STOCK MARKET WATCH, Wednesday 15 March

[ozymandius]

Wednesday March 15, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1041 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1910 DAYS
WHERE'S OSAMA BIN-LADEN? 1610 DAYS
DAYS SINCE ENRON COLLAPSE = 1571
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON March 14, 2006

Dow... 11,151.34 +75.32 (+0.68%)
Nasdaq... 2,295.90 +28.87 (+1.27%)
S&P 500... 1,297.48 +13.35 (+1.04%)
30-Year Bond 4.70% -0.07 (-1.36%)
10-Yr Bond... 4.70% -0.08 (-1.65%)
Gold future... 553.00 +5.50 (+0.99%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Ike Iossif - WEEKLY CHARTS

-cut past lotsa charts-

SUMMARY

On March 3 we said, "Although last week we had very little change in terms of price, at the same time we also had a number of bullish and bearish developments. On the bearish side, bond yields are threatening to break above resistance, and oil prices appear to have stabilized and ready to move higher. On the bullish side, we got several short-term positive divergences between a number of technical indicators and price. In our view, the positive divergences mean that although market participants are hesitant to make a large scale commitment to the market--on balance--they are bullish and they don't expect bond yields and oil prices to rise further. In fact, they are "positioning" themselves for a rally in the equity markets fueled by a retreat in bond yields and in the price of oil. Although in the intermediate term such beliefs may prove to be without merit, in the short-term equity prices can move a bit higher, and as we mentioned last week, the major indices may be able to hang around the top of their range for another 1-2 weeks. For next week pay attention to the support levels listed on the table below. As long as the indices remain above them on a closing basis, the bulls are in control and they can push prices higher to the first upside targets. If the indices close below support, it would mean then the bears have taken control, and they can push prices lower to the first downside targets."

For the week of 3-13-06, the major indices remained stuck between resistance and support, while most of the technical indicators are either slightly negative or neutral. All in all, nothing really changed since last week. The equity markets remain hostage to the bond market, and unless we see a meaningful retreat in bond yields, the major indices do not have much room for maneuver. Of course, if the bond market behaved, while oil prices remained below $65 per barrel, the bulls would be able to push the SP towards the 1325-1340 level. However, the key thing to remember is that the opposite could happen just as easily. One of the things that we have learned from studying the markets for nearly 20 years is this: there are times to be long, there are times to be short, and there are times to be mostly in cash.

more...

http://www.financialsense.com/Market/wrapup.htm

[JNelson6563]

11. Those charts look a bit troubling

Especially the ones with arrows pointing both ways. ;-)

[ozymandius]

2. Today's Reports

Export Prices ex-ag. Feb
Briefing Forecast NA
Market Expects NA
Prior 0.7%

8:30 AM Import Prices ex-oil Feb
Briefing Forecast NA
Market Expects NA
Prior 1.3%

8:30 AM NY Empire State Index Mar
Briefing Forecast 20.0
Market Expects 19.0
Prior 20.3

9:00 AM Net Foreign Purchases Jan
Briefing Forecast NA
Market Expects NA
Prior $56.6B

10:30 AM Crude Inventories 03/10
Briefing Forecast NA
Market Expects NA
Prior 6763K

2:00 PM Fed's Beige Book

[UpInArms]

12. 8:30 Reports:

8:29 AM ET 3/15/06 U.S. MARCH EMPIRE STATE EMPLOYMENT INDEX 21.8 VS 6.0 FEB.

8:29 AM ET 3/15/06 U.S. MARCH EMPIRE STATE PRICES PAID INDEX 40.2 VS 53.3 FEB.

8:29 AM ET 3/15/06 U.S. MARCH EMPIRE STATE NEW ORDERS INDEX 29.2 VS 27.1 FEB.

8:29 AM ET 3/15/06 U.S. MARCH EMPIRE STATE INDEX WELL ABOVE CONSENSUS 18.5

8:30 AM ET 3/15/06 U.S. FEB. NATURAL GAS PRICES PLUNGE 18%

8:29 AM ET 3/15/06 U.S. MARCH EMPIRE STATE INDEX 31.2 VS REV 21.0 IN FEB.

8:30 AM ET 3/15/06 U.S. IMPORT PRICES EX-FUELS UP 0.8% YEAR-OVER-YEAR

8:30 AM ET 3/15/06 U.S. FEB. EXPORT PRICES EX-AGRICULTURE UP 0.1%

8:30 AM ET 3/15/06 U.S. FEB. EXPORT PRICES UNCHANGED

8:30 AM ET 3/15/06 U.S. FEB. NON-FUEL IMPORT PRICES RISE 0.2%

8:30 AM ET 3/15/06 U.S. FEB. NON-PETROLEUM IMPORT PRICES FALL 0.5%

8:30 AM ET 3/15/06 U.S. FEB. IMPORT PRICES FALL 0.5% VS. 0.4% DROP EXPECTED

[UpInArms]

13. U.S. Feb. import prices fall 0.5% on oil, natural gas

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0782A6C2%2D63DD%2D461D%2DAB26%2DE9F2EE45B44D%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - U.S. import prices fell 0.5% in February as prices for petroleum and natural gas declined, the Labor Department said Wednesday. Economists were expecting import prices to fall 0.4% in February. Imported petroleum prices fell 0.7% in February. Imported natural gas prices plunged 18%. Prices of imported foods also declined sharply during the month. Prices of imports excluding petroleum fell by 0.5%, the biggest decline in nearly two years. Import prices excluding all fuels are up 0.8% in the past 12 months. Meanwhile, prices of U.S. exports were unchanged in February. Agricultural export prices fell 1.1%. Prices of all other exports rose 0.1%.

[UpInArms]

14. N.Y. Fed manufacturing index climbs in March

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T133108Z_01_N15392415_RTRIDST_0_ECONOMY-NYFED-URGENT.XML

NEW YORK, March 15 (Reuters) - Manufacturing growth at New York State factories rose in March, defying expectations of a slight decrease, with a jump in the number of employees, the New York Federal Reserve said on Wednesday.

The N.Y. Fed's "Empire State" index showed overall conditions for manufacturers rose to 31.16 from an upwardly revised 21.02 in February -- moving higher in contrast to economists' forecasts for a decrease to 19.00, according to a Reuters survey.

The employment component of the index rose strongly to 21.75 in March from an upwardly revised 5.99 in February. The average employee workweek also rose, to 25.29 this month from an upwardly revised 5.47 in February.

[54anickel]

34. Bit more here

http://biz.yahoo.com/rb/060315/economy.html?.v=2

snip>

The employment component of the index rose strongly to 21.75 in March from an upwardly revised 5.99 in February. The average employee workweek climbed to a record high 25.29 this month from an upwardly revised 5.47 in February.

"Across every skill category listed, respondents to the 2006 survey reported substantially more difficulty in finding workers than did respondents in 2005," the New York Fed said in a statement.

However, the prices indexes fell, with prices paid easing to 40.17 from an upwardly revised 53.27 in February, while prices received dropped to 12.82 from an upwardly revised 21.50.

The new orders index rose to 29.15 this month from an upwardly revised 27.14 in February.

Inventories rose to their highest level in over a year at 10.26 from an upwardly revised -2.80. It was the first time since November that the inventories index has posted a reading above zero, the New York Fed said.

Are they trying to polish a turd here?

[UpInArms]

21. U.S. Jan. capital flows rise to $66 billion

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B92E5B93E%2D049A%2D47AB%2DB67C%2D9056BD6AC56C%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Capital flows into the U.S. rose to $66.0 billion in January as private investors increased their purchases of U.S. equities, a Treasury Department report said Wednesday. Net foreign purchases of long-term domestic securities were $78.0 billion. Foreign official institutions bought $20.2 billion in securities, while private investors accounted for $57.9 billion, Treasury said. Private foreign investors sold $4 billion in Treasuries in January, after buying fewer Treasuries in December. December's capital inflows were revised lower, to $53.8 billion from a previously estimated $56.6 billion.

8:59 AM ET 3/15/06 PRIVATE INVESTORS SELL $4 BILLION IN TREASURIES IN JAN.

8:59 AM ET 3/15/06 U.S. JAN. CAPITAL FLOWS RISE TO $66 BILLION

I anticipate that this report will also be revised downward :eyes:

[UpInArms]

23. Jan TICs inflows were less than outflows

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T140424Z_01_WBT004973_RTRIDST_0_ECONOMY-CAPITAL-URGENT.XML

WASHINGTON, March 15 (Reuters) - Net flows of capital into U.S. assets rose to a more-than-expected $66 billion in January, shy of the $68.5 billion trade deficit in that month, a Treasury Department report showed on Wednesday.

Net foreign purchases of U.S. Treasury bonds and notes slowed to a smaller-than-expected $4.4 billion.

Analysts were expecting net inflows into U.S. assets of $65 billion and Treasury buying of $18.1 billion.

Looks like we have a deficit on our deficit :eyes:

adding on edit:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9405CEB6%2D8810%2D4B4E%2DB3BD%2D265AB9AFAF6D%7D&dist=newsfinder&symbol=&siteid=mktw

excerpt:

Japanese holdings of U.S. Treasuries fell in January, while Chinese holdings rose.

Chinese investors held $262.6 billion in Treasuries in January, versus the $256.7 billion they held in December.

Japan held $668.3 billion in Treasury securities in January, down from the $684.9 billion investors there held in December.

...more...

[UpInArms]

45. DOE Petroleum Inventories Report

10:30 AM ET 3/15/06 U.S. CRUDE SUPPLY UP 4.8 MLN BRLS LAST WEEK: ENERGY DEPT

10:30 AM ET 3/15/06 U.S. DISTILLATE SUPPLY DOWN 3.9 MLN BRLS: ENERGY DEPT

10:30 AM ET 3/15/06 U.S. GASOLINE SUPPLY DOWN 900,000 BRLS: ENERGY DEPT

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBF8D2631%2DF51E%2D4FA4%2DBBC6%2D2C6988CB3B7E%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Energy Department said crude inventories rose 4.8 million barrels for the week ended March 10 to total 339.9 million. That's 10.4% above the year-ago level and stocks remain at their highest level since late May 1999, the data showed. They climbed a total of over 14 million barrels in the past four weeks. Motor gasoline stocks fell by 900,000 barrels, with total stocks at 223.9 million barrels -- 0.6% above the year-ago level. Distillate supplies dropped 3.9 million barrels to 127.5 million, but they're still 12.9 % above the year-ago level. April crude fell 40 cents at $62.70 a barrel in New York. April unleaded gas shed 1.6 cents to $1.85 a gallon and April heating oil fell 0.62 cent to $1.815 a gallon.

[UpInArms]

47. API Petroleum Inventories Report

updating with report - guess that "glitch" got fixed

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA6D474DB%2DFC2A%2D426D%2D829F%2D5092C43C98D3%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories rose 2.2 million barrels for the week ended March 3. The Energy Department reported a rise of 4.8 million. Motor gasoline inventories were up 184,000 barrels, contrary to the 900,000-barrel decline in the government's report. Distillate stocks fell 2.5 million barrels, the API said.

10:39 AM ET 3/15/06 API SAYS 'TECHNICAL GLITCH' HAS DELAYED ITS OIL SUPPLY DATA

[UpInArms]

83. FOMC's Whitewash..err...Beige Book does its tricks with mirrors and shells

1:59 PM ET 3/15/06 EMPLOYMENT UP IN MANY REGIONS, SECTORS: BEIGE BOOK

1:59 PM ET 3/15/06 BEIGE BOOK FINDS NO EVIDENCE OF LABOR COST PRESSURE

1:59 PM ET 3/15/06 MOST FED DISTRICTS REPORT SLOWING REAL ESTATE: BEIGE BOOK

1:59 PM ET 3/15/06 FIRMS COSTS UP, BUT RETAIL PRICES RISES LOW: BEIGE BOOK

1:59 PM ET 3/15/06 FED BEIGE BOOK: ECONOMIC CONDITIONS REMAIN MODERATE IN FEB.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD3C4E4C5%2D9505%2D4577%2D834D%2D29F6E93A8E86%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - Economic activity continued in February at a steady, moderate, pace, the Federal Reserve reported Wednesday. In its periodic Beige Book report on economic conditions, the Fed found little had changed from the "moderate" growth rate in place since the beginning of the year. Inflation pressures were muted in the past six weeks, the report said. While businesses reported ongoing cost pressure on inputs, prices at the retail level increased at only slightly.There was no sign of rising labor cost pressures.

[UpInArms]

84. US Fed beige book says economic activity increased

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T190244Z_01_TRT000102_RTRIDST_0_ECONOMY-FED-BEIGEBOOK-URGENT.XML

excerpt:

"Most districts characterized the pace of expansion as moderate or steady," the U.S. central bank said in its "beige book" summary of economic conditions.

Businesses reported input cost pressures, with elevated energy costs frequently mentioned, the Fed said. The costs of non-petroleum materials, including asphalt and cement, were on also the rise, the Fed said.

However, retail prices increased at only a moderate rate, the report said, and labor cost pressures were little changed, with most districts saying wages increased modestly on average.

Employment increased in most locations and many sectors of the economy, and almost every district reported shortages of high-skilled workers.

A shortage of skilled workers in finance, construction and manufacturing resulted in more rapid pay raises for those workers.

Residential construction and real estate was mixed, with most districts reporting activity slowing from high levels. At the same time, commercial construction and real estate has picked up from the end of 2005, the Fed said.

...more at link...

[UpInArms]

95. Rise in Manufacturing Costs Cited in Cont. Tire Layoff of 522 people

http://www.news14charlotte.com/content/local_news/?ArID=115533&SecID=2

CHARLOTTE, N.C. – Continental Tire, one of Charlotte’s largest manufacturers, announced Wednesday that it would be laying off about a quarter of its workforce.

The cuts are being attributed to the continued rise in manufacturing costs.

The first round of layoffs affected 250 workers. Another 272 are expected to be let go in June.

...more...

[ozymandius]

3. Oil dips under $63

LONDON (Reuters) - Oil slipped below $63 on Wednesday, retreating from a two-day surge driven by fears of a U.S. gasoline supply crunch ahead of the summer driving season.

Uncertainty over supplies from Iran, locked in a row with the United Nations over its nuclear program, also lent support.

Top Iranian officials have ruled out the possibility of Tehran halting oil sales in response to potential U.N. sanctions. But Japan's biggest refinery Nippon Oil (5001.T) has not been reassured. It has cut imports from Iran due to heightened political risk there.

more...

[UpInArms]

63. April Crude @ $62.20 bbl - April NatGas @ $7.05 mln btus

11:46 AM ET 3/15/06 APRIL CRUDE FALLS 90C TO $62.20/BRL AFTER U.S. SUPPLY CLIMB

11:46 AM ET 3/15/06 APRIL UNLEADED GAS DOWN 2.5C, OR 1.3%, AT $1.841/GAL

11:46 AM ET 3/15/06 APRIL HEATING OIL FALLS 2.12, OR 1.2%, TO $1.80/GAL

11:46 AM ET 3/15/06 APRIL NATURAL GAS TRADES AT $7.05/MLN BTUS, DOWN 1.6%

[UpInArms]

90. April Crude closes @ $62.17 bbl - April NatGas @ $7.143 mln btus

2:57 PM ET 3/15/06 APRIL CRUDE CLOSES AT $62.17/BRL, DOWN 93C, OR 1.5%

2:57 PM ET 3/15/06 APRIL NATURAL GAS FELL 2.4C TO CLOSE AT $7.143/MLN BTUS

[ozymandius]

4. U.S. Seeks More Control Over Fannie Mae

WASHINGTON - The Bush administration and a key House lawmaker on Tuesday cited the investigation that found a breakdown in financial controls at Fannie Mae to bolster their push for tighter federal control of the mortgage giant and its government-sponsored sibling, Freddie Mac.

The probe by a team led by former Sen. Warren Rudman, R-N.H., detailed major accounting deficiencies and an arrogant corporate culture at Fannie Mae, the largest U.S. financier of mortgage loans.

Rudman's report said Fannie Mae's former chief financial officer and controller shared primary responsibility for the accounting failures at the company. Fannie Mae is now reworking its books and struggling to emerge from the debacle that erupted in September 2004 when regulators discovered pervasive errors and the company's stock dropped amid the revelations.

-cut-

Federal regulators in 2004 accused Fannie Mae of serious accounting problems and earnings manipulation to meet Wall Street targets, and the Securities and Exchange Commission ordered the company to restate earnings back to 2001. That correction is expected to reach an estimated $11 billion. The Justice Department is pursuing a criminal investigation.

more...

[ozymandius]

5. Agencies Adopt New Credit Scoring System

NEW YORK - The nation's three major consumer credit bureaus have created a new credit scoring system designed to make it easier for financial institutions to evaluate loan applications and to give consumers a better way of measuring their financial health.

The credit reporting agencies — Equifax, Experian and TransUnion — announced Tuesday that they're introducing "VantageScore" to banks, mortgage lenders and credit card companies immediately. The new scores will be available to consumers after the lender rollout, probably later this year.

-cut-

The agencies in the past each used their own proprietary formulas to generate their own scores, meaning that a lender dealing with a consumer's application for a credit card or a mortgage might have to reconcile three widely different scores.

With the new system, a single methodology will be used to create the scores for all three credit bureaus, the agencies said.

more...

[ozymandius]

6. Is rising US public debt sustainable?

At $8.3 trillion, it breaks the legal limit, fueling a fiscal debate in Congress.

Maybe the national debt clock was retired too soon.

Between 1989 and 2000, the electronic display near New York's Times Square tracked the rise of the nation's red ink until it reached $5.7 trillion. When it shut down, the federal budget was running a surplus.

Today, the national debt totals $8.3 trillion, a level that could force Congress this week to raise the debt ceiling for the fourth time in George W. Bush's presidency.

The prevote debate may be tinged by election-year rhetoric, but the underlying issue goes beyond partisan politics. The rising debt tally is a reminder, economists say, that the nation is on an unsustainable fiscal course.

more...

http://www.csmonitor.com/2006/0314/p01s02-uspo.html

[jamesinca]

7. The gift of understatement

"that the nation is on an unsustainable fiscal course"

[Tace]

8. MOGAMBO GURU: Unaccountable International Bankers And Commie Idiots

Richard Daughty, the angriest guy in economics -- World News Trust

Total Fed Credit went down by $5.4 billion last week, which was surprisingly out of character for the new Bernanke Federal Reserve Monetary Regime Of Inflationary Horror that is on record as officially actually wanting inflation, although they call it "targeting" inflation, which is sort of apt, as what they are targeting is my wallet in their crosshairs. But this is not about how the Fed and the rest of the government are all out to get me, but about how without constantly creating money (and low interest rates to entice people to borrow it), it seems that Bernanke is not just a complete moron, but an incompetent one, to boot! Hahaha!

And it is not just the Federal Reserve that is so brain-dead that it wants inflation. Paul McCulley, a heavyweight because he manages lots of bond money for PIMCO, is nonetheless a ludicrous and laughable putz who says, "For the record, I support the Fed adopting an explicit numerical range for its long-term objective for inflation. The problem with the Fed’s current implicit inflation target of 1½% to 2% is that it is both implicit and too narrow. I’d suggest 1½% to 3%, a range wide enough to warrant increased risk premiums for cyclical variability in inflation."

Three-percent inflation? My God! This halfwit numbskull actually WANTS price inflation to run at 3%? The last 6,000 years of damning historical evidence about the horrors of inflation mean nothing to him? Beyond that, he is saying is that he wants all those people who own the bonds he manages to lose lots and lots of money as interest rates rise in response to a rise in inflation? What a doofus!

But this is not about dorks who are in positions of authority, as they are so numerous that they are all over the damned place. No, what this is about is inflation, and in that regard the Federal Reserve is still trying to goose the economy, and the repo desk at the Federal Reserve did $27 billion in repo agreements one day last week, 3/9/06. In one day!

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=2703

[UpInArms]

9. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX

Last trade 89.94 Change -0.07 (-0.08%)

Record Setting Deficit Sends Dollar Tumbling Ahead of TIC Report

http://www.dailyfx.com/story/dailyfx-reports/daily-fundamentals/7335-record-setting-deficit-sends-dollar-tumbling-ahead-of.html

Yesterday’s slide in the dollar deepened significantly today with the Euro breaking the psychologically important 1.20 level and USD/JPY falling far below 118.00. Disappointments in retail sales and the current account brought back concerns for the US’ structural deficiencies. Joining the ranks of the trade deficit and the budget deficit last week, the current account hit a record high of $224.9 billion in the fourth quarter or what is equivalent to 7 percent of GDP. Such high benchmarks have the market extremely jittery going into Wednesday’s net foreign purchases announcement. According to Bloomberg, the forecast is for net foreign purchases to have increased by $62.4 billion in January, which is slightly less than the same month’s trade deficit of $68.5 billion. Should we really print a number that is smaller than the January deficit, we could see another strong wave of dollar weakness. As we mentioned last Friday, this week is all about trade and sizing up the US’ ability to attract foreign investors. In contrast, with the market already so bearish dollars going into the report, a number higher than $69 billion could be just what the market needs to turn the latest correction in the dollar into nothing more than a mere stall within a broader uptrend. Meanwhile consumer spending in the month of February fell a more than expected 1.3 percent. At first glance, this may seem like a pretty dismal report, but it is important to mention that the weakness in sales was predominantly due to a sharp fall in auto sales since purchases less autos actually came in better than expected. Additionally, sales in January were revised higher by more than the downward surprise seen in February’s release. However the weakness of auto sales should be reflective of the fate that other interest rate sensitive big ticket items may soon face as well.

...more...

[54anickel]

19. Some would like to build a wall around U.S. economy

http://www.usatoday.com/money/world/2006-03-14-protection-cover-usat_x.htm

snip the the TICS related part>

U.S. dependent on foreign investment

As Congress rethinks foreign investment, Clyde Prestowitz, president of the Economic Strategy Institute, thinks the new focus on security ignores the U.S. economy's dependence upon foreign investment. The USA requires about $3 billion in foreign capital every working day to finance the huge gap between its consumption of foreign goods and its exports. The country just doesn't have the luxury of walling itself off, Prestowitz says: "We're shooting ourselves in the foot here. People don't realize this, but our economy is on life support from foreign lenders and investors."

Questions over foreign investment aren't going away. Next month, Chinese President Hu Jintao is scheduled to meet with President Bush at the White House even as the Treasury Department nears a decision on formally stating that China manipulates its currency for trade advantage.

Likewise, thanks to high oil prices, the Dubai Ports deal won't be the last Arab investment here. Since 1998, members of the OPEC oil cartel have earned $1.3 trillion in petrodollars, according to the Bank for International Settlements. Much of it is staying home, helping fuel enormous increases in regional stock markets. But tens of billions of petrodollars have surged into U.S. corporate bonds, equities and direct investment. And more are probably coming.

"Foreigners have a whole pile of dollars," says Reinsch. "I don't know what we expect them to do with them."

[UpInArms]

27. Dollar weakens after Jan. capital flows report

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9FD76A53%2D4426%2D4FB5%2D9180%2D668B63A49253%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar dipped after a Treasury Department report showed capital inflows failed to cover the record trade deficit in January. This is the second consecutive month of such shortfall. Capital flows into the U.S. rose to $66.0 billion in January as private investors increased their purchases of U.S. equities, the Treasury Department said Wednesday. December's capital inflows were revised lower, to $53.8 billion from a previously estimated $56.6 billion. The dollar fell 0.3% to 117.32 yen, while the euro rose 0.2% to $1.2035.

[UpInArms]

37. "The number is not good for the dollar"

Dollar weakens after capital-flows data

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BE5F0C333%2D387C%2D4F6B%2D851A%2D02713A38C646%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar weakened early Wednesday after a Treasury report showed capital inflows failed to cover the record trade deficit of the corresponding month.

"The number is not good for the dollar," said Ashraf Laidi, chief currency analyst at MG Financial Group. "For the second month in a row, the capital flows came lower relative to the trade deficit of the corresponding month, meaning there is increased difficulty for the U.S. to finance its swelling trade deficit."

Capital flows into the U.S. rose to $66.0 billion in January as private investors increased their purchases of U.S. equities, the Treasury Department said Wednesday. December's capital inflows were revised lower, to $53.8 billion from a previously estimated $56.6 billion.

<snip>

Overnight, the Chinese yuan saw its sharpest daily rise since the nation dropped its decade-old dollar/yuan peg last July. The gain came after Chinese premier Wen Jiabao said the market will play a greater role in determining exchange rates.

...more...

[54anickel]

49. The Global Monetary System, Gold & Oil - 1971 until the Future - Part 1

http://www.kitco.com/ind/AuthenticMoney/mar152006.html

Part 1 – The rise of the Dollar – The fall of Gold

Gold 1971 +

In 1971 Nixon closed the gold window on the $ and turned the European nations away from redeeming Eurodollars into gold at the price of $42.35, thus devaluing the U.S. $ by the extent the gold price rose. This was keenly felt in all the markets across the globe because it was a particularly visible blow for the $ and for the sterling as the "$ Premium" was imposed in the U.K. to prevent a wave of capital exiting the country. Shortly thereafter the oil price shot up to $35 a barrel from the $8 level it had happily sat at before. In those days, even with no gold standard, gold was considered the foundation on which paper money stood.

There being no more effective defense than discrediting your accuser, the States tried to defend the $ through the sale of 500 tonne lots of gold, but terminated these as they saw the gold gulped down by private buyers. They had hoped that gold, as money would lose its reputation as well as its position in the Monetary System. Having failed with their sales. The United States then persuaded the I.M.F. to do the same, but again demand overwhelmed supply but this time with outcries from I.M.F. members over these sales.

The U.S.$ and Oil 1971 +

At the end of the seventies the over issuance of the $ came home to roost and Volcker the Chairman of the Federal Reserve at the time found it necessary to ramp up interest rates in quick time, to the extraordinary heights of 26% to tame the inflation engulfing the U.S.A. then.

What happened then to the $? The world power could not permit the $ to lose its name, after all it was the dominant nation financially in the globe as well. A new role for paper money had to be found. It had to be able to implement the power, political and economic, by itself . It had to be money in demand beyond the value gold had traditionally attracted. What was used by all right across the globe even reaching part that U.S. ‘might’, could not even reach? One item - oil! By pricing oil in the U.S. $, U.S. power could be imposed across the globe. Even Russian oil outside Russia was priced in the U.S.$. But it was vulnerable to a different choice if selected by opposers, so the U.S. had to use heavy pressure to make this $ pricing non-negotiable. To do this the U.S. made it clear to Russia in the “cold war” that the Middle East was a critical part of its ‘vital interests’ . Whilst the U.S. itself was dependent on Middle Eastern oil for a good portion of its oil, so was the bulk of the world! Only Russia could stand separate.

The U.S. also imposed a grip on global oil producers ensuring that their governments were dependent on U.S. backing to stay in power. With their loss of individual power as well as possible sovereignty at stake it was not big step to comply with whatever the States required.

more...

[54anickel]

69. Is the Iran Oil Bourse the casus belli?

http://www.321energy.com/editorials/engdahl/engdahl030906.html

A number of writings have recently appeared with the thesis that the announced plans of the Teheran government to institute a Teheran Oil Bourse, perhaps as early as this month, is the real hidden reason behind the evident march to war on Iran from the Anglo-American powers. The thesis is simply wrong for many reasons, not the least, that war on Iran has been in planning since the 1990’s, as an integral part of the US Greater Middle East strategy.

More significantly, the Oil Bourse argument is a Red Herring that diverts attention to the real geopolitical grounds behind the march towards war which have been detailed on this website, including in my piece, ‘A High-Risk Game of Nuclear Chicken’ which appeared in Asia Times Online on January 31, 2006

In 1996, Richard Perle and Douglas Feith, two neo-conservatives later to play an important role in formulation of Bush Administration Pentagon policy in the Middle East, authored a paper for then-newly-elected Israeli Prime Minister, Benjamin Netanyahu. That advisory paper, ‘A Clean Break: a New Strategy for Securing the Realm,’ called on Netanyahu to make a ‘clean break from the peace process.’ They also called on Netanyahu to strengthen Israel’s defenses to better confront Syria and Iraq, and to go after Iran as the prop of Syria.

More than a year before President Bush declared Operation Shock and Awe against Iraq, he made his now infamous January 2002 State of the Union address to Congress in which he labelled Iran, along with Iraq and North Korea, as the ‘Axis of Evil’ trio. This was well before anyone in Teheran was even considering establishing an oil bourse to trade oil in various currencies.

The argument by those who believe that Teheran Oil Bourse would be the casus belli, the trigger pushing Washington down the road to potential thermonuclear annihilation of Iran, seems to rest on the claim that by openly trading oil to other nations or buyers in Euros, Teheran would set into motion a chain of events in which nation after nation, buyer after buyer, would line up to buy oil no longer in US dollars but in Euros. That in turn, so goes the argument, would lead to a panic selling of dollars on world foreign exchange markets and a collapse of the role of the dollar as reserve currency, one of the ‘pillars of Empire.’ Basta! There goes the American Century down the tubes with the onset of the Teheran Oil Bourse…Reality is a little different.

more...

[UpInArms]

10. US home loan demand fell as rates near 4-yr high

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T120116Z_01_N15310592_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, March 15 (Reuters) - U.S. mortgage applications fell last week, reflecting lower demand for home refinancing, as interest rates on long-term loans surged to a near four-year high, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended March 10 decreased 0.2 percent to 574.4 from the previous week's 575.6.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.42 percent, up 0.11 percentage point from the previous week, its highest level since the week ended July 5, 2002, when it reached 6.46 percent.

<snip>

The group's seasonally adjusted index of refinancing applications decreased 1.9 percent to 1,583.6 compared to 1,614.4 the previous week. A year earlier the index stood at 2,267.5.

...more...

[UpInArms]

15. Grave Robbers - Body Scandal Could be Larger than First Thought

http://wcco.com/topstories/local_story_073214729.html

(AP) NEW YORK A macabre scandal in which corpses were plundered for body parts could be even bigger than previously disclosed, with one company alone saying it has distributed thousands of pieces of human tissue that authorities fear could be tainted with disease.

In addition, three other companies have reported quarantining or destroying more than $5 million in tissue from Biomedical Tissue Services -- the now-defunct New Jersey supply house at the center of the scandal.

While the exact number of pieces distributed and used in operations has not been revealed, hospitals in recent weeks have spoken of contacting hundreds of patients who may have received tainted tissue.

BTS has been accused of collecting body parts without donor consent and selling them for use in transplants performed at hospitals and other medical facilities across the country. The owner of BTS and three others were charged in a scheme that earned them millions of dollars. All four have pleaded not guilty.

<snip>

Medtronic said it acquired more than 13,000 pieces of BTS tissue from one tissue processor, Regeneration Technologies Inc.; of that number, 8,000 were implanted.

...more...

[UpInArms]

16. Norm Coleman - Minn. Rep Calls for New White House Team

http://www.lasvegassun.com/sunbin/stories/bw-cong/2006/mar/14/031400781.html

WASHINGTON (AP) - Saying the White House has been afflicted by a political "tin ear," Sen. Norm Coleman on Tuesday called on President Bush to bring in a new team.

"I have some concerns about the team that's around the president," said Coleman, a Minnesota Republican with close ties to Bush. "I think you need to take a look at it."

Coleman cited the White House's handling of the response to Hurricane Katrina, the failed nomination of Harriet Miers to the Supreme Court and the now-scuttled plans for Dubai-based DP World to take over terminals at six major U.S. seaports.

"All of a sudden we're hearing the phrase 'tin ear,'" Coleman said in a telephone interview. "That's a phrase you shouldn't hear. The fact that you're hearing it says that the kind of political sensitivity, the ear-to-the-ground that you need in the White House, isn't there at the level that it needs to be."

Coleman declined to specify which staff members should be replaced, or what new people should be brought in. He said he hadn't talked to Bush or anyone at the White House about his concerns.

...more...

[UpInArms]

26. Ex-White House aide admits to fraud

http://www.cnn.com/2006/POLITICS/03/14/claude.allen.arrest.ap/index.html

ROCKVILLE, Maryland (AP) -- A former top White House aide who was arrested on a theft charge admitted to a store investigator he fraudulently returned merchandise that he didn't buy, according to charging documents.

Police allege that Claude Allen, a former domestic policy adviser to President Bush, made fraudulent returns worth at least $5,000 at Target and other stores in the Washington suburbs on 25 different occasions.

<snip>

Police initially charged Allen with a misdemeanor, a charge that was dropped Thursday when he appeared in court. Later that day, however, he was arrested and charged with the more serious charges of theft and theft scheme over $500. Each count carries a possible prison sentence of 15 years.

Allen resigned in February from the $161,000-a-year job, saying he wanted to spend more time with his family. The alleged crimes occurred while he was working at the White House.

...more...

How about that "evil twin" crappola? :rofl:

[UpInArms]

55. Ex-Bush Aide Carried Embarrassing Secret

http://dailytimes.com/wire.lasso?report=/dynamic/stories/E/EX_BUSH_AIDE?SITE=TXKER&SECTION=HOME&TEMPLATE=blank.html&CTIME=2006-03-15-02-17-18

WASHINGTON (AP) -- During President Bush's State of the Union address, Claude Allen had a coveted box seat as a guest of the first lady. He sat there with an embarrassing secret.

For weeks as he worked side-by-side with Bush on policy that would be included in that Jan. 31 address, he carried the secret that was about to threaten the reputation he built during a swiftly rising career in Republican government.

What Allen knew and apparently didn't tell others at the White House is that he could be in legal trouble. Police say Allen was caught trying to get refunds on items he hadn't bought at a Target store in the Washington's Maryland suburbs, just 30 days before the State of the Union address he was helping to craft.

<snip>

Allen is the great-grandson of slaves who was raised a Democrat in a poor Washington neighborhood. In college, he says he became a born-again Christian and a Republican. He rode those ideologies up through positions in state and federal government, all the way to the White House, where last year he became the highest-ranking black to serve in the West Wing.

Allen was a conservative who supported a constitutional amendment to ban gay marriage and supported the right of Christian military chaplains to mention Jesus in prayers at the publicly funded institutions. He drew the ire of liberals but impressed those he worked with for being a humble team player who was helpful to staff on all levels. Some of his co-workers, sorry to see him leave, cried at his going away party, held last month in the West Wing.

...more...

[54anickel]

33. I caught that on GMA earlier, they said additions rather than replacements

Got into the loyalty crap-o-la - blah, blah, blah. Wish I'd have paid more attention since their site doesn't give the detail that the report seemed to.

http://abcnews.go.com/GMA/story?id=1727191

snip>

Bush is famously loyal to his advisers, and some say he will not change his inner circle now.

"These folks know the president very well. They get along terrific. They understand each other, and they're loyal to each other," said Ron Kaufman, former adviser to the elder President Bush. "As long as you're organized, disciplined, well-managed, they'll survive."

[UpInArms]

58. Convicted GOP fund-raiser to give up job

http://www.jsonline.com/story/index.aspx?id=408233

Madison - Sherry Schultz, who was convicted Saturday of performing illegal campaign work on state time, will give up her job by Friday with the state Republican Party.

Rick Wiley, the party's executive director, said this afternoon that GOP officials and Schultz came to a "mutual agreement" Tuesday to end her job as a $94,000-per-year fund-raiser by week's end.

Schultz was convicted of a felony Saturday for doing campaign work while she was a legislative aide. She was moved from the state payroll to the party payroll in October 2001, after an investigation into Capitol corruption began but before she and five legislators were charged.

...more...

[UpInArms]

85. Bush Spokesman Defends White House Staff

These people could be up to their armpits in alligators and crocodiles and Snotty Scotty would stand there and lie about that, too.

http://news.yahoo.com/news?tmpl=story&cid=544&e=1&u=/ap/20060315/ap_on_go_pr_wh/white_house_woes

President Bush's spokesman defended the White House staff Wednesday as "a smart, capable and experienced team" despite rising complaints from Republicans about administration mistakes and GOP calls for a shakeup.

White House press secretary Scott McClellan said he was "tired of some of the questions" about whether Bush is going to replace some of his senior advisers. "The president has a great team and he appreciates the job that they're doing," McClellan said.

Republicans are nervous about Bush's plummeting approval ratings and a string of White House woes, from the administration's fumbled handling of Hurricane Katrina and an uproar over a secret eavesdropping program to unhappiness about
Iraq, the now-abandoned Dubai ports, the failed nomination of Harriet Miers to the Supreme Court and Bush's failure to achieve the centerpiece of his domestic agenda, an overhaul of
Social Security.

<snip>

Bush's job approval has dipped back to 37 percent, his lowest rating in the AP-Ipsos Poll. Nearly 70 percent of people say the U.S. is on the wrong track, a 6-point jump since February. Bush's job approval among Republicans plummeted from 82 percent in February to 74 percent, a troubling sign for the White House in an election year.

...more...

Focus groups, parlor games, yada yada blah blah - these people need to take a good look in the mirror and start flushing that overflowing toilet.

[UpInArms]

17. Government to Scale Back Mad Cow Testing

http://www.examiner.com/Top_News-a47336~Government_to_Scale_Back_Mad_Cow_Testing.html

WASHINGTON - Despite the confirmation of a third case of mad cow disease, the government intends to scale back testing for the brain-wasting disorder blamed for the deaths of more than 150 people in Europe.

The Agriculture Department boosted its surveillance after finding the first case of mad cow disease in the United States in 2003. About 1,000 tests are run daily, up from about 55 daily in 2003.

The testing program detected an infected cow in Alabama last week, and further analysis confirmed Monday that the animal had mad cow disease.

Still, a reduction in testing has been in the works for months. The department's chief veterinarian, John Clifford, mentioned it when he announced the new case of mad cow disease.

<snip>

Yet consumer groups argue more animals should be tested, not fewer. Officials haven't finalized new levels, but the department's budget proposal calls for 40,000 tests annually, or about 110 daily.

"This would be a tenth of a percent of all animals slaughtered," Jean Halloran, director of food policy initiatives at Consumers Union, said Tuesday. "This starts to be so small that in our opinion, it approaches a policy of don't look, don't find."

...more...

[54anickel]

28. So will the world react calmly to this announcment? WTF are they

thinking? And to think just yesterday, we had the "US hails calm world reaction to new mad cow case" headline.

http://today.reuters.com/News/newsArticle.aspx?type=domesticNews&storyID=2006-03-14T190745Z_01_N14356489_RTRUKOC_0_US-MADCOW-USA.xml

[UpInArms]

32. Reminds me of the stolen 2000 election headlines:

"Voters wait patiently for election outcome to be announced"

[UpInArms]

18. Treasury losses mount after strong Empire State survey

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6BFD0A95%2DEDDA%2D4D05%2DABF9%2DB3DAB3F7E438%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury price losses accelerated early Wednesday, sending yields higher, after the New York Federal Reserve reported that its Empire State survey of manufacturing jumped to 31.2 in March from 21.0 in February. The increase was unexpected and helps build a case for the Fed to continue lifting rates. Separately, the Labor Department said import prices fell 0.5% last month due to weaker oil and gas prices. At 9 a.m. the Treasury Department will release data tallying foreigners' recent purchases of Treasurys. The data will be carefully analyzed by investors who in recent months have grown worried that foreign central banks may be cutting back on their purchases of U.S. assets at a time that the U.S. trade deficit is swelling. The benchmark 10-year Treasury note last was down 7/32 at 98-8/32 with a yield ($TNX 47.27, +0.31, +0.7% ) of 4.722%, up from 4.711% before the data.

[UpInArms]

20. EU Warns of Sanctions on U.S. Goods

http://kdka.com/business/finance_story_073094657.html

(AP) GENEVA The European Union advised the World Trade Organization on Tuesday that it would reintroduce trade sanctions against the United States in two months unless Washington complies with a WTO ruling condemning tax breaks for U.S. companies operating overseas.

The 25-nation EU said, however, that it is still offering the United States ways to end the long-standing dispute without having to incur sanctions on lists of targeted products, including everything from textiles and foodstuffs to automotive parts and steel.

The announcement comes 30 days after a WTO panel upheld a decision condemning the tax breaks, affirming previous judgments that the so-called Foreign Sales Corporation, or FSC, law breached global trade rules by giving illegal subsidies to some U.S. businesses.

The law gave tax exemptions on part of the income of more than 6,000 U.S. exporters, including companies such as Microsoft Corp., Boeing Co. and General Electric Co.

Last month's decision "made it absolutely clear that the U.S. has yet to come into full compliance with earlier rulings and recommendations," the EU told the WTO's dispute settlement body. The panel's ruling was officially adopted by the global commerce body at Tuesday's meeting.

<snip>

Washington has repealed the FSC law and claims it has fallen into line with previous WTO rulings, but the appeal body in February upheld that transitional provisions under the 2004 American Jobs Creation Act were still against the commerce body's rules because they allow tax exemptions to continue for a transition period through the end of this year and potentially longer.

...more...

The Jobs Destruction Act strikes again!

[54anickel]

24. Looks like the free-trade theory is getting a global slap today

Protectionism storm clouds EU talks
http://news.yahoo.com/s/afp/20060314/bs_afp/eueurozoneeconomy_060314180159;_ylt=AhRzzdgffUg.eKtVC743mC6mOrgF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

China Says It Will Protect Steel Makers
http://biz.yahoo.com/ap/060315/china_iron.html?.v=1

Some would like to build a wall around U.S. economy (posted above earlier)
http://www.usatoday.com/money/world/2006-03-14-protection-cover-usat_x.htm

US tells China to cut trade surplus
http://news.ft.com/cms/s/cb8f5de4-b38c-11da-89c7-0000779e2340.html

The US administration warned on Tuesday it was heading for a confrontation with China over bilateral economic relations if Beijing did not move immediately to open its markets to American imports.

Carlos Gutierrez, commerce secretary, delivered a sharply- worded speech just a month before a visit to Washington by Hu Jintao, the Chinese president.

He said the US had almost run out of patience waiting for China to take significant steps to reduce its ballooning $200bn trade surplus with the US.

snip>

“Without concrete results, the administration, and the American people, may be forced to reassess our bilateral economic relationship.”

snip>

Beijing, Mr Gutierrez added, could with “the stroke of a pen” move to open up telecoms, IT and state procurement, and do far more to protect intellectual property. His speech was the latest high-profile US attack. John Snow, Treasury secretary, said last week: “The time has come and gone when they should have acted more decisively on the currency”.

more...

[54anickel]

22. Mideast stock markets nosedive

http://news.yahoo.com/s/afp/20060314/ts_afp/stocksmideast_060314181817;_ylt=AsdNsyIQ1zh6CkUjsXZugSOmOrgF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

KUWAIT CITY (AFP) - Stock markets in the oil-rich Gulf region and Egypt suffered major losses, triggering angry protests in Kuwait and prompting some analysts to forecast a crash after a solid five-year upward run.

The market in OPEC kingpin Saudi Arabia, the largest in the Arab world, dropped sharply for the fourth consecutive day, reflecting what analysts said was a sharp correction across the region.

The value of Gulf bourses dropped Tuesday to just under one trillion dollars, down some 150 billion dollars from their 2005 value and more than 250 billion dollars below the peak.

The Saudi Tadawul All-Shares Index (TASI) shed 4.75 percent to close below the 15,000-point psychological barrier for the first time this year at 14,900.40 points.

snip>

"I think we are now at a serious turning point... It is certainly the beginning of a crash though the market is expected to resist at 12,200 points," said Ali Dakkak, professor of economics at Jeddah-based King AbdulAziz University.

more...

Hmmmm, have they learned the art of pump and dump?

[wordpix2]

57. "Is our government weaker than those pirates?" Investors want investiga

tion---wonder what it'll reveal?

Although it appears to be a correction such as the US market correction in early 2000's, the timing is suspect with downturn in Mideast markets occurring right after Dubai port deal fell through, showing Arabs the weakness of BushCo. Could it be major investors like Saudi and UAE royals have no confidence in his policies continuing so they've withdrawn their investments? After all, * and Big Oil go hand in hand.

[UpInArms]

25. Winter of discontent for nation's retailers

http://www.dailynews.com/business/ci_3602559

Retail sales fell sharply in February from a big spike the month before, the government reported Tuesday, as the weather turned cooler, car sales dropped and gasoline prices eased.

Sales at retail stores and food establishments dropped 1.3 percent in February, the Commerce Department reported - the first monthly decline in six months. Sales jumped 2.9 percent in January, which had the highest average national temperature ever recorded for the month. Sales rose 0.3 percent in December.

In another report, the Commerce Department said that the current-account deficit, the broadest measure of the nation's trade, widened by 20.5 percent in 2005 - to $804.9 billion, a record.

The increase primarily reflected previously reported data on the nation's growing deficit in the trade of goods and services, with smaller changes recorded in the balance of financial transfers.

...more...

[54anickel]

30. Heh, there was some analyst on NBR last night saying the drop in

Feb was just a leveling out from the huge jump in January and that it was a healthy sign. :eyes:

[UpInArms]

29. Spitzer to announce new financial services case

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T142712Z_01_N15396105_RTRIDST_0_FINANCIAL-SPITZER.XML

NEW YORK, March 15 (Reuters) - New York State Attorney General Eliot Spitzer, who made his name with high-profile settlements of charges against Wall Street investment banks, fund managers and insurance brokers, is to announce a "major new financial services case," his office said on Wednesday.

Spitzer is to provide more details of the case at a news conference later on Wednesday morning.

[UpInArms]

48. Spitzer charges H&R Block with fraud - updated

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T154831Z_01_N15221176_RTRIDST_0_FINANCIAL-HRBLOCK-SUIT-URGENT.XML

NEW YORK, March 15 (Reuters) - New York State Attorney General Eliot Spitzer said on Wednesday his office filed a lawsuit charging tax preparer H&R Block Inc. (HRB.N: Quote, Profile, Research) with fraud.

The suit is the latest in a line of high-profile cases for Spitzer, who made his name with multimillion-dollar settlements of charges against Wall Street investment banks, fund managers and insurance brokers.

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=2006-03-15T163051Z_01_N15269186_RTRIDST_0_FINANCIAL-HRBLOCK-SUIT-UPDATE-1.XML

NEW YORK, March 15 (Reuters) - New York State Attorney General Eliot Spitzer on Wednesday filed a lawsuit against the nation's largest tax preparer, H&R Block Inc. <HRB.N>, accusing it of fraudulent marketing of individual retirement accounts that lost money for hundreds of thousands of clients.

H&R Block steered roughly 500,000 tax return customers to invest in IRA accounts, but failed to disclose high hidden fees that actually outpaced interest earned on the accounts, Spitzer said. As a result, about 85 percent of these customers lost money, the attorney general said.

"Instead of providing these families with accurate information that would have allowed them to make informed choices, H&R Block steered them into retirement accounts that actually shrank over time," Spitzer said in a statement.

<snip>

More than 150,000 H&R Block customers closed their "Express IRA" accounts, only to incur additional undisclosed fees, as well as nearly $6 million in tax penalties, Spitzer said.

The civil complaint, filed Wednesday in Manhattan state court, cites internal documents showing that senior management knew that many of its customers were losing money on their Express IRAs. In a 2002 e-mail to Chairman and Chief Executive Mark Ernst, a district manager complained about the impact of these accounts on customers.

...more...

[54anickel]

59. Gotta love H&R's response....

"We believe in the Express IRA product and are proud of the opportunities it presents for our clients," Ernst said in a release. "We've helped 596,000 of our clients begin saving for their future, and more than 40 percent of them had never saved before."

Yeah, and they probably never will again, since they obviously lost a part of that savings. :eyes:

[UpInArms]

61. That kind of attitude about saving is oblivious

to who was "saving" - but it looks like H&R should have been "saving" some of their ill-gotten gains

New York's Spitzer seeks $250 mln from H&R Block

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T164509Z_01_N15401919_RTRIDST_0_FINANCIAL-HRBLOCK-FINE-URGENT.XML

NEW YORK, March 15 (Reuters) - New York Attorney General Eliot Spitzer, in a lawsuit filed on Wednesday against H&R Block Inc. (HRB.N: Quote, Profile, Research), said he will seek $250 million in fines plus restitution over what he alleged was fraudulent marketing of retirement savings accounts.

Earlier Wednesday Spitzer announced he filed a suit against the nation's largest tax preparer, accusing it of touting "Express IRA" accounts that charged high fees while offering low interest rates. As a result, Spitzer charged, hundreds of thousands of clients lost money.

Kansas City-based H&R Block denied the allegations, said the product helped many thousands of people start saving for retirement and vowed it would vigorously defend itself in court.

[54anickel]

64. Wonder if the restitution includes the tax fees for the folks that bailed

out completely instead of rolling into a different IRA?

[54anickel]

31. Credit Derivatives Market Expands to $17.3 Trillion (39%)

http://www.bloomberg.com/apps/news?pid=10000103&sid=a9mg9712QnRU&refer=us

March 15 (Bloomberg) -- The global market for credit derivatives grew 39 percent to $17.3 trillion in the second half of 2005 on demand for contracts to bet on corporate credit quality or insure against defaults.

Credit-default swaps, which pay compensation in the event of borrowers defaulting on their debt, expanded 105 percent in the full year, leading gains in the overall market for contracts based on underlying assets. Growth slowed from the 123 percent increase in 2004, the International Swaps and Derivatives Association said today in Singapore at its annual meeting.

Regulators are concerned that credit derivatives are growing too quickly for banks to control. The Federal Reserve Bank of New York has demanded action to tackle a backlog of contracts left unsigned for months on concern the undocumented transactions threaten the stability of the financial system.

``There's been a certain amount of regulator scrutiny, which may have had some effect'' on growth rates, ISDA Chairman Jonathan Moulds told reporters in Singapore. ``I don't think it's dramatically significant.''

Credit derivatives are the fastest-growing part of the $270 trillion market for derivatives, obligations based on interest rates, events or underlying assets, according to figures from the Bank for International Settlements. The market expanded more than fivefold in two years, according to ISDA.

snip>

When Delphi Corp. collapsed in October, investors held insurance entitling them to more than 10 times the value of the auto-parts maker's bonds. Shortages of notes needed to settle the contracts caused prices for the defaulted bonds to soar.

more...

[UpInArms]

75. "Chopper" Ben chimes in: derivatives make U.S. economy resilient

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T172421Z_01_WBT004985_RTRIDST_0_ECONOMY-FED-BERNANKE-URGENT.XML

WASHINGTON, March 15 (Reuters) - Federal Reserve Chairman Ben Bernanke, in a response made public on Wednesday to a senator's question, said derivatives were being well-managed and have bolstered the economy's resilience to shocks in recent years.

"Although no single factor accounts for this favorable performance, derivative instruments undoubtedly have contributed to this resilience because they offer firms means for managing their risks," Bernanke said in response to a question submitted in writing from Republican Sen. Mike Crapo of Idaho in connection with a Feb. 16 Senate Banking Committee hearing on the Fed's semiannual report on monetary policy.

[UpInArms]

35. Gold prices head higher for a third session

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3A62B246%2D8F23%2D4844%2DBFA4%2DE98109342D19%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- April gold climbed $3.70 to $566.70 an ounce in morning trading after touching a more than one-week high of $558.30. Prices tacked on a total of $11.70 in the past two sessions. "A weaker dollar, continued geopolitical concerns, weak government data, and higher oil prices have all been factors that have pushed gold higher in the last several days," said Emanuel Balarie, a senior market strategist at Wisdom Financial.

[54anickel]

38. What happened to that blue-light special - damn it all!

B-)

[UpInArms]

91. Gold closes @ $554.40 oz - Silver @ $10.35 oz

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7DF76305%2DA05E%2D45C1%2D8DFA%2D64A115DE9529%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Gold prices closed higher Wednesday to tally a three-session gain of $13 and silver futures finished at a fresh 22-year high, finding support from weakness in the U.S. dollar, concerns over Iran and expectations for higher gold consumption from India.

"A weaker dollar, continued geopolitical concerns, weak government data, and higher oil prices have all been factors that have pushed gold higher in the last several days," said Emanuel Balarie, a senior market strategist at Wisdom Financial.

Gold for April delivery climbed as high as $558.30 an ounce on the New York Mercantile Exchange, before closing at $554.40, up $1.40 at its highest session-ending level since March 7. The contract has climbed $13, or 2.4%, from Friday's close.

The dollar weakened against its major rivals Wednesday, hitting a fresh one-week low versus the euro, after a Treasury report showed capital inflows failed to cover the record trade deficit of the corresponding month. See Currencies.

<snip>

Getting a boost from the weaker dollar as well as strength in gold, silver prices traded at levels not seen since at least 1984.

<snip>

May silver rose as high as $10.395 an ounce, the highest futures price level since at least 1984. The contract closed up 10.5 cents at $10.35.

...more...

[54anickel]

36. FBI's sting on mortgage fraud produces arrest (DHS employee)

http://www.ajc.com/business/content/business/stories/0315bizfraud.html

The Federal Bureau of Investigation has crashed in on the closing table again, this time arresting a Department of Homeland Security employee who allegedly falsified his mortgage applications to purchase a multimillion-dollar house in metro Atlanta.

Brinson Allen, 38, of Alpharetta, was charged with attempting to commit bank fraud and conspiracy to commit wire fraud after he allegedly used false qualifying information — including that he made as much as $62,000 a month and had $1 million in various banks — to obtain $2.5 million in mortgage loans.

His arrest is part of an ongoing sting operation targeting metro Atlanta's massive mortgage fraud problem, said Assistant U.S. Attorney Gale McKenzie. DeKalb and Fulton counties lead the nation in mortgage fraud, she said.

"We've convicted several hundred in the last five years, and that's just the tip of the iceberg," McKenzie said.

snip>

Allen, who allegedly pretended to be an FBI agent, was arrested by the FBI on Monday. He was released Tuesday on $10,000 bond.

more...

[donkeyotay]

66. Why would anyone get suspicious about this DHS salary?

"he allegedly used false qualifying information — including that he made as much as $62,000 a month and had $1 million in various banks — to obtain $2.5 million in mortgage loans.

How was he planning on making the payments, anyway?

[UpInArms]

39. 10:07 EST Only Good News

Dow 11,156.54 +5.20 (+0.05%)
Nasdaq 2,301.71 +5.81 (+0.25%)
S&P 500 1,297.81 +0.33 (+0.03%)
10-Yr Bond 4.721 +0.25 (+0.53%)

NYSE Volume 311,395,000
Nasdaq Volume 340,694,000

09:40 am : As futures trade presaged, the major averages open relatively flat as a dearth of any significant corporate news or economic data have left investors somewhat reluctant to more aggressively extend yesterday's broad-based rally. With the market still focused on yields, participants are taking a cautious cue from Treasuries. The 10-yr note (-07/32), fresh off its biggest one-day gain since December, is consolidating and yields 4.71% following an unexpected rise in manufacturing to a very strong 31.2 (consensus 19.0). DJ30 +4.38 NASDAQ +5.58 SP500 +0.28 NASDAQ Vol 126 mln NYSE Vol 80 mln

[54anickel]

40. Many Utilities Collect for Taxes They Never Pay

http://www.nytimes.com/2006/03/15/business/15utility.html?_r=2&oref=slogin&oref=slogin

Many electric utility companies across the nation are collecting billions of dollars from their customers for corporate income taxes, then keeping the money rather than sending it to the government.

The practice is legal in most states. The companies say it is smart business. :wtf:

But some representatives of utility customers say that the practice, which involves using losses from other subsidiaries to reduce taxes owed, is not fair. They say that money that utilities are required to collect for federal and state taxes — typically a nickel on each dollar paid for electricity — should go for just that, or not be included in electric bills.

Otherwise, they argue, these legal monopolies make more than they are authorized to, and other taxpayers have to make up the difference in higher taxes or reduced services.

An examination of regulatory filings by The New York Times shows that companies with electric utilities in at least 26 states have pocketed money intended for income taxes, and that utilities can legally do so in 21 more states.

more...

[54anickel]

41. U.S. Investigates Pension Fund at Northwest Air

http://www.nytimes.com/2006/03/15/business/15pension.html

The Labor Department is investigating whether Northwest Airlines systematically shortchanged its employee pension fund over three years, then avoided having to make a $65 million payment to the fund by filing for bankruptcy protection just one day before the payment was due.

The government has subpoenaed voluminous and detailed information from Northwest going back to January 2002, when both the airline and its pension fund faced severe financial pressures after the terrorist attacks of 2001 and the bursting of the technology bubble in the stock market.

The investigators appear to be tracing the steps that led to the pension fund's recent shortfall of $5.8 billion, and whether Northwest violated any laws.

The investigation has implications for many businesses besides Northwest that have shaky pension plans. It suggests that the Labor Department is looking for a way to break an entrenched pattern, in which distressed companies quietly deplete their pension funds over a number of years, then declare bankruptcy and transfer huge obligations to the federal government.

Officials of the Labor Department confirmed the investigation but declined to elaborate, other than to say it was a civil matter concerning the parts of the pension law that deal with funding and the disclosure of information to participants and regulators. The officials also said that the inquiry was looking at whether corporate pension officials had administered the plans "solely in the interest of the participants" in the pension plans, which would fulfill their fiduciary duty. The subpoena was served in January.

A Northwest spokesman said yesterday that the company had provided some of the documents sought, but was fighting to keep others confidential, and was scheduled to appear in court later this month to argue for a protective order. Separately, the airline has been lobbying Congress for special relief from the pension law.

more...

[cosmicdot]

98. former Northwest Board member Elaine Chao investigating Northwest?

well, we'll see ... isn't she doing a heckuva job, too?

http://www.opensecrets.org/bush/cabinet/cabinet.chao.asp

[54anickel]

42. Japan builds robot to look after elderly (Creepy)

http://www.dailytimes.com.pk/default.asp?page=2006\03\15\story_15-3-2006_pg4_3

TOKYO: A Japanese-led research team Tuesday said it had made a seeing, hearing and smelling robot that can carry human beings and is aimed at helping care for the country’s growing number of elderly. Government-backed research institute Riken said the 158-centimetre (five-foot) RI-MAN humanoid can already carry a doll weighing 12 kilograms (26 pounds) and could be capable of bearing 70 kilograms within five years. “We’re hoping that through future study it will eventually be able to care for elderly people or work in rehabilitation,” said Toshiharu Mukai, one of the research team leaders. Covered by five millimetres soft silicone, RI-MAN is equipped with sensors that show it a body’s weight and position. The 100-kilogram robot can also distinguish eight different kinds of smells, can tell which direction a voice is coming from and uses powers of sight to follow a human face.

[54anickel]

43. R E G I O N: ‘China, India to usher in new Asian century’

http://www.dailytimes.com.pk/default.asp?page=2006%5C03%5C15%5Cstory_15-3-2006_pg4_12

BEIJING:China and India will usher in a “new Asian century,” Chinese Premier Wen Jiabao said on Tuesday, as he expressed hopes the world’s two most populous countries would build on their improving relations.

“I have a belief, that is when China and India are truly strong enough to fully bring out their own spirit and style, then that will truly usher in a new Asian century,” Wen told a press conference shortly after the end of national legislature’s annual session.

Wen played down concerns that China and India would become competitors when they became much stronger as they vied for foreign investment, energy and other scarce natural resources, as well as regional influence.

Wen recalled his successful visit to India last year, and said the two countries reached a strategic partnership for peace and prosperity, signed a political principle guiding the settlement of the border issue and worked out a five-year plan for China-India trade and economic development.

more...

[54anickel]

44. This just reminded me of some earlier articles I posted regarding

the ports deal. Lots of trade agreements going on and W seems to be falling behind on his goal of 17...Wonder what that list of 17 looks like anyway?

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=2157966#2160310

[54anickel]

46. Penn serves notice on would-be trade agreement participants

http://deltafarmpress.com/news/06-03-15-penn-serves-notice/

snip>

The United States has completed free trade agreements with the CAFTA-DR countries — Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic — along with Morocco, Australia, Chile, Singapore, Jordan, Bahrain, Peru and Oman. These countries have a total population of 111 million and income of $1.07 trillion, said Penn.

The U.S. Trade Representative is currently negotiating FTAs with the United Arab Emirates, Colombia, Ecuador, Panama, Thailand and the South Africa Customs Union, which have a combine population of 183 million and income of $627 billion.

Korea has a population of 48 million and income of $1 trillion, and its foreign trade of $2.2 billion is slightly above that of all the countries the United States is currently negotiating free trade agreements with ($2.1 billion) and slightly below the $3 billion of the countries with completed agreements.

snip>

“We do now have some pretty firm deadlines. The ministers themselves set these deadlines in Hong Kong so they recognize that their creditability is at stake, and I think they are all working very diligently to meet these deadlines.” (Those are: full modalities by April 30, draft tariff schedules by July 31 and a completed agreement by Dec. 31.)

The Bush administration is attempting to present a completed agreement to Congress before the expiration of the president’s trade promotion authority in July 2007. The latter requires Congress to vote such agreements up or down, without amendment.

more...

[UpInArms]

50. Fake $1B Bank Notes Found in Apartment

http://www.mcall.com/news/nationworld/sns-ap-bogus-billions,0,1732020.story

LOS ANGELES -- Federal authorities investigating a man who smuggled money into the country have seized 250 counterfeit bank notes in billion-dollar denominations, they announced Tuesday.

The 250 bogus Federal Reserve notes had 1934 issue dates and were stained to make them look old, but no such currency exists, said U.S. Immigration and Customs Enforcement spokeswoman Virginia Kice.

The man has been charged with cash smuggling, but no charges have yet been filed in connection with the counterfeit notes.

Federal authorities warned that the sale or transfer of fake securities has increased in recent years. Scam artists typically sell phony government bank notes at a discounted value or use them as collateral to secure loans or make purchases.

...more...

[UpInArms]

51. TX judge denies motion to dismiss Halliburton suit - securities violations

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T160046Z_01_N15270532_RTRIDST_0_ENERGY-HALLIBURTON.XML

NEW YORK, March 15 (Reuters) - A federal judge has partially denied motions by energy services company Halliburton Co. (HAL.N: Quote, Profile, Research) to dismiss a shareholder class-action lawsuit against the company over alleged securities law violations.

Judge Barbara Lynn of the federal court in Dallas denied motions to dismiss the portions of the suit, which has its origins in a complaint from the summer of 2002, relating to asbestos claims and the acquisition of Dresser Industries.

Judge Lynn ordered the plaintiffs to file a fourth amended complaint by April 4, with motions to dismiss due by May 9 and oral arguments on such motions set for July 28.

...more...

[donkeyotay]

68. Haha! Wonder if we'd recognize the name of certain individual defendants

"The judge did grant some motions to dismiss, as related to claims stemming from a certain contract and as well as to certain individual defendants."

[UpInArms]

52. Be Afraid - Be Very Afraid: U.S.-banks should prepare in case bird flu spr

U.S.-banks should prepare in case bird flu spreads

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T160806Z_01_WBT004977_RTRIDST_0_ECONOMY-BANKS-FLU-URGENT.XML

WASHINGTON, March 15 (Reuters) - U.S. bank regulators on Wednesday advised financial institutions to have contingency plans in place in case avian flu becomes pandemic.

"Financial institutions and their service providers supply essential financial services and, as such, should consider their preparedness and response strategy for a potential pandemic," the Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a statement.

Huh?

[54anickel]

54. Got the same crap from the IMF yesterday.

http://news.independent.co.uk/business/news/article351142.ece

Some countries have still not drawn up plans to cope with the "significant damage" to their economies that a bird flu pandemic would cause, the International Monetary Fund warned yesterday.

The IMF, a leading global financial watchdog, said a pandemic would trigger sharp asset-price falls, a slump in tourism and trade and lead to mass absenteeism from work.

snip>

The IMF said business continuity planning would become a critical component in preventing a crisis in the financial sector.

"However, in many countries, business continuity planning has not yet addressed the specific risks arising from a pandemic, particularly from possible high absenteeism," it said. "Perhaps because an avian flu pandemic may appear to be a low-probability event, many countries are only starting to develop a comprehensive approach to this threat."

snip>

It urged central banks to ensure there was adequate supply of cash in the economy while regulators should refrain from enforcing capital-adequacy rules that would be broken as asset prices plunged. "Market operations could become more disorderly in the case of a breakdown in the trading infrastructure, leading to limited or intermittent trading," it said.

more...


Nothing like pushing to line Rummy's pockets while at the same time tossing out the usual financial rules by authorizing the printing presses to run full-bore.

[UpInArms]

65. Be Afraid - Verse III: Health secretary says no need to panic but be prepa

Health secretary says no need to panic but be prepared

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6708244B%2DA300%2D4CB6%2DA6B5%2D567D62EF0FE8%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- There's no cause for panic, but Americans need to prepare for a possible worldwide epidemic of influenza by stockpiling food, water and basic first aid, U.S. Secretary of Health and Human Services Mike Leavitt said Tuesday.

During a wide-ranging speech at the Commonwealth Club in San Francisco, Leavitt said citizens need to prepare for a pandemic as they would a hurricane or earthquake, which could happen at the same time since a pandemic could last as long as a year and a half.

A pandemic may arise from an as-yet unknown virus or the avian flu strain H5N1 that's been sweeping the world and devastating flocks of swans and poultry -- if it acquires the ability to pass easily between people, he said.

Unlike natural disasters or even terrorist attacks, a pandemic is unique because it typically lasts a year or more and occurs everywhere at the same time, Leavitt said.

"Pandemics happen," Leavitt said. "They have happened for centuries, and there's no reason to believe the 21st century will be any different."

The 20th century saw three pandemics, the worst of which was the 1918-19 Spanish flu that killed an estimated 50 million people globally, 500,000 of whom were American. The last two pandemics, in 1968 and 1957, were considered mild.

<snip>

As of Tuesday, the total worldwide number of human cases was 177 and the human death toll stood at 98, the WHO said. The vast majority of people who died of bird flu had close contact with sick birds, and none died from eating properly cooked chicken or eggs, health authorities said.

...more...

:scared: :sarcasm:

Looks like Y2K redux to me :crazy:

I guess I need to put cans of tuna and dry milk in my closet with my duct tape and plastic.

[54anickel]

53. Deja Vu All Over Iran

http://www.tompaine.com/articles/2006/03/14/deja_vu_all_over_iran.php

Comedians might be forgiven for making jokes that President Bush is talking about drawing down U.S. forces in Iraq because he needs them next door in Iran. It isn’t, however, so far off the mark.

The pieces are falling into place for Operation Regime Change II, this time in Iran. You’d think, given how badly it went the first time, and how utterly unpredictable a showdown with Iran would be, that the Bush administration would have at least changed its m.o.—but no. Shaking his head in New York, where he was attending United Nations Security Council discussions on Iran, Russia’s Foreign Minister Sergei Lavrov said bluntly: “It looks so déjà vu.” He ridiculed the idea of sanctions on Iran as useless and ineffective, and he called the U.S. push for a showdown over Iran’s alleged nuclear weapons program a “self-fulfilling prophecy.”

He’s right. Even John Bolton, the neoconservative saber-rattler who represents the United States at the U.N., agrees. Said Bolton, when asked about Lavrov’s comment: “If that is déjà vu, then so be it, but that is the course we are on in an effort to get Iran to reverse its decision to acquire nuclear weapons.”

So let’s look precisely at what course that is. In the past few weeks, we’ve seen the Bush administration create a brand-new Office of Iranian Affairs at the State Department, which looks suspiciously like a step toward creating the Iraq war planning office at the Pentagon called the Office of Special Plans. No word yet on whether the Department of Defense plans to create a parallel Office of Iranian Affairs, but it can’t be far behind. So that’s déjà vu, for sure.

The United States is pressing the U.N. to sanction Iran, to be more aggressive in shutting down a nuclear program that, so far at least, the International Atomic Energy Agency has not been able to find, exactly. Even the least charitable among us might forgive the U.N.’s diplomats, including Lavrov, for being suspicious of the Bush administration when it pledges to take Iran to the U.N. Security Council and to abide by the result. In 2002, the Bush administration took Iraq to the UNSC, got the IAEA inspectors invited back in, began pressing for further U.N. action—and then gave up the whole thing and invaded Iraq unilaterally. So that, for sure, sounds like déjà vu.

more...

[UpInArms]

56. U.S. home builder sentiment declines in March-NAHB

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T163521Z_01_NAT002041_RTRIDST_0_ECONOMY-HOUSING-NAHB-URGENT.XML

NEW YORK, March 15 (Reuters) - U.S. home builder sentiment declined in March, the National Association of Home Builders reported on Wednesday, in response to rising mortgage rates.

The NAHB/Wells Fargo Housing Market index slid to 55 in March, seasonally adjusted, from February's downwardly revised revised 56.

The confidence level, however, remains above the midpoint that indicates the majority of builders still see conditions as positive in their markets, the NAHB said.

...a bit more...

[UpInArms]

74. U.S. home builder sentiment sours in March-report

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T172524Z_01_N15404151_RTRIDST_0_ECONOMY-HOUSING-NAHB-UPDATE-1.XML

NEW YORK, March 15 (Reuters) - An index of U.S. home builder sentiment fell in March to the lowest in nearly three years in response to rising mortgage rates and softening demand, the National Association of Home Builders said on Wednesday.

The NAHB/Wells Fargo Housing Market index slid to 55 in March, seasonally adjusted, from February's downwardly revised 56. It was the lowest since April, 2003, when it came in at the same level.

"Today's HMI provides the latest evidence of a predicted and orderly cooling process for the nation's single-family new-home market, which easily hit record highs in 2005," NAHB President David Pressly, a home builder in Statesville, North Carolina, said in a press release.

The index was also below its year-ago level of 70.

<snip>

He attributed March's decline to eroding affordability conditions, as well as a gradual withdrawal of investor demand in some areas.

...more...

[UpInArms]

60. Lawyers argue Blackwater deaths lawsuit belongs in federal court

http://www.dailypress.com/news/local/virginia/dp-va--iraq-blackwaterde0314mar14,0,4711947.story?coll=dp-headlines-virginia

RICHMOND, Va. -- Attorneys for a security contractor argued in a federal court Tuesday that the state courts of North Carolina aren't the proper place for a wrongful death lawsuit filed by the survivors of four former employees killed and mutilated in Iraq.

Blackwater Security Consulting, based in Moyock, N.C., contends the federal courts should consider the case because of a federal workman's compensation law it believes applies to civilian employees working overseas for the government. The law bars lawsuits and entitles the men's dependents only to payments of $1,100 weekly apiece.

North Carolina courts allow financial compensation in wrongful death lawsuits.

The slayings of contractors Wesley J.K. Batalona, Stephen "Scott" Helvenston, Michael R. Teague and Jerko "Jerry" Zovko in March 2004 made worldwide headlines. Frenzied crowds dragged the men's charred bodies through the streets of Fallujah and strung two of them up from a bridge.

The families sued the company in state court in January 2005, alleging Blackwater cut corners that led to the deaths. The suit said the workers were sent into Fallujah without proper equipment and personnel to defend the supply convoy they were guarding.

...more...

[UpInArms]

62. Ex-Enron Exec Says Lay Cold to Criticism

http://www.cbsnews.com/stories/2006/03/15/ap/business/mainD8GBRMLGM.shtml

(AP) Vince Kaminski tried to do his job in telling Enron Corp.'s top executives when he believed Enron conducted risky business _ something he was supposed to police as head of risk and research.

But his criticism in 1999 of a partnership back by Enron stock got him pushed out of the company's risk squad by Chief Executive Jeffrey Skilling. Kaminski thought the partnership overflowed with conflicts of interest because it was run by Chief Financial Officer Andrew Fastow.

The next time he spoke up, at an October 2001 management meeting headed by Enron founder Kenneth Lay weeks before the company imploded, he was cut off. He then got a call from a human resources executive, which made Kaminski fear being fired.

"You weren't fired, were you Mr. Kaminski?" federal prosecutor Sean Berkowitz asked him Tuesday at the fraud and conspiracy trial of Lay and Skilling.

"Eventually, everybody was fired," Kaminski replied somberly, referring to the collapse and loss of thousands of jobs at the Houston-based energy trading company where he worked nearly 10 years.

...more...

[UpInArms]

93. Enron whistle-blower says Lay launched bogus probe

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-03-15T203510Z_01_N15408321_RTRIDST_0_ENRON-TRIAL-PICTURE.XML

HOUSTON, March 15 (Reuters) - Enron Corp. whistle-blower Sherron Watkins recounted on Wednesday how she warned then-chief executive Ken Lay in August 2001 that financial fraud could destroy the company, but that his response was to launch a "bogus" investigation and try to have her fired.

At the same time Watkins was trying to save the now-bankrupt company where she was vice president of corporate development, Lay was selling off millions of dollars of Enron stock to pay off loans, prosecutors said.

Watkins, testifying in the fraud and conspiracy trial of Lay and fellow former Enron boss Jeffrey Skilling, said Lay appeared to take her seriously when she discussed with him off-the-books partnerships run by chief financial officer Andrew Fastow that were running up huge losses for Enron.

In a now-famous Aug. 16, 2001 memo, she wrote to Lay, "It sure looks to the layman on the street that we are hiding losses in related partnerships and will compensate that company with Enron stock in the future."

"I am incredibly nervous we will implode in a wave of accounting scandals," she wrote.

On Wednesday, Watkins testified, "This was not just aggressive accounting, it was fraudulent accounting. I couldn't believe we had done it."

In an Aug. 22, 2001 meeting with Lay, he promised an investigation, Watkins said, but the probe that followed was conducted by the lawyers and accountants who originally approved the questionable deals and, not surprisingly, found them to be okay again, she said.

...more...

[UpInArms]

67. 12:11 EST nooner numbers and blather

Dow 11,160.63 +9.29 (+0.08%)
Nasdaq 2,296.32 +0.42 (+0.02%)
S&P 500 1,296.49 -0.99 (-0.08%)
10-Yr Bond 4.741 +0.45 (+0.96%)

NYSE Volume 976,114,000
Nasdaq Volume 956,973,000

12:00 pm : Stocks opened with little fanfare and continue to exhibit a sense of lethargy following yesterday's broad-based rally as the market remains focused on bond yields to set the underlying tone. Yesterday, the 10-yr note recorded its biggest one-day gain since December, temporarily knocking the yield back below 4.7%; but consolidation in the 10-yr (-12/32) and subsequent rebound in the yield to 4.74% has stalled follow-through buying efforts in stocks. Bonds have consolidated following an unexpected rise in manufacturing to a very strong 31.2 (consensus 19.0) as traders also remain cautious ahead of this afternoon's release of the Fed Beige Book and tomorrow's CPI report -- both of which could show inflationary implications.

With regard to the lack of industry leadership also underpinning a sense of nervousness, Energy paces the way lower among the eight sectors posting losses. Oil prices are consolidating some of yesterday's solid gains following a larger than expected build in crude inventories. Financial has also been in focus after Lehman Brothers (LEH 144.97 -0.33) posted record results, but shares, which were up 2% yesterday ahead of results and in sympathy with strong earnings from Goldman Sachs (GS 148.11 -1.31), have consolidated and stalled momentum in the S&P's most influential sector. Despite blowout Q4 results from Sears Holdings (SHLD 131.10 +13.83) and reports that Kohlberg Kravis Roberts has submitted a $12.5-13.0 bln nonbinding bid to purchase a majority stake in General Motors' (GM 21.29 +0.15) GMAC division, weakness in homebuilding, retail, media, and publishing have weighed on Consumer Discretionary.

Industrials, however, has shown relative strength following upside EPS guidance from Union Pacific (UNP 89.75 +4.54), which plays into our Overweight rating on the sector and our bullish opinion on the railroads. The Materials sector has also been a bright benefiting largely from DuPont's (DD 42.85 +0.93) optimistic outlook. DJ30 -1.05 DJTA +1.1% NASDAQ -1.70 SOX -0.6% SP500 -1.96 NASDAQ Dec/Adv/Vol 1433/1402/896 mln NYSE Dec/Adv/Vol 1518/1552/654 mln

[UpInArms]

70. WP: When $8 Trillion Isn't Enough - Dimson's Unabashed Recklessness

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/14/AR2006031401693.html

excerpt:

The inevitable increase will be the fourth such hike in five years, for a total rise in the national credit limit of more than $3 trillion. During his time in office, President Bush has presided over a 46 percent increase in the federal debt, from about $5.6 trillion. By contrast, during President Bill Clinton's two terms, the debt grew from less than $4 trillion to $5.6 trillion, a 28 percent increase -- and during the last few years of his presidency, Mr. Clinton actually began to pay down the country's "real" debt, that is, debt held by the public, as opposed to the IOUs in Social Security and other government accounts.

Put another way, Mr. Bush has managed to rack up more new debt during his five years in office than the entire debt amassed by the United States through 1988. And there is more to come: The president's budget envisions the debt rising to $11.5 trillion by 2011. This means that an increasing share of an increasingly tight budget must be devoted simply to paying interest -- an estimated $220 billion this fiscal year alone. Remember: This is the president who entered office promising to pay off $2 trillion in debt held by the public over the next decade. Far from being paid down, the debt held by the public has grown, from $3.3 trillion in 2001 to $5 trillion this year.

<snip>

Because, as the debt ceiling approaches $9 trillion, it's time to pause and consider the unabashed recklessness of the Bush administration's fiscal policies and its unwillingness to alter its tax-cutting course to accommodate new budgetary realities. "Future generations shouldn't be forced to pay back money that we have borrowed," Mr. Bush said in March 2001. "We owe this kind of responsibility to our children and grandchildren." Where is that responsibility now?

...more at link...

When the giant crapweasel said: "Future generations shouldn't be forced to pay back money that we have borrowed", he was only referring to the offspring of the top 1% in this country - and that includes his freakin' BFEE family.

:nuke:

[54anickel]

71. So who do we really pay all that interest to anyway?

Cripes, makes me think of indentured servitude.

This means that an increasing share of an increasingly tight budget must be devoted simply to paying interest -- an estimated $220 billion this fiscal year alone.

[UpInArms]

73. not sure where this fits in... but....

just thinking here:

http://www.50years.org/cms/ejn/story/240

Debt: IMF and World Bank policies have forced poor countries to make foreign debt service a higher priority than basic human needs. The World Bank claims that it is "sustainable" for countries like Mozambique to pay a quarter of their export earnings on debt service. Yet after World War II, Germany was not required to pay more than 3.5% of its export earnings on debt service. Poor countries today need a ceiling on debt service similar to the one Germany had. According to UN statistics, if Mozambique were allowed to spend half of the money on health care and education which it is now spending on debt service, it would save the lives of 100,000 children per year.

[54anickel]

78. Wonderful.... I feel the Mogambo has taken me over or something

as I am beginning to have nothing but contempt for the CBs. There really is a Plutocracy, isn't there?

[UpInArms]

81. Bernanke warns about size of U.S. deficit

http://www.cbc.ca/story/business/national/2006/03/14/bernanke-060314.html

America's huge deficits place future living standards at risk, warned the new Federal Reserve chairman.

Ben Bernanke said the deficit could be a time bomb that is set to explode when baby boomers start picking up Social Security and Medicare benefits after they retire.

The deficits need to be curbed now before they cause long-term damage to the economy, said Bernanke.

His comments were contained in a written response to questions after an appearance at a U.S. congressional hearing on the economy in February. They were released on Tuesday.

Last year's budget deficit was $319 billion US, the third-highest figure in U.S. history. This year, the White House is projecting the deficit to balloon to a new record of $423 billion.

...more...

The deficit is not sustainable - today's TICs report proves that the immediate future is definitely becoming less stable.

[UpInArms]

72. Bush vs. Clinton - By The Numbers

http://politicalmindfield.com/WordPress/?p=170

<snipping past some great comparative numbers>

Bill Frist: “I will have no part in the creation of a constitutional double-standard to benefit the President. He is not above the law. If an ordinary citizen committed these crimes, he would go to jail.”

Chuck Hagel: “There can be no shading of right and wrong. The complicated currents that have coursed through this impeachment process are many. But after stripping away the underbrush of legal technicalities and nuance, I find that the President abused his sacred power by lying and obstructing justice. How can parents instill values and morality in their children? How can educators teach our children? How can the rule of law for every American be applied equally if we have two standards of justice in America—one for the powerful and the other for the rest of us?”

Tom Delay – (I LOVE This One!) “This nation sits at a crossroads. One direction points to the higher road of the rule of law. Sometimes hard, sometimes unpleasant, this path relies on truth, justice and the rigorous application of the principle that no man is above the law. Now, the other road is the path of least resistance. This is where we start making exceptions to our laws based on poll numbers and spin control. This is when we pitch the law completely overboard when the mood fits us, when we ignore the facts in order to cover up the truth.

No man is above the law, and no man is below the law. That’s the principle that we all hold very dear in this country.”

Henry Hyde – “I suggest impeachment is like beauty: apparently in the eye of the beholder. But I hold a different view. And it’s not a vengeful one, it’s not vindictive, and it’s not craven. It’s just a concern for the Constitution and a high respect for the rule of law. ... as a lawyer and a legislator for most of my very long life, I have a particular reverence for our legal system. It protects the innocent, it punishes the guilty, it defends the powerless, it guards freedom, it summons the noblest instincts of the human spirit.

The rule of law protects you and it protects me from the midnight fire on our roof or the 3 a.m. knock on our door.”

...more quotes...

[54anickel]

77. Hence the Repukes wanting a quick vote on Fiengold's censure

Can't have any of these quotes coming up in a debate on the matter. I am still so pissed at Dems not backing Russ on this one. There should have been support and a demand for debate. "This but we're at war" BS is getting old. We're gonna be at war forever since you can't even define the enemy much less determine when they've been defeated.
If not now - when? GD SOBs!

[UpInArms]

76. "president was the emcee of a traveling infomercial"

http://www.latimes.com/news/politics/la-na-bush15mar15,1,3240071.story

CANANDAIGUA, N.Y. — With the initial enrollment period for the Medicare prescription drug plan more than half over, President Bush played the pitchman Tuesday, campaigning at a community meeting and senior residence to encourage participation in the program.

"Take a look!" the president said, his voice rising. "It's a good deal."

For 34 minutes, the president was the emcee of a traveling infomercial, calling on his experts to talk about the drug program's benefits. The participants included the head of the Medicare program, the manager of a grocery chain's local pharmacies, and a retired couple who had signed up for the program and had little but praise for it.

"Call 1-800-MEDICARE, or go to medicare.gov on the Internet," Bush exhorted about 1,000 people in the gymnasium of Canandaigua Academy, a public high school in this city near Rochester in upstate New York. "You'll see," he said of the Medicare website. "It's user-friendly."

...more...

Would you buy a used car from this crapweasel?

[UpInArms]

94. Bush rejects push to extend drug-benefit deadline

If this is such a "good deal", why does he reject a deadline extension?

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-03-15T210458Z_01_N15410060_RTRIDST_0_BUSH-MEDICARE.XML

SILVER SPRING, Md., March 15 (Reuters) - President George W. Bush on Wednesday rejected calls to extend a May 15 deadline for the elderly to sign up for a new prescription drugs plan despite complaints from seniors that it is too confusing.

The president also said it was the responsibility of the children of older people to help them understand the system.

Bush faced some gently challenging questions about nuclear proliferation, global warming and the millions of Americans without health insurance when he met retirees at a senior citizen community in Silver Spring, just outside Washington.

But most of the questions were about the bureaucratically complex prescription drug program that 26 million seniors have signed up for but which many others are shunning because of the confusing choices available.

One woman told Bush she was having trouble helping her 75-year-old mother choose among the options and asked him whether the May 15 deadline for enrolling should be extended.

Bush was resistant. "No, and the reason why is there's got to be a fixed time for people to sign up," he said.

...more...

[ozymandius]

79. 1:25 numbers and blather

Dow 11,159.58 +8.24 (+0.07%)
Nasdaq 2,299.51 +3.61 (+0.16%)
S&P 500 1,297.08 -0.40 (-0.03%)
10-Yr Bond 47.45 +0.49 (+1.04%)
NYSE Volume 1,237,035,000
Nasdaq Volume 1,196,717,000

12:30 pm : No change to the prevailing trend as the afternoon session gets underway. Reports that Lockheed Martin (LMT 74.20 +0.13) has received a ten-year, $19.25 bln S3 contract from the U.S. Army has helped Industrials hit session highs while modest gains in networking and software have helped Technology inch into positive territory. DJ30 +7.60 NASDAQ +0.78 SP500 -0.97 NASDAQ Dec/Adv/Vol 1470/1384/1.01 bln NYSE Dec/Adv/Vol 1574/1510/744 mln

[UpInArms]

80. Lobby Groups Watching Effects of Port Deal

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/15/AR2006031500986.html

WASHINGTON -- Lobbying groups with a big stake in international business are watching _ some eagerly, others anxiously _ to see whether public outrage over a foreign-owned company's U.S. ports deal extends to trade or other issues before Congress.

Unions hope it is a sign of a broader groundswell against the shifting of American jobs to other countries, and that Congress will respond.

"I think because of the port deal, Americans are waking up to the fact that globalization without rules may be making America weaker," said Bill Samuel, the AFL-CIO's legislative director.

"We won't have to change our arguments, but I think the environment has completely changed," Samuel added.

Business lobbyists are busy trying to make sure the favorable momentum they've had with a Republican-controlled Congress and White House on trade and foreign investment issues doesn't change. They acknowledge that may not be easy right now, particularly with a stirred-up public in an election year.

...more...

business lobbyists versus jobs? hmmm....

[UpInArms]

82. 1:51 EST getting ready for the FOMC "good news" report

Dow 11,166.23 +14.89 (+0.13%)
Nasdaq 2,302.07 +6.17 (+0.27%)
S&P 500 1,298.02 +0.54 (+0.04%)
10-Yr Bond 4.739 +0.43 (+0.92%)

NYSE Volume 1,345,441,000
Nasdaq Volume 1,276,687,000

1:30 pm : Recent recovery efforts seem to have stalled as the market's latest attempt to rebound is short-lived. While rising interest rates remain an underlying concern stalling yesterday's momentum, the growing realization that second-half estimates for S&P 500 aggregate operating EPS growth are still too high at 12-13% and need to come down significantly is also contributing to today's lack of enthusiasm. DJ30 +8.16 NASDAQ +3.35 SP500 -0.23 NASDAQ Dec/Adv/Vol 1403/1521/1.21 bln NYSE Dec/Adv/Vol 1459/1676/910 mln

[ozymandius]

86. Bush is Winning the War Against the Middle Class

-excerpt-

Despite the cries from the RWNM about the "liberal press" not reporting good economic numbers, the reality of the situation is simple: this economy is killing the middle class.

Let's start with wages. According to a recent Federal Reserve Report

The survey shows that, over the 2001-2004 period, the median value of real family income before taxes continued to trend up, rising 1.6%, whereas the mean value fell 2.3%. Patterns of change were mixed across demographic groups. These results stand in contrast to the strong and broad gains seen for the period between 1998 and 2001 surveys and to the smaller but similarly broad gains between the 1995 and 19989 surveys.

In addition, overall wealth has showed a similar slowing of overall growth over the same period:

In contrast, the growth in wealth between 1998-2001 surveys and between the 1995-1998 surveys was stronger both in the mean and in the median , and the growth was shared by most demographic groups.

So why is this happening? The US is losing boatloads of high-paying jobs. According to the Bureau of Labor Statistics, the US economy has lost 2,877,000 manufacturing jobs and 635,000 information service jobs since January 2001. These jobs are high-paying jobs. They have been replaced with lower paying service jobs that place the typical middle class family in a tougher financial position. Necessary expenses as a percentage of income have risen from a 20-year range to 44% - 48% to 54% in 2005. The American family has increased their debt load to record levels to maintain their standard of living.

more...

http://www.dailykos.com/story/2006/3/15/112223/190

[UpInArms]

87. 2:22 EST Markets have Ectascy Attack after FOMC WhiteWash Report

Dow 11,205.77 +54.43 (+0.49%)
Nasdaq 2,308.84 +12.94 (+0.56%)
S&P 500 1,302.47 +4.99 (+0.38%)
10-Yr Bond 4.739 +0.43 (+0.92%)

NYSE Volume 1,518,728,000
Nasdaq Volume 1,424,155,000

2:00 pm : Buyers return over the last 30 minutes, spearheaded by strength in Technology. Providing the bulk of sector leadership has been a surge in computer storage, led by an analyst upgrade on SanDisk (SNDK 56.56 +3.14), while gains in networking (e.g. CIEN, LU, CMVT) and software (e.g. ORCL, ERTS, ADSK) have also helped offset modest weakness in hardware and semiconductor.DJ30 +23.21 NASDAQ +6.50 SOX -0.3% SP500 +1.05 NASDAQ Dec/Adv/Vol 1352/1585/1.30 bln NYSE Dec/Adv/Vol 1426/1734/1.01 bln

[UpInArms]

89. US stocks turn higher after Fed's economic survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-15T193209Z_01_N15291617_RTRIDST_0_MARKETS-STOCKS-UPDATE-9.XML

NEW YORK, March 15 (Reuters) - U.S. stocks turned sharply higher on Wednesday as the Federal Reserve's summary of business conditions showed an increase in economic activity across the country.

The U.S. central bank's report also showed labor cost pressures little changed in January and February.

The Dow Jones industrial average <.DJI> was up 53.79 points, or 0.48 percent, at 11,205.13. The Standard & Poor's 500 Index <.SPX> was up 4.99 points, or 0.38 percent, at 1,302.47. The Nasdaq Composite Index <.IXIC> was up 12.66 points, or 0.55 percent, at 2,308.56.

Yeah! No Wage Inflation! No More Interest Rate Hikes! Hurrah!

Rah! Rah! Rah!

Siss! Boom! Bah!

Faeries and think-tank reports WIN!!!

[54anickel]

97. So we're back to the Goldilocks economy? Not too hot, not too cold,

it's juuuuuust right! Hurray!!!! We're gonna be RICH!

[UpInArms]

88. FL: ABC Distributing to begin layoff phase of closure

http://southflorida.bizjournals.com/southflorida/stories/2006/03/13/daily29.html?jst=b_ln_hl

Starting at the end of May, 1,035 workers at the three ABC Distributing, locations in Hialeah and North Miami will lose their jobs.

It has been known since January the company would close. At that time, the Beacon Council said it would work with Workforce Florida, the city of Hialeah, Miami-Dade County officials and South Florida Workforce to help employees to be displaced.

<snip>

In a notice filed Monday with the state, ABC Distributing said it will dismiss the local workers May 31 to June 30.

The distribution center it is vacating has about 1 million square feet. The company may find a smaller office for the 50 jobs it may retain in administration and creative departments.

...more at link...

[UpInArms]

92. 3:23 EST bumping and grinding higher and higher

Dow 11,219.39 +68.05 (+0.61%)
Nasdaq 2,309.38 +13.48 (+0.59%)
S&P 500 1,303.70 +6.22 (+0.48%)
10-Yr Bond 4.731 +0.35 (+0.75%)

NYSE Volume 1,846,681,000
Nasdaq Volume 1,717,501,000

3:00 pm : Major indices back off their best levels but still sport modest gains for the day. While there's no denying the market has used the Beige Book as a catalyst to extend yesterday's gains, it is our sense that the stock market's recent move is more technical in nature since there was little change in the bond market to help improve sentiment. As buying activity picked up, the Dow, S&P and Nasdaq pushed through initial resistance levels 11175, 1300 and 2300, respectively.DJ30 +53.47 NASDAQ +10.02 SP500 +4.44 NASDAQ Dec/Adv/Vol 1211/1761/1.59 bln NYSE Dec/Adv/Vol 1207/2015/1.24 bln

[UpInArms]

96. closing and blather

Dow 11,209.77 +58.43 (+0.52%)
Nasdaq 2,311.84 +15.94 (+0.69%)
S&P 500 1,303.02 +5.54 (+0.43%)
10-Yr Bond 4.731 +0.35 (+0.75%)

NYSE Volume 2,257,914,000
Nasdaq Volume 2,142,945,000

During a day which showed little promise early on in the way of extending a relief rally in stocks fueled by bonds a day earlier, investors on Wednesday seemed to disregard the renewed bearish tone in Treasuries altogether, that is, after the Fed's Beige Book provided just enough of an impetus to push the major averages through key technical levels. Eight out of ten economic sectors to the upside as follow-through buying efforts lifted the S&P 500 above 1,300 for the first time since May 2001.

Stocks opened with little fanfare and traded in a very narrow range most of the day until 2:00 ET, when the Fed showed that "labor cost pressures were little changed" and that "prices at the retail level increased at only a moderate rate," providing some evidence, albeit very minor, of less incentive to go beyond what is currently expected on rate hikes. More notably was the fact that the Dow, S&P and Nasdaq garnered enough support to push through initial resistance levels of 11,175, 1,300 and 2,300, respectively.

Bonds, meanwhile, consolidated some of the gains behind the 10-yr note's biggest one-day advance since December a day earlier. An unexpected rise in the NY Empire Manufacturing Index to a very strong 31.2 (consensus 19.0) stalled follow-through buying in bonds and left traders cautious ahead of tomorrow's closely-watched CPI report.

Among the eight sectors posting gains, Industrials paced the way higher. Upside EPS guidance from Union Pacific (UNP 90.42 +5.21), which plays into our Overweight rating on the sector and our bullish opinion on the railroads, provided the bulk of sector support. Materials also turned in strong performance, led by an optimistic outlook from DuPont (DD 42.80 +0.88). Technology was strong across the board, getting a lift from several analyst upgrades (e.g. SNDK, PMCS, LRCX, STX, and ATVI).

Consumer Discretionary was in focus after New York Attorney General Eliot Spitzer sued H&R Block (HRB 20.66 -1.34) for fraudulent marketing of IRAs but the losses in specialized consulting services -- the day's worst performing industry group -- was offset set by strength in retail and autos. Blowout Q4 results from Sears Holdings (SHLD 132.29 +15.02) and reports that Kohlberg Kravis Roberts submitted a $12.5-13.0 bln nonbinding bid to purchase a majority stake in General Motors' (GM 21.50 +0.36) GMAC division were sources of support. Financial was also a focal point after Lehman Brothers (LEH 144.12 -1.18) posted record results, but the stock, which was up 2% yesterday in sympathy with strong earnings from Goldman Sachs (GS 148.92 -0.50), coupled with rising bond yields, kept sector gains from the S&P's most influential sector. BTK +0.8% DJ30 +58.43 DJTA +2.2% DJUA +0.4% DOT +0.7% NASDAQ +15.94 NQ100 +0.8% R2K +0.9% SOX +0.3% SP400 +0.7% SP500 +5.54 XOI +0.7% NASDAQ Dec/Adv/Vol 1162/1881/2.12 bln NYSE Dec/Adv/Vol 1158/2104/1.63 bln

[Roland99]

99. Retail sales down 1.3%; Consumer confidence dropping; Stocks RISE!

WHEEEEE!!!!