The thing I see is the economy is doing fair but it won't take much to make it go south. I read that there was a run on a lending institution in Briitian so they might be getting nervous too. Long range forcasts are out the window where the economy is concerned. IMO.

In UK, there is a bank that was involved with the sub prime thing and they cannot seell off some of their assets to offset the damage. If they cannot it will ripple all the way back to the US markets.

UK govt tries to head off any losses.


LONDON -- The British government tried to stem the tide of cash pouring out of Northern Rock PLC yesterday, promising depositors they wouldn't lose a penny as the bank's share price plunged further and thousands queued to withdraw their savings.

But fears that Northern Rock is not alone in needing funding saw shares in fellow U.K. bank Alliance & Leicester tumble more than 30 per cent in frenetic trading, forcing it to deny it has also asked the central bank for help and continued to fund itself.

British finance minister Alistair Darling said that if necessary, the government and Bank of England will guarantee all existing Northern Rock deposits during the instability.

Currently, a U.K. industry-funded scheme only protects depositors for 100 per cent of the first £2,000 ($4,104) in any bank account and 90 per cent of the next £33,000, giving a maximum payout of £31,700.


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Foreclosures on the rise.


LOS ANGELES - The number of foreclosure filings reported in the United States last month more than doubled the year-ago figure and jumped 36 percent from July, according to a survey released yesterday.

The trend signals that more homeowners are unable to make timely payments on their mortgages or sell their homes amid a national housing slump.

A total of 243,947 foreclosure filings were reported in August, up 115 percent from the 113,300 in the same month a year ago, according to RealtyTrac Inc., of Irvine, Calif.

There were 179,599 foreclosure filings reported in July.


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Grantede foreclosures are a regional thing, but I feel it will become national in a short while.

The feds can prop up the stock market all they want but it isn't going to save the housing market in the short term. IMO.

You are corrct, even with the news of the cut, the housing market is still falling like a rock.

Retailers are predicting a terrible holiday season. IMO, it is just a plan to lower expectations from investors.


Retailers are in for a gloomy holiday season, with shoppers weighed down by the weakening housing market and the credit crunch, according to industry forecasts.

The National Retail Federation, a trade group and frequent industry cheerleader, turned in its lowest holiday forecast in five years yesterday. It said discounters and some department stores could be among those most adversely affected as low- and middle-income shoppers curtail their spending.

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"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said Rosalind Wells, the group's chief economist. "Consumers will be forced to be more prudent with their holiday spending."


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"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles,"

Don't we go through this every year this time?

It seems like we do, IMO, it is to keep the expectations of investors low and that way they can look like they had a good season.

The Fede may have silemced the lending market but it has started a new speculation. This is seldom repoorted to the people.


Federal Reserve Chairman Ben S. Bernanke may have cooled off the credit crisis by cutting interest rates, but he may also have heated up oil prices this week.

For seven consecutive business days, crude oil prices have hit new highs. Even after dropping slightly yesterday, crude oil on the New York Mercantile Exchange finished the week at $81.62 a barrel, up a third since Jan. 1 and not far short of the inflation-adjusted peak set in January 1981, when Saddam Hussein's Iraq was at war with Iran.


Speculation caused oil prices to reach record highs after the Federal Reserve's interest rate cut eased concerns about a U.S. economic slowdown.

Though gasoline prices haven't matched earlier levels, new price increases could come soon. AAA said that the nationwide average price of regular unleaded gasoline was holding steady at $2.80 a gallon, up 34 cents from a year ago but still 43 cents below its peak, on May 24.


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With record oil prices , record gas prices won't be far behind.

I think the prices will start up next month when the winter blends start hitting the pumps.

Fed Chairman says the worse is not over.


In testimony to the House Financial Services Committee, Bernanke also said the market for those mortgages has "adjusted sharply," and that markets "do tend to self-correct."
He outlined steps the Fed is taking to help reduce the risk of foreclosure and stressed the need to beef up underwriting practices.
Just two days after the Fed lowered the federal funds rate by 50 basis points, Bernanke also said the central bank stands ready to foster price stability and sustainable economic growth.
"Recent developments in financial markets have increased the uncertainty surrounding the economic outlook," Bernanke said. "The [Federal Open Market] Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth," he said.


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There is more! The action was to protect wealth of the investors noit assist the people who are losing their asses in this economy.


Last week's interest-rate cut by the Federal Reserve won't do much for strapped borrowers facing possible loss of their homes. But it will mean lower rates for many borrowers -- and also lower rates for savers.

Little Help for Worst Off

The Fed's half-percentage-point reduction in its target short-term rate is the first cut in that benchmark since 2003.

For those on the brink of foreclosure, that's not the life preserver they need. And for those who also are higher-risk subprime mortgage borrowers -- there's an estimated 1.5 million to two million out there -- the Fed move is of little consequence.


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that markets "do tend to self-correct."

Oh no they don't. If they did the feds wouldn't be jumping in to rescue them.