A time of financial turmoil
What this means to you
- A spending wake-up call
- Fears of drops in college savings accounts
- Tightening belts in all walks of life
- Thrift stores booming in slow economy
- Experts: Don't panic
- 'They're bailing out everything. . . .This is ridiculous.'
- Charles A. Jaffe: Money market funds holding their ground
- What's an investor to do?
Sunoco refinery worker John Read is delaying his retirement because of the economy. Hang out at home? Play with the grandkids? That's on hold.
The financial meltdown has struck hard at retirement accounts. Many who were counting the days to retirement find that they can't afford to forgo the next paycheck.
Learn what you can do now with The Inquirer's Retirement Guide 2008
Local Impact
Tony Costello and others in the auto industry discovered that consumers stopped buying (Eric Mencher / Staff)
All roads of economic turmoil have intersected these last few weeks at the feet of 63-year-old Tony Costello: Lifelong car salesman, workaholic, holder of an unexpectedly anorexic 401(k) and, now, soon to be unemployed. A record number of new-car dealerships have disappeared.
Regional banking's new look
Changes are coming for Wachovia, Republic First, Citizens and Sovereign Banks.
- The Bank Merger: In a surprise move, Wells Fargo heads off Citigroup at the pass to rescue Wachovia.
- Sovereign will sell itself to Santander
- Hill banks on new bank
- PNC taps rescue fund to buy National City
The Philadelphia region's banking landscape has been turned upside down.
Three of the six biggest banks here are being taken over: Wachovia by Wells Fargo; Citizens Bank by the British government; and Sovereign by its biggest shareholder, Santander of Spain.
Three of the six biggest banks here are being taken over: Wachovia by Wells Fargo; Citizens Bank by the British government; and Sovereign by its biggest shareholder, Santander of Spain.
Understanding what happened
WASHINGTON - The Bush administration asked Congress on Saturday for the power to buy $700 billion in toxic assets clogging the financial system and threatening the economy as negotiations began on the largest bailout since the Great Depression.
The rescue plan would give Washington broad authority to purchase bad mortgage-related assets.
- Economy's dynamic duo
- Bernanke at halftime: Deserving of some credit
To understand the nation’s financial calamity, imagine you own a $200,000 house. You put up the house to borrow $8 M and gamble it all away. Oh, and by the way, the value of your house has crashed. And the government has acted like a rich uncle bailing out you and many others who did the same. Got all that?
Proper risk management gets drummed into students, finance and business-ethics professors said last week. But when times are good, risk and ethics are frequently forgotten amid easy money and greed.
They don't want you to call it a bailout. "We expect that this money will eventually be paid back," President Bush said. Details - like who's in charge - are still being worked out.
Sept. 15: The week started with a hangover
Treasury Secretary Henry Paulson: No Lehman rescue. (J. Scott Applewhite / AP)
The start of a very bad week
After a weekend that opened with the government bailout of Freddie Mac and Fannie Mae, we awoke to the news that investment bank Lehman Bros. had filed for bankruptcy. But wait! Merrill Lynch was to be purchased by Bank of America. The Dow got jittery and shed 504 points.
Sept. 16: AIG becomes an issue
An insurance rescue
The Dow picked up about 140 points, but another company was linked to the financial fallout: insurance giant AIG, which hovered between going backrupt and getting a government bailout. That evening, the Fed agreed to help to the tune of $85 billion - and an ownership stake.
- Taxpayers have $800 billion at risk so far
- Barclays to acquire some units of Lehman
- Wachovia and Goldman Sachs make a good couple
Tuesday's news
N.Y. Stock Exchange on Tuesday. (Richard Drew / AP)
Sept. 17: Another Day of Turbulence
Wachovia's woes
The Federal Reserve kept interest rates steady, but stomachs - and the stock market - were unsettled. The Dow lost 449 points. And another company entered the fray: Wachovia, the Philadelphia region's biggest bank, was in talks with a potential merger partner.
Sept. 18: Bank bailout considered
President Bush spoke, but gave no specifics. (Pablo Martinez Monsivais / AP)
Washington reacts
The Treasury Department said it would come to the rescue of banks caught up in bad debts. AIG, which dropped off the Dow 30, saw its agents trying to assure clients worried about their policies. Meanwhile, the Dow made a late-session run and packed on 410 points.
Sept. 19: Day of relief
For Wachovia customers, business as usual. (Tom Gralish / Inquirer)
Signs from D.C.
The market roared back again, applauding a government ban on some short sales, a pledge to temporarily guarantee money-market funds, and other efforts to ease the pain. Meanwhile, business students have second thoughts. And Wachovia customers adopt an attitude of "What, me worry?"
- Top Jobs
- Top Homes
- Top Cars
|
Old City/Society Hill $695,000 343 S 4th St |
Feasterville $399,900 750 Bridgeview Rd |
- Books
- Movies
- Page Reprints
- Photo Licensing
- Photos
Buy Inquirer, Daily News & Philly merchandise here including:
Ticket Offers
- News | What's Happening | Sports | Restaurants & Food | Arts & Entertainment | Living | Green | Business | Video | Opinion
Site Services:
Classifieds:
- Jobs | Cars | Real Estate | Rentals | Marketplace | Celebrations
Partners:
