STOCK MARKET WATCH, Tuesday December 16

[ozymandius]

Source: du

STOCK MARKET WATCH, Tuesday December 16, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 35
WHERE'S OSAMA BIN-LADEN? 2603 DAYS
DAYS SINCE ENRON COLLAPSE = 2900
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

In recognition of those prescient of the Dow's precipitous return of Bush values (9/29/08): JuneBourder and AnneD

AT THE CLOSING BELL ON December 15, 2008

Dow... 8,564.53 -65.15 (-0.76%)
Nasdaq... 1,508.34 -32.38 (-2.10%)
S&P 500... 868.57 -11.16 (-1.27%)
Gold future... 836.50 +16.00 (+1.91%)
30-Year Bond 3.00% -0.06 (-2.06%)
10-Yr Bond... 2.53% -0.06 (-2.16%)






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

---

Read more: du

[ozymandius]

1. Market WrapUp

Have We Peaked Already?
BY ROB KIRBY

Last Friday, Dec. 12, 2008, CNNMoney.com published an article chronicling the dismal state of the U.S. employment picture, highlighting December's job cut total – which already stands at 115,416.

The article went on to explain that December job losses could be even worse than November, when the Bureau of Labor Statistics (BLS) reported that 533,000 jobs were lost (most since 1974) – since, according to David Wyss, chief economist at Standard & Poor's;

"Generally companies like to make their cuts by the end of the year."

If we can dismiss the human suffering associated with job losses for a moment and instead view “employment” as an “energy consuming activity” – it might help one begin to grasp the true nature of exactly what’s confronting the industrializing and industrialized world.

Could it be that job reductions and the associated recession we are now experiencing are necessary and it has all been purposely ENGINEERED?

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

[ozymandius]

2. Today's Reports

08:30 Core CPI Nov
Briefing.com 0.0%
Consensus 0.1%
Prior -0.1%

08:30 CPI Nov
Briefing.com -1.5%
Consensus -1.3%
Prior -1.0%

08:30 Building Permits Nov
Briefing.com 700K
Consensus 700K
Prior 708K

08:30 Housing Starts Nov
Briefing.com 725K
Consensus 730K
Prior 791K

14:15 FOMC Policy Statement

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

[UpInArms]

17. U.S. Nov. housing starts fall 18.9% to 625,000 annual rate - lowest on record

01. U.S. Nov. consumer energy prices fall 17%
8:30 AM ET, Dec 16, 2008

02. U.S. Nov. core CPI rises 2% year over year
8:30 AM ET, Dec 16, 2008

03. U.S. Nov. CPI rises 1.1% year over year
8:30 AM ET, Dec 16, 2008

04. U.S. core CPI flat in November
8:30 AM ET, Dec 16, 2008

05. U.S. consumer prices fall 1.7% vs. 1.4% drop expected
8:30 AM ET, Dec 16, 2008

06. U.S. Nov. housing starts fall 18.9% to 625,000 annual rate
8:30 AM ET, Dec 16, 2008

07. U.S. Nov. housing starts much weaker than 740,000 expected
8:30 AM ET, Dec 16, 2008

08. U.S. Nov. housing starts at lowest level on record
8:30 AM ET, Dec 16, 2008

09. U.S. Nov. building permits fall 15.6% to 616,000 rate
8:30 AM ET, Dec 16, 2008

10. U.S. Nov. single-family permits fall 12.3% to 412,000
8:30 AM ET, Dec 16, 2008

16. U.S. Nov. housing completions rise 3.3% to 1.08 million pace
8:30 AM ET, Dec 16, 2008

17. U.S. Nov. housing starts fall 18.9% to 625,000 annual rate
8:30 AM ET, Dec 16, 2008

18. U.S. Nov. housing starts much weaker than 740,000 expected
8:30 AM ET, Dec 16, 2008

19. U.S. Nov. housing starts at lowest level on record
8:30 AM ET, Dec 16, 2008

20. U.S. Nov. building permits fall 15.6% to 616,000 rate
8:30 AM ET, Dec 16, 2008

21. U.S. Nov. single-family permits fall 12.3% to 412,000
8:30 AM ET, Dec 16, 2008

22. U.S. Nov. housing completions rise 3.3% to 1.08 million pace
8:30 AM ET, Dec 16, 2008

[UpInArms]

22. U.S. Nov. housing starts plunge 18.9% to record low

http://www.marketwatch.com/news/story/US-Nov-housing-starts-plunge/story.aspx?guid=%7B5107685C%2DD94E%2D4AAE%2DAE85%2DCA46F044B55E%7D

WASHINGTON (MarketWatch) - U.S. home builders slashed construction of new homes in November, driving housing starts far below the worst levels seen in 50 years, the Commerce Department reported Tuesday. New starts dropped an eye-popping 18.9% to a seasonally adjusted annual rate of 625,000, the lowest rate since the Commerce Department began keeping records in 1959. Starts were far lower than the 740,000 expected by economists surveyed by MarketWatch. Building permits fell 15.6% in November to a seasonally adjusted annual rate of 616,000, also a record low. Permits for single-family homes fell 12.3% to a seasonally adjusted annual rate of 412,000, a 27-year low.

[tclambert]

69. Here in Michigan banks are giving houses away when you open a new checking account.

They were offering a choice of a toaster or a foreclosed house, but they ran out of toasters.

[Dr.Phool]

75. I'll keep that in mind.

In case I decide I'd really like to freeze my ass off again.

[UpInArms]

23. U.S. consumer prices fall 1.7% vs. 1.4% drop expected (can anyone say "deflation"?)

http://www.marketwatch.com/news/story/US-consumer-prices-fall-17/story.aspx?guid=%7BF46D8B1C%2DC46E%2D46AA%2D9688%2DF77C9C8C2759%7D

WASHINGTON (MarketWatch) -- U.S. consumer prices fell 1.7% in November, the Labor Department reported Tuesday. Economists surveyed by MarketWatch were expecting the CPI to drop by 1.4%. The core CPI, which excludes food and energy prices, was flat in November. Year over year, the overall CPI has risen 1.1%, while the core has risen 2%.

[UpInArms]

46. CPI slide steepest since '32

http://www.marketwatch.com/news/story/Drop-consumer-prices-most-since/story.aspx?guid=%7B45513693%2D102D%2D4A67%2D8859%2DC73778BF4777%7D

WASHINGTON (MarketWatch) - U.S. consumer prices fell in November at the fastest rate since 1932, the Labor Department reported Tuesday.

The U.S. consumer price index fell by a seasonally adjusted 1.7%, the Labor Department reported Tuesday, the biggest drop since the government began adjusting the CPI for seasonal factors in 1947.

On a non-seasonally adjusted basis, the CPI fell by 1.9%, the biggest decline since January 1932, at the nadir of the Great Depression.

The seasonally adjusted core CPI was flat in November.

Economists surveyed by MarketWatch were expecting the CPI to fall by 1.4%. They forecast that the core CPI would rise by 0.1%. See Economic Calendar.

The CPI data is one of the last pieces of the economic puzzle that the Federal Reserve will have to mull before its announcement about interest rates later Tuesday. The policy-making Federal Open Market Committee is almost universally expected to cut its target for overnight interest rates to 0.5% from 1%. See full story.

U.S. stock market futures were pointing higher ahead of the decision. See full story.

Food prices rose by 0.2% in November, while energy prices plunged 17%. Gasoline prices fell 29.5%.

The cost of owning a house, meanwhile, rose 0.3% in November.

Over the past year, overall consumer prices have risen by 1.1%. Core prices, meanwhile, have risen by 2%.

...more...

[Ghost Dog]

33. Ufff. n/t

[UpInArms]

27. RPT-TABLE-US chain store sales fell 1.4 pct last week

http://www.reuters.com/article/bondsNews/idUSN16135120081216

NEW YORK, Dec 16, (Reuters) - Redbook Research on Tuesday
released the following seasonally adjusted weekly data on U.S.
chain store sales:

Year-over-year: Week (w/e 12/13/08 vs year ago)       -1.4 pct
Year-over-year:Month (December 2008 vs December 2007) -1.1 pct
Month-over-month: (December 2008 vs November 2008)    -0.7 pct
 The Johnson Redbook Retail Sales Index is a sales-weighted
index of year-over-year same-store sales growth in a sample of
large U.S. general merchandise retailers representing about
9,000 stores.

[UpInArms]

53. U.S. Nov. trimmed CPI flat, up 2.7% in past year

04. U.S. Nov. trimmed CPI flat, up 2.7% in past year
11:03 AM ET, Dec 16, 2008

05. U.S. Nov. median CPI up 0.2%: Cleveland Fed
11:03 AM ET, Dec 16, 2008

[UpInArms]

64. FOMC cuts fed funds rate to range of 0% to 0.25% (someone hold my hair, please?)

04. FOMC cuts fed funds rate to range of 0% to 0.25%
2:21 PM ET, Dec 16, 2008

05. Fed will use 'all available tools' to promote growth
2:21 PM ET, Dec 16, 2008

06. FOMC statement details plans for quantitative easing
2:21 PM ET, Dec 16, 2008

07. Fed to flood financial system with money
2:21 PM ET, Dec 16, 2008

08. FOMC to keep funds rate 'exceptionally low' for some time
2:21 PM ET, Dec 16, 2008

09. FOMC to purchase large quantities of agency debt, securities
2:21 PM ET, Dec 16, 2008

10. Fed to keep its balance sheet at 'high level'
2:21 PM ET, Dec 16, 2008

16. FOMC says inflation expected to moderate
2:21 PM ET, Dec 16, 2008

17. Fed considers buying longer-term Treasurys
2:21 PM ET, Dec 16, 2008

18. Fed to consider other ways to support economy
2:21 PM ET, Dec 16, 2008

19. FOMC decision unanimous
2:21 PM ET, Dec 16, 2008

[ozymandius]

3. Oil prices rise above $45 ahead of OPEC meeting

SINGAPORE – Oil prices rose above $45 a barrel in Asia on Tuesday, a day before investors expect OPEC to announce a big production cut.

Light, sweet crude for January delivery was up 53 cents to $45.04 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell overnight $1.77 to settle at $44.51.

Investors are looking to the Organization of Petroleum Exporting Countries, which accounts for 40 percent of global supply, to announce a substantial reduction of output quotas at its meeting Wednesday in Algeria.

OPEC President Chakib Khelil suggested Monday the group may slash as much as 2 million barrels a day, equaling a cut at the cartel's last Algeria meeting four years ago.

....

In other Nymex trading, gasoline futures rose 1.30 cents to $1.05 a gallon. Heating oil gained 0.24 cent to $1.46 a gallon while natural gas for January delivery fell 7.1 cents to 5.57 per 1,000 cubic feet.

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

[ozymandius]

4. Fed ready to slash rates amid deepening recession

WASHINGTON – As unemployment rises painfully higher and nest eggs are shattered, the Federal Reserve is prepared slash a key interest rate — perhaps to an all-time low — in a desperate bid to stem the country's economic slide.

With the Fed's key rate dropping ever closer to zero, the central bank is moving into uncharted territory.

Nonetheless, Fed Chairman Ben Bernanke has made it clear the Fed isn't running out of ammunition to fight the worst financial crisis since the 1930s. It is exploring using tools — other than rate cuts — to revive the economy. New insights on that front could be revealed when Bernanke and his colleagues wrap up a two-day meeting Tuesday.

....

Many economists predict the Fed will cut the funds rate in half — to just 0.50 percent. A few think the Fed could opt for an even more forceful action — lowering rates by a whopping three-quarters percentage point or more. If that larger cut occurs, it would be the lowest on records that track the monthly average of the funds rate going back to 1954. The funds rate is the interest banks charge each other on overnight loans.

http://news.yahoo.com/s/ap/20081216/ap_on_bi_ge/financial_meltdown

[ozymandius]

5. World markets climb before expected Fed rate cut

HONG KONG – World stocks markets edged higher in cautious trade Tuesday ahead of an expected interest rate cut from the Federal Reserve.

.....

Mainland China's Shanghai's key index rose 0.5 percent to 1,975.01, and South Korea's Kospi edged up 0.3 percent to 1,161.56.

Japan's Nikkei 225 stock average fell 96.64 points, or 1.1 percent, to 8,568.02. Australia's benchmark index declined about 1 percent.

In Europe, Britain's FTSE 100 index was 1 percent higher, Germany's DAX added 1.6 percent and the CAC 40 in France climbed 1.5 percent.

http://news.yahoo.com/s/ap/20081216/ap_on_bi_ge/world_markets

[Ghost Dog]

10. Yes. Europe shares up after euro zone PMI, UK inflation

Tue Dec 16, 2008 4:43am EST LONDON, Dec 16 (Reuters) - European shares gained 1 percent in morning trade on Tuesday, reversing early losses after euro zone manufacturing and services activity deteriorated by less than forecast in December.

UK consumer price inflation slowed less than expected in November, official data showed, but is still forecast to fall sharply soon because of a sales tax cut and falling fuel prices.

By 0936 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top European shares was up 0.95 percent at 835.14 points, having traded as low as 822.33 points.

/.. http://www.reuters.com/article/marketsNews/idCALG67117220081216?rpc=44

[Ghost Dog]

12. Cadbury warns of slower growth as downturn bites

Tuesday December 16, 6:47 am ET LONDON (Reuters) - British confectionery giant Cadbury (LSE:CBRY.L - News) on Tuesday warned of slower growth and retailer destocking as the economic downturn starts to bite into the chocolate eating and gum chewing habits of consumers.

The London-based company, maker of Dairy Milk chocolate, Trident gum and Halls cough drops, said that with weakening economic conditions in the fourth quarter, some markets like continental Europe and North America were seeing slower growth.

"Consumers are still eating more chocolate and chewing more gum, but not across as many markets," said Chief Executive Todd Stitzer on a conference call after a trading update.

He highlighted "softening" in North America with underlying revenue growth of around 5 percent in the fourth quarter after near 10 percent growth in recent years, while its key French and Spanish gum markets in Europe had shown some declines.

Overall, the group reiterated that it expects 2008 revenue growth to be at the top end of its target range of 4 percent to 6 percent, and to see higher margins this year.

But this disappointed some analysts who had looked for 7 percent growth after Cadbury reported a similar revenue rise for the first nine months of 2008 as it pushed through big price rises for its chocolate, candy and chewing gum.

/... http://biz.yahoo.com/rb/081216/business_us_cadbury.html?.v=1

... Some 'fog in the channel'? :)

[tclambert]

71. "downturn bites?"

Methinks there is a nougat of punnery in the smooth, creamy filling of this story.

[Ghost Dog]

81. Heh. You've got a sense of (maybe a bit dry, twisted, on account of 'history')

Humor, too.

;-)

[ozymandius]

6. Shock waves spread from Madoff scandal

NEW YORK/LONDON (Reuters) – Shock waves from Bernard Madoff's alleged fraud spread globally on Monday, as charities, wealthy individuals and banks disclosed losses from the prominent Wall Street trader's investment management business.

Britain's HSBC Holdings Plc was the latest bank to join the growing list, saying it had exposure of around $1 billion, making it one of the biggest victims of the alleged $50 billion fraud.

Royal Bank of Scotland Group Plc and Man Group Plc in the United Kingdom, Japan's Nomura Holdings Inc and France's Natixis SA also said they were hit by the worldwide scandal.

....

Under U.S. bankruptcy code, investors that pulled money out of a fraudulent fund up to two years before it went under must give their money back, if they knew or should have known the fund was bogus, Winston & Strawn's Marwil said. And state law typically broadens that window to four to six years.

http://news.yahoo.com/s/nm/20081215/bs_nm/us_madoff

[ozymandius]

7. Judge signs order to protect Madoff investors

NEW YORK – A federal judge has signed an order saying investors who may have been duped in one of Wall Street's biggest frauds need the protection of the Securities Investor Protection Act. Judge Louis Stanton also directed that proceedings to liquidate the assets of Bernard L. Madoff Investment Securities LLC be moved to bankruptcy court.

http://news.yahoo.com/s/ap/20081215/ap_on_bi_ge/wall_street_arrest

[54anickel]

9. Should be an interesting test of the relatively young LLC moniker. We'll need to get the popcorn

wagon set up. :popcorn:

On edit, check out Bernie's website. Seems the court order is now posted there.

http://www.madoff.com/

[Robbien]

18. They can claim up to $100,000 for their cash balances and up to $400,000 for any securities

registered in their name.

Problem is, Madoff didn't buy and register any securities. All statements were just made up.

[tclambert]

73. The billionaire investors won't be happy with that.

And if banks and billionaires were fooled by this scam, who can blame regular investors who fell for it? Answer: Republicans. It's always the little guy's fault.

[tama]

34. Sweet

Protect the criminals, many of whom KNOWINGLY participated in a crime - Ponzi scheme - and collected big returns until it collapsed. Show no mercy.

[machI]

106. .

[kickysnana]

20. Hedge Fund Scam = tarbaby= the scam that keeps on taking n/t

[Robbien]

21. Ha! Firms are now rushing to let people know they were NOT invested in Madoff

Firms That Did Not Invest With Madoff

* “Hennessee Group does not have nor have we ever invested client money in the Bernard Madoff funds.” (Source: email from Hennesse Group)

* “The purpose of this email is to confirm that no funds managed by Liongate Capital Management have any investment in vehicles managed or advised by Bernard L. Madoff Investment Securities or related companies.” (Source: email from Liongate Capital)

* Goldman Sachs Group Inc. said it had no exposure. (Source: Firm statement)
* U.K. insurer Standard Life’s investment arm Standard Life Investments said Monday it has no exposure to Bernard L. Madoff Investment Securities. (Source: Morningstar)

* Florida-base fund of hedge funds firm PDP Capital says, “PDP Global Funds did not have any exposure to Bernard Madoff or any of his funds.” (Source: email from PDP Capital)

* A Babcock & Brown managed fund, Everest Babcock & Brown Alternative Investment Trust, says it has no exposure to a collapsed pyramid investment scheme operated by U.S. investment broker Bernard Madoff. (Source: The Age)

* Credit Suisse Group AG and UBS AG, Switzerland’s two biggest banks, said they don’t have material exposure to funds run by Bernard Madoff, the investment adviser arrested last week in an alleged $50 billion fraud. (Source: Bloomberg News)

* BlackRock Inc. said it has no exposure. (Source: Firm statement)

* European firm Salus Alpha said, "We did not get any inquiry form existing investors since they know that all funds Salus Alpha manages are fully regulated under UCITS III and do invest in liquid alpha strategies through managed accounts only and are therefore protected at all times." (Source: email from firm)


http://www.finalternatives.com/node/6366

[Hugin]

41. Gee, I guess we need to check those companies next and find out why...

They're probably running their very own Ponzi Scheme.

[tclambert]

76. Sometimes I think the whole stock market is a Ponzi scheme.

As long as new customers (suckers) keep buying in, it works. If people stop buying, prices plummet and the whole thing falls apart.

[Hugin]

79. It certainly looks that way in the Markets current manifestation.

Where their valuations are totally divorced from the 'real' economy of value creation via manufacturing and labor.

Restoring the value of experience and somehow putting a value on innovation would help too.

[sarcasmo]

100. Great minds think alike.

[Ghost Dog]

42. Good list, thanks for a start.

That last one looks a bit wonky, though: "protected at all times."

Humm.

[UpInArms]

25. Madoff case seen fueling attacks on the SEC (no regulation or investigation)

http://www.reuters.com/article/newsOne/idUSTRE4BF00U20081216?sp=true

WASHINGTON (Reuters) - The $50 billion fraud allegedly committed by broker Bernard Madoff is a major embarrassment for the U.S. Securities and Exchange Commission and adds to questions already being asked about the regulator's competence.

The SEC's inability to uncover the scandal until Madoff's sons went to authorities last week comes at a particularly bad time for the SEC and its Chairman, Christopher Cox. They have already been accused by some lawmakers and market experts of being asleep at the wheel while the credit crisis exploded on Wall Street.

The agency's future existence as a separate agency is already under threat as Washington looks at overhauling the regulation of the financial services industry.

"This will be profoundly embarrassing for the SEC," said Columbia University law school professor John Coffee, who has been critical of the agency for failing to properly regulate the failed investments banks. "Congress will predictably give them little mercy."

Madoff, a former Nasdaq Stock Market chairman, was arrested and charged last week with running a massive "Ponzi" scheme using his investment advisory firm.

A rapidly growing number of banks, investment funds, charities and wealthy individuals disclosed on Monday that they had invested in companies controlled by Madoff.

There had already been a number of red flags about the way Madoff operated his investment business going back many years, including an article in the financial newspaper Barron's in 2001 that questioned how Madoff made stunning double-digit returns year after year.

The Wall Street Journal also reported on Friday that Harry Markopolos, who years ago worked for a rival firm, researched Madoff's stock-options strategy and was convinced the results likely were not real. Markopolos pursued his accusations over the past nine years, dealing with both the New York and Boston offices of the SEC, according to documents he sent to the SEC, the newspaper said.

...more...

[Robbien]

32. Levitt Says S.E.C. Isn’t to Blame for Madoff

Ex SEC chairman Arthur Levitt Jr. “At this point, I don’t see any evidence that the S.E.C. dropped the ball.” The S.E.C. under his watch did not ignore red flags about Madoff's operation. Levitt also rejected allegations that he and Mr. Madoff were friends.

“I knew Bernie the way I know Sandy Weill or Tully,” he said. “He received no special breaks from the commission.”


http://dealbook.blogs.nytimes.com/2008/12/16/levitt-says-sec-isnt-to-blame-for-madoff/



Levitt is now an adviser to Carlyle Group.

[Hugin]

39. "Levitt is now an adviser to Carlyle Group." It takes one to know one I guess.

;)

[Ghost Dog]

45. Did this man ever see any 'inconvenient' evidence anywhere?

Disowns an (alleged) friend. Can we hear a cock crowing three times, here?

[UpInArms]

36. Madoff 'Tragedy' Said to Have Escaped Scrutiny by SEC

http://www.bloomberg.com/apps/news?pid=20601213&sid=ajvrHOJCMQPk&refer=home

Dec. 15 (Bloomberg) -- U.S. regulators never inspected Bernard Madoff’s investment advisory business, alleged to be a Ponzi scheme that cost investors $50 billion, after he subjected it to oversight two years ago, people familiar with the case said.

The Securities and Exchange Commission hadn’t examined Madoff’s books since he registered the unit with the agency in September 2006, two people said, declining to be identified because the reviews aren’t public. The SEC tries to inspect advisers at least every five years and to scrutinize newly registered firms in their first year, former agency officials and securities lawyers said.

Madoff, 70, who had advised the SEC how to regulate markets and donated regularly to politicians, was arrested Dec. 11 and charged with operating what he told his sons was a long-running Ponzi scheme in the New York-based firm’s business advising rich people, hedge funds and institutions. His ability to avoid detection may fuel debate about the SEC’s effectiveness and the adequacy of its resources for policing money managers.

“Given what the SEC claims is the magnitude of the fraud, this is something you would hope an inspection would have uncovered,” said Mercer Bullard, a University of Mississippi law professor and former mutual-fund attorney at the SEC. “It’s hard to imagine a fraud of this alleged size not being accompanied by significant and pervasive compliance problems.”

Unregistered Business

Federal officials investigating Madoff have found evidence he ran an unregistered money-management business along with his firm’s brokerage and investment-advisory units, said two people familiar with the matter who declined to be identified because the probe isn’t public. Madoff had kept his firm’s financial statements under lock and key and was “cryptic” about its advisory activities when discussing them with employees, the SEC said in a lawsuit against him last week.

Authorities are examining why Madoff’s wife, Ruth Madoff, is listed on transactions under scrutiny, the people said, emphasizing they haven’t determined that she or other people did anything wrong.

...more...

[Hugin]

38. Haha! Does the current SEC scrutinize anyone?

:rofl:

Oh, Wait... Probably the common folk... Wouldn't do for them to get ahead.

Oh, and Maybe the Unions... But, none of those Rarefied-Air-Breathing Can-Do-No-Wrong Corporate Elite!

[UpInArms]

48. The Madoff Saga: Perils of Fraudulent Conveyance

http://www.informationarbitrage.com/2008/12/the-madoff-saga-perils-of-fraudulent-conveyance.html

Say you were an investor in Madoff's funds. A few years back you decided to diversify. You asked Madoff for your money back and you got it. You then invested the proceeds in an array of other assets. Madoff then goes bust in a massive fraud. One day you get a letter from a bankruptcy trustee. The letter says that you need to repay a large chunk of your original investment in order to satisfy the claims of other investors who were less fortunate (or smart) than you. Is this fair? Is this right?

The concept being applied by the Court and the bankruptcy trustee is called Fraudulent Conveyance:

The basic structure and approach of the Uniform Fraudulent Conveyance Act are preserved in the Uniform Fraudulent Transfer Act. There are two sections in the new Act delineating what transfers and obligations are fraudulent. Section 4(a) is an adaptation of three sections of the U.F.C.A.; § 5(a) is an adaptation of another section of the U.F.C.A.; and § 5(b) is new. One section of the U.F.C.A. (§ 8) is not carried forward into the new Act because deemed to be redundant in part and in part susceptible of inequitable application. Both Acts declare a transfer made or an obligation incurred with actual intent to hinder, delay, or defraud creditors to be fraudulent. Both Acts render a transfer made or obligation incurred without adequate consideration to be constructively fraudulent - i.e., without regard to the actual intent of the parties - under one of the following conditions:

(1) the debtor was left by the transfer or obligation with unreasonably small assets for a transaction or the business in which he was engaged;

(2) the debtor intended to incur, or believed that he would incur, more debts than he would be able to pay; or

(3) the debtor was insolvent at the time or as a result of the transfer or obligation.

In my career I always thought of this as being something brought about by corporations in an attempt to disadvantage certain investors, e.g. the split of Marriott International and Host Marriott, with Host Marriott bondholders getting an instant downgrade by being left with a heavily leveraged capital structure. A different example in the investment world is when hedge funds enter into "side letter" agreements with certain investors, providing them with preferential redemption rights in order that they can exit without regard to the customary lock-ups to which other investors are subject. The aggrieved parties in the Madoff case, however, are individuals and firms with no knowledge of the fraud being perpetrated and with no preferential rights. Every investors' right to redeem (or not to invest) appeared to be just the same as any other. So why should those who got out be forced to suffer the same fate as those who didn't, even though they were operating with exactly the same information and with the same rights?

The template for this kind of treatment was set in the Bayou case, where the fraudulent conveyance concept was used to claw back funds from investors who had exited as far back as two years prior to its implosion. It seems to me that this interpretation could have a chilling effect on asset managers in general and hedge funds specifically. I recently redeemed from a few hedge funds because, well, I wanted to. I don't know anything special. I just want to deploy my assets elsewhere. Does this mean that I need to be worried that I might get a letter in a few years asking me to repay a portion of what I've redeemed because a fraud was subsequently determined to have taken place? Investors can't place money worrying about stuff like this. If there is an even playing field, the chips have to fall where they may. It is no different than a game of musical chairs: everyone has an even chance, but when the music stops some are left without chairs. It sucks but it is what it is.

...more...

[tclambert]

78. So the theme of lax regulation, or sleepy regulators, leading to financial disaster continues.

Have Republicans tried to blame Barney Frank yet?

[Hugin]

37. Looks like they're going for the 'lone gunman' theory here.

When it's pretty obvious he isn't/wasn't the only game in town.

But, TPTB need a scapegoat.

Next, they'll be blaming the whole damn disaster on Madoff.

I imagine many High-Powered "Market Makers" (A concept I detest, BTW) are right now silently thinking...
"Except for the grace-of-Gawd, there goes I..."

[Ghost Dog]

54. "I wouldn't touch that area with a ten-foot barge-pole"

I thought, about six years ago when one of my banks offered a "fund of (hedge) funds" deal.

Due dilligence? You must be joking. Seemed to me that only a few 'insiders' knew what was going on inside some of those 'black boxes'. Very little (like, zero) data available. Talk about non-transparent.

It just didn't pass my "smell-test". Quite obviously. ('Though, I also know nothing).

[tclambert]

85. No, think man! There has got to be a way to blame the Democrats!

Somehow, Obama was behind it all. And we certainly don't need more regulation to prevent other cases. The free market is ideal. No businessman would ever try to profit by hurting others. And they'd never, ever commit a crime. At least not without first paying lobbyists to get a law passed making it legal. It must be Clinton's fault. Bill or Hillary, take your pick.

I was gonna ask how many of these things they are actually saying over on freerepublic.com, and I was shocked. While they are complaining that Madoff contributed to the campaigns of Hillary Clinton, Chuck Schumer, and Charles Rangel, and that some Democratic Senators are rich (aren't all Senators rich?), most of the comments almost sound populist. They are mostly outraged that the little guys may get stuck paying the bill again for the mistakes of the wealthy, and the wealthy will get off without losing anything. They seem to think the wealthy are all Democrats now, though. Weird.

[TalkingDog]

67. Heard on NPR

on one of the daily shows.

(paraphrasing)
There is an idea that when one of these scandals comes to light, it usually isn't the only one and it usually isn't the biggest.


Well, if there are others that are bigger and further reaching.... :wow:

[ozymandius]

8. Stock futures mixed ahead of Goldman and Fed

(Reuters) – Stock index futures pointed to a mixed open on Wall Street on Tuesday, as investors awaited quarterly results from embattled Goldman Sachs (GS.N) and an interest rate decision by the Federal Reserve.

* At 4:00 a.m. EST S&P 500 March futures were up 0.02 percent, Dow Jones futures were down 0.2 percent and Nasdaq 100 futures were flat.

* Goldman Sachs is expected to report a quarterly loss of as much as $2.5 billion, hit by the falling value of many of its investments.

* The Fed is expected to lower interest rates closer to zero on Tuesday and point toward emergency tools it could deploy to end a year-long recession, with room to cut borrowing costs running out.

http://news.yahoo.com/s/nm/20081216/bs_nm/us_markets_stocks

[Festivito]

11. Debt: 12/12/2008 10,597,068,737,927.10 (DOWN 816,321,531.60) (.6 FICA, .2 public)

(No borrowing for a month! How are they paying bills? Quietly taking it from retiring debt? Actual debt reduction average for a month (of course after running the debt very high, it now comes down a bit. Good day.)

= Held by the Public + Intragovernmental(FICA)
= 6,390,698,622,849.38 + 4,206,370,115,077.72
DOWN 182,958,692.63 + DOWN 633,362,839.05
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 22 reports in the last 30 days.
The average for the last 22 reports is -974,540,666.25.
The average for the last 30 days would be -714,663,155.25.

There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 50 reports in 73 days of FY2009 averaging 11.45B$ per report, 7.84B$/day.

PROJECTION:
GWB** must relinquish the presidency in 39 days.
By that time the debt could be between 10.6 and 10.9T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
12/12/2008 10,597,068,737,927.10 GWB (UP 4,868,872,941,745.53 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 572,343,841,014.70 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/21/2008 -000,151,096,322.01 ---
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********
12/01/2008 +038,288,359,563.07 ------------********** Mon
12/02/2008 +000,199,375,927.74 ------------********
12/03/2008 -000,525,799,120.43 ---
12/04/2008 -022,902,653,130.86 -
12/05/2008 -000,187,074,568.06 ---
12/08/2008 -000,759,942,653.72 --- Mon
12/09/2008 +000,031,558,514.41 ------------*******
12/10/2008 +000,087,731,393.17 ------------*******
12/11/2008 -019,940,834,952.80 -
12/12/2008 -000,182,958,692.63 ---

-3,228,270,768.44 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $932,436,934,668.03 in last 85 days.
That's 932B$ in 85 days.
More than any year ever, except last year, and it's 92% of that highest year ever only in 85 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 85 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3645310&mesg_id=3645324

[Festivito]

72. Debt: 12/15/2008 10,655,601,512,061.10 (UP 58,532,774,134.00) (Big again)

(No borrowing for a month! Then watching it drop, now back up. The FICA down 30B two reports ago, now up30B. The public debt down 20B now up 28B. What are they doing over there, laundering money? Have a good time today.)

= Held by the Public + Intragovernmental(FICA)
= 6,418,685,498,877.51 + 4,236,916,013,183.68
UP 27,986,876,028.13 + UP 30,545,898,105.96
(NOTE: Excel 2007 cannot handle ten-trillion plus to the penny. It zeroes the penny.)

Source: Debt to the penny:
http://www.treasurydirect.gov/NP/BPDLogin?application=np

THINKING IN BILLIONS: 3 or 4 dollars per billion in a 300-Million person America.
If every American, man, woman and child puts in $3.33 each THAT'S 1B$.
A family of three: Mom, Dad, Child: THEIR SHARE IS TEN BUCKS in a 1B$ federal program.
I hope that is clear. However, I'd suggest using $3 per 1B$ to underestimate it.
Use $4 per 1B$ to overestimate the cost when thinking: Is a federal program worth it?
Aid to Dependant Children: 2B$/yr =$8/yr(a movie a year) Family of 3: $24/yr(an hour of bowling)
(I hate those end to end dollars to the moon and back, or years to spend $100/second. Just say'n)
If you read this and have a suggestion or comment, good or bad, I'd love to see it.

ANALYSIS:
There were 21 reports in the last 30 to 31 days.
The average for the last 21 reports is 1,799,758,448.85.
The average for the last 30 days would be 1,259,830,914.20.
The average for the last 31 days would be 1,219,191,207.29.
There were 252 reports in 365 days of FY2007 averaging 1.99B$ per report, 1.37B$/day.
There were 253 reports in 366 days of FY2008 averaging 4.02B$ per report, 2.78B$/day.
There were 51 reports in 76 days of FY2009 averaging 12.37B$ per report, 8.30B$/day.

PROJECTION:
GWB** must relinquish the presidency in 36 days.
By that time the debt could be between 10.7 and 11.0T$.
It could be higher. It could be lower.

HISTORICAL:
President's term begins and ends on Jan 20.
(Guess who might want to hide the Reagan Bush years. Jan 20 data is missing before 1993.)
01/20/1993 _4,188,092,107,183.60 WJC Inaugural
01/22/2001 _5,728,195,796,181.57 WJC (UP 1,540,103,688,997.97)
12/15/2008 10,655,601,512,061.10 GWB (UP 4,927,405,715,879.53 so far since Bush took office.)

Fiscal Year ends: Sep 30
Borrowed in FY1993: (Maybe later.)
Borrowed in FY1994: 281,261,026,873.94
Borrowed in FY1995: 281,232,990,696.07
Borrowed in FY1996: 250,828,038,426.34
Borrowed in FY1997: 188,335,072,261.61
Borrowed in FY1998: 113,046,997,500.28
Borrowed in FY1999: 130,077,892,735.81
Borrowed in FY2000: _17,907,308,253.43 Bill alone
Borrowed in FY2001: 133,285,202,313.20 Bill and George
Borrowed in FY2002: 420,772,553,397.10 All George
Borrowed in FY2003: 554,995,097,146.46
Borrowed in FY2004: 595,821,633,586.70
Borrowed in FY2005: 553,656,965,393.18
Borrowed in FY2006: 574,264,237,491.73
Borrowed in FY2007: 500,679,473,047.25
Borrowed in FY2008: 1,017,071,524,650.01
Borrowed in FY2009: 630,876,615,148.70 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
11/24/2008 -000,086,920,504.20 ---- Mon
11/25/2008 +001,468,316,558.23 ------------*********
11/26/2008 +000,650,427,812.76 ------------********
11/28/2008 +000,783,239,406.89 ------------********
12/01/2008 +038,288,359,563.07 ------------********** Mon
12/02/2008 +000,199,375,927.74 ------------********
12/03/2008 -000,525,799,120.43 ---
12/04/2008 -022,902,653,130.86 -
12/05/2008 -000,187,074,568.06 ---
12/08/2008 -000,759,942,653.72 --- Mon
12/09/2008 +000,031,558,514.41 ------------*******
12/10/2008 +000,087,731,393.17 ------------*******
12/11/2008 -019,940,834,952.80 -
12/12/2008 -000,182,958,692.63 ---
12/15/2008 +027,986,876,028.13 ------------********** Mon

24,909,701,581.70 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $990,969,708,802.03 in last 88 days.
That's 991B$ in 88 days.
More than any year ever, except last year, and it's 97% of that highest year ever only in 88 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 88 DAYS NOT 365.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock

(Debt to the penny keeps changing. Stuff is missing. Best to keep our own history.) LAST REPORT:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3646824&mesg_id=3646863

[Ghost Dog]

13. Worth re-quoting:

... "In the 21st century, we know that the future of our economy and national security is inextricably linked with one challenge: energy," Obama told a news conference. "All of us know the problems that are rooted in our addiction to foreign oil. It constrains our economy, shifts wealth to hostile regimes and leaves us dependent on unstable regions."

"To control our own destiny, America must develop new forms of energy and new ways of using it. And this is not a challenge for government alone -- it's a challenge for all of us."

/... http://www.reuters.com/article/topNews/idUSTRE4BF0QZ20081216

[bread_and_roses]

14. "the future of our economy and national security is inextricably linked " with military spending

- which, yes, has a close relationship to our gluttonous use of energy, but also to a vast system of exploitation and oppression that keeps goods and food flowing here while around the globe others starve and freeze.

I am heartened by Obama's pronouncements on energy, green jobs, etc., but until and unless he or someone addresses our obscene military spending not much will change.

[tclambert]

15. Hybrids and electric cars take us a step closer, but

there is still the problem of where the electricity comes from.

T. Boone Pickens is taking one approach--massive windmill farms.

Another that shows promise you may not have heard of--solar concentrators. Newer generation solar cells actually reach their peak efficiency with light intensities many times greater than normal sunlight. This means reflectors something like the bells of stadium lights can concentrate sunlight on small solar cells, effectively multiplying the area of the cell many times over. The advantage is reflectors are extremely cheap, so this will allow a cost reduction in electricity produced from solar energy, perhaps enough to make it economically competitive with fossil fuel generator plants.

The third and longer term solution is hydrogen fusion reactors. They are inherently safer and cleaner than fission reactors. Researchers have reached break-even. Getting to commercial power plants is still many years off. Eventually, though, we get power from seawater. And we have long coastlines on three, count 'em, three, oceans. Afghanistan has none.

[Hugin]

44. Thanks for the addition of some background.

Makes for a well rounded discussion. :)

[Ghost Dog]

47. Yeah. Big question. Still very dangerous but we're putting a lot of international money

into nuclear fusion research there on the banks of the Rhône.

(Edit: your description of solar-concentrators is right-on, too (see eg. http://www.flickr.com/photos/lowerlighter/189815835/ ).

[tclambert]

86. Yeah, it ticks me off that the leading edge fusion research isn't in America.

But what can one expect with a bunch of oilmen in charge of this once great nation? With proper funding, these efforts might be ten years farther along. Still, I'm glad someone is going forward with this supremely important work.

My son is a genius engineer. His college roommate has a job lined up in California working on solar concentrators. My son got a job, too (thanks to any deities involved), working on hybrid and electric cars. These guys and their friends WILL save the Earth. (Here that, Klaatu? They are working on it.)

[Ghost Dog]

94. We're all trying our best to work on it. Indeed.

(I think the possible large earthquake factor (Madrid Fault, not only), though we're all prone to that, or even worse, was taken into account during those several years it cost us all to take that decision, and put the money in.)

Many 'electricians', I hear, say they would prefer to avoid what they call 'mechanical' systems (because such things tend to decay and fall apart, without a lot of maintenance work.)

Solar concentrators will also get to have a lot of legs, imho. Well done your son and his mates. Thanks very, very much.

:thumbsup:

[Ghost Dog]

16. China and India: Suddenly vulnerable (last week's Economist Leader)

Dec 11th 2008
From The Economist print edition
Asia’s two big beasts are shivering. India’s economy is weaker, but China’s leaders have more to fear

THE speed with which clouds of economic gloom and even despair have gathered over the global economy has been startling everywhere. But the change has been especially sudden in the world’s two most populous countries: China and India. Until quite recently, the world’s fastest-growing big economies both felt themselves largely immune from the contagion afflicting the rich world. Optimists even hoped that these huge emerging markets might provide the engines that could pull the world out of recession. Now some fear the reverse: that the global downturn is going to drag China and India down with it, bringing massive unemployment to two countries that are, for all their success, still poor—India is home to some two-fifths of the world’s malnourished children.

The pessimism may be overdone. These are still the most dynamic parts of the world economy. But both countries face daunting economic and political difficulties. In India’s case, its newly positive self-image has suffered a double blow: from the economic buffeting, and from the bullets of the terrorists who attacked Mumbai last month. As our special report makes clear, India’s recent self-confidence had two roots. One was a sustained spurt in economic growth to a five-year annual average of 8.8%. The other was the concomitant rise in India’s global stature and influence. No longer, its politicians gloated, was India “hyphenated” with Pakistan as one half of a potential nuclear maelstrom. Rather it had become part of “Chindia”—a fast-growing success story.

/... http://www.economist.com/opinion/displaystory.cfm?story_id=12773135&source=most_commented

Suddenly? They're a bit slow-footed at The Economist, seems...

[Ghost Dog]

35. Some of the comments there are...

very thought-provoking.

Don't we all really love "freedom of expression"?

I (carefully) think so.

[tclambert]

87. It's interesting that China is affected, too.

During the Great Depression of the 30s, the Soviet Union was the only industrialized nation unaffected. That gave them a tremendous argument that their system was better than ours. Maybe it was their isolation rather than ideology.

[UpInArms]

19. dollar watch

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

Last trade 81.922 Change -0.125 (-0.16%)

Great U.S debt engine slips into reverse

http://blogs.reuters.com/great-debate/2008/12/12/great-us-debt-engine-slips-into-reverse/

excerpt:

In 1952, the U.S. economy had just $1.28 of debt for every dollar of GDP, and as late as 1980 this figure was still as low as $1.61. But beginning in the 1980s, financial services underwent a revolution that saw credit instruments per dollar of GDP rise to $2.28 in 1990, $2.67 in 2000 and a staggering $3.55 by the end of 2007.

<snip>

Capital repatriation explains much of the dollar’s recent surge against all the other major currencies except the yen.

Some commentators have suggested the dollar’s slide will resume once repatriation has run its course, and that a weak economy and damaged banking system will see a renewed substantial decline in the dollar’s value from early next year.

But as I noted in a recent column, the dollar’s behavior this decade has been inversely linked to the strength of the economy and the massive expansion of the financial system between 2002 and 2007.

Earlier in the decade, rapid U.S. growth sucked in imports faster than U.S. manufacturers could raise their exports, while some of the balance-sheet expansion leaked abroad in the form of net purchases of overseas assets by U.S. residents.

Since the United States could not fund all its imports, let alone asset purchases, from export earnings, the result was a steadily increasing net offer of U.S. financial assets to the rest of the world and persistent downward pressure on the currency.

Now the devaluation process has gone into reverse. Slower growth, and the liquidation rather than accumulation of overseas assets, have sharply reduced the U.S. external borrowing requirement during the last four quarters and resulted in strong dollar appreciation. (https://customers.reuters.com/d/graphic s/US_EXTFIN1208.gif).

...more...

US Dollar Faces Fed Rate Cut, Canadian Dollar and British Pound Will Also See Heavy Event Risk

http://www.dailyfx.com/story/special_report/special_reports/US_Dollar_Faces_Fed_Rate_1229349860235.html

The Federal Reserve’s upcoming rate decision will easily be one of the biggest stories in the financial markets this week, especially since it may have a major impact on the US dollar and Japanese yen. However, forex traders should also keep an eye on the minutes from the Bank of England’s December meeting, as well as Canadian retail sales and inflation figures.

Federal Open Market Committee (FOMC) Rate Decision – December 16

On December 16 at 14:15 ET, the Federal Reserve is widely anticipated to announce a 50bp cut to the fed funds rate, which would bring the rate to 0.50%, according to 58 of the 85 economists polled by Bloomberg News. However, this is actually on the lower end of what the markets are expecting, as fed fund futures are pricing in a 76% chance of a 75bp cut to 0.25%. This upcoming monetary policy decision will be extremely important not only because of the prospect of such historically low rates, but also because the FOMC’s policy statement may signal that they are done cutting rates, or may suggest that they are prepared to pursue unconventional options like quantitative easing. The news could have major consequences for the US dollar and risk trends in general, meaning that the Japanese yen crosses may experience significant volatility.

...more...

[UpInArms]

50. Dollar falls ahead of Fed decision

http://www.marketwatch.com/news/story/Dollar-falls-ahead-Feds-decision/story.aspx?guid=%7B67438301%2DD517%2D4AAC%2D973D%2D90CB9E20549D%7D

NEW YORK (MarketWatch) -- The dollar fell against the Japanese yen and other major currencies Tuesday, weighed down by data showing that U.S. housing starts plunged to a record low and ahead of a widely expected interest-rate cut by the Federal Reserve this afternoon.

Most Wall Street firms expect the U.S. central bank to slash its benchmark rate in half, to 0.5% from 1%, although many economists see scope for a reduction all the way to 0.25%.

With rates already near zero, however, traders will be bracing for any signal the Fed is set to take extraordinary actions to boost the quantity of money in the world's largest economy. See full story.

A public statement from the Federal Open Market Committee, culminating a two-day meeting of the monetary-policy panel, is expected at 2:15 p.m. Eastern.

The dollar index (DXY: 81.73, -0.54, -0.7%) , a measure of the U.S. dollar against a trade-weighted basket of six currencies, fell 0.5% to 81.90, down from 82.02 in North American trading late Monday.

...more...

[UpInArms]

24. Goldman reports $3.6 Billion loss in trading and principal investments

http://www.marketwatch.com/news/story/Goldman-reports-loss-trading-principal/story.aspx?guid=%7BB5548BD2%2DB475%2D4F0C%2D8B0A%2D25D2D1607436%7D

BOSTON (MarketWatch) -- Goldman Sachs Group Inc. (GS: 66.46, -1.28, -1.9%) before Tuesday's opening bell said its trading and principal investments business saw negative net revenue of $4.36 billion in the fourth quarter, compared with net revenue of $6.93 billion in the year-ago quarter. The company also swung to negative net revenue of $3.4 billion in the fixed-income, currencies and commodities business. The results were hurt by "unprecedented weakness across the broader credit markets, reflecting broad-based declines in asset values substantially reduced levels of liquidity," Goldman said. The principal investments business booked a net loss of $3.6 billion in the fourth quarter. Goldman Sachs shares were up about 3% in premarket trading.

[UpInArms]

30. line item information:

01. Goldman compensation down "significantly" this year:CFO
9:18 AM ET, Dec 16, 2008

02. Goldman looking to grow bank deposits:CFO
9:17 AM ET, Dec 16, 2008

03. Goldman likely to grow deposits $50-$100 billion in a year
9:17 AM ET, Dec 16, 2008

04. Goldman to look at bank opportunities "if they make sense"
9:17 AM ET, Dec 16, 2008

05. Moody's says Goldman has solid liquidity profile
8:56 AM ET, Dec 16, 2008

06. Moody's downgrades Goldman Sachs sr debt ratings
8:54 AM ET, Dec 16, 2008

07. Moody's cuts Goldman ratings to A1 from Aa3
8:54 AM ET, Dec 16, 2008

08. Moody's Goldman downgrade excludes FDIC-backed debt
8:54 AM ET, Dec 16, 2008

09. Moody's keeps "negative" outlook on Goldman debt
8:54 AM ET, Dec 16, 2008

10. Moody's cites "persistent difficult operating environment"
8:54 AM ET, Dec 16, 2008

[UpInArms]

51. Goldman employee pay falls sharply in 2008

http://www.marketwatch.com/news/story/Goldman-employee-pay-falls-sharply/story.aspx?guid=%7B8E9CA3F3%2DCAF2%2D42C7%2DB43C%2DADE34D9C4F83%7D&dist=hplatest

NEW YORK (MarketWatch) -- Goldman Sachs (GS: 71.30, +4.84, +7.3%) paid its average employee sharply less in fiscal 2008 than in 2007 amid one of Wall Street's most dismal years ever. Speaking to reporters on a conference call Tuesday, Chief Financial officer David Viniar said, "compensation will be significantly lower this year (FY 2008)." Earlier, Goldman reported its first ever loss as a public company. When it reported those results, it also reported that its average compensation per employee in 2008 fell to about $395,000, down sharply from more than $660,000 in fiscal 2007. And, the firm said it set aside $10.93 billion for total compensation and benefits in 2008, down 46% from $20.19 billion a year ago. At the end of the third quarter, Goldman had 30,067 staff, and it cut 8%, or about 28,000 of those during the fourth quarter. Compensation and benefits as a percentage of revenue rose to 48% in 2008, from 44% in 2007.

:nopity:

[UpInArms]

26. TREASURIES - 30Y yield sets record low after record CPI drop - Look Out Below!

http://www.reuters.com/article/bondsNews/idUSN1630220081216

NEW YORK, Dec 16 (Reuters) - The yield on U.S. 30-year Treasury bonds fell to a record low after a record drop in the U.S. Consumer Price Index in November spurred expectations of deflation and bids for long-dated debt.

The bigger-than-expected 1.7 percent fall in CPI, together with a double-digit decline in housing starts last month, strengthened speculation the Federal Reserve will take more aggressive action to pull the United States out of its year-old recession, traders said.

<snip>

"I think we're in a deflationary spiral that will probably go on until sometime next year," said Thomas di Galoma, head of U.S. Treasury trading at Jefferies & Co. in New York.

In a worsening economic climate, investors scrambled for long-term assets like long maturity government bonds that provide stable income, analysts said.

As the U.S. long bond's price <US30YT=RR> rose, the yield, which moves inversely to the price, briefly hit a historic low of 2.92 percent. It closed at 2.97 percent late Monday.

At the opposite end of the yield curve, Treasury bill rates traded near zero percent, reflecting the intense demand for cash and reluctance of banks to lend.

[tama]

88. 2.8 today

10-year 2.50 -> 2.28

http://finance.yahoo.com/bonds

[UpInArms]

28. Best Buy posts lower net, looks to cut jobs

http://www.reuters.com/article/ousiv/idUSTRE4BF3B920081216

ATLANTA (Reuters) - Best Buy Co, the top consumer electronics retailer, reported a lower third quarter profit on Tuesday and said it was offering buyout packages to its corporate workers in a bid to cut expenses.

The company also said it would substantially cut new store openings next year and its shares rose 11 percent in premarket trading.

Net earnings fell to $52 million, or 13 cents a diluted share, for the third quarter that ended November 29, from $228 million, or 53 cents a share, a year earlier.

Excluding impairment charges, profit came to 35 cents a share. Analysts had expected 24 cents a share, according to Reuters Estimates.

...more...

[DemReadingDU]

29. Columbus, Oh - National Century Trial - Ex-client tells of his threat to tattle

sorry, I missed this article from last week.
Followed by today's update.

12/11/08 Testimony against former executive
Ex-client tells of his threat to tattle
By Jodi Andes

A former chief executive officer of one of National Century Financial Enterprise's overfunded clients used to boast about his relationship with the mob.

Frank Magliochetti was a personal friend of James K. Happ's. Happ is the last of the National Century executives to be tried for fraud tied to the company's 2002 collapse that cost investors billions of dollars.

Happ faces charges of conspiracy, money laundering conspiracy and three counts of wire fraud in U.S. District Court in Columbus.

Federal prosecutors Doug Squires and N. Nathan Dimock used Magliochetti to try to show that Happ was aware of the fraud, though he worked for only about two years at the Dublin-based company.

Magliochetti was chief executive officer of Med Diversified, which was owned in large part by National Century's top three executives, Lance K. Poulsen, Donald H. Ayers and Rebecca S. Parrett.

Magliochetti testified that he once used knowledge he gained from Happ and other National Century executives to force Poulsen to settle a debt. After waiting two years for Poulsen to pay $15 million that had been owed to him, Magliochetti said he sent Poulsen a threatening e-mail in 2001.

"The innuendo was I would go to the rating agencies and the authorities and I would let them know what was going on at NCFE, the fraud," he said. "I was a non-employee of NCFE, but I knew just about everything that Mr. Happ, Mr. (Roger) Faulkenberry and the rest (of the executives) knew."

Magliochetti said he was paid the money.

Craig A. Gillen, Happ's attorney, questioned Magliochetti's truthfulness and character.

Magliochetti, he noted, admitted making up anonymous lies about co-workers on Internet message boards. He also pleaded guilty to falsifying his taxes and a stock scam that netted him $330,000.

And Magliochetti has lied before to federal Judge Algenon L. Marbley, Gillen contended.

He was one of the health-care providers who appeared before Marbley after National Century's collapse, asking that their money be released.

On the stand previously, Magliochetti said he didn't know anything about Med Diversified's subsidiaries, Chartwell and Tender Loving Care, receiving any unmerited advances from National Century, Gillen noted.

"Another lie for Mr. Magliochetti, right?" Gillen asked. "Did you ever tell this court, that at the time, TLC had been given $99 million in excess of the accounts receivables that were purchased?"

"I was never asked that question," Magliochetti said.

The former CEO testified, though, that he is not the same man as he was when he bragged about having a relationship with the mob.

"I would say that it is part of the bravado that went with certain circumstances," Magliochetti said.
http://www.dispatch.com/live/content/business/stories/2008/12/11/nat_cent11.ART_ART_12-11-08_C8_V4C6UFJ.html?sid=101



12/16/08 Jury begins deliberating fate James K. Happ
By Jodi Andes

Closing arguments yesterday in federal court were the beginning of the end for trials involving executives in the nation's largest case of fraud by a privately held company.

The criminal cases against officials of National Century Financial Enterprises started when the company collapsed into bankruptcy more than six years ago.

James K. Happ, 48, who oversaw the purchase of accounts receivable at the Dublin-based company, is charged with fraud tied to the company's 2002 collapse. He is the last of 11 executives charged with fraud to have his case go through the court.

The jury is expected to begin deliberations first thing today.

Before joining National Century, Happ had worked at a health-care company that received millions of dollars in unmerited advances from National Century.

"He knew about the problems at NCFE before he joined and did it anyway. This is a man who joined with eyes wide open," federal prosecutor N. Nathan Dimock said in closing arguments.

National Century bought accounts receivable from health-care providers and collected them for a fee. Cash to buy the accounts receivable was generated by the sale of bonds to investors. But investors were never told about money being given to health-care providers without getting the accounts receivable in return, prosecutors have alleged.

Investors should have known about the advances because it was disclosed in the company's financial documents, said Happ's defense attorney, Craig A. Gillen.

Gillen stood beside a large numeral "0" placed on an easel. He said the zero represented the amount of false statements Happ gave to investors, the number of financial reports he falsified and the number of times he lied to federal investigators.

"Jim Happ didn't commit any crime. Didn't join any conspiracy. He didn't have any motive to," Gillen said.

Federal prosecutors Dimock and Doug Squires have said Happ had the motive to further the conspiracy because his and others' quarterly bonuses grew with each advance to health-care providers.

But Happ's motive couldn't be about money, Gillen said: He earned more at his employment before and after working at National Century.

Happ's attorneys did not put any witnesses on the stand, nor did he testify in the 11-day trial.

Happ, 48, faces charges of conspiracy, money-laundering conspiracy and three counts of wire fraud in U.S. District Court in Columbus.

Ten executives of the defunct health-care lender have been convicted for their roles in a multibillion-dollar fraud that bankrupted health-care companies and hurt investors, including pension funds, across the country.

Six of those convicted have been sentenced to terms ranging from four to 15 years in prison. One, Rebecca S. Parrett, remains at large, having taken off while awaiting sentencing. Former CEO Lance K. Poulsen and two others await sentencing.
http://www.columbusdispatch.com/live/content/business/stories/2008/12/16/happ_closings.ART_ART_12-16-08_C10_VLC8DV9.html?sid=101



link backwards to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3639015&mesg_id=3639095



Here's a tidbit in the Washington Post...
12/15/08 The Enduring Appeal of Ponzi Schemes
Lance K. Poulsen, who founded National Century Financial Enterprises, was convicted in November on conspiracy and securities fraud charges in connection with more than $3 billion in questionable debt his company issued before it folded in 2002. The case, which authorities likened to a massive Ponzi scheme, amounted to one of the largest investigations of a private company, securities regulators said at the time.
more...
http://voices.washingtonpost.com/washingtonpostinvestigations/2008/12/ponzis_payback.html?nav=rss_blog

[UpInArms]

31. Thousands of layoffs by DHL, ABX Air hit Wilmington, Ohio

http://www.usatoday.com/money/economy/2008-12-15-wilmington-dhl-abx-air-layoffs_N.htm

WILMINGTON, Ohio — As hard times go, this is about as hard as it gets. The single-biggest employer in these parts is laying off about 7,500 men and women.

In a town of fewer than 13,000 people. In the midst of the worst financial crisis in generations.

"It's going to test us," says Mayor David Raizk. "The numbers are frightening."

Those numbers came in a Nov. 10 announcement by Deutsche Post World Net, the German owner of package-delivery company DHL. After investing five years and nearly $9 billion, DHL is abandoning its ill-starred effort to compete in the United States with FedEx and UPS. Winding down its U.S. business will eliminate 9,500 DHL positions around the country plus thousands more here at the company's local partner, ABX Air.

...more...

[UpInArms]

40. 9:43 EST doing the rate cut boogey! it's all good!

Dow 8,657.96 93.43 (1.09%)
Nasdaq 1,534.07 25.73 (1.71%)
S&P 500 881.96 13.39 (1.54%)
10-Yr Bond 2.516% 0.017

NYSE Volume 302,422,062.5
Nasdaq Volume 104,756,781.25

09:17 am : S&P futures vs fair value: +15.80. Nasdaq futures vs fair value: +18.00. Early buying has stocks positioned to open the session with gains. The positive start comes despite a heavy loss at Goldman Sachs (GS), though a loss was widely expected. Best Buy (BBY) is lending its support by serving up better-than-expected third quarter earnings per share results. Still, Best Buy reiterated that this is the most challenging consumer environment it has ever seen, and so its earnings guidance range is wide. Automakers could receive a bailout as early as tomorrow, according to reports, but details are still uncertain. On the economic front, housing starts for November declined 18.9% from the prior month to an annualized rate of 625,000 units, which failed to meet the consensus 736,000. Building permits declined 15.6% to a seasonally adjusted annual rate of 616,000, which was short of the consensus 700,000 estimate. Both categories saw record declines. Headline CPI fell 1.7% in November. That pulled the year-over-year increase in CPI down to just 1.1%. The trend is very weak after a 1.0% drop in total October CPI, a flat CPI in September, and a 0.1% drop in August. The core rate was flat in November, and follows a 0.1% slip in October and a 0.1% gain in September. Inflationary pressures at the consumer level are nonexistent, which gives the Fed room to cut target lending rates further. The Fed is expected to cut rates when it makes its statement at 2:15 p.m. ET.

[Hugin]

43. Oh, joy! Goldman's losing money! All is right with the world!

It's all good! :eyes:


(Honestly, I don't know if I could spew happy talk day after day.)

[UpInArms]

49. Measliest raises in 32 years on tap: survey

http://www.marketwatch.com/news/story/Pay-raises-2009-measliest-32/story.aspx?guid=%7B38A18DA8%2DA288%2D4034%2DA58A%2D89E5BFE78CFF%7D

SAN FRANCISCO (MarketWatch) -- Thanks in large part to the hit companies are taking from the current financial crisis, millions of U.S. workers will find their 2009 pay raises are less than 3%, the lowest average in the 32 years of a survey conducted by Hewitt Associates, a human-resources consulting firm.

But workers' experience will depend largely on where they work.

Half of the companies surveyed said they're changing their plans for salary hikes in 2009, and another one-fourth of the companies are considering such changes, according to the survey, the results of which were announced Tuesday.

At the companies who said they are making changes or considering them, the average salary increase for employees of all types will drop below 3% for the first time since Hewitt started its salary tracking survey in 1976. At those companies, salary hikes will average 2.2% for executives, 2.5% for salaried exempt (those who are exempt from overtime pay), 2.6% for salaried nonexempt workers, and about 2.5% for nonunion hourly employees.

At companies who said they are not making changes, raises will average 3.8% for executives, 3.7% for salaried exempt and nonexempt workers and 3.6% for nonunion hourly employees.

...more...

[AnneD]

58. Old joke ....

from when bathrooms were powder rooms. Want a raise-wear high heels...for guys-stand on a step stool.

[Ghost Dog]

59. Now, we get called 'workers';

not just 'consumers'.

[tclambert]

90. Aye, there's the rub.

If workers get smaller raises, so do consumers because they are the same people. It's good for business if workers get smaller raises. But it's bad for business if consumers get smaller raises. Quite the conundrum.

[Danascot]

52. A DUer recommended a must-read site for SMW denizens

on another thread:

Posted by sixmile at http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4659127&mesg_id=4659127

deepcapture.com An illuminating, informative insight into our financial mess

Deep Capture is a website of investigative journalism examining the growing threat to our financial system posed by illegal naked short selling founded by Patrick Byrne, CEO of overstock.com, and heavily contributed to by former WSJ writer Mark Mitchell. The site delves into the underbelly of Wall Street and its incestuous relationships to regulatory agencies like the SEC and the DTCC. It is enlightening, frightening, easy-to-read, and is a must for any DU'ers who have money invested in the stock market.

From Mark Mitchell: "I have maintained all along that naked short selling was not a hard problem to solve: it was just a hard problem to solve without seeing about 20 rich guys get their asses handed to them. And because they were rich and well-connected, efforts to persuade the federal government to enforce the law were stopped dead in their tracks.

Somewhere in the middle of 2008, after the horses bolted from the barn, the barn collapsed, the barn burned, and the barn’s ashes scattered to the four winds, the federal government decided to close the barn door."

http://www.deepcapture.com /

[AnneD]

55. Tansy.....here is something to gnaw on...........

Get Mad at Bernard Madoff, Not Hedge Funds
Madoff's SEC 'Inference of Respectability'
Bernard Madoff's Ponzi scheme is likely to raise calls for further regulation and oversight of hedge funds. Before jumping on the bandwagon, however, keep in mind that Madoff's fund had been registered with the Securities and Exchange Commission for over two years before the alleged fraud was uncovered. Also keep in mind that despite numerous published warnings that go back years and tips from whistleblowers, the government agency never stepped in to investigate.

In reality, it's likely that registering with the SEC actually prolonged the fraud by bestowing on Madoff a false credibility. As Alan Greenspan pointed out over 40 years ago in Ayn Rand's "Capitalism: The Unknown Ideal," "A fly by night securities operator can quickly meet all the S.E.C. requirements, gain the inference of respectability, and proceed to fleece the public." Indeed, regulation doesn't eliminate the potential for fraud, it simply makes it harder to detect.

The key to preventing the next Madoff scheme is deregulating the antiquated web of securities laws that keeps hedge funds outside the scrutiny of the watchful public eye.

http://www.smartmoney.com/Investing/Stocks/Get-Mad-at-Bernard-Madoff-Not-Hedge-Funds/

Merry Christmas...

[Dr.Phool]

56. This helps also.

http://www.talkingpointsmemo.com/archives/248348.php

Hmmm ...
12.16.08 -- 9:24AM
By David Kurtz

Politico has more about the Madoff scandal:

But lobbying is just a piece of Madoff's influence in Washington. His family has contributed nearly $400,000 to political committees. And his niece, Shana Madoff Swanson, who serves as a compliance attorney at his firm, is married to a former high-ranking Securities and Exchange Commission official, Eric Swanson.

Swanson was the assistant director in the SEC's Office of Compliance Inspections and Examinations' market oversight unit in Washington. According to his biography, Swanson "supervised and conducted inspections and examinations that involved a wide range of issues including best execution, order handling, insider trading market manipulation."

The SEC has come under criticism for not following up on tips that Madoff's investment returns seemed suspicious. Mr. Swanson left the SEC in 2006. He married Madoff's niece the next year. He now works at a firm called BATS Exchange, which describes itself as "the third-largest stock exchange" in the United States, behind the New York Stock Exchange and Nasdaq.

(snip)

[burf]

61. That brings me to a question

Last night on one of the TV channels, MSNBC I think, they had a story on the Madoff dealings. They went on to say that most of the dealings in regard to this Ponzi scheme were confined to the 16th floor. This area was separate from other activities in Madoff dealings. So if things are being done "off the books" how are people like Madoff ever gonna get caught? Also, if these transactions were not under the watch of the SEC, how can the SIPC or any TARP money be used to reimburse those who were ripped off?

[Tansy_Gold]

66. Thanks. When I get my paying work done. . . . .

I got swamped today, which is a good thing and I can't complain, but it does take me away from SMW.



Tansy Gold, in cold, rainy, windy, grey, miserable AZ

[snot]

80. Cutting back on law & enforcement isn't usually the best way to reduce bad behavior.

[tclambert]

93. The key to preventing the next Madoff scheme is deregulating the antiquated web of securities laws?

That is exactly what I've been expecting Ann Coulter to say. (Jonathan Hoenig wrote this article.) The existing regulations weren't enough to catch Madoff earlier. Therefore, . . . um, . . . Better enforcement? Encouraging and rewarding whistleblowers? Even more stringent regulations? No, no, no. Let's do away with ALL regulations. Why? Because regulation "keeps hedge funds outside the scrutiny of the watchful public eye!"

And, of course, we can all trust "the scrutiny of the watchful public eye." Oh, my, a flying pig just pooped on my windshield. I'm gonna need more washer fluid.

[AnneD]

57. News you can really use........

8 Ways to Cut Your Grocery Bill
Updated on October 3, 2008.

RUMBLINGS FROM A world increasingly hungry for oil and grain caused a 5.9% jump in food prices since August 2007 — and there's no end in sight.

"There is a global increase in demand for food commodities, driven by a rapidly growing middle class in India, China and other developing countries seeking protein," explains Jack W. Plunkett, CEO of Plunkett Research. "Growth in demand is outstripping growth in supply." Hardship has further contributed to the scarcity of certain foods. Midwest flooding this summer hurt corn production, while last year's poor hops harvest increased beer prices.

Skyrocketing oil prices, which regularly top $100 a barrel these days, have also added to the expense of producing, packaging and transporting foods. "Think of it as paying more per calorie burned," says Plunkett.

The resulting higher costs are swiftly passed down the production food chain to grocery store shelves. "It's like when the price of oil goes up, and you see a difference at the pump in the next day or two," says Al Ferrara, national director for consulting firm BDO Seidman's retail and consumer product division. Constantly produced fresh items like milk (up 10% compared with 2007, according to the USDA), eggs (up 7%) and bread (up 16%) are more apt to reflect changes on a nearly daily basis.

With a little legwork, savvy shoppers can keep their grocery bills at pre-2008 levels — if not lower. Here's how:



http://www.smartmoney.com/spending/deals/8-ways-to-cut-your-grocery-bill-22641/

More from me.....
Look for food in unusual places. Frequently things like milk and cereal will be on sale at Walgreens or CVS. They are loss leaders (sold at a loss to get you in the store). You can really save.

Spices:If there is an Indian store in your town-buy your spices there. Spices are at such a high mark up in a grocery store. Every Christmas, I would take $5 (now $10-15) and by spices in bulk and divy them up and give them to the women in the family. They would be delighted to recieve fresh spices. Don't be afraid to explore.

Farmers Markets: We are blessed in Texas. Snoop around. Encourage one.

COOP: I learned to do this in college. One of the most important things I learned.

[AnneD]

60. Credit card crackdown coming soon

NEW YORK (CNNMoney.com) -- Cash-strapped consumers might get some welcome news on Thursday when regulators vote to rein in controversial credit card practices.

The proposed rules, which have received overwhelming consumer support, prohibit banks from practices like raising the interest rates on pre-existing credit card balances unless a payment is over 30 days late, and applying payments in a way that maximizes interest penalties.

The Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union Administration, are all expected to approve the regulation. The rules are expected to take effect by 2010.

"It will fundamentally change the relationship between cardholders and banks," said Peter Garuccio, a spokesman from the American Bankers Association

More.....


http://money.cnn.com/2008/12/16/pf/credit_card_rules/

A good read. About damn time.

[AnneD]

62. The Queen's Credit Crunch.......

No-one is immune from the credit crunch. Not even Queen Elizabeth.

Richard Kay at the Daily Mail reports that she has cut back on the traditional Christmas presents for staff at Buck House. This year, they'll just get a pair of coasters.

As Royal Watch News reports, the Queen has now taken to growing fruit on her estate at Balmoral in order to save money. It quotes a source saying: ""The queen wants to make savings like everyone else. She spends hundreds of pounds buying exotic fruits for the kitchen and a lot more on cut flowers. She's decided enough is enough and wants to be self-sufficient. A small fruit crop is expected this year from the new indoor fruits, apricots and grapes, and the rest will be picked next year."

Times are tough. Her dressmaker Hardy Amies and favorite porcelain maker Royal Worcester and Spode have both filed for administration, reports AFP.




http://www.soxfirst.com/50226711/the_queens_credit_crunch.php

Things are tough all over. The Queen is a very frugal person despite her wealth so I cut her a bit of slack. At least they give back.

[AnneD]

63. everybody's got something to hide 'cept for me an my charred monkey meat

Now landing at Dulles: flyer's strange baggage

People carry all sorts of stuff with them when they fly, and when they go on along overseas trip to visit relatives, they like to bring something to remind the folks of home. So it probably shouldn't have been that much of a surprise when the Customs guys found something really bizarre in the luggage of a guy arriving at Washington's Dulles International from Central Africa: three charred monkey corpses (see below). And that wasn't all. Alerted by the sniffing of an alert aide (right), the Dulles Customs and Border Protection agents also found 10 pounds of deer meat and another 10 pounds of dried beef in the traveller's bags. The CPB did not say where the flyer was from.

The CBP, part of the Homeland Security department, destroyed the 20 pounds of meat but sent the poor late monkeys to the Centers for Disease Control and Prevention for further study, said the Dulles port director, Christopher Hess. Hess said, "We respect that certain cultures may consider exotic meat such as primate as a delicacy." How diplomatic, sir. And a tip of the cap to the unnamed "CPB Canine" (see above) who detected the strange stuff in the now-hungry fellow's bags. At left, CPB's photographic evidence of the simian cargoes.

http://www.flightglobal.com/blogs/left-field/2008/12/now-not-arriving-at-dulles-str.html

Makes my dolemades look tame.

[UpInArms]

65. 2:25 EST Yippie Freakin' Skippie! Free Money!!!

Dow 8,725.26 160.73 (1.88%)
Nasdaq 1,550.80 42.46 (2.82%)
S&P 500 888.69 20.12 (2.32%)
10-Yr Bond 2.516% 0.017

NYSE Volume 3,180,817,000
Nasdaq Volume 1,090,867,875

[CatholicEdHead]

74. Last hour up, up we go with lower rates

:crazy:

[specimenfred1984]

68. Fed speaks, Fed pumps: corruption continues unabated

It'll never stop until a lot of criminals are arrested. Madoff is 1 of many who have utilized the corrupt SEC, corrupt U.S. gov't and thoroughly corrupt U.S. markets. I have ZERO compassion for anyone who's lost a lot of money in these criminal markets, most people purposely have blinded themselves to crime for their own greedy purposes.

[specimenfred1984]

70. My favorite dodge "I'm not even looking at my 401k"

How many people have you heard say that? That stupidity is spread out among all Americans, "I don't care about politics", "Some people need to be tortured", "Nobody could have predicted it". Fucking people have been asking for whatever crime comes their way for years.

[Hugin]

82. I've heard that five times already, among my limited set of acquaintances.

I guess they feel if they don't look at it, it isn't happening.

[Dr.Phool]

77. Are they passing out psychelics on Wall Street today?

Did Santa come? Did we start another war?

:wtf:

[Hugin]

83. Fed slashes key rate to near zero (CNN)

"Ben Bernanke & Co. cite weakness in economy and reduced inflation threat as justification for cutting rates to a record low range of 0% to 0.25%."


By Chris Isidore, CNNMoney.com senior writer
Last Updated: December 16, 2008: 3:39 PM ET

Housing market rocked again

NEW YORK (CNNMoney.com) -- In its latest effort to try and stimulate the U.S. economy, the Federal Reserve cut its key interest rate to a range of between zero percent and 0.25%, and said it expects to keep rates near that unprecedented low level for some time to come.

The central bank typically sets a specific target for its federal funds rate instead of a range. The rate had previously been at 1% and this marks the first time the Fed has cut rates below 1%. Most investors were expecting the Fed to cut rates to either 0.25% or 0.5%.

The federal funds rate is an overnight lending rate used as a benchmark to set rates for a variety of loans, including adjustable rate mortgages, credit cards, home equity lines of credit and business loans. This marks the tenth time it has cut rates in the last 15 months.

Several banks announced they were lowering their prime rate to 3.25% in light of the Fed's decision. Typically, the prime rate is 3 percentage points higher than the fed funds rate. It was 4% before Tuesday's rate cut.

More ons... http://money.cnn.com/2008/12/16/news/economy/fed_decision/index.htm?postversion=2008121615

__________________________________________________________________________________________

It's the rate cut boogie.

The LAST rate cut boogie... Ever.

[CatholicEdHead]

89. Nowhere to go but negative % now?

I get the impression this was the last bullet possible from the Fed. :scared:

[Dr.Phool]

92. Yeah, a friend of mine just called and told me.

She said that the market is up, and it looks like things will really start to improve again.

:rofl:

She almost hung up when I started laughing.

[tclambert]

95. This just in: Fed sets interest rate to the Square root of negative one.

[Dr.Phool]

96. Damn! Where's my cipherin' machine?

[tclambert]

97. It's a math joke!

For the mathematically challenged (those who aren't geeks (any non-geeks on this thread?)): The square root of negative one, i, is an imaginary number.

[tama]

98. As in: imaginary money? n/t

[antigop]

84. Today's Beetle Bailey

http://www.arcamax.com/beetlebailey

[specimenfred1984]

91. Huffpo: Will The Madoff Debacle Finally End The "Who Could Have Known?" Era?

http://www.huffingtonpost.com/arianna-huffington/will-the-madoff-debacle-f_b_151219.html

--- ...An ambitious and risky undertaking carried out with hubris, and featuring the weeding out of anyone who raises alarm bells, little-to-no transparency, an oversight system in which no central authority is accountable, and the deliberate manufacturing of ambiguity and complexity so that if -- when -- it all falls to pieces, the excuse "who could have known?" can be used....

Is it Iraq? Fannie Mae? Citigroup? Bernie Madoff?

The correct answer is: all of the above.

When you look at the elements that were crucial to the creation of each of these debacles, it's amazing how much in common they all have. And not just in how they began but in how they ended: with those responsible being amazed at what happened, because...who could have known? Well, to paraphrase James Inhofe, I'm amazed at the amazement. ---

[tclambert]

99. Hey, it's after 4! Where's my closing numbers?

[Robbien]

101. A year ago Madoff gave a lecture on regs saying "It's virtually impossible to violate rules"

At a conference in October of 2007, Bernard Madoff discusses regulation and algorithmic trading where he ironically states, "It's virtually impossible to violate rules in today's regulatory environment." Here is an excerpt from the interview where he talks about the Chinese walls—separating proprietary trading from trading for investors—that are carefully enforced. He also talks about how the general public thinks everyone is violating rules, but he contends the infractions are very small compared to the volumes of trades the market. This was well before it was uncovered that his firm, Bernard Madoff Investment Securities, was charged with fraud for creating a giant Ponzi scheme that allegedly lost $50 billion in investors' money.

http://www.advancedtrading.com/regulations/showArticle.jhtml?articleID=212500327

There is a video of Madoff's lecture at the link.

[Dr.Phool]

102. Madoff: " I'm very close with regulators, in fact, my niece married one".

http://www.talkingpointsmemo.com/archives/248455.php

[UpInArms]

103. end of sucker-run-up day numbers

Dow 8,924.14 359.61 (4.20%)
Nasdaq 1,589.89 81.55 (5.41%)
S&P 500 913.18 44.61 (5.14%)
10-Yr Bond 2.363% 0.17

NYSE Volume 6,774,660,500
Nasdaq Volume 2,267,995,500

4:40 pm : The Federal Open Market Committee's decision to slash key lending rates and make a commitment to remedy the ailing U.S. economy bolstered investor optimism and sent stocks sharply higher. The major indices traded in positive ground for the entire session and finished just off their session highs.

The FOMC was expected to slash its fed funds target rate by 50 basis points Tuesday, which would have brought the overnight borrowing rate banks charge one another down to 0.50%. Instead, the FOMC stated it is targeting a fed funds rate ranging from 0.00% to 0.25%, though the effective fed funs rate was already within this range ahead of the decision.

The decision to make the cut was unanimous and marks the first time the target rate has been below 1.00% in 50 years.

The highly stimulative rate is intended to help the economy get on track toward growth. The FOMC stated that data that indicate deteriorating labor conditions and declining consumer spending, business investment, and industrial production, and the outlook for economic activity has weakened further. However, the FOMC acknowledged it will essentially employ all available tools to promote sustainable economic growth and help relieve strains in the financial system.

The U.S. dollar dropped precipitously after the FOMC made its statements. A weak economy and low interest rates hardly bode well for the strength of the currency. In turn, the Dollar Index fell 1.9%.

Despite the struggles of the economy and the financial system, financials (+11.3%) outperformed for virtually the entire session. The sector's advance came even though Goldman Sachs (GS 76.00, +9.54) posted a larger-than-expected quarterly loss, and had its credit rating downgraded to A1 by Moody's. Investors had been long expecting a loss, sending shares lower in each of the five preceding sessions.

Best Buy (BBY 27.68, +4.21) helped contributed to early-morning optimism by issuing better-than-expected earnings per share results in-line guidance for 2009.

General Electric (GE 17.92, +0.97) caught a bid after it reaffirmed its outlook for the fourth quarter and fiscal 2008, though it said it will no longer provide quarterly guidance. GE also reiterated its dividend, which has been a point of concern for many investors.

Oil prices have also been in focus with OPEC meeting tomorrow. A cut of approximately 2 million barrels per day is expected, but crude futures for January delivery shed $0.96, or 2.2%, to settle in at $43.55 per barrel. Crude futures had been up as much as 4.5%, but energy traders appear to have fully digested the prospect of a production cut.

In addition to OPEC's decision, energy traders will also contend with the latest inventory data from the Department of Energy, which is due tomorrow morning.

Despite the drop in oil, precious metals found favor again as February gold and March silver advanced. Gold added $6.20 to trade at $842.70 per ounce, while silver added $0.085 to hit $10.705 per ounce.

November CPI dropped 1.7% month-over-month and pulled the year-over-year increase in CPI down to just 1.1%. Both rates were below expectations. The core rate was flat in November and follows a 0.1% decrease in October. The downtrend in CPI has a negative side as it reflects weak economic demand, but there are also clearly benefits in terms of increasing the value of financial instruments.

Housing starts data for November declined 18.9% from the prior month to an annualized rate of 625,000 units, which was below the consensus of 736,000 and are 47% below the year-ago level. The November decline is the largest drop since March 1984.

Building permits, meanwhile, declined 15.6% to a seasonally adjusted annual rate of 616,000. That was also below the consensus of 700,000. DJ30 +359.61 NASDAQ +81.55 NQ100 +5.2% R2K +6.7% SP400 +6.1% SP500 +44.61 NASDAQ Adv/Vol/Dec 2220/2.25 bln/633 NYSE Adv/Vol/Dec 2681/1.54 bln/477

[ozymandius]

104. Dow +359? Jeebus. Who honestly thinks this bubble is going to reinflate?

And who honestly thinks that dropping the interest rate while churning more cash out the printing press will help anyone who works for a living?

[Dr.Phool]

105. Somebody still has a job?