This past summer's subprime meltdown involved about $900 billion in now-suspect securitized debt, reckless lending, and consumers who buckled under the weight of loans they couldn't afford. Now another link in the consumer debt chain - credit cards - is starting to show signs of strain. And the fear that the $915 billion in U.S. credit card debt (an uncannily similar figure) may blow up has major financial institutions like Citigroup, American Express, and Bank of America strapping on their Kevlar vests.
The Dow slipped and the broader market was mixed Tuesday, at the end of a choppy session in which investors showed caution ahead of an expected interest rate cut from the Federal Reserve Wednesday.
Question: Why is it that most retirement calculators don't factor in the fact an investor would normally transition into bond and money market funds as retirement approaches? Moreover, few articles address how a flat or declining market in the year before retirement could affect the size of one's nest egg. What's an investor to do? - Peter Binoto, Pittsburgh, Penn.
Taking on the top job at Merrill Lynch could turn an executive into a Wall Street legend, but it also has the potential to ruin anyone who takes the CEO post from the just-departed Stanley O'Neal. That stark choice may be one of the reasons Merrill hasn't lined up anyone just yet to lead the firm out of the crisis sparked by large losses from junk mortgages.
Could a Federal Reserve interest rate cut on Wednesday be the trick that treats tapped-out consumers to more spending money during the critical holiday shopping season?
Lawmakers are looking to pass $71 billion worth of tax-break extenders this year. Most politicians support the extensions, but how to pay for them is another matter entirely.
Saks, known for selling high-priced handbags and designer apparel to wealthy shoppers, may find its richly valued stock price a hindrance to its biggest sale yet: that of the company to a pair of foreign investors.
After a notable 21-year career at Merrill Lynch &Co., Stanley O'Neal stepped down Tuesday as chairman and CEO, less than one week after the firm stunned Wall Street by revealing an $8 billion loss on risky investments in subprime mortgages.
As more airlines upgrade their first class offerings with soft sheets, big beds and a lot more privacy, the jet set may just be tempted to fly commercial.
