Archive for the ‘confidence’ Category

Asia stocks lackluster, China stimulus hopes wane

November 11, 2008

Most Asian stock markets retreated Tuesday after weakness on Wall Street, as concerns about the global economy sapped enthusiasm over China‘s nearly $600 billion package to boost growth.

Tokyo’s Nikkei 225 index was down 272.13 points, or 3 percent, to 8,809.30 as the yen strengthened against the dollar. In Hong Kong, the Hang Seng benchmark was 2.2 percent lower at 14,407.45 points.

Australia’s benchmark fell 3.6 percent. Markets in Singapore, South Korea and India also declined.

The Shanghai Composite index, up earlier in the session, fell 1.5 percent despite figures showing the country’s inflation rate eased further last month.

By JEREMIAH MARQUEZ, AP Business Writer

In this Feb. 16, 2008 file photo provided by China's Xinhua ...
In this Feb. 16, 2008 file photo provided by China’s Xinhua News Agency, workers prepare for construction of a new project Shanghai Center at the building site in Pudong District of Shanghai, east China. China’s economy is still growing at an enviable rate: It expanded 9 percent in the quarter ending Sept. 30, 2008. But that was the slowest in 5 years and down from 11.9 percent last year. Forecasts for next year range as low as 7.5 percent.(AP Photo/Xinhua, Niu Yixin, File)

Regional equities were up sharply Monday on hopes that China’s 4 trillion yuan ($586 billion) stimulus package, announced Sunday, would keep its economic growth from falling too fast and help fuel demand for exports from other Asian countries.

But the rally proved short lived amid fresh evidence of more economic troubles.

In the U.S., major electronics retailer Circuit City Stores Inc. filed for bankruptcy protection. Investors also speculated about the fate of General Motors Corp., Chrysler and Ford Motor Co. after the automakers met with lawmakers last week in hopes of securing financial help.

In Asia, Japan’s government reported the country’s current account surplus in September plunged almost 50 percent from a year earlier as export growth waned in the face of a global slowdown.

“It’s what I’d term a ‘fally:’ a rally based on fallacy,” Kirby Daley, senior strategist at Newedge Group in Hong Kong, said of Monday’s advance. “The fallacy being that the China stimulus package is the answer to all of Asia’s problems. While it will help and is a step in the right direction, it will not fully insulate Asia from feeling the impact of the global downturn.”

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http://news.yahoo.com/s/ap/20081111/a
p_on_bi_ge/world_markets_22

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Obama ads in GOP turf; McCain says he’s leftist

October 31, 2008

In a bold move brimming with confidence, Democrat Barack Obama broadened his advertising campaign on Friday into two once reliably Republican states and further bedeviled rival John McCain by placing a commercial in the Republican presidential nominee‘s home state of Arizona.

By MIKE GLOVER and JIM KUHNHENN, Associated Press Writers

Obama’s campaign, capitalizing on his vast financial resources and a favorable political climate, announced that it was going back up with advertising in Georgia and North Dakota, two GOP states that it had teased with ads earlier in the general election campaign but then abandoned.

In what could be a final ignominy for McCain, Obama campaign manager David Plouffe said the campaign would also begin airing ads in Arizona, a state McCain has represented in Congress for 26 years. Plouffe said the race has tightened in Arizona, Georgia and North Dakota. A recent poll from McCain’s home state showed the two candidates in a statistical dead heat.

In a slew of states, “the die is being cast as we speak,” he said. “Sen. McCain on Election Day is not just going to have to carry the day, but carry it convincingly.”

McCain campaign manager Rick Davis derided Obama’s moves: “We encourage them to pick other states that we intend to win” to spend their money.

McCain was spending a second straight day touring economically ailing Ohio, a swing state with 20 electoral votes that McCain aides acknowledge is central to a victory on Tuesday. McCain was behind Obama in polls in the state.

While the Obama campaign continued to tie McCain to the unpopular President Bush, McCain assailed Obama’s economic policies as recipes from the far left of American politics.

McCain told a rally in Hanoverton, Ohio, that Obama “began his campaign in the liberal left lane of politics and has never left it. He’s more liberal than a senator who calls himself a socialist,” a reference to Sen. Bernie Sanders, an independent from Vermont.

Campaigning with McCain was former GOP rival and one-time New York mayor Rudy Giuliani, who told the crowd, “John McCain was right about the single most important decision that had to be made in the last four years and that was to stick it out in Iraq.”

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http://news.yahoo.com/s/ap/20081031/ap_on_el_pr/campaign_
rdp;_ylt=ArOr6vlVlyuOtTuDDkRtP3Ws0NUE

Gordon Brown’s New Rules for Our Global Economy

October 17, 2008

By Gordon Brown
The Washington Post
Friday, October 17, 2008; Page A25

This is a defining moment for the world economy.

We are living through the first financial crisis of this new global age. And the decisions we make will affect us over not just the next few weeks but for years to come.

The global problems we face require global solutions. At the end of World War II, American and European visionaries built a new international economic order and formed the International Monetary Fund, the World Bank and a world trade body. They acted because they knew that peace and prosperity were indivisible. They knew that for prosperity to be sustained, it had to be shared. Such was the impact of what they did for their day and age that Secretary of State Dean Acheson spoke of being “present at the creation.”

British Prime Minister Gordon Brown listens to questions after ... 
British Prime Minister Gordon Brown listens to questions after an EU summit in Brussels, Thursday Oct. 16, 2008. European Union leaders have agreed to stick to ambitious plans to cut greenhouse gases by 20 percent by 2020, but divisions over how to share out the cuts have been widened by fears over the impact of the financial crisis.(AP Photo/Yves Logghe)

Today, the same sort of visionary internationalism is needed to resolve the crises and challenges of a different age. And the greatest of global challenges demands of us the boldest of global cooperation.

The old postwar international financial institutions are out of date. They have to be rebuilt for a wholly new era in which there is global, not national, competition and open, not closed, economies. International flows of capital are so big they can overwhelm individual governments. And trust, the most precious asset of all, has been eroded.

When President Bush met with the Group of Seven finance ministers last weekend, they agreed that we all had to deal with not only the issue of liquidity in the banking system but also the capitalization and funding of banks. It was clear that national action alone would not have been sufficient. We knew we had to send a clear and unambiguous message to the markets that governments across the world were prepared to act in a coordinated manner and do whatever was necessary to stabilize the system and address the fundamental problems.

Confidence about the future is vital to building confidence for today. We must deal with more than the symptoms of the current crisis. We have to tackle the root causes. So the next stage is to rebuild our fractured international financial system.

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http://www.washingtonpost.com/w
p-dyn/content/article/2008/10/16
/AR2008101603179.html?hpid=opinionsbox1

U.S. Investing $250 Billion in Banks: Financial ‘Bailout’ Continues to Intill Hope

October 14, 2008

By Mark Landler
The New York Times

WASHINGTON — The Treasury Department, in its boldest move yet, is expected to announce a plan on Tuesday to invest up to $250 billion in banks, according to officials. The United States is also expected to guarantee new debt issued by banks for three years — a measure meant to encourage the banks to resume lending to one another and to customers, officials said.

A euro coin and one US dollar bill. The dollar has dipped against ... 

And the Federal Deposit Insurance Corporation will offer an unlimited guarantee on bank deposits in accounts that do not bear interest — typically those of businesses — bringing the United States in line with several European countries, which have adopted such blanket guarantees.

The Dow Jones industrial average gained 936 points, or 11 percent, the largest single-day gain in the American stock market since the 1930s. The surge stretched around the globe: in Paris and Frankfurt, stocks had their biggest one-day gains ever, responding to news of similar multibillion-dollar rescue packages by the French and German governments.

Treasury Secretary Henry M. Paulson Jr. outlined the plan to nine of the nation’s leading bankers at an afternoon meeting, officials said. He essentially told the participants that they would have to accept government investment for the good of the American financial system.

Of the $250 billion, which will come from the $700 billion bailout approved by Congress, half is to be injected into nine big banks, including Citigroup, Bank of America, Wells Fargo, Goldman Sachs and JPMorgan Chase, officials said. The other half is to go to smaller banks and thrifts. The investments will be structured so that the government can benefit from a rebound in the banks’ fortunes.

President Bush plans to announce….

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http://www.nytimes.com/2008/10/14/business
/economy/14treasury.html?_r=1&hp&oref=slogin

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Asian Markets Soar On Signs of Renewed Hope

By JEREMIAH MARQUEZ, AP Business Writer 18 minutes ago

HONG KONG – Asian markets soared for a second day Tuesday, led by a record 14 percent jump in Tokyo, after Wall Street rallied from its worst week ever on optimism that government rescue efforts will heal the crippled global financial system.

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http://news.yahoo.com/s/ap/20081014/ap_on_bi_ge/world_
markets;_ylt=AhU9ssfZ2fvgiOjAnyoc0oSs0NUE

A businessman walks past an electonic board showing the Hang ...
A businessman walks past an electonic board showing the Hang Seng Index. Global stock markets staged spectacular gains Monday as governments pumped hundreds of billions of dollars into banks crippled by the credit crunch, coaxing newly confident investors to buy shares.(AFP/Mike Clarke)

A South Korean woman passes a foreign exchange facility in Seoul. ... 
A South Korean woman passes a foreign exchange facility in Seoul.(AFP/File/Jung Yeon-Je)

Bush says anxiety feeding market instability

October 10, 2008

By TERENCE HUNT, AP White House Correspondent
October 10, 2008

WASHINGTON – President Bush said Friday that the government’s financial rescue plan was aggressive enough and big enough to work, but would take time to fully kick in.

“We are a prosperous nation with immense resources and a wide range of tools at our disposal … We can solve this crisis and we will,” Bush said in brief remarks from the White House Rose Garden.
President George W. Bush speaks about the global financial and ... 

Bush spoke as leaders of the world‘s leading economies gathered in Washington amid frozen credit markets, panic selling in stock markets and a looming global recession.

The president noted that major Western economies were working together in an attempt to stabilize markets and end the spreading panic.

“Through these efforts, the world is sending an unmistakable signal. We’re in this together and we’ll come through this together,” Bush said.

Finance ministers and central bankers from the Group of Seven — the United States, Japan, Britain, Germany, France Italy and Canada — were here for a weekend meeting. Bush plans to meet with the leaders on Saturday.

Bush said he understood how Americans could be concerned about their economic future, “that anxiety can feed anxiety and that can make it hard to see all that’s being done to solve the problem.”

Fears of U.S. Recession Deepen Rout of Stocks

October 10, 2008

By Renae Merle, Michael A. Fletcher and Neil Irwin
Washington Post Staff Writers
Friday, October 10, 2008; Page A01

Fear and foreboding took hold on Wall Street yesterday, as the stock market again plunged and investors became convinced that the nation is on the verge of a deep and prolonged recession. The rout continued in Japan, where stocks plummeted in early trading today.

The government took steps toward an extraordinary public investment in U.S. banks, and General Motors stock fell to its lowest price since 1950 on fears it will not be able to weather the downturn. Share prices fell across every industry and for each of the 30 stocks in the Dow Jones industrial average, which was down 679 points, or 7.3 percent, to 8579.19.

But the plummeting stock market could not be blamed on any single piece of horrible news — there were no additional bank failures or government bailouts or corporate bankruptcies.

“I’ve never seen a panic like this,” said David Wyss, chief economist at Standard & Poor’s. “I’ve seen stock market drops, but not an overall panic.”

The broad Standard & Poor’s 500-stock index fell 7.6 percent, the seventh consecutive day of misery on Wall Street. The index has now fallen 42 percent from its all-time high one year ago yesterday and 22 percent this month alone. Stocks are on track for their worst calendar year since 1937.

Fear from Wall Street flooded Asia today, where markets were sharply lower in early trading. Japan’s benchmark Nikkei average plunged more than 10 percent in the morning session, while Australian markets slid more than 7 percent and South Korean stocks fell as much as 8 percent.

“It’s a domino effect. Stocks are falling out of bed. There is distrust in the market and distrust in the government that is trying to heal this,” said Peter Cardillo, chief market economist with New York-based Avalon Partners.

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http://www.washingtonpost.com/w
p-dyn/content/article/2008/10/0
9/AR2008100901205.html?hpid=topnews

Wall Street’s crisis hitting small business

March 29, 2008
By Ron Scherer

New York – The ripple effect of the financial turmoil on Wall Street is spreading more deeply into the American economy.
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The local hardware store is finding it more difficult to get the loan it needs to buy its summer gardening merchandise. Ivy-covered colleges and universities are finding that donors have second thoughts about contributions until the stock market quiets down. Some small businesses that count on using credit cards to finance their business are getting letters informing them of reductions in their credit lines or increases in their rates.

“Wall Street’s woes are increasingly giving Main Street the blues,” says Mark Zandi, chief economist at Moody’s Economy.com.

One sign of the blues on Main Street: consumer-confidence surveys. On Tuesday, the Conference Board said that consumer confidence had dropped to a level not seen since the recessions of 1980 and 1973.

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http://news.yahoo.com/s/csm/20080328/ts_
csm/aeffects;_ylt=AvY
DzAXWy6OzgETWsJd8Zaes0NUE

Oil Futures Shoot Past $100 Per Barrel

January 2, 2008

NEW YORK (AP) — Crude oil prices soared to $100 a barrel Wednesday for the first time, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will outstrip supplies.

Surging economies in China and India fed by oil and gasoline have sent prices soaring over the past year, while tensions in oil producing nations like Nigeria and Iran have increasingly made investors nervous and invited speculators to drive prices even higher.

Violence in Nigeria helped give crude the final push over $100. Bands of armed men invaded Port Harcourt, the center of Nigeria’s oil industry Tuesday

President Bush Lost Credibility, Confidence

September 6, 2007

By John E. Carey
Peace and Freedom
September 6, 2007

It seems obvious to just about all American voters: Bush lost all credibility somewhere after the terror attacks of September 11, 2001. He couldn’t or didn’t regain it thus becoming one of the presidents’ with the lowest public support polling numbers in history.

I like President Bush. But when the American people believe you have lost just about all credibility their confidence goes down the drain quickly.

Just yesterday, when a reporter asked Senate Majority Whip Richard J. Durbin about the impending report from General David H. Petraeus on the “surge” in Iraq, he answered, “The Bush report?”

“We know what is going to be in it. It’s clear. I think the president’s trip over to Iraq makes it very obvious,” the Illinois Democrat said. “I expect the Bush report to say, ‘The surge is working. Let’s have more of the same.'”

For right or wrong, President Bush has become the “more of the same” president. As a result, Hillary Clinton and others are running for the White House under a one word banner: “CHANGE.”

I asked a friend who is a registered Republican what he thought about Vice President Cheney and he said (I am paraphrasing a little here) “Cheney represents the worst aspect of American politics. Cronyism. Special interests influencing the White House. Halliburton. Waste fraud and abuse. Lying to the American public. You cannot trust this guy and he has tremendous influence over President Bush.”

Cheney, to many, is the Emperor of the Evil Empire. Karl Rove was just the executioner.

Vice President Cheny was my “boss” in a way at one time while he served as Secretary of Defense (during the first war in Iraq) and I served as a Naval Officer. But Mr. Cheney lost me when he made a long-winded “over the top” defense of President general Pervez Musharraf of Pakistan on “Meet the Press” on Sunday, September 10, 2006. You have to read for yourself the transcripts (see references at the end).

Mr. Cheney is also close to President Karzai of Afghanistan. Mr. Karzai has made no secret of the fact that he believes the Taliban, al-Qaeda and perhaps Osama Bin Laden himself are hiding out in the tribal areas of Pakistan: the land governed by President General Pervez Musharraf. The tribal areas are along Pakistan’s border with Afghanistan. They form, as the name implies, a semi-autonomous region. Pakistan’s Army does not venture into the tribal areas without severe trepidation.

For more than a year, we at Peace and Freedom have had an almost daily dialogue with journalist Muhammad Khurshid from Khar, Bajaur Agency, Tribal Areas Pakistan. Muhammad has given us at Peace and Freedom, and we hope, many readers, an appreciation for Pakistan, President General Musharraf and especially the tribal areas.

Muhammad I trust. Mr. Cheney: no.

Mr. Cheney was also involved in “the great research project” which prompted the administration to practically guarantee that Saddam Hussein had weapons of mass destruction and intended to use them. CIA Director Tenet told a room full of Oval Office luminaries this fact was a “slam dunk.” Mr. Tenet lost his job, not too long after that, and was smeared, some say, by the White House as a man without credibility or merit.

Cheney also engineered Secretary of State Colin Powell’s dissertation before the United Nations on Iraq, Saddam Hussein, weapons of mass destruction and the CIA’s “proof.”

Mr. Powell also lost his job and may have been the victim of a smear campaign engineered by the White House. Powell was “thrown under the bus.”

But it is President Bush himself who has disappointed most. Remember, “Brownie, you are doing a heck of a job” after Hurricane Katrina? He lost his job soon thereafter also.

Remember, “I looked into Putin’s soul and saw a man I could do business with”?

Just yesterday, President Bush said of China’s Hu Jintao, the architect or banker, perhaps, of the genocide in Darfur, “He’s an easy man to talk to. I’m very comfortable in my discussions with President Hu.”

President Hu regularly stabs America in the back at the United Nations and elsewhere. The fact that he smiles and is an affable lad is not relevant.

Mr. Putin and President Hu Jintao just cooperated in the largest combined Chinese-Russian military maneuvers ever. They also hosted an international conference that gave the podium to the likes of President Ahmadinejad of Iran. He naturally attacked the U.S. in his speech.

But President Hu is really best known as the villain in the worst Human Rights abuses and the worst violations of ecology on today’s planet earth. Never mind what President Bush sees in his soul. Ask Human Rights Watch, Amnesty International, the United Nations, Greenpeace and other international human rights or ecology groups. God will mediate this one.

On China, President Bush has enemies on the left and the right.  The right wing of the Republican Party says Bush is soft on China.  The Democrat left says he does too little for Human Rights.

Remember Don Rumsfeld and Paul Wolfowitz, the architects of the war against terror in the Pentagon? Mr. Wolfowitz, the deputy defense secretary, opened a two-front war of words on Capitol Hill, calling the estimate by Gen. Eric K. Shinseki of the Army that several hundred thousand troops would be needed in postwar Iraq, “wildly off the mark.” Pentagon officials put the figure closer to 100,000 troops.

Neither Rumsfeld nor Wolfie attended General Shinseki’s retirement. But the General, in hindsight, appears to have been right. Rumsfeld retired and Wolfie went to the World Bank where he crashed and burned.

But generally, commentators say, President Bush stands by his people.

President Bush stood by his pal from Texas Alberto Gonzales long past the time most president’s would have summoned, even driven the bus. The president will maybe go down for his loyalty to his guys: but not for his acute judgment.

And who in the United States is responsible for out “Hearts and Minds” effort in the war against terror?

To remind those that don’t even recall: Karen Hughes, another President Bush buddy from Texas.

In 2005 CBS News reported on Hughes’ role this way: “President Bush’s adviser Karen Hughes was named to a State Department post designed to change Islamic perceptions about America.”

And how are we doing on the “Hearts and Minds effort”? Miserable. A total failure (see references at the end about “misunderspinning”).  Ms. Hughes still works at the U.S. Department of State.

President Bush and his vice president are serving out their terms. The next presidential election is a huge one.

But you knew all this. I was the one that only caught on slowly.

Related:
Cheney’s Stand on Musharraf May Yet Be Reversed

Pakistan: Bush Team Ignored Experts

China: ‘Trust but verify’ needed

Cold War Redux?

Permanent President Putin?

Misunderspinning: Hezbollah Honored For Sharp Media Acuity; Where’s Ours?

Where is America’s War of Hearts and Minds?

Bush Again Proves Soft on China

Bush, South Korean President Roh Run Amok