STOCK MARKET WATCH, Friday March 2

[ozymandius]

Friday March 2, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 689LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2258 DAYS
WHERE'S OSAMA BIN-LADEN? 1962 DAYS
DAYS SINCE ENRON COLLAPSE = 1922
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON March 1, 2007

Dow... 12,234.34 -34.29 (-0.28%)
Nasdaq... 2,404.21 -11.94 (-0.49%)
S&P 500... 1,403.17 -3.65 (-0.26%)
Gold future... 665.10 -7.40 (-1.11%)
30-Year Bond 4.68% +0.01 (+0.21%)
10-Yr Bond... 4.56% +0.01 (+0.13%)






GOLD, EURO, YEN, 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. Today's Market WrapUp

Complacency Not Wrung Out
Media Behavior Proves It
BY MARTIN GOLDBERG, CMT

For a number of reasons, the market is likely to sustain additional losses in the weeks ahead. While the market has been lulled into complacency, Tuesday’s action does not change anything regarding the public’s complacency toward the stock market. Nothing has been wrung out - in fact Tuesday’s action merely reinforces the existence of public complacency. Consider that in terms of historic perspective, there was nothing special about what happened on Tuesday. The magnitude of the drop, only a little over 3% on the S&P 500, was nothing tremendously unusual when taken in historic perspective.

Yet in spite of this rather benign price action, radio, TV, and newspapers were overwhelmed with news, guidance, counseling, cheerleading, discussing, predicting, and various proselytizing about the stock market. CNBC dedicated a night time show to guide their viewers to not get nervous and sell out at the bottom and to focus on bargain hunting. The stock market was the lead story in many news broadcasts both Tuesday evening as well as Wednesday. I’m told that they broke into the Oprah show with a stock market story on Tuesday. While it is refreshing to see the stock market lead, it is totally inappropriate for the market to become the lead story on action that is rather ordinary when taken in historic perspective.

The news stories all seemed to have the same tone. That is, “don’t worry folks; you don’t want to sell out at the bottom.” There was also a lot of talk and advice on “bargain hunting.” In addition, TV viewers were able to watch straight-faced comparisons between Tuesday’s action and that of the 1987 and 2000 crashes. While this may make for favorable TV ratings, there is no technical truth to such a premise. Below is a chart of the Dow Jones Industrials before and through the 1987 crash. In this case, a long standing uptrend beginning in mid-May was finally broken in early September. (The top occurred in late August – more than 30 days from the market top.) The broken trend was about one month old when the crash occurred.

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

[Ghost Dog]

98. It's the volatility, stupid! (did we miss this one, yestreday?)

http://today.reuters.co.uk/news/articleinvesting.aspx?type=fundsNews&storyID=2007-03-01T104226Z_01_NOA138134_RTRUKOC_0_MARKETS-VOLATILITY.xml
Thu Mar 1, 2007 10:36 AM GMT

LONDON (Reuters) - The most eye-popping move on financial markets over the past two days of ruction turns out not to have been the nearly 9 percent fall in China's stock market that triggered it.

Instead, the honour went to the VIX, the U.S. index of implied volatility that shot up 64 percent on Tuesday in what was widely seen as a wave of risk aversion by investors.

Often called the "fear index", the VIX is used by many as a forecaster for future equity market moves, with a high number suggesting turmoil and a low one calm. It is also a way for investors to hedge against losses on the S&P 500.

So what does Tuesday's volatility romp say about the future? Perhaps not as much as the number might suggest.

For one thing, the rise from about 12 to 18 on the index was quickly pared back on Wednesday. The index was down at 14.8, around 19 percent lower.

In addition, the levels reached on Tuesday were nothing special. The VIX's high, in October 1987, was 171.52. Current levels may be higher than they have been recently, but they are still low.

One analyst said that for his firm to start taking serious note, the VIX would have had to have gone to 27.

/...

[ozymandius]

2. Today's Report

10:00 AM Mich Sentiment-Rev. Feb
Briefing Forecast 93.3
Market Expects 93.3
Prior 93.3

http://biz.yahoo.com/c/e.html

[UpInArms]

26. Whoopsie! UMich Fed revised downward to 91.3 (we are NOT happy)

02. UMich Feb. sentiment below 96.9 in Jan.
10:01 AM ET, Mar 02, 2007 - 42 seconds ago

03. UMich Feb. sentiment below 93.5 forecast
10:01 AM ET, Mar 02, 2007 - 42 seconds ago

04. UMich Feb. sentiment revised down to 91.3 vs 93.3
10:01 AM ET, Mar 02, 2007 - 42 seconds ago

[ozymandius]

3. Oil prices climb above $62 a barrel

VIENNA, Austria - Oil prices rose Friday on worries over tightening gasoline supplies, and perceptions that production cuts by the Organization of Petroleum Exporting Countries were starting to take effect.

Light, sweet crude for April delivery rose 21 cents to $62.21 a barrel in electronic trading on the New York Mercantile Exchange by noon in Europe.

On Thursday, the contract rose 21 cents to settle at $62.00 a barrel — its highest settlement price since Dec. 22 — following a rally in gasoline futures, which rose on reports of a glitch at a Valero Energy Corp. refinery. Valero said operations at its Port Arthur, Texas, refinery were normal, despite the reported outage of a unit.

-cut-

Market participants were also focusing on the outlook for gasoline supply entering the peak spring and summer driving season. Problems at U.S. refineries have reduced output and cut into petroleum product supplies.

http://news.yahoo.com/s/ap/oil_prices

[Roland99]

8. Refinery glitches, stock market glitches. Gremlins are to be feared more than terrorists.

;)

[radfringe]

20. glitches my ass

gas went up .20 cents in 3 freaking days -- they aren't even trying to hide it with penny bumps any more -- it's jumping 5-10 cents at a time

[Roland99]

24. Up about $0.60-0.65 here in 5 weeks. just under 35% increase.

But, states around us are up to $0.30 cheaper. Makes no sense whatsoever.

[Ghost Dog]

36. Cuba oil boom may complicate U.S. embargo

DU: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2752372

The discovery of oil in the Florida Straits and near the Cuban shoreline -- potentially billions of barrels of reserves -- has boosted Cuba's energy prospects and drawn the attention of the U.S. oil industry.

Now, a small Canadian energy company, Sherritt International, says it plans to export Cuban oil for the first time -- a move that could put the crude on a collision course with the U.S. trade embargo against Cuba.

/...

[ozymandius]

4. Lenovo Recalls 205,000 Laptop Batteries

Chinese PC maker Lenovo Inc. recalled about 205,000 laptop computer batteries made by Japan's Sanyo Electric Co., warning that they could overheat and cause a fire.

The worldwide battery recall announced Thursday was the second for the company in the past six months and comes as Lenovo, the world's No. 3 computer maker, tries to gain ground on its better-known competitors.

The latest recall includes about 100,000 batteries in the United States and another 105,000 worldwide, Lenovo spokesman Bob Page said. The recall follows four reports of overheating. In one case, a user suffered minor eye irritation, the company said.

-cut-

Sanyo officials defended the batteries Friday, saying the problems resulted from a strong external impact to the battery and were not triggered by the batteries themselves.

http://www.forbes.com/feeds/ap/2007/03/02/ap3478404.html

[ozymandius]

5. Buffett warns 'aspiring press lords' of bleak future

Billionaire investor Warren Buffett thinks that more wealthy people will try to buy U.S. newspapers for prestige value, but warned "aspiring press lords" to beware of a bleak future.

-cut-

"Aspiring press lords should be careful, however: There's no rule that says a newspaper's revenues can't fall below its expenses, and that losses can't mushroom," warned Mr. Buffett, who owns The Buffalo News in New York. "Fixed costs are high in the newspaper business, and that's bad news when unit volume heads south." His warning on the health of the business comes as newspaper stock values have slid in recent years.

-cut-

The trends have caused shareholders at leading U.S. journalism companies such as New York Times Co. and Tribune Co. to urge management to consider division sales or outright buyout offers.

-cut-

As the importance of newspapers diminishes, he wrote, the "psychic" value of owning a paper will wane.

http://www.theglobeandmail.com/servlet/story/LAC.20070302.RTICKERWARREN02/TPStory/Business

[randycrow]

131. Go Along With Nuking Iran or

the bad guys will "Free Fall" the markets. Engineered crash to soften up investors to go along with Neocon War Crimes. "Bubble Man" Greenspan with his unreal low interest rates manufactured the Ponzi economic times we live. It is easy to manipulate the market down when it takes massive inflows of cash to keep the markets up. Neocons are black mailing the planet. Go along with Neocon manipulated wars or we will send the Dow to $100.00.

[Demeter]

134. And I Thought I Was Paranoid! Now I Have Something Else To Worry About!

Thanks, randycrow.

[ozymandius]

6. G'morning Marketeers.

:donut: :donut: :donut:

I have an early morning meeting. See you around lunchtime.

Ozy :hi:

[Ghost Dog]

27. Good morning! Japan inflation falls to zero in January

Uff. I'm busy with other stuff these days, like 54anickel, but here's checking in with some (preoccupying) international news:

http://www.ft.com/cms/s/13d780ec-c866-11db-9a5e-000b5df10621.html

Japanese inflation as measured by the core consumer price index fell to zero in January, the first flat reading in eight months, according to official statistics released on Friday.

The rate of change of core CPI, which excludes fresh food but not energy, fell to 0.0 in January from 0.1 per cent in December.

Stripped of energy prices, the normal practice in most advanced economies, the CPI fell 0.2 per cent, the 13th straight month of decline.

Even including energy, the core inflation could turn negative over the next month or two, reflecting cheaper prices for crude oil than a year ago.

Toshihiko Fukui, governor of the Band of Japan, had signalled the possible dip in inflation last week after the central bank’s decision to raise interest rates a notch to 0.5 per cent. Explaining the rate increase, he told parliament that although the CPI might fall to "around zero" because of lower commodity prices, the general upward trend remained in place.

The BoJ could nevertheless face a few tricky months as it tries to defend its policy of gradually tightening rates in the absence of any discernible inflationary pressure. Nobuyuki Nakahara, a former BoJ board member but a long-time critic of the bank’s thinking, said any sign that the economy was faltering would put the bank under extreme pressure.

/...

[Ghost Dog]

28. Yen strength raises fears over carry trade

http://www.ft.com/cms/s/2e6ad43c-c879-11db-9a5e-000b5df10621.html

The Japanese yen on Friday headed for its biggest weekly gain against the dollar in 14 months, raising fears about the unravelling of the global carry trade.

The continuing strengthening of the yen comes in the wake of a widespread downturn and volatility across the global equity markets – which initially started on Tuesday when the mainland Chinese stock market fell by nearly 9 per cent.

The selling of equities appears to have been triggered by a strengthening of the yen. A stronger yen puts pressure on global carry trades, because it makes it less attractive to sell the low-yielding Japanese currency to buy higher-yielding assets in other currencies.

Some analysts have said that investors who faced losses in equities were closing profitable carry trade positions. As the Japanese yen strengthened, high-yielding currencies, including the New Zealand dollar and the South African, tumbled on Friday.

Japan’s currency has already gained almost 3 per cent this week, the biggest increase since late 2005, and was at 117.66 against the dollar in late trading in Tokyo on Friday. On Thursday, the yen reached 116.97 against the dollar, the highest since December 13, after rebounding from a four-year low of 122.19 at the end of January this year.

Eisuke Sakakibara, Japan’s former vice-finance minister once universally referred to as Mr Yen, said currency traders had long enjoyed an unusual period of stability, but that conditions “could change this year”.

However, he predicted that this week’s movement was not the start of carry trade unwinding, saying he expected the yen to trade within a Y115-Y120 range against the dollar for the rest of the year. “The carry trade is going to continue for some time and the weak yen tendency is not going to be reversed so quickly,” he said.

Mr Sakakibara said the Bank of Japan, which last week raised rates a notch to 0.5 per cent, could move again faster than markets expected, and that a rate rise as early as May was possible. However, he said that, as long as interest rate differentials with the rest of the world remained so high, a rapid unwinding of the trade was unlikely.

/...

[Ghost Dog]

30. Tokyo extends fall as rest of Asia starts to recover

http://www.ft.com/cms/s/e302460a-c86a-11db-9a5e-000b5df10621.html

Most of Asia’s stock markets staged cautious recovery on Friday, with the exception of Tokyo, where a continued fall in the Nikkei 225 Average erased the last remnants of the index’s 2007 gains.

Following wild swings in European and US markets overnight, Chinese stocks rebounded strongly, as investors judged the tumble this week, the worst for a decade, had left some stocks underpriced. The Shanghai Composite Index, gained 1.3 per cent to 2833.45.

Hong Kong’s Hang Seng index edged up 0.68 per cent by late morning, South Korea’s Kopsi added 0.3 per cent, while Indonesia’s Jakarta Composite Index jumped 3 per cent. But Australia’s benchmark S&P/ASX 200 index slipped 0.4 per cent.

In Japan, stocks were hit by continued global fears, and by the recent strengthening of the yen – although the Japanese currency was showing signs of stabilising against the dollar in morning trading.

By the day’s close the Nikkei 225 was down 1.4 per cent to 17,217.93. The broader Topix declined 1.1 per cent to 1,721.59.

The heavily export-focused electrical machinery sector dropped 2.1 per cent, hit by recent dollar weakness. The strongly international auto sectors fell 1.7 per cent.

On Thursday the dollar slipped to an 11-week low against the yen, although by Friday it had recovered a touch, to trade in Tokyo’s mid-afternoon at around Y117.6.

/...

[Ghost Dog]

31. Chinese investors refuse to be cowed

http://www.ft.com/cms/s/f14058ae-c817-11db-b0dc-000b5df10621.html

Chinese investors have faced a week of nerve-racking volatility that included both Tuesday’s biggest one-day drop in the country’s benchmark index and a resulting surge of heart attack patients at Shanghai hospitals.

But on Thursday the Citic brokerage office in downtown Shanghai, a ramshackle, two-storey building that stood largely empty this time last year, was bulging with aspiring Warren Buffetts, and cautious confidence rather than panic remained the dominant mood.

“This is not the end of the bull market by any means,” said Tang Zhonghua, a retired engineer who now spends his days in front of a trading terminal at the brokerage. “I am waiting for the market to fall a bit farther before making another move, but there is no one here who thinks this is the start of another collapse.”

China has been in the grip of stock market fever for the past 12 months. Share prices have more than doubled after years of decline.

The market has captured the imagination of urban residents, appealing both to their penchant for gambling and to their proud optimism in the country’s economic future.

Since the start of the year, individual Chinese investors have opened 1.6m new share trading accounts.

On Wednesday, the day after the Shanghai Composite fell almost 9 per cent, helping trigger a global sell-off, 117,000 new accounts were opened.

The lure of quick profits has attracted all sorts.

/...

[Ghost Dog]

32. China to pass first private property law

http://www.ft.com/cms/s/1b26d35c-c81b-11db-b0dc-000b5df10621.html

The Chinese parliament is expected to pass China’s first law to protect property rights after a contentious, year-long debate marked by traditional ideological divisions about the role of the private economy under communist rule.

The annual session of the National People’s Congress opens on Monday with the delivery of the so-called “work report” by Wen Jiabao, the premier, outlining this year’s budget and legislative programme.

Although it does not function like a fractious parliament in a western democracy, the NPC can act as a forum for delegates to publicise their views, mainly on economic and environmental issues.

The property law was delayed last year by a dispute between academics and officials over its balancing of state and private rights. Critics of the law, including hundreds of retired officials, have continued to press their opposition, circulating a new petition recently saying the law “overturned the basic system of socialism”.

“The property law has revoked the rule that public property is sovereign and ... castrated the spirit of the constitution that distinguishes legal from illegal private assets,” the petition said.

Yin Tian, a professor at Peking University who helped draft the law, said there was “no doubt” it would be approved in this year’s session. “The critics are actually opposing China’s overall reform and opening up. They don’t belong to the mainstream,” he said. “The establishment of property law is aimed at solving the problem of protecting the private assets of ordinary citizens.”

/...

[Ghost Dog]

34. European stocks reverse as turbulence resumes

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39143.3297916667-890910703&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equity markets gave up opening gains and turned lower, heading for weekly losses of nearly 5 per cent as turbulent trading resumed. By midday, the FTSE Eurofirst 300 was down 0.3 per cent to 1,464.93, taking its losses over the last five sessions to 4.8 per cent, its worst weekly decline since March 2003. Frankfurt’s Xetra Dax was 0.5 per cent lower at 6,609.62 the CAC 40 in Paris fell 0.4 per cent to 5,437.48 and London’s FTSE 100 was flat at 6,115.2.

/..

[Ghost Dog]

35. Swiss SMI Comes Off Early Highs

http://www.postfinance.ch/pf/content/en/topics/etrade/news/stockreportchmi.html

Swiss shares moved lower after early gains but continued in the black in midday deals on Friday after sharp losses earlier in the week. Even though some experts expect that the markets will stabilise again in the upcoming week, volatility still remains high.

By 11.30 a.m., the Swiss Market Index was 29.13 points or 0.33% higher at 8,811.04 with 12 gainers, 12 losers and 2 stocks unchanged. The Swiss Performance Index added 23.34 points or 0.34% to 6,984.13.
...

Among heayvweights, UBS fell 0.9% to CHF 71.35 while Credit Suisse Group added 0.29% to CHF 85.20. Roche rose 0.32% to CHF 217.90, Novartis gained 0.59% to CHF 67.70 and Nestle provided strong support, up 2.24% to CHF 468.75. Elsewhere in the positive column, Synthes advanced 1.78% o CHF 154.10, Nobel Biocare climbed 1.05% to CHF 407.50 and SGS rose 0.73% to CHF 1,383.

/..

[Ghost Dog]

53. European stocks close lower as turbulence resumes

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39143.4888194444-890929046&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equity markets gave up opening gains and turned lower by the close, making weekly losses of 5.1 per cent as turbulent trading resumed. By the end of the trading day, the FTSE Eurofirst 300 was down 0.31 per cent to 1,464.45, making its losses over the last five sessions its worst weekly decline since March 2003. The CAC 40 closed down 0.62 per cent at 5,424.70, while the Xetra Dax 30 in Frankfurt fell 0.56 per cent to 6,603.32.

[Ghost Dog]

54. London shares flat in cautious trade

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39143.4905092593-890929290&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities closed, little changed on Friday after a weak open on Wall Street and as investors continued to trade cautiously following a three-day global slide. The FTSE 100 closed unchanged at 6,116.2 while the mid-cap FTSE 250 ended the session 0.57 per cent higher at 11,046.1.

[Ghost Dog]

55. Swiss SMI Closes On A Friendly Note

http://www.postfinance.ch/pf/content/en/topics/etrade/news/stockreportchev.html

Swiss shares ended a volatile day in the black following four days of consecutive losses and after Wall Street opened in negative territory but moved higher in early deals. In addition, Nestle provided strong support while Adecco was under pressure after mixed fourth-quarter results.

The Swiss Market Index closed 16.8 points or 0.19% higher at 8,798.71 with 14 gainers, 10 losers and 1 stock unchanged. The Swiss Performance Index added 16.48 points or 0.24% to 6,977.27.

/...

[RUMMYisFROSTED]

7. 1656 and 22.

The number of points the SM has risen in 6 years and the avg. per month.

[UpInArms]

9. dollar watch

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

Last trade 83.80 Change +0.03 (+0.04%)

US Dollar - 100 Percent Chance of a Rate Cut by October?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar___100_Percent_1172788807525.html

US Dollar - The US dollar strengthened today, but if you ask anyone trading the currency market, they will tell you that it certainly doesn’t feel that way. The market’s primary focus is on the Japanese Yen, which has once against skyrocketed against everything in sight and reigniting talk of carry trade liquidation in the process. The Yen is now trading at a fresh 10 week high against the US dollar. The Dow, after having opened down over 200 points, staged a very impressive intraday rally that took it into positive territory, but for no more than a blink of eye before the index turned back into the red. For those able to peel themselves away from the big moves in the Yen, they would have noticed that the dollar strengthened against every other major currency pair. The most meaningful appreciation was against the New Zealand dollar, Australian dollar and the Euro. A dose of stronger US economic data has helped to stabilize the dollar and delay the market’s expectations for an interest rate cut by the Federal Reserve. Right now Fed Fund futures are pricing in a 100 percent chance of a quarter of a point rate cut by October. Earlier this morning, the market was showing a 100 percent chance of a cut by August. To the surprise of the market, personal income, personal spending, personal consumption expenditures and the ISM manufacturing survey all came out stronger than expected this morning. Both the Chicago PMI and Philly Fed index failed to correctly forecast the directional improvement in the ISM. On balance, these reports indicate that inflation is ticking higher and that certain parts of the US economy may not be weakening as significantly as some people may have initially thought. Although we could see a rebound in both the Dow and USD/JPY tomorrow given the lack of any meaningful US data, it will be difficult for either to recapture the losses that they have incurred this week. In fact, the longer term trend in both could still be downwards. The only piece of US data on the calendar is the final University of Michigan Consumer Confidence survey for the month of February. The problems that that the market was concerned about on Tuesday are still the problems that they will have to face in the weeks or months to come. The sub-prime lending market is at a tipping point, which will keep US investors very cautious.

...more...

Japanese Yen Takes Aim on 117.00 While Cable Takes Out 1.9500

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Japanese_Yen_Takes_Aim_on_1172837445321.html

With this week essentially over data-wise, Euro traded along quietly for much of the Asian and early European sessions as EURUSD hovered above 1.3150. However, the entrance of London traders into the market brought another round of carry trade unwinding with the GBPJPY cross plunging from the 230.50 level towards the 1/8 low of 228.05. The price action fed into the majors as well, sending Cable down to break through the psychologically important 1.9500 figure and leading USDJPY to barrel towards 117.00.

Data out of Japan didn’t necessarily warrant a rally for the national currency, as Tokyo CPI contracted 0.2% during February, leaving both annual headline and core CPI flat at 0.0% despite claims from Japanese Economics Minister Hiroko Ota that “the end of deflation remains in sight.” Meanwhile, labor cash earnings slumped 1.4% in January – the sharpest decline in two and half years – despite the continuous tightening of the job market to an eight year low of 4.0%. On the flip side, overall household spending accelerated for the first time since December 2005 at a rate of 0.6%, though the statistics bureau said that unusually warm temperatures this year may have made the gain a one-off event. Nevertheless, with price growth remaining dangerously close to deflation, it is highly unlikely the Bank of Japan will be able even consider further rate normalization until much later in the year.

Out of the Euro-zone, retail sales in Germany plunged more than expected in January as the Chancellor Angela Merkel’s VAT hike to 19% from 16% took its toll on consumers. Data out of the country has started to lead broader Euro-zone economic reports lower, as manufacturing and retail PMI have both been weighed down by German figures. With European Central Bank hawks still concerned about inflation risks later in the year, the central bank is still widely expected to raised rates next week to 3.75%.

The US calendar is relatively thin compared the rest of the week, with the final reading of the University of Michigan confidence survey the only release on tap. The figure is anticipated to be revised up to 93.5 from 93.3, but even that reading would be down sharply from January’s reading of 96.9, furthering the case dip in the dollar.

...more...

[UpInArms]

15. FOREX-Yen up; Fed's Poole (the Tool) says carry trade not disruptive

http://today.reuters.com/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-03-02T135555Z_01_NYH000395_RTRIDST_0_MARKETS-FOREX-UPDATE-6-URGENT.XML

NEW YORK, March 2 (Reuters) - The yen hit a fresh 11-week high against the dollar on Friday after St Louis Federal Reserve President William Poole said he saw nothing disruptive in carry trades.

The dollar was down 0.65 percent at 116.85 yen <JPY=> after dipping as low as 116.75 yen on electronic broking system EBS, its lowest since mid-December.

[UpInArms]

16. FOREX-Yen stabilises after frantic carry unwinding

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=usDollarRpt&storyID=2007-03-02T085404Z_01_L02139316_RTRIDST_0_MARKETS-FOREX-UPDATE-3.XML

LONDON, March 2 (Reuters) - The yen stabilised off the previous day's 2007 high against the dollar on Friday, keeping most of this week's spectacular gains as investors remained nervous over high-risk carry trades.

The yen is on track for its biggest weekly gain since late 2005 after a jump in risk aversion which triggered a global stock market sell-off prompted investors to cut back risk and buy back low-yielding currencies.

But after a frantic few days investors are taking a pause. Moreover, a better-than-expected U.S. manufacturing survey on Thursday suggested the world's biggest economy is not in as bad a shape as many had thought, helping the dollar rebound a bit.

Some analysts say investor risk aversion has risen so much the dollar was actually enjoying some safe-haven flows.

"It looks like carry trade unwinding is slowing so people who had long yen are taking profits into the weekend. The dollar is holding up still very well thanks to dollar-positive risk aversion," said Adam Myers, currency strategist at UBS.

"We should see the yen will continue to strengthen into next week, because we have got so many people who are short yen. The risk aversion story is affecting the carry environment."

...more...

[54anickel]

37. Today's Pfenning - All about the Yen...

http://www.dailypfennig.com/

snip>

So what has made the markets finally take note of just how undervalued this currency is? Some of the move has been due to the unwinding of the carry trade. Despite Japan's top currency officials attempt to downplay the impact of the carry trade, hedge funds and others have been leveraging up by borrowing the yen and buying higher yielding currencies for the past few years. This trade has become so popular that there are actually ETFs which have been developed to take advantage of the carry. The massive amounts of money which have been wagered here are what have kept the value of the yen down for the last few years. But, as Chuck and I have been warning everyone, the more money placed into this trade, the bigger the move up for the yen once it is unwound.

Need proof that the recent move is at least partially due to the carry trade? The Japanese yen is the best-performing currency in the world this week. The South African Rand and the New Zealand dollar, higher yielding currencies which have benefited from the carry trade, are the two worst performers in the week. Another sign the carry trade is unwinding: The Swiss franc, another currency that is used to fund the carry trades is headed for its fifth straight week of gains vs. the US$. There have been massive bets placed by currency traders shorting the yen and franc. While the carry trade may not be totally dead, I have got to believe this recent move is only the beginning.

But the recent rally in the yen wasn't solely due to a reversal of the carry trade. Japan's household spending unexpectedly rose for the first time in more than a year, suggesting the nation's consumers may have recovered an appetite for shopping. Spending climbed .6 percent in January, the statistics bureau said in Tokyo today. The jobless rate was unchanged at 4% the bureau said separately. Consumer spending is picking up, and with employment remaining relatively strong, we could see Japanese companies start to agree to raise wages later this year.

Also helping the yen, Eisuke Sakakibara, the former "Mr. Yen" at Japan's Ministry of Finance, said it's possible the central bank will raise interest rates in May rather than wait until parliamentary elections are held in July. When the Diet is in session it's easier to raise rates because any criticism of monetary policy by the ruling Liberal Democratic Party will be countered by the opposition, Sakakibara said in a speech in Tokyo. While I like Mr. Yen's hawkish stance, I don't think the BOJ is going to rush to raise rates again in May as recent inflation data released in Japan shows prices are stagnant.

snip>

And moving on to the US, the huge amount of data released yesterday was largely negative for the dollar. Both personal income and spending increased slightly in January, and the PCE numbers showed inflation is not increasing as quickly as previously thought. Initial jobless claims rose and construction spending fell. Rounding out the data to the positive side, the ISM manufacturing index was higher than expected and the House Price index increased.

Today we only get the Michigan Consumer confidence number which is expected to be down slightly. Both Fed Chairman Bernanke and St. Louis Fed President William Poole will be speaking this morning, so we will be watching for any market moving quotes. I would expect both of them to lend some support to the dollar with speeches saying the US economy is strong enough to keep borrowing costs on hold (no need for a cut in rates).

more...

[Ghost Dog]

64. Gold falls 2 pct as shaky global stock markets weigh on the metal

http://www.forbes.com/markets/feeds/afx/2007/03/02/afx3479363.html

LONDON (AFX) - Gold lost some 2 pct of its value, falling below the critical 650 usd mark to its lowest in nearly 3 weeks, as the China-led global equities sell-off continued to dampen market sentiment.

At 3.15 pm, spot gold was quoted at 653.30 usd an ounce, down sharply from the 662.20 usd level seen in late New York trades yesterday. Earlier, the precious metal fell to 648.75 usd, its lowest point since Feb 8.

The Chinese stock market plunged 9 pct Tuesday, its biggest one-day fall in a decade. The falls sparked a global market sell-off and while most markets have since stablised, investors have become more risk averse.

The resulting flight to liquidity has also driven many traders to liquidate profitable gold positions in order to cover losses in other markets.

Added to this, the recent volatility in gold seems to have stripped it of its traditional safe haven appeal, with investors instead lumping it in the ''just another risky asset' category', said Kitco analyst Jon Nadler.

Safe have(n) status aside, the metal is also under pressure from the unwinding of the so called yen carry trade, which is discouraging yen-funded investment in gold.

/...

[Ghost Dog]

65. Losses in gold, silver futures sharpen in afternoon dealings

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B59CEDE1E%2D2DB9%2D4E71%2D949B%2DFE2982B65F50%7D&siteid=mktw&dist=nbk
Last Update: 12:50 PM ET Mar 2, 2007

SAN FRANCISCO (MarketWatch) -- April gold dropped as much as $22.60 to touch $642.50 an ounce in New York, the contract's weakest intraday level since Jan. 22. May silver fell to a six-week low of $12.91 an ounce and was last down 5.2%, or 71 cents, at $12.94. "There had to have been some inherent structural weakness in bullion at play here in addition to the oft-used 'quest for liquidity' excuse we keep hearing," said Jon Nadler, an analyst at Kitco. "Yes, it is oversold, but many other assets may soon in the same boat."

[Ghost Dog]

68. Gold battered by stock market worries

http://today.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-03-02T155007Z_01_L02460246_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-4.XML
Fri Mar 2, 2007 3:50 PM GMT

LONDON, March 2 (Reuters) - The global flight from risk knocked precious metals again on Friday, with gold falling below $650 an ounce for the first time in three weeks as shaky global stock markets prompted investors to reduce positions in commodities.

Investors often buy gold as a safe bet when financial markets look unstable, but investors are keen to unload the metal after plunges in global equity markets this week, analysts said.

Many investment funds were seen to have bought commodities, including gold, over the past month with the proceeds from stocks as Wall Street reached record highs last month.

"Gold is not glittering any longer as a safe haven," Dresdner Kleinwort analysts said in a market report.

"Commodities in general are perceived as risky assets...This asset class is just sold to reduce portfolio risk and to take profits in order to compensate losses suffered in other assets like equities," the bank said.

"Thus, as long as unwinding of yen carry trades continues and equity prices head south, gold and silver remain in the wake of bear markets."

/...
...In other words, selling precious commodities in order to cover highly-leveraged but precarious positions in the stock markets...?

[Ghost Dog]

70. Gold hits 6-week low on widespread selling

http://money.cnn.com/2007/03/02/markets/gold.reut/index.htm?section=money_markets
Silver futures sink even more at 3.5 percent, while platinum drops nearly 3 percent.
March 2 2007: 12:22 PM EST

NEW YORK (Reuters) -- Jitters in the financial markets pummeled gold futures early on Friday, following sharp losses in the previous two sessions, as funds continued to unwind positions in precious metals because of the global equities sell-off.

Gold is often used by investors as a safe haven in times of financial uncertainties, but analysts said that this time some funds opted for liquidity and to pay off stock losses as a wave of risk aversion swept through global markets this week.

/...

[Buttercup McToots]

77. Gold Ouch!

Damn, that smarts...
Market down another 100...
CNBC sez white house is watching...
Sooo who is shakin` the bean basket?

[Ghost Dog]

69. Carry trade unwind takes sterling to fresh lows

http://today.reuters.co.uk/news/articleinvesting.aspx?type=ukPoundRpt&storyID=2007-03-02T160151Z_01_L02371627_RTRIDST_0_MARKETS-STERLING-CLOSE.XML
Fri Mar 2, 2007 4:01 PM GMT

LONDON, March 2 (Reuters) - Sterling hit 2-1/2 month lows against the yen and euro on Friday, buckling under pressure from investors unwinding long positions in relatively high yielding currencies.

The pound also fell sharply against the dollar, in spill-over selling from this week's major yen rally as investors rushed to cut exposure to yield-dependent carry trades.

"The selling today is mainly down to unwinding of sterling/yen which has affected selling across the board and broken a key resistance level on euro/sterling," Standard Chartered currency strategist Marios Maratheftis said.

By 1550 GMT, the pound was down 1.25 percent on the day at 227.63 yen <GBPJPY=R>, its lowest since mid-December. Sterling fell 0.74 percent to $1.9441 <GBP=> and hit a 2-1/2 month low of 67.86 pence <EURGBP=>.

Reflecting its broad weakness, sterling's trade-weighted index fell to match its December low of 103.50 <=GBP>.

"From a fundamental perspective it seems that sterling has been lumped in with the higher yielders -- sterling today at least is getting hit more acutely than others as it has also given up ground against the Australian dollar," Calyon currency strategist Daragh Maher said.

British factory activity and mortgage approvals data on Thursday came in stronger than expected, bolstering the case for a further inflation-busting rate rise. But analysts said that this was unlikely to happen at this month's Bank of England meeting next Thursday due to mixed economic data in recent weeks.

/...

[Ghost Dog]

71. Swiss Franc Strong On Friday Against European And American Rivals

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070302\ACQRTT200703021335RTTRADERUSEQUITY_0783.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD
&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - On Friday, the Swiss franc traded strongly against its European and American counterparts. Meanwhile, the franc continued to lose ground against the yen. The currency traded with little economic news from the area.

The Swiss franc gained against the dollar through trading on Friday. The advance took the currency to a mark of 1.2161. In general, the franc is near a two month high in trading with the dollar.

After seeing little movement overnight, the Swiss franc rose sharply against its British counterpart. The advance brought the franc to the 2.3650 mark. On the whole, the franc is at a two and a half month high against the sterling.

The Swiss franc saw strength in trading against the euro on Friday. The climb saw the currency reach the 1.6047 mark in the afternoon. Generally, the Swiss franc is trading near a two month high against the euro.

The Swiss franc continued to see weakness against the yen on Friday. The fall took the currency to a mark of 95.83 in mid-morning action and remained near that mark into the afternoon. Overall, the franc is at a three month low in trading with the yen.

/.

[Ghost Dog]

72. Euro Strong Against Dollar

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070302\ACQRTT200703021343RTTRADERUSEQUITY_0789.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD
&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - The euro rose steadily against the dollar in trading on Friday. The advance brought the currency to a mark of 1.3196. On the whole, the euro is near a two month high.

/.

[UpInArms]

10. Insider Trading Ring: four investment banks and a web of hedge funds, day traders, lawyers and even

http://www.nytimes.com/2007/03/02/business/02insider.html?ei=5088&en=92e747bcc00e715f&ex=1330491600&partner=rssnyt&emc=rss&pagewanted=all

(free registration or try www.bugmenot.com)

excerpt:

It ended yesterday with federal authorities saying that they had exposed one of the most far-reaching insider trading schemes on Wall Street in decades, involving four investment banks and a web of hedge funds, day traders, lawyers and even a few supervisors, who upon discovering evidence of insider trading, blackmailed the traders to keep quiet about it.

Thirteen people were accused yesterday of taking part in the trading ring, including a former Morgan Stanley compliance official, a senior UBS research executive, three employees from Bear Stearns and a Bank of America employee.

<snip>

The tactics, however, were all too familiar: Wall Street executives tipping hedge fund traders about potential upgrades or downgrades of stocks, information sure to move a stock’s price; leaking information about pending mergers and acquisitions, and taking kickbacks to get access to hot deals. In the middle, authorities say, was a hedge fund manager looking for an edge.

Federal authorities say that in 2001, Mitchel S. Guttenberg, a 41-year-old executive director in the stock research department of UBS, met a friend, Erik R. Franklin, then a hedge fund manager at Bear Stearns at the Oyster Bar. Mr. Guttenberg owed Mr. Franklin $25,000 and proposed paying that debt with information about stock upgrades and downgrades. He was a member of the firm’s investment review committee, which reviewed and approved analyst recommendations.

Mr. Guttenberg provided hundreds of tips to Mr. Franklin about rating changes so that he could make quick trades in his hedge fund at Bear Stearns, Lyford Cay Capital. The two agreed to share the after-tax profits after the debt between them was settled. They exchanged cash at arranged meeting places — echoes of the Boesky case — and bought disposable cellphones and created codes to communicate with one another.



...more...

[UpInArms]

62. Insider-Trading Ring Bust May Fuel Hedge-Fund Concern (Update2)

http://www.bloomberg.com/apps/news?pid=20601103&sid=a.yj39nr8lB4&refer=us

March 2 (Bloomberg) -- The U.S. government's accusations that Morgan Stanley, UBS AG and Bear Stearns Cos. employees were central figures in an insider-trading ring illustrate why regulators and lawmakers are suspicious of Wall Street's relationship with hedge funds.

Prosecutors in New York and Washington yesterday laid criminal charges against 13 people, claiming that an executive at UBS and a former compliance lawyer at Morgan Stanley tipped off hedge-fund traders and brokers to new analyst ratings and secret takeover talks. Bear Stearns was home to at least four professionals who traded on information leaked from inside the two firms, according to a complaint filed by the Securities and Exchange Commission.

``Incidents like this strengthen the hands of those who are urging greater scrutiny of hedge-fund activities and their sources of information,'' said David Becker, a former SEC general counsel now in private practice at Cleary Gottlieb Steen & Hamilton LLP in Washington.

Legislators such as Senator Arlen Specter, the Pennsylvania Republican, want market watchdogs to take action amid mounting evidence of rampant insider trading. At least two studies show that stocks and derivatives regularly rise ahead of takeovers, and in the past week trading of options to buy shares of TXU Corp. and Hyperion Solutions Corp. surged in advance of announcements that they agreed to be acquired.

Incentive to Trade

Hedge funds are private pools of capital that allow managers to participate substantially in gains on the money invested. That pay structure creates an incentive for employees to trade in non- public information. Hedge-fund managers also are under pressure to boost returns that since 2000 have averaged half the industry's gains in the 1990s.

...more...

[UpInArms]

11. Greenscum was paid $150,000 to rattle the markets

http://www.nytimes.com/2007/03/02/business/02greenspan.html?ex=1330491600&en=7a4289d52b24c994&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, March 1 — They are marketed as “intimate conversations” with Alan Greenspan, and groups pay about $150,000 to hear his economic outlook.

But on Thursday, for the second time this week, these private chats went public, jolting financial markets around the world and upstaging Ben S. Bernanke, Mr. Greenspan’s successor as chairman of the Federal Reserve.

First on Monday and then again on Thursday, Mr. Greenspan upset stock markets merely by uttering the word “recession” and saying that one might but probably would not occur by the end of this year.

Few people have the power to move markets like a Fed chairman. Except, maybe, a retired Fed chairman. Mr. Greenspan’s use of the R-word helped push down the Dow Jones industrial average by about 200 points on Thursday morning, though shares later recovered and closed only slightly lower for the day.

The tone if not the substance of the comments seemed to conflict with, and even undermine, Mr. Bernanke’s soothing message on Wednesday that the economy still seemed poised for “moderate” growth and perhaps even a slight acceleration later this year.

It also raised several questions. Did the old Fed chairman, who has been hailed as the maestro of the economy, disagree with the new Fed chairman? For a man who had worked assiduously to keep markets calm while he ran the Fed, why was Mr. Greenspan now using an incendiary word-bomb? At almost 81, did he secretly miss the limelight? Or was he trying to build up advance interest in his new book?

...more...

So why is this washed-up-partisan-hack allowed out of his crib?

[texpatriot2004]

12. K & R nm

[UpInArms]

13. Before the Bell: Risk aversion rattles futures

Nasdaq 100 futures down 23.75 at 1,734.00
8:26 AM ET, Mar 02, 2007 - 36 minutes ago

21. S&P 500 futures down 9.90 at 1,395.00
8:26 AM ET, Mar 02, 2007 - 37 minutes ago

22. Dow industrials down 84 pts at 12,168
8:25 AM ET, Mar 02, 2007 - 38 minutes ago

http://www.reuters.com/news/globalcoverage/markets?src=030207_0730_FEATURES_before_the_bell

Stock index futures fell on Friday, pointing to a weaker market open, as investors worried about the increasing risk aversion pervading global financial markets.

Futures fell in tandem with European stocks, whose decline was tied to another rise in the yen. Investors have seen the surging Japanese currency as a signal that popular carry trades, which are financed by borrowing yen, are being unwound.

Debate about the economy's health has sharpened since the stock market's nose dive on Tuesday. St. Louis Federal Reserve Bank President William Poole on Friday dismissed fears that the economy was heading into a recession. Former Fed Chairman Alan Greenspan has said it is possible -- but not probable -- that a recession could occur by the end of the year.

S&P 500 futures fell 8.10 points, Dow Jones industrial average futures dropped 65 points and Nasdaq 100 futures shed 17.75 points.

"There's a lot of nervousness in the world, and I don't see that going away tomorrow. The economic news on manufacturing stopped the rout yesterday, but we're not out of the woods yet," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

...more...

[Danascot]

14. Money as Debt Video

Nice primer on creation of money supply and related issues, recommended on another DU thread.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x321424

http://video.google.de/videoplay?docid=-9050474362583451279

[Roland99]

23. You should maybe make your own thread for that one, too!

:)

[AnneD]

51. I've been listening to the series....

it's a good primer and deserves it's own space. I bookmarked it. :thumbsup:

[UpInArms]

17. pre-opening blather

09:00 am : S&P futures vs fair value: -7.3. Nasdaq futures vs fair value: -16.5. Futures trade is off its worst levels but still point to a sharply lower open for stocks. St. Louis Fed President Poole dismissing fears of a recession, saying he sees nothing in carry trades that is disruptive at this stage and that stock market valuation "does not seem to be elevated" at this time appear to be contributing to the bounce off early lows. Nonetheless, the market's "sell first, think later" mentality continues to overshadow the fact that market fundamentals have not changed and that valuations on stocks are actually quite good now.

08:30 am : S&P futures vs fair value: -10.2. Nasdaq futures vs fair value: -23.0. Early indications continue to deteriorate, suggesting yesterday's modest losses will be met with a much more aggressive day of selling. With Tuesday's sell-off shifting the balance of sentiment and market focus to everything negative, the implications of what a mass exodus of speculative buying interest may have on the rest of the market is making increasingly risk-averse investors even more frightened about the much talked about market correction. The Dow, S&P 500 and Nasdaq are currently down 3.3%, 3.6% and 3.7%, respectively, already this week.

08:00 am : S&P futures vs fair value: -4.2. Nasdaq futures vs fair value: -11.5. In similar fashion to yesterday's pre-market action, futures have again spiked below fair value in conjunction with a rally in the Japanese yen. The correlation continues to raise concerns about the ramifications of yen carry trades being unwound and is contributing to the market's negative disposition.

Ongoing worries about sub-prime mortgage lending spreading into the broader economy are also acting as an early overhang, especially on the heels of Countrywide Financial (CFC) reporting in an SEC filing that delinquencies surged 19% last year.

06:11 am : S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -2.8.

06:10 am : FTSE...6129.50...+13.50...+0.2%. DAX...6623.59...-16.65...-0.3%.

06:10 am : Nikkei...17217.93...-235.58...-1.4%. Hang Seng...19442.01...+95.41...+0.5%.

[humus]

18. gross national product

Our gross national product ... if we should judge America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.
"Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans."

Wendell Berry

[UpInArms]

19. Welcome to DU and the SMW, humus!

:hi:

[Ghost Dog]

42. Hiya!

:hi:

I agree very much with your point. Although "intelligence of (y)our public debate or the integrity of (y)our public officials" may be, on the evidence, on occasion, stretching things a bit?

See eg. also in DU today:

US offers Taiwan huge missile package

Afghan opium 'hits record output' (BBC)

[AnneD]

52. Pulling up the rear of the Welcome Wagon....

Howdy :hi:

[donkeyotay]

58. Then I must be the caboose

:hi:

[UpInArms]

21. 9:36 EST red numbers

Dow 12,183.63 50.71 (0.41%)
Nasdaq 2,391.47 12.74 (0.53%)
S&P 500 1,397.00 6.17 (0.44%)
10-Yr Bond 4.524% 0.032

NYSE Volume 110,074,000
Nasdaq Volume 96,304,000

[Roland99]

22. Wanna hear about the REALLY RED numbers? Watch 60 Minutes this Sunday!!!!!!!!!!

Comptroller David Walker to speak with Steve Kroft this Sunday on CBS' 60 Minutes about the financial disaster that WILL happen if something isn't done re: the tens of trillions in debt facing the US by Medicare/SS obligations.

Here's a thread I created in GD: P with more info:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=3140740&mesg_id=3140740

[UpInArms]

25. the transfer of wealth from the average person in this country

to the top 1% has been astounding.

The BFEE "fodder unit" theory in action - privatizing the profits and socializing the losses.

[Roland99]

33. Just like Mogambo mentioned a few days ago. That was one of the best Mogambo articles I've read.

How the markets are sustaining themselves from the rich and very-well-off investing more and more instead of money going to the average Joe where it would actually be put to use. Once the rich and institutions' source of funds to invest dries up (tax cuts repealed, company profits fall, etc.), there will be nothing left to support the markets (other than an overheated printing press at the Fed)

[Tace]

40. "When the Ghost of Rothbard Flushes the Big Economic Toilet." (Mogambo)

from Wed's Mogambo:

BREAKING: Earthlings Are Officially The Most Stupid Race Of Beings In This Galaxy (Mogambo Guru)

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

snip

And thus! Thus! Thus, all of our very lives are depending, totally and completely, on those markets continuing to go up, literally forever! Gaaah! If they don't, then not only is everybody's retirement wiped out, but the economy of the USA, and the USA itself, will die a horrible economic death. Gaaaaaaaaaah!!

Well, you don’t have to believe me, and I would have no respect for you if you did because even I don't believe half the crap I say, but perhaps you will be more convinced when I tell you that reader Bill L. sent what he characterizes as, "When the Ghost of Rothbard Flushes the Big Economic Toilet." Mr. Murray Rothbard, legendary big thinker, writer and real heavyweight in the Austrian school of economics, is credited with saying, "The evolution of synchronized easy money world wide will be first increasing finance/stock bubbles and then, when these let go, a great destruction of paper wealth in a gigantic finance/stock crashes. These will likely be synchronized world wide. That destruction of paper wealth will be highly deflationary. First, as stock prices drop, for example, the valuations will drop like a stone, and trillions of dollars of paper money will literally disappear like smoke."

To prevent that from happening now, the Federal Reserve and the government, who have willingly painted themselves into this terrifying corner, now realize that it is now entirely incumbent upon them to frantically manipulate fiscal and monetary policy with desperate, reckless abandon, so that somebody, anybody, everybody is given access to more and more money from the Federal Reserve, to be used to keep bidding the prices of stocks and bonds up, and up, and up! And houses, too! It's just that simple!

So to whom to give the money? If you give the money to the poor, see, they will spend it on food and imported consumer items, worsening both the inflation in food prices and the trade deficit.

But (and pay attention here, as this is the crux of the matter), give the money to the rich (!), who are already wasting huge fortunes of cash throwing outrageous parties with drunken, giggly Hollywood starlets running about willy-nilly, having food fights with caviar, and who have so damned much money already that the only thing that they CAN do with more money (with a minimum of hassle) is give it to their financial advisors to invest it in something, like stocks and bonds and bigger houses.

So, in light of all of this, as Bill W.'s girlfriend used to say, "Above all, remain calm. Help will arrive soon."

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=1353&Itemid=10029

[Roland99]

41. That's the guy!

[KoKo]

46. Mogambo also doesn't believe in "Social Programs." He rails on about

"Welfare State." He's also a "Gold Bug" (which is fine and I enjoy reading him, but don't go with him on getting rid of social programs for Americans)

I'll be willing to bet that Walker is pushing for Privatization of Social Security as the answer to all our financial woes, instead of raising taxes the wealthy which would do alot to put revenue back in the coffers as well as curbing financing for More War.

It should be an interesting watch....

[Roland99]

47. I have an idea I've been molding with someone else re: Medicare....

I hope to have things solidified into a readable and understandable proposal in a week or so.

I'll be sure to let everyone know when I post a thread on it. ;)

[KoKo]

50. Molding?

:shrug:

[Roland99]

59. brainstorming.

Or maybe it's more like brainfarting ;)

[AnneD]

126. Is that what is is...

I've been telling folks I am going through mental pause.

[Roland99]

129. .

:rofl:

[AnneD]

39. Morning Marketeers...

:donut: and lurkers. Well speaking of BFEE and fodder units-Pickles will be in H-town for a fodder unit photo op at a school here. It is the birthday of that subversive soul, better known as Dr. Seuss-no pet goats here.

And speaking of pet goats and the transfer of wealth (great segway if I do say so myself) the Houston Livestock Show and Rodeo has it's first full weekend. All but 2 (out of 252) Texas county FFAs participate. This weekend they start the Jr. cattle judging. They give away over 5 million-yes million in scholarships for kids across the state. The brass ring is the Grand Champion Steer Auction-but the other Grand Champion auctions fetch the kids plenty of scholarships. I guess it really is our equivalent of a beauty pageant. I will be going out there this weekend I hope, I love to watch the kids-they get so excited, esp. at the auctions. These are the good kids that work hard before and after school, go to school, participate in activities, and will one day be good workers and leaders in all fields. It's nice to see the good kids win every now and again.


Happy hunting and watch out for the bears.

[Ghost Dog]

44. Segue, AnneD, Segue (although similarly pronounced)

(The Segway is that thing the pet-goat reader famously fell off, along with, often, his bike). - I know you don't mind me remarking, but sometimes your spelling provokes in me serious laughing fits - always an excellent thing! :-)

Methinks you've been listening to, for example, Indian musicians discussing their fine art...

Segue
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Segue

This article is about the performance direction. For the two-wheeled transportation device, see Segway PT.

In music, segue (pronounced /ˈsɛgweɪ/) is a direction to the performer. It means continue (the next section) without a pause. It comes from the Italian "it follows". The term attacca is also used in classical music.

For written music it therefore implies a transition from one section to the next without any break. In improvisation it is often used for transitions created as a part of the performance, leading from one area to another.

For example, in live performance the Grateful Dead would often splice together several songs, as part of their jamming style. A striking example occurs on the Live/Dead album, with the transition from "St. Stephen" to "The Eleven" requiring a seamless change of time signature. Green Day's Songs Jesus of Suburbia and Homecoming are both examples of five minisongs segued together.

In recorded music a segue is a seamless transition between one song and another, as for instance between the songs "Sgt Pepper's Lonely Hearts Club Band" and "With a Little Help from My Friends" on The Beatles' album Sgt. Pepper's Lonely Hearts Club Band. In many Pink Floyd albums, particularly The Dark Side of the Moon or Wish You Were Here, many songs blend into each other without a break. A particular example is Time/Breathe (Reprise), with Breathe (Reprise) being a hidden track. Also all the songs on Side 2 of Dark Side of the Moon segue into each other. The first four tracks of Daft Punk's album Discovery all segue together as well. A segue is also the seamless matching of beats in recorded music as performed by a DJ in a nightclub.

In journalism, a segue is a method of smoothly transitioning from one topic to another. A segue allows the host or writer to naturally proceed to another topic without jarring the audience. A good segue makes the subject change seem like a natural extension of the discussion.

/...

[AnneD]

48. Thanks

I went to a spell check without results so I did it the old fashioned way....'foniks'. Next to puns and homophones, segues are my favorite 'word play'. When I helped lay out the school news paper-I love slipping randy headlines in at every opportunity-innocently of course :evilgrin:. My journalism teacher was a sly one though and caught quite a few of them.

Edited to add...that would be a good spelling bee word-we do spelling bees in my family.

[Ghost Dog]

81. Innocent? Who's innocent?

:evilgrin:

[burf]

38. I wonder

if they will include all the corporate pension plans that have been transfered to the Pension Guarantee Fund. Corporations such as Northwest and Delta Airlines, Delphi Automotive and others have simply given their pension obligations to the Federal Government. The taxpayers and those vested in the pensions wind up holding the bag while the corporate fatcats keep getting fatter.

It's funny how we never see these upcoming obligations touted when we see economic numbers. Or maybe I'm just missing them in the midst of all the talk of the roaring (cough, cough) economy.

Roland, Ozy, 54 and all you other contributors, you are doing a heck of a job! Thanks for all you do.

[donkeyotay]

61. Every time a corporation declares bankruptcy, a pensioner gets screwed

As an example, let's look to Dick Cheney who, as CEO of Halliburton, took over Dresser Industries. Pensions were reduced by 25 percent as part of the package of restoring this fine company to good health. CEOs get more, pensioners get less. It's an economic moving sidewalk, a transfer of wealth.

Hi, burf! I mostly lurk, and I agree that the regulars in this thread do a heck of a job.

[UpInArms]

29. 10.:06 EST updated with blather - recovering nicely

Dow 12,217.20 17.14 (0.14%)
Nasdaq 2,397.70 6.51 (0.27%)
S&P 500 1,399.58 3.59 (0.26%)
10-Yr Bond 4.538% 0.018

NYSE Volume 451,336,000
Nasdaq Volume 315,646,000

(adding that blather on edit :blush: )

10:00 am : The indices extend their reach to the downside as all 10 sectors slipp further into negative territory. Utilities, the only sector yesterday to post a gain, is pacing the way lower today with a 0.8% decline.

The absence of leadership from even more influential areas like Financials, Technology and Industrials are also preventing the bulls from recouping losses during what so far is likely be the worst week for the S&P 500 since April 2005. DJ30 -41.65 NASDAQ -11.46 SP500 -5.82 NASDAQ Dec/Adv/Vol 1506/885/200 mln NYSE Dec/Adv/Vol 1790/723/82 mln

09:40 am : As expected, stocks open on a downbeat note for a second straight day but well off the lows futures indications were suggesting about an hour ago. With the market now overly pessimistic, as evidenced by a growing sense of risk aversion ever since Tuesday's global sell-off, continued fears about carry-trade unwinding and sub-prime lending woes are again underpinning a negative tone.

Fortunately, the market is also sensitive to positive news, and encouraging remarks from St. Louis Fed President Poole this morning have helped to alleviate what was shaping up to be an even bigger disappointment for the bulls. After earlier dismissing fears of a recession and saying he sees nothing in carry trades that is disruptive at this stage, Poole has also lent some reassurance by recently saying there is "no pressing need" for action after the recent sell-off. DJ30 -26.01 NASDAQ -7.85 SP500 -4.10 NASDAQ Vol 112 mln NYSE Vol 68 mln

[54anickel]

43. Global Market Brief: China's Engineered Drop

http://www.investorsinsight.com/otb_va_print.aspx?EditionID=479

China's Shanghai Composite Index tumbled 8.84 percent Feb. 27, its largest fall in a decade. Its sister index, the Shenzhen Composite Index, fell 8.54 percent. The size of the drop in China is not significant in and of itself. On a number of occasions during the past year, the Shanghai Stock Exchange has experienced 5 percent plus daily reductions, and it has already boomed and busted once this decade.

But that hardly means the development is insignificant. The fall is important both for how it happened and what it triggered.

How it Happened

This was an engineered drop.

The Chinese government has become increasingly concerned about levels of investment in its economy or, more accurately, the sheer amount of money that is chasing projects. State firms with limitless access to subsidized capital from state banks have used that access to launch thousands of nonprofitable firms. This glut in "investment" money drives up the cost of commodities and adds industrial capacity without actually producing anything of much use, making life more difficult for the average Chinese and unduly harming relations with foreign powers that face a glut of otherwise noncompetitive Chinese goods.

This penchant for overinvestment has now spread to the stock market in two ways. First, the same politically connected government officials who started dud companies are taking out loans to buy shares, or are using shares they already hold as collateral for new loans. Second, ordinary Chinese citizens have started borrowing -- sometimes against their homes -- in order to play the market. In January, the number of total traders on the Chinese exchanges grew by 1.38 million, an increase of 134 percent from a month earlier, while stock turnover was up 700 percent from a year earlier.

The net result is an absurd stock surge with no basis in fundamentals. At present, some Chinese banks now have price-to-earnings ratios higher than financial behemoths such as Deutsche Bank and Chase, despite deplorable management and a history of highly questionable lending policies.

snip>

What it Triggered

more...

[Ghost Dog]

45. Yes. This is considered, relevant analysis

(and refers back to Ozy's question about the US catching China's cold, the other day) Expect increasng volatility in the near term:

...

For the first time, China has become the trendsetter in the global stock community. Normally, the U.S. exchanges -- especially the S&P 500 index and the Dow Jones Industrial Average -- set the tone for global trading patterns. Not on Feb. 27. This time, China led Asia to a wretched day. The wider the contagion spread, the more margin calls were forced to be called in. (If an account's value falls below a minimum required level, the broker will issue a margin call for the account holder to either deposit more cash or sell securities to fix the problem.)

As the drops snowballed, Europe filed in dutifully behind, mixing the China malaise with its own nervousness about overextended markets in Central Europe and the former Soviet Union. By the time markets opened in the United States -- where investors already were fretting about the subprime mortgage markets -- the only question remaining was how far U.S. markets would descend. In the end, the Dow dropped by the most since the fall triggered by the 9/11 attacks.

So why has this not happened before now? As China's market capitalization has increased, its links to the global system have increased apace. These links have developed very quickly, and with few controls.

/...

[54anickel]

75. Another related look at China, though a bit gold-buggy around the edges....

http://www.kitco.com/ind/Wiegand/mar022007.html

snip>

After the China stock market crash and a continuous flow of negative economic news from the USA it was no surprise to us other global markets took a hit. The lesson learned here is direct market action or intervention by a government or central bank is not required to make a big mess. Simple discussions of untoward economics and possibilities are usually enough to make a spark followed inevitably by a reactionary big bang.

In this instance, as we understand it, a Chinese official made only a simple remark about potentially tightening some rules to cool inflationary aspects of the Shanghai Index. This makes sense as it has been way too hot and overbought with flagrant disregard for reasonable trading rules. Our timing in reporting and warning on this situation in Trader Tracks just a few days earlier proved auspicious. Traditional technical analysis suggests that straight-up rocket rallies are routinely followed by almost straight down corrections; of some sort. This rule does not apply to just stock markets either but also for futures, commodities, bonds and other market sectors.

As is common in technical reactions, the Shanghai Composite regained half of its losses in follow-on trading after the big sell. The USA markets, by comparison, were not quite so fortunate in that they lost a combined total, in U.S. Dollars, of more than the total valuation of all the Chinese stock markets combined. This was not exactly chicken feed. The Dow lost all of its 2007 gains from January 1 to present date.

China immediately stepped in during the aftermath to report government officials denied any intention of imposing a tax on equity investment gains. Further, there was news the government is considering qualified foreign investors be allowed to own as much as $120 billion of domestic Chinese equities which is roughly 10% of all their market capitalization. Officials elaborated on the current policy of no market intervention and suggested the selling was a normal market adjustment or correction and nothing like the stark drama it appeared to be.

Chinese banks are not permitted to make loans to buy stocks and they are checking further to examine loans that might potentially fall into this category. We noticed too, that before this major selling event transpired, the Chinese Central Bank had imposed new rules for bank capitalization requiring a 10% minimum. Once again, this is only good bank and lending policy but when taken in the context of overly frothy markets in lending and growth, negative thoughts immediately enter the minds of economic analysts and observers thinking the worst is about to appear. In this case it was created by mere out loud potentials that set the fire-kind of like yelling fire in a crowded theatre.

Another mistake in analyzing the USA market response was to blame China for instigating the wreckage in America. We say nothing was further from the truth as a whole sub-set of negative situations has been set-up for years in the States creating an imminent whack on our trading head. In our view, if China had not had an accident, we certainly would have found another one originating from New York or Washington policy. The list of nasty choices lying back in the economic and trading weeds is almost endless.

more...

[Ghost Dog]

89. Reality. Check.

"The USA markets, by comparison, were not quite so fortunate in that they lost a combined total, in U.S. Dollars, of more than the total valuation of all the Chinese stock markets combined. This was not exactly chicken feed."

...And add in all the 'theoretical' value that was lost all over the rest of the world. Ain't 'highly efficient' capitalism wonderful...

[54anickel]

106. Heh, that line caught my eye as well. Whooooo-wee!!! Thatza lotta dough!

[ozymandius]

49. lunchtime check-in

12:07
Dow 12,212.63 Down 21.71 (0.18%)
Nasdaq 2,394.76 Down 9.45 (0.39%)
S&P 500 1,399.35 Down 3.82 (0.27%)
10-Yr Bond 4.534% Down 0.022
NYSE Volume 1,367,420,000
Nasdaq Volume 956,742,000

12:00 pm : Stocks are still struggling to find their footing midday as investors remain extremely sensitive to anything that might have bearish implications.

Ever since the Shanghai sell-off on Tuesday touched a nerve of complacency and shed a light on the high degree of speculative buying interest around the world fed by unprecedented levels of liquidity, a strengthening Japanese yen has continued to raises fears about the ramifications of carry trades being unwound by hedge funds that borrowed money at low rates.

With the market now overly pessimistic, as evidenced by a growing sense of risk aversion ever since Tuesday's sell-off, whether or not there will be another rush to secure profits and/or minimize losses before things get even uglier continues to act as an overhang.

Fortunately, the market is also sensitive to positive news, and encouraging remarks from St. Louis Fed President Poole earlier have helped to alleviate what was shaping up to be an even bigger disappointment for the bulls. After initially dismissing fears of a recession and saying he sees nothing in carry trades that is disruptive at this stage, Poole has also lent some reassurance by saying there is "no pressing need" for action after the recent sell-off.

No key economic data to lend some clarity to Fed policy and a lack of influential earnings reports also leave investors without the needed catalysts to recoup some of this week's daunting declines. The Dow, S&P 500 and Nasdaq are currently down 3.5%, 3.9% and 4.2%, respectively, already this week and volume has all but dried up after three very busy days. DJ30 -28.60 NASDAQ -11.14 SP500 -4.83 NASDAQ Dec/Adv/Vol 1717/1082/890 mln NYSE Dec/Adv/Vol 1915/1182/634 mln

11:30 am : Not much has changed since the last update as recent recovery efforts run out of steam. That's not all that surprising as a lack of follow-through on the part of buyers has been a recurring theme all week as the market now places more of an emphasis on the negatives.

On a positive note, Financials and Health Care are holding their own in positive territory; but gains are modest at best while further deterioration in Energy and the lack of upside leadership from Technology continue to act as offsets. DJ30 -12.16 NASDAQ -5.95 SP500 -2.19 NASDAQ Dec/Adv/Vol 1686/1092/762 mln NYSE Dec/Adv/Vol 1876/1175/530 mln

[UpInArms]

57. 12:28 lunch must be inedible

Dow 12,182.27 52.07 (0.43%)
Nasdaq 2,382.45 21.76 (0.91%)
S&P 500 1,395.51 7.66 (0.55%)
10-Yr Bond 4.53% 0.026

NYSE Volume 1,530,828,000
Nasdaq Volume 1,068,957,000

[UpInArms]

56. Sara Lee refuses to pay life insurance benefit to family of man who worked 28 years at TC plant

http://www.record-eagle.com/2007/mar/02saralee.htm

TRAVERSE CITY — A downstairs room at Carole Bull's home is lined with service awards earned by her late husband, Terry, during his 28-year career at the Sara Lee bakery plant in Traverse City.

The plaques once were a source of family pride. They're now a symbol of the Bulls' frustration and sense of betrayal, since the company refused to pay a $33,000 life insurance benefit after Terry Bull was stricken with a heart attack and died last May just before returning to work from a family vacation.

The episode left Bull's widow and family disillusioned over the company's life insurance stance. Carole Bull finds herself saddled with her children's college tuition payments and student loans, along with a mortgage, car payments and other monthly bills.

It's a situation family members never expected to face, nor one they say Terry intentionally would have left for them.

"My husband has not died in peace,” Carole Bull said. "That is your goal in life, to make sure the other people in your life are taken care of.”

Sara Lee officials said the company is prevented from paying off Bull's life insurance policy because of binding contracts with the company's insurance firm and the employee's union, Local 81 of the Bakery, Confectionery, Tobacco Workers' and Grain Millers' International Union of American.

...more...

[Roland99]

60. At least she's legally his spouse. What if they were a same-sex couple?

:eyes:

[shireen]

63. recommend a good book about the basics of finance?

I've been trying to follow this stuff, but there's a lot about finance matters I don't understand ... like how the stock markets operate, different types of indicators and what they mean, types of stocks and bonds. Can anyone recommend a good book to help me understand this all better? Thanks!

[specimenfred1984]

67. 1970's Classic, "The Wall Street Jungle", Richard Ney

It's still pertinent today, talks a lot about corruption. John J. Murphy writes good books on charting. Linda Bradford Raschke is one of my favorites -- http://www.lbrgroup.com/index.asp

[Ghost Dog]

76. Corruption is still so much a part of the 'system', isn't it?

(lubricating the big wheels, and all that...)

[specimenfred1984]

80. That's why Ney's book is so interesting, it's like a handbook for corruption

It doesn't describe today's big bank corruption but it does describe big trading house corruption in detail. He talks about how different people manipulate price and trade off the books.

When looking at today's trading of derivatives, they make Ney's "specialists" look like small players.

[shireen]

93. thanks! Much appreciated.

I should be able to get that book really cheap from a used book store. Thanks for that link too.

[Ghost Dog]

66. UPS cancels A380 in new Airbus blow

http://uk.reuters.com/article/businessNews/idUKWLB587520070302

PARIS/BOSTON (Reuters) - Troubled Airbus suffered its second hammerblow in a week on Friday when the last cargo customer deserted the freight version of its delayed A380 superjumbo, days after the planemaker announced 10,000 job cuts.

United Parcel Service said it planned to cancel an order for 10 Airbus A380 freighters, worth approximately $3 billion (1.5 billion pounds) at list prices, joining its rival FedEx which cancelled an identical order last year.
Photo

The U.S. express firms were among buyers angered by delays of up to two years in A380 deliveries, and had been the sole takers of a superfreighter version on which Airbus had pinned hopes of challenging the Boeing 747 in global airborne trade.

UPS said it was concerned that Airbus, a unit of EADS, could not fill its orders in a timely manner.

UPS had already said it was delaying taking deliveries of its 10 aircraft beyond 2010 and reached agreement with Airbus last week to wait for the results of a review.

All that changed when EADS and Airbus said on Thursday the planemaker would temporarily stop working on the cargo version of the world's largest airliner in Toulouse, France.

"UPS had intended to complete an internal study of whether it could wait until 2012 for the aircraft, but now understands Airbus is diverting employees from the A380 freighter program to work on the passenger version of the plane," it said.

/...

[Ghost Dog]

74. Boeing could cut up to 7,000 jobs by '09

http://money.cnn.com/2007/03/02/news/companies/boeing_jobcuts/index.htm?postversion=2007030213

NEW YORK (CNNMoney.com) -- Boeing Friday took the first step towards shutting down production of the C-17 military jet, a move that could cost 7,000 jobs by 2009, due to lack of additional orders for the aircraft.

Boeing (Charts) said that is stopping procurement of parts for any new C-17s not under contract or firmly committed. The aircraft has been the center of federal probes into improper relations between Boeing officials and military officials. Former Air Force acquisition chief Darleen Druyun went to prison for conducting improper employment talks with Boeing while she negotiated the C-17 contract adjustment.

"Without further aircraft orders, significant workforce reductions will begin in early 2008 as the production line heads toward complete shutdown in mid-2009," said the company's statement. It said it has 7,000 employees directly involved in building the aircraft and that its supplier base has more than 25,000 people working on making parts for the plane.

The company had considered building a commercial version of the freighter aircraft for the air cargo market. But the U.S. Defense Department has not requested funding for new C-17s in the budget for the fiscal year that starts Oct. 1, and the company said new international interest is significantly less than it was a year ago.

/.

[Eugene]

73. Global shares drop for fourth day

(BBC News)
Last Updated: Friday, 2 March 2007, 18:47 GMT

Global shares drop for fourth day

Global shares have fallen for a fourth day, though the sharp slump that spooked
markets at the start of the week seemed to be running out of steam.

US markets slid, with the Dow Jones down 0.5%, after consumer confidence
figures disappointed the market. The S&P 500 and Nasdaq lost about 1%.

Earlier in the day, European and Asian markets had declined, driven lower by
concerns that prices were overvalued.

The UK's FTSE 100 index, while little changed on Friday, lost 5% this week.

'Very edgy'

Analysts said stocks had been due a correction, adding that the question now
was by how much and how long it would continue.

-snip-

http://news.bbc.co.uk/2/hi/business/6410629.stm

[Ghost Dog]

78. Gaddafi says fear drives world economic system

http://ca.today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2007-03-02T171635Z_01_L02180586_RTRIDST_0_NEWS-LIBYA-GADDAFI-COL.XML&archived=False



SEBHA, Libya (Reuters) - Libyan leader Muammar Gaddafi criticized the world financial system as a dictatorship based on fear on Friday but said Libya's only pragmatic choice after sanctions was to accept the unfair reality of world trade.

Speaking in a rare public debate with Western scholars, Gaddafi added Libya, whose press is state controlled, accepted the Internet and international satellite television because it showed Libyans what he called the weakness of Western democracy.

"The prevailing powers today are in the hands of those who have economic and military power which puts fear in others. They can make you starve. They can close the doors for your exports of raw materials such as coffee or oil," Gaddafi said.

"This is an international dictatorship that is being practiced against people, especially poor people," he said of conditions imposed by Western aid donors on poor countries.

"Those who threaten you with military power or with the (U.N.) Security Council are the people who are controlling the world and if you go against the tide you might be destroyed."

"The Libyans ... realized this very well. From this realistic and pragmatic point of view Libya has improved its relations with the world," he told the debate, intended to mark the 30th anniversary of his declaration of a Jamahiriyah or state of the masses.

/...

ed. Sorry... Couldn't resist that fine photo of the very intelligent (one-time) bête noir... :-)

[54anickel]

79. 2:30 and suckin' pond scum

Dow 12,129.64 104.70 (0.86%)
Nasdaq 2,373.74 30.47 (1.27%)
S&P 500 1,388.74 14.43 (1.03%)
10-yr Bond 4.5130% 0.0430
30-yr Bond 4.6480% 0.0310
NYSE Volume 2,431,141,000
Nasdaq Volume 1,704,329,000

2:00 pm : Not much has changed since the last update as sellers remain in complete control of today's action. All 10 sectors continue to post losses while the S&P 500 is now down 1.0%; the Nasdaq is down 1.3% fueled by a 1.3% sell-off in Tech.

On the Dow, 26 of 30 components are contributing to its 100-point decline. In fact, if it weren't for a 3.6% surge in shares of American International Group (AIG 69.80 +2.39), the Dow would be turning in an even worse performance. DJ30 -100.92 NASDAQ -30.19 SP500 -13.79 NASDAQ Dec/Adv/Vol 2173/764/1.51 bln NYSE Dec/Adv/Vol 2337/877/1.10 bln

1:30 pm : The indices continue to make fresh session lows as it remains to be seen if and when an intraday bottom will be established. As reflected in the A/D line, decliners outpace advancers on both the NYSE and the Nasdaq by a more than 2-to-1 margin.

The ratio of down to up volumes paints even more of a dismal picture at the Big Board and the Composite. About the only thing the bulls have going for themselves right now is the fact that below average volume today, following three heavily-traded sessions, lends less credibility behind the bears' follow-through efforts.DJ30 -89.69 NASDAQ -29.37 SP500 -12.70 NASDAQ Dec/Adv/Vol 2108/797/1.36 bln NYSE Dec/Adv/Vol 2220/951/990 mln

1:00 pm : Selling remains the name of the game as investors returning from lunch continue to sip from a glass half full. While today's losses still pale in comparison to the meltdown felt around the world on Tuesday, participants continue to see the worst in everything. Case in point, oil prices are now trading at session lows.

While the decline in crude isn't extensive, the fact that Energy (-1.4%) has sold off substantially in response further underscores the lack of enthusiasm to own stocks. ..OIX -1.8%. ..OSX -1.7%. DJ30 -66.25 NASDAQ -24.50 SP500 -10.26 XOI -1.3% NASDAQ Dec/Adv/Vol 2100/790/1.23 bln NYSE Dec/Adv/Vol 2246/924/880 mln

12:30 pm : Stocks take a turn for the worse as the afternoon session gets underway. While falling bond yields usually bode well for stocks, especially growth areas more dependent on borrowing, Treasuries simultaneously hitting session highs lends further validation to the asset reallocation that has been occurring all week.

The 10-year note is now up 8 ticks, pushing the yield to 4.51%, as investors price in some protection heading into the weekend. As a reminder, geopolitical tensions are also still on investors' minds after the Taliban confirmed earlier in the week that Vice President Cheney was targeted in the suicide bombing attack that killed at least 23 people near a U.S. military base in Afghanistan.DJ30 -52.75 NASDAQ -21.62 R2K -1.4% SP500 -7.69 NASDAQ Dec/Adv/Vol 1874/977/1.01 bln NYSE Dec/Adv/Vol 1924/1194/740 mln

[UpInArms]

82. new blather to soothe the beast

2:30 pm : The bottom continues to fall out of stocks concerns about sub-prime mortgage lending spreading into the broader economy and signs of liquidity drying up continue to weigh on the proceedings.

Even though Fed Chairman Bernanke put to rest those fears in a Q&A session after speaking before the House Budget Committee on Wednesday, it appears to have been temporary. Countrywide Financial (CFC 37.05 -0.39) has since reported in an SEC filing that delinquencies surged 19% last year while U.S. regulators today demanded tougher standards for sub-prime adjustable-rate mortgages.DJ30 -109.07 NASDAQ -31.43 SP500 -14.97 NASDAQ Dec/Adv/Vol 2211/750/1.66 bln NYSE Dec/Adv/Vol 2390/834/1.22 bln

looks like Chopper Ben's band-aid fell off :shrug:

[Ghost Dog]

90. 14:56 ET Plunge Protection Team making a (half-hearted) effort?

Dow 12,159.68 Down 74.66 (0.61%)
Nasdaq 2,380.01 Down 24.20 (1.01%)
S&P 500 1,392.37 Down 10.80 (0.77%)
10-Yr Bond 4.5070% Down 0.0490
NYSE Volume 2,621,746,000
Nasdaq Volume 1,842,912,000

[citizen snips]

83. Sector Snap: Airline Stocks Lower

NEW YORK (AP) -- Airline stocks were mixed Friday, as Prudential upgraded Southwest Airlines Co. but Cathay Financial cut price targets for several carriers on assumptions of higher fuel costs.

The Amex Airline Index fell almost 1 percent, with 10 of 11 components declining.

In a research report, Cathay Financial analyst Susan Donofrio boosted her expectation of 2007 oil prices to $62 per barrel from $57. That led her to trim earnings expectations for much of the industry, as jet fuel is one of the airlines' top costs.

A barrel of oil fell 26 cents to $61.74 in afternoon trading on the New York Mercantile Exchange.

Donofrio wrote that she remains positive on the group, as she continues to see strong fares helping to offset the added fuel-price pressure, but she also lowered several price targets.

more...
http://biz.yahoo.com/ap/070302/airlines_sector_snap.html?.v=1

[citizen snips]

84. Boeing Ceases Orders for C-17 Parts

WASHINGTON (AP) -- Boeing Co. on Friday said it will cease ordering parts for C-17 military cargo jets that are not under contract or firm commitments, a step that could mark the end of the aircraft's production altogether.

The company said without further C-17 orders from the Pentagon or foreign buyers it expects to begin reducing the size of its work force as early as 2008, and complete the shut down of production facilities by mid-2009.

Boeing has notified suppliers who employ more than 7,000 workers in California, Missouri, Georgia and Arizona. There are roughly 25,000 U.S. jobs tied to the C-17.

Boeing is under contract by the Air Force for 190 C-17s. The last plane is expected to be delivered by October 2009.

This is the second time Boeing has threatened to halt production of the C-17. Last year, the company went so far as to hold a supplier day on Capitol Hill to lobby members of Congress for continued support.

more...
http://biz.yahoo.com/ap/070302/boeing_air_force.html?.v=4

[Ghost Dog]

91. 25,000 jobs tied to one aircraft, one US Govt. military contract.

...Makes one think... :eyes:

[Roland99]

95. Take this "war on terror" out of the equation and a lot of the "recovery" is GONE.

This is such a lopsided "recovery" it ain't even funny.

[natrat]

97. throw in a little,just a little, housing panic and then oh my

[Ghost Dog]

101. Don't worry. Here's the 'answer':

DU: New U.S. nuclear warhead design chosen (WTF

WASHINGTON (AP) — The Bush administration selected a design Friday for a new generation of atomic warheads, taking a major step toward building the first new nuclear weapon since the end of the Cold War two decades ago.

The military and the Energy Department selected a design developed by the Lawrence Livermore National Laboratory in California over a competing design by the Los Alamos National Laboratory in New Mexico, according to government sources who spoke on condition of anonymity in advance of a formal announcement.

The decision to move ahead with the warhead, which eventually would replace the existing arsenal of weapons, has been criticized as sending the wrong signal to the world at a time when the United States is assailing attempts at nuclear weapons development in North Korea and Iran and striving to contain it.

/...

Ed. Must add the almost universally usual comment: There is NO evidence that Iran (nor, for example, Brazil) may be attempting to develop nucear weapons.

[Roland99]

102. US: "You can't have dangerous toys, ya hear? Now leave me alone to play with my own!"

:eyes:

[citizen snips]

85. Bayer Cutting 6,100 Jobs

FRANKFURT, Germany (AP) -- The drugmaker Bayer AG said Friday that it will cut 6,100 jobs, or 5.5 percent of its work force, as it integrates Schering AG into its health care unit. More than half of the cuts will be in Europe, but about 1,000 positions will be eliminated in the United States.

Bayer acquired Schering last year in a 16.9 billion euro ($22.4 billion) deal and said it would have to cut thousands of jobs as the two companies combined operations. However, it left the details open until Friday.

Bayer employed about 100,200 people as of the end of 2006.

Bayer said the cuts would include 3,150 jobs in Europe, with 1,500 of those going in Germany. In addition to the U.S. cuts, another 1,200 jobs will be cut in Canada and Latin America and 750 in Asia.

more...
http://biz.yahoo.com/ap/070302/germany_bayer_jobs.html?.v=5

[citizen snips]

86. Goldman, Merrill Almost `Junk,' Their Own Traders Say

March 2 (Bloomberg) -- Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley, which earned a record $24.5 billion in 2006, suddenly have become so speculative that their own traders are valuing the three biggest securities firms as barely more creditworthy than junk bonds.

Prices for credit-default swaps linked to the bonds of the New York investment banks this week traded at levels that equate to debt ratings of Baa2, according to Moody's Investors Service. For Goldman, Morgan Stanley and Merrill that's five levels below the actual Aa3 rating on their senior unsecured notes and two steps above non-investment grade, or junk.

Traders of credit derivatives are more alarmed than stock and bond investors that a slowdown in housing and the global equity market rout have hurt the firms. Merrill since 2005 has financed two mortgage lenders that subsequently failed and bought a third, First Franklin Financial Corp., for $1.3 billion.

``These guys have made a lot of money securitizing mortgages over the years in a mortgage boom time,'' said Richard Hofmann, an analyst at bond research firm CreditSights Inc. in New York. ``The question now is what is the exposure to credit risk and what are the potential revenue headwinds if they're not able to keep that securitization machine humming along.''

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=azrxhCZbHMLk&refer=home

[Ghost Dog]

92. Very Ominous. Thanks for the info, MATTMAN. n/t

[citizen snips]

121. no problem

I will never trust those guys in a market like this.

[Ghost Dog]

125. Quite right. And nothing 'Semitic' about this discussion, please. n/t

[stormymonday]

96. Important story

that is probably more significant than the recent stock market gyrations. These are BIG numbers.

[AnneD]

105. Now THIS

seems like the other shoe to me. Gives me the willies. How about ya'll.

[ozymandius]

136. Scares me.

By securitizing all this debt they have undoubtedly left themselves vulnerable to millions of homeowners ability to meet their mortgage obligations.

[54anickel]

138. Check this out....

From the article in post 75

...

But, the one that really made our hair stand on end this week was news that miscellaneous derivative and mortgage- backed bonds totaled more than all the USA government T-Bills, Notes and Bonds combined by a huge margin. We can assure you with absolute conviction this is not good whatsoever.

http://www.kitco.com/ind/Wiegand/mar022007.html

[ozymandius]

140. Yikes!

And this was engineered by whom? People who make a freakin' fortune for being so smart with money?

[54anickel]

143. Heh-heh, Greenspin's praised "additional liquidity" baby is all grown up. That

little additional liquidity has freakin' surpassed the government printing press.
Yikes indeed.

[54anickel]

107. Uh-oh.....n/t

[citizen snips]

87. U.S. Treasuries Set for Biggest Weekly Advance Since September

March 2 (Bloomberg) -- U.S. 10-year Treasuries rose, adding to their biggest weekly gain in five months, as investors sought the safety of government debt amid declines in global stocks.

U.S. benchmark stock indexes erased their 2007 gains this week. Yields on 10-year notes fell to the lowest since December as a plunge in stock markets in Asia, Europe and the U.S. wiped $1.5 trillion from the value of global equities.

``The world looks perilous at this hour and Treasuries are benefiting,'' said William Hornbarger, chief fixed-income strategist at A.G. Edwards & Sons Inc. in St. Louis. ``The concept of risk reduction'' is boosting demand for Treasuries.

The yield on the 10-year Treasury fell about 4 basis points today, or 0.04 percentage point, to 4.51 percent at 1:55 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security due in February 2017 rose about 1/4, or $2.50 per $1,000 face value, to 100 29/32.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=aQe1yLaAYai4&refer=bond

[citizen snips]

88. Procter & Gamble, McKesson Issue Bonds as Sales Slow

March 2 (Bloomberg) -- Procter & Gamble, the largest U.S. maker of consumer products, and drug distributor McKesson Corp. led companies that sold $12.3 billion of bonds this week as issuance slowed amid a plunge in stock and debt markets.

Weekly sales fell from $25.2 billion the prior five-day period, and are below the weekly average of $22.1 billion this year, according to data compiled by Bloomberg. Market turmoil led Cincinnati-based Procter & Gamble, the maker of Folgers coffee and Crest toothpaste, to postpone the sale of at least $2 billion in euro-denominated debt. It still sold $1.4 billion of securities in the U.S.

The global flight from risk pushed high-yield premiums to their widest since Jan. 10 and caused companies such as McKesson to sell debt at higher rates than planned. A drop in stock prices, rising delinquencies in subprime mortgages and debt- fueled leveraged buyouts are a ``wakeup call,'' Robert Persons, a bond fund manager at MFS Investment Management in Boston, said.

``Those three things have brought risk back to the forefront of investors' minds,'' said Persons, who helps oversee $4 billion in investment-grade debt. ``It's not surprising that issuers would want to hold off until the volatility subsides.''

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=acJbf1czW3_A&refer=bond

[Ghost Dog]

94. Portuguese workers stage huge protest against social, economic reforms

http://www.iht.com/articles/ap/2007/03/02/europe/EU-GEN-Portugal-Labor-Protest.php <- WARNING: This IHT link may freeze your browser (in my case Firefox) until you close that tab/window.

LISBON, Portugal: An estimated 100,000 people marched through Lisbon on Friday, police said, in the biggest labor protest so far against the center-left Socialist government's economic policies and social reforms.

The demonstration, called by the General Confederation of Portuguese Workers, demanded higher pay and pensions and an end to the government's civil service reforms.

To reduce the country's budget deficit and sharpen Portugal's competitive edge prime minister Jose Socrates has introduced unpopular reforms, including a hike in taxes, performance evaluations, halts in career promotions, and cuts in health and retirement benefits, among others.

The Socialist Party came to power in a landslide two years ago on a promise of wholesale reforms to modernize the country.

/.

Ah yes, the suspicious surreality of European so-called 'socialism'. And then they wonder why folks grow ever-more cynical, and vote less.

[UpInArms]

99. 3:45 EST crowding the exits

Dow 12,145.34 89.00 (0.73%)
Nasdaq 2,377.16 27.05 (1.13%)
S&P 500 1,391.21 11.96 (0.85%)
10-Yr Bond 4.515% 0.041

NYSE Volume 3,011,870,000
Nasdaq Volume 2,106,675,000

3:30 pm : As expected, especially going into a weekend, recent attempts to pare losses weren't met with much conviction. Even if the indices were trading at improved levels, the market may take such a recovery with a grain of salt since trading desks have been thinning out all afternoon.

In fact, volume today doesn't come close to what was seen over the last three sessions, which averaged about 2.4 bln shares on the NYSE. The Big Board didn't even reach 1.0 bln shares until 2:00 ET. DJ30 -76.46 NASDAQ -25.71 SP500 -10.75 NASDAQ Dec/Adv/Vol 2175/814/1.96 bln NYSE Dec/Adv/Vol 2376/880/1.47 bln

3:00 pm : The major averages are bouncing off their worst levels of the day, but the rebound isn't nearly enough to make a significant change in the standings. At their lows, the Dow, S&P 500 and Nasdaq were off 1.0%, 1.1% and 1.4%, respectively.

Last-ditch buying efforts more suggestive of some short covering than anything else still leave the Nasdaq off 1.0% on the session and down nearly 5.5% for the week. DJ30 -78.21 NASDAQ -25.49 SP500 -11.49 NASDAQ Dec/Adv/Vol 2149/832/1.83 bln NYSE Dec/Adv/Vol 2379/872/1.35 bln

[Roland99]

103. volume seems to have increased quite a bit toward the end.

[Ghost Dog]

100. Toyota may face backlash from Congress (WTF?)

DU: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2753018

WASHINGTON - From a high school auditorium near the birthplace of Elvis, Toyota was greeted like a hometown hero this week when it announced its eighth vehicle assembly plant in the United States.

Students cheered as the automaker showed off a Highlander sport utility vehicle that will be built starting in 2010 at the $1.3 billion plant near Tupelo, Miss. Gov. Haley Barbour called Toyota Motor Corp. the "world's premiere auto manufacturer," and Sen. Trent Lott (news, bio, voting record), the Senate's No. 2 Republican, promised "when you are in our constituency, we are warriors on your behalf."

Toyota's choice of Mississippi for a new plant should give it more clout on Capitol Hill. With Michigan-based automakers facing hardships, a few more members of Congress on its side helps as Toyota takes on some lawmakers who openly question whether what's good for Toyota and other Japanese automakers is good for America.

"They're manipulating the yen and it creates big differences in what they can sell their automobiles for," said Sen. Debbie Stabenow (news, bio, voting record), D-Mich., who represents thousands of Detroit-based auto workers. "Most of their vehicles are still coming from Japan."

Stabenow and other lawmakers representing manufacturing states complain that the Japanese government has kept the yen artificially low, allowing their auto producers to undercut competitors and reap huge profits in the United States. They note that 46 percent of Toyota's U.S. sales in 2006 came from vehicles imported from Japan, even as the company highlights its American work force and assembly plants in advertising.

/...

[Roland99]

104. They're manipulating the yen?! WTF?

:eyes:

[54anickel]

108. Fork stickin' time again - "Liquidity crunch" is the theme

Dow 12,114.10 120.24 (0.98%)
Nasdaq 2,368.00 36.21 (1.51%)
S&P 500 1,387.17 16.00 (1.14%)
10-yr Bond 4.5150% 0.0410
30-yr Bond 4.6500% 0.0290
NYSE Volume 3,291,296,000
Nasdaq Volume 2,427,642,000

4:20 pm : The major averages closed sharply lower Friday amid growing fears of a liquidity crunch and worries that sub-prime mortgage misfortunes will spread into the broader economy. Even though Fed Chairman Bernanke briefly put both concerns to rest in a Q&A session on Wednesday, his words appear to have since fallen on deaf ears.

With Tuesday's sell-off shifting the market's focus to everything negative, the implications of what a mass exodus of speculative buying interest may have on the rest of the market made increasingly risk-averse investors even more frightened about the much talked about market correction.

As evidenced by another plunge in the futures market Friday morning, another rally in the Japanese yen shed some more light on the high degree of speculation that has been fed by unprecedented levels of liquidity. The correlation again raised concerns that hedge funds benefiting from the so-called carry trade may all start to unwind positions at the same time, which could have a ripple effect around the globe.

Meanwhile, U.S. regulators today demanded tougher standards for sub-prime adjustable-rate mortgages; but the news merely minimized losses in Countrywide Financial (CFC 37.19 -0.25) which yesterday reported in an SEC filing that delinquencies surged 19% last year.

On a positive note, St. Louis Fed President Poole made some early remarks. He dismissed fears of a recession, said he sees nothing in carry trades that is disruptive at this stage and that stock market valuation "does not seem to be elevated" at this time. Nonetheless, the market's "sell first, think later" mentality led to even more asset reallocation and continued to overshadow the fact that market fundamentals have not changed and that valuations on stocks are actually still attractive. DJ30 -120.24 NASDAQ -36.21 SP500 -16.00 NASDAQ Dec/Adv/Vol 2259/759/2.15 bln NYSE Dec/Adv/Vol 2452/822/1.67 bln

3:30 pm : As expected, especially going into a weekend, recent attempts to pare losses weren't met with much conviction. Even if the indices were trading at improved levels, the market may take such a recovery with a grain of salt since trading desks have been thinning out all afternoon.

In fact, volume today doesn't come close to what was seen over the last three sessions, which averaged about 2.4 bln shares on the NYSE. The Big Board didn't even reach 1.0 bln shares until 2:00 ET. DJ30 -76.46 NASDAQ -25.71 SP500 -10.75 NASDAQ Dec/Adv/Vol 2175/814/1.96 bln NYSE Dec/Adv/Vol 2376/880/1.47 bln

[Ghost Dog]

109. Such an easy game to play

Talk about ear-worms... :evilgrin:

http://www.songfacts.com/detail.php?id=82

Yesterday
All my troubles seemed so far away
Now it looks as though they're here to stay
Oh, I believe
In yesterday

Suddenly
I'm not half the man I used to be
There's a shadow hanging over me
Oh, yesterday
Came suddenly

Why she
Had to go I don't know
She wouldn't say
I said
Something wrong now I long
For yesterday

Yesterday
Love was such an easy game to play
Now I need a place to hide away
Oh, I believe
In yesterday

Why she
Had to go I don't know
She wouldn't say
I said
Something wrong now I long
For yesterday

Yesterday
Love was such an easy game to play
Now I need a place to hide away
Oh, I believe
In yesterday

Ed. (From link above): "This is the most covered pop song of all time, over 3,000 versions recorded according to The Guinness Book Of World Records. For years, it was also the song with the most radio plays, but in 1999 BMI music publishing reported that "You've Lost That Lovin' Feeling" had passed it."

...

Artist: The Righteous Brothers Lyrics
Song: You've Lost That Loving Feeling Lyrics
You never close your eyes anymore when I kiss your lips.
And there's no tenderness like before in your fingertips.
You're trying hard not to show it, (baby).
But baby, baby I know it...

You've lost that lovin' feeling,
Whoa, that lovin' feeling,
You've lost that lovin' feeling,
Now it's gone...gone...gone...wooooooh.

Now there's no welcome look in your eyes
when I reach for you.
And now your're starting to critisize little things I do.
It makes me just feel like crying, (baby).
'Cause baby, something in you is dying.

You lost that lovin' feeling,
Whoa, that lovin' feeling,
You've lost that lovin' feeling,
Now it's gone...gone...gone...woooooah

Baby, baby, I get down on my knees for you.

If you would only love me like you used to do, yeah.

We had a love...a love...a love you don't find everyday.

So don't...don't...don't...don't let it slip away.

Baby (baby), baby (baby),
I beg of you please...please,
I need your love (I need your love),
I need your love (I need your love),
So bring it on back (So bring it on back),
Bring it on back (so bring it on back).

Bring back that lovin' feeling,
Whoa, that lovin' feeling
Bring back that lovin' feeling,
'Cause it's gone...gone...gone,
and I can't go on,
noooo...

Bring back that lovin' feeling,
Whoa, that lovin' feeling
Bring back that lovin' feeling,
'Cause it's gone...gone...

[AnneD]

127. Curse you Ghost Dog....

I gave up fast food and the car radio for Lent. Now I am going to be humming Yesterday all the way home. Dang that is a potent ear worm. Maybe I'll block it out with Imagine.

[54anickel]

130. Woooo-oo-ohhhh-ohh....damn, it's stuck in there now!!!!!! n/t

[ozymandius]

141. Sorry I duped you.

I missed it somehome with such a long thread.

[UpInArms]

110. Debt-market bomb could hurt us all

I don't know if this is a re-post, but thought it should be read.

http://articles.moneycentral.msn.com/Investing/JubaksJournal/DebtMarketBombCouldHurtUsAll.aspx?page=1

File this under strange but true: Insurance encourages risk-taking behavior, and ultimately, it increases the size of a disaster when it finally strikes.

That is bad news, really bad news, for the debt markets. So bad, in fact, that if you're worried about a financial-market meltdown, you should be watching the debt markets and not the stock market.

The problem is what I call the insurance effect. Make it possible for homeowners to get flood insurance, and more people will build in flood-prone areas. Sell hurricane insurance, and more people build in areas at risk of getting hit by a hurricane.

The result is logical, if perverse. The insurance policies haven't reduced the risk of floods or hurricanes, but they have shifted part of the risk from the homeowner to the insurance company. The homeowner with insurance, as a result, has less financial motivation to avoid the risk of floods or hurricanes.

<snip>

Worse shape this time around
But because of the insurance effect -- remember, an ability to buy insurance, even if it's ineffective, increases risking-taking behavior -- we're in much worse shape this time. Going into the 1990 recession, most-likely-to-fail CCC-rated companies made up just 2% of the junk-bond market, says Martin Fridson, the publisher of Leverage World and formerly Merrill Lynch's junk-bond guru. In February 2007, the figure is 17%.

...more...

[Ghost Dog]

123. Ultimate Risk: The Inside Story of the Lloyd's Catastrophe

Food for thought. Start maybe here.

http://www.bearcave.com/bookrev/lloyd.htm

Lloyd's was the ultimate "Old Boy's club". The usual arms length relationship between an insurance broker, who seeks to insure a risk and the insurance underwriter, who guarantees against the risk, did not exist at Lloyds. The potential for abuse that this represented for the Lloyd's Names became a reality in the 1980s. During this time, the number of Lloyd's names swelled from 6,000 at the start of the decade to 32,433 at the decade's close. Many of the new Names were professionals who were attracted to Lloyd's by its reputation as a safe investment that paid a good return. Most Names did not fully understand the risk that they ran investing with Lloyd's, where the potential for lose could be many times their investment. Many of these investors were placed in syndicates that were exposed to massive asbestos and pollution liability. Thousands were bankrupted.

Billions of dollars in losses were concentrated in about a third of the Lloyd's syndicates. Most of the Names who ended up investing in these syndicates were passive investors in Lloyd's, referred to as "outside Names". While these syndicates piled up huge losses, bankrupting the Names that invested in them, other syndicates, largely subscribed by Lloyd's insiders, racked up huge profits, in many cases in excess of thirty percent a year. As these facts were disclosed, there was a storm of litigation, which continues today. In the "San Jose Mercury News", on February 22, 1996, there was a small article in the Company News section:

"California regulators sued Lloyd's of London late Wednesday, claiming the insurance company misled more than 500 investors in the state.

The lawsuit, filed in state Superior court in Los Angeles, is the largest legal action brought by a state against lloyd's.

The California department of Corporations is asking the judge to issue a temporary restraining order and permanent injunction prohibiting Lloyd's from selling investments in the state. A hearing on the restraining order is scheduled for next week.

Like lawsuits filed by other states, California claims Lloyd's violated state securities laws by misleading potential investors. Lloyd's began opening its once exclusive syndicates to new investors in the early 1980s, and thousands were attracted by the company's reputation. Many investors recruited during the 1980s claim Lloyd's never told them they could be liable for huge losses from asbestos and other environmental claims.

Lloyd's officials weren't immediately available for comment."

[citizen snips]

111. Stocks Post Worst Week in Over 4 Years

NEW YORK (AP) -- Stocks stumbled in the final session of a tumultuous week Friday as the yen rallied against the dollar and concerns about the U.S. economy still dogged investors after Tuesday's huge drop. The Dow Jones industrials logged their worst weekly performance in more than four years.

The Dow, as it had Thursday, poked tentatively into positive territory Friday before retreating as the yen furthered its gains and investors failed to shake their unease.

Larger economic concerns such as the ascendent yen have dominated Wall Street for much of the week after Tuesday's worldwide selloff that sent the Dow down 416 points and rattled investor confidence about the state of the U.S. economy.

Neil Massa, senior trader at MFC Global Investment Management, said stocks wobbled Friday after the yen broke through a key resistance level of 116.80. The dollar fell 0.92 percent to 116.86 yen.

more...
http://biz.yahoo.com/ap/070302/wall_street.html?.v=46

[citizen snips]

112. Sector Wrap: Subprime Lenders Decline

WASHINGTON (AP) -- Shares of "subprime" lenders continued their decline Friday after federal bank regulators asked them to be more cautious when making the high-risk loans and scrutinizing borrowers' ability to repay them.

The proposed guidance from the Federal Reserve and other agencies that regulate the lending industry comes amid rising home-mortgage delinquencies and foreclosures.

Lenders who offer subprime mortgages -- which are higher-interest loans for those with bad credit -- have been forced to set aside more reserves against potential loan losses and have seen their stock prices slashed in the last month. On Friday, many hovered near, or established new lows for the year.

Shares of Kansas City, Mo.-based NovaStar Financial Inc. dropped 55 cents, or 7.1 percent, to close at a 52-week low of $7.24 on the New York Stock Exchange, where they previously traded between $7.68 and $38.49 in the past year.

more...
http://biz.yahoo.com/ap/070302/subprime_mortgage_sector_wrap.html?.v=1

[issac82_82]

113. The stock market is going down!

The dow will probably drop to 11,000. Guess Bush SHOULD feel like a real jerk after giving his uppity wall street speech.

[citizen snips]

114. Hot Stocks of the Week: TXU, RadioShack

NEW YORK (AP) -- Even with the markets on a roller coaster this week, some stocks grabbed extra attention from traders this week.

Among the standouts Monday was Texas' largest electricity producer, TXU Corp., which agreed to a $32 billion sale to a group led by private-equity firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group. The deal, if it goes through, it would be the largest private buyout ever.

The announcement sent TXU shares to a 52-week high of $68.45 before they closed at $67.93, up $7.91, or 13.2 percent on the New York Stock Exchange. Trading volume topped 48 million shares, more than 11 times normal trade.

The stock's momentum slowed throughout the week, with shares dipping Tuesday while the rest of the market plunged, then steadying for the remaining trading days, to close Friday at $66.50. Volume remained more than five times normal on Tuesday, and stayed heavy, though declining, the rest of the week.

more...
http://biz.yahoo.com/ap/070302/apfn_hot_stocks_mover.html?.v=1

[citizen snips]

115. DJIA Leaders & Laggards: GM, AIG

NEW YORK (AP) -- General Motors Corp. weighed on the Dow Jones industrial average Friday after the company was hit by concerns about the subprime lending markets, which may impact former lending arm GMAC, which still provides loans for their cars.

GM stock declined 92 cents, or 2.9 percent, to close at $30.62 on the NYSE.

The index gave up 120.24 to finish at 12,114.10.

Citigroup Inc. declined $1.11, or 2.2 percent, to close at $49.97 on the NYSE after the company eased some rules on its consumer credit card accounts.

more...
http://biz.yahoo.com/ap/070302/apfn_djia_laggards.html?.v=1

[citizen snips]

116. S&P 500 Leaders & Laggards: PMCS, KSS

NEW YORK (AP) -- Semiconductor maker PMC-Sierra Inc. weighed down the Standard & Poor's 500 Index Friday, a day after the company tapped Michael W. Zellner as its new chief financial officer.

The S&P 500 fell 16 points to close at 1,387.17.

PMC-Sierra shed 28 cents, or 4.3 percent, to finish at $6.29 on the Nasdaq Stock Market.

Ciena Corp. declined $1.18, or 4.2 percent, to $27.10 on the Nasdaq, a day after the networking equipment company issued an outlook that disappointed investors.

more...
http://biz.yahoo.com/ap/070302/apfn_s_p_500_laggards.html?.v=1

[citizen snips]

117. Nasdaq Leaders & Laggards: SEPR, SNDK

NEW YORK (AP) -- Sepracor Inc. dragged down the Nasdaq 100 Friday as the drug maker announced a management change that curtailed investor hopes of a potential takeover.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq, dropped 27.42 points to 1,726.03. The Nasdaq composite shed 36.21 points to end at 2,368.00.

Sepracor shed $2.44, or 4.7 percent, to close at $49.45 after the drug maker tapped Adrian Adams as president and chief operating officer, replacing W. James O'Shea. Adams will likely be named CEO in six months, the company said.

"Clearly, if you have new management coming in, you're not going to have an acquisition consummated within the very near future," said Aaron S. Reames, an analyst with A.G. Edwards, in a phone interview.

Akamai Technologies Inc., which makes technology that allows companies to deliver online ads, video and other content, continued its decline, giving up $2.35, or 4.7 percent, to finish at $47.78.

more...
http://biz.yahoo.com/ap/070302/apfn_nasdaq_100_laggards.html?.v=1

[citizen snips]

118. Grains, Soybeans Decline

CHICAGO (AP) -- Grain and soybean futures retreated Friday on the Chicago Board of Trade.

Wheat for May delivery fell 5 1/4 cents to $4.73 3/4 a bushel; May corn fell 7 cents to $4.21 a bushel; May oats fell 3 1/2 cents to $2.46 a bushel; May soybeans fell 8 1/2 cents to $7.53 1/2 a bushel.

Beef and pork futures advanced on the Chicago Mercantile Exchange.

April live cattle rose 1.50 cent to 97.65 cents a pound; April feeder cattle rose 1.52 cent to $1.0552 a pound; April lean hogs rose .23 cent to 66.35 cents a pound; May pork bellies rose 1.58 cent to $1.0620 a pound.

http://biz.yahoo.com/ap/070302/board_of_trade.html?.v=4

[citizen snips]

119. Chips Snap: OmniVision, AMD Shares Skid

NEW YORK (AP) -- Semiconductor stocks inched down in Friday's trading, partly dragged by computer maker Dell Inc.'s disappointing earnings and sales results.

Dell said late Thursday its fourth-quarter profit plunged 33 percent due to weak sales of laptops. In May, Dell said it would begin to use chips made by Advanced Micro Devices Inc. It had previously relied solely upon AMD rival Intel Corp. for chips.

AMD shares, which have traded between $14.43 and $42.70 over the last 52 weeks, fell 60, or 4.1 percent, at $14.18 on the New York Stock Exchange. Earlier in the session shares set a new 52-week low of $14.23. Meanwhile, Intel shares lost 29 cents to $19.31.

Analysts were reluctant to peg weakness in the semiconductor sector to Dell's woes, but one analyst suspects it was a slight negative in an already skittish trading session.

more...
http://biz.yahoo.com/ap/070302/sector_snap_semiconductors.html?.v=1

[citizen snips]

120. AIG, Gap Among Wall Street's Big Movers

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Friday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

American International Group Inc., up $2.13 at $69.54.

Fourth-quarter profits at the world's largest insurer rose sharply from a year earlier when it spent $1.64 billion to settle charges over its accounting practices. The company also announced a $5 billion stock buyback for 2007 and targeted an annual dividend increase of 20 percent.

Gap Inc., down 63 cents at $18.40.

The retailer's fourth-quarter earnings fell 35 percent amid problems that include its newest chain, which the company plans to close.

more...
http://biz.yahoo.com/ap/070302/wall_street_stocks.html?.v=3

[citizen snips]

122. Alcatel-Lucent's suit against Microsoft tossed

SEATTLE (Reuters) -- A U.S. federal judge dismissed Alcatel-Lucent's patent claim against Microsoft Corp. over technology that converts speech into text, the two companies said Friday.

The ruling made late Thursday comes one week after a jury found that the world's largest software-maker infringed on audio patents held by Alcatel-Lucent (Charts) and ordered the company to pay $1.52 billion in damages.

U.S. District Judge Rudi Brewster in San Diego dismissed all of Alcatel-Lucent's claims in a summary judgment - meaning that the jury trial set to begin on March 19 will not take place. Alcatel-Lucent said it plans to appeal the ruling.

"We've made strong arguments supporting our view," said Alcatel-Lucent spokeswoman Joan Campion. "We're comfortable with our chances of success."

more...
http://money.cnn.com/2007/03/02/technology/microsoft_ruling.reut/index.htm?postversion=2007030215

[citizen snips]

124. Gold, Silver Tumble on Liquidation

NEW YORK (AP) -- Speculators continued to sell off gold and silver futures Friday, triggering sell stops. Corn, wheat and soybeans also fell.

April gold settled down $21 at $644.10 a troy ounce on the New York Mercantile Exchange. May silver settled down 69 cents at $12.96 an ounce.

"You're seeing massive speculative liquidation in gold and silver," said Michael Gross, broker and futures analyst with Liberty Trading.

April gold bottomed at $641.30, its weakest level since Jan. 23. May silver hit a low of $12.80 that was its weakest level since Jan. 17.

The behavior of precious metals prices this week has confounded investors who expect them to be a safe haven in times of turmoil on the stock market.

more...
http://biz.yahoo.com/ap/070302/commodities_review.html?.v=1

[AnneD]

128. Show me the way to go home.....

:toast: :beer: :toast: :beer: :toast: :beer:

Have a good weekend all :hi:

[54anickel]

132. Dang ---- another ear-worm

.....

Two of us wearing raincoats
Standing so low
In the sun
You and me chasing paper
Getting nowhere
On our way back home
We're on our way home
We're on our way home
We're going home

You and i have memories
Longer than the road that stretches out ahead

Two of us wearing raincoats
Standing so low
In the sun
You and me chasing paper
Getting nowhere
On our way back home
We're on our way home
We're on our way home
We're going home

We're going home

[ozymandius]

133. Blessings and a sweet weekend to you too. BTW - here's the formality.

OUCH!Looks like people - damn near everybody didn't feel like holding onto stocks over the weekend.
Dow 12,114.10 Down 120.24 (0.98%)
Nasdaq 2,368.00 Down 36.21 (1.51%)
S&P 500 1,387.17 Down 16.00 (1.14%)
10-Yr Bond 4.515% Down 0.041
NYSE Volume 3,310,720,000
Nasdaq Volume 2,442,546,000

4:20 pm : The major averages closed sharply lower Friday amid growing fears of a liquidity crunch and worries that sub-prime mortgage misfortunes will spread into the broader economy. Even though Fed Chairman Bernanke briefly put both concerns to rest in a Q&A session on Wednesday, his words appear to have since fallen on deaf ears.

With Tuesday's sell-off shifting the market's focus to everything negative, the implications of what a mass exodus of speculative buying interest may have on the rest of the market made increasingly risk-averse investors even more frightened about the much talked about market correction.

As evidenced by another plunge in the futures market Friday morning, another rally in the Japanese yen shed some more light on the high degree of speculation that has been fed by unprecedented levels of liquidity. The correlation again raised concerns that hedge funds benefiting from the so-called carry trade may all start to unwind positions at the same time, which could have a ripple effect around the globe.

Meanwhile, U.S. regulators today demanded tougher standards for sub-prime adjustable-rate mortgages; but the news merely minimized losses in Countrywide Financial (CFC 37.19 -0.25) which yesterday reported in an SEC filing that delinquencies surged 19% last year.

On a positive note, St. Louis Fed President Poole made some early remarks. He dismissed fears of a recession, said he sees nothing in carry trades that is disruptive at this stage and that stock market valuation "does not seem to be elevated" at this time. Nonetheless, the market's "sell first, think later" mentality led to even more asset reallocation and continued to overshadow the fact that market fundamentals have not changed and that valuations on stocks are actually still attractive. DJ30 -120.24 NASDAQ -36.21 SP500 -16.00 NASDAQ Dec/Adv/Vol 2259/759/2.15 bln NYSE Dec/Adv/Vol 2452/822/1.67 bln

[54anickel]

135. So Ozy, exactly how does liquid go "crunch" anyway? Wouldn't it just sort of ooze?

Have a good one Ozy and all. :hi:

[ozymandius]

137. Yep - sure sounds like a mixed metaphor to me.

But it does make me think: liquidity squish; liquidity splash; yadda yadda yadda

See you Monday!

:hi:

[UpInArms]

142. I'm tired and I want to go to bed

I had me a drink about an hour ago
and it's gone straight to my head

:D

:hi:

have a great weekend, all!

[citizen snips]

139. Friday's biggest stock gainers and decliners

Bristol West Holdings (NYSE:BRW - News) shares jumped 36% Friday after the company agreed to be acquired by Zurich Financial for $712 million in cash, or $22.50 a share. That's a 39% premium to Bristol's close on Thursday. BRW is a leading provider of liability and physical damage insurance focusing exclusively on private passenger automobiles across the U.S., specializing in the non-standard market. Kohlberg Kravis Roberts, which holds 42% of BRW, has agreed to vote in favor of the deal, but BRW has until March 31 to actively solicit other possible bidders.

Shares of Dendrite International (NasdaqGS: DRTE - News) jumped 21% after Cegedim S.A. agreed to acquire the company for $16 a share in cash. The deal values Bedminster, N.J.-based Dendrite, a provider of sales and marketing products and services to the pharmaceutical industry, at roughly $751 million. The offer represents a 40% premium to Dendrite's average share closing price over a 20-day period from Feb. to March 1, the companies said. Cegedim is based in Paris.

Immersion Corp. (NasdaqGM:IMMR - News) shares jumped 17% after the company said it and Sony Corp.'s (NYSE:SNE - News) Sony Computer Entertainment ended their patent litigation in a U.S. Court of Appeals and signed an agreement to explore the inclusion of Immersion technology in PlayStation products. Immersion, a San Jose touch-feedback technology company, also reported its fourth-quarter loss narrowed to $2 million, or 8 cents a share, from $3 million, or 12 cents a share. Revenue rose to $8.6 million from $6.9 million. The agreement is intended to enable "advanced vibration capability" for the PlayStation and provides Sony Computer Entertainment with certain new rights to Immersion's patent portfolio. In ending the litigation, Immersion will receive the amount of the judgment entered by the district court, which includes damages, prejudgment interest, costs, and interest, in addition to retaining compulsory license fees ordered by the district court which were already paid.

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