How the World Works

Posts in October 2008

October 1
Cheap latte drinkers feel the pain
The credit crunch arrives at McDonald's. See, I told you the apocalypse was coming!
Everybody gets a bailout!
The Senate cooks up a package to rescue banks. Advocates for wind and solar power, parents and even therapists all have reason to cheer
Bipartisan bailout folly
Democrats and Republicans are blaming accountants for Wall Street's woes. They are wrong.
"A tourniquet for a hemorrhaging economy"
As the credit squeeze tightens around Main Street, the Senate prepares to vote on its version of the bailout bill.
The specter of bailout-ism is haunting the Senate
Is the Paulson plan a slippery slope to socialism? What does a real socialist think?
October 2
The Senate votes for the bailout
By a 74-25 vote the Senate says yes to a $700 billion rescue plan for Wall Street.
Byron Dorgan's warning about risk
Ten years ago, the senator from North Dakota warned against repealing Glass-Steagall. His premonition came true.
The big bailout squeeze
Another bad day for the economy, as unemployment jumps and credit gets tighter. Is a bad fix better than no fix at all?
Bushonomics, revisited
A quick review of the economic legacy of the man the New Yorker calls the worst president since Reconstruction.
What's so wrong about mass hara-kiri?
A reader makes a sharp observation. Plus: Joe Stiglitz doesn't like the bailout
October 3
A debate question on jobs and the campaign
More bad news on the unemployment front: Is government part of the problem, or the solution?
Credit crisis, California-style
Annals of the financial panic of 2008: Schwarzenegger warns Paulson that the state may soon need an emergency $7 billion loan
McCain was right: Fire Chris Cox!
And Henry Paulson too, while we're at it. They made this mess, and they should pay for it. The New York Times has the evidence
Message from the House: "You better pray"
House Majority Leader John Boehner says no matter how the bailout vote goes, we're going to need God's help
The House votes for a bailout
Kicking and screaming, complaining all the way, the ayes have it
The end of the Reagan revolution
The vote to bail out Wall Street marks the demise of deregulation's stranglehold over the American economy
What would Jesus do, about the bailout?
A Christian news organization reports about the danger that illegal immigrants might get mortgage relief from the Paulson plan
October 6
Global economy panic attack; Dow drops 500
Bailout or no bailout, the U.S. stock market can't escape the economic pain sweeping the rest of the world
Wall Street shudders, again
What bailout? The Dow drops 740 as a financial panic sweeps the world.
A wild day on Wall Street
While stock prices gyrate, Lehman's Richard Fuld tells Congress no one expected housing prices to fall so fast and so far. Oh really?
Mr. Megabank endorses Obama
Hugh McColl, the man who turned Charlotte, N.C., into a financial powerhouse, says the Democrat is the man for an economy in chaos.
October 7
Another day, another radical Fed plan
The bailout is so last week -- Bernanke and friends are plotting a new dramatic government "rescue" attempt
Another step toward nationalizing the finance sector
Reactions to the Fed's plan to lend directly to businesses. Plus: Rachel Maddow interviews Paul Krugman.
Krugman: "We are all Brazilians now"
Balance sheet contagion rules the global economy. "Interdependence" is becoming a dirty word.
Prelude to the debate: Dow falls 508
Character assassination may lose its appeal after two very bad days for Wall Street and Main Street.
A Fannie Freddie debate primer
Here's what you need to know when John McCain starts talking about the mortgage mess
October 8
Can a global rate cut stop the bleeding?
After a night of market carnage in Asia, interest rate cuts are the new world order of the day. But so far, investors are unimpressed
The fatal flaw in McCain's mortgage plan
Untangling the mess created by mortgage-backed securities and their derivatives will be complicated and very, very expensive.
McCain's plan to overpay mortgage lenders
Let taxpayers take the hit, while lenders get a big break
October 9
Return of the Long Depression
Risky mortgages, a rising new industrial power across the ocean, and banks unwilling to lend to each other. In 1873.
Laissez-faire: Rest in peace
Oh what the heck: Let's just nationalize the banks and get it over with. Sure, says the Treasury.
Dow disaster -- down nearly 700 points
Panic rules: The Dow Jones Industrial Average closes under 8,600.
Coping with a crazy-making economy
Crashing stock markets and imploding banks aren't so great for the mental digestion. But we'll get through it.
October 10
The sun never sets on a global panic
Asian and European markets follow New York's stumbling footsteps. Can the world leaders now meeting in Washington make a difference?
Can you hear the sound of the economy stopping?
Grain shipments are stranded in port as international trade gets a credit check.
Wall Street's crazy day
Friday's stock market zigs and zags were a Rorschach blot for how investors see the economy. Despair, joy, gloom, euphoria. Can we go home now?
The new improved Paulson plan
The U.S. government will become the investor of last resort. Get ready, America: You're about to own Wall Street
October 13
A Nobel Prize for Paul Krugman
The Al Gore of partisan economics? Pshaw. He deserved this award, whether or not he was right about Republican economics.
Wall Street: Three cheers for socialism
Driven to ecstasy by news of worldwide bank nationalizations, the investor class celebrates. The Dow surges.
The Obama middle-class rescue plan
While McCain dithers, Obama swoops in with a multi-pronged bailout for Main Street.
Dow rises 936. Happy days are here again?
Don't be fooled. Investors are delirious because there is a plan to fix the banking system. But nothing is fixed, yet
October 14
Grover Norquist's bad stock market prediction
Four years ago, the conservative predicted that America's embrace of stock ownership would increase Republican domination.
McCain warns against "erratic" politicians
The new all-about-the-economy McCain sounds a lot like a Democrat. Right down to the sound bite.
Falling gas prices: Where's the outrage?
It's October in an election year and the price of gasoline is dropping like a rock. Where have all the conspiracy theorists gone?
October 15
Consumers vote with their wallets
Retail spending takes a big hit. Also: Yet another way to compare today with the Great Depression
Who will save the economy?
Paulson hopes banks will lend their new billions. Democrats propose a $300 billion new deal. Voters get to add their 2 cents in 20 days.
George Bush and his bank bailout
Are the President and the Treasury Secretary on the same page?
Debate prep: Dow falls a whopping 733 points
Monday's rally is ancient history, as investors run for cover, again. Does anyone care about Bill Ayers?
October 16
Death march of the hedge funds
The rich are running scared, and dragging global markets down as they panic
More stock market woe: Blame the hurricanes
Industrial production goes off a cliff and the stock market follows. Monday's rally? Gone, baby, gone.
China and the bailout: Happy to help
The People's Republic will assist in the nationalization of the U.S. financial sector. Because the Chinese have no choice.
Is Google recession proof?
The global economy may be hurting, but so far, the pain hasn't prevented the search giant from minting money
October 17
The people come to California's rescue
The credit freeze doesn't scare Joe Sixpack Investor. A state bond issue finds favor with the "little" guy
Ron Paul in 2012?
"Our numbers are growing," the Texas Republican tells CNN. Financial chaos is no surprise to him, or his followers.
Armadillo archaeological mayhem
Reconstructing history rewritten by rodent burrows is a dirty job. But someone will do it
October 20
Lessons from the bailout
The credit crunch is loosening up. Now is the time to show the same kind of big government love to Main Street.
The evolution of Ben Bernanke
Ten months ago, he grudgingly supported a stimulus package. Today, his endorsement is wholehearted
Obama's message to Florida
In a state ravaged by the housing bust, the candidate asks: "Are you better off now than you were four weeks ago?"
October 21
As Greenspan plummets, Volcker surges
If you could trade shares in Fed chairmen, it's time to sell the Maestro. As for Bernanke? Every week, it's a different story.
The secret to Rachel Maddow's ratings success
It's all about Princeton professor star power. Go Tigers!
October 22
Wall Street's California problem
Wachovia reports a $23.7 billion quarterly loss. "Westward ho!" now looks like a pretty bad rallying cry for the North Carolina bank.
Hank Paulson rewrites history
The Treasury Secretary tells Charlie Rose that an earlier push to recapitalize banks wouldn't have made "any difference"
The Wal-Mart recession
Another dismal economic indicator: Paycheck-related spikes in baby formula purchases
October 23
No more legroom for bankers
Tough times are forcing the former masters of the universe to fly coach. Will the degradation ever end?
Could Mitt have saved McCain's bacon?
Financial expertise is in short supply on the Republican ticket. But Romney's old company, Bain Capital, has its own problems
Henry Waxman stays on the warpath
Lehman, AIG, and the credit ratings agencies got their day in the harsh Congressional sun. Next up: Federal regulators
Alan Greenspan blames Wall Street
Who is responsible for the financial crisis? Hint: Not poor people
Waxman: A mean man with the gavel
Republicans want a special prosecutor to investigate Fannie and Freddie. But the House Oversight chair just won't hear of it.
A foodie dream come true
Do you like ethnic cuisine? A market research firm may have a job for you
October 24
"Extreme market stress": Dow drops 450 at open
Forget about that fancy-pants credit freeze. It's a good old real economy meltdown that has investors terrified now
A glimmer of hope in home sales?
For the first time in three years, sales of existing homes rise year-over-year. But you still need a microscope to see signs of a recovery
$700 billion: Blink, and it's gone
It's beginning to look like Hank Paulson didn't ask Congress for enough cash.
How to fix the mortgage business
We don't need a revolution: Just a tweak here and there, and it will be as good as new
October 27
Lost decade, schmost decade
Japan gets the week started off with a bang. The Nikkei stock index falls to a 26-year low
Another laugher from Arthur Laffer
The brain behind supply-side economics goofs again.
The return of the Third World
Next up on the global economy catastrophe hit-list: Emerging economies. Let's be fair: They need a bailout, too
Whatever happened to food versus fuel?
Commodity grain prices are collapsing. Perhaps biofuels were not the primary villain in the global food crisis?
October 28
Home price happy news
The speed at which housing values are dropping is slowing. Break out the champagne?
Why no bailout for the hungry?
Compared to the billions governments are handing to banks, the cost of ending starvation seems cheap
The Long Depression is hot, hot, hot!
The New York Times had the story. In 1911. Pay attention or you will get burned again
Bjork's sad credit crunch song
First Iceland's banks got zapped by the global financial crisis. Next up: Lava fields and hot springs?
October 29
Investor euphoria amid a global recession
What's wrong with this picture? Stocks go up while the global economy goes down, down, down
Sarah Palin's silly energy speech
Neither Alaska, nor its governor, has the answer to America's energy problems
Easy money days are here again
Ready for the next bubble? The Fed cuts interest rates all the way down to 1 percent.
Chinese advice for the next U.S. president
China wants to be more involved in running the global economy. But the U.S. just wants China to consume more.
October 30
The Exxon recession
The economy contracts, but Exxon-Mobil boasts record profits. Where's a socialist redistributionist when you need one?
Did Porsche blitzkrieg the hedge funds?
Volkswagen short-sellers took a bath this week. Traders are blaming the German government for foul play
The socialist Economist endorses Obama
Since 1843, the magazine has supported free markets. Wha' happened?
Acid rain loves a good recession
In China, cleaning up coal-fired power plants suddenly isn't such a great business
October 31
Greenspan, Einstein, and peer review
Could the Maestro's pronouncements on deregulation have benefited from a more scientific approach?
The big Ford truck: Back from the dead
Don't call it a comeback: As gas prices fall, F-150 sales may be poised for a rebound. That was quick!
A McCain economic advisor goes way off-message
Martin Feldstein says it's time for the government to start spending like mad. So maybe Mr. "Spending Freeze" is the wrong guy for the job?
The youth vote in Berkeley, California
A real stunner: Barack Obama out-polls Alan Keyes by more than a thousand votes.
An economic incentive to vote
A case study in trying too hard: Three economists argue that voting is an act of charity
A name China scholars will remember
John "Beginning Chinese" DeFrancis passes away. Who knew he once tangled with Senator Joe McCarthy?
Obama: "A clean break from a troubled past"
The president-elect makes his case to the nation for immediate action on the economy. Let's hope Senate Republicans were listening.
Even Wal-Mart gets the blues
Cutbacks in discretionary spending take their toll, even at the "low-price leader"
How humans cooled the earth -- 500 years ago
After pandemics caused a mass die-off in the New World, farmland turned to forest and temperatures dropped

About How the World Works

A conversation about globalization.

Recent Posts

Obama: "A clean break from a troubled past"
The president-elect makes his case to the nation for immediate action on the economy. Let's hope Senate Republicans were listening.
Even Wal-Mart gets the blues
Cutbacks in discretionary spending take their toll, even at the "low-price leader"
How humans cooled the earth -- 500 years ago
After pandemics caused a mass die-off in the New World, farmland turned to forest and temperatures dropped

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