Oct

7

Weekly Economic & Investment Recap

October 7, 2008 | Leave a Comment

It wasn’t easy, but Congress finally stepped up and passed a government bailout agreement that many hope will help move the domestic economy and global financial system out of their prolonged “depression” (well, maybe not literally).  The bailout vote represented quite a difficult decision for most reps who knew it would be unpopular with many folks at home (especially in an election year).  Despite some early partisanship and self-serving motives, both branches finally signed on and opened the government’s checkbook to the tune of $700 billion (plus another $150-ish billion in pork and tax breaks).   Meanwhile, Wachovia toyed with Citi’s emotions by accepting its initial buyout proposal, only to “better deal” them when Well Fargo came courting again.  Equities tumbled on the initial bailout vote failure and remained volatile for the rest of the week.  Even in the aftermath of the plan’s passage, traders sold off stocks to end the week on a very sour note.  The corporate credit markets remained in disarray as businesses continue to experience funding challenges.  With a little luck, this bailout plan will help and Congress can breath a sigh of relief for their actions this week. 

Attached/linked please find And That’s The Week That Was, the Brounes & Associates market/economic commentary for the week ended October 3, 2008.

Coming up this week:  Fed Policy Meeting Minutes (Tuesday), Trade Balance (Friday)

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