GOOD DAY FOR: Shorting Circuit, after electronics retailer Circuit City filed for bankruptcy. The chain said last week it would close 155 stores, or a fifth of its locations. Circuit City, along with being hit by the credit crunch, has also been losing market share to larger competitors Best Buy and Walmart. Its stock closed at 25 cents a share last week. (Bloomberg)
BAD DAY FOR: Risky business, after the U.S. government increased the amount of its bailout of insurer AIG to $150 billion, from $85 billion. The new deal reduces the loan portion to $60 billion and adds the purchase of $40 billion of preferred shares and $52.5 billion of mortgage-backed securities. AIG also reported a record $24.5 billion quarterly loss. “AIG keeps getting hit square between the eyes by the housing-finance meltdown,” said Morningstar analyst Bill Bergman. “Risk controls at the company were clearly inadequate.” (Bloomberg)
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
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- The science of sex: 4 harsh truths about dating and mating
- 43 TV shows to watch in 2014
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- What political elites don't understand about Scotland's push for independence
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- Obama knows he can't really 'defeat' ISIS. Americans need to wake up to that reality, too.
- The U.S. dollar has been strengthening for 3 straight years! (That's not good news.)
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