Drea Knufken
It’s almost impossible to follow everything that’s going on in the economy these days. I rounded up 10 items that sum up the most important news that directly relates to us, as well as a couple of items pertaining to countries that don’t seem phased by our crisis:
1. Banks are hoarding money in the United States, the UK, and Europe. From Businessweek:
Banks are stashing their money in U.S. Treasury bills instead of extending credit to one another or to stretched customers.
The clearest sign of bank cash hoarding occurred on Sept. 30 when the overnight London Interbank Offered Rate—the interest rate on interbank loans in dollars—soared to 6.88%, far above the 2% federal funds rate it normally tracks.
2. People are hoarding too, which means losses for Vegas casinos and automakers, whose US sales are plunging.
3. The Senate passed the bailout bill; it gets another House vote on Friday.
4. Almost 500,000 people in the US are out of a job.
5. After propping up Goldman Sachs with a $5 billion injection, Warren Buffett has turned to GE and given $3 billion.
6. Some small banks are doing just fine, despite the crisis.
7. Dubai, our distant relative in the Middle East, heard something about a Western economic crisis, but shook it off as a rumor. Instead, they’re worried about the aesthetics of their latest construction spree.
8. Alternative energy tax credits are piggybacking on the bailout bill. Look for green innovation to grow as the economy collapses. This came not far behind short-term incentives for automakers to green their production process.
9. While we try to cut down on oil imports, Chinese oil companies are going seriously global.
10. Stuck in a bad economy, some Latin American immigrants are turning around and going back home.
