of access to credit markets, and a slew of lawsuits and regulatory probes into its lending practices and Chief Executive Angelo Mozilos pay. On Tuesday, it denied rumors that it might go bankrupt.Countrywide has been hit very hard by the housing and credit problems. The deal is a big save for them and their shareholders but there are questions about what it means for Bank of America. SeekingAlpha says Bank of America will lose billions in the deal to acquire Countrywide. The Economist calls BofAs purchase a big gamble. Time will tell but it does sound like a risky acquisition.Permalink | Recent Headlines | WWFeeds.com

Abu Dhabi Invests in Citigroup
The oil rich government of Abu Dhabi has decided to help save Citigroup from its credit woes. The IHT reports that the Abu Dhabi Investment Authority is purchasing a $7.5 billion stake in Citigroup.By agreeing to purchasing a $7.5 billion stake in the faltering banking giant Citigroup, the secretive, government-controlled Abu Dhabi Investment Authority is breaking with tradition.As the largest sovereign wealth fund in the world, with assets estimated at $650 billion, it poured money in the past into low-return, low-profile investments or small emerging market deals, unlike its flashy emirate neighbor, Dubai.But a falling dollar and a growing cash pile are spurring Abu Dhabi to change strategy, according to analysts, economists and deal makers, who said that more big-ticket deals might be ahead.Flush with cash from its oil exports, Abu Dhabi turned to Wall Street, using a complicated transaction late Monday to buy 4.9 percent of Citigroup, acquiring high-yield, convertible stock that must be exchanged for common stock between March 2010 and September 2011.Abu Dhabi will obtain a 4.9 percent stake in Citigroup with the investment. The move comes just after Citigroups shares hit a five-year low.Permalink | Recent Headlines | WWFeeds.com

The Credit Crisis: How We Got Here
Sometimes it is worth tacking a look at how we got into this mess in the first place. Reuters has a great recap in the video below. It began with a US housing problem that has quickly mushroomed into a crisis. In this video, Reuters explains how banks begin to tighten credit when a high percentage of subprime mortgages started to become overdue. The loan problem escalated and subprime lender New Century filed bankruptcy. These losses spread to larger banks that have had to write off billions of dollars of debt. Today, the credit problems have not gone away. Home prices are still dropping and inflation is a serious problem. The weakening economy is starting to impact growth and job creation. There are worldwide concerns that the U.S. will fall into a recession and this recessio nwill drag the global economy down with it.Direct video linkPermalink | Recent Headlines | WWFeeds.com

Lehman to sue over Japan fraud BBC News
Boston GlobeLehman to sue over Japan 'fraud'BBC News - 7 hours agoLehman Brothers, one of America's largest investment banks, plans to sue a Japanese trading house, saying it has been the victim of a complex fraud.Lehman to Sue Japan's Marubeni, Claiming Loan Fraud Update1 BloombergMarubeni employees' scam hit Lehman, others: sources ReutersInternational Herald Tribune - RTT News - BloggingStocks - Canada Eastall 231 news articles

Clear Channel Says Private-Equity Buyout May Collapse (Update3) - Bloomberg
Edmonton JournalClear Channel Says Private-Equity Buyout May Collapse Update3Bloomberg - 56 minutes agoBy Don Jeffrey March 28 Bloomberg -- Clear Channel Communications Inc., the biggest US radio broadcaster, said its sale to private- equity firms may collapse after banks backed out of financing the $19.5 billion deal.Clear Channel fight gets down 'n' dirty CNNMoney.comClear Channel says buyout may not close ReutersWall Street Journal - Bizjournals.com - Forbes - FOXBusinessall 1,429 news articles

Oppenheimer sees dividend cuts at Citi, Wachovia, others - MarketWatch
EarthtimesOppenheimer sees dividend cuts at Citi, Wachovia, othersMarketWatch - 1 hour agoBy Andrew Dowell , , will likely have to announce dividend cuts next month, as shrinking earnings will make it hard to support current payouts, Oppenheimer analyst Meredith Whitney said Friday in a note to clients.RPT-UPDATE 1-Oppenheimer sees dividend cuts at Citi, Wachovia ReutersAhead of the Bell: Bank Dividends CNNMoney.comBloomberg - Forbes - BusinessWeek - Houston Chronicleall 103 news articles

Markets React to Bear Sterns, Weekend Fed Action
JP Morgan Chase has snatched up Bear Sterns in a rapid transaction for a huge discount of $2 a share. JPMorgan Chase & Co. agreed to buy Bear Stearns Cos. for $240 million, about 90 percent less than its value last week, after a run on the company ended 85 years of independence for Wall Streets fifth-largest securities firm.Shareholders of Bear Stearns will get stock in JPMorgan equivalent to about $2 a share, compared with $30 at the close on March 14, the New York-based companies said in a statement late yesterday. The Federal Reserve is providing financial backing to JPMorgan, the second-biggest U.S. bank, and also cut the rate on direct loans to banks in its first emergency weekend action in almost three decades to stave off a broader market panic. The Fed also moved in with a rare weekend move and dropped the emergency lending rate a quarter of a point. President Bush also weighed in predicting a turnaround. President Bush rushed to strike a note of calm to the turbulent situation on Monday morning, hailing the Feds action and saying: Weve taken strong decisive action. The president spoke after meeting at the White House with Treasury Secretary Henry Paulson and other members of his economic team. Were in challenging times, Bush said.Despite all the action to help prevent losses stocks are still in negative territory again today. The Financial Times says investors are waiting for the next domino to fall.Permalink | Recent Headlines | WWFeeds.com