Economy shrinks at fastest pace in 26 years

” What can be said for these depression like times. Supply side inventory shrinking. Natural business cycle.”
WASHINGTON (AP) — The economy contracted at a staggering 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession.
The Commerce Department [...]

Time for creativity and some joint collaborations …..

Two thumbs up for Fidelity Investments. The company has entered into agreement with American Express, which allows customers to earn retail purchases rewards and transfer them to their IRA accounts. Clients will earn $0.02 per each dollar spent. In the midst of current trouble markets, this seams like a wonderful idea allowing investors to continue [...]

$1…You Can Stay.

The New York Stock Exchange will temporarily suspend share price and market capitalization rules for its listed companies until July 30. This comes in midst of the deepening market sell-off. The market operator said it will also extend a temporary lowering of its market capitalization standard, which it introduced last month to stem a growing [...]

And Down We Go!

After this morning’s announcement value of Citigroup shares went down to 1.20 in the premarket. Treasury department announced that it will convert some of the preferred stock it holds into common stock – around $25 billion of preferred shares. Such conversion will increase government’s stake in company to around 38%.

Economic Calandar for 02/27/2009

8:30 GDP (preliminary)
9:45 NAPM Chicago Business Barometer
9:55 University of Michigan Consumer Sentiment
10:15 Fed’s Yellen and Bullard speak on oil and the economy
1:30 PM Fed’s Rosengren and Plosser speak on monetary policy
3:00 PM Farm Prices

JP Morgan to cut 12000 jobs

In the latest update to the JP Morgan / Washington Mutual acquisition, JP Morgan has announced today that it will cut 12,000 jobs which is expecting to net about $2 Billion in savings.
There is no word yet on the employees to be let go, but in this market a number of lower producing advisors [...]

Broker Recuits being Sued over customer info

A lawsuit was recently filed against Janny Montgomery Scott by Smith Barney for violating the “protocol for recruiting brokers’. The lawsuit is seeking a temporary restraining order against four former advisers and Janney which hired them to get back customer information.
Janney has had a successful run in recruiting new advisers, hiring recruits with average [...]

The do it yourself approach

Phoenix Wealth Survey reports that more and more high net worth clients are saying good-bye to their advisors. There is a wide spread pessimism. It was reported that the number of investors functioning without financial advisors has risen over 40%. In current economic crisis and shocking scandals recently surfaced, such as the Madoff Ponzi Scheme, [...]

Hollywood firm accused of $1.5 million fraud

Fraud is rampant in a recession or is it just made transparent? Or did Madoff make the SEC start doing their job. What do you think?
Hollywood-based Zurich Futures & Options and company official Michele LaBruce are accused in a federal lawsuit of defrauding nearly $1.5 million from at least 60 customers.
The Commodity Futures Trading [...]

Erroneous Order

Talk about bad order huh. Yesterday UBS AG’s Japanese brokerage unit by mistake placed order to buy and sell $31 billion worth of convertible bonds issued by Capcom Co (videogame makers). UBS spokesperson said that these two orders took place due to computer glitch……hmmmmmmmm

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