Lehman to Raise Capital Amidst Quarter Loss & Gas Hits $4 U.S. Average

6:53 AM, MONDAY — As you know, I’ve been following the economy’s impact on smalltown America by shining the focus on Hull, Massachusetts, a small community located between Boston and Cape Cod. This past weekend there were telltale signs all around that people are looking for ways to make their limited dollars go further:
On Friday, Verizon came up with a very welcome promotion to let everyone in the small town know that Fios was now available in the area, by quietly setting up a little booth in a corner of the town’s sole gas station and offering every customer to the station a discount of 20 cents a gallon. Without any formal advertising, word quickly spread throughout the entire community, and the lines of cars extended so far that the Verizon worker was forced to vacate his booth and join the owner of the station in pumping the gas for everyone at this usually self-service station to help move things along.
Also over the weekend I attended a craft fair and farmer’s market in the neighboring town of Hingham. One of my favorites is unique handmade jewelry. Several crafters commented that it appears more and more people are getting into making jewelry as a way of earning a little extra money, as evidenced by the increased number of jewelry booths at the fair.
At the farmers market one couple mentioned they decided to buy some vegetable plants for the first time this year and plant them, as a way of saving on the rising price of food costs. And one young woman was selling lobsters that her husband, a lobsterman, had caught just an hour earlier.
If you’re looking for hard numbers on the economy:
The Wall Street Journal has a story today indicating that on Sunday the average cost of a gallon of gas hit $4 across the U.S.
The WSJ has another story concerning Lehman Bros. about to raise $5 billion in capital, with speculation that Lehman is going to report more than a $2 billion loss for its second-quarter report.
CNBC has a slightly different take on the Lehman numbers, reporting this morning that Lehman’s loss is actually $2.8 billion, and have plans to raise $6 billion in capital through common and preferred stock offerings.
CNBC also reported this morning that the S&P 500 is down 7.3 percent year-to-date, with the Nasdaq down 6.7 percent year-to-date.
In my opinion, a stock surely to be talked about on the street today is Apple, with the expected introduction of it’s latest I-pod today.
And, according to Tradersaudio this morning, the sleeper trade to watch today is corn.
Here’s hoping you end the day with more green than you started with.

One Response

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

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