The difference is technical, something an accountant would study, but t does answer the questions: Are the nation’s banks sound? And are bank shares a good barometer for the health of the financial system?
In last nights’ speech, Obama addressed the need for tougher financial regulations, to restore trust and accountability within the financial markets. The President – echoing Federal Reserve Chairman Ben Bernanke earlier in the day – spoke directly about the need to resolve the financial crisis if we’re to have any hope of sustaining a recovery, reports Aaron Task on Tech Ticker. The downward spiral has to be broken so that business will resume.
- Financial Select Sector SPDR (XLF): down 26.8% over three months; up 1% over one week
For the month of January, massive layoffs continued: Companies from a wide range of sectors announced tens of thousands of layoffs, including Home Depot Inc. (HD), Boeing Co. (BA), Pfizer Inc. (PFE) and Caterpillar Inc. (CAT). The Labor Department reported that mass layoffs, or job cuts of 50 or more by a single employer, went up to 2,227 in January, says Christopher S. Rugaber for the Associated Press.
Canadian telecom equipment company Nortel Networks Company is bankrupt and plans to cut its work force by 3,200 jobs worldwide. Nortel filed for creditor protection Jan. 14 in Canada and the United States, according to the Associated Press.