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We Didn't Start the Fire: Wall Street Meltdown

Mon, 13 Oct 2008 12:59:20 GMT

clipped by: rmowery

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We Didn’t Start the Fire

October 13, 2008 - 1:52 am PDT - by Pete Cashmore Add a Comment

[Video]

I don’t blame my fellow 20-something tech bambinos for striking the match that burned down our money-tree last week. The VCs aren’t to blame either.

No, if you’re looking for an anthem for the web crash, Journey’s “Don’t Stop Believing” isn’t it. Try instead, Billy Joel’s We Didn’t Start the Fire. Better still, pick the remixed version (above), which points the finger of blame in the right direction.

What makes this doubly apt: we were humming the same tune in the good old days, too.

Tags: wall street, billy joel, meltdown, start fire, cyprus gang, economy

SkyFuel heats up solar thermal power race

Fri, 10 Oct 2008 06:06:46 GMT

clipped by: rmowery

Clip Source: news.cnet.com

SkyFuel heats up solar thermal power race

Even with the teetering economy, solar companies are bullish that tapping free energy from the sun is a solid financial move.

SkyFuel, a company spun out of the National Renewable Energy Laboratory (NREL), on Friday is hosting an event to unveil its solar power plant system: a parabolic trough made from reflective plastic. Colorado Gov. Bill Rittner will speak at the event, held at SkyFuel's research center in Arvada, Colo.

SkyFuel heats up solar thermal power race

Even with the teetering economy, solar companies are bullish that tapping free energy from the sun is a solid financial move.

Tags: skyfuel, solar, parabolic, heat, energy, electric

Charlie Rose Interview with Warren Buffet

Fri, 10 Oct 2008 02:43:29 GMT

clipped by: rmowery

Clip Source: www.charlierose.com

[Video]

Tags: warren buffet, charlie rose, interview, finance, economy

What happens when the money runs out?

Fri, 10 Oct 2008 01:41:55 GMT

clipped by: rmowery
clipper's remarks: So if everyone starts pulling their money from banks, then the whole system collapses? What is keeping people from pulling all their money?

Clip Source: www.newstatesman.com

What happens when the money runs out?

Banks need the confidence of the public to survive and they have lost it for years to come. The danger is that if governments take on their role, they too will lose the trust of the people

We are witnessing the collapse of the world financial system. To have said that even a month ago would have been to invite ridicule, but now it seems only a statement of the obvious as banks implode, governments panic and investors run. The initial liquidity crisis that broke in August 2007 and drove Northern Rock to the wall has evolved into a crisis of insolvency and finally into a crisis of confidence in the entire financial system.

Tags: economy, banking, banks, finance

US debt clock runs out of digits

Fri, 10 Oct 2008 01:34:40 GMT

clipped by: rmowery

Clip Source: news.bbc.co.uk

US debt clock runs out of digits

The US government's debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.

The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.

The board was erected to highlight the $2.7 trillion level of debt in 1989.

The clock's owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.

Douglas Durst, son of the late Seymour Durst - the clock's inventor - hopes to replace the Manhattan clock with its lengthier replacement early next year.

Tags: entertainment, us debt, economy, national debt

World finance chiefs heading for Washington for crunch talks

Fri, 10 Oct 2008 01:33:11 GMT

clipped by: rmowery

Clip Source: www.breitbart.com

World finance chiefs heading for Washington for crunch talks

The Group of Seven meeting will bring together finance ministers and central bankers on Friday from the United States, Germany, Japan, France, Britain, Italy and Canada for some collective-thinking on the credit crunch and crashing stocks.

They are to be joined by counterparts from emerging markets including Brazil, Russia, India and China for an impromptu gathering of the expanded so-called G20 group.

The United States finds itself in a rare position of weakness, facing many allies that have been highly critical of its economic policy and regulatory system blamed for the problems.

The gathering will be closely watched by investors, who are eager to see solutions and cross-border action by the world's leading powers to help a return to normal lending practices and calm stock markets.

Tags: finance, world, global economy, emergency meeting

Is California too big to fail?

Thu, 09 Oct 2008 21:15:43 GMT

clipped by: rmowery

Clip Source: www.marketwatch.com

Is California too big to fail?

Commentary: Let's hope they don't put it to a vote

SAN FRANCISCO (MarketWatch) -- You've got to give California Gov. Arnold Schwarzenegger credit for being the first to stick his hand out.

Even before the vote on the $700 billion bailout bill last week, the wily Terminator of fiscal discipline had a letter on the desk of Treasury Secretary Henry Paulson making the case for a $7 billion loan to keep the nation's most populous state running past October. Arguing that California -- and many other states -- have been frozen out of the credit markets like a subprime homebuyer, Schwarzenegger said the state needs the money to pay teachers, cops, firefighters, nurses, and other state-funded enterprises of some importance.

Tags: california, government, failure, economy, schwarzenegger, credit

Apple’s $800 Laptop Set to Debut

Thu, 09 Oct 2008 18:55:20 GMT

clipped by: rmowery

Clip Source: truemors.nowpublic.com

Apple’s $800 Laptop Set to Debut

Has Apple finally opted to target consumers not willing to drop more than $1000 on a laptop? Seems so, or at least according to an exclusive piece over at Inquisitr, that claims a source confirms that Apple retailers have received a price sheet detailing 12 price points for the latest laptops with costs ranging from $800 to $3100. With a crappy economy and Apple’s surge in popularity amongst poor college kids, it seems like a likely and smart move for Steve Jobs and Co.

Tags: apple, sub $1k, apple computer, mac, retail

Wealthy Are Afraid They’ll Run Out of Money

Thu, 09 Oct 2008 14:57:52 GMT

clipped by: rmowery

Clip Source: blogs.wsj.com

Wealthy Are Afraid They’ll Run Out of Money

It’s not just the middle class that has money worries. Even the affluent are worrying about running out of cash.

According to a new survey from American Express Publishing and the Harrison Group, nearly half of respondents with incomes of $250,000 or more agreed with the statement that “I worry that at some point I could run out of money.” That’s up from about a third in April.

Fully 69% agreed with the statement that “The recent real estate and banking crisis has affected my sense of financial security.”

Of course, $250,000 is only “Obama wealthy.” And running out of money “at some point” is a long time horizon. Yet the survey suggests that even high-income earners are cutting back their spending for fear of what the financial future might bring. Fully two-thirds say that they are “looking closely at every spending category to see where I can save.”

Tags: wealthy, middle class, money, finance, economy

Inventories of Houses Fall Slightly

Thu, 09 Oct 2008 14:56:21 GMT

clipped by: rmowery

Clip Source: online.wsj.com

Inventories of Houses Fall Slightly

The number of homes listed for sale declined slightly in many metropolitan areas last month. But inventories remain well above normal levels, and foreclosures continue to weigh on home prices.

The supply of homes available for sale in 29 major metropolitan areas in September was down 1.6% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The ZipRealty data cover all single-family homes, condominiums and town houses listed on local multiple-listing services in metro areas where the firm operates.

On a national basis, home inventories typically decline in September from August. Over the past 25 years, the average decline during September has been 3%, according to Zelman & Associates, a research firm.

Tags: housing, inventories, housing market, house sales, economy

Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water'

Thu, 09 Oct 2008 14:50:15 GMT

clipped by: rmowery

Clip Source: online.wsj.com

Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water'

More Defaults and Foreclosures Are Likely as Borrowers With Greater Debt Than Value in Their Homes Are Put in a Tight Spot

The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year.

The result of homeowners being "under water" is more pressure on an economy that is already in a downturn. No longer having equity in their homes makes people feel less rich and thus less inclined to shop at the mall.

And having more homeowners under water is likely to mean more eventual foreclosures, because it is hard for borrowers in financial trouble to refinance or sell their homes and pay off their mortgage if their debt exceeds the home's value. A foreclosed home, in turn, tends to lower the value of other homes in its neighborhood.

Tags: homeowners, housing, credit, foreclosures, negative appraisal

Taking Hard New Look at a Greenspan Legacy

Thu, 09 Oct 2008 07:59:51 GMT

clipped by: rmowery

Clip Source: www.nytimes.com

Taking Hard New Look at a Greenspan Legacy

“Not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.” — Alan Greenspan in 2004

George Soros, the prominent financier, avoids using the financial contracts known as derivatives “because we don’t really understand how they work.” Felix G. Rohatyn, the investment banker who saved New York from financial catastrophe in the 1970s, described derivatives as potential “hydrogen bombs.”

And Warren E. Buffett presciently observed five years ago that derivatives were “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”

Tags: greespan, economy, derivitives, money, soros, buffet

Weird "Al" Yankovic on the Economy - Whatever You Like

Thu, 09 Oct 2008 07:58:09 GMT

clipped by: rmowery
clipper's remarks: LMAO -- the lyrics are a riot!

Clip Source: www.youtube.com

"Weird Al" Yankovic - Whatever You Like

[Video]

Tags: weird al, lyrics, whatever you like, economy, entertainment, music

Angel investor Ron Conway to portfolio: Cut expenses now

Thu, 09 Oct 2008 07:26:36 GMT

clipped by: rmowery

Clip Source: news.cnet.com

Angel investor Ron Conway to portfolio: Cut expenses now

Ron Conway, an investor in more than 100 contemporary tech start-ups and about that many in the last tech boom, sees the current financial environment as very similar to the 2000-2001 tech economy meltdown. His advice, as he laid it out to me earlier today and to his portfolio companies yesterday in an e-mail (after the jump), is the same as it was then: "Raise money internally by reducing cost."

He says, "The funding climate is going to tighten no matter what we do. The sooner we can prepare for it, the better."

At least, he says, entrepreneurs are more mature and proactive than they were in the last downturn. They're coming to him, some with cutback plans and some just seeking advice. As he puts it, the ones who come to him and say, "Walk me through the steps I should be taking," are the ones that will weather the storm.

Tags: ron conway, angel investing, money, funds, vc, startup

A Ladder of Annuities Can Hedge Your Bets

Thu, 09 Oct 2008 07:18:22 GMT

clipped by: rmowery
clipper's remarks: This is something I don't really understand -- Annuities, but from the outside looking at this, it looks like another area where things could crash?

Clip Source: www.kiplinger.com

A Ladder of Annuities Can Hedge Your Bets

Smooth out the highs and lows of interest rates, and payouts, by staggering annuity purchases.

In today's low interest-rate environment, locking up a big chunk of your portfolio in a fixed immediate annuity may not seem wise. But if you like the security of guaranteed payments and you believe rates will rise in coming years, you can hedge your bets by laddering annuities.

As with ladders of bonds or certificates of deposit, the strategy calls for buying fixed immediate annuities over a period of time. Instead of spending a lot of money on a single annuity that locks you into one rate for your lifetime, you split your money among several. Perhaps you buy an annuity every year for five years, or every five years over the next 15 years.

Tags: annuities, hedge, life, insurance, economy, income, investment