Steve Syre

Every day at this time we do the Boston business report with the Boston Globe Steve's site at. And even right here in the midst of the debate that whole issue continues to revolve around the economy. And that bailout. And I housing meltdown and Steve -- gives us the insight to each and every day. Good Martin Steve how -- this morning. Hi Steve. Hey Steve while 500 points down on the Dow. And -- hearing that the Fed is has announced -- will shortly announce -- cut the discount rate by half a point in conjunction with other. Central banks from around the world what you take god. I yesterday's events and apparently today's events as well.

Well is -- starting with yesterday clearly. The stock market was just. Really dismal and -- It has become I think a great. Psychological. Barometer of more than anything else Sinatra that there's economic events that you can say that there is logical or good reasons for this to happen. It's it's a measure of psychology certainly there work. The new and damaging things going on and and sort of the theme of the day it was. Just seeing how credit problems are spreading in deepening around the world beyond the the United States. It in one of the more bizarre. Situations you know -- Iceland is virtually bankrupt that this moment is on its knees taking Russia for money. That's story unto itself but in Europe. There's a lot of concern about propping up the banks all over the place including a Royal Bank of Scotland a gigantic bank that also happens to be the parent of citizens bank like you're in Boston. So -- development but. I would say the stock. Prices that there are and other big plunge that took place yes that is is just. An indication of really negative psychology where people are looking for some piece of good news and they just get hit with. You know more and more and more -- incremental negative things and that. Declined as sort of sweeping around the world right now only when you put America in Asia and Europe together. You know you almost have a market that's open 24 hours and it becomes kind of a market circle and it's hard to tell what -- Looking at the head of the -- on the circle at any given time but. You know stocks were down about 9% in the Asia overnight. They're down about 5% Europe today epic a lot of that is just reflecting the beating we talked yesterday but I think they'll be parents -- that now we have this latest development which is. Central banks around the world. Coordinating to try to create lower interest rates which. I I hope this is received possibly but I don't honestly think. People were crying out for lower interest rates that that lower rates were not the issue was availability of credit that was the issue.

Steve give -- have yet take men on Warren Buffett's. Step into the market last week taking a stake in GE taking a stake in Goldman. Offering utterances that if he had the 700 billion he would be moving aggressively. Because he sees value he sees that this as a as an opportune moment to buy if you were you I know you're not an investment adviser right now we have the hedge at all for our listeners but if you were liquid I know that's not true for anybody who works for the globe these days after we're liquid. Would you be in the market looking for around looking for solid companies.

I think there are lots of opportunities a lot of that depends on what you -- timeframe as to time horizon. You know it spyware. Close to retirement or planning for sending it kids to college I I would not even be thinking about it but I had a longer term horizon I think there are a lot of good opportunities if you -- If you look at the prices of really blue chip companies out there right now what you say you know what is based on the price that they are trading at right now what is that assume. You know it it it assumes. Really really bad economics and business performance for a long period of time and but that may be true for a while but I I think that -- in terms of radically lower prices in that opportunity getting cheaply and overall long period of time make money yeah I think you'd like more about that is also when he's you know betting billions of dollars in that time. Is it in a position to create a real sweetheart deal for himself and does he get data Goldman Sachs and he's done it. It in a big energy companies that are over and over again.

I think that it would just love it rains that he's got another government has eight it is everybody's talking about how we're gonna get scrutiny this spit in these skills. And we may in fact lose money but. You know when the government had to back up AIG. They created a pretty sweet deal for itself still in terms of taking most of the equity and demanding big interest rates very the in that respect.

The subtitled is Steve -- with -- weighing in on the market was Rapoport also interested so you know -- at a time. Getting Iraq back -- yeah dream comes true what about. Steve do you see you John McCain had a a novel proposal last night that. Is itself there in Indian has been discussed we'll hear more part of the next couple days. The government weighing in further here do you think you see any impact -- could that potentially helped borrow short and long term hopefully.

not or you know I was left and no action to slip party -- yeah. You know in terms of of government stepping in and and essentially. Helping rewrite mortgages to more affordable level and and maybe that's exactly what. And what kind of -- led to to do on a smaller scale I was confused about the McCain scale but you know Republicans were pushing back at that aren't because I think. Correctly they were saying you know what do people -- paying their -- gonna say that you know you know my tax money is being used to help you know people can afford. Houses that they got into Indian you know that I don't think that's fair so -- that. When when frank and other Democrats pushed that. Proposals through they said well we're gonna have this clause that says. Don't we give you this deal and then your house goes up in value and you turn around -- sell it don't we want a piece of the prophet which I thought was was very reasonable so in I you know I think. -- the idea of stabilizing. Housing prices at some level by doing particularly something about the foreclosure effect is a good idea didn't strike me as an original light.

No I don't expect me a good idea either by the way that he took a the difficulty is is that the they'll -- What we've what we're in the process of doing is so -- socializing. The losses while we allow capitalism for the games and.

Well that that that's not necessarily saying that the government is going to take a lot I think if you look at what's happening for example at the F yes it was indymac a failed bank she'll bear. Who runs -- in the process of doing -- in in -- white -- right now -- Tens of thousands of mortgages and the question is if you're an investor or a bank. Are you willing to take most of the bright you know to rewrite this -- and -- you let it pressed through this this program that the government -- eat those losses. That's something different.

Yeah -- there's no question that when you're looking at those mortgages and and and the right to announce that they're going to have to do something. It in in that -- I I just right now don't see. There's nobody home to talk with on these -- it's not like in the the days when we were all growing up when your local bank held its been. Tribes that part I adopt an adult whereas packet you know enraged some a piece of -- in South Africa announce the Korean life insurance company and some of it's gotten elsewhere in the United States. And there's nobody home to talk to NS and the problem is is that you know I know people who have. I have had are having problems -- their mortgage a couple of them actually helped. Finally figure out what they have to do to get around. You know dealing because nobody -- to talk to.

To be there bureaucracy is yeah absolutely impenetrable Steve's site and who would've guessed that you and I would follow with -- detective like concentration. The -- gyrations of the stock market we hadn't done that for many many months together and now each and every day. I'll listeners expect us to do it so we're going to let you go so you can pay attention that rate cat in the stock market and it would have.

I got one positive that it is believed -- would -- only when you're looking -- although -- stocks and and other markets going out one of the few markets that seem to be stable and doing okay yesterday. The sub prime market. -- so -- you know that it's very it's a very short term look at and -- freeware is going but. You know one of the things that we we're talking about and stabilizing is the worst part of the market so. If that turned out to be a trend that may be you know. Basis something to build that that we don't need to actually. Here at the moment because of all the noise and.

And look for the sign that you've hit are at the -- and that might be at Steve's site you make you just might give us a billion dollar insight to all lawlessness there's something called dead cat bounce too -- I -- that -- gold anyways that's going to be deck today Steve -- we'll let you go until tomorrow fabulous as always.