The stock market caught its collective breath today after the Dow Jones Industrials Average incurred its largest one-day drop of all time Monday.
The Dow fell by more than 777 points Monday after Congress rejected a Wall Street bailout plan that had been embraced by President George W. Bush and Congressional leaders in both parties.
Bush warned this morning that failure to pass a financial rescue plan would have severe consequences for the U.S. economy.
"If our nation continues on this course, the economic damage will be painful and lasting," Bush said in a brief appearance at the White House today.
Congress is expected to resume deliberations over an economic rescue plan on Thursday.
On the campaign trail, Democratic presidential nominee Barack Obama proposed that Congress approve a plan to increase the maximum amount of individual investments that are insured in banks by the Federal Deposit Insurance Corp. (FDIC) from $100,000 to $250,000. Republican nominee John McCain said this morning he also would support such an increase.
Locally, Monday's plunge sent the BizTimes Stock Index down 9.15 points to close at an all-time low of 125.62. The largest local losers on Monday were Joy Global (down $7.69 to $39.93), Bucyrus International Inc. (down $6.18 to $38.17) and Manpower Inc. (down $4.69 to $39.73).
The Dow bounced back with a 300-point gain this morning, and local stocks mirrored the broader index. The largest local gainers this morning were Marshall & Ilsley Corp. (up $3.18 to $21.18), Bucyrus (up $2.25 to $40.42), Joy Global (up $1.77 to $41.70) and Badger Meter Inc. (up 89 cents to $46.19). The largest local decliners this morning were Briggs & Stratton Corp. (down 86 cents to $16.14) and Harley-Davidson Inc. (down 52 cents to $37.41).
Meanwhile, The Associated Press reported today that the key bank-to-bank lending rate, the London Interbank Offered Rate (LIBOR), soared to 4.05 percent from 3.88 percent for three-month dollar loans, and to 6.88 percent for overnight dollar loans - the highest level since tracking of the rate began in 2001.
LIBOR normally is just slightly above the Federal Reserve Bank's target fed funds rates. Now, LIBOR is more than 4 percentage points above the target rate of 2 percent, which produces troubling implications for other lending rates tied to LIBOR, including homeowners' adjustable rate mortgages.
Peter Morici, professor of the Robert H. Smith School of Business at the University of Maryland and the top-rated predictive economist at Marketwatch.com, cast bipartisan blame for the nation's collapsing financial infrastructure.
For too long, financial conglomerations have had too much influence in Washington, D.C., leading to lax oversight by the federal government and greedy excesses on Wall Street, Morici said.
"I've been at it now for 43 years, and I've never seen a country so much in peril economically as ours is today. It has been a bipartisan effort," Morici said in an interview with radio station KSRO of Santa Rosa, Calif. "We have a lot of banks out there with toxic debt on their books. Until we get a rescue package in place and one that is acceptable to the American people and seems to be fair and just, we're going to continue to have bank failures."
Morici said businesses are feeling the credit crunch as banks have less money to lend.
"We've already had bank credit dry up for the last six to nine months," Morici said. "Many businesses can't get loans unless they have an established line of credit with a bank or an established relationship."

U.S. Rep. Paul Ryan (R-Wis.) is chastising his colleagues in Congress, who put "their own jobs at the expense of the jobs of those they serve." Ryan says Congressional action is needed to correct the "horrendous failures of the Bush administration." Read more in today's Milwaukee Biz Blog.

Congressional rejection of a $700 billion bailout package for the financial industry on Monday will cause a more dramatic slowdown within the M&A marketplace, according to several industry insiders. The industry has already seen an impact from recent collapses of financial giants and struggles on Wall Street.
"What is taking place now will have repercussions through every market," said Paul Stewart, a partner with PS Capital Partners LLC, a Milwaukee-based private equity holding firm. "(The lack of) credit will end up affecting leverage needed to buy a company." Read more in this week's edition of BizTimes Money.

Thousands of fans packed the Miller Lite Oasis at the Summerfest grounds Monday for a pep rally sending the Milwaukee Brewers off to Philadelphia for the National League Division Series against the Phillies. To view a photographic slideshow of the rally, visit the latest edition of SBT Around Town.

BizStarts Milwaukee, a nonprofit entity dedicated to fostering and promoting entrepreneurship in southeastern Wisconsin, officially launched today.
The organization wants to help launch or accelerate 50 new businesses by the end of 2010, an effort that is needed because of the relatively low numbers of new businesses created in the Milwaukee area, said Dan Steininger, vice president of BizStarts.
"The brutal fact that confronts us is that Milwaukee is 45th in the nation in getting new businesses started and 47th in the nation in getting venture capital raised," he said. "Most new jobs are created by new companies."
As a nonprofit entity, BizStarts Milwaukee will focus on connecting entrepreneurs with the resources to launch and grow their companies. The organization will assist with business planning, connecting with early-stage investing and other issues that face startup companies.
The project has four major initiatives:
BizStarts Connect - An online network, featured at www.bizstartsmilwaukee.com, to connect entrepreneurs with resources such as investors or financing, attorneys, marketing and more. The site will soon expand to include a social media platform, so members can post questions and ideas, said John Torinus, president of BizStarts.
BizStarts Venture Track - A fast-track program for high-potential companies, which will include mentoring and intensive coaching.
BizStarts Learn - An educational outreach program, where entrepreneurs will speak with K-12 and college students about starting companies.
BizStarts Buzz - A program that will celebrate funding deals, new business startups and successful exits.
"It's not easy to start a company, but we can make it less difficult," Torinus said. "All of the big companies we have here (in the Milwaukee area) were started here. It's obvious that we can and must grow our own companies."
BizStarts has already connected with several successful entrepreneurs such as George Dalton, chief executive officer of NOVO 1, Tina Chang, CEO of Syslogic, and Randy Spaulding, owner of Spaulding Clinical Research, who will serve as mentors for new companies and leaders.
"This city ranks low in entrepreneurs and BizStarts is the first organization dedicated to that purpose," Dalton said. "We have venture capitalists, dedicated to finding entrepreneurs to create wealth for their investors. Our job is to develop entrepreneurs for those venture capitalists."
As an entrepreneur, Chang said BizStarts Milwaukee will meet many needs that startup companies in the region have.
"I can attest to the need for a one-stop shop for entrepreneurs," she said. "The need to connect with each other, with the community and with investors is crucial to move forward, and BizStarts Milwaukee will give us access to everything we need. If an entity like BizStarts existed with I started Syslogic, I am confident that we would be even farther along than we are now."

Editor's Note: BizStarts Milwaukee is in no way affiliated with BizTimes.com.

Milwaukee-based Brady Corp. announced today that its board of directors has authorized a share buyback program for up to 1 million additional shares of the company's common stock.
The share repurchase plan may be implemented from time to time on the open market or in privately negotiated transactions, with repurchased shares available for use in connection with the company's stock-based plans and for other corporate purposes.
"Brady's continued strong cash flow provides us the flexibility to re-purchase shares opportunistically as markets allow, and reduce the dilutive effect of our equity-based incentive plans," said Brady chief financial officer Thomas Felmer.
Brady is an international manufacturer and marketer of complete solutions that identify and protect premises, products and people. Its products include high-performance labels and signs, safety devices, printing systems and software, and precision die-cut materials.

The Middleton Doll Company announced that its board of directors has approved a plan to deregister the company's common stock, thereby terminating its obligations to file reports with the U.S. Securities and Exchange Commission (SEC).
The transaction would be accomplished through a 1,000-to-1 reverse stock split of shares of the company's common stock. All shareholders with less than one share after the reverse-split will have their partial shares cashed out at a price of 50 cents in cash per share on a pre-split basis. Shareholders with one or more shares after the reverse-split will continue as shareholders of the company, with any fractional share being rounded up to the next whole number of shares.
The proposed plan should result in a direct cost savings for the company in the near term because it no longer will be required to report to the SEC. Also, the plan will allow the company to avoid the substantial additional costs associated with the compliance and auditing requirements of the Sarbanes-Oxley Act.
The Middleton Doll Company currently operates in two segments, consumer products and financial services. The company's consumer products segment is comprised of Lee Middleton Original Dolls Inc., a designer and marketer of lifelike collectible and play dolls, and License Products, Inc., which does business as FirsTime Manufactory, a designer and marketer of clocks and home decor products that are sold to major national retailers.
The company's financial services segment is comprised primarily of the remaining assets of the lending and real estate leasing business of its former subsidiary, Bando McGlocklin Small Business Lending Corp., now owned by Lee Middleton Original Dolls. The company does not intend to continue in the financial services segment after the remaining financial services segment's assets are sold.

Small Business Times continues to accept nominations for the 2008 Health Care Heroes Awards, honoring companies, individuals and organizations for their contributions to improving health care in southeastern Wisconsin.
Health Care Heroes Awards honor those who epitomize the spirit embodied in the word "hero" in the delivery of health care to the community. The goals of the program are to recognize excellence, promote innovation, encourage emulation of successful programs, educate the general public, contribute to the enhancement of the value and quality of health care and, ultimately, give recognition to those deserving.

Entries will be judged on accomplishments in the following categories:

• Corporate Achievement in Health Care - Honors a company that has successfully implemented an innovative health benefits plan or a company that has solved an acknowledged problem in health care administration. Judges will consider the uniqueness of a benefits plan, its popularity among enrollees, its cost-effectiveness, the complexity of the problem solved and the effectiveness of the solution or solutions.
• Advancements in Health Care - Honors a company, organization or individual primarily responsible for a scientific discovery or for development of a new procedure, device or service that can save lives or improve quality of life. Judges will consider the potential impact of the innovation.
  Community Service - Honors an individual or organization for leadership in focusing on solving a particular health care issue.
• Physician - Honors a physician whose performance on the job is considered exemplary by patients and peers. Judges will consider evidence of positive clinical outcomes, patient satisfaction and testimonials from peers and administrators.
• Nurse - Honors an individual from the nursing field whose performance on the job is considered exemplary by patients, peers and physicians.
• Health Care Staff - Honors an individual who works in the health care field and is committed to providing quality comfort and care. Winners could include therapists, technical support staff, specialists, certified nursing assistants, activity assistants, caregivers, etc.
• Volunteer - Honors an individual who has done volunteer work for the good of one or more people or the entire community. Involvement can be past and/or present. 
   

Nominees must perform their service in Milwaukee, Waukesha, Kenosha, Racine, Walworth, Ozaukee, Washington or Sheboygan counties.
Recipients of the Health Care Heroes Awards will be profiled in a special supplement of Small Business Times on Dec. 12, 2008. They will receive their awards at a breakfast hosted by Small Business Times, on Thursday, Dec. 11, 2008, at the Italian Community Center in Milwaukee.
The nomination deadline is Oct. 10. For additional information, contact Mary Ernst at (414) 336-7125 or mary.ernst@biztimes.com. To nominate a person, company or organization for a Health Care Hero Award, click for the nomination form.

Entrepreneur Aaron Nelson has opened a Home Helpers franchise to serve senior citizens in Racine, Kenosha, Walworth and southern Milwaukee counties.
With the number of senior citizens in the United States expected to reach 76 million by 2030, more and more families are facing the responsibility of caring for aging loved ones, Nelson said.
"I was fortunate to have the means to be able to help my grandparents age at home," Nelson said. "I have seen what a positive impact aging at home has had on their lives. Offering Home Helpers services to Racine County and its surrounding areas provides the opportunity for local Seniors to age comfortably and with dignity, just like my grandparents."
Home Helpers is a growing national franchise that offers companionship and other personal services for seniors, new mothers and others needing assistance to live in their own home.
The company provides non-medical and personal care services on an hourly, daily or weekly basis, with tailored care plans customized to an individual's needs. Services include companionship, meal preparation, light housekeeping, grocery shopping, transportation, laundry, errand services and more.
"Often, a full-time nurse or medically trained professional isn't necessary to keep an aging parent or recuperating family member in their own home," Nelson said. "You just need someone to care for your loved one and provide companionship during the times that a family member can't be there. That being said, my entire staff is committed to treating each client with the respect and dignity they deserve. We view each client as an extension of our own family." 
Home Helpers franchises are independently owned and operated in more than 500 markets across North America. Cincinnati-based Home Helpers is affiliated with Direct Link In-home Emergency Monitoring.
Nelson is a resident of Burlington. For additional information, call (262) 757-0012.

One of Canada's favorite coffee brands is making its debut in the U.S. market with the establishment of a new cafe at Carroll University in Waukesha.
Introduced to Carroll by Chartwells, a division of Charlotte-based Compass Group, Second Cup won the chance to bring its brand to Carroll in a pitch against well-known U.S. coffee chains.
"We were delighted to be given the opportunity to demonstrate to Carroll University what Canadians have known for decades," said Stacey Mowbray, president of The Second Cup Coffee Company Inc. "We offer the size and scale of a global brand with the flexibility and local approach that comes with being a franchise system."
Carroll involved students, staff and faculty in the decision-making process.
"Carroll University prides itself on being a leader and is proud that Second Cup has partnered with us and Chartwells to develop its first U.S. café on our campus," said Douglas Hastad, president of Carroll University.
The Second Cup coffee shop is located in the Todd Wehr Memorial Library at Carroll University.
Second Cup is the largest specialty coffee franchiser in Canada. Chartwells, which has provided dining services to Carroll University since 2007 and introduced Second Cup as part of a total renovation of the food service facilitates, has taken on the role of franchisee.

Notable female politicians from Wisconsin will join Mike Gousha for a special event at Marquette University Law School entitled, "Women, Politics and the Glass Ceiling," to be held Monday, Oct. 13.
The event will begin at 5:30 p.m., in Sensenbrenner Hall, room 325, located at 1103 W. Wisconsin Ave. A brief reception will follow.
The past two years have seen historic gains for women in politics as New York Sen. Hillary Rodham Clinton became the first woman to mount a serious bid for the presidency, Alaska Gov. Sarah Palin became the Republican Party nominee for vice president and the first woman to run on a Republican presidential ticket, and California Congresswoman Nancy Pelosi became the first female Speaker of the House.
Congresswoman Gwen Moore, former State Senate Majority Leader Mary Panzer, Dane County Executive Kathleen Falk and Wisconsin State Rep. Sue Jeskewitz will address the issues and challenges faced by women in the political arena, as well as the progress made by female politicians in Wisconsin during a panel discussion moderated by Gousha.
The event is co-presented by WisPolitic.com, a media partner of Small Business Times.
WisPolitics.com.
Members of the public interested in attending the event should register online.

A collaboration between Marshfield Clinic, Ministry Health Care and St. Michael's Hospital will expand the availability of specialized care in Stevens Point. A $1 million remodel and relocation project at St. Michael's Hospital is expected to be completed by the end of the year. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.