STOCK MARKET WATCH, Tuesday 25 April

[ozymandius]

Tuesday April 25, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 1000 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1951 DAYS
WHERE'S OSAMA BIN-LADEN? 1651 DAYS
DAYS SINCE ENRON COLLAPSE = 1612
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 April 24, 2006

Dow... 11,336.32 -11.13 (-0.10%)
Nasdaq... 2,333.38 -9.48 (-0.40%)
S&P 500... 1,308.11 -3.17 ( -0.24%)
Gold future... 623.90 -11.60 (-1.86%)
30-Year Bond 5.06% -0.04 (-0.69%)
10-Yr Bond... 4.99% -0.03 (-0.54%)






GOLD, EURO, YEN, Dollars, Loonie and Silver


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 Rob Kirby

A REVIEW OF LAST WEEK'S SILVER STREAK

So here we are at the beginning of a new week. Last week in this space, I shared my view that machinations in today’s financial markets are reminiscent of the lead up to Weimar Germany’s hyperinflationary experience in a piece titled, An Ode To the 200-Day Moving Average.

Last week’s action in the precious metals was exciting and unusual. COMEX silver futures began last week sub 13 dollars, then rallied in melt-up mode over a period of three days to within a whisker of 15 bucks before being crushed down to an inter day low in the mid 11 dollar range. At one point on Thursday, April 20, 2006 – the price of COMEX silver futures was down more than 20% with the bulk of the fall in price coming in a 45 minute time span shortly after 10:00 am ET.

-cut-

I began wondering why or how such a plunge in price could occur. Having worked either in or around financial markets for more than 20 years – I first felt that some unexpected “breaking economic news” item was just released, or perhaps some unexpected geopolitical event had occurred. Upon investigation, all that was released at 10:00 a.m. that day was Leading Indicators – published by the Conference Board. With this number being reported (-.1) much as expected along with the fact that ‘Leading Indicators’ as a number is only credited with an importance of D- on a market-moving-scale of A to C, there had to be another credible reason for the plunge – but what?

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

[Ghost Dog]

37. strategic commodities are under artificial management 24/7

"...So there you have it folks, three market commentator’s assessments of the current situation. We mutually agree that prices of strategic commodities are under artificial management 24/7. We arrive at this broad conclusion from both a fundamental and technical approach. Our few differences stem from how long we think this charade can continue while being in complete agreement that the end, whenever it comes – will most assuredly be a train wreck of Hollywood epic sized proportions."

At least, this would seem to represent the action in the US???

[specimenfred1984]

66. S&P Was Under "Artificial Management" Yesterday

with a couple of well-placed big buy orders that were preceded by no volume and followed by no volume.

[ozymandius]

73. Honestly, specimenfred1984, I wish that I could see what you see.

If there is public access to the trading data that show up on your screen, would you please share? Your point-of-view is a remarkably like the proverbial "fly on the wall" in trading issues. Thank you for participating in this thread.

:toast:

[ozymandius]

2. Today's Reports

10:00 AM Consumer Confidence Apr
Briefing Forecast 107.0
Market Expects 106.4
Prior 107.2

10:00 AM Existing Home Sales Mar
Briefing Forecast 6.60M
Market Expects 6.65M
Prior 6.91M

[UpInArms]

38. April Consumer Confidence @ 109.6 (DAMN WE ARE HAPPY!)

10:00 AM ET 4/25/06 U.S. APRIL CONSUMER CONFIDENCE ABOVE FORECAST 106.3

10:00 AM ET 4/25/06 U.S. APRIL CONSUMER CONFIDENCE HIGHEST SINCE MAY '02

10:00 AM ET 4/25/06 U.S. APRIL CONSUMER CONFIDENCE 109.6 VS REV 107.5 MARCH

[stop the bleeding]

44. yes we are n/t

[AnneD]

59. That happiness has not spread

to this part of the sunbelt yet. Maybe it is because of all the pick up trucks and the price of gas, or maybe it is because of the jobs paying less, or maybe it is the high default rate on home loans. My friends in the oil patch are dooing all right, but they aren't bragging-employment in an oil co is always a crap shoot.

[UpInArms]

54. U.S. confidence hits 4-yr high in April

http://www.marketwatch.com/News/Story/Story.aspx?siteid=mktw&guid={EABBACA3-15EE-454F-9B62-C5BDCFE1899E}&dist=bnb

WASHINGTON (MarketWatch) - U.S. consumer confidence confounded expectations and hit its highest level in almost four years in April, the Conference Board said Tuesday.

The consumer confidence index rose 2.1 points to 109.6 in April from a revised 107.5 in March. Read full survey.

The increase was unexpected. Economists forecast a decrease to about 106.3 in April from the initial estimate for March of 107.2, largely because of higher prices at the gasoline pump, according to a survey conducted by MarketWatch. See Economic Calendar.

The present situation index rose to 136.2 in April from 133.3 in March.

The expectations index jumped to 91.9 in April from 90.3 last month.

"Recent improvements in the labor market have been a major driver behind the rise in confidence in early 2006," said Lynn Franco, director of the Conference Board Consumer Research Center.

Gasoline prices have yet to dampen confidence, but further increases could dampen spirits, Franco added.

Consumers' overall assessment of the economy remains favorable. The percentage saying the economy is good rose to 29.7% from 27.9%, while the number saying it is bad rose to 15.1% from 14.7%.

...more...

[realFedUp]

56. what did everyone buy in April? was it warm weather inducing?

foreclosures?

[UpInArms]

58. Did they move Mother's Day so it could be had early? ... n/t

[Roland99]

98. Despite polls showing a majority unhappy with *'s handling of the economy

Bizarro World!

[UpInArms]

40. Existing Home Sales Report:

9:59 AM ET 4/25/06 U.S. EXISTING HOME SALES DOWN 4% YEAR-TO-DATE

9:59 AM ET 4/25/06 U.S. MARCH EXISTING HOME INVENTORIES 5.5 MONTH SUPPLY

9:59 AM ET 4/25/06 U.S. MARCH EXISTING HOME INVENTORIES RECORD 3.19MILLION

9:59 AM ET 4/25/06 U.S. EXISTING HOME MEDIAN PRICE UP 7.4% YEAR-OVER-YEAR

9:59 AM ET 4/25/06 U.S. MARCH EXISTING HOME SALES BEATS 6.70 MILLION EXPECTED

9:59 AM ET 4/25/06 U.S. MARCH EXISTING HOME SALES RISE 0.3% TO 6.92 MILLION

[UpInArms]

45. US March existing home sales edge higher

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T140614Z_01_WBT005207_RTRIDST_0_ECONOMY-HOMES-URGENT.XML

WASHINGTON, April 25 (Reuters) - The pace of existing home sales in the United States picked up by 0.3 percent in March, defying expectations for a slowdown, due to increased buying in some less expensive markets and in part to warm weather, a trade group said on Tuesday.

Sales of existing U.S. homes rose to a 6.92 million-unit rate in March from February's downwardly revised 6.90 million-unit pace, according to the National Association of Realtors. The existing home sales figure includes both single-family homes and condos.

Analysts had expected home resales to slow to a 6.7 million-unit rate from February's originally reported 6.91 million-unit pace due to rising mortgage rates that have made purchases less affordable.

<snip>

The rise in total sales was driven by a 0.3 percent increase in single-family home sales and a 0.2 percent gain in condo sales.

Inventories soared 7 percent in March, leaving a record 3.19 million existing homes available for sale at the end of the month. That equates to 5.5 months' supply at the current sales pace, the largest inventory since July 1998, when supply equaled 5.6 months' worth.

...more...

[54anickel]

85. Home foreclosures increase 72%

http://www.chicagotribune.com/business/chi-0604250181apr25,1,3999687.story?coll=chi-business-hed

IRVINE, Calif. -- Mortgages entering foreclosure jumped 72 percent during the first quarter from a year earlier, as higher interest rates increased monthly payments and strained the budgets of homeowners with adjustable-rate loans.

Lenders began foreclosing on 323,102 mortgages, a ratio of one in 358 U.S. households, according to a report issued Monday by RealtyTrac Inc. Banks typically start foreclosing on mortgages after payments are 90 days late.

"When you couple the higher bills that people with adjustable loans saw with the higher-than-expected energy costs, you see a lot of homeowners stretched beyond the point where they could make their payments," said Rick Sharga, a RealtyTrac vice president.

Homeowners who would otherwise sell their houses to pay off their loans face a weaker market, he said.

[ozymandius]

3. Oil steadies above $73; China demand, Iran support

TOKYO (Reuters) - Oil held firm above $73 on Tuesday as strong demand from China and renewed worries over Iran's nuclear ambitions halted profit-taking from last week's record highs.

-cut-

Prices came under pressure earlier in the session after the Organization of the Petroleum Exporting Countries pledged to keep pumping at near maximum rates, with a daily production ceiling of 28 million barrels, at talks by ministers in Doha on Monday.

But U.S. crude prices trimmed losses as official Chinese customs data showed that crude imports into the world's second-largest oil consumer rose 10.9 percent in March from a year earlier, leaving first-quarter imports up 25 percent.

-cut-

OPEC ministers said on Monday that geopolitical tensions in Iran, Nigeria and other key oil-producing nations have added as much as $15 to the price of oil and that the cartel, the source of a third of global oil, was powerless to pull down high oil.

more

[ozymandius]

4. BP first quarter profit beats forecasts

LONDON (Reuters) - BP Plc (BP.L) beat forecasts with a first-quarter replacement cost profit of $5.265 billion on Tuesday on the back of high oil prices.

The world's second-largest listed oil firm by market capitalization said in a statement that the replacement cost result, which excludes changes in inventory values, included a $17 million charge for non-operating items.

Excluding such one-offs, BP's underlying or "clean" net profit was $5.282 billion, compared with an average forecast of $5.21 billion from a Reuters poll of eight analysts and $4.96 billion in the same period of 2005.

more about this thievery here

[ozymandius]

5. Bush asks government to probe high gas prices (WARNING: quotes Bush)

WASHINGTON (Reuters) - President George W. Bush, trying to stave off a potential election-year problem for fellow Republicans, has asked the government to look into spiking gas prices and if Americans are being treated fairly.

With oil prices hitting record highs and gas at the pump topping $3 a gallon in some places, Democrats hoping to win control of Congress in November have used the issue to slam White House energy policy and Republicans' ties to big oil companies.

-cut-

Bush, a former Texas oilman, has called for the United States to kick its "addiction" to oil and predicted a "tough summer" for drivers, but there is not a lot he can do to reduce gas costs quickly and some parts of his plan have been in place for months.
-cut-

"It's important to make sure that there's not any price gouging," he said. "The federal government has a responsibility to act."

more

[UpInArms]

15. U.S. parties scramble to dodge gas backlash

http://www.canada.com/nationalpost/financialpost/story.html?id=00009796-427b-4df7-97b6-b0e6e11307ee&k=53988

excerpt:

The recent jump in gasoline prices could not come at a worse time for U.S. politicians, who returned to Capitol Hill after a three-week break, and oil companies. Prices have jumped 17% in the past several weeks, even as oil prices fell 3% in trading yesterday. The Energy Department yesterday predicted prices well above US$3 per gallon this summer.

At the same time, many of the major oil companies are reporting first-quarter earnings after record profits during the hurricanes-inspired run-up during the final three months of last year.

Last year, the combined profits of Exxon Mobil Corp., the world's biggest oil company, number two BP PLC, Royal Dutch Shell PLC, Chevron Corp. and ConocoPhillips totalled more than US$111-billion, something which has sparked a huge backlash.

Anger over oil prices translates into more woes for George W. Bush, the President, and his Republican Party, which are at record lows in the polls.

About 75% of Americans polled said they disapprove of Mr. Bush's handling of the gas price surge. The issue ranks third in major problems after Iraq and immigration.

"The public is angry with Congress, and this is bad news for the Republican party," said the Pew Research Center in Washington.

...more...

[RawMaterials]

24. Update 1: Critics Question Exxon Executive Pay

this is proubably a good starting point dont you think??

http://www.forbes.com/feeds/ap/2006/04/15/ap2672475.html


A $69.7 million compensation package and $98 million pension payout to Exxon Mobil Corp.'s former chief executive and chairman Lee R. Raymond has some shareholders and economists asking, "how much is enough?"

His $98 million pension payout reflects 43 years of service. But he would have received nearly $17 million less had he retired just last year, according to the company's 2005 proxy statement.

[54anickel]

75. Look at the board of directors and where they came from...

I reads like a Who's Who of piss-poorly managed companies that were run into the ground and retired, current CEOs, and former execs that retired quite handsomely themselves. Shareholders ought to pay a bit more attention to whom they are electing to the freakin' board!

http://www.exxonmobil.com/Corporate/InvestorInfo/Corp_II_Board.asp

[AnneD]

28. Morning Marketeers,

:donut: and lurkers. Ozy...I guess you could title that article "Inspector Reneaux to investigate illegal gambeling at Rick's Cafe American".:spray:

I was doing the happy dance, I found gas at 2.79 and topped off. It has been 2.81. Yeh, I know it is 2 cents but comparison shopping is the only tool we have now.

And speaking of tools...why do boards approve such big pay checks for CEO's. When you get them on the stand, they say they weren't involved in the day to day and they don't know what is going on. So what are they being paid for....Kenny Boy is up on the stands and is his charming self (he is disarming). I am interested in the cross examination. Should be interesting.

[UpInArms]

31. Bush to order gas-price probe (demands his share of outrageous $$?)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B81A0298B%2D9A3E%2D431D%2DAE28%2D4FABFDB77E5A%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- President Bush will announce Tuesday that he has ordered federal regulators to probe the nation's fuel markets for signs of collusion, said White House press secretary Scott McClellan. The Associated Press said that when asked if there were signs energy companies were cheating, McClellan told reporters: "Well, gas prices are high right now, and that's why you want to make sure there's not." Top congressional Republicans on Monday pressed Bush to order the Justice Department and Federal Trade Commission to look for signs of possible price gouging. Bush is set to deliver remarks on gas prices in a speech later Tuesday morning.

[ozymandius]

35. Awww ... shucks!

He's just pissed that he failed as an oil executive years ago.

[AnneD]

53. The joke in the patch was...

was that he was the only one that could hit a dry hole in Saudia Arabia.

[wordpix]

47. "pwease, BigOil, don't pwice gouge Amurricans anymore, pwiddy pwease."

What a bunch of ineffective BS from the Dumptyman

[Ghost Dog]

139. Bush scraps enviromental, public health gasoline standards

^Better headline, I think.

Quote from the article above (emphasis added): "Bush will talk on Tuesday about short- and long-term answers in a four-part plan that his spokesman Scott McClellan said would ensure consumers were treated fairly, promote greater fuel efficiency, boost gasoline supply in the United States and promote alternative fuels."

CLOSER TO THE TRUTH:

Reuters (Washington), headlined "Bush unveils steps to counter high oil prices": "...Bush called on the U.S. Environmental Protection Agency to use fully its authority to waive federal clean-burning gasoline rules this summer, and called for a state task force to look in to ways to cut the dozens of so-called boutique fuel blends, which make it harder for refiners to move gasoline supplies to regions hit by shortages. "When you have an uncoordinated, overly complex set of fuel rules, it tends to cause the price to go up," Bush said."

FT (Washington), headlined "Bush calls for probe into petrol price-fixing": "...In his speech Mr Bush {asked} the Environmental Protection Agency to waive local fuel requirements to relieve concerns about switching to ethanol, and expanding refining capacity."

Le Temps (Geneva), headlined "Les prix du pétrole retombent après l'intervention du président Bush" - Oil prices fall after Bush intervention: "...M. Bush a également rassuré en annonçant que son gouvernement envisageait d'assouplir les normes environnementales selon lesquelles les raffineries doivent utiliser de l'éthanol et non plus du MTBE comme additif à l'essence." - Trans: ...Mr. Bush provided further reassurance by announcing that his government envisages relaxing the environmental standards requiring refineries to use ethanol instead of MTBE as a gasoline additive.

Yup, sure enough, the DU thread on this (quoting AP), headline "Bush Eases Environmental Rules on Gasoline") is here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2246653

[Ghost Dog]

156. More guff at Reuters (US) here, including:

http://yahoo.reuters.com/news/articlenews.aspx?type=topNews&storyID=2006-04-25T193654Z_01_N24353665_RTRUKOC_0_US-BUSH-ENERGY.xml

(no mention of MTBE etc. here)

Bush takes aim at gasoline prices

<snip>

Bush called on Congress to take away from the oil companies about $2 billion in tax breaks over 10 years, such as subsidizing research into deepwater drilling.

Bush had signed the tax breaks into law as part of a comprehensive energy bill last summer. He said the tax breaks are now unnecessary at a time of "record oil prices and large cash flows."

"Taxpayers don't need to be paying for certain of these expenses on behalf of the energy companies," Bush said.

Massachusetts Democratic Sen. John Kerry took Bush up on the offer, saying he would introduce legislation on Tuesday to repeal the tax breaks and that he hoped Bush was sincere.

"For a moment, President Bush finally stopped talking like an oil company executive," Kerry said.

/more...

Uh huh.

[54anickel]

159. BASTARDS!!!! eom

[ozymandius]

7. The pain ... and the gain

Major oil companies begin reporting robust first-quarter profits today in a string of earnings announcements likely to cheer their shareholders and infuriate motorists pumping $3 gasoline into their tanks.

"I don't demonize the oil companies, but I know the crowd will have a lynch-mob mentality" when hit with multibillion-dollar oil earnings every day this week while coping with near-record gasoline prices, says analyst Tom Kloza of Oil Price Information Service.

The big profits come against a backdrop not only of high fuel prices, but also scattered gas shortages along the heavily populated East Coast. Congress is talking about imposing new taxes on oil companies and pushing harder for antitrust investigations of possible price manipulation. President Bush plans to announce in a speech today that he has asked the Energy and Justice departments to open inquiries into possible cheating in the gasoline markets, White House press secretary Scott McClellan said.

The spotlight on Big Oil is more intense than at any time since allegations of gouging and price manipulation erupted after Hurricane Katrina closed oil and natural gas operations in the Gulf of Mexico last August. Eight months later, 22.3% of Gulf oil production remains shuttered. What's different this time, what could make it more uncomfortable for oil companies, is that the fresh outrage comes atop leftover ill will from energy price increases after Katrina.

http://www.usatoday.com/money/industries/energy/2006-04-25-gas-oil-cover-usat_x.htm

[54anickel]

61. Have they done ANY investing on refineries yet? How are they doing on

patching up the hurricane damage to those in the Gulf? I suppose they can blame the gov't and FEMA for still not having those maps depicting the flood plains done yet. :eyes:
Hasn't it been like 20 years since they've done any building of refineries? Didn't they stop some 20 years ago because the refinery overcapacity was keeping gas low and cutting profits?

[AnneD]

120. Yes, you are right....

try this site..This Week in Petroleum

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

<snip>
First, a larger-than-normal amount of refinery capacity is currently offline, reducing the production of gasoline. Three refineries on the Gulf Coast shut down by last fall’s hurricanes are only now reportedly beginning to return to operation, or soon will be. Additionally, some refineries that were not damaged by the hurricanes deferred planned fall maintenance until this spring, so as to maximize production immediately following the hurricanes. However, this means that we now have refineries undergoing previously scheduled spring maintenance, plus those that had deferred maintenance from last fall.

<snip>

First, a larger-than-normal amount of refinery capacity is currently offline, reducing the production of gasoline. Three refineries on the Gulf Coast shut down by last fall’s hurricanes are only now reportedly beginning to return to operation, or soon will be. Additionally, some refineries that were not damaged by the hurricanes deferred planned fall maintenance until this spring, so as to maximize production immediately following the hurricanes. However, this means that we now have refineries undergoing previously scheduled spring maintenance, plus those that had deferred maintenance from last fall.

<snip>

Third, the other major factor influencing gasoline prices is the transition from MTBE reformulated gasoline (RFG) to ethanol RFG in some parts of the country, most notably much of the East Coast and major cities in Texas. How smoothly this transition occurs will have a significant impact on the near-term path of gasoline prices. Already there are signs of some problems getting sufficient supplies in a timely fashion in parts of Virginia, mostly the Tidewater and Virginia Beach areas, with some problems also experienced around Richmond.


Reguarding building refineries....

http://www.gasandoil.com/goc/news/ntn12966.htm


US appears to have built its last refinery
12-06-01 No new refineries have been built in the US in the past 25 years. And petroleum industry experts say anyone would have to be crazy to launch such an effort -- even though present refineries are running at nearly 100 % of capacity and local gasoline shortages are beginning to crop up.

Why does the industry appear to have built its last refinery?
Three reasons: Refineries are not particularly profitable, environmentalists fight planning and construction every step of the way and government red-tape makes the task all but impossible. The last refinery built in the US was in Garyville, Louisiana, and it started up in 1976.
Energy proposed building a refinery near Portsmouth, Virginia, in the late 1970s, environmental groups and local residents fought the plan -- and it took almost nine years of battles in court and before federal and state regulators before the company cancelled the project in 1984.

Industry officials estimate the cost of building a new refinery at between $ 2 bn and $ 4 bn -- at a time the industry must devote close to $ 20 bn over the next decade to reducing the sulphur content in gasoline and other fuels -- and approval could mean having to collect up to 800 different permits. As if those hurdles weren't enough, the industry's long-term rate of return on capital is just 5 % -- less than could be realized by simply buying US Treasury bonds.
"I'm sure that at some point in the last 20 years someone has considered building a new refinery," says James Halloran, an energy analyst with National City Corp. "But they quickly came to their senses," he adds

[54anickel]

127. You know, somehow I'm betting we're gonna end up subsidizing the

building of refineries with our tax dollars - it's the perfect set up. What's all in the Cheney Energy Plan anyway?

[UpInArms]

42. Rumor: Dimson to temporarily halt petroleum reserve deposits

9:59 AM ET 4/25/06 SR ADMIN OFFICIAL SAYS BUSH TO TEMP HALT RESERVE DEPOSITS:AP

[wordpix]

48. here's a link, such as the story is, which is not much

http://www.wistv.com/Global/story.asp?S=4814861&nav=0RaP

[54anickel]

57. Your oil buck hard at work in Iraq - NOT! Anyone catch this in LBN

last night?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2245750

Rebuilding of Iraqi Pipeline as Disaster Waiting to Happen

When Robert Sanders was sent by the Army to inspect the construction work an American company was doing on the banks of the Tigris River, 130 miles north of Baghdad, he expected to see workers drilling holes beneath the riverbed to restore a crucial set of large oil pipelines, which had been bombed during the invasion of Iraq.What he found instead that day in July 2004 looked like some gargantuan heart-bypass operation gone nightmarishly bad. A crew had bulldozed a 300-foot-long trench along a giant drill bit in their desperate attempt to yank it loose from the riverbed. A supervisor later told him that the project's crews knew that drilling the holes was not possible, but that they had been instructed by the company in charge of the project to continue anyway.

A few weeks later, after the project had burned up all of the $75.7 million allocated to it, the work came to a halt.

The project, called the Fatah pipeline crossing, had been a critical element of a $2.4 billion no-bid reconstruction contract that a Halliburton subsidiary had won from the Army in 2003. The spot where about 15 pipelines crossed the Tigris had been the main link between Iraq's rich northern oil fields and the export terminals and refineries that could generate much-needed gasoline, heating fuel and revenue for Iraqis.

For all those reasons, the project's demise would seriously damage the American-led effort to restore Iraq's oil system and enable the country to pay for its own reconstruction. Exactly what portion of Iraq's lost oil revenue can be attributed to one failed project, no matter how critical, is impossible to calculate. But the pipeline at Al Fatah has a wider significance as a metaphor for the entire $45 billion rebuilding effort in Iraq. Although the failures of that effort are routinely attributed to insurgent attacks, an examination of this project shows that troubled decision-making and execution have played equally important roles.

The Fatah project went ahead despite warnings from experts that it could not succeed because the underground terrain was shattered and unstable.

more...

http://www.nytimes.com/2006/04/25/world/middleeast/25pipeline.html?_r=1&hp&ex=1145937600&en=562c61591ce0e73c&ei=5094&partner=homepage&oref=slogin

[UpInArms]

60. troubled decision-making and execution have played equally important roles

I have to disagree.

"troubled decision-making" should be "making illegal decisions based on lies" and it plays the MOST IMPORTANT ROLE.

We would not be in Iraq and none of this would be happening if this MAL-ADMINISTRATION had been stopped cold by the truth and anyone had stood up to the LIARS and they had been impeached and thrown in prison for TREASON prior to 3/20/03.

[54anickel]

65. Very true! The pipeline wouldn't need fixin' if we didn't break it in

the first place by bombing the shit out of a country that had NOTHING to do with 9-11, or terrorists, or WMD, or etc, etc, etc. Their only offense was having a cruel, "dick-tater", asshole for a president (something we share in common) and oil...lots and lots of oil (something we lack).

So, if it wasn't about oil Bushie, then it was for regime change...does that mean we're next? Wonder if the world will decide it's time for regime change in the USoA soon. We seem to be becoming a financial albatross around their neck. Will they use guns and bombs or Forex?

[54anickel]

114. Rumsfeld feels heat (Author claims to be a Rummy admirer)

http://www.torontosun.com/News/Columnists/Margolis_Eric/2006/04/23/pf-1546254.html

In 53 BC, Consul Marcus Licinius Crassus, Rome’s co-ruler with Pompey and Caesar, sought military glory and political primacy by launching an invasion of the Parthian Empire. His only previous military experience was crushing the great slave revolt led by Spartacus.

Ignoring cautionary advice from his generals, Crassus led his army deep into the wastes of western Iraq. A local chieftain, secretly working for Parthia, assured Crassus he would be greeted as a liberator, and the Parthian army would flee.

At Carrhae, close to where U.S. Marines were fighting in Iraq’s Anbar province this week, Crassus’ plodding army was outmanoeuvred and annihilated by Parthian mailed knights and horse archers, whose deadly arrow fire gave posterity the wonderful term for a parting zinger, “Parthian shaft.”

Carrhae, one of Rome’s worst defeats, bears many resemblances to America’s modern debacle in Iraq. The Bush administration showed the same arrogance and ignorance as Crassus, ignoring expert advice while heeding disinformation from those with hidden agendas.

Recently, six retired American generals stunned the nation by publicly accusing Defense Secretary Donald Rumsfeld of “arrogance and mismanagement” in the Iraq war. The White House and Pentagon unleashed a massive PR counterattack.

The most devastating criticism came from Marine Lt. General Gregory Newbold: “Commitment of our forces to this fight was done with the casualness and swagger that are the special province of those who have never had to execute these missions — or bury the results.” Meaning superhawks President George Bush and VP Dick Cheney. Semper fi, General!

more... I'm with him on the last 2 paragraphs, would only add "then off to The Hague".

[UpInArms]

64. Is anyone factoring the cost of the war machine operation into the price

of oil?

How much money does it take to operate the planes, tanks, humvees, trucks, transports, etc on a daily basis in Iraq?

Are we not, as consumers, competing with our government (and our own tax dollars) for the cost of oil?

[54anickel]

68. Well now, THAT'S a great point.

Of course, in the "old America" supporting the troops meant sacrificing at home, doing with out...rationing, so the troops can have all of the best that they need to get the job done sucessfully and get their asses back home. It's one of the reasons going to war needed public support and approval.

In this new upside-down, black is white, Boosh Republickin'America, supporting the troops and protecting de-mock-racy means goin' shopping and consuming! Meanwhile we ration the goods needed to support the troops - body armor, troop numbers, armored personnel carriers, etc, etc, etc. I could see the idiot-n-thief rationing fuel to the troops next. Harm the troops or harm the greater economy (that is 2/3 consumerism), and the Repukes re-election bids....you know what Boosh's choice would be.

Shit, and Repukes love to claim "war is good for the economy". :grr:

[Roland99]

94. One of the bases in Iraq is the 2nd busiest airport in the world!

[UpInArms]

63. June Crude @ $71.80 bbl

11:18 AM ET 4/25/06 JUNE CRUDE DROPS $1.53 TO A ONE-WEEK LOW OF $71.80/BRL

[54anickel]

100. Share of Gas Guzzlers Unchanged in Quarter

http://www.latimes.com/business/la-fi-autos25apr25,1,3735497.story?coll=la-headlines-business

DETROIT — U.S. consumers bought vehicles with big, gas-guzzling engines at an unchanged rate in the first three months of the year despite rising gasoline prices, according to a survey released Monday.

In the first quarter, about 25% of all new vehicles sold in the United States were equipped with eight-cylinder engines, according to sales trends analyzed by the Power Information Network, a data tracking service of consulting firm J.D. Power & Associates, based in Westlake Village, Calif.

The market share of V-8s — typically the most powerful engines used in trucks and large sport utility vehicles — was unchanged from the fourth quarter, according to Power Information Network.

snip>

If that trend holds, it would be positive news for General Motors Corp., which has staked its product strategy this year to the launch of a new line of SUVs, including the Tahoe and Yukon, which run on V-8 engines.

"So far, the perceived gas price increases have not had any discernible impact on new-vehicle buying patterns, at least with regard to the size of the engine," said Tom Libby, an industry analyst with the Power Information Network.

more...

Oh and gotta love this quote...consumers appear to be conditioned to prices at current levels...Kiss the prospects of returning to anything under 2.80 goodbye!

[UpInArms]

137. CNN Poll: 69% say cost of gasoline is creating a hardship for families

http://i.a.cnn.net/cnn/2006/images/04/24/rel11a.pdf

5A. Have recent price increases in gasoline caused any financial hardship for you or your household?

5B. (IF YES: ) Is that a severe hardship that affects your ability to maintain your current standard of living, or is it a moderate hardship that affects you somewhat but does not jeopardize your current standard of living?

April 21-23 April 21-23

Q.5 ONLY Q.5A AND Q.5B COMBINED

Yes, caused hardship 69% Severe hardship 23%

Moderate hardship 46%

No hardship 28% No hardship 28%

No opinion 1% No opinion 1%

[UpInArms]

140. June Crude closes @ $72.88 bbl - May Unl Gas @ $2.1291 gal

3:06 PM ET 4/25/06 MAY UNLEADED GAS FALLS 4.48C, OR 2.1%, TO END AT $2.1291/GAL

2:59 PM ET 4/25/06 JUNE CRUDE CLOSES UNDER $73/BRL FOR 1ST TIME IN OVER A WEEK

2:59 PM ET 4/25/06 JUNE CRUDE FALLS 45C, OR 0.6%, TO END AT $72.88/BRL

[ozymandius]

6. Gold, silver hold steady; await direction

SINGAPORE--Gold and silver held steady on Tuesday, supported by light physical buying interest, but activity was subdued as market players sought direction after volatile trading in the past couple of days.

By 0431 GMT, spot gold was at 622.75 dollars/623.50 dollars an ounce, compared with 622.80 dollars/623.80 dollars late in New York on Monday. The levels were well below the 25-year peak of 645.75 dollars hit last Thursday.

"I think people have lost direction at these levels," said Ellison Chu, senior vice president of Standard Bank Asia in Hong Kong. "(There's) some physical interest in silver and gold, but not much."

-cut-

Gold traded in a range of 20 dollars an ounce on Monday, compared with an average 27 dollars in the previous three sessions, but much higher than the 10 dollars in the past weeks.

more

[silverlib]

20. It's still early

but it looks like the direction has been established, for today anyway.

Thanks for adding silver. You are amazing, or I should say 'consistently amazing.'

[UpInArms]

30. June Gold @ $635.20 oz - May Silver @ $12.48 oz - May Copper @ $3.284 lb

9:47 AM ET 4/25/06 JUNE GOLD CLIMBS $11.30, OR 1.8%, TO $635.20/OZ

9:47 AM ET 4/25/06 MAY SILVER UP 70.5C, OR 6%, AT $12.48/OZ

9:47 AM ET 4/25/06 JULY COPPER UP 20C, OR 6.5%, AT A RECORD $3.284/LB

[UpInArms]

36. Barclays Capital deposits 1.5 mln ounces in silver ETF

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B1B30C987%2D3FD9%2D4D77%2D907F%2D34F0B6CF48E0%7D&dist=newsfinder&symbol=&siteid=mktw

BOSTON (MarketWatch) -- Barclays Capital Inc. on April 21 deposited with the custodian of a planned silver exchange-traded fund 1.5 million ounces of silver to back 150,000 shares with each representing 10 ounces of silver, according to a regulatory filing Monday. The silver ETF, the first of its kind, is sponsored by Barclays Global Investors, a unit of British bank Barclays Plc (UK:BARC 681.50, +5.50, +0.8% ) (BCS 48.97, +0.46, +0.9% ) . The ETF, which is structured as a trust and has been highly anticipated by metals traders, is slated to trade on the American Stock Exchange under the ticker "SLV."

[UpInArms]

62. June Gold @ $632 oz - May Silver @ $12.35 oz - July Copper @ $3.235 lb

11:17 AM ET 4/25/06 JUNE GOLD CLIMBS $8.10, OR 1.3%, TO $632/OZ IN NY

11:17 AM ET 4/25/06 MAY SILVER UP 57.5C, OR 4.9%, AT $12.35/OZ

11:17 AM ET 4/25/06 JULY COPPER UP 15.1C, OR 4.9%, AT $3.235/LB

[UpInArms]

79. Silver leads broad gains among metals futures

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B11B52BD6-3E72-4246-88B6-01C2574A5A70%7D&symbol=

SAN FRANCISCO (MarketWatch) -- Silver futures climbed as much as 7% Tuesday as the first U.S. silver exchanged-traded fund appeared to move closer to launch.

Gold prices rose as much as $14 an ounce and copper reached record levels as weakness in the U.S. dollar and ongoing concerns over Iran continued to feed traders' needs for a safe-haven investment.

Silver for May delivery was last trading up 62.5 cents, or 5.3%, at $12.40 an ounce on the New York Mercantile Exchange after reaching a high of $12.65. The contract lost 9.2% of its value on Monday as traders locked in some of the recent gains that have pushed it to 23-year highs. Prices also dropped almost 14% on Thursday.

Silver has rallied since the beginning of the year on excitement about the expected launch of an ETF, currently in registration by Barclays Global Investors, a unit of British bank Barclays Plc (UK:BARC: news, chart, profile) (BCS 48.58, +0.07, +0.1% ) . The ETF, which is structured as a trust and has been highly anticipated by metals traders, is slated to trade on the American Stock Exchange under the ticker "SLV."

Last week, speculators, disappointed that the instrument has not yet materialized, began to take some money off the table.

...more...

[UpInArms]

104. June Gold closes @ $634.20 - May Silver @ $12.56 - July Copper @ $3.27525

1:47 PM ET 4/25/06 JUNE GOLD CLOSES AT $634.20/OZ, UP $10.30, OR 1.7%

1:47 PM ET 4/25/06 MAY SILVER ENDS AT $12.56/OZ, UP 78.5C, OR 6.7%

1:38 PM ET 4/25/06 JULY COPPER UP 18.85C, OR 6.1%, TO END AT $3.2725/LB

[54anickel]

158. Copper Hits Record High on Fund Buying

http://biz.yahoo.com/ap/060425/britain_copper_prices.html?.v=2

LONDON (AP) -- Copper prices surged to record levels Tuesday on increased buying by funds and a labor dispute at a Chilean mine.
Copper, like oil, gold and silver, has been driven higher recently as funds pour money into the commodities markets, fueled by geopolitical jitters, inflation fears and pure momentum.

That bullish sentiment for copper was heightened Monday after workers at Falconbridge Ltd.'s Lomas Bayas mine in Chile rejected a final contract offer.

Meanwhile, workers continue to strike at Grupo Mexico SA's La Caridad mine.

Three-month copper on the London Metal Exchange hit an all-time high of $7,320 a metric ton Tuesday, before settling at $7,220 a metric ton, up $432 from Monday.

On the New York Mercantile Exchange, April copper peaked at a record $3.4175 a pound Tuesday, before settling at $3.4080 a pound, up 19.45 cents. The most-active May contract rose 20.95 cents to settle at $3.3205 a pound.

more...

[UpInArms]

8. daily dollar watch

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

Last trade 87.52 Change -0.09 (-0.10%)

Dollar Slides as Pressure Increases on China to Revalue– Will it Matter?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Slides_as_Pressure_Increases_1145914717042.html

US Dollar - The US dollar succumbed to selling pressure today as the G7 harshened its stance on China, calling for exchange rate flexibility specifically from the Asian giant. This is eerily reminiscent of the 2003 G7 meeting in Dubai. If you recall, back in 2003, the G7 finance ministers called for “more flexibility in exchange rates.” At that time, the change to the statement was the first significant move by the committee in 3 years. It resulted in a 150 pip knee-jerk rally in the EUR/USD, but over the next four months, the dollar fell another 11 percent against the Euro (which amounted to 1100 pips), 9 percent against the British pound and 7 percent against the Japanese Yen. The long term impact was far more substantial than the market’s knee jerk reaction, which is the risk that the market faces today. Over the weekend, we had another major shift to the G7 statement. For the very first time ever, China has been mentioned directly by the G7, reflecting their increased concern over the past few months. This also raises the question of whether the US Treasury’s FX report due in two weeks would also brand China as a currency manipulator. The G7 report could have paved the way for the Treasury to also take a harsher stance which given the G7 statement, would probably have less of an impact on the market. More importantly, the G7 statement is basically advocating appreciation in the Asian currencies and as a byproduct, depreciation in the US dollar. This is a key point since it comes at a pretty important juncture. The Federal Reserve is nearing the end of its tightening cycle while reserve diversification has picked up steam. Oil prices, though lower today are still at extremely lofty levels and in the words of President Bush, “it will be a tough summer for US consumers.” Consumer confidence, due for release tomorrow, is expected to be heavily impacted by the recent climb in oil. Most of the US data due for release this week is expected to be weaker except for first quarter GDP. Therefore, the tone has been set by the G7 meeting and if history is a reliable indicator, then we could expect a bit of consolidation and then another fresh wave of selling.

...more...

[UpInArms]

16. Asian Currencies Surge, Helped by G-7

http://www.latimes.com/business/la-fi-yen25apr25,1,1273851.story?coll=la-headlines-business

Is the dollar headed for a new downward spiral?

The greenback tumbled against the Japanese yen and other Asian currencies Monday, driving down the region's stocks, after the Group of 7 nations urged emerging Asian countries to allow their currencies to strengthen.

The dollar slid to a three-month low of 114.36 yen from 116.67 on Friday. The U.S. currency also sank to an eight-year low of 939.50 South Korean won from 948.10 on Friday and to multiyear lows against the Singaporean dollar and Indonesian rupiah.

"Overall, it's bearish for the dollar out there," said Liz Bussanich, a senior vice president at Bank of Montreal in New York.

Traders dumped the U.S. currency after finance ministers and central bankers from the G-7 industrialized nations, meeting last week in Washington, said it's "critical" that Asian currencies — particularly China's yuan — should rise in value to ease the region's reliance on exports for growth.

"This is a much more forthright statement than we've seen previously from the G-7," said Naomi Fink, currency strategist with BNP Paribas in New York.

...more...

[Lydia Leftcoast]

69. Yes, the yen really IS rising now

Not the piddly fraction of a yen rise that was reported last week.

117 to 114 is a big jump. It means that when my expected payments from Japanese clients come in on April 30, I'll get $200 more than I expected, as long as this holds. :-)

On the other hand, my trip over there in June will be more expensive. :-(

[UpInArms]

71. Hiya Lydia Leftcoast!

Glad to have you here at the SMW!

Please come and tell us about the yen stuff anytime :toast:

:hi:

[Lydia Leftcoast]

91. I watch the yen pretty closely, because about 90% of my clients

are in Japan and pay me in yen (x number of yen per word or per page). My income is directly affected, and a weak dollar is actually good for me, at least until I travel to Japan.

I don't know much about the reasons for currency fluctuations, but since most recent fluctuations have been in the 0.5 to 1 yen range, this movement looks like the start of something.

[AnneD]

125. Hi Lydia...

Hubby speaks/writes Japanese and some folks wanted him to translate a big document (here in this country). They didn't want to pay him enough (and he had to pay to go to Oregon on his own dime). Fat chance.

Take that extra money and buy gold-that way you can afford to go to Japan:smoke:

[UpInArms]

27. dollar slumping early

Last trade 87.39 Change -0.22 (-0.25%)

Settle Time 15:06 Open 87.62

Previous Close 87.61 High 87.67

Low 87.33 2006-04-25 08:54:28, 30 min delay

[UpInArms]

132. dollar in the doldrums

Last trade 87.35 Change -0.26 (-0.30%)

Settle Time 15:06 Open 87.62

Previous Close 87.61 High 87.69

Low 87.24 2006-04-25 14:56:10, 30 min delay

[UpInArms]

9. Boeing, US nearing final deal on two probes: report

http://news.yahoo.com/s/nm/20060425/bs_nm/boeing_investigations_dc

NEW YORK (Reuters) - Boeing Co. (NYSE:BA - news) and U.S. prosecutors have reached a preliminary agreement to resolve two criminal investigations, but the aircraft company is resisting federal calls for about $750 million in fines and penalties as part of a settlement, the Wall Street Journal said on Tuesday.

"The company has signaled that it may be willing to pay about $500 million to simultaneously settle related civil claims," the report said, citing people familiar with the details.

The investigations involve allegations Boeing improperly acquired proprietary Lockheed Martin Corp. (NYSE:LMT - news) documents about the rival company's rocket programs and illegally recruited a U.S. Air Force acquisition official while she still had oversight of billions of dollars in other Boeing contracts, the Journal said.

...more...

[UpInArms]

10. First Financial plans 200 layoffs

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060425/BIZ01/604250326/1076

First Financial Corp. on Monday said it will close branches and lay off up to 200 employees companywide, the same day it reported a 63 percent drop in first-quarter profits.

Quarterly earnings declined to just under $4 million from $10.7 million in the same period a year ago. The Hamilton-based bank holding company said its bottom line was hit by several one-time charges including:

A $4.3 million prepayment penalty on long-term debt.

A $498,000 securities impairment charge.

<snip>

First Financial also updated its restructuring plans, saying it would lay off 200 employees to trim up to $8 million in costs. The bank said more than half the cuts would happen by the end of June with the remainder by the end of the year. The company said the cuts would cost it $1.3 million in future one-time charges.

First Financial also said it would sell or close 19 branches, leaving it with 87.

The company plans to sell seven branches in Michigan and southern Indiana, including two in Vevay, Switzerland County. Branch closures, including four in Greater Cincinnati and Northern Kentucky - in Mariemont, Montgomery, Petersburg and West College Corner, Ind. - will occur by the end of September, subject to regulatory approval.

...more...

[UpInArms]

11. Sun CEO McNealy stepping down

http://www.cnn.com/2006/BUSINESS/04/24/sun.ceo.ap/index.html?section=cnn_latest

SAN FRANCISCO, California (AP) -- Scott McNealy, the often acerbic co-founder of Sun Microsystems and one of Microsoft's harshest critics, stepped down as CEO after 22 years Monday as the pioneering maker of computer servers reported its latest quarterly loss.

Jonathan Schwartz, Sun's president, will retain that position and take over as chief executive, while McNealy will remain chairman and a full-time employee of the Santa Clara-based company.

<snip>

"He was an instrumental part of making the Internet happen," said Rob Enderle, principal analyst with the Enderle group. "When your on the Web and doing shopping, say a little prayer for Scott because he's part of what got you there."

On Monday, Sun posted a wider fiscal third-quarter loss, as costs for acquisitions, stock-based compensation and restructuring chipped away at higher revenue.

<snip>

The results met Wall Street expectations. Analysts were expecting the company to post a loss of 6 cents per share on sales of $3.2 billion, according to a survey by Thomson Financial.

...more...

[UpInArms]

12. NYTs: Are Rich Politicians Selfless Politicians?

http://www.nytimes.com/2006/04/23/business/yourmoney/23view.html?ex=1232164800&en=ab3e71a00ae53fdc&ei=5035&partner=MARKETWATCH

(free registration or try www.bugmenot.com)

CONSIDERING the nation's muddled campaign finance system, it's hardly a surprise that voters have taken a shine to a few wealthy entrepreneurs. There is an abiding American respect for people who build and manage big businesses, and rich politicians can also claim to avoid conflicts of interest by financing their own campaigns. But does experience back them up?

The question is worth considering, said Amitai Etzioni, a professor at George Washington University, given the millions of dollars that candidates raise, even for relatively minor Congressional races.

"If you are not affluent yourself, then you have to raise that money, and you spend a lot of time on courting people who have deep pockets and then attending to their special interests," Professor Etzioni said. "Those with deep pockets at least can act virtuously if they wanted to. The others can't, because they have to be paying off special interests."

<snip>

In a paper published in March in The American Economic Review, Ms. Faccio reported that the politicians' companies experienced a 2.3 percent increase in their share prices, on average, around the time of their electoral victories. If a politician entered the executive branch of government, the effect was larger — up to a 12 percent lift for companies associated with new presidents, prime ministers and other top officials.

"The results suggest that the politician is acting in the interest of the company," Ms. Faccio said in an interview by telephone. "And the effects were much larger in countries with high corruption.

...more...

[UpInArms]

13. Details of the FRAUD at CA (formerly Computer Associates)

8:18am 04/25/06 CA est Q4 net breakeven-2c; previous est net 9c-10c - MarketWatch.com

8:17am 04/25/06 CORRECT: CA est adj Q4 net 14c-16c; prev est was 23c-24c - MarketWatch.com

8:16am 04/25/06 CA Q4 First Call ests net 24c, revenue $989M - MarketWatch.com

8:15am 04/25/06 CA est Q4 revs $940M-$950M; previous est $975M-$1B - MarketWatch.com

http://www.nytimes.com/2006/04/25/technology/25fraud.html?ex=1232337600&en=707c23d397bd993c&ei=5035&partner=MARKETWATCH

(free registration or try www.bugmenot.com)

As Computer Associates' stock soared during the 1990's, Mr. Kumar grew rich. In 1998, he received a $330 million bonus, one of the largest paydays ever for an American executive. But in mid-2000, the company reported an earnings shortfall that caused its stock to plunge 43 percent in a day. Its sales and profits have never recovered.

Now, Mr. Kumar has admitted that at least part of the growth that the company reported in the 1990's was a mirage. The indictment focuses on the backdating of sales contracts, which enabled Computer Associates to meet analysts' forecasts in late 1999 and early 2000. The indictment also mentions sham sales reported by the company.

<snip>

Former employees have said that during the late 1990's, Computer Associates engaged in many tricks to inflate its sales and profits, including booking sham sales and backdating contracts. In their pleas, Mr. Kumar and Mr. Richards admitted backdating contracts, and the indictment and other supporting evidence refer to repeated sham sales.

[UpInArms]

19. CA Inc. to fall short of 4Q forecasts

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCD0AEE4D%2DFEE5%2D44D8%2DB03C%2D2F0F64D2B190%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- CA Inc. (CA 25.51, -0.25, -1.0% ) on Tuesday said fourth-quarter preliminary results "were not in line with our expectations," the day after its former chief executive officer Sanjay Kumar pleaded guilty to securities fraud and obstruction of justice. The company sees fourth-quarter revenue of $940 million to $950 million; operating earnings falling to 14-16 cents a share from its earlier forecast of 23-24 cents a share, and GAAP earnings of breakeven to 2 cents a share, compared to its earlier forecast of 9-10 cents a share. "CA is a company undergoing a transformation -- of our products, our people, our processes, our relationships with our customers, our go-to-market strategy and much more," the company said. It expects to report full results on May 30.

[stop the bleeding]

14. Thank you to all who supply the news on the Market here.

You can never get enough news - Kudos!!

[UpInArms]

21. g'morning, stop the bleeding!

Glad to 'see' you here at the SMW!

Drop in anytime :hi:

[Roland99]

22. Hear! Hear!

[ozymandius]

34. Thanks!

We, the regulars, really appreciate the kudos.

Ozy :hi:

[wordpix]

49. thanks from me, too!

[realFedUp]

97. yeah....as a sometimes Market watcher I love your threads! thanks. nt

[UpInArms]

17. Treasurys slightly lower ahead of data reports (??? slightly ???)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6CF2F1C1%2DC24D%2D4FDF%2D9AAB%2D5395A543442A%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices moved slightly lower early Tuesday, returning the yield on the benchmark 10-year note to the 5% level, as investors awaited the latest monthly existing home sales and consumer confidence reports. The benchmark 10-year Treasury note last was down 5/32 at 96-5/32 with a yield ($TNX 5.008, +0.23, +0.5% ) of 5%, up from 4.987% in late trade Monday. The MarketWatch forecast, based on a survey of economists is for 6.68 million new homes sales last month, down from 6.91 million in February. Consumer confidence is expected to dip to 106.3 this month from 107.2 in March. Traders said price action could be restrained ahead of the May 10 Federal Open Market Committee monetary policy meeting, as there are a number of other data reports to be absorbed before then.

[UpInArms]

46. Chance of June Fed hike jumps on confidence data

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T141417Z_01_CHB000170_RTRIDST_0_MARKETS-FEDFUNDS-CONFIDENCE-URGENT.XML

CHICAGO, April 25 (Reuters) - U.S. short-term rate futures fell on Tuesday after reports on consumer confidence and existing home sales were stronger than expected.

Futures price a 25 basis point rate increase at the Federal Reserve's May meeting <FFK6>, and chances that the central bank will hike rates again in June <FFN6> rose as high as 50 percent from 42 percent late on Monday.

The Conference Board said consumer confidence in April rose to a four-year high, confounding expectations for a small decline. March existing home sales, which had been forecast to fall slightly, instead rose by 0.3 percent.

[UpInArms]

70. Treasuries extend losses after homes, confidence

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T151513Z_01_N25384729_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, April 25 (Reuters) - Treasury debt prices fell on Tuesday after stronger-than-expected readings of consumer confidence and existing home sales prompted investors to raise bets that the Federal Reserve may push interest rates higher than currently thought.

Bond prices had already been falling but fell further following the data's midmorning release. Odds that the Fed will raise rates in June as well as in May rose to 50 percent from 42 percent. .

"The (confidence) report will offer further support for the bond bears and help to push up rate hike expectations, as will news that existing home sales were stronger than expected," said James Knightley, economist at ING Economics in New York.

Benchmark 10-year notes <US10YT=RR> were trading 21/32 lower in price for a yield of 5.07 percent, up from 4.99 percent late on Monday. Bond yields move in the opposite direction of prices.

According to the Conference Board, U.S. consumer confidence rose in April to a four-year high of 109.6. That surpassed economists' expectations for a reading of 106.0, and beat out an upwardly revised March reading of 107.5.

...more...

[UpInArms]

93. Treasury Auction has VERY POOR SHOWING

1:05 PM ET 4/25/06 5-YR TIPS AUCTION HAS 26.4% INDIRECT BID

1:04 PM ET 4/25/06 5-YR TIPS AUCTION HAS BID-TO-COVER RATIO OF 1.46

1:03 PM ET 4/25/06 5-YR TIPS AUCTION HAS MEDIAN YIELD 2.335%

1:02 PM ET 4/25/06 5-YR TIPS AUCTION HAS HIGH YIELD 2.379%

[UpInArms]

105. Treasuries extend losses on poor 5-yr TIPS auction

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T171548Z_01_N25132052_RTRIDST_0_MARKETS-BONDS-URGENT-UPDATE-3.XML

NEW YORK, April 25 (Reuters) - Treasury debt prices extended losses on Tuesday after a poor reception for an auction of $11 billion of 5-year Treasury inflation protected securities.

The bid to cover ratio on the 5-year TIPS was 1.46, below an average bid to cover ratio of 1.77 in the two 5-year TIPS auctions of 2005, while the indirect bidder interest in Tuesday's auction was about 26 percent from an average indirect bidder interest of 39 percent in the two 5-year TIPS auctions of 2005.

Benchmark 10-year notes <US10YT=RR> were trading 23/32 lower in price for a yield of 5.08 percent versus 4.99 percent late on Monday. Bond yields and prices move inversely.

...a bit more...

[UpInArms]

18. German confidence hits new 15-year high

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BE9AF04B2-0E3E-4141-8822-685B32A8E1A9%7D&symbol=

LONDON (MarketWatch) -- A key poll of German business confidence unexpectedly hit a 15-year high on Tuesday, as managers in Europe's largest economy continue to see improving growth.

The Ifo indicator of Germany's business climate rose to 105.9 in April from 105.4 in March, with the current conditions subcomponent rising even as the expectations index came back a touch.

The Ifo Institute said the measure is an indication of "robust economic performance."

The Ifo, a poll of managers throughout Germany, is considered a key measure because the data tends to correlate closely with German economic performance.

Economists were expecting a slight decline from the poll, and many have said recently
that German confidence is running ahead of the situation on the ground.

...more...

[Ghost Dog]

32. (European) Shares gain on results, Ifo boosts euro

LONDON, April 25 (Reuters) - European shares rose on Tuesday, recouping some of Monday's losses as heavyweight companies reported better-than-expected results and oil fell, while the dollar held near 3-month lows against the yen.

News that the German Ifo April business sentiment index unexpectedly rose was taken as a positive background factor for shares, but knocked euro zone government debt futures. The index rose to a fresh 15-year high of 105.9 from 105.4 in March.

"Combined with the stronger than expected rise in German inflation in April, the numbers will be a boon to the euro on rising interest rate expectations, a boost for stocks on stronger growth expectations but anathema for euro zone bond and interest rate markets," said David Brown, economist at Bear Stearns International.

Speculation the Ifo news increases pressure for a European Central Bank interest rate hike sent the euro <EUR=> to a 7-month high of $1.2415, while 10 year euro zone government bond yields <EU10YT=RR> rose 5 basis points to 3.99 percent.

/more...

Euro currently at $1.2431.

[Ghost Dog]

99. ...Or did they, really?

CAC40 5235.34 +0.26 %
DAX 6078.8 +0 %
FTSE100 6,086.60 -0.2%
SMI 8041.02 -0.43 %

LONDON, April 25 (Reuters) - European stocks ended Tuesday's session on a flat note as a rally by carmakers and airlines was offset by a slide in energy producers as oil dipped below $72 a barrel.

Airlines including Air France-KLM (AIRF.PA: Quote, Profile, Research) and British Airways (BAY.L: Quote, Profile, Research) jumped as crude slid, while British retailer Tesco (TSCO.L: Quote, Profile, Research) dropped after results.

But fund managers said the market's dip was likely to be short-lived, with overall healthy earnings growth set to drive indexes to fresh highs. "The market is not expensive in terms of valuations. You see a lot of improvement in the earnings quality," said Thomas Muehlberger, fund manager at Bayern Invest in Munich.

The pan-European FTSEurofirst index <.FTEU3> of 300 leading shares closed down 0.1 percent at at 1,387.35 points, retreating from its new multi-year highs, with a drop in U.S. indexes later in the day proving a drag.

<snip>

Among oil companies, Britain's BP (BP.L: Quote, Profile, Research) dropped 1.4 percent despite posting a higher first-quarter underlying profit, while Total (TOTF.PA: Quote, Profile, Research) dropped 1.1 percent and Royal Dutch Shell (RDSa.AS: Quote, Profile, Research) slipped 0.5 percent.

"Until now the oil rise does not seem to have had a major impact on markets. High oil has so far not seemed to erode global economic growth with trends elsewhere so powerful that the rise has been rather well absorbed," said Yves Maillot, head of equity investment at Robeco Gestions.

Car and truck makers gained, led by Renault (RENA.PA: Quote, Profile, Research) which rose 7.1 percent after pleasing the market with a surprise 5.8 percent rise in first-quarter revenue that dealers said shored up confidence in the carmaker's management.

"Sentiment's not bad, people are expecting consumers to have a little bit more loose money in their pockets, but there's big concerns about commodities, in terms of oil costs to the consumer, and costs of raw materials for carmakers," said a trader.

A 19 percent jump in Volvo's (VOLVb.ST: Quote, Profile, Research) quarterly pretax earnings pushed shares in the world number two truck maker 4.4 percent higher, while Volkswagen (VOWG.DE: Quote, Profile, Research) gained 1.6 percent and Porsche (PSHG_p.DE: Quote, Profile, Research) rose 2.2 percent.

Airlines rallied as oil prices slipped, with Air France-KLM adding 3.3 percent, followed by a 2.6 percent gain in British Airways and a 2.4 percent rise in discount carrier Ryanair (RYA.I: Quote, Profile, Research) as investors bet a drop in energy prices would help limit damage to their bottom lines.

/more...

[UpInArms]

23. Chesapeake Corp. (packaging products) 1Q loss $4.7M vs earns $2.2M

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9A4CC80D%2DF2B1%2D4810%2DA745%2DCD60ECBE9E7F%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Chesapeake Corp. (CSK 13.36, -0.07, -0.5% ) Tuesday reported a first-quarter loss of $4.7 million, or 24 cents a share, down from a year-ago profit of $2.2 million, or 11 cents a share. Excluding items, most notably restructuring charges and debt extinguishment, the company posted earnings from continuing operations of $200,000, or a penny per share, for the first quarter. Sales fell in the latest three months to $259 million from $272.4 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a loss of 3 cents a share in the March period on revenue of $270.9 million. The Richmond, Va., supplier of paperboard and plastic packaging products said the performance was in line with its expectations. The stock closed Monday at $13.36, down 7 cents.

[UpInArms]

25. Citigroup to launch forex trading platform -- report

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B3A500AAB-CB57-40EF-BBE4-672EEB72E12D%7D&symbol=

LONDON (MarketWatch) -- Lava Trading, a technology provider own by Citigroup Inc. (C), will Tuesday announce the luanch of a foreign exchange trading platform, the Financial Times reports.

The paper says that among its features will be a system that allows large banks to trade large amounts quietly among themselves.

The platform would be a rival to those operated by Reuters Group PLC's (RTRSY) and Icap PLC (IAP.LN).

...a bit more...

[54anickel]

116. Uh-oh, GULP! Not liking the sound of that one. Makes me think of

check kiting on a much grander scale.

[AnneD]

129. Thanks for putting a finger on it...

I have been mulling that news in the back on my mind all day. What would be the advantage? I kept thinking of profiting on a spot Forex market. And of course, money laundering.

[Roland99]

138. Well, who was/is in the admin from Citigroup?

Wolfowitz and his buddy, the current Pakistani PM, for starters.

Wolfie's now at the World Bank.


Something tells me this group would put the Medici family to shame, along with the Bilderbergers, Illuminati, etc.

[54anickel]

143. Providing liquidity to maintain the Ponzi scheme in the midst of a

liquidity crunch is what I see coming of this. Happy, happy, joy, joy...things couldn't be any better - we're all gonna be rich!
First they bury M3, now this. I'm thinking a liquidity crisis is right around the corner and they are looking for any and all ways to avert it.

[AnneD]

165. Of all the things I have read today...

this is the story that I can't get out of my thoughts. I get a big gut rx from it. I think it bears following closely. Last time I thought this was with Valerie Plame leak.

[UpInArms]

26. pre-opening blather

09:00 ET Market is Closed S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +4.8. Still shaping up to be a higher open for stocks as investors continue to weigh signs of earnings optimism against a rebound in oil prices and an uptick in bond yields. Separately, the market is also awaiting this week's first batch of economic data. April Consumer Confidence and March Existing Home Sales will hit the wires at 10:00 ET, which could set a more definitive tone for Treasuries.

08:31 ET Market is Closed S&P futures vs fair value: +2.1. Nasdaq futures vs fair value: +6.0. The market is sporting a bullish bias, underpinned by a batch of better than expected earnings news across a wide swath of industry groups. Upside EPS surprises have been seen from the likes of AT&T (T), DuPont (DD), Chubb (CB), BJ Services (BJS), Whirlpool (WHR) and YUM! Brands (YUM) to name a few.

08:10 ET Market is Closed S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +6.5.

06:27 ET Market is Closed FTSE...6109.70...+11.00...+0.2%. DAX...6095.69...+16.60...+0.3%.

06:27 ET Market is Closed Nikkei...16970.29...+55.89...+0.3%. Hang Seng...16577.77...-127.90...-0.8%.

[UpInArms]

29. 9:46 EST markets doing the happy dance early

Dow 11,348.33 +12.01 (+0.11%)
Nasdaq 2,334.46 +1.08 (+0.05%)
S&P 500 1,310.47 +2.36 (+0.18%)
10-Yr Bond 5.004 +0.19 (+0.38%)

NYSE Volume 179,287,000
Nasdaq Volume 240,747,000

09:40 am : Market regains some upside momentum as more encouraging earnings data help improve sentiment on the heels of modest consolidation efforts. Dow components AT&T (T 25.83 +0.30) and DuPont (DD 44.68 +0.14) have been the headliners posting better than expected results which, for the time being anyway, are helping investors deal with the specter of record oil and rising bond yields. DJ30 +9.53 NASDAQ +0.63 SP500 +1.12

[Ghost Dog]

33. Japan firms eyeing bubble-level job offers for 2007 graduates

(Kyodo) _ Businesses in Japan are expected to offer a total of 825,000 jobs to students graduating from universities and graduate schools in 2007, comparable with 840,000 in 1991 when the Japanese economy was at the pinnacle of the asset-inflated economic bubble, the Works Institute said Tuesday.

The projected figure for 2007 spells a sharp increase of 18.1 percent from the previous year and is the second largest since the compilation of data was launched in the middle of the 1980s by Recruit Co.'s division dedicated to the research of employment and labor issues.

The bright employment outlook for young people reflects Japan's economic recovery and the massive retirement of baby-boom workers starting in 2007, the institute said.

Based on the projected figure, the ratio of job offers to job seekers comes to 1.89 for 2007, up from the previous year's 1.6.

By sector, financial institutions plan to offer 26.7 percent more jobs for 2007, while 20.8 percent more students want to work there.

/more...

[54anickel]

72. Good morning GD.

:hi: And welcome to DU and the SMW. I hope you're able to hang out with us for a while. I enjoy your posts on the global markets.

[Ghost Dog]

96. Hi

and thanks, 54anickel.

These are busy, travelling days for me just now, but I'll drop in when I can.

Just think: those Japan jobs referred to above will most likely be more-or-less real graduate-level jobs to boot. Hopefully, there'll be many more on offer at all levels as the 'twin engines' (domestic and export markets) of their economy power up.

Although I suspect some of Japan's main export markets may not be too healthy for a while...

[54anickel]

101. Thanks and safe travelling to you. Sort of sucks for Japan right now -

I mean they are finally powering back up at the time when their major export market (US) is headed for the dumpster. Not to worry though, I remember reading something last month that China was importing a LOT from Japan. Let's hope Bushco is too busy and bogged down to go stirring up old tensions over there.

[Ghost Dog]

117. Indeed. I see Japan very busy

in 2-way trade all over EastAsia and EurAsia.

[ozymandius]

39. 10am thud

10:03
Dow 11,328.08 -8.24 (-0.07%)
Nasdaq 2,331.51 -1.87 (-0.08%)
S&P 500 1,309.79 +1.68 (+0.13%)
10-Yr Bond 50.02 +0.17 (+0.34%)
NYSE Volume 300,737,000
Nasdaq Volume 393,818,000

[stop the bleeding]

41. When is the Consumer Confidence Report due?? n/t

[stop the bleeding]

43. never mind - I found UIA's post # 38 - things are good n/t

[Roland99]

92. So, they're just boldly making sh*t up now, eh?

[UpInArms]

50. 10:26 EST bleeding visibly

Dow 11,286.29 -50.03 (-0.44%)
Nasdaq 2,324.39 -8.99 (-0.39%)
S&P 500 1,304.91 -3.20 (-0.24%)
10-Yr Bond 5.039 +0.54 (+1.08%)

NYSE Volume 481,835,000
Nasdaq Volume 577,300,000

10:00 am : Equities are still on the offensive but gains are modest at best as leadership from the most influential sectors remains absent. To wit, Energy is pacing the way higher, benefiting from a 1.0% rebound in oil prices as well as solid reports from Valero Energy (VLO 69.85 +0.75) and BJ Services (BJS 40.48 +1.13) -- one of our suggested holdings. However, Financial, Technology and Health Care, which combine to account for nearly 50% of the total weighting on the S&P 500, are relatively flat. Industrials has been the weakest link in today's recovery attempts as investors consolidate gains in Burlington Northern (BNI 83.00 -3.84), which hit a historic high last week heading into its strong Q1 report today, and Caterpillar (CAT 76.77 -0.61), which handily beat forecasts yesterday.DJ30 +14.99 NASDAQ +1.87 SP500 +2.25 NASDAQ Dec/Adv/Vol 1384/995/336 mln NYSE Dec/Adv/Vol 974/1099/182 mln

[stop the bleeding]

52. 1st hour is always a riot n/t

[UpInArms]

51. NY Spitzer to announce mortgage fraud ring case

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T142205Z_01_N25406767_RTRIDST_0_CRIME-SPITZER-MORTGAGES.XML

NEW YORK, April 25 (Reuters) - New York Attorney General ELiot Spitzer and state Banking Superintendent Diana Taylor on Tuesday said they will announce "the dismantling of a massive mortgage fraud ring" later on Tuesday.

A spokeswoman for Spitzer declined comment because it involves criminal indictments of individuals. A press conference is scheduled for 1 p.m. (1700 GMT) in lower Manhattan.

[UpInArms]

150. NY's Spitzer indicts 8 on mortgage fraud

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-04-25T192739Z_01_N25142786_RTRIDST_0_CRIME-SPITZER-MORTGAGES-UPDATE-1.XML

excerpt:

In an 83-count criminal indictment, Spitzer alleged that two New York men, brothers Louis and Michael Sandella, led a group that submitted "hundreds" of falsified residential mortgage applications from 2001 until recently.

With the help of real estate attorneys, appraisers and individuals who posed as buyers, the Sandellas would seek a loan far more than needed to purchase a property. They'd purchase the property under the name of a "straw buyer" and then pocket the difference -- sometimes $100,000 or more per transaction.

Dozens of straw buyers were paid to participate -- usually a few thousand dollars -- by lending their names to the real estate transaction with the promise the Sandellas would keep up payments on the loan. But ultimately, Spitzer charged, the Sandella group would stop paying off the loans, leaving the straw buyers accountable for the default and the banks stuck with bad loans.

<snip>

In addition to the Sandellas, prosecutors secured indictments of Danielle Moss, Kim Moss Fontanez, Geraldine Moss, Gary Shaw and Ida D'Angelo. The seven were in custody early Tuesday afternoon and were awaiting arraignment, Spitzer said at a news conference.

One defendant, Andreas Perdikos of New Jersey, remained at large, Spitzer said. In addition, there were eight lesser individuals involved in the scheme, largely the straw buyers.

...more...

[UpInArms]

55. 11:01 EST See no evil, Hear no evil, Speak no evil

Dow 11,329.12 -7.20 (-0.06%)
Nasdaq 2,330.89 -2.49 (-0.11%)
S&P 500 1,304.09 -4.02 (-0.31%)
10-Yr Bond 5.077 +0.92 (+1.85%)

NYSE Volume 718,766,000
Nasdaq Volume 817,904,000

10:30 am : Indices spike lower and now trade at their lowest levels of the morning, trading in sympathy with a sell-off in the Treasury market following economic data. While an unexpected rise in April Consumer Confidence to 109.6 -- the highest level since May 2002, and an unforeseen 0.3% rise in March existing home sales to 6.92 mln typically bode well for the equity markets, stronger than expected data lately have fueled concerns that the Fed will remain inclined to stay on its tightening path. As a result, the yield on the 10-yr note (-24/32) has climbed from 4.99% to 5.07% over the last 30 minutes, reversing overall sentiment since an increase in borrowing costs could lead to a decline in consumer spending. DJ30 -46.10 NASDAQ -10.06 SP500 -5.57 NASDAQ Dec/Adv/Vol 1488/1150/588 mln NYSE Dec/Adv/Vol 1625/1222/340 mln

[UpInArms]

67. HCA profit falls on uninsured, bad debt

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T153511Z_01_N25376832_RTRIDST_0_HEALTH-HCA-EARNS-UPDATE-3.XML

CHICAGO, April 25 (Reuters) - HCA Inc. (HCA.N: Quote, Profile, Research), the biggest U.S. hospital chain, on Tuesday said first-quarter earnings fell 8.5 percent as it coped with fewer-than-expected flu patients and the toll of treating people without the means to pay.

Net income declined to $379 million, or 92 cents a share, from $414 million, or 95 cents a share, a year earlier.

Results include a large gain on the sale of investments as well as other special items.

The Nashville, Tennessee-based company, whose shares fell 1.6 percent, last week had estimated net earnings below analyst views as it copes with slowing admissions in major markets and more uninsured customers.

...more...

More uninsured?? That can't be! :sarcasm:

[ozymandius]

74. Just before lunch, it sucks to be a blue chip.

11:57
Dow 11,285.05 -51.27 (-0.45%)
Nasdaq 2,324.16 -9.22 (-0.40%)
S&P 500 1,301.12 -6.99 (-0.53%)
10-Yr Bond 50.60 +0.75 (+1.50%)
NYSE Volume 1,023,528,000
Nasdaq Volume 1,098,188,000

11:30 am : Recent recovery efforts are short-lived as widespread industry weakness continues to dictate early market action. Seven of ten economic sectors continue to trade lower, led by a 1.2% reversal in Energy as oil prices continue to trend lower (-1.7%) and trade near $72 a barrel. Even though losses have been pared somewhat in the Treasury market, the rate-sensitive Utilities sector is also off more than 1.0%; a Q1 earnings disappointment from Southern Co. (SO 31.94 -0.40) is also weighing on the sector.DJ30 -22.17 DJUA -1.0% NASDAQ -4.45 SP500 -3.49 XOI -1.5% NASDAQ Dec/Adv/Vol 1618/1197/958 mln NYSE Dec/Adv/Vol 1818/1195/618 mln

[wordpix]

78. oil trading lower; * must have talked to his puppetmasters in SA

[Roland99]

90. Maybe because he's stopped diverting oil to the Strategic Reserves

even though US oil supplies are near an *8-year high*!!

[UpInArms]

80. 12:10 EST red numbers and blather

Dow 11,278.21 -58.11 (-0.51%)
Nasdaq 2,323.39 -9.99 (-0.43%)
S&P 500 1,300.69 -7.42 (-0.57%)
10-Yr Bond 5.067 +0.82 (+1.64%)

NYSE Volume 1,090,508,000
Nasdaq Volume 1,174,740,000

12:00 pm : Market slips back to session lows midday as more encouraging earnings reports and falling oil prices are overshadowed by the growing realization that the Fed may have further to go with its rate hikes to stave off inflationary pressures.

While an unexpected rise in April Consumer Confidence to 109.6 -- the highest level in nearly four years, and an unforeseen 0.3% rise in March existing home sales to 6.92 mln typically bode well for the equity markets, stronger than expected data of late continue to stoke inflation fears, spurring concerns that the Fed may go too far with its tightening efforts. The yield on the 10-yr note (-21/32) currently stands at 5.06%, underpinning a sense of nervousness, especially in the rate-sensitive Financial and Utilities sectors, that higher borrowing costs could lead to a decline in consumer spending and that higher Treasury yields will diminish the desire to own dividend-paying stocks.

Among the six other economic sectors trading lower, Energy has turned in the day's worst performance as oil prices remain under pressure and trade near $72 a barrel after President Bush said he would defer filling the strategic reserve this summer, waive regional clean-air specifications and reiterated his outlook on the future of alternative energy sources (e.g. ethanol).

On a positive note, IBM (IBM 82.76 +0.65) increased its dividend 50% and authorized an additional $4 bln buyback and AT&T (T 25.89 +0.36) reported a 63% increase in Q1 profits. However, further consolidation in notable semiconductor and internet names has prevented Technology from regaining some of its leadership. Burlington Northern (BNI 82.28 -4.56) and Northrop Grumman (NOC 69.41 -1.82) also posted better than expected earnings; but since both stocks have risen sharply ahead of their reports, sell-the-news consolidation continues to weigh on the Industrials sector. BTK -1.0% DJ30 -56.91 DJTA -0.8% DJUA -1.4% DOT -1.1% NASDAQ -9.88 NQ100 -0.6% R2K -0.7% SOX -0.2% SP400 -0.7% SP500 -7.17 XOI -1.4% NASDAQ Dec/Adv/Vol 1751/1115/1.11 bln NYSE Dec/Adv/Vol 2011/1071/735 mln

[AnneD]

133. It may suck to be a blue chip...

but damn it feels good to be a gangsta....I don't think I can post the lyrics - but I can hum it though:spray:

[UpInArms]

76. Commentary: Why a low 'core inflation' rate may not be good news

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB3A64C33-45EE-40A7-9083-674C79F9A026%7D&symbol=

excerpt:

Let me preface my answer by saying that I think the whole idea of excluding food and energy from the price numbers is ludicrous. After all, who doesn't use food and energy?

What's more, since both of these items are purchased frequently, their price hikes add to the inflation psychology that is rapidly taking hold among consumers and business people. This is especially true in the case of energy, since many vendors are adding fuel surcharges to the cost of the goods and services they provide.

But if you do accept the notion of core inflation, then you can't rule out the possibility that tame prices outside of food and energy might be a sign of weakness developing in the economy.

Since both food and energy are essential for our everyday living, the more their prices go up, the less people have to spend on everything else. This is forcing companies that sell non-essential items to hold the line on their prices -- if not actually reduce them -- in order to maintain their business.

Rather than good news, today's moderate core inflation rates may actually be bad news in disguise.

...more at link...

[54anickel]

82. Nope sorry, give me back M3 so I can see how much the printing press

is running first. Then we can talk about whether this is tame or the verge of hyper inflation. My buck is loosing its purchasing power dude - I wanna know why.

[UpInArms]

87. looks like this guy agrees with you 54anickel

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2246138&mesg_id=2246880

[54anickel]

95. Great article UIA. I love the closing paragraphs as well....

One thing is absolutely certain; Bush will stick by his constituents to the bitter end. It is physiologically impossible for him to act in the interests of the American people. He won't be dissuaded by the falling dollar, the deflating housing market, or the rising energy prices. He'll make his budget-busting tax cuts a permanent feature of government and plunge the entire country into a sea of red ink.

Betting that George Bush will do the wrong thing for the nation is not a matter of conjecture; it is a mathematical certainty. He is deliberately destroying the middle class, the prospects for upward mobility, and the currency. The economic underpinnings of American democracy have been demolished in just 6 short years. Smart people will prepare themselves for the typhoon ahead.

[54anickel]

77. Be Careful What You Wish For

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=53775

snip>

For the optimists, that suggests the market is still in a bullish, climb-the-wall-of-worry mode. Which means, in their eyes at least, that share prices will invariably move higher, signaling that things remain on a positive track, despite current developments.

Many seasoned observers, meanwhile, are scratching their heads, wondering just what they are missing. Especially in light of the fact that technical and seasonal factors remain unsupportive at best, the U.S. real estate bubble seems to be bursting, and the three-year old rally is looking very tired.

Perhaps the bulls are right, and the pessimists need to wake up to a new reality. One where they can move past their fears and join with those in the majority who are betting on an inevitable further rise in share prices that will be a precursor of still more good times to come.

Then again, maybe the rose-colored-glasses set are wrong. Maybe what we are seeing now, in fact, are the early signs of something altogether different from what we have experienced before.

The kind of thing that sclerotic, poorly-led, overleveraged, and often-corrupt “lesser-developed” nations have gone through—over and over again.

In other words, an economic and financial crisis, where the home currency plunges, interest rates surge into the double-digits, and the cost of energy, basic commodities, and a wide range of goods and services goes through the roof.

more...

[54anickel]

81. Time for a New Global Architecture (Roach)

http://www.morganstanley.com/GEFdata/digests/20060424-mon.html#anchor0

The world has avoided a major financial crisis for more than seven years. This is due more to luck than design. With oil prices surging, central banks leaning against the upside of the liquidity cycle, and global imbalances mounting, that luck may now be running out. Globalization is, by definition, a dynamic process. That’s especially the case in today’s era of IT-enabled globalization that is redefining the very concept of economic and financial market integration. Globalization is in need of a new architecture, but the powers that be are taking only baby steps in that direction. With the odds of a disruptive global rebalancing high and rising, the world can ill afford to gamble with a piecemeal approach to architectural reform.

Governance of the global economy, if you want to call it that, currently rests in the hands of the Bretton Woods institutions -- the IMF and the World Bank. Established in the immediate aftermath of World War II, these massive bureaucracies were designed for a different world in a now ancient time. The 11-year-old World Trade Organization is the newest kid on the block, but with protectionist risks rising and the Doha Round of trade liberalization going nowhere, this is one of the shakiest elements in the global architecture. There’s also the Paris-based OECD, established in 1961, that tabulates statistics and issues reports that focus mainly on its 30 member countries in the developed world. Finally, there are the infamous and rapidly proliferating Gs -- the G-7, G-8, G-10, and G-20 -- groups of large and important nations who come together periodically with great fanfare, yet produce increasingly vacuous, market-following communiqués on the major issues of our times. The latest such effort, just issued over the weekend, is a classic case in point. Not only did the G-7 make the audacious statement that “…exchange rates should reflect economic fundamentals” but they even went so far as to issue a separate annex on global imbalances that proclaimed these disequilibria were “…the product of a wide array of macroeconomic and microeconomic forces throughout the world economy.” Egads! Lest I get accused of being too hard on this council of the world’s wise men, I am gratified that at least rebalancing is finally getting the attention it deserves -- including the IMF’s concomitant endorsement at its just-completed spring meetings of a multilateral consultation process on cross-border imbalances. This are steps -- albeit baby steps -- in the right direction.

Over the years, there have been frequent calls for the reform of the international financial architecture. These efforts usually come in the aftermath of financial crises, typically cited as failures of an antiquated Bretton Woods arrangement. In that vein, the recent reform movement, timed to coincide with the just-completed annual meetings of the IMF and World Bank, is something of an anomaly -- it is off-cycle insofar as not being part of a typical crisis-following effort. Mervyn King, Governor of the Bank of England, led the recent charge, arguing in a speech earlier this year that the IMF was in danger of slipping into obscurity (see his 20 February 2006 speech, “Reform of the International Monetary Fund” available at www.bankofengland.co.uk). IMF Managing Director Rodrigo de Rato has pushed one aspect of this debate forward, proposing a revamping of the voting rights of IMF membership to reflect more equitable participation of the developing world (see his 5 April 2006 paper, “The Managing Director’s Report on Implementing the Fund’s Medium Term Strategy” available at www.imf.org). Several aspects of this report, including the voting rights revamping proposal, have now received tentative endorsement of the US Treasury as well as the full IMF membership at the recent annual meeting. The wheels of reform turn slowly when it comes to the institutions charged with safeguarding global prosperity.

snip>

Also missing from the debate over architectural reform is a key point that Harvard President Lawrence Summers has raised recently -- the management of excess foreign exchange reserves by developing countries (see his 24 March 2006 speech, “Reflections on Global Account Imbalances and Emerging Markets Reserve Accumulation,” available at www.president.harvard.edu). By Summers’ reckoning, excess reserves in the developing world -- holdings above those that are needed for “financial protection” in the event of another crisis -- have soared from around $500 billion in 1999 to more than $2 trillion today. He makes the provocative point that since this huge overhang of excess reserves is parked largely in low-yielding sovereign debt -- especially US dollars -- the developing world is, in effect, foregoing much higher rates of returns that could be used to boost living standards. Recycling of excess reserves into dollar-based assets may well be a conscious policy choice by export-led developing countries that are fearful of currency appreciation. China is, of course, a leading example of this phenomenon. But Summers asks the questions that should be near the top of the global agenda: Are current reserve management practices making the world a safer place or a more dangerous one? Is the developing world impeding its growth and reforms by clinging to mis-aligned currency values?

more...

I gotta ask, "what is Roach smokin'?" when he makes this claim in the final paragraph:


One thing is clear: The next crisis never looks like the last one. Yet we live in a very autoregressive world. Not only do ever-myopic financial markets play the momentum game more than ever, but policy makers always fight the last battle -- as evidenced by the ascendancy of inflation targeting at just the moment when inflation is all but dead....

[54anickel]

84. Gas, debt costs pose a danger

http://www.dallasnews.com/sharedcontent/dws/bus/columnists/all/stories/DN-dimartino_24bus.ART.State.Edition1.a26201.html

snip>

Oil and bonds

Perversely, the stock market has been celebrating the double whammy of oil and bonds – that's bonds as in the bond market, where prices have been falling, but it could also represent bonds as in the shackles of debt.

Households might be able to shoulder one or the other, but the Federal Reserve darn sure knows they can't bear the burden of both.

"Oil and Bonds" happens to be the title of Morgan Stanley chief economist Stephen Roach's latest missive. The focus of the report is not just what happens when the impact of the two is played out on a global stage.

I recently caught up with Mr. Roach, who's been sounding the warning longer than anyone else on Wall Street on the dangers of a world economy that depends on the U.S. consumer for its lifeblood.


'The weak link'

Mr. Roach is not blind to the fact that, as International Monetary Fund chief economist Raghuram Rajan said a few days ago, the world has "never had it so good." The global economy is growing at a dizzying rate of 4.9 percent.

In the same breath, Mr. Rajan warned that this same growth, propelled by exploding global trade, is threatened by the huge imbalances it's creating. The gigantic U.S. trade deficit is the No. 1 culprit.

more...

[KoKo]

103. Agree....smoking something.....

I find his recent articles harder and harder to understand.

I still like to read him...but sometimes statements like "inflation is all but dead," are kind of hard to deal with. :eyes:

[54anickel]

124. Hi KoKo. I hear you, I still love to read Roach, but it's almost like

he's trying to rationalize with himself - it's like a part of him just can't face the prospect of hyper-inflation, a depression, a melt-down or whatever. So he rationalizes using govt' lies - errr - I mean statistics and that "economist edumacation" that taught him how those stats are supposed to fit together.

I a way, I feel sorry for a lot of these "surprised economists"...what they've poured themselves into and believed in their entire careers has turned out to be half-truths and fantasy. Gotta feel like when you came to realization there was no Santa Claus.

[UpInArms]

128. Maybe Roach is comparing notes with Moskow?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T181745Z_01_N25160519_RTRIDST_0_ECONOMY-FED-MOSKOW.XML

CHICAGO, April 25 (Reuters) - Federal Reserve policy has attained one of the benefits often attributed to formal inflation guidelines: well-anchored inflationary expectations, Chicago Fed President Michael Moskow said in an essay in the bank's 2005 annual report.

"At the present time, inflationary expectations are well anchored," Moskow said in the report's main article, posted on the Chicago Fed's Web site.

The Fed's 7th district president has been skeptical about the need for formal inflation targets and reiterated that position in the essay, much of which was based on a speech made in September to the National Association for Business Economics.

The Fed knows that even without rigid rules its approach to policy must be aimed at keeping inflation expectations anchored at a low level, Moskow said.

"Central bankers also know that anchoring inflationary expectations sometimes require preemptive policy tightening before actual inflation numbers start to rise -- moves that might prove unpopular with the public but are necessary to keep inflation in check," he added.

...more...

:shrug:

[54anickel]

134. Distinguishing between inflationary expectations and actual inflation?

As long as the sheep don't expect inflation and they buy into the CPLie, actual, real inflation doesn't matter? :eyes:
Is all this part of Josh Bolten's step 2 of the 5 step plan?

[54anickel]

83. Pessimism About U.S. as Trade Talks Miss Deadline

http://www.nytimes.com/2006/04/25/business/worldbusiness/25trade.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1145982663-EQU/MLSe3jmODfzaTb1a6A

"We have a missed deadline, but we have no deadlock," Mr. Lamy said. He did not go into details on why the deadline was missed, but many trade experts agreed that the major negotiating countries had so far declined to put all their cards on the table. Still, some experts said, global trade deals have tended to be clinched just as American presidential negotiating authority expires, in this case in 2007.

"I don't think it's good news for the round," Mr. Lamy said, "but I don't think either that we should cry over the missed deadline." He refused to set another target date, but said, "July is too late."

Peter Mandelson, the European Union's chief trade negotiator, has turned up the heat on the United States in recent days, suggesting that Washington was the biggest obstacle to a deal.

Two recent events set off alarms in Europe about the United States' commitment to international trade talks. One occurred when Representative Bill Thomas, Republican of California and chairman of the House Ways and Means Committee, urged the Bush administration three weeks ago to focus its energy on agreements with individual nations, instead of the global trade round.

snip>

A spokeswoman for the office of the United States trade representative, Christin Baker, said the United States was "actively engaged on both the multilateral and the bilateral fronts" when it comes to trade. "Our commitment to the global trade round," she added, "is unwavering." :eyes:

more...

[UpInArms]

86. 'Preparing for the economic typhoon'

http://www.smirkingchimp.com/print.php?sid=25828

excerpt:

That's right; the Fed is conspiring to reduce its debt payments by driving a wooden stake into the heart of the greenback. In three to six months the dollar will probably be valued at 1.40 to 1.50 per euro. That is, if the bottom doesn't fall out completely. After all, allies and enemies alike are pretty sick of the good old USA, so it wouldn't be out of the question for someone (perhaps, China) to start a sell-off that would end in disaster.

The dollar is now recognized as the empire's Achilles heel and the primary target for any asymmetrical warfare directed at America. If that means regime change at home, count me in. I'll worry about the wheelbarrow-loads of greenbacks for Wonder Bread some other time.

The Group of Seven industrialized nations (G-7) took a few swipes at Washington's profligate spending this weekend; warning that they wanted "more flexibility" in the Asian currencies. This is a clear sign that the path is being paved for a freefalling dollar while the other currencies gain ground.

How do you like the idea that half of your savings will be erased through executive fiat?

Since Bush took office the dollar has plummeted 30% against the euro. The only thing that has kept it from joining the peso is the skyrocketing oil prices which have allowed the Fed to keep the printing presses going at full tilt. That's because oil is denominated exclusively in dollars, so while the price per barrel continued upward, the Fed was able to circulate another $2.5 trillion. That's what's kept the dollar afloat even though the twin-deficits have eroded its real value. Maintaining the monopoly on the sale of oil (which forces other central banks to hold billions of greenbacks in reserve) is critical to US prosperity. A switch to euros would weaken demand for the dollar and send the American economy into a tailspin.

...more...

[54anickel]

88. Wanted: A whole lot more good buddies

When I was a teen, my best friend and I wanted to grow up to be truck drivers. She made her dream - I didn't, unless you count the many years I drove from WI to AZ on vacation in the van with former hubby and the dogs. Closest I ever came and I always "hung out" with the big rig drivers on the way.

http://www.usatoday.com/money/economy/employment/2006-04-24-trucking-usat_x.htm

Facing a mounting shortage of drivers, trucking companies are ready to play hardball: They're going after the softer, emotional side of potential drivers.

For years, trucking companies individually have tried to recruit potential drivers on their own, mainly on the merits that trucking offers a steady job with a good wage. But starting this summer, members of the American Trucking Associations (ATA) will roll out their first-ever unified advertising campaign with a whole new focus.

With slogans like "My office has a better view than yours" and "Ever seen purple mountain majesty?" and featuring pictures of trucks making their way along scenic, mountainous roads at sunset, the ads are meant to appeal to potential drivers based on their love of the road and the outdoors and the ability to see the country in a boss-free environment.

The move came after drivers and potential drivers in focus groups said pay was not the main attraction for joining the trucking profession. Instead, what made trucking attractive was the fact it meant getting out of a 9-to-5, office cubicle or factory floor routine with co-workers worthy of a Dilbert cartoon strip.

more...

[AnneD]

152. Let me inject some reality into the add campaign....

My step-dad drove an 18 wheeler and retire years ago and my brother drove a rig for a long time. My brother parked his rig in disgust and refused to drive anymore last year. The list of complaints was endless-starting from the DOT (dept of trans) and licensing, to being targeted for tickets to make up county budget shortfall (that came out of his pocket), to the dream/cheat sheets (fake travel time log sheets), to fuel prices, poor reimbursement, vehicle expense (21.5K-31.5K), rude drivers, etc. He just couldn't stand the BS anymore. He told me last year that there would soon be a horrific shortage of drivers. He was spot on.

[54anickel]

160. Yeah, I've heard it really sucks these days. My old school friend

got out years ago - burnt out. But it does seem like such a great fantasy job. They don't mention the tight delivery times, back breaking loading and unloading, trucks with governors limiting your speed, trucks with GPSs tracking your where abouts, four-wheelers cutting you off, using public showers and bathrooms, and all of the other "ugly" stuff associated with it.

[AnneD]

164. The best trucking job I heard of...

a teacher friend's sister and BIL. Drove special cargo for fed ex as a team. They hauled every where but special cargo. They would come up to the school and visit the kinder class. They corresponded while they were on the road. They would stop by during the school year to visit. Their truck was wonderful (complete with a small kitchen with seating and bed)

Their best story...they hauled some Rembrandts cross country to a museum. The pictures were loaded in and off for them. They had a security escort that watched the cargo while they were at break at the restaurant.

In Europe, I had the pleasure of stopping in a French truck stop (boy, do they out class our stops). Dinner served on china and crystal glasses. And the food....my oh my, no need for antacids. The meals available were to die for (complete with wine and beer). Pates, cheeses, salads, fresh breads, meats of every description, veggies, sauces. It was great. And yes, there was a chef (no short order cook) in the back. He came out and talked with the drivers and everyone there.

[54anickel]

89. Caterpillar profits soar 45 percent

http://www.suntimes.com/output/business/cst-fin-earns25.html

Heavy equipment maker Caterpillar Inc. posted record first-quarter profits Monday and boosted its earnings forecast for the year amid a sales surge sparked by ongoing global demand for its hulking construction and mining machinery.

Caterpillar topped Wall Street's expectations as earnings rose 45 percent to $840 million for the quarter that ended March 31, up from $581 million during the same period in 2005, when the Peoria-based company finished the year with record profits and revenues.

Profit per share was $1.20 for the January-March period, matching the company's best-ever mark set in the last quarter of 2005 and up from 81 cents a share a year ago. Analysts surveyed by Thomson Financial had forecast profits of $1.05 per share.

Caterpillar, the world's largest construction and mining equipment maker, says low interest rates and inflation have fueled an upswing of construction and mining worldwide, boosting demand for its trademark yellow machines that include a mining truck as large as a two-story house.

snip>

Some analysts worry that Caterpillar's first-quarter profits were bolstered by price increases over the past 18 months and say earnings could dip if costs for steel or other materials rise unexpectedly later this year.

more...

[54anickel]

102. 'American Theocracy' author sees country on edge of precipice

(Sorry if this is a dupe)

http://www.rockymountainnews.com/drmn/books/article/0,2792,DRMN_63_4638296,00.html

Author Kevin Phillips, a former mouthpiece for the Republican party, turned more than a few heads in our nation's capital two years ago with the publication of American Dynasty, a scathing indictment of the Bush and Walker families and their century-long investment in America's energy, security and intelligence communities.

His postulate was that the Bush family's lengthy involvement with our nation's political system - first grandfather Prescott Bush, then father George Herbert Walker Bush and finally the son George Walker Bush - had turned our democratic system of leadership into a royal dynastic model based on the British system we dispensed with during our war for independence in the 18th century.

The charge was a potent one, given that Phillips was the author of The Emerging Republican Majority back in 1969, a prescient study of voting trends that predicted the Republican Party's current domination of American politics, a shift in political power he wholly endorsed at the time.

His new book, American Theocracy, takes his American Dynasty thesis one step further, predicting a confrontational crossroads, or meltdown, predicated on our nation's entanglements with fundamentalist Christianity, hydrocarbon energy and a colossal debt that's unmatched in human history.

And history is where the author takes us on his stupendously researched journey through the last 500 years of superpower history. Marshaling economic and political data about the life cycles of Spanish, Dutch and finally British imperial ambitions, he ultimately focuses his unsparing eye on America's emergence from regional industrial power to the current global hegemony that now rivals any civilization in history.

more...

[54anickel]

106. "They've" Got Us Believing...

http://www.321gold.com/editorials/tanashian/tanashian042206.html

Not that I know who "they" are, but they've got us (with "us" defined as the majority of the investing world) believing that:

* It is fine and normal for gold and the stock market to bull concurrently.

* That the US Dollar can be depreciated ceaselessly to good economic ends.

* That some commodities and the "China story" are not currently a bubble, in cyclical terms at least.

* That this time it is different, no really! The Fed will ease up on rates with stocks, commodities and gold all at multi-year, or multi-decade highs.

* That the Fed even has much say in how high short term rates can go.

* That this magic show, whereby a formerly great superpower sacrifices its productive sectors, consumes on credit and feeds off of global labor arbitrage, can go on and on without consequence.

Well, I would suggest we all keep in mind the old axiom, which is hyper-amplified in importance to investors, "if everybody believes something to be true, chances are it isn't".

snip>

The advice is so simple it will seem nonsensical to today's raging bulls; stay grounded, go by what you see and not by what the mainstream gurus tell you you see, and prepare for a simpler, more fundamentally sound lifestyle.

more...

[UpInArms]

107. Enron: Lying Sack of Sh** Lay claims "witch hunt" brought Enron down

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T175143Z_01_N2573154_RTRIDST_0_ENRON-TRIAL-PICTURE.XML

HOUSTON, April 25 (Reuters) - Enron Corp. was a victim of a "witch hunt" that unfairly criticized the giant energy company's business and drove it toward bankruptcy, former Chairman and Chief Executive Kenneth Lay testified at his criminal trial on Tuesday.

In his second day on the witness stand, Lay told the jury that in October 2001 the Wall Street Journal had reported that Enron had engaged in dubious deals through partnerships operated by Enron's former Chief Financial Officer Andrew Fastow.

"We thought in fact the Wall Street Journal was on a witch hunt," Lay said under questioning from his lawyer George "Mac" Secrest. "We didn't have any information that Andy Fastow had done anything inappropriate."

<snip>

The Wall Street Journal articles were the first to scrutinize the Fastow partnerships, which Enron used to hide billions of dollars in debt while inflating its profits. Those articles and the intense media coverage that followed helped drive the company into its December 2001 bankruptcy, then the largest in U.S. history.

<snip>

At times, he appeared to grow irritated with the questions from Secrest, who had stepped in to replace Lay's lead lawyer Michael Ramsey. Ramsey has been absent from the courtroom for weeks since undergoing heart surgery earlier in the trial after suffering chest pains.

...more...

How dare his attorney have "chest pains" and maybe be dying instead of defending "Kenny Boy"!

[wordpix]

109. LOL, Lay blaming Wall St. Journal for troubles is like * blaming leakers

for undermining national security when he's Leaker-in-Chief.

[Roland99]

110. If it was just a witch hunt, why did Enron collapse under a Mtn of debt?

Freakin' bastard deserves the chair.

[wordpix]

112. & why did $220 million given to Enron by CT gov. in illegal loan disappear

right around the time Enron went belly up? Money must have gone somewhere...

[Roland99]

113. Wonder how many offshore accts are held by Lay, Fastow, etc.?

[54anickel]

108. U.S.-China Trade: Examining the “Disconnect”

http://kwrintl.com/library/2006/ExaminingTheDisconnect.htm

NEW YORK (KWR) April 24, 2006 -- April 18th witnessed two important developments in U.S.-China trade relations. The day started with the arrival of China’s President Hu Jintao in Washington state for his first official visit to the United States. Hu’s visit was intended to deepen U.S.-China economic relations amidst rising protectionism in Congress, and assert China’s rising global influence.

In Washington, D.C., April 18th also saw a changing of the Bush Administration guard on trade policy, and possibly of the Administration’s approach to China policy. President Bush announced that he was nominating current U.S. Trade Representative (“USTR”) Rob Portman to head the Office of Management and Budget, and current Deputy USTR Susan Schwab to replace Portman. Portman’s departure, though not surprising given the current White House shakeup, comes at a critical time as the Doha Development Agenda (DDA) negotiations hang in the balance. Many trade hands in Washington are saying that shifting Portman, a highly-regarded “rising star” in the Administration, from a trade portfolio to the OMB position sends a strong signal that the Bush Administration no longer places trade high on its policy agenda, and in particular that there is little hope for a substantively successful outcome in the DDA negotiations.

With regard to China, the emerging view seems to be that Portman’s transfer may reopen the door for Deputy Secretary of State Robert Zoellick to play a more critical role in overall China policy coordination. That, analysts say, would mean that the Bush Administration’s China trade agenda will shift away from the goal of using the DDA talks to further integrate China into the world trading system, and deepening bilateral trade relations with China to that of responding to domestic pressures by increasing enforcement against China’s alleged unfair trade practices.

The notion that the U.S. line on China trade was hardening may have been further confirmed by Ambassador Schwab’s comments thanking Bush for the USTR nomination. She made no specific mention of China but noted that “holding our trading partners accountable through enforcement of existing trade laws and agreements will continue to be a critical component of our trade agenda.”

So, in single day, on one U.S. coast, the President of China was seeing closer ties to the United States, promising more responsiveness on trade issues, and describing the extensive economic relationship between the two countries. On the other coast, many feel the President of the United States was signaling a shift in U.S. attitudes that could put additional tension on that relationship. What are trade watchers to make of these parallel events?

more...

[Roland99]

111. What is the long-term goal for neoconservatives, economically?

Do they even have economic aspirations or is it just simply global dominance of US foreign policy and whatever happens after that doesn't matter?

[54anickel]

119. Global dominance plain and simple. Sort of like in Monopoly - does

it matter how much money you hold if you own the majority of great properties on the board? You own it and the money comes rolling your way in the end - game over. Short sighted of them, but it's the Repuke way.

[Roland99]

123. I think it's beyond the standard pro-corporate whore stance of the GOP

this is a whole new paradigm.

[54anickel]

131. Oh yeah, I agree there. This is the neo-con, pnac party - not the old

"Newt" party that took over the old Republican party. That's the problem with the Repukes, they've been over taken so many times they've lost their roots so now they're just the party of image and lies that uses one group or another and wedge issues to get elected. They have no goal to focus on anymore.

The goal is to win, convince members to stick to the party line to keep the win, and then it's a free for all within the party. They'll back anything that comes up because the win and keeping the win has become so ingrained.

[Roland99]

135. It's sort of like Stockholm Syndrome with their base

They learn to identify with their ideologue captors.

[54anickel]

141. Yeah, and it's sort of scary when you think about it. The Republicans

gave up their core values and beliefs for the short-term prize of the "win". They took the "win at all costs" approach.

What's scary is the Dems looked to be headed in the same direction. Don't get me wrong, I loved Clinton - thought he was a great statesman and politician, BUT he got the party to give up many of their core values and beliefs to get the win by moving more to the center which in essence moved the center even more to the right.

I think all of the movements in both parties has been somewhat choreographed by the elite plutocracy - but that's just the CT coming out in me. :tinfoilhat: :evilgrin:

[Roland99]

145. Couldn't agree more about Clinton. That's why I like Dean more

Kucinich would be good but he doesn't have the 'looks', knowwhadduhmean?


As for the Repukes, the way things keep going, they'll turn 100% into fascists and still call themselves the Party of Lincoln.

[54anickel]

148. Bwahahaha!!! So true....

they'll turn 100% into fascists and still call themselves the Party of Lincoln

[54anickel]

147. Democrats Beat Republicans in 2005 Fund-Raising on Wall Street

Seeing the writing on the wall and want to ensure their influence?

http://www.bloomberg.com/apps/news?pid=10000103&sid=ann7KHncBOdc&refer=us

April 24 (Bloomberg) -- Democrats outdid Republicans last year in attracting political donations from investment banks, brokerages and fund managers for the first time since 1994, helped by support from hedge funds and companies such as Merrill Lynch & Co.

Democrats got $13.6 million, or 52 percent of the financial industry's $26.3 million in political donations in 2005, said the Center for Responsive Politics, a nonpartisan Washington group that researches the influence of money on elections and public policy. In the two years leading up to the 2004 presidential election, Republicans received 52 percent of the $91.6 million given by the industry.

``Wall Street wants change'' on issues such as the Iraq war and the budget deficit, said James Torrey, chairman of the Torrey Funds, which manages about $1 billion. ``I'm finding people who are registered Republicans who are saying to me, `what can I do to help?'''

The securities and investment industry is among the biggest sources of campaign cash in U.S. politics. The industry's 2004 contribution total to candidates and parties was higher than any group except lawyers, health professionals and the real estate industry, according to the center, which studied Federal Election Commission records.

The Iraq war and ethics problems among congressional and executive-branch Republicans have helped drive President George W. Bush's public approval ratings to the lowest point of his presidency. That has spurred donations to Democrats, said Orin Kramer, general partner of Boston Provident Partners LP in New York and a longtime Democratic fund-raiser.

`Party With No Power'

more...

OK, now I don't think this is what Josh Bolten had in mind in his step 2 of the 5 step process! :evilgrin:


2 MAKE WALL STREET HAPPY. In an effort to curry favor with dispirited Bush backers in the investment world, the Administration will focus on two tax measures already in the legislative pipeline--extensions of the rate cuts for stock dividends and capital gains. "We need all these financial TV shows to be talking about how great the economy is, and that only happens when their guests from Wall Street talk about it," said a presidential adviser. "This is very popular with investors, and a lot of Republicans are investors."

http://www.time.com/time/magazine/article/0,9171,1186555-1,00.html

[Roland99]

149. Dean's 50-state strategery coupled with Bushco's failures.

I'll take a win in Nov. no matter how it came about!

[Roland99]

161. You inspired me to write this, 54anickel!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2590264

[54anickel]

163. Bravo! Beautifully said! Glad to be considered the inspiration, though

I believe it was all you Roland!

[UpInArms]

115. NH: Franklin company closing after being acquired by Polyclad Laminates

http://www.boston.com/news/local/new_hampshire/articles/2006/04/25/franklin_company_closing/

FRANKLIN, N.H. --One of the major employers in Franklin (New Hampshire) is closing.

Just four months after being bought by an Arizona company, Polyclad Laminates is shutting down. The Citizen reports obtaining a letter from the city that says it got word from the state that layoff notices could go out as early as next Friday.

City Manager Greg Doyon said Polyclad is the third-largest employer in Franklin, with more than 200 employees at two facilities. The company makes components and materials for the electronics industry.

Isola Global bought the company in December.

[UpInArms]

118. 2:25 EST faeries doing their spiky straight up thingy

Dow 11,295.90 -40.42 (-0.36%)
Nasdaq 2,330.88 -2.50 (-0.11%)
S&P 500 1,303.48 -4.63 (-0.35%)
10-Yr Bond 5.077 +0.92 (+1.85%)

NYSE Volume 1,651,344,000
Nasdaq Volume 1,703,113,000

and you know there is just so much good news that I believe it's real! :sarcasm:

2:00 pm : Stocks are still on the defensive as a bearish bias remains intact. As reflected in the A/D line, decliners on the NYSE hold a nearly 2-to-1 edge over advancers while declining issues on the Nasdaq outpace advancing issues by a 17-to-12 margin. The inability by the Dow and S&P to find support near key technical levels of 11312 and 1305, respectively, is also adding to the sense that the market may be overbought at current levels. It is worth noting though that the Nasdaq, which is down for a fourth straight session, is posting a smaller loss as it has found modest support above the 2324 level. DJ30 -55.95 NASDAQ -6.82 SP500 -7.03 NASDAQ Dec/Adv/Vol 1714/1247/1.58 bln NYSE Dec/Adv/Vol 2086/1088/1.08 bln

[Roland99]

122. "may be overbought"

The hell you say!

[UpInArms]

121. Neil Young, train maker Lionel win OK for venture

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T182547Z_01_N25328219_RTRIDST_0_LEISURE-LIONEL-NEILYOUNG-PICTURE.XML

NEW YORK, April 25 (Reuters) - Rocker Neil Young on Tuesday won a bankruptcy court ruling to form a joint venture with Lionel LLC, the storied model train maker operating under protection from creditors.

The venture, known as Liontech Trains LLC, will develop the latest version of Lionel's Trainmaster control system. Lionel is partnering with Young's Creative Trains Co., and was to contribute $1.5 million to the venture.

Young, 60, the singer-songwriter who has worked as a soloist and as part of the groups Buffalo Springfield and Crosby, Stills, Nash & Young, is a model train enthusiast who owns about one-fifth of Lionel. He has developed technology for the company in the past.

<snip>

Founded in 1900, Chesterfield, Michigan-based Lionel filed for Chapter 11 bankruptcy protection in November 2004 because it had just lost a $38.6 million federal jury verdict in favor of Mike's Train House in a trade secrets lawsuit. Lionel is appealing the award.

...more...

:loveya: Neil Young! :yourock:

[UpInArms]

126. DHS to conduct background checks on 400,000 port workers

2:38 PM ET 4/25/06 DHS TO CONDUCT BACKGROUND CHECKS ON 400,000 PORT WORKERS

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B348AA7BE%2DDD2B%2D4602%2D937C%2D77BBD692EE6C%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Department of Homeland Security said Tuesday it will begin conducting name-based background checks on nearly 400,000 port workers within the United States. The checks will be an initial measure as the department rolls out a nationwide biometric-based Transportation Worker Identification Credential this year. The preliminary name checks will be completed by this summer, and will initially be required for longshoremen and maritime employees of facility owners and operators. Ultimately, all individuals will require a TWIC in order to be eligible for unescorted access to secure areas, the department said. The initial name check won't include the full criminal records check that will be a part of the TWIC program.

link and blurb on edit

[Roland99]

136. Can't wait to hear of the stories of bribes and looking the other way.

[UpInArms]

130. Fla. Woman Dies After Taser Gun Shock

http://news.yahoo.com/news?tmpl=story&cid=519&e=17&u=/ap/20060425/ap_on_re_us/brf_taser_death

GREEN COVE SPRINGS, Fla. - A woman in a wheelchair who swung knives and a hammer at relatives and police died after being shocked by a stun gun, officials said.

Police tried to talk Emily Marie Delafield, 56, into dropping the weapons before they used the Taser to subdue her Monday, Police Chief Robert Musco said. Delafield lost consciousness after the electric jolt and later died at Orange Park Medical Center.

<snip>

Tasers deliver a 50,000-volt jolt through two barbed darts that can penetrate clothing. About 7,000 of the nation's 18,000 police agencies had them last year, and they were used by police more than 70,000 times.

Amnesty International counted 61 U.S. deaths following Taser use last year. Taser International officials disputed that count, saying it linked some deaths to Taser use when there had been no such official conclusion.

...more at link...

I wonder how many shares of Taser Bernard Kerik still holds?

A Shocking Defense

excerpt:

Taser International, The Under-siege stun gun maker whose stock soared sixtyfold in three years only to plunge 80% amid short-seller raids, shareholder class actions and wrongful- death lawsuits, has had another shock to the system.

Newly unsealed court documents in a personal injury case against Taser have President Thomas Smith detailing which current and former cops got stock options in Taser in exchange for essentially endorsing its line of guns, which temporarily paralyze suspects with a blast of electrical currents.

The options controversy first erupted in 2004, when President George W. Bush picked Bernard Kerik, the former New York City police commissioner, to run the Homeland Security Department. It then emerged that Taser had paid Kerik 85,000 options to join its board. Kerik says he promoted the gun to law enforcement and made more than $6 million on the options. Taser had repeatedly refused to disclose which other cops got the stock incentives.

But in September an Arizona state court judge unsealed records in a lawsuit filed by SECInsight, a research firm in Plymouth, Minn., And the Arizona Republic newspaper. The records show Taser handed out almost 30,000 stock options to 11 people from 2001 to 2003, when Taser shares ranged from a low of 31 cents to a high of $8. The options, valued at $210,000 when they were issued, would have risen in value as Taser shares climbed as high as $33 by December 2004.

Seven of the 11 recipients are current and former police officers: All were in cities that bought stun guns.In Seattle, Wash. and Chandler and Glendale, Ariz. police departments bought Tasers during the options handouts. In Sacramento, Calif., New York City and Austin, Tex. departments had bought the stun guns before the cops got involved. The officers could not be reached for comment. Victoria, B.C. also bought Tasers.

...more...

[AnneD]

157. Wonder if our Chief of Police was one of those...

He came from AZ and has really been pushing tasers.

[UpInArms]

142. 3:13 EST faeries nowhere in sight - flow of red increases

Dow 11,266.87 -69.45 (-0.61%)
Nasdaq 2,325.61 -7.77 (-0.33%)
S&P 500 1,299.97 -8.14 (-0.62%)
10-Yr Bond 5.069 +0.84 (+1.69%)

NYSE Volume 1,909,349,000
Nasdaq Volume 1,937,924,000

3:00 pm : Little changed over the last 30 minutes for the blue chip indices, but the Nasdaq has recently hit its best levels of the afternoon. Renewed buying interest in hardware has been a source of support. The group has benefited from a 3.5% surge in Lexmark (LXK 48.32 +1.62), following strong Q1 results, while Sun Microsystems (SUNW 5.05 +0.07), which has surged 1.4% amid the appointment of a new CEO, has been the most actively-traded stock on the Composite. DJ30 -50.23 NASDAQ -2.89 SP500 -5.99 NASDAQ Dec/Adv/Vol 1682/1318/1.86 bln NYSE Dec/Adv/Vol 2095/1124/1.30 bln

2:30 pm : Range-bound trading persists for stocks and bonds as both continue to languish near their lowest levels of the day. In fact, with yields on the latter at their highest (5.07%) since June 2002, the rate-sensitive Utilities sector is now edging out Energy as the day's worst performer. All 15 of the components on the Dow Jones Utilities Index are trading lower as the continued rise in Treasury yields, which plays into our Underweight rating on the sector, diminishes the income-oriented appeal of utility stocks.DJ30 -53.42 DJUA -1.0% NASDAQ -6.04 SP500 -6.24 NASDAQ Dec/Adv/Vol 1739/1230/1.71 bln NYSE Dec/Adv/Vol 2120/1074/1.18 bln

[54anickel]

144. Minor correction in an overbought market. Heh, they'll use that line

all the way back to 10,500 on the DOW. :evilgrin:

[Roland99]

146. If it falls to 10,500 before this month is over, I think it would keep

going on down to about 9k

[54anickel]

151. Hell yes! That's less than a week - that would be the bottom falling

out from under!

I don't think they'll let that happen. I was thinking more along the lines of drifting downward slowly, like a feather in the breeze, as they reference the "over bought" meme until the end of the quarter when she starts to tank. That's when they'll lure in the bargain hunters with the "over sold" meme.

This party is far from over, check out UIAs post 25. Are we about to enter phase II of this grand liquidity experiment?

[Roland99]

154. Yeah, saw that. Not sure the market would accept a slow drop.

There are too many artificial supports and protection plans to ease it back on up.

Now, a huge drop would be nigh on impossible to recover from gracefully using faeries and PPTs. I think should a large drop (>10%) occur, the facade will be ripped off violently and the house of cards will collapse.

[UpInArms]

153. Fed offical says more needed to fix CDS trading ($17 TRILLION in derivativ

$17 TRILLION in derivatives!!!!!

Oh, that makes my head really hurt!

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-25T192459Z_01_N25542055_RTRIDST_0_FINANCIAL-DERIVATIVES.XML

NEW YORK, April 25 (Reuters) - Dealers have made much progress in fixing back-office problems in the $17 trillion global credit derivatives market but much still needs to be done, including developing new systems and standards, an official at the New York Federal Reserve said on Tuesday.

"Despite all of the apparent progress, the industry remains quite manually intensive and could be prone to disruption should it face several large or simultaneous credit events," said Brian Peters, senior vice president of bank supervision at the New York Fed, in prepared remarks to a derivatives conference in New York.

He spoke to the inaugural "Credit Derivatives Conference," organized by conference arranger Worldwide Business Research.

Dealers have been working aggressively to reduce unconfirmed trades and contract transfers since the New York Fed and other regulators called 14 banks to a meeting to discuss concerns last September.

...more...

[Roland99]

155. ZOINKS!!

So much money being bandied back and forth. Making money off of transferring money. Reminds me of Martin Sheen's character from Wall Street....forget the line he says to Charlie...something about how is anything being made from handling money?

[ozymandius]

162. Time to close up shop --

Dow 11,283.25 -53.07 (-0.47%)
Nasdaq 2,330.30 -3.08 (-0.13%)
S&P 500 1,301.74 -6.37 (-0.49%)
10-Yr Bond 50.71 +0.86 (+1.73%)
NYSE Volume 2,366,378,000
Nasdaq Volume 2,343,274,000

4:20 pm : The major averages closed lower Tuesday as renewed inflation fears overshadowed another batch of better than expected earnings and a pullback in the price of crude. Eight out of ten economic sectors closed in negative territory.

Just after the market opened, April Consumer Confidence unexpectedly rose to 109.6 -- the highest level since May 2002. Another economic report that would normally bode well for the stock market was an unanticipated 0.3% rise in March existing home sales to 6.92 mln, especially following a strong 5.0% gain in February. However, in a rising interest-rate environment in which "weaker than expected" data are more welcome, as they ease worries of more rate hikes, today's "stronger than expected" reports raised concerns that the Fed may have further to go with its tightening efforts to stave off inflationary pressures. As a result, Treasuries tumbled, lifting the yield on the 10-yr note to 5.07% -- the highest level since June 2002 -- which underpinned a sense of nervousness, especially in the rate-sensitive Financial and Utilities sectors. In fact, the latter turned in the day's worst performance (-1.3%), as the continued rise in Treasury yields, which plays into our Underweight rating on the sector, diminished the income-oriented appeal of utility stocks.

On the earnings front, Valero Energy (VLO 66.35 -2.75) opened at a record high after it posted the highest Q1 profit in its history and BJ Services (BJS 38.85 -0.50), a suggested holding in our Active Portfolio, also beat analysts' expectations handily, playing into our Overweight rating on Energy. Nonetheless, consolidation in crude oil futures spurred by energy commentary from President Bush prompted investors to lock in some of the sector's leading 17% year-to-date gains. Bush said he will defer filling the strategic reserve this summer and waive requirements for gasoline to be blended with ethanol, new that sent gasoline futures plummeting. Crude oil closed down 43 cents at $72.90 a barrel while gasoline fell 4.14 cents to $2.1325 a gallon.

While falling oil prices bode well for consumers, oil near $73 a barrel is still a big concern heading into the summer driving season since high oil prices sap consumer spending power and, with the broad increases in other commodity prices, does create inflationary pressures. Thus, the absence of Energy's leadership (-1.2%) and the growing understanding that Energy sector profits are unlikely to increase at the same pace as over the past year helped keep buyers on the sidelines. Burlington Northern (BNI 81.49 -5.35) and Northrop Grumman (NOC 69.06 -2.17) also posted better than expected earnings, but since both stocks rose sharply ahead of their reports, a sell-the-news response as well as consolidation in Caterpillar (CAT 74.93 -2.45) -- the Dow's best performing component this year, weighed heavily on the Industrials sector.

Technology was in focus after AT&T (T 25.60 +0.07) posted a 63% increase in Q1 profits and Sun Microsystems (SUNW 4.99 +0.01) appointed a new CEO committed to restore sales growth and reverse losses. However, further consolidation in Internet names like Google (GOOG 427.16 -13.34) and Yahoo! (YHOO 31.99 -1.02) offset reports that IBM (IBM 82.74 +0.63) raised its dividend 50% and authorized an additional $4 bln buyback. BTK -1.0% DJ30 -53.07 DJTA -0.5% DJUA -1.2% DOT -0.6% NASDAQ -3.08 NQ100 -0.3% R2K -0.2% SOX +0.3% SP400 -0.4% SP500 -6.37 XOI -1.3% NASDAQ Dec/Adv/Vol 1688/1369/2.32 bln NYSE Dec/Adv/Vol 2079/1166/1.68 bln

[Roland99]

166. Holy Crap! Are we near inversion again?