Financial Roundup: Bailout Failure and Global Meltdown, Lower Rates Don't Stimulate, Better Bailout PR, and More

Will the defeat of the auto bailout trigger a new global meltdown? –  Stormy stock futures and dramatically lower global markets seem to say it will. Veteran economics writer Steven R. Weisman offers comparisons with the global impact of New York City’s financial crisis 33 years ago. [Source: thedailybeast.com]

Folks aren’t biting at lower mortgage rates — Rates are approaching five percent but would-be borrowers seem to be waiting for four percent or better. U.S. Rep. Barney Frank, chairman of the House Financial Services Committee, says homebuyers should move now because more government action to lower rates even more won’t happen soon. [Source: The Boston Globe]

Ex-Nasdaq chief busted in huge Ponzi scheme – Bernard Madoff has been arrested for allegedly bilking extremely high income clients of $50 billion. His secretive investment firm served between 11 and 25 clients and had about $17.1 billion in assets. [Source: The Denver Post]

Banks need to accept public scrutiny with public money — After getting federal bailouts,  Bank of America and JPMorgan Chase are finding they need to fine tune their public relations. Both figured in a high profile controversy over a closed home products factory in Chicago. [Source: American Banker]

Credit markets still seem to be easing — Total commercial paper topped $1.7 trillion for the week ended Dec. 10 or about $100 billion higher than it was four weeks ago. However, it is still down from its peak of $2.2 trillion in the summer of 2007. [Source: CFO.com]

“Das ve Danya” to “People’s IPOs” — Russians who invested in former President Vladimir Putin’s scheme to get a taste of the country’s economy boom through “People IPOs” are seeing their savings vanish. The global slowdown and crash in oil prices has thrashed Russia’s economy. [Source: The Washington Post]