October 2008

Manufacturing Sharp Decline

Manufacturing shrinks to lowest level since 2001:

A measure of U.S. manufacturing activity contracted more than expected last month, hitting the lowest level since the aftermath of the Sept. 11 attacks, as new orders slowed dramatically.

The Institute for Supply Management on Wednesday released a September reading of 43.5, the lowest level since October 2001. The reading dropped from 49.9 in August, the largest one-month decline since January, 1984, when it fell to 60.5 from 69.9.

A reading above 50 signals growth.

Financial Times notes:

Senate Bail Out Bill Text

Attached is the actual Senate Bill. It's 451 pages.

I'll post analysis and update this as I find them.

Still appears to bail out foreign banks. Has a SEC suspension of the mark-to-market rule. I believe people focusing on on this is a smoke screen. The real issue is the pricing of assets and how does that unclog the credit markets?

It's still seemingly paying possibly way too much on worthless assets and on top of it...

The mark-to-market rule is supposed to be in place of the Paulson bill, not with the Paulson bill which implies even more the US taxpayer will pay way too much for these assets.

Either they have the assets be completely transparent if the US taxpayer is on the hook for them OR they allow the banks to muddle the accounting for a moment as a stop gap.

Lobbyists Surround the Hill - Demand Their Bail Out

While faxes, emails and outrage clog Congress's communication system, lobbyists are swarming the hill with unfettered access.

The U.S. Chamber of Commerce threatens Congress with retribution if they do not pass their bail out.

the U.S. Chamber of Commerce launched 30-second radio ads in the Washington area aimed directly at lawmakers

Peter DeFazio describes one Lobbyist from Morgan Stanley just threw out a funding solution used in the past by claiming Wall Street Wouldn't Like It.

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