Finance Globe

Two more pillars of Wall Street fell over the weekend, shaking any last bit of investors' confidence in the integrity of the global financial system. Stock markets around the world tumbled in response to the failures of the massive companies. And, another pillar is in deep trouble.Lehman Bothers goes bankrupt.Lehman Brothers, the nation's fourth largest investment bank, announced on Monday that it will file for Chapter 11 bankruptcy. The decision for the 158 year-old bank to...

The Fed's Sunday announcement of the takeover of mortgage giants Fannie Mae and Freddie Mac may possibly become the largest government rescue in U.S. history. The cost is high; up to $200 billion of taxpayer money could be used to fund the rescue.But the cost of taking no action and letting the two government-sponsored enterprises (GSEs) fail would have been much higher; their failure would result in the inability for many to gain access to mortgage...

Treasury Secretary Henry Paulson announced on Sunday that the government will take charge of the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), commonly know as Freddie Mac. The two government-sponsored enterprises (GSEs) are responsible for buying or backing about half of all U.S. mortgages, and are vital to the housing market.Referring to the Treasury's earlier plans, in July, to lend additional funds to the GSEs,...

The years of unsolicited junk-mail you've received from credit card issuers and loan companies may have finally paid off. Millions of American consumers could be awarded free credit monitoring services from TransUnion, one of the three major credit reporting agencies in the U.S.A class-action lawsuit accuses TransUnion of selling personal and financial consumer information to third parties for targeted marketing. TransUnion discontinued the practice in 2001 and does not admit to wrongdoing or breaking the law,...

More relief for drivers in the U.S., gas prices are dipping lower for the 7th week in a row. The average price for gas in the U.S. is $3.67 a gallon for regular unleaded. Crude oil prices are down 25%, now at a five-month low. It reached its all-time high of $147.27 in July. Analysts predicted in May that crude oil may top $200 a barrel, but the current price of $109 a barrel tells a...

Inflation rates in the U.S. have risen faster than economists have predicted. According to the Bureau of Labor Statistics of the U.S. Department of Labor, the Consumer Price Index for All Urban Consumers (CPI-U) rose at a rate of 5.6 percent for the twelve-month period through July of 2008. This is the fastest leap in consumer prices since 1991. Producer prices have escalated by 9.8 percent, the most since 1981.A nearly 30 percent increase in the...

According to the U.S. Department of Labor, the unemployment rate rose to 5.7 percent for July, the highest it's been in four years. Non-farm payroll employment continues to trend down, at a loss of 51,000 jobs. Employment continues to fall for occupations in construction, manufacturing, and certain service-providing industries, while mining and health care jobs are being added.The number of unemployed persons has risen by 1.6 million over the last twelve months; currently 8.8 million people...

The White House expects a record-breaking federal deficit.The federal budget deficit for fiscal 2009 is estimated to top a record-high of $482 billion, according to a Bush administration report released on Monday. The last highest deficit record was set in 2004, in the amount of $413 billion.Earlier deficit projections for 2009, released in February, were estimated to be $407 billion. White House officials say that the Economic Stimulus Package is partly to blame for the higher-than-expected...

The new federal minimum wage of $6.55 an hour goes into effect today, which amounts to a $.70 pay raise for the roughly two million American workers who must make ends meet on minimum wage.This increase is the second in a three-year plan to increase the federal minimum wage; minimum wage workers can expect another $.70 wage increase next summer, to bring to federal minimum wage to $7.25 an hour. If the state and federal minimum...

In the midst of a weak economy, high gas prices, falling real estate values, and a slowing job market, we also have to tighten our budget for the rising cost of food. Many have already noticed their grocery bills edging upward; food prices have already risen over 5% this year, increasing at the fastest rate since 1990. And those costs are expected to keep on rising, many types of foods will see another 15% increase in...