The United States experienced another interesting first on Wednesday. For the first time in the history of our union, the Securities and Exchange Commission brought charges against a State. The powers that be in New Jersey had been deceiving and misleading investors in regards to the fiscal well-being of the Garden State, and the SEC busted ’em. Bravo.
[Read more...]Son of Subprime, Part II
August 3, 2010 by Leave a Comment
Here’s a myth we’d like to smash. It’s the one about how America stopped being a manufacturing economy and became a “service� economy.
The truth is found in figures like these:
- In the late 1960s, the finance sector accounted for around 20% of corporate profits. Just before the onset of the financial crisis, it was 40%.
- Financial stocks made up 13% of the S&P 500 in 1999. Just before the onset of the financial crisis, it was 22%.
Why Fed Meddling is Only Prolonging the Financial Crisis
Here’s the story:
The Irish caved in. Apparently, they negotiated a deal. They’re going to go for a bailout.
This was all it took to bring stock market investors relief from their bout with temporary sanity. They sent the Dow up 173 points.
The New York Times tells the tale:
[Read more...]Click for detailed story