The current recession has become the second-worst in the last half-century and is close to surpassing the severe 1973-75 downturn, according to the Index of Coincident Indicators, based on government data and compiled each month by the Conference Board, a private organization.
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On April 20th, Bank of America announced a first quarter surge in earnings to $4.2 billion. At first blush, it looked like the kind of news that would ignite a stock market rally. Instead, the Dow closed down 289 points. Could it be that, despite the apparent good news, investors don't trust the banks or the economy?
Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients, says commodities bull Jim Rogers. [more]
ZURICH--Tentative hopes that the world economic crisis was easing took a new hit on Wednesday when Switzerland's largest bank UBS said it would cut 11% of its staff and posted a quarterly loss of $1.7 billion. [more]
Reversing its role as the world’s fastest-growing buyer of United States Treasuries and other foreign bonds, the Chinese government actually sold bonds heavily in January and February before resuming purchases in March, according to data released during the weekend by China’s central bank.
Meredith Whitney, the analyst who called the financial crisis months in advance, now says banks soon will recover ever so slightly, but that housing has a long way yet to fall — as much as another 30 percent. [more]
For the first time since record-keeping began, all 50 U.S. states are in recession, according to new numbers from the Federal Reserve Bank of Philadelphia. In the 1982 recession, the previous worst-ever, 43 states simultaneously contracted.
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