Economic News - October 2, 2008

The biggest economic news of the day didn't happen until mid-evening when the US Senate passed the $700 billion package to allow the Treasury to backstop bad mortgage debt held by US banks. Since the measure passed, Dow Jones Industrial Index Average futures have dropped 115 points.

Senate Vote Gives Bailout New Life

The Senate's revamped bailout package drew support from 74
lawmakers in a roll call vote. The measure will now return to the
House, where it was unexpectedly defeated, for another vote on Friday.

Weekly Mortgage Applications Survey - October 1, 2008

• Market Composite Index: 455.4


• Change: Down 23%


• Purchase Index: 304.8


• Change: Down 10.9%

Manufacturing Report on Business - September 2008

• Purchasing Managers Index (PMI): 43.5


• 50+ represents growing economic conditions


• Monthly Change: down 6.4


• Inventories: 43.4

Help Wanted Online Data Series - September 2008

• Online Advertised Vacancies: 4,418,000


• Monthly Change: Down 4.7%


• Year-to-year Change: Up 3.5%

Construction Spending - August 2008

• Total Construction Spending: $1,072.1 billion


• Monthly Change: None


• Year-to-year Change: Down 5.9%

ADP Employment Report - September 2008

• Total Nonfarm Private Employment: 115,973,000


• Monthly Change: Down 8,000

Gasoline inventories recovering

US oil inventories rebuilt this week, though the picture is still
mixed. Distillate fuel inventories fell by 2.3 million barrels to the
very edge of the average range for the season, just as the season for
using heating oil gets underway. Gasoline inventories rebuilt to a
level just under the average range, but did so largely on the strength
of a 4.5% drop in product supplied to the market as refineries
continued operating at less than 75% capacity in the wake of hurricane
damage.

Investing in crisis

Just a few thoughts on investing in the current financial situation.
Most of this is targeted to people that have already liquidated their
stock holdings or were waiting to get into the market. If you're
already in stocks, you have a tough decision - is the bottom near or
not. If we're at or near a bottom, your best bet is to hold out for a
rebound. If we aren't near the bottom, you might want to take your
losses and cash out to buy back in closer to the bottom. I lean to
thinking we're near bottom, but that is admittedly a guess.

Mortgage applications down, prices down, rates starting down

Lots of news about the housing economy the last couple of days and all
the numbers dropped - though that was good in the case of mortgage
rates. The Mortgage Bankers Association reported Wednesday that
mortgage applications fell last week and Fixed Rate Mortgage (FRM)
rates dropped slightly while Adjustable Rate Mortgage (ARM) rates rose
slightly. Standard and Poor’s Case Shiller Home Price Index for major
metropolitan areas dropped last month.

Factory Activity Lowest Since 2001

Factory activity failed to grow in September, with the ISM manufacturing index
at 43.5, reaching the lowest level since October 2001. August
construction spending was flat.

Fed Considers Rate Cut as Recession Fears Mount

Federal Reserve officials are weighing further
interest-rate cuts, even if Congress passes a $700 billion rescue plan,
in the face of a deteriorating economic outlook and severely strained
financial conditions.

U.S. Auto Sales Dive

General Motors posted a 16% drop in light-vehicle sales for September, while sales at Toyota and Ford fell more than 30%.

U.S. Senate Approves $700 Billion Financial Rescue, Sends Measure to House The U.S. Senate tonight approved a
$700 billion financial-rescue plan that funds the biggest
government intervention in the markets since the Great
Depression. The package now goes to the House of Representatives,
which rejected an earlier version of the measure.

Trichet May Be Pushed Toward Rate Cut After `Wake-Up Call' From Bank Busts European Central Bank President Jean-
Claude Trichet's balancing act may be drawing to a close.

Australian Exports Turn Trade Balance to Second-Biggest Surplus on Record Soaring coal and iron ore exports
have turned Australia's trade balance from a deficit to the
second-biggest surplus on record.

`Serious Economic Crisis' Looms in Latin America as Credit Freeze Deepens Latin America's fastest economic
expansion in 30 years may be coming to an end as the global
credit crunch stunts investment and squeezes demand for the
region's commodities.

France, Germany Clash Over Proposal to Rescue Banks Hurt by Credit Crunch France and Germany clashed over
whether to create a fund to bail out banks pounded by the global
credit crunch, kicking off a European version of the debate that
has been raging in the U.S. for two weeks.

Monster jobs index ticks up in Sept, remains weak

NEW YORK, Oct 2 (Reuters) - Online job availability
improved slightly in September, but remained considerably
weaker compared to last year, Monster Worldwide, Inc
said on Thursday.