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Majority of economists say that the United States is in a recession for 2008. March 13, 2008

Filed under: 2008,Business,Business News,Economics,Financial News,Recession — allyouneediscourage @ 7:17 pm

The past couple of months have been a roller coaster ride for the U.S. market.  Hedge funds have collapsed, banks are facing massive problems, mortgage meltdowns and the credit crisis are mentioned every day in hundreds of articles.

Lets do a quick rundown of the more notable pieces of news.  Check number 5 and 9 on the list for the articles on recession.

  1. On January 11th, 2008, Bank of America offers to buy Countrywide Financial, a troubled mortgage lender for $4.1 billion in stock. 
  2. On January 22nd, 2008, stock market futures pointed to big plunges.  Sure enough, by the end of that day, the panic selling was through the roof and markets plunged to new lows.
  3. After a short time, the Société Générale trading loss incident was made public.  Apparently, the large drop in equity indices was partially affected by the actions of Jérôme Kerviel, a trader with the company.  He had lost the company approximately $4.9 billion euros.
  4. February 1st, 2008…there was a huge announcement that Microsoft would be offering to buy Yahoo for $44.6 billion, a 62 percent premium on its stock.
  5. Warren Buffett comes out and declares that the US is in a recession.  Many people think he’s wrong….but he’s right because his name is Warren Buffett.  Also, there are opportunities in this kind of market.
  6. On March 11th, 2008, the Fed decides to pump $200 billion into the financial system.  The Dow had lost about 500 points in the past few days and regained ground after this news.
  7. Eliot Spitzer, known as the sheriff on Wall Street resigned on March 12th, 2008 because of his involvement in a prostitution scandal.  Check below for pictures of the woman.
  8. Today, it was reported that gold hit a record $1, 000 an ounce.  It has been on a meteoric rise for months now.  EA also declares a hostile takeover for Take-Two Interactive Software, makers of the popular Grand Theft Auto series and the wildly popular Bioshock.
  9. Finally, the WSJ comes out with an article about a bunch of economists finally admitting recession.  Furthermore, chief financial officers also believe the U.S. is already in a recession.  As said earlier, Warren Buffett sees recession.  Bush however refuses to declare recession.  A bunch of other reporters from various publications such as US News also refuses to believe recession talk.

What I see in all this doomsday talk is plenty of opportunity in beaten down companies.  Recession is not the same thing as the end of the world, but people make it seem like that.  Most importantly, a majority of the financial news everyday should be ignored…especially those that try to feed fear or courage into investors.  I find a lot of the titles hilarious.  “Market plummets on ‘insert arbitrary news item here'”.  “Investors rally on upbeat sentiment from ‘insert arbitrary news item here'”.  “Dollar plunges, oil soars”  “Market erases earlier gains”.  I could go on and on.  If it seems like articles are being rehashed every week, they ARE.

Here are some pictures of the call girl “Kristen”, also known as Ashley Alexandra Dupre that destroyed Eliot Spitzer’s career.  He paid her $4, 300.

Ashley Alexandra Dupre Eliot

Click on thumbnails to enlarge

Ashley Alexandra Dupre   Ashley Alexandra Dupre   Ashley Alexandra Dupre


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