Economic Outlook: September 2008 Archives

For a while I was pretty removed from all this banking stuff. My bank was struggling but it was surviving, just barely, but still surviving.

But not anymore. The FDIC just announced that Citigroup will acquire the rights to Wachovia.

This is unfortunate for me on two levels. First off, I bank at Wachovia. That is where the large part of my money is stored.

Second, I hold (held?) shares of Wachovia. I know the stock prices were just tumbling, but the stocks were a gift from my grandfather many many years ago and they used to pay an OK dividend. Now I can just say buh-bye to all of that.

So I guess, it's a pretty dull day for me and other Wachovia bankers and shareholders.

Do you bank at Wachovia or own stock? Let me know in the comments.

Well, I think it's safe to say you've been living under a rock this week if you missed all the news surrounding the bailout.

If for some reason you have, here's a quick rundown of what you missed.

People in general are not lovin' the bailout.

Congress is still yakking about the bailout.

WaMu joins the growing list of failing banks.

In more lighthearted news, "The Office" started last night and you can check out a cool story about a York College professor who teaches classes based off the show.

And don't forget to take a few minutes to listen to this week's podcast. The business staff chats about what you need to know to buy a car in our weak economy.

Washington Mutual is the latest bank in a long list of bank failures this month. It also happens to be the biggest bank failure in U.S. history.

J.P. Morgan Chase & Co. bought out the bank out, and it will open today as normal with people having full access to their accounts, according to a spokeswoman from the FDIC.

And because the economic news of the week has just been depressing, I've decided to be horribly inappropriate in making light of this situation by giving you this video to enjoy.

In case you missed it last night, here is President Bush's speech on the bailout.

Does what Bush said last night in anyway change or sway your opinion of the bailout?

The government bailout is the hot news of the moment and everyone seems to have an opinion on whether or not Congress should pass it.

I'd love to hear what some of you have to say about it. Leave me a comment and let me know!

"House Minority Leader John Boehner (R., Ohio) on Tuesday appeared ready to accept some limits on executive compensation if Treasury agrees. Aides to Mr. Boehner told financial-services lobbyists that he would accept tempered limits, as long as the legislation doesn't include other additions, such as a Democratic proposal to give bankruptcy judges new authority to approve the modifications of terms of mortgages for distressed homeowners. "

That's from the Wall Street Journal today. More info here.

Basically, it means it would limit how much heads of companies would profit from the bailout, and some Republicans are agreeing with it.

Do you think CEOs are entitled to their compensation, whatever companies want to give them, or do you think that because it's taxpayer money, the government should set those limits?

Quick take a peek at the bottom of your plate, bowl or mug. Do you see the Pfaltzgraff marking?

Chances are you might. These dishes seem to be everywhere.

At least that's the case for me and a few of my co-workers.

When we heard the news that the company was closing retail outlet stores and the local distribution center, we all started talking about how all of our dishes were made by that company.

I remember eating off Pfaltzgraff dishes as a kid in my parents house. What do you remember about the company? Leave a message in the comments section and let us know!

See that picture? Students are seeing a whole lot less of that for college in central Pennsylvania.

A private student loan agency in Carlisle is limiting student loans it allocates from here on out, and a newspaper to the north of us is reporting the business isn't taking any new loan applications.

No matter what anyone says about race or gender glass ceilings still lingering in America, the 800-pound gorilla remains having the money for a good education. (Financial disparities are part of the race and gender ceilings, and in the end, money talks.) And like everything else in America, the degrees we buy - like hammers to smash through the glass - are bought on credit.

Credit woes aren't just something confined to people who were snookered on a bad mortgage or who ran up credit card bills at the mall, although sadly, that's part of what's caused the problem. And now kids can't afford college.

The situation with CampusDoor, I'm worried, will get worse. Do you know of anyone who is having problems with student loans this year? Are you worried education will become less available to those groups historically locked into class structures, and locked out of social mobility?

Our short week is about to come to a close, so here's your headlines before you head out.

Obama pays a visit

No, it's not your eyes, those packages are shrinking.

Coupons can save you big bucks.

And make sure you catch this week's podcast, where the biz staff talks about thrifty entertainment options.

The hurricane was bearing down on Louisiana over the weekend, and gas prices around York County went from about $3.39 to $3.45. It's a smart move to spread out the pain of a Category 4 storm smashing into oil rigs and upping oil prices in its wake.

But then the rigs pretty much got missed, and oil prices began to fall. At last count, they were down to about $106 per barrel.

So watch out for gas prices to drop, even below that $3.30 range where prices settled for a bit. If they don't, let us know.

Just looking at the AAA fuel gauge report and gas prices are already creeping up in the past few days. Do we thank Gustav?