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Date: Fri, 17 Oct 2008 16:50:14 -0400

Warren Buffett says we should all buy stocks. He also says the people
who lost money buying equities in the 20th century were those who only
bought when they were comfortable doing so, which he says is a clear
sign of their failings as investors.

The conventional wisdom is that we should at the very least give Buffett
the benefit of the doubt where investing advice is concerned. Many small
investors and retirement savers will probably enthusiastically cheer
what he says.

But Buffett's plea, printed in the New York Times on Friday, seems
somewhat superfluous. We are all buying stocks now, whether we want to
or not. As taxpayers we own huge chunks of the country's financial
system. Our central bank has put itself, and by extension the rest of
us, in the business of lending to companies. And in any case, most of us
with jobs that offer market-based retirement accounts buy stocks each
pay cycle. Since most of us work for companies where pensions are not an
option, we don't necessarily have very much choice about how we go about
trying to build a retirement nest egg.

Looking Ahead: More Stimulus?

So thanks Mr. Buffett, for your insight and your advice, but it's a
little unclear where many retirement savers will get the money to buy
more U.S. equities at this point. After all, the 401(k) statements that
will soon be arriving in the mail are unlikely to inspire confidence, or
show that we have the money to buy equities even as the economy tanks.

A short-sighted argument? Perhaps, but as people around the country
rethink retirement, or put off collecting Social Security in the hope of
getting bigger checks later, the advice of a billionaire who has
profited mightily during this downturn sticks in the craw. Just a
little.

Europe Focuses on Earnings

After a mad week of trading, U.S. stocks ended well above where they
started the week. Not much of an accomplishment, given current market
levels, but it's better than more losses. The Dow Jones Industrial
Average (.DJI) closed Friday at 8,852.22, a loss of 127.04 points or
1.4%. For the week the blue chip index rose 4.8%. The technology-heavy
Nasdaq Composite Index (.COMP) fell 6.42 points, or 0.4%, to close at
1,711.29, bringing it to a weekly gain of 3.8%. The broader Standard &
Poor's 500 Index (.SPX) fell 5.88 points, or 0.6%, to close at 940.55.
For the week the index rose 4.6%.

Chinese GDP In Focus

Stay tuned to MarketWatch over the weekend for more news and information
that affects your life and your portfolio. Our weekend feature is a
market playbook and should offer insight into how to navigate these
turbulent times.

-- Christopher Noble, assistant managing editor

Building up the banks

Treasury Secretary Henry Paulson announced an extraordinary investment
by the federal government in the U.S. banking system this week, laying
out an unprecedented plan to give $250 billion to banks to repair the
faltering financial system and get lending started again. Only a few
weeks ago, Paulson said that giving banks capital would be a sign of
failure, but he changed his mind after global stock markets crashed and
stress in the financial system rose to previously unimaginable levels.
Get more details .

A helping hand for UBS

The Swiss government became the first to take troubled assets off a
bank's balance sheet, reaching a deal with UBS to absorb up to $60
billion in mostly mortgage-related assets. In addition, the government
is taking a 9% stake in UBS (UBS)(CH: 002489948) in return for an
injection of 6 billion Swiss francs ($5.25 billion) into the world's
largest asset manager. Find out more .

More profit declines

J.P. Morgan Chase (JPM) said its third-quarter net income fell 84% amid
the worst banking environment in 70 years, and the firm cautioned that
earnings would remain weak for several quarters to come. The results
included $3.6 billion of write-downs, as well as $640 million of losses
linked with the Washington Mutual takeover. Read the full report .

Slowing sales

U.S. retail sales fell 1.2% in September, the worst drop in three years
and the third decline in a row, a further sign that the economy has sunk
into a recession led by an exhausted consumer. The 1.2% decline reported
by the Commerce Department on Wednesday was worse than the 0.8% drop
forecast by economists surveyed by MarketWatch. Sales in July and August
were revised marginally lower, signaling that real consumer spending
likely fell in the quarter for the first time in 17 years. Get more
details .

Apocalypse now? Maybe not

At times like these, where new records are set daily and 500- and
600-point days in either direction are regarded as more of the same,
it's easy to suspend reality and indulge in talk of new eras, ends of
Wall Street and capitalism, and collapsing of empires. But a quick look
at history shows that very often these grand statements and feelings are
nothing but just that -- statements and feelings. In reality, not much
really changes. Read David Callaway's column .

Growing unemployment lines

More than 750,000 jobs have disappeared from the U.S. economy this year,
and workers face the prospect of more layoffs ahead. The good news is
that workers can look for red flags. After all, experts say that knowing
that a job loss is coming is a first step to getting back on your feet.
Learn five omens that may portend a pink slip .

Making sense of a deal

Give Microsoft Corp. (MSFT) Chief Executive Steve Ballmer a platform,
and the odds are good that he'll use it to express his opinion about
something. On Thursday at the Gartner ITXpo, Ballmer let it be known
what he thinks of the possibility that Microsoft might still try to
acquire Yahoo (YHOO). Find out what he said .

More M&A talks

Skeptics may question the upside of a merger between two of America's
struggling car giants, but Wall Street clearly backed the concept Monday
as shares of General Motors Corp. (GM) and Ford Motor Co. (F) mounted
stunning rallies. With the credit crisis in full swing and car sales
plunging to levels not seen in 15 years, GM has lost 74% year to date
and Ford is down 64%. But reports over the weekend of a possible merger
between GM and privately held Chrysler and of prior discussions between
GM and Ford apparently gave investors some hope that consolidation could
help cure the ailing industry. Find out more .

Signs of stress

Chip giant Intel Corp. (INTC) reported better-than-expected results this
week, while warning that the global financial crisis has led to "signs
of stress" and market uncertainty. The tech giant posted a 12% jump in
third-quarter net profit, but came out with a cautious outlook for the
fourth quarter, confirming what many analysts already believe is a
weakening tech market. Read the full story .

Google tops estimates

Shares of Google Inc. (GOOG) jumped Friday, a day after the Internet
giant's third-quarter profit bested Wall Street's expectations despite
uncertainty about the health of the online advertising market and a
strengthening dollar. Chief Executive Eric Schmidt said during a
conference call with analysts that in addition to keeping tight control
on costs, the company also benefited from advertisers seeking out more
targeted search advertisements on Google in order to trim their budgets.
Read the report .

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