The average price of gas across the U.S. dropped under $2, the lowest in over three years. Crude oil has been in a free fall after losing over two thirds of its value since July. Some are predicting oil prices to drop below $40 and gasoline falling below $1.50.

As part of a 2-year stimulus package, President elect Obama stated that he aims to create 2.5 million new jobs. Obama stated in his weekly address that the "financial markets faced more turmoil," which may lead a "deflationary spiral." New home purchases in October fail to the lowest in half a century, and 540,000 more jobless claims were filed last week, the highest in over 18 years. Obama stated,... More

The unemployment rate in California rose unexpectedly to 8.2 percent in October. The rise brings the unemployment rate to the highest for the state in 14 years, and the state's unemployment fund is about to run out of reserves. State officials are planning to ask the Federal Government for a loan in order to be able to keep paying unemployment benefits.

The U.S. unemployment rate continues to rise with some analysts predicting unemployment numbers as high as 8.5 percent by the end of 2009. The unemployment rate was 6.5 percent in October; however, more industries are expected to introduce more job cuts. Retail, transportation, hotels, and restaurants are expected to be among the hardest hit.

The Federal Reserve now expects the recession to last as long as one year with the risk that the slowdown may last even longer. Federal governors warned that the economy is expected to contract throughout the rest of this year and the first half of 2009. A year long recession would make this the longest recession since the 16-month recession in 1981.

President Bush stated that he is now pleased with the progress being made with world leaders over the financial crisis; however, he warns of the dangers of protectionism. Leaders from 20 of the worlds largest economies are meeting in the Washington summit in order to establish a plan to increase confidence in the financial markets around the world.

The Dow Jones Industrial Average was down for the third day in a row on Wednesday. Paulson backed away from buying up mortgage assets sending stocks down further. Best Buy also slashed their earnings outlook on concerns that consumer spending will be slow this holiday season. Shares of GM and Ford closed higher on hopes for a government bailout.

The unemployment rate rose to 6.5 percent in October as nearly 240,000 workers were laid off during the month. Also revisions to the previous month increased the September number to 284,000. Thus far the economy has lost approximately 1.18 million jobs this year alone.

Democrats making it their mandate to create their own stimulus packaged aimed at helping middle class citizens early next year. The plan could include as much $100 billion in new tax cuts. Meanwhile central banks around the world continue to cut rates. The bank of England cut its rates to 3 percent, the lowest in over 50 years.

Ben Bernanke stated that continued Government involvement is needed in order for the public mortgage-securities business to recover. There is much debate on how the Government will operate or insure Fannie & Freddie after the financial market crisis is over. Bernanke stated that a government backstop or insurance program must be considered if Fannie & Freddie were to be privatized. Another option... More

Ben Bernanke, stated that greater regulations for home mortgages would be "high on the policy agenda." The development of a new system that would allow deserving borrowers to obtain home mortgages without adding unnecessary additional risks to the nation's financial system needs to be top priority, and that the recent bailout of Fannie Mae and Freddie Mac provides an opportunity for reviewing the... More

The U.S. gross domestic product declined by 0.3 percent as the largest pullback in consumer spending since 1980 overwhelmed an increase in government spending. The drop in GDP was anticipated, and the decline was not as great as feared, easing investors who bid up stocks in hopes that interest-rate cuts by central banks around the world would stop a deep downturn.

The Federal Reserve cut the federal funds rate by a half of a percentage point to 1 percent. Analysts had expected the half point basis drop in order to deal with the worst U.S. economic downturn in decades.

The U.S. dollar fell for the second day against the euro on bets that the Federal Reserve may cut interest rates as much as 75 basis points tomorrow. According to a survey, the U.S. gross domestic product is expected to decline by 0.5 percent for the third quarter, which if true will be the biggest decline since the 2001 recession.

According to the S&P Case-Shiller Home Price index, home prices fail by another 1.1 percent in August. This is the 25th consecutive month in a roll that home prices have dropped, and in the past twelve months home values have sunk 17.7 percent.