Total Global Meltdown
Worries in the oil patch
And finally, because he specializes in refined petroleum products and sees the sales figures daily, Emilio said he suspects the accelerating global slowdown will slash demand for gasoline and heating oil to the extent that major U.S. refiners like Tesoro (TSO) and Valero Energy (VLO) may face the greatest financial challenges of their lives, potentially to the extent that the government will be forced to nationalize them.
He points to the sharp drop in miles driven in the United States; the $25 billion federal loan to automakers to develop more-fuel-efficient cars; and the massive, sophisticated new refinery being built in India that’s expected to produce as much as 20% of world supply when it comes fully on line — dwarfing the increasingly old-fashioned U.S. refineries. “There’s just a lot more molecules coming into the gasoline pool from overseas,” he said, “and that has to put our refiners in a bind.”
full story (in case they don’t have TV and newspapers where you live)
Yeah, it’s a breakthrough alright.
First, you crash your 158 year-old firm into an iceberg. Then the FBI shows up and wants to know whether you committed fraud while doing it.
We’ve felt bad for Dick Fuld ever since Lehman met its shocking end (Yes, it was his fault, and, yes, we feel worse for everyone else at the firm). And now we really feel bad for him.
Alternatives to administration’s approach
Leading economists argue that other solutions could address financial crisis
But the market got a big dose of good news after the close when Berkshire Hathaway, headed by legendary investor Warren Buffett, said it would invest $5 billion in preferred stock in Goldman Sachs. Goldman Sachs will also raise $2.5 billion in common stock.
Thanks to the Buffett news, Goldman Sachs shares were up 7.8% to $134.75 in after-hours trading after closing up 3.5% to $125.05 in regular trading. The Select Sector SPDR-Financial exchange-traded fund was up 3.4% to $21.19 after-hours; the ETF had closed at $20.49.
As important, the news sets the stock market up for a rally at the open. Futures prices in the S&P 500 and the Dow jumped on the news and suggested, as of 8 p.m. ET, that the Dow could open with a gain of roughly 120 points to around 10,970. The S&P 500 was looking at a 15-point gain at the open to 1,202.