Current Market News:

WASHINGTON (MarketWatch) -- The U.S. economy slowed sharply in the fourth quarter, growing at a 0.6% annual rate, unrevised from last month's estimate, the Commerce Department reported Thursday.
For all of 2007, the economy grew at the weakest pace in five years, rising at an inflation-adjusted 2.2% after a 2.9% gain in 2006.

Stocks Dip on Jobs Data, Bernanke
Thursday February 28, 11:19 am ET
By Madlen Read, AP Business Writer
Wall Street fell sharply Thursday as investors, already concerned about a rise in unemployment claims, sold off when Federal Reserve Chairman Ben Bernanke pointed to troubles in the banking sector.
Bernanke, testifying before Congress, said that while the large U.S. banks will likely recover from the recent credit crisis, there could be some bank failures.
Earlier, stocks fell 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.
“To consistently see claims up near 400,000, that's pretty telling often-times of a recession," said Scott Wren, equity strategist for A.G. Edwards & Sons. Wren said he still believes there's less than a 50 percent chance of a recession, but that it's clear employers are cautious about hiring.
In late morning trading, the Dow Jones industrial average dropped 130.01, or 1.02 percent, to 12,564.27.
Broader stock indicators also lost ground. The Standard & Poor's 500 index declined 12.91, or 0.94 percent, to 1,367.11, and the Nasdaq composite index lost 20.95, or 0.89 percent, to 2,332.83.

Retiree News and info:

The Danger in 'Senior' Inflation
By Brett Arends, The Wall Street Journal
Worried about inflation? It may be an even bigger danger than most of us realize.
That's because the American population is aging. The Baby Boomer generation is heading into retirement. And inflation for older Americans is considerably higher than it is for the rest of the population.

Paying it forward
Little-known rule lets you restart Social Security and collect more each month.
SAN FRANCISCO (MarketWatch)
Many people start their Social Security benefits early -- at age 62 -- because they embrace the adage that a bird in the hand is worth two in the bush. It turns out that sometimes you can have all three birds.
You may think that once you start Social Security benefits, you can't go back and change your mind, but a little-known rule allows you to cancel your decision and start over.

quote:

Originally posted by Local Hero:
Current Market News:

WASHINGTON (MarketWatch) -- The U.S. economy slowed sharply in the fourth quarter, growing at a 0.6% annual rate, unrevised from last month's estimate, the Commerce Department reported Thursday.
For all of 2007, the economy grew at the weakest pace in five years, rising at an inflation-adjusted 2.2% after a 2.9% gain in 2006.

This is TERRIBLE news. What you're telling me is that the economy is continuing to rise. That is horrible! We must stop this! We can't have a rising economy. Something must be done. I mean, what if we have a 2.2% increase this year as well? What will we do? I mean, the economy is on a virtual infinity timeline, if we continue to have a 2.2% raise every year, one day we'd be MUCH better off than we are today. That would be horrible.

(mk, I filled this up with EXTRA sarcasm just for you )

quote:

Originally posted by cwh008:

quote:

Originally posted by Local Hero:
Current Market News:

WASHINGTON (MarketWatch) -- The U.S. economy slowed sharply in the fourth quarter, growing at a 0.6% annual rate, unrevised from last month's estimate, the Commerce Department reported Thursday.
For all of 2007, the economy grew at the weakest pace in five years, rising at an inflation-adjusted 2.2% after a 2.9% gain in 2006.

This is TERRIBLE news. What you're telling me is that the economy is continuing to rise. That is horrible! We must stop this! We can't have a rising economy. Something must be done. I mean, what if we have a 2.2% increase this year as well? What will we do? I mean, the economy is on a virtual infinity timeline, if we continue to have a 2.2% raise every year, one day we'd be MUCH better off than we are today. That would be horrible.

(mk, I filled this up with EXTRA sarcasm just for you )

If growth rate of GDP is going up, so will business, jobs and personal income.
If growth rate of GDP is slowing down, then businesses will hold off investing in new purchases and hiring new employees, waiting to see if the economy will improve.
That doesn't sound terrific to me.

wait a minute, are you saying that things are getting better, not worse and not staying the same?? Really? It just didn't grow as much as it did last year, but it's growing?? Wow, this is amazing!!!

(some of my sarcasm to add to the pile... my sarcasm is in my apparent amazement at the situation)

quote:

Originally posted by I need a life!:
wait a minute, are you saying that things are getting better, not worse and not staying the same??

Not at all.
3rd quarter growth = 4.9%
4th quarter growth = 0.6%
I hope I won't need to break it down any further, but hopefully now you understand the stimulus package a bit more.

yep, I'm gonna go pay bills with it

Retiree news and info:

Seven Places to Retire During an Economic Downturn
by Kelli B. Grant
Friday, February 29, 2008
Following the flock of other retirees to warmer climes may seem like the best way to spend one's golden years. But it may not be the smartest — especially during economic downturns.
"A retiree always needs to be careful about where he or she chooses to spend retirement, but with economic conditions changing so quickly it's even more important to make a good choice," says Warren R. Bland, author of "Retire in Style: 60 Outstanding Places Across the USA and Canada." Not all places are created equal when it comes to weathering economic woes like the current real estate slump, credit crunch and slowing job market, he says. Choosing the wrong place could carry serious ramifications.

Market Update:

Tha Major indices extend their losses. The recent wave of selling pressure was led by the tech sector (-1.9%)
The ten economic sectors are in the red, with all but consumer staples (-0.9%) posting a loss of more than 1%. Energy (-1.9%) is the main laggard as crude prices slide roughly 1% from all-time highs. Weakness is broad-based. Of the 147 S&P 500 industry groups, only two are posting a gain.

The sky is falling, the sky is falling.

OH whoa is me. Pulling hair and knashing of teeth.

The world has a business cycle, it goes up and
it goes down. Various factors influence its timing
but probably least likely is who is President.

Most of the wealth in the US is owned by
retirees over 60.

quote:

Originally posted by Conn:
The sky is falling, the sky is falling.

OH whoa is me. Pulling hair and knashing of teeth.

The world has a business cycle, it goes up and
it goes down. Various factors influence its timing
but probably least likely is who is President.

Most of the wealth in the US is owned by
retirees over 60.

Since I have never once mentioned the Bush presidency in these market threads, I'm curious why it keeps getting brought into the mix?
There must be plenty of threads on here for partisan bickering, aren't there?
Or it that some of you think the economy should have no bearing on decisions that might be made by the government, local or national?

It should not factor in to governance. The government was designed to do for us as individuals that would be better done by the whole. We (individuals and businesses) can take care of our economy just fine, it's the politicians that are messing it up with their bad fiscal and foreign policy. If they would work on those things and keep their hands out of the till, we would be just peachy.

quote:

Originally posted by I need a life!:
It should not factor in to governance. The government was designed to do for us as individuals that would be better done by the whole. We (individuals and businesses) can take care of our economy just fine, it's the politicians that are messing it up with their bad fiscal and foreign policy. If they would work on those things and keep their hands out of the till, we would be just peachy.

That's not exactly what I was referring to life.

I know that.

When you look at it from the perspective that it's not government's job, though, it takes on a whole different meaning now doesn't it!

Market News:

Reports this week.

Today’s reports of note:
10:00am - Jan Construction Spending
10:00am - ISM Index for Feb
12:00am - Feb Auto Sales; Feb Truck Sales

States and Cities Start Rebelling on Bond Ratings

By JULIE CRESWELL and VIKAS BAJAJ
Does Wall Street underrate Main Street?
A growing number of states and cities say yes. If they are right, billions of taxpayers’ dollars — money that could be used to build schools, pave roads and repair bridges — are being siphoned off in the financial markets, where the recent tumult has driven up borrowing costs for many communities.
A complex system of credit ratings and insurance policies that Wall Street uses to set prices for municipal bonds makes borrowing needlessly expensive for many localities, some officials say. States and cities have begun to fight back, saying they can no longer afford the status quo given the slackening economy and recent market turmoil.
Municipal bonds, often considered among the safest investments, sank along with stocks last week, darkening the already grim mood in the markets. Several big hedge funds unloaded bonds as banks further tightened credit to contain the damage from mounting losses on home mortgages and other loans.
States and cities rarely dishonor their debts. The bonds they sell to investors are generally tax-free and much safer than those issued by corporations. But some officials complain that ratings firms assign municipal borrowers low credit scores compared with corporations. Taxpayers ultimately pay the price, the officials say, in the form of higher fees and interest costs on public debt.

Buffet pulls muni deal off the table.
LONDON MarketWatch

Warren Buffett said on CNBC television that his offer to effectively bail out bond insurers is off the table, according to a transcript of the conversation on CNBC's Web site. He had previously offered to guarantee $800 billion of muni bonds backed by MBIA, Ambac Financial and FGIC, at a premium.


Oil drops to $101.

Oil prices fell Monday, close to $101 a barrel, after hitting record levels last week, as European and Asian stock markets slid on worries about the U.S. economy.
At the same time, the oil and commodities market was supported by the continuing weakness of the U.S. dollar.
Many analysts believe oil is poised to rise above $103.76 a barrel. That is the price many believe to be oil's all-time high, on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.
Traders also continue to fret over OPEC, which meets Wednesday to consider production levels. The prospect that the Organization of Petroleum Exporting Countries might cut production has helped fuel oil's recent rise. But with prices holding above $100, most analysts now expect OPEC to hold production steady.
Analysts have also said the investment flows that have pushed prices higher this year are not about to dry up — despite underlying fundamentals of oil supply and demand that do not justify such high prices. Some predict speculative investing could push oil prices as high as $120; others argue prices have formed a bubble and could crash back to the $70 range.

Credit crisis seen as economic threat

WASHINGTON - The cascading fallout from the subprime loan crisis, barely a cloud on the horizon a year ago, is now viewed by experts as the economy's gravest threat.
In a survey being released Monday, 34 percent of the members of the National Association for Business Economics ranked the financial market turmoil from those loan defaults as the No. 1 threat to the economy over the next two years.
That compares with 18 percent from an August survey, when the most serious threat was seen by 20 percent of the economists as terrorism and the conflicts in the Middle East.
A year ago, the credit crisis did not even register as a chief threat.
The Fed has taken on the credit crisis and the accompanying weak economic growth by cutting interest rates. But to fight inflation, the Fed would have to raise rates. It cannot battle both threats at the same time.

The Impact of Monetary and Fiscal Stimulus--It Works
By Dick Green
Breefing.com
Monetary and fiscal stimulus has been much more aggressive this business cycle than in the previous two recessions. A comparison with 1991 and 2001 suggests that the market is vastly underestimating the economic impact for 2008 from lower rates and tax rebates.

Monetary Policy the Last Two Times
The past two recessions were in 1991 and 2001. In each case, the Fed lowered rates, and the impact was evident about nine months after the rate cuts started.
In 1990, the Fed started cutting rates on July 13. The rate cuts were slow and small, but ten months later real GDP rose at a 2.6% annual rate starting in the second quarter of 1991.
In 2001, the Fed started cutting rates Jan. 3. Nine months later, real GDP rose at a 1.6% annual rate in the fourth quarter. That occurred despite the Sept. 11 terrorist attacks and was followed by a 2.7% growth rate in the first quarter of 2002.

Report update

The major indices extend their losses due to weakness in financials (-1.8%) and then rebound on the release of a national manufacturing survey. Currently, the stock market is trading with a slight loss.

The February ISM Index fell to 48.3, compared to the expected reading of 48.0. Because the reading is below 50, it reflects a contraction in manufacturing in the United States.

In a separate report, January construction spending fell 1.7% month over month. This was a larger slide than the expected decline of 0.7%.