October, 2008 Posts
Volkswagen the Most Valuable Company in the World on Tuesday
This jump in price was caused after Porsche announced over the weekend plans to increase its stake in Volkswagen from 42.6% to 75%. With few shares outstanding (less than 5%) and a potential increase in the stock price as a result of Porche buying stock, many short sellers decided to close their positions and buy [...]
Why the $700 Billion Bailout Won’t Work
The plan is to use the $700 billion dollars of newly printed money to purchase “distressed assets.” My interpretation of this is that these are loans where the people are late at paying or show signs that they will not be able to pay the mortgage soon such as ballooning debt or lowered credit score. [...]
How the Low Savings Rate Will Effect Wages During a Recession
From 1959 to 2007 the personal savings rate reached a high of about 11% in 1985 and has fallen since then until 2006 where it has been negative since. This means that Americans are spending more than they earn. Much of this negative savings was most likely people purchasing homes and drawing on home equity [...]