Thursday, October 2, 2008

Market Update

Another disaster in the market. Dow down 348 (3.22%) to close at 10,482. S&P was down 4.03%. NASDAQ down 4.48%. The market is down or up triple digits everyday. Mostly down.

FAF got hammered- off 10% to close at $27.25 (down over $3).

GE got pounded also- off 9.5% to close at 5 1/2 yr low. GE sold $3 Billion worth of preferred stock to Warren Buffett on Wednesday at a price of $22.25 per share. Today, they announced a secondary offering of $9 billion worth of shares at a discounted price of $22.25 (same price given to Buffett yesterday). GE closed at $24.50 yesterday. The market quickly reacted to the secondary discounted offering bringing the shares down to close at $22.15. Way to go management! Way to think of the shareholders! horrible.

Congress votes tommorrow on the $700 Billion bailout bill tommorrow. It is expected to pass this time.

Some interesting quotes I read from Warren Buffett today describing the state of the economy:

"This really is an economic Pearl Harbor,"
Buffett said. "That sounds melodramatic, but I've never used that phrase before. And this really is one."

"In my adult lifetime, I don't think I've ever seen people as fearful economically as they are now."

He's hoping for the Bailout to be passed tommorrow-

If Congress doesn't approve the bailout plan soon, then "I will have done some dumb things."

In good news, I closed a $4500 deal today at work. Loan Modification company.

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