Daily Intent

   1. The world economic super powers united on an interest rate cut to spur the world economy.  The US Fed lowered their overnight lending rate .50%.  And they’re set to lower it again in the coming weeks.   Europe and Russia experience significant banking and market pains.  Iceland even made headlines.
   2. $700Bn Rescue package passed into law.  What is done with it is still in question.  Meanwhile: 770, 350, 270, 115, 650, 100 = Dow daily drops in the last week and a half.    CNBC is loving the attention.  It feels like a game of “flyer’s up” is in the works. “500!”
   3. Bank of America / Countrywide commits to helping an additional 390,000 borrowers.  The government asks other banks to follow suit.
   4. Housing Numbers: Pending sales were up 7.4 percent in August in comparison to July.  The hardest hit areas of CA, NV, AZ and FL performed well. Jobless claims numbers come in a touch under Sept 11th, 2001 numbers.
   5. General Electric Co. got a $3 billion investment from Warren Buffett.  One of the biggest hedge funds out of Greenwich, Conn., Tontine Associates, is down 65% on the year.  This is a $10Bn fund!
   6. The Dodgers dominated the Cubbies, take on the Phillies NLCS tonight!  Red Sox continue their late post-season greatness.  Preseason NBA basketball underway.  College football: Sooners return to the top.  USC top 10. UW?  OSU Beavers you’re scary.

Positives:

    * The low end of the housing market appears to be nearing a bottom.  The numbers are indicating people jumping back into this market.  Applications and prequalifications are up for this sector.  The high end is waiting for their turn.
    * The Dodgers.  Even if you are not a Dodgers fan, do you really want to see any of the other teams take the title?  The Dodgers have the fun loving Manny Ramirez!
    * Steps are being taken to turn this massive economic ship around.  This is going to take time.  Be patient.  Be smart with your funds.  Be smart with your income earning abilities.
    * Warren Buffet sees opportunity amidst the ambiguities.  Might you be able to find a few on a smaller level?
    * Oil prices have come down significantly.  $88 / Barrel. Down from a high of $147 a few months back.  Gas savings.

Negatives:

    * The global markets are under intense stress due to the United States slowdown.  This has been proven in the way the markets responded to the announcement of global rate cuts.  Markets continued downward.  $1Trillion wiped off books in one day of trading.  Being that they are all interlinked in this 21st century, global cohesive action is ever more important.  AIG was supposedly saved for this reason and the lowering of rates was done with similar motives.  One falls, the US, they all fall.
    * Jobs are hard to come by.  Businesses are pulling back their hiring until they see reason for better skies ahead.
    * The credit markets continue to seize up.  The LIBOR index continues high interest rates despite the lowering of the Bank of England’s rates along with ours.  Mortgage Bank Securities have few investors, so we’re seeing spreads on mortgage rates abnormally high.

Local:

Creating a Sustainable Future for Life on Earth - Dr. Richard Leakey
Where: SB Museum of Natural History
When: Friday, Oct 10th.  7pm
Cost: $25 -$100
Why:  Very influential presenter.   Continue to inform yourself about this oft talked about subject.

Live and Be Well,

Jeff Bochsler