When saving is bad

Before the financial crisis hit, some of the brightest economic minds were worried about three things: the housing bubble, greater complexity on Wall Street, and the savings crisis. In 2007, the housing bubble burst. In 2008, Wall Street unraveled. In 2009, it’s Act Three, according to Big Money’s Mark Gimein:

Thanks to the catastrophic savings deficit of the last decade, we now have on our hands a spending and credit crisis that will make our recession much harder to solve.

• Jan 6, 2009 10:38 AM PT — Doug Krizner
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Broken billionaire

One of Germany’s richest investors committed suicide today, after his business empire began to crumble under mounting debt. Reuters quotes the statement from Adolf Merckle’s family:

“…the uncertainties of the last few weeks and his powerlessness to act, have broken the passionate family entrepreneur and he took his own life.”

• Jan 6, 2009 9:44 AM PT — Doug Krizner
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Net worth-less

U.S. households worth at least $1 million have seen their assets drop 30% during the financial crisis, according to a new report from Spectrem Group. But what about the really big fat cats? Clusterstock has produced a slide show featuring Wall Street’s 15 biggest money losers.

• Jan 6, 2009 7:45 AM PT — Doug Krizner
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$50 a barrel

The dispute between Russia and Ukraine over natural gas has pushed crude oil prices to 5 week highs. Bloomberg quotes Olivier Jakob of Petromatrix:

“If a solution for a return to normality is not found very quickly, this should result in incremental demand on fuel oil, naphtha, heating oil to substitute for the missing natural gas.”

• Jan 6, 2009 5:55 AM PT — Doug Krizner
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What a lemon

December was a disastrous month for car sales — major automakers posted declines of between 30% and 40%. The Wall Street Journal reports 2008 was the auto industry’s worst year in more than 15 years.

The entire industry, including Japan’s Toyota and Honda, is now reeling from the spiraling effects of the U.S. housing crisis, tight credit and worries about a lengthy recession.

• Jan 5, 2009 12:14 PM PT — Doug Krizner
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Less glitz for gadgets

The world’s largest consumer electronics show opens this week in Las Vegas. DailyTech reports the CES is expected to become the latest victim of the bad economy, with fewer manufacturers, retailers and consumers expected to attend.

Where last year featured massive 150-inch prototype TVs and focused on big, those showing this year will be shifting their focus to lean. Green items and small money-saving gadgets are expected to be the hot tickets as consumers’ wallets tighten.

• Jan 5, 2009 11:22 AM PT — Doug Krizner
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