Vinny’s Blog

Thank God it’s Friday……….check what happened on Thursday…last Thursday…………took me a week to catch up with it..but I am glad, I got there finally,  just in time for Friday. This can happen only in America, only in America. One can be a fed chairman….completely clueless and can still holdon to the position. Or better still Treasury Chief…why ? because if he is from Goldman (company that produces nothing but the best) then, how can he be wrong ? He can’t be wrong it’s not in the definition.

Good news is you me and anyone yes ! even your neighbor has the potential to become Treasury Cheif or Fed Chairman…don’t believe me…check it out yourself.

Last Thursday (On Nov-13th) Law Makers in Washington asked the experts - if the bailout was wroking. Question was asked to our current Fed Chairman and the Treasury Secretary .And here is their answer…..

Regulators: Bailout is working
NEW YORK (CNNMoney.com) — Lawmakers challenged Treasury Secretary Henry Paulson on his handling of the $700 billion bank bailout program and stressed the importance of doing more to help homeowners.
……….”When the facts changed and the circumstances changed, we changed the strategy,” Paulson told members of Congress. “We didn’t implement a flawed strategy. We implemented a strategy that worked.” …………
http://money.cnn.com/2008/11/18/news/economy/bailout_hearing/index.htm?postversion=2008111811

Feel free to read the entire article….

And then I checked news from around the time (when question was asked) and till a week later to see how great the bailout is working…..just watch the dates that are highlighted and read the headlines..and see for yourself how great this bailout package is working…….question was asked on Nov-13th.

–A week before question was asked.
-November 9 2008
Wall Street jobs axe threatens 70,000
http://www.ft.com/cms/s/0/397aaa26-aea2-11dd-b621-000077b07658.html?nclick_check=1

-Nov. 10, 2008
Deutsche Post to cut as many as 10,000 U.S. jobs
http://www.marketwatch.com/news/story/Deutsche-Posts-DHL-cutting-up/story.aspx?guid={45C30F6B-AA80-43EE-A485-4D5A422A2D56}

- A day before the question was asked.
-Nov. 12,2008
1 in 7 homes in Santa Clara County is ‘underwater’
http://www.mercurynews.com/ci_10957727?source=most_emailed

-Nov. 12, 2008
Morgan Stanley to cut more jobs, launch retail bank
http://www.marketwatch.com/news/story/Morgan-Stanley-cut-more-jobs/story.aspx?guid={4A6DBA8A-6443-44D5-AAA7-B2B0D272B07E}
-The day this question was asked.
-Nov. 13 (Bloomberg)
U.S. Jobless Claims Reach Seven-Year High of 516,000 (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYZezaUiLEr4&refer=home

-November 13, 2008
Foreclosure rates up 25 percent year-over-year
http://finance.yahoo.com/news/Foreclosure-rates-up-25-apf-13556528.html

-Nov. 13, 2008
Highest initial jobless claims since September 2001
http://www.marketwatch.com/news/story/Initial-jobless-claims-top-500000/story.aspx?guid={37B09ED8-AB10-466D-8510-06F8EB7201FC}

-November 14, 2008
Sun Microsystems to cut up to 6,000 jobs
http://money.cnn.com/2008/11/14/news/companies/sun_microsystems/index.htm?postversion=2008111409

- A day later when question was asked.
-November 14, 2008
Citigroup to lay off another 10,000 - report
http://money.cnn.com/2008/11/14/news/companies/citigroup_layoffs/index.htm?postversion=2008111407

-November 14, 2008
Fidelity adds 1,700 to job cuts
Mutual fund manager boosts total workforce reduction to 3,000 by end of March.
http://money.cnn.com/2008/11/14/news/companies/fidelity/index.htm?postversion=2008111417

- 5 Days to a week, later when the question was asked.
-Nov. 18 (Bloomberg)
Home Prices Tumble in 80 Percent of U.S. Cities on Foreclosures
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNESn72Y30k0&refer=home

-Nov. 19 (Bloomberg)
Deutsche Bank May Cut 900 Jobs in London, New York (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aHVU8MCjwZOQ&refer=home

-November 19, 2008
Boeing cuts 800 Kansas jobs
The airplane maker will deliver some layoff notices Friday.
http://money.cnn.com/2008/11/19/news/companies/boeing_job_cuts.ap/index.htm?postversion=2008111915

–Now if the bailout is working those 2 government’s pet companies must be doing real well…right ?
-Wrong. And once again watch the dates when these news articles were made public.

-Right next day on Nov-14th

-November 14 2008
Freddie Mac seeks $13.8bn lifeline
http://www.ft.com/cms/s/0/0d5576c0-b28e-11dd-bbc9-0000779fd18c.html?nclick_check=1

-This came out in the press before the quetion was answered.

-Nov. 10 (Bloomberg)
Fannie Mae Reports Record Loss After Asset Writedowns (Update3)
http://www.bloomberg.com/apps/news?pid=20601087&sid=ausqyp34rOO4&refer=home

–And here is mother of all job cuts……
– Nov 17
Citigroup to shed another 53,000 jobs
Writer Madlen Read, Ap Business Writer - Mon Nov 17, 1:18 pm ET
http://news.yahoo.com/s/ap/20081117/ap_on_bi_ge/citigroup_jobs

- Nov 18 , Here is national disgrace, even developing countries have learned to produce vehicles and make profits…but here we are….
Big 3 carmakers beg for $25B, warn of catastrophe
By JULIE HIRSCHFELD DAVIS, Associated Press Writer Julie Hirschfeld Davis, Associated Press Writer - Tue Nov 18, 6:56 pm ET
http://news.yahoo.com/s/ap/20081118/ap_on_go_co/congress_autos

..and the bad news just keeps on coming………as of writing this post…

- November 20, 2008
JPMorgan cuts investment banking jobs: sources
http://finance.yahoo.com/news/JPMorgan-cuts-investment-rb-13632299.html

But……….Hey…..bailout is working….it’s working great………….who do you think knows more about economy you or your fed chairman ? Hum !

And here is Thursday’s closing of stock market…

[views and opinions expressed here are mine and you need not agree with them. You should not make any financial decisions based upon material you read on this website. For that you must contact an expert in the relevant area of your need.]