STOCK MARKET WATCH, Tuesday December 4

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday December 4, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 414 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2513 DAYS
WHERE'S OSAMA BIN-LADEN? 2235 DAYS
DAYS SINCE ENRON COLLAPSE = 2196
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 December 3, 2007

Dow... 13,314.57 -57.15 (-0.43%)
Nasdaq... 2,637.13 -23.83 (-0.90%)
S&P 500... 1,472.42 -8.72 (-0.59%)
Gold future... 794.70 +5.60 (+0.70%)
30-Year Bond 4.35% -0.05 (-1.11%)
10-Yr Bond... 3.90% -0.08 (-1.94%)






GOLD, EURO, YEN, Loonie and Silver

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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

---

Read more: du

[ozymandius]

1. Market WrapUp: The Best Case Yet for Gold

BY ROB KIRBY

Despite continuing assertions from officialdom to the contrary, inflation is alive, well and unfortunately – flourishing.

Continued claims that we live in a 2 – 3% inflationary environment fly in the face of broad money growth rates (M3) of 14% in the U.S. and annualized growth rates in excess of 27% in countries like Russia:

-see chart-

And Here’s Why We All Should Care

When record keepers insist that official inflation rates are lower than reality, these distorted numbers are typically used as “benchmarks” – not only for indexing purposes , but these same faulty numbers are also used as inputs to assess the economic viability of capital intensive projects going forward:

Teck Cominco, NovaGold step back from Galore Creek plan
JOHN PARTRIDGE
Globe and Mail Update
November 26, 2007 at 3:23 PM EST

……The two companies said Monday that an evaluation of the Galore Creek project by an independent engineering firm, along with their own review, concluded that the capital cost of the project “could approach as much as $5-billion,” while adding 18 to 12 months to the construction schedule.

This is fully $3-billion higher than estimates in the initial feasibility study just over a year ago, an increase that clearly shook some analysts who took part in a conference call held by the mining companies…

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

[Ghost Dog]

2. Global markets

____

Asian Stocks Decline for First Time in Four Days as Rio Slips

Dec. 4 (Bloomberg) -- Asian stocks fell for the first time in four days on renewed concern that economic growth is slowing in the U.S., the region's largest export market.

Rio Tinto Group and Nippon Mining Holdings Inc., Japan's largest copper producer, slipped after a report showed U.S. manufacturing expanded in November at the slowest pace in 10 months, raising speculation that raw-materials demand will wane. JFE Holdings Inc. led declines by steelmakers.

``It's difficult to be bullish at the moment with the U.S. economy looking more like it's headed for a recession than a slowdown,'' said Toshio Konishi, who helps oversee $4.3 billion at Polar Capital Partners in Tokyo.

The MSCI Asia Pacific Index lost 0.3 percent to 161.84 as of 3:18 p.m. in Tokyo, snapping a three-day, 3.6 percent rally. A measure of raw-materials producers had the second biggest drop among the benchmark's 10 industry groups. Japan's Nikkei 225 Stock Average lost 1 percent. About half of Asia's key stock indexes fell.

China's CSI 300 Index and Hong Kong's Hang Seng Index climbed as Ping An Insurance (Group) Co., which trades in both markets, won regulatory approval to invest more funds abroad.

The MSCI Asia Pacific Index has dropped 6.1 percent from its Nov. 1 record amid speculation rising losses tied to investments in U.S. subprime mortgages will slow growth in the world's largest economy. Federal Reserve Bank of San Francisco President Janet Yellen said yesterday financial conditions and consumer spending deteriorated more than she expected.

...

China's CSI 300 climbed 1 percent, extending yesterday's 0.7 percent increase. Hong Kong's Hang Seng gained 0.9 percent as investors bet an inflow of funds from China will lift the city's stocks.

...

The Hang Seng index has gained 42 percent since Aug. 20, when China announced a plan that would allow individuals on the mainland to trade shares in Hong Kong.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=akXoBKJJ4ekU&refer=asia
____

Machinery, shippers push Japan shares lower

TOKYO, Dec 4 (Reuters) - Machinery and shipping shares such as Kawasaki Kisen (9107.T: Quote, Profile, Research) dragged Japanese stocks lower on Tuesday after growing concerns about the U.S. economy hit Wall Street, with a stronger yen also contributing to the fall.

Investors turned defensive as a bearish mood spread on concerns about profits next year and fears about a U.S. economic slowdown, with buying of firms such as Kao Corporation (4452.T: Quote, Profile, Research) and railways picking up.

"There's a general sense that the market is starting to price in widespread profit falls for next year, and this is leading the shift to defensive shares as they look for something solid," said Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management.

...

This feeling was hitting shipping prices especially hard as investors worried about the impact of higher oil prices and a U.S. economic slowdown.

The yen's slide towards 110 yen <JPY=> was also undercutting Tokyo stocks, which languished as last week's flurry of short-covering on expectations of a U.S. rate cut next week ran out of steam. The market was top-heavy around 15,800, just above Monday's high.

/... http://www.reuters.com/article/marketsNews/idCAT2735620071204?rpc=611
____

Asian bonds weaken on worries over US economy

HONG KONG, Dec 4 (Reuters) - Asian bonds weakened on Tuesday, snapping a four-session winning streak, as data showing weaker U.S. manufacturing activity cast doubts on the health of Asia's top export destination.

Uncertainty about the effectiveness of U.S. government plans to freeze interest rates on some mortgages with adjustable rates also contributed to the dampened mood, traders said. The development had helped Asian bonds in the previous session amid hopes it would avert foreclosures.

The widely followed iTRAXX Asia ex-Japan high-yield index <ITAHY12Z8A=ITX> -- a key measure of risk aversion -- widened to as far as 328 basis points from 310/315 the previous session and was quoted at 322/326 by late Tuesday morning.

The index had narrowed by around 50-60 basis points over the previous four sessions amid confidence the Federal Reserve would cut U.S. interest rates at its Dec. 11 meeting.

"There's still plenty of caution in the market. Besides a few issues, nothing is really trading," said a Hong Kong trader.

/... http://www.reuters.com/article/marketsNews/idINHKG1155020071204?rpc=611
____

Germany decries FX disorder, says G7 may alter tone

BRUSSELS, Dec 3 (Reuters) - As European jet maker Airbus (EAD.PA: Quote, Profile, Research) talked of moving some of its operations out of Europe because of a strong euro, German Finance Minister Peer Steinbrueck said on Monday exchange rate trends had become disorderly.

Steinbrueck, who until now has highlighted German exporters' ability to weather the euro's rise against the dollar and other currencies, told reporters in Brussels the G7 powers may change tone on the issue at a February meeting in Japan. "At the moment we have a disorderly adjustment and unwinding," Steinbrueck told reporters after a meeting of euro zone finance ministers in Brussels.

That appeared to be the first time Germany, or any other G7 country for that matter, had gone from warning that disorderly currency movements were undesirable to saying that they were materialising.

/... http://www.reuters.com/article/marketsNews/idINL0429094920071204?rpc=611
____

Eurozone's Juncker sees increasing inflation risks

BRUSSELS (AFP) - Soaring inflation is becoming a risk to the 13 nations sharing the euro as they struggle to cope with slower economic growth, the chairman of eurozone finance ministers meetings said Monday.

"We cannot ignore increasing inflation risks," Luxembourg Finance Minister Jean-Claude Juncker said as he arrived to chair a meeting with his eurozone counterparts.

"The economy is robust but slowing down a bit; we have to face these risks," he said.

According to official EU data on Friday, inflation in the eurozone rose to 3.0 percent in November, the highest in more than six years and well above the European Central Bank's preferred level of close to but less than 2.0 percent.

The ECB faces a growing dilemma over keeping prices under control without weakening the economy as it struggles to cope with financial market volatility, record oil prices and a strong euro.

/... http://news.yahoo.com/s/afp/20071203/ts_afp/eueurozoneeconomyinflation_071203190855;_ylt=AnNdZZs_7IwjXjgOu1IkntWmOrgF
____

Dubai World to sell US, UK property and buy in Asia

SINGAPORE, Dec 4 (Reuters) - Dubai World, the investment holding firm of the Dubai government, plans to sell some of its properties in London and New York next year and redeploy some of that capital to real estate in Asia.

The group, which has about $20 billion in real estate assets around the world outside of Dubai, wants to rebalance its portfolio to better weather the global effects of the U.S. subprime crisis, a top executive told Reuters on Tuesday.

"Currently, we are slightly too heavily weighted in the States and in Europe. We want to balance the portfolio slightly more towards Asia," Yu Lai Boon, the group's chief investment officer, said on the sidelines of a briefing in Singapore.

Yu said Asia was "slightly more robust" in terms of withstanding a weakening in global property sentiment.

Dubai World, which has a multi-billion global portfolio that ranges from British port operator P&O to New York luxury retailer Barneys, owns office buildings such as 280 Park Avenue in New York and London's One Trafalgar Square.

/... http://asia.news.yahoo.com/071204/3/3bvf6.html
____

FOREX-Yen, Swiss franc gain as risk aversion resurfaces

NEW YORK, Dec 3 (Reuters) - The yen rose broadly in quiet trade on Monday as continued uncertainty over the fallout from the U.S. credit market turmoil caused investors to reduce exposure to risky carry trades.

...

The euro traded down 0.4 percent at 162.00 yen <EURJPY=>, while the dollar dipped 0.5 percent to 1.1267 against the Swiss franc <CHF=>. The high-yielding Australian dollar fell 0.4 percent to US$0.8801 <AUD=>.

...

Traders also pointed to a report by Moody's Investors Service on Friday that it may be preparing a series of credit-rating cuts related to subprime mortgages that may impact over $100 billion worth of securities.

...

The euro rose 0.2 percent to $1.4664 <EUR=>, still about 3 cents below November's record peaks but recovering some ground after posting its biggest weekly percentage fall in more than three months.

/... http://www.reuters.com/article/marketsNews/idINN0323594020071203?rpc=44&pageNumber=2&virtualBrandChannel=0

____

Europe shares down 1 pct as banks, Nokia weigh

LONDON, Dec 4 (Reuters) - European shares extended losses by mid-morning on Tuesday to trade 1 percent lower as top handset maker Nokia (NOK1V.HE: Quote, Profile, Research) and banks weighed.

...

Royal Bank of Scotland RBOS.L, UBS (UBSN.VX: Quote, Profile, Research), Barclays (BARC.L: Quote, Profile, Research) all fell between 2.7 and 4.6 percent amid continuing worries linked to a credit squeeze.

At 1030 GMT, the FTSEurofirst 300 was down 1.1 percent at 1,504.08 points, with top benchmarks in Britain .FTSE and France .FCHI also down 1.1 percent and Germany's DAX .GDAXI down 0.2 percent.

/... http://uk.reuters.com/article/eurMktRpt/idUKL0459211820071204
____

[ozymandius]

3. no goobermint reports today n/t

[ozymandius]

4. Oil prices rise in Asian trading

SINGAPORE - Oil prices rose Tuesday as investors placed bets on whether OPEC oil ministers would increase production during a meeting later this week.

High prices were supported by comments Monday from Iranian President Mahmoud Ahmadinejad that he opposes a production increase by the Organization of Petroleum Exporting Countries, as well as Libya's oil chief, Shukri Ghanem, who said he does not think the cartel will raise output.

Light, sweet crude for January delivery added 56 cents to $89.87 a barrel in electronic trading on the New York Mercantile Exchange, midafternoon in Singapore.

The contract rose 60 cents to settle at $89.31 a barrel Monday.

Oil prices have dropped about $10 in one week on the belief that 12-member OPEC has all but decided to boost production. But the price drop itself has raised questions about whether oil ministers will follow through during Wednesday's meeting in Abu Dhabi.

Recent OPEC comments about production increases have been divided, with ministers from Venezuela and Qatar suggesting there's no need to boost supplies, while ministers from Indonesia, Nigeria and Kuwait say they're still open to increases.

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

[ozymandius]

5. Report: World food prices to rise

BEIJING - Food prices are set to rise around the globe after years of decline, with climate change making it harder for the world's poorest to get adequate food, according to a report released Tuesday.

Rising global temperatures as well as growing food consumption in rapidly developing countries such as China and India are pressuring the world food system, meaning that food prices will rise for the foreseeable future, according to the International Food Policy Research Institute.

Joachim von Braun, the director of the Washington-based research group, said food prices have been in a declining trend since scientists began developing high-yield plant varieties decades ago, "but the days of falling food prices may be over."

"The last time the world experienced such food price increases was in 1973 to 1974 ... but today the situation is completely different. For one, the climate risk and climate change situation has increased, the climate vulnerability has increased," von Braun told reporters in Beijing.

The institute said in a report that hunger and malnutrition could rise as poor agricultural communities most sensitive to the environment, such as in Africa, are hurt. Dependency on food imports will also increase as cereal yields decline in those countries.

http://news.yahoo.com/s/ap/20071204/ap_on_bi_ge/china_world_food_prices

[AnneD]

25. Ah yes......

The first point of the "Anne's Basic Family Security Plan" _stock your pantry. It's as good as a savings account. We have been having so many year of plenty that folks have forgotten how bad things can get. Having a full pantry allows one to shop around for bargins and actually stabilizes prices for you.

Anne's Basic Family Security Plan

1. A stocked pantry with ideally 1 year's supply of food and water.
2. Cash on hand (currency and portable wealth) at all times. Important documents handy.
3. A special 'bug out' bag-with important documents, rations, and survival gear.

As nutso as this sounds-I have used these on several different occasions (a forest fire, flood, snow-ins, and hurricanes). You just never know.

[Hugin]

32. Don't forget the chocolate!

:9

:hi:

[AnneD]

35. Well....

that goes without saying. Wine, chocolate and spirits are part of any well stocked pantry. Just because these can be barbaric times doesn't mean we become barbarians. Beside chocolate makes a great barter item. Just ask a vet.:rofl:

[kineneb]

33. got space? start a garden.

the "locally grown" movement is not too off base. Even a bed of lettuce or greens helps.

[AnneD]

37. My love for.....

cabbage has grown (groan).:spray: They are the green roses of my garden :loveya:

Russian Sweet and Sour Cabbage Soup


Ingredients
1 head cabbage, cored and cut into wedges
1 1/2 pounds ground lean beef
1 (8 oz) can tomato sauce
1 (14.5 oz) can diced tomatoes
1 onion, diced
2 medium carrots, shredded
2 quarts water, separated
2 tbsp white vinegar
1/2 cup brown sugar
4 beef bouillon cubes
1/2 tsp ground black pepper
3 garlic cloves, minced
1 1/2 tsp salt

Directions
Crumble the beef and place into a large pot. Add the diced tomatoes, tomato sauce, onions, carrots, vinegar, sugar, bouillon cubes, salt and pepper.
Add in 1 qt of water, and bring to a boil. Stir to separate the beef during heating. Once at a boil, cover and simmer for 30 minutes over a low heat. Add in another quart of water, and return the mixture to a slow boil. Stir in the cabbage and garlic then simmer for 25 minutes, until cabbage becomes tender. Place the soup into bowls by ladle, and serve.

My variations-I use a bag of coleslaw mix (instead of the carrots & cabbage).
I use Kelbasa sausage instead of ground beef.
I'm lazy-I throw it into the crock pot, on low. It's ready to eat when I get home. Rye bread completes the meal......It's low cost and delish.

WOW....hope you don't mind a recipe on the SWT. That just came out of nowhere but it seems to fit in. I won't do it again.

[ozymandius]

6. Good morning everyone.

:donut: :donut: :donut:

I got a late start - so need to dash away before spending much time here. Have a wonderful day.

Ozy :hi:

[AnneD]

19. Morning Marketeers.....

:donut: and lurkers. Down here,we got our first taste of winter last night and this morning. Hubby was planing to work as a sub teacher, but after hearing the 10:00pm weather report, he called up and canceled. He decided they weren't paying him enough to leave a warm bed. :spray:

That caused me to reflect on our our differences. I guess as a Nurse, you are instilled with such a sense of duty to your patients that you show up for work despite the perils. When I lived up in the mountains, I can't tell you how many times I made the path for the snow plows. Seriously, I'd be signaling to get on the main road, look into my rear view mirror and see the snowplows 1/4 mi behind me. Now, over the years, I have developed the immune system of an elephant and am seldom absent. Until recently, when I have been late to work or feeling under the weather due to a hot flash, I haven't missed any time at all. Luckily, the state will buy my days back when I retire-and just about every School Nurse I know has gotten a substantial check-even though they only pay half.

About the only thing I know that will keep a Nurse from showing up to work is having recently delivered a child, musculo-skeletal injury, or chemo. Chemo keeps you out a while because it destroys your immune system but a musculo-skeletal injury will destroy your career. I have had bouts with musculo-skeletal injuries but have a great chiropractor on retainer. Hell, I've paid half his mortgage and college tuition for two of his 5 kids, and we frequently socialize together. He has surely extended my career.

So I left hubby in his warm bed-snoring.....Sigh. I long for the day when I can get up at a civilized hour. I get a wonderful taste of it when we have our school breaks. Guess I am ready for our winter break. Well, I must get to work, the wee ones need attention. Stay warm and enjoy the change of the seasons.

Happy hunting and watch out for the bears.

[UpInArms]

7. dollar watch

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

Last trade 75.700 Change -0.252 (-0.33%)

US Fed: Can They Ignore Price Stability In Favor of Growth? The Markets Think So.

http://www.dailyfx.com/story/topheadline/US_Fed__Can_They_Ignore_1196772590512.html

Comments by various FOMC members – including Chairman Bernanke – have led the markets to ramp up speculation that the Fed will indeed cut rates next week. However, in recent days, the lack of fresh dovish rhetoric has left the stock markets floundering, though futures are still pricing in a 60 percent chance of a 25bp cut and a 40 percent chance of a 50bp cut. Will Bernanke & Co. really opt to ignore their price stability mandate? Given the market’s bias, it appears possible, but a re-pricing of this risk could occur on Friday when US NFPs are released. If labor market conditions remain robust enough – suggesting consumption growth will weather the holiday shopping season – the FOMC could surprise everyone and hold off on cutting rates until Q1 2008:

Ben Bernanke, Federal Reserve Chairman (Voting Member)

“The outlook has ... been importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in September and October. We at the Fed will have to remain exceptionally alert and flexible…In making its policy decision, the committee will have to judge whether the outlook for the economy or the balance of risks has shifted materially. In doing so, we will take full account of the implications for the outlook of both the incoming economic data and the ongoing developments in the financial markets.” – November 30, 2007

Donald Kohn, Federal Reserve Vice Chairman (Voting Member)

“Uncertainties about the economic outlook are unusually high right now. In my view, these uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago.” – November 28, 2007

William Poole, Federal Reserve Bank of St. Louis President (Voting Member)

“I would not want people in the markets to believe that I, at any rate, would be so concerned about the moral hazard argument that I wouldn't possibly advocate a 25 basis point or a 50 basis point cut, or whatever might be on the table…Provided that the central bank does not sacrifice long-term price stability, it can and should respond to new information indicating an increased risk of recession.” – December 3, 2007

Richard Fisher, Federal Reserve Bank of Dallas President (Alternate Voting Member)

“There are people at the (FOMC) table, myself included, that are very concerned about inflationary pressure. I don't think we're done in terms of getting it to where we want it to get. At the same time, we have to be very mindful of the fact that in order for capitalism...to continue to function, we have to have a healthy working financial market. And so that is where we presently stand…Obviously, you can't ignore the credit markets ... (but) the Fed will not be bullied by markets…If you look at the broader prices indices, the CPI, the PCE, I'm uncomfortable personally with those numbers.” – November 29, 2007

Janet Yellen, Federal Reserve Bank of San Francisco President (Non-voting Member)

“Since the October (FOMC) meeting, financial conditions have deteriorated, and we have seen some unexpected softening in the economic data. These developments necessitate some rethinking of my growth forecast, and have highlighted the downside skew in the risks to that forecast…additional data bearing on the outlook will become available before the FOMC's meeting next week, and this information must also be factored into an assessment of the economy's prospects.” – December 3, 2007

...more...

Bank of Canada: Will They Cut Interest Rates?

http://www.dailyfx.com/story/bio1/Bank_of_Canada__Will_They_1196717621057.html

Bank of Canada: Will They Cut Interest Rates?

The Bank of Canada is the first central bank to announce their monetary policy decision this week and traders should be prepared for surprises. The market is currently pricing in a 60 percent chance of a quarter point rate cut even though economists do not expect a move. Recent economic data from Canada has been weak and inflation is falling. For the first time since June 2006, consumer prices slipped below their 2 percent target. This will allow the central bank to err on the side of looser monetary policy if they feel that the trend of economic growth warrants it. Also, oil prices continued to fall, which is keeping USDCAD near parity. If the BoC does cut interest rates, we expect an immediate test of 1.0125, which is a very important resistance level. Even if they do not, we expect the central bank to warn about the possibility of a rate cut in the coming months. The Australian dollar is also weaker due to a sharp fall in gold prices and a record breaking trade deficit in the month of October. With the Australian dollar soaring to 23 year highs last month, import growth significantly outpaced export growth. We will have to see if that also translates into stronger retail sales this evening. The New Zealand dollar was the only commodity currency to hold steady against the greenback. There was no economic data released, but the New Zealand dollar is sitting above very important technical support levels.

US Dollar Slips as Mideast Nations Debate their Dollar Pegs

The US dollar is weaker across the board as the members of the Gulf Cooperation Council debate their Dollar Pegs. The two largest economies in the region, the UAE and Saudi Arabia are divided on whether they should abandon the dollar in favor of a basket peg or to continue to ride out the move and risk taking a further hit to the value of their reserve holdings. The UAE is in favor of a currency basket similar to the one that Kuwait has (more details), while Saudi Arabia dismissed this possibility. A revaluation will be negative for the US dollar, but if things stay status quo and Saudi Arabia wins out, then we could see the dollar bounce. Uncertainty about the outcome of the meeting is keeping the dollar under pressure. Also, Federal Reserve officials continue to grow increasingly dovish. Rosengren who is typically a more modest central banker warned that foreclosures is likely to get worse and the US economy will grow “well below” potential in coming quarters. With such gloomy outlooks, the Federal Reserve will have to continue lowering interest rates. The futures market is still pricing in a 40 percent chance of 50bp rate cut. Meanwhile the ISM manufacturing survey was right in line with forecasts today, which was a bit of a disappointment because the rise in the regional indexes signaled a stronger increase. What’s more, a new multi-month low in the employment reading at 47.8 may suggest a dour long-term outlook on demand and production as employers try to trim costs through layoffs and reduced capital spending.

...more...

[UpInArms]

8. US current account narrowing may not slow trade: WTO

http://www.reuters.com/article/businessNews/idUSL0337284920071204?feedType=RSS&feedName=businessNews

GENEVA (Reuters) - A narrowing of the U.S. current account deficit would not necessarily cause a slow-down in global merchandise trade growth, the World Trade Organization (WTO) said on Tuesday.

The impact on world trade growth of a rebalancing of the U.S. current account would depend on the nature of the adjustment, it said in its World Trade Report.

"If the adjustment occurs through an acceleration of the growth of U.S. merchandise exports, with only some modest adjustment on the import side, then the unwinding of the U.S. deficits need not represent an adverse shock to world trade," it said.

Economists believe large current account deficits are unsustainable as in the end foreigners will be unwilling to continue to finance them by accumulating assets in a currency which will come under pressure to decline. The U.S. deficit was running at 6.6 percent of GDP in 2006.

A side effect of the big deficit, which it seems will inevitably narrow, was higher growth in world trade, it said.

...more...

[UpInArms]

9. November auto sales weak

http://news.yahoo.com/s/nm/autos_sales_dc

DETROIT (Reuters) - U.S. auto sales slipped in November, led by an 11 percent drop at General Motors Corp (GM.N), as a weak housing market and higher gasoline prices kept buyers from showrooms and heightened concern that the industry was headed for a deepening downturn.

Retail sales for all three Detroit-based automakers turned lower in November. Executives across the industry cautioned that sales would remain under pressure headed into 2008 because of increasing economic uncertainties.

Both Ford and GM, which have recently clinched cost-cutting labor deals with the United Auto Workers, responded to the sales dip by cutting first-quarter production plans from year-earlier levels.

Ford (F.N) posted a narrow sales gain of 0.4 percent for November, marking its first monthly increase after a full year of unbroken declines. Ford's gain was driven mostly by stepped-up sales of vehicles to commercial fleet operators.

Toyota Motor Corp. (7203.T), which has eclipsed Ford for the No. 2 position in the U.S. market, eked out a slight sales gain of 0.3 percent but saw sales for its luxury Lexus brand drop by 7 percent.

...more...

[UpInArms]

10. Housing mess forces White House reversal

http://news.yahoo.com/s/ap/20071203/ap_on_bi_ge/risky_mortgages_executives

WASHINGTON - A government proposal to freeze interest rates on millions of loans made to risky borrowers reflects political and financial realities of the housing market crisis, analysts say.

Until now, President Bush favored government restraint. But with investors losing millions as Wall Street banks write down billions of dollars in bad home-loan investments amid mounting concerns about economic stability, the White House is pressuring the mortgage industry to offer a sweeping fix for the problem.

The Bush administration is "willing to consider action that would have been inconceivable just weeks ago," mortgage industry consultant Howard Glaser wrote in a research note.

That doesn't mean the rate-freeze approach being promoted by Treasury Secretary Henry Paulson won't face resistance from mortgage industry executives. And some on Wall Street warn of a flood of lawsuits if the government tries to coerce the owners of loans held in complex mortgage securities to focus on long-term rather than short-term returns.

"I don't think (the Treasury plan is) being very well-received at all," said Bert Ely, a banking consultant based in Alexandria, Va. "There are lots of legal issues here that they are not addressing that are in the minds of everybody who works on this stuff."

...more...

[Hugin]

23. Does this mean... REGULATION and ACCOUNTABILITY?

Oh, I crack myself up sometimes... :rofl:

[DemReadingDU]

24. Foreclosures not due to high loan payments. Huh?

12/4/07 Falling prices driving crisis
Fed: Foreclosures not primarily due to high loan payments

The recent spike in home foreclosures in Massachusetts is caused primarily by falling housing prices, and not by rising mortgage payments, according to research released yesterday by the Federal Reserve Bank of Boston.

The contrarian report suggests the common understanding of the foreclosure crisis is somewhat mistaken. Unaffordable loans don't cause foreclosures directly. Even as subprime lending became more common, even when people fell behind on mortgage payments - during the economic downturn in 2001, for example - foreclosures were rare because house prices continued to rise.

In part, people were able to escape trouble by selling their homes at prices high enough to cover their debts. But the research also suggests that troubled borrowers tried harder to make the necessary payments, in the expectation they would profit eventually.

more...
http://www.boston.com/business/globe/articles/2007/12/04/falling_prices_driving_crisis/

[TalkingDog]

27. Um....What?

It wasn't the high loan repayment costs, it was the greed? (ego projection much?)

So if it was falling house prices that caused the problem, what caused the price drop?

Oh, that's right, housing prices were inflated because realtors and bankers saw an opportunity to get rich by nudging up prices and overextending loans which were given to people who would then foolishly wait until after the Ponzi scheme had been revealed to try to get out of the way of all the falling bricks.

Darn those foolish borrowers for not having the inside scoop and getting out before the whole thing went pear-shaped.

Stupidity should be illegal.

My Favorite Master Artist: Karen Parker GhostWoman Studios

[Hugin]

30. The local politicos had $$$ dancing before their eyes as well...

High property values translate into increased Property Taxes.

But, we'll never hear much about this and it'll be a fight to get our property re-appraised to bring the
taxes back in line with the actual value of the property.

All of this so they could keep their promise not to tax their rich buddies.

[UpInArms]

11. Futures point down as financials drag

http://www.reuters.com/article/hotStocksNews/idUSL0454763720071204?sp=true

NEW YORK (Reuters) - Stock index futures fell on Tuesday, indicating a negative open for Wall Street, as large financial stocks fell on uncertainty about the outlook for a credit crisis recovery.

The U.S. Treasury official in charge of debt management said on Tuesday that the process of rebuilding confidence in financial markets will be "long and slow."

Punk Ziegel analyst Richard Bove downgraded Bear Stearns (BSC.N: Quote, Profile, Research), Goldman Sachs (GS.N: Quote, Profile, Research) and Lehman Brothers (LEH.N: Quote, Profile, Research) to "sell" from "market perform," saying the retrenchment under way will force significant adjustments in the way the businesses are being run.

In trading before the open, shares of Bear Stearns were down 1.6 percent at $96.80 and Lehman stock fell 2.2 percent to $60.03. Goldman shares were down 2.1 percent to $222.23.

"The question no one can answer is how much garbage paper is on the books of these big firms. Right now I don't know if they're sitting on a dollar of junk or a billion," said Barry Ritholtz, director of equity research at Fusion IQ in New York.

...more...

[UpInArms]

12. Dow Chemical to close plants, cut 1,000 jobs, take charge

http://www.reuters.com/article/bondsNews/idUSWNAS368120071204

NEW YORK (Reuters) - Dow Chemical Co (DOW.N: Quote, Profile, Research) said on Tuesday it would shut down a number of plants and eliminate about 1,000 jobs to cut costs and direct capital toward businesses with better growth prospects.

The largest U.S. chemical maker said it would incur a related charge of $500 million to $600 million, which includes severance costs and asset write-downs.

The plant shutdowns and job cuts will generate annual savings of about $180 million, the Midland, Michigan-based company said.

...more...

[UpInArms]

13. Mistakes made during credit crunch, bankers say

http://www.reuters.com/article/bondsNews/idUSL0473416720071204?sp=true

LONDON (Reuters) - Top executives from four of the world's biggest banks said mistakes were made during the recent credit-market crunch but told British lawmakers on Tuesday they had not been reckless or failed to tell clients of risks.

"Mistakes were made, but it's also true that conditions that materialized, especially in the subprime mortgage market, are by any standards quite extraordinary," said Gerald Corrigan, managing director and co-chair of risk at Goldman Sachs (GS.N: Quote, Profile, Research).

Corrigan and executives from Citigroup (C.N: Quote, Profile, Research), Deutsche Bank (DBKGn.DE: Quote, Profile, Research) and UBS (UBSN.VX: Quote, Profile, Research) were accused by a cross-party committee of UK members of parliament of losing sight of risks, not explaining complex products to investors and acting recklessly.

Banks had created complex financial instruments that meant the mis-selling of home loans in Chicago could result in the near collapse of British bank Northern Rock (NRK.L: Quote, Profile, Research), the politicians said.

"There is simply no question that over recent years the inner workings of the financial system have become enormously more complicated," Corrigan said, adding this had tightened the links between markets and institutions.

...more...

[Roland99]

15. Well, if they were 'quite extraordinary', why didn't they exercise restraint?

Greedy bastards.

[Hugin]

21. Interesting they speak of it in the past tense...

Must be some kind of misunderstanding, WE'RE STILL IN IT! :eyes:

Didn't PM Churchill have something to say about being at the end of the beginning or at the beginning of the
begining...

These people just don't get it.

[kineneb]

34. amusing use of passive voice

"mistakes were made"

duh...and by whom?

[Karenina]

49. ROFLMAO!!!

Now THAT'S the funniest shit I've read all day!!! :spray:

"There is simply no question that over recent years the inner workings of the financial system have become enormously more complicated..." :rofl::rofl::rofl:

[Buttercup McToots]

14. Fed's Rosengren Questions Use of Libor

http://www.chron.com/disp/story.mpl/ap/fn/5347581.html


So, banks scrambling for cash run up LIBOR. Then, according to this article:
"Resets on subprime ARM loans are typically made at 6.1 percent over Libor, Rosengren said, bringing reset interest rates on subprime loans to 12 percent in some cases, or higher, he said."


LIBOR is run up by banks needing cash....ARM's reset at new higher LIBOR rates...more homeowners default because they can't make payments...banks need more liquidity.....LIBOR is run up by banks needing cash....lather, rinse, repeat.

Whose idea was this? Some bright boy in some bank?

Dec. 3, 2007, 11:03AM
Fed's Rosengren Questions Use of Libor


© 2007 The Associated Press


BOSTON — Federal Reserve Bank of Boston President Eric Rosengren said Monday that the practice of using the Libor rate as a benchmark for adjustable-rate mortgages should be reconsidered.

During a question-and-answer session after a speech about the subprime mortgage debacle, Rosengren said it would make sense to discuss possibly using "some other base rate" as the benchmark.

"Most subprime loan holders have no idea what Libor is," he said.

Libor, the London interbank offered rate, is a short-term borrowing rate between banks. It is used as a benchmark for floating-rate debt, including corporate borrowings and adjustable-rate mortgages.

Due to recent credit market strains partly caused by the subprime problems, Libor has risen recently, even as the Federal Reserve has been lowering its key lending rate. That makes resets on adjustable-rate subprime mortgages even more painful for homeowners.

Resets on subprime ARM loans are typically made at 6.1 percent over Libor, Rosengren said, bringing reset interest rates on subprime loans to 12 percent in some cases, or higher, he said.

"I can't explain why Libor has been elevated," Rosengren said. "When the Fed is easing, Libor tends to move lower with it."

The higher rates in reset subprime mortgages "are a potential problem now, with ability to easily refinance or sell now gone," he said during his speech.

Speaking to reporters after the speech, Rosengren said the extent of the subprime crisis "was a surprise" to everyone, from investors to homeowners to banks to subprime-lending specialists, because it occurred even while the economy was growing at a relatively healthy clip.

But now that the economy is slowing down, he said he's concerned that home foreclosures could worsen. As a result, the continued availability of loans to subprime borrowers is important, Rosengren said.

He also said the Federal Housing Authority should look for ways to better meet subprime borrowers' needs, though he noted that he does not advocate any government bailout of lenders, investors or "reckless" borrowers.


--------------------------------------------------------------------------------

[DemReadingDU]

17. Yesterday's SMW thread discussed LIBOR

There were a few posts about the 3-month LIBOR and 3-month Treasuries from 12/3/07 SMW...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3087389&mesg_id=3087532


Welcome back!
:hi:

[Buttercup McToots]

20. Hi Dem

So busy....I'm in and out...missed
that yesterday...
I'm sitting here listening to the idiot
getting nailed by David Gregory...hee hee
Thanks
:hi:

[AnneD]

38. Some folks...

have all the fun:rofl:

[Demeter]

16. Opening on a Negative Note, I See

Reality is much harder to evade in the winter time.

[Hugin]

22. It's slowly becoming obvious to me that all of the recent Saber Rattling was to keep the oil prices

high.

It's especially obvious after the release of the Intelligence Estimate.

It also explains Unka Dick's chest pains... They always crop up when there's something lurking they don't
want in the headlines. It's such a tired ruse. I was wondering what it was and now I know.

[Demeter]

18. Daily Reckoning Reports: The Credit Contraction

“U.S. credit drying up, raising fear of recession,” reports the front page of the International Herald Tribune . “Financial arteries constrict at fastest pace ever recorded.”

This is a story of a credit contraction – a piece of the big story we’ve been following for the last few weeks.

Do you remember the rule, dear reader? The force of a correction is equal and opposite to the delusion that preceded it. What would you expect to follow the biggest credit expansion of all time? Something pretty dramatic.

“Credit flowing to American companies is drying up at a pace not seen in decades,” continues the report, “threatening the creation of new jobs and the expansion of businesses, while intensifying worries that the economy may be headed for a recession.

“The combined value of two major sources of credit – outstanding commercial and industrial bank loans, and short-term loans known as commercial paper – peaked at about $3.3 trillion in August... By mid-November, such credit was down to $3 trillion, a drop of nearly 9%. Not since the Fed began tracking such numbers in 1973 have these arteries of finance constricted so rapidly. ...”

“This is a very big deal,” said Andrew Tilton, a senior economist at Goldman Sachs.

Yes, dear reader...this is the immoveable object the Fed is up against. It is deflation . And it is a very big deal.

Bankruptcies are running 35% ahead of last year. Foreclosures were up 94% in October, from a year ago. Sears reported its profits had plunged 99%.

Meanwhile, on the other bank of the great Atlantic, the Financial Times offers this:

“New fears for housing in credit collapse.”

Ah yes, that word – collapse – is back. We hadn’t seen it for years. Just this past summer we gave a speech in Canada, regretting the ‘collapse of collapse ’ – meaning, that whenever anything in the financial world threatened to collapse, the financial authorities rushed in to prop it up. Humpty Dumpty could fall off the wall all he wanted; there was always someone there to catch him.

And then, the financial authorities let him slip through their hands.

In England, as in America, the story is virtually identical.

“Banks struggle to find money for mortgages,” continues the FT report. The banks are willing to lend. But they have to borrow too in order to get the money. And three-month inter-bank rates – what banks pay when they borrow from each other – have risen to 6.59%. Banks typically borrow short and lend long. But when short rates are so high, how can they make any money lending for long-term mortgages? They can’t. So they stop lending. And without ready mortgage credit, buyers stop buying houses. And when buyers stop buying houses, house prices fall...and all of a sudden a lot of people are in trouble.

“The first concrete sign of a crunch in credit availability is likely to emerge today when Bank figures are expected to show a large fall in mortgage approvals for October. “

Oh well...something that had to happen sooner or later is bound to happen one day. The credit expansion couldn’t go on forever, after all. Why not today?

[ret5hd]

26. The function of a depression is to restore property to its rightful owners.

Just a quote i read that explains (to me, anyway) the attitudes of the rich.

[Joanne98]

28. Fox Entertainment buys Beliefnet spiritual Web site

SAN FRANCISICO (MarketWatch) -- News Corp.'s Fox Entertainment Group unit said Tuesday it has acquired Beliefnet, a Web site focusing on faith and building spiritual communities. Fox, based in Los Angeles, said Beliefnet will become part of Fox Digital Media. It said the acquisition offers an online platform for Fox Entertainment to distribute content and for News Corp. to expand faith-based businesses. Terms of the acquisition weren't disclosed. Shares of News Corp. traded recently at $21.16, down 41 cents, or 1.9%.
http://www.marketwatch.com/news/story/fox-entertainment-buys-beliefnet-spiritual/story.aspx?guid=%7B1C1EE512%2D2E53%2D4DD6%2D962B%2D6D63325F90E0%7D&dist=morenews

[Joanne98]

29. Sorry it's scratched out. I'm just going to leave it like that.

You can still read it.

[Hugin]

31. Fitting...

Did you cross post this over on 'GodSpace' or 'GodTube'?

That's the only way anyone in the Military will be able to see it.

[TrogL]

36. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-10-23 Tuesday, October 23 1.03381 USD
2007-10-24 Wednesday, October 24 1.02987 USD
2007-10-25 Thursday, October 25 1.03381 USD
2007-10-26 Friday, October 26 1.03961 USD
2007-10-29 Monday, October 29 1.04745 USD
2007-10-30 Tuesday, October 30 1.04888 USD
2007-10-31 Wednesday, October 31 1.05307 USD
2007-11-01 Thursday, November 1 1.05296 USD
2007-11-02 Friday, November 2 1.06838 USD
2007-11-05 Monday, November 5 1.07101 USD
2007-11-06 Tuesday, November 6 1.0819 USD
2007-11-07 Wednesday, November 7 1.09075 USD
2007-11-08 Thursday, November 8 1.07492 USD
2007-11-09 Friday, November 9 1.06553 USD
2007-11-12 Monday, November 12 1.06553 USD
2007-11-13 Tuesday, November 13 1.03745 USD
2007-11-14 Wednesday, November 14 1.0408 USD
2007-11-15 Thursday, November 15 1.01999 USD
2007-11-16 Friday, November 16 1.02807 USD
2007-11-19 Monday, November 19 1.01636 USD
2007-11-20 Tuesday, November 20 1.01543 USD
2007-11-21 Wednesday, November 21 1.01071 USD
2007-11-22 Thursday, November 22 1.01071 USD
2007-11-23 Friday, November 23 1.01143 USD
2007-11-26 Monday, November 26 1.01245 USD
2007-11-27 Tuesday, November 27 1.00321 USD
2007-11-28 Wednesday, November 28 1.00939 USD
2007-11-29 Thursday, November 29 1.00725 USD
2007-11-30 Friday, November 30 0.9993 USD
2007-12-03 Monday, December 3 1 USD


Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9950 0.9957 0.9868 0.9879 -0.0126 -1.26% 
CD.Z07 Dec 2007 0.9960 0.9963 0.9855 0.9882 -0.0122 -1.22% 
CD.H08 Mar 2008 0.9879 0.9898 0.9860 0.9887 -0.0120 -1.20% 
CD.M08 Jun 2008 0.9864 0.9864 0.9864 0.9864 -0.0139 -1.39% 
CD.U08 Sep 2008 0.9905 0.9905 0.9889 0.9889 -0.0112 -1.12% 
CD.Z08 Dec 2008 0.9875 0.9907 0.9875 0.9907 -0.0092 -0.92% 
CD.H09 Mar 2009 1.0005        1.0000 0.9997 +0.0008 +0.08% 
 

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market              Open    High     Low    Last   Change     Pct 
AUSTRALIAN $/CANADIAN $ (NYBOT:AS)
AS.Z07 Dec 2007 0.8754 0.8754 0.8754 0.8811 +0.0011 +0.12%  
AUSTRALIAN $/US$ (NYBOT:AU)
AU.Z07 Dec 2007 0.88150 0.88150 0.87600 0.88130 +0.00135 +0.15%  
CANADIAN $/JAPANESE YEN (NYBOT:HY)
HY.Z07 Dec 2007 109.020 109.020 109.020 110.285 -0.555 -0.50%  
EURO/AUSTRALIAN $ (NYBOT:RA)
RA.Z07 Dec 2007  1.68450 1.68450 1.66465 +0.00080 +0.05%  
EURO/BRITISH POUND (NYBOT:GB)
GB.Z07 Dec 2007 0.7111 0.7111 0.7111 0.7111 +0.0009 +0.13%   
EURO/CANADIAN $ (NYBOT:EP)
EP.Z07 Dec 2007 1.47000 1.47000 1.47000 1.46660 +0.00245 +0.17%  
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.Z07 Dec 2007 161.29 161.68 161.07 161.68 -0.05 -0.03%   
EURO/US$ (LARGE) (NYBOT:EU)
.Z07 Dec 2007 1.48320 1.48360 1.48320 1.46695 +0.00295 +0.20%  

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The March Canadian Dollar was lower overnight as it extends last week's breakout below the 38% retracement level of this year's rally crossing at 100.76. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends the decline off November's high, the 50% retracement level of this year's rally crossing at 97.77 is the next downside target. Closes above the 20-day moving average crossing at 102.36 would temper the near-term bearish outlook in the market. First resistance is the 10-day moving average crossing at 100.73. Second resistance is the 20-day moving average crossing at 102.36. First support is the overnight low crossing at 99.49. Second support is the 50% retracement level crossing at 97.77.

Analysis

The only reason I posted today was I saw a cent jump earlier in the day and wanted to know what was going on. Problem is, with all the wierdities going on, various graphs are busted. Normally it's the one at the top but it's behaving itself for once. However, my detail graph (http://quotes.ino.com/chart/?s=CME_CD.Z07&v=s) is flatlined so I'm still confused.

I'll update if I figure it out.

[TrogL]

44. Bank of Canada cuts key interest rate to 4.25%

http://www.cbc.ca/money/story/2007/12/04/bankrate.html

The Bank of Canada cut its key interest rate by a quarter of a percentage point Tuesday, citing the increased risks to Canada's economy from the weakness south of the border.

...

The chartered banks quickly lowered their prime lending rates by a quarter of a percentage point to six per cent.

The rate cut also led to an immediate drop in the Canadian dollar on foreign exchange markets. The loonie was off more than 1.2 cents to 98.81 cents US at 2 p.m. ET.

[TrogL]

45. Update

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9950 0.9957 0.9858 0.9858 -0.0147 -1.47% 
CD.Z07 Dec 2007 0.9960 0.9963 0.9855 0.9857 -0.0147 -1.47% 
CD.H08 Mar 2008 0.9879 0.9898 0.9860 0.9863 -0.0144 -1.44% 
CD.M08 Jun 2008 0.9864 0.9864 0.9864 0.9861 -0.0142 -1.42% 
CD.U08 Sep 2008 0.9905 0.9905 0.9889 0.9857 -0.0144 -1.44% 
CD.Z08 Dec 2008 0.9875 0.9907 0.9875 0.9853 -0.0146 -1.46% 
CD.H09 Mar 2009 1.0005        1.0000 0.9849 -0.0148 -1.48% 

Analysis

It's been a wierd day so I thought I'd throw in an update.

[AnneD]

39. H&R Block, Cerberus scrap $300M deal

KANSAS CITY, Mo. — H&R Block Inc. said Tuesday that a deal to sell its troubled mortgage lending arm has fallen through, forcing it to scrap most of the $1 billion business.

The Kansas City-based tax preparer and Cerberus Capital Management LP said that they have terminated their agreement, announced in April, for a Cerberus subsidiary to buy Option One Mortgage Corp.

H&R Block is accepting no new mortgage applications and will lay off about 620 employees, close three offices and take a $75 million restructuring charge as it shuts down operations, the company said.

The company said it will honor $30 million worth of existing commitments. Most of these will be eligible for sale to government subsidized Fannie Mae or Freddie Mac, H&R Block said, with the rest sold to investors.

more.....


http://www.chron.com/disp/story.mpl/ap/business/5350565.html


Guess it must be too risky for them...but look who they want to buy it...FannieMae and FreddyMac AKA John Q Public.:eyes:

[AnneD]

40. College seeks to improve switchgrass yield

BROOKINGS, S.D. — Since President Bush slipped the seldom-heard term "switchgrass" into his 2006 State of the Union Address, the prairie grass has been in vogue.

Because it's a perennial crop, it needs less fertilizer, recycling nutrients at the end of every season. It also puts down a deep root system, which helps it combat soil erosion, and adds to soil organic carbon every year.

"Switchgrass is a wonderful crop for the soil and environment," said Anna Rath, vice president of commercial development for California energy crop company Ceres Inc.

<snip>

Ceres, based in Thousand Oaks, Calif., also is working to develop commercial varieties of forage sorghum, miscanthus and energy cane for use as energy crops.

<snip>

http://www.chron.com/disp/story.mpl/ap/business/5349830.html

This is worth keeping an eye on marketeers. These will be the next up and coming companies. They don't come much greener and they will not waste edible resources like ethanol.

[ozone_man]

48. Al Gore slipped that term too

in Inconvenient Truth. It wasn't a slip though. :)

I've got some switch grass growing out back as ornamentals now. But it seems to be a much more efficient energy source for biofuel than corn.

[AnneD]

41. Hedge fund leader's widow, brothers clash over estate

JUPITER, FLA. — A life of private jets and black-tie balls ended with Seth Tobias, a wealthy investment manager and a familiar presence on CNBC, floating face down in the swimming pool of his mansion here.

It was just after midnight on Sept. 4 when Tobias' wife, Filomena, frantically called 911. " By the time the police arrived, she had pulled her husband's body to the edge of the pool, where she cradled his head in her arms, sobbing.

Seth Tobias, who was 44 years old, had apparently suffered a heart attack, his brother Spence said at the time. The police did not consider his death suspicious.


Draining the pool
But now an unfolding drama over Tobias' estate is providing a lurid account of fast money and faster living in the volatile world of hedge funds. Tobias' four brothers and Filomena Tobias are locked in a legal battle over the estate, which is worth at least $25 million. And, in a civil complaint, they have gone so far as to accuse her of murder. The brothers, Samuel, Spence, Scott and Joshua, claim Filomena Tobias drugged her husband and lured him into the pool.

<snip>

http://www.chron.com/disp/story.mpl/business/5349403.html

The writers on strike better be worried. This is reality tv, soaps, and CSI all rolled into one.

[Joanne98]

42. Chiquita banana WTS up 28%

http://finance.yahoo.com/q?s=CQB-WT

I have no idea why!

[AnneD]

43. Maybe...

Bush is having the gang over-cheap shot I know.....

[ozymandius]

46. closing numbers and blather

Dow 13,248.73 Down 65.84 (0.49%)
Nasdaq 2,619.83 Down 17.30 (0.66%)
S&P 500 1,462.79 Down 9.63 (0.65%)
10-Yr Bond 3.8890% Down 0.0060
NYSE Volume 3,343,622,250
Nasdaq Volume 2,079,625,120

4:20 pm : The stock market lost ground for the second straight session, plagued by familiar concerns that stem from the subprime mortgage mess.

Fittingly, the biggest drag on the proceedings Tuesday was the financial sector (-1.9%), which got marked down after J.P. Morgan Chase cut its earnings estimates for a number of brokerages and a Punk Ziegel analyst downgraded Goldman Sachs (GS 215.22, -11.67), Bear Stearns (BSC 93.61, -4.79) and Lehman Bros. (LEH 59.61, -1.77) to Sell from Market Perform.

The cautious views piqued concerns that the financial sector rebound seen last week has run its course and that risks remain elevated for more disappointing earnings news. Briefing.com has maintained an Underweight rating on the financial sector since April.

The loss of leadership from the financial sector weighed heavily on the broader market. Nine out of ten economic sectors ended the session with a loss, but the financial sector was the only area that declined more than 1.0%.

Once again, the utilities sector (+1.0%) exhibited relative strength as low Treasury yields and credit market concerns raised the appeal of the income-oriented stocks.

Conversely, Merck (MRK 58.39, -0.38) and Nokia (NOK 38.92, -1.32) were among the notable stocks that were out of favor Tuesday after both companies provided disappointing guidance.

Merck's EPS forecasts for FY07 ($3.08-3.14) and FY08 ($3.28-3.38) both fell below the current First Call estimates of $3.15 and $3.39, respectively. Nokia for its part actually raised its operating margin target to 16% to 17% from 15% and said it expects global handset demand to grow about 10% next year. Investors, though, were bothered by the added assertion that it sees average selling prices falling.

Specialty retailer AutoZone (AZO 128.80, +20.93) enjoyed a different fate as its stock soared following the company's stronger than expected fiscal first quarter results. Dell (DELL 23.60, -0.34), which jumped early in the session after announcing a $10 billion share buyback, reversed course as the day wore on and ended with a loss.

Like Monday, the indices closed the session on a weak note, finishing near their lows for the day.

Separately, oil prices dropped again, slipping 1.1% to $88.31 per barrel ahead of OPEC's meeting in Abu Dhabi on Wednesday.DJ30 -65.84 NASDAQ -17.30 NQ100 -0.4% R2K -1.0% SP400 -0.4% SP500 -9.63 NASDAQ Dec/Adv/Vol 1943/1038/2.08 bln NYSE Dec/Adv/Vol 2095/1160/1.33 bln

[UpInArms]

47. end of the day mayhem and mess

Dow 13,248.73 65.84 (0.49%)
Nasdaq 2,619.83 17.30 (0.66%)
S&P 500 1,462.79 9.63 (0.65%)
10-Yr Bond 3.889% 0.006

NYSE Volume 3,343,924,750
Nasdaq Volume 2,079,625,125

4:20 pm : The stock market lost ground for the second straight session, plagued by familiar concerns that stem from the subprime mortgage mess.

Fittingly, the biggest drag on the proceedings Tuesday was the financial sector (-1.9%), which got marked down after J.P. Morgan Chase cut its earnings estimates for a number of brokerages and a Punk Ziegel analyst downgraded Goldman Sachs (GS 215.22, -11.67), Bear Stearns (BSC 93.61, -4.79) and Lehman Bros. (LEH 59.61, -1.77) to Sell from Market Perform.

The cautious views piqued concerns that the financial sector rebound seen last week has run its course and that risks remain elevated for more disappointing earnings news. Briefing.com has maintained an Underweight rating on the financial sector since April.

The loss of leadership from the financial sector weighed heavily on the broader market. Nine out of ten economic sectors ended the session with a loss, but the financial sector was the only area that declined more than 1.0%.

Once again, the utilities sector (+1.0%) exhibited relative strength as low Treasury yields and credit market concerns raised the appeal of the income-oriented stocks.

Conversely, Merck (MRK 58.39, -0.38) and Nokia (NOK 38.92, -1.32) were among the notable stocks that were out of favor Tuesday after both companies provided disappointing guidance.

Merck's EPS forecasts for FY07 ($3.08-3.14) and FY08 ($3.28-3.38) both fell below the current First Call estimates of $3.15 and $3.39, respectively. Nokia for its part actually raised its operating margin target to 16% to 17% from 15% and said it expects global handset demand to grow about 10% next year. Investors, though, were bothered by the added assertion that it sees average selling prices falling.

Specialty retailer AutoZone (AZO 128.80, +20.93) enjoyed a different fate as its stock soared following the company's stronger than expected fiscal first quarter results. Dell (DELL 23.60, -0.34), which jumped early in the session after announcing a $10 billion share buyback, reversed course as the day wore on and ended with a loss.

Like Monday, the indices closed the session on a weak note, finishing near their lows for the day.

Separately, oil prices dropped again, slipping 1.1% to $88.31 per barrel ahead of OPEC's meeting in Abu Dhabi on Wednesday.DJ30 -65.84 NASDAQ -17.30 NQ100 -0.4% R2K -1.0% SP400 -0.4% SP500 -9.63 NASDAQ Dec/Adv/Vol 1943/1038/2.08 bln NYSE Dec/Adv/Vol 2095/1160/1.33 bln

3:35 pm : Much of the same as the major indices trade with modest losses.

The S&P 500 Retailing Index (+1.5%) continues to make gains. Online retailer Amazon.com (AMZN 93.97, +3.06) is giving a large boost to the index. There has not been a specific news item that would account for Amazon's gain, as it might be a technical induced trade.

Tomorrow, commodity traders await OPEC's meeting and whether the cartel will decide to increase output. At its last meeting on Sept. 11, OPEC decided to increase output by 500K barrels per day. Also of interest to commodity traders, the government's weekly energy reported will be released at 10:30 ET.

On the economic front, the ISM Services report is slated for release at 10:00 ET. Briefing.com's expectation of 55.0 matches the consensus estimate. DJ30 -52.02 NASDAQ -14.45 SP500 -7.47 NASDAQ Dec/Adv/Vol 1803/1154/1.66 bln NYSE Dec/Adv/Vol 1939/1300/955 mln