STOCK MARKET WATCH, Thursday May 28

[ozymandius]

Source: du

STOCK MARKET WATCH, Thursday May 28, 2009

Bush Administration Officials Under Indictment = 2
Financial Sector Officials Under Indictment = 0
Financial Sector Officials In Prison = 2

AT THE CLOSING BELL ON May 27, 2009

Dow... 8,300.02 -173.47 (-2.05%)
Nasdaq... 1,747.62 -19.35 (-1.11%)
S&P 500... 893.06 -17.27 (-1.90%)
Gold future... 953.30 0.00 (0.00%)
10-Yr Bond... 3.73 +0.19 (+5.25%)
30-Year Bond 4.66 +0.17 (+3.69%)

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

Market Conditions During Trading Hours

GOLD, EURO, YEN, Loonie and Silver

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---

Read more: du

[ozymandius]

1. Market Observation

Can North Korean Nukes Rattle Global Markets?
by Gary Dorsch

News that North Korea’s mercurial leader Kim Jong Il authorized the detonation of a nuclear bomb on May 25th, comparable to those that obliterated Hiroshima and Nagasaki, barely caused a ripple in the global financial markets. Japanese and South Korean stocks initially fell in a knee-jerk reaction, but soon recouped most of their losses, as traders shrugged off the nuclear fallout, - figuring it was just a harmless display of Kim Jong Il’s temper tantrums that erupts once every few years.

When foreign markets failed to take Pyongyang seriously, Kim Jong Il upped the ante by firing the Musudan-Ri missile, on which N-Korea could ultimately place a nuclear warhead, with a range of 2,500-miles. Pyongyang then fired three shorter-range missiles into the Sea of Japan. But global stock markets are so intoxicated with super-cheap money injected by the G-20 central banks each day, that even nuclear bomb blasts didn’t rattle the post March 10th “green-shoots” rally.

....

If the Korean Kospi rally should suddenly stumble, and its “green-shoots” begin to wither, it could be due to Pyongyang’s declaration of war. Or warnings by China’s central bank chief Zhou Xiaochuan on May 15th, could take some of the steam out the closely linked markets. “China may fine-tune monetary and fiscal policies as it seeks to minimize the risk of bad loans and fallout from asset bubbles,” Zhou said. On May 26th, China’s central bank drained 80-billion yuan ($11.7-billion) from the money market through repo operations, and a total of 160-billion yuan in central bank bills and repos are due to mature this week.

....

For a market that prides itself on anticipating the future, six-months ahead, traders were bidding-up stocks on a lagging indicator. A US-consumer confidence index, compiled from a survey of 5,000-households, surged to a reading of 54.9 in May, the biggest monthly jump since April 2003, from as low as 25.0 in March. However, the consumer confidence survey’s results are at odds with economic reality, and instead, are simply tracking the market values of household’s 201k’s. The consumer confidence survey is misleading, and might only lead to trading losses.

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

[Demeter]

20. This Market Anticipates No Future--It's All Audacity of Hope!

Just the sort of thing that is guaranteed to lose you money , short or long!



Just another word for denial of reality.

[Ghost Dog]

32. Obama says worst over, but debt fears roil markets

SINGAPORE (Reuters) – Concerns about the debt burden facing countries trying to spend their way out of the economic downturn spooked investors on Thursday despite optimism from President Barack Obama that the U.S. economy was past the worst.

"It's safe to say we have stepped back from the brink," Obama told a fundraiser in Beverly Hills. "There is some calm that didn't exist before."

But despite increasingly upbeat comments from policymakers, global markets have focused on the extra debt governments are taking on to fund their stimulus packages, ever since Standard & Poor's lowered its outlook for Britain's sovereign credit ratings to negative a week ago.

That prompted scrutiny of other major economies -- including the United States -- where concerns about the U.S. debt mountain sent Treasury prices and stocks tumbling on Wednesday.

Asian stocks fell in turn on Thursday and European bourses were expected to open lower, taking their cue from Wall Street's weakness.

Global markets are also watching developments in the U.S. auto industry, where General Motors Corp moved closer to filing the largest bankruptcy ever for a U.S. industrial company after a crucial bond exchange proposal failed.

/... http://news.yahoo.com/s/nm/20090528/bs_nm/us_financial

[Ghost Dog]

34. Asia stocks ease on nagging U.S. economy worries

TOKYO (Reuters) – Asian shares retreated from seven-months highs on Thursday as concerns grew that rising yields on U.S. government debt could push up borrowing costs and choke off a potential recovery in the world's largest economy.

U.S. home sales picked up in April, but the positive sign was outweighed by worries that the U.S. government was incurring too much debt as it tries to spend its way out of recession, sending Treasury prices falling along with stocks. (.N)

The benchmark 10-year Japanese government bond's yield hit a six-month high in early Asia trade after U.S. Treasury debt prices came under heavy pressure on supply concerns.

The accompanying rise in bond yields raised worries about a U.S. economic recovery as this would lead to increased borrowing costs for consumers and corporations.

...

Japan's Nikkei average (.N225) took a breather and dipped 0.1 percent after breaking above a key resistance level, its 200-day moving average, the previous day.

...

Elsewhere in Asia, Hong Kong and Chinese markets were closed on Thursday for the Dragon Boat Festival holiday. The main indexes in South Korea (.KS11) fell 0.6 percent.

/... http://news.yahoo.com/s/nm/20090528/bs_nm/us_markets_global

[AnneD]

40. Morning Marketeers....

:donut: and lurkers.

With all due respect Mr. President.....you don't know what you are talking about and that is because you are listening to the wrong folks and surrounding yourself with the wrong folks.

Instead of having a fund raiser in Beverly Hills-try having one in Detroit or Elkhart. Are you up to the challenge Barack? That speech will go over as well as a pregnant pole vaulter.

I won't think you are serious about the economy until....

1)You replace Geitner, Summers et all and replace them with Volker, Warren and a few others.

2)I start seeing bail out money go to infrastructure instead of these too big to fail banks.

3)Start seeing job creation, not just unemployment number drop because folks are droped from the rolls.

Until then, stop blowing smoke up my skirt.

Happy hunting and watch out for the bears.

[DemReadingDU]

77. a fundraiser in Detroit or Elkhart?

I don't think there are enough people left with money to give to a fundraiser.

:eyes:

Besides, there can't be any recovery soon, until more jobs are created than are eliminated. I'd like to see someone ask Obama what jobs he has planned for all these millions of unemployed people.

[Demeter]

55. What's The difference Betweeen "Calm" and "Comatose"?

Just a few letters and some kind of consciousness.

[ozymandius]

2. Today's Reports

08:30 Durable Goods Orders Apr
Briefing.com 0.0%
Consensus 0.5%
Prior -0.8%

08:30 Durables, Ex-Transport Apr
Briefing.com -0.5%
Consensus -0.3%
Prior -0.6%

08:30 Initial Claims 05/23
Briefing.com 620K
Consensus 628K
Prior 631K

10:00 New Home Sales Apr
Briefing.com 365K
Consensus 360K
Prior 356K

11:00 Crude Inventories 5/22
Briefing.com NA
Consensus NA
Prior -2.10M

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

[UpInArms]

26. Initial Claims @ 623,000 - last wk rev'd up 5k

U.S. initial jobless claims fall 13,000 to 623,000
8:30am Today

U.S. continuing claims hit record 6.79 million
8:30am Today

U.S. insured unemployment rate rises 0.1% to 5.1%
8:30am Today

U.S. April durable-goods orders up 1.9%
8:30am Today

U.S. April durable-goods well above expectations
8:30am Today

U.S. April durables biggest gain since Dec '07
8:30am Today

U.S. April durables ex-transportation rise 0.8%
8:30am Today

U.S. April durable-goods shipments fall 0.2%
8:30am Today

U.S. April durable orders ex-defense rise 1.0%
8:30am Today

U.S. March durables fall rev 2.1% vs 0.8 prev
8:30am Today

[MARALE]

30. Am I reading this correctly?

March durable orders were change from a -0.8 to a -2.1 and then April durables rose an "unexpected" 1.9% Wow. Not much to say.

[Pale Blue Dot]

33. Yeah. Pretty amazing, huh? nt

[Hugin]

37. It's that '>' shaped recovery in action.

Can't even chart this junk.

[UpInArms]

42. April new-home sales up 0.3% - Mortgage delinquencies at record high 9.12%

U.S. foreclosures take record leap in quarter: MBA
10:01am Today

Mortgage delinquencies at record high 9.12%: MBA
10:01am Today

More than 12% of U.S. mortgages in distress: MBA
10:01am Today

Foreclosure jump 'sobering but not unexpected'
10:01am Today

Non-seasonally adjusted delinquencies decline: MBA
10:01am Today

U.S. April new-home sales up 0.3% to 352,000 pace
10:00am Today

U.S. April new-home sales weaker than expected
10:00am Today

[UpInArms]

43. Foreclosures break another record in first quarter

http://www.marketwatch.com/story/foreclosures-break-another-record-in-first-quarter

CHICAGO (MarketWatch) -- A record percentage of U.S. mortgages entered foreclosure in the first quarter, and the jump in foreclosure starts compared with the fourth quarter was the biggest leap ever recorded in the Mortgage Bankers Association's survey, released on Thursday.

According to the MBA's quarterly National Delinquency Survey, 1.37% of mortgages entered the foreclosure process in the first quarter, up from 1.08% in the fourth quarter.

Total foreclosure inventory was also up, with 3.85% of all mortgages somewhere in the foreclosure process at the end of the first quarter, compared with 3.3% in the fourth quarter -- also a record jump. The delinquency rate, which includes loans that are at least one payment past due but not those in foreclosure, was a seasonally adjusted 9.12%, up from 7.88% in the fourth quarter.

The Washington-based MBA survey covers 45 million mortgages, representing between 80% and 85% of all first-lien residential mortgages outstanding in the United States.

"The increase in the foreclosure number is sobering but not unexpected. The rate of foreclosure starts remained essentially flat for the last three quarters of 2008 and we suspected that the numbers were artificially low due to various state and local moratoria, the Fannie Mae and Freddie Mac halt on foreclosures, and various company-level moratoria," said Jay Brinkmann, MBA's chief economist.

...more...

[Wednesdays]

46. 1 out of every 70 houses in forclosure

My God, can it get any worse? :cry:

[AnneD]

50. That stat just takes your breath away....

and yes, it will get worse. Start watching the amount of available office space growing too as business' fold.

[DemReadingDU]

78. Soon those alt-a variable loans are going to be reset higher

Those are the loans to people with good jobs, or used to be, until they are laid off. I see many more houses going to foreclosure.
:cry:

[tclambert]

62. >12% of mortgages in distress

How many are there? About 100 million? So 12 million are in trouble? Obama said his mortgage relief plan would save 9 million from foreclosure. That would be a huge proportion of the troubled mortgages, and that would have to be a great help. A much better help than the TARP bank bailout. So, what's the status of the mortgage relief program? Last I heard, the House of Reps had passed a second version of it after the Senate killed the first attempt. Any movement in the Senate?

[UpInArms]

44. Petroleum Inventories Report:

Gasoline inventories fall 600,000 barrels
11:01am Today

Distillate inventories rise 300,000 barrels
11:01am Today

Crude inventories fall 5.4 million barrels: EIA
11:00am Today

[ozymandius]

3. Oil eases off 6-month high ahead of inventory data

SINGAPORE – Oil prices eased back from six-month highs Thursday in Asia as investors looked to a weekly U.S. inventory report for signs of crude demand may be recovering.

Benchmark crude for July delivery was down 53 cents to $62.92 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract rose $1 to settle at $63.45, a six-month high.

....

Analysts expect an increase of 1.8 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Stocks have dropped the last two weeks after rising for the previous ten.

In other Nymex trading, gasoline for June delivery fell 1.72 cents to $1.87 a gallon and heating oil dropped 0.89 cent to $1.55 a gallon. Natural gas for June delivery was steady at $3.54 per 1,000 cubic feet.

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

[ozymandius]

6. OPEC Keeps Production Unchanged, Sees Demand Recovery (Update1)

May 28 (Bloomberg) -- OPEC decided to keep production quotas unchanged at today’s meeting in Vienna, banking on a recovery in oil demand toward the end of the year.

The Organization of Petroleum Exporting Countries, responsible for 40 percent of global crude supply, agreed to maintain production quotas, Saudi Oil Minister Ali al-Naimi said. It’s the second time this year the 12-member group has met without revising that total.

....

The 11 nations bound by quotas, which exclude Iraq, pumped 25.81 million barrels a day in April, an increase of about 225,000 from March and the first increase in nine months, according to OPEC’s latest monthly report. The countries have a total target of 24.845 million barrels. That means the group has completed 77 percent of its cuts, down from a revised 82 percent for March.

http://www.bloomberg.com/apps/news?pid=20601087&sid=anrzIuFkwcl0&refer=home

[Demeter]

21. Gasoline now $2.70 and beyond

With 13% unemployment in Michigan. How can anyone justify it as anything but literally Highway Robbery?

Do they really think people will be joy riding at those prices with no jobs?

Is some miracle going to come along and stitch up the holes in the economy?

Am I living in somebody else's dream? 'Cause it feels like a nightmare to me!

[Dr.Phool]

24. It's running around $2.40 here.

I try to fill up my car only once a month. I didn't quite make it this month, I had to fill it up a week early. But, when I think about it, I didn't fill up last time. I just threw $20 in and said "hell with it".

[tclambert]

63. It was $2.62/gallon cash yesterday when I filled up my Tahoe.

I know, I know, it's a gas guzzler. But I can't afford a new car, a sheet of plywood fits in the back neatly between the wheel wells, and I only live 3.2 miles from work. Still, I'm tempted to get a bicycle and stick my tongue out at every gas station I pass.

[UpInArms]

45. Oil extends gains, up 2% to $64.76 a barrel

Oil extends gains, up 2% to $64.76 a barrel
11:01am Today

[ozymandius]

4. Part of Public Private Investment Partnership Plan Looks Dead on Arrival

from Naked Capitalism:

As readers may recall, we had been skeptical (and critical) of the Public Private Investment Partnership from the outset. It was the third effort at a program that had failed twice under Hank Paulson, namely, to have banks get dud assets off their balance sheets by selling them to a sucker.

That's why this program has never gotten airborne. It requires a bagholder.

The problem isn't, contrary to PR designed to mislead the public, that the assets are hard to value. That holds only for an itty bitty percentage of the total. The real problem is that the banks are carrying them at above market values, and above any reasonable long term value too (their protests to the contrary). The problem is not the saleabilty of said assets, it's that they don't like the prices. Selling them at below the marked value leads to losses, which in turn would reduce their equity at a time when they have been told, in no uncertain terms, to get more.

So the only way the plan works is if someone overpays. The only party that might have reason to is Uncle Sam. The whole point of the "public private investment" part of this is to disquise the overpayment. So the plan is an opaque subsidy to the banks.

Why not do so in a more straightforward fashion? Well, if the Treasury did that, and got equity back, it starts to challenge the fiction that the public private partnership called banking in the US ought to be private. Team Obama has been schizophrenic about oversight, reacting to political hot buttons but not reining in bank risk taking, which is what it really should be worried about. Banksters have every incentive to swing for the fences to try to show good earnings and slip the government leash. And the Feds, contrary to expectations, are taking a tougher line on that front. I'm encouraged that the powers that be are not allowing the banks to base extrication from TARP based on 1Q earnings, which Meredith Whitney dismissed as "manufactured." She was also of the view that core earnings were "negligible" and that banks had broken business models and no clear remedies. Apparently the authorities share at least some of her reservations.

....

We had heard early on that the bank loan side, aka the Legacy Loan Program, was going nowhere, so the semi-official word is no surprise. The excuse is that buyers fear a rule change (code for executive comp restrictions, amusing how that is the new hobbyhorse), but the bigger issue is that (again) the banks see no reason to participate. Translation: the program appears unlikely to produce bids for more than the carrying value of their assets.

This is a lengthy post from Yves Smith with large excerpts from the Wall Street Journal article and well worth a whole review.

[ozymandius]

5. Bill Clinton: I Should Have Raised More Hell About Derivatives Being Unregulated

Bill Clinton gives, to use David Leonhardt's term, an "impressively honest" analysis of his role in bringing about the financial crisis, particularly the failure to adequately regulate derivative markets:

Bill Clinton, on His Economic Legacy, by David Leonhardt: Given the range of issues Peter Baker covers in his article about Bill Clinton for the coming New York Times Magazine, there was not room for anything close to Mr. Clinton’s entire comments on his economic record. ... So we’re going to post, below, the transcript of that portion of the discussion between Mr. Clinton and Mr. Baker. ...

NEW YORK TIMES: Speaking of banks and toxic assets... You know that Time magazine named you and said you should have done this, that or the other thing. What do you say to that? Is there anything you would have done differently? ...

Mr. CLINTON: Now, there basically have been three charges,... one, because I enforced the Community Reinvestment Act for the first time and over 90 percent of all lending done under that law was done when I was president, $300 billion, that part of that was a lot of little banks made loans to people they had no business making loans to to buy houses so they could check the box for the Community Reinvestment Act. That’s the right-wing argument.

Then there’s the argument from the left that I shouldn’t have signed the bill that got rid of the Glass-Steagall law because that enabled banks and investment banks in effect to merge their functions.

And then there’s the argument that I make, which is that I should have raised more hell about derivatives being unregulated. I believe the last one is by far the most valid … although I don’t think that the Congress would have permitted anything to be done because Alan Greenspan was against it.

.....

But I do believe on the derivatives they made the argument, the people who were against regulating it, that people like you weren’t buying derivatives. It wasn’t like you were investing your 401(k) in derivatives. You were investing your 401(k) in mutual funds, which were subject at least under normal times to the jurisdiction of the S.E.C., which was supposed to be minding the store. And so because we had a hostile Republican Congress which threatened not to fund ... the S.E.C. because of what Arthur Levitt was doing to try to protect the American economy from meltdowns. They said, “Oh, he’s interfering with a free market” and all that. This is what he’s supposed to do.

That's the part I'm not so sure about. If a Clinton clone had been in charge rather than Bush, would this have still happened? I can't be sure, of course, and maybe the clone administration would have stepped in before things got out of hand, but little cues like the deference to Greenspan he indicates above (who would have opposed trying to prick the bubble if he had admitted a bubble was inflating) makes me wonder. So I think it probably would have happened anyway.

ozymandius here: I think many may say, "Tut-tut President Clinton - we know that Alan Greenspan and his allies in Congress are all to blame for this." I however do not think this is true. Clinton employed Robert Rubin and Larry Summers as Secretaries of the Treasury - both ardent supporters, enablers and forces that crushed any dissent that contradicted Greenspan's doctrine.

---

edited for this link

[Tansy_Gold]

16. I T A, Ozy, with your comment.

Clinton's administration wasn't economy-oriented. He hadn't inherited an economic crisis and was therefore vulnerable to the the sleight of hand manipulations of the Greenspan-Summers-Rubin triumvirate. Time$ were good, so there was nothing to worry about.

In fact, it's probably much more likely that ALL THREE factors contributed massively and IN ASSOCIATION to create the crisis. Had any one of them been properly and adequately controlled, we might not have had the meltdown.

Then again, we need to remember that for the investment "idle rich" class, there's nothing wrong with the economy just the way it is. It's just us peasants whining.


Tansy Gold, peasant at large

[ozymandius]

7. GM’s ‘Main Street’ Bondholders Would Be Losers, Lawyer Says

May 28 (Bloomberg) -- The loser in a General Motors Corp. bankruptcy would be Main Street, not Wall Street, says a lawyer who represented Chrysler LLC’s dissident lenders and who is organizing some GM bondholders.

GM, the largest U.S. automaker, faces a probable bankruptcy filing by June 1 following the refusal of bondholders to accept a 10 percent equity stake in a new company, part of a U.S.- backed plan to give the American and Canadian governments equity ownership of as much as 69 percent and a 17.5 percent trust for unions. GM bondholders hold $27 billion in claims.

....

Retirees Versus Retirees

“The story that hasn’t been told is, this isn’t GM’s union retirees versus the bondholders. It’s retirees versus other retirees,” said Flaschen, who isn’t involved in the GM matter. While Chrysler’s dissidents lost steam because they were forced to identify themselves and faced public stigma, including alleged death threats, GM’s opponents may be harder to criticize, Flaschen said.

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

---

Here's a stunning price scenario if bonds were trade for equity:

"bonds may be worth 9 cents on the dollar if stock in the new GM reaches half of the company’s decade-long high of about $63 a share" (and today) "about half a cent on the dollar at today’s price of GM stock"

[Amonester]

41. Because 'Main Street' is too small to succeed.

No We Can't

[ozymandius]

8. Two U.S. auto parts makers file for Chapter 11

BANGALORE (Reuters) - Auto parts makers Visteon Corp and Metaldyne Corp filed for Chapter 11 bankruptcy protection for their U.S. operations, becoming the latest casualties of the global auto industry crisis.

Both Visteon, which Ford Motor Co spun off in 2000, and Metaldyne Corp, a unit of Japan's Asahi Tec, said on Thursday that the bankruptcy filings do not include their non-U.S. entities or operations.

The announcements came as automaker General Motors Corp moved closer to filing the largest bankruptcy ever for a U.S. industrial company. The worst economic crisis in decades is re-shaping the global auto industry, driving the weakest to the wall and hammering sales and profits across the board.

In a filing with the U.S. Bankruptcy Court for the District of Delaware, Visteon listed total assets of $4.58 billion and total debts of $5.32 billion.

http://www.reuters.com/article/newsOne/idUSTRE54R12F20090528

[ozymandius]

9. Check out this map of state-by-state real estate values.

http://www.mint.com/blog/finance-core/mint-map-real-estate-by-state/

[skoalyman]

11. morning ozy looks like an early morning stock futures rally

ahead of new home sales data :eyes:
love the cartoon it reminds me of my dealings with visa:puke:

[ozymandius]

12. The whip-saw just keeps on whippin'.

I wonder if The Onion is behind the market rumor-du-jour?

And good morning :donut: :donut: :donut:

[AnneD]

60. Hey Skoalyman

:hi:. Guess we don't need to ask what's in your wallet.:spray:

[skoalyman]

74. lol definitely not visa

:P

[tclambert]

64. Wow. Florida house prices got hammered.

Even worse than Michigan. Hey, Dr. Phool, how's the state budget crisis looking down there? I seem to recall Florida tries to run the state on sales taxes alone. With car sales down and houses selling for less, that makes the arithmetic look pretty dicey.

[Dr.Phool]

65. We have a budget?

We have the dumbest and most corrupt legislature in the country.

They're cutting everything. They were trying to lease Alligator Alley (I-75 between Naples and Miami) but couldn't get any takers. Schools are taking the biggest hit. They have sales tax exemptions for any industry that wants to buy it (ostrich feed). They cut out the intangibles tax, which only affected people with over $1 million in stocks and bonds.

Developers are buying a bill to exempt them from paying for road and infrastructure improvements where they develop land.

It's a mess you wouldn't believe.

The arithmetic would be dicey, but the only thing these fucking politicians, from both parties can only count bribes and campaign contributions.

But, it still beats snow.

[bain_sidhe]

72. Only because Michigan never got the "boom"

Our prices didn't have as far to fall.

[Demeter]

80. The Prices Started Falling Earlier, Too, in Michigan

The peak (due to the Clinton years, we did have something approaching prosperity) was right around 9/11, and it's been downhill ever since.

[ozymandius]

10. JPMorgan warns on credit card woes (larger than Advanta's losses)

Jamie Dimon, JPMorgan Chase chief executive, warned on Wednesday that loss rates on the credit card loans of Washington Mutual, the troubled bank acquired last year by JPMorgan, could climb to 24 per cent by the year end.

In the past, credit card loss rates have tracked the unemployment rate but that relationship has been breaking down for more troubled credit card portfolios, such as the $25.9bn in WaMu credit card loans.

At the end of the first quarter, 12.63 per cent of the WaMu credit card loans were deemed uncollectable by JPMorgan. The bank estimates that figure could reach 18 to 24 per cent by the end of 2009, depending on economic conditions.

Describing credit cards as JPMorgan’s most challenged business, Mr Dimon said loss rates for the company’s larger $150bn portfolio of Chase credit cards could reach 9 per cent in the third quarter and as much as 10.5 per cent by the end of the year, depending on housing and unemployment trends. That compares with first-quarter charge-off rates of 6.86 per cent on the Chase card portfolio.

http://www.ft.com/cms/s/0/5b5838c8-4adf-11de-87c2-00144feabdc0.html?nclick_check=1

---

This data blows a huge hole in the central argument the Banksters made against the latest credit card holder's bill of rights: that people in hard economic times need access to credit and the Banksters were the ones to give it to them. Who in their right mind would issue credit - even at usurious rates - in a climate this harsh?

[Tansy_Gold]

15. I wonder what would happen if they lowered their rates,

stopped with the horrendous late fees, and generally treated their customers like human beings? Do you think their default rate might, um, drop?



Tansy Gold, wondering as usual. . . . .

[Demeter]

23. The Credit Card Cos. Having Been Bilking Us Since 1995 or so

which is when I determined to get out of their racket. They aren't going to magically do right after all those years of free rein.

and Congress has no stomach for actually running anything. Not with the comedy team of Reid and Pelosi in charge.

So there we are.

[InkAddict]

29. Human beings are still able to use credit cards; zombies use cash

complete the analogy anyway you like Tansy - the outrage of using millions of cherry stakes on those (previously?) thought of as loved ones would probably only last about two weeks.

[Hugin]

35. But... But... But, then they wouldn't get their 20% a year profits!

:forcryingoutloud:

Someday! Someday! We're going to find out that exactly the same games as were played with the supposed 'sub-prime' loans are being played with the Credit Cards, CDOs and FICO scores. (only more so)

Human beings? We're merely a commodity to these guys. A number.

Which reminds me... I've been reading about the Great War. The 'War to end all wars'... 350,000 casualties in ONE OFFENSIVE on ONE SIDE!

There is an interesting opinion on it, I've read... The Great War was all about contempt. Contempt! Boy, we're seeing our fair share of contempt lately. I'm beginning to think we're still fighting the Great War. Granted there are pauses now and then and Oligarchy and Aristocracy have largely taken the place of Monarchy... But, it's basically the same.

Contempt of those who have for those who don't... It's not enough to be indifferent. TPTB must hate those they stomp on in order to live with their deeds. Dehumanize. No empathy.

[tclambert]

66. And for 350,000 casualties, what did they gain?

A few miles of dirt? Maybe one fort changed hands, then changed back again? WWI was the stupidest war ever fought. Vietnam was second stupidest. Here's a rule of thumb: If your general proposes a war of attrition, FIRE HIM! By the way, what's our strategy in Iraq?

[Demeter]

81. There's a War of Attrition Against the Workers Right Here at Home

the General Strike is looking more likely every day....as are the FRSP!

[ozymandius]

13. NovaStar (sub-prime lender) Close to Calling it Quits

NovaStar, the one-time mega subprime lender is now a shell of its former self, according to its 2008 10-K report filed today with the SEC.

What’s more, that shell is cracking as the report is full of dire predictions.

“We have discontinued our mortgage lending business, have sold most of the loans that we had not yet securitized, and have sold our mortgage servicing assets to generate cash to repay indebtedness and to reduce cash requirements,” reads the report. “We also have terminated all but a core group of our workforce. Our historical operations are now limited to managing our existing portfolio of mortgage securities.”

The report goes on to say that considering the depth of disruption to subprime mortgage loan markets in the United States, there are no assurances that these markets will improve or return to past levels, damping any chance of a meaningful recovery.

http://www.housingwire.com/2009/05/27/novastar-close-to-calling-it-quits/

[UpInArms]

14. dollar watch

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

ast trade 80.802 Change +0.470 (+0.60%)

Dollar Bolstered as Debt Rating Confirmed, Risk Appetite Eases

http://www.dailyfx.com/story/topheadline/Dollar_Bolstered_as_Debt_Rating_1243467790470.html

Sentiment is a fickle thing – especially when it is backed by the full monetary interests of a speculative market. For the dollar’s part, optimism is still a complicated issue. On the one hand, the currency’s function as a safe haven is still an active driver for price action.



The Economy and The Credit Market



Sentiment is a fickle thing – especially when it is backed by the full monetary interests of a speculative market. For the dollar’s part, optimism is still a complicated issue. On the one hand, the currency’s function as a safe haven is still an active driver for price action. The unrequited advance in risk appetite since April has recently met resistance and market participants are one again questioning fundamentals’ role in direction. On the other, the greenback is still the barometer for economic activity the world over. To shake this contradiction in purpose, the US currency requires unmistakable evidence that the world’s largest economy is recovery - and doing so ahead of its global counterparts. This will be a far more difficult charge than simply jumpstarting the economy though. Along the way, the financial markets and budding recovery will have to survive the eventual unwinding of government support (as toxic debt is disseminated back into the market place and TARP loans are repaid). What’s more, global leaders may renew their case for establishing a new reserve currency to deleverage the world’s dependency on the US economy going forward.

...more...

Yen Suffers as Geopolitical Tensions Escalate

http://www.dailyfx.com/story/bio2/Yen_Suffers_as_Geopolitical_Tensions_1243508773965.html

The most significant price action overnight was in the Yen with the single currency getting hit hard on an escalation of geopolitical tensions with North Korea in light of the ongoing concerns over the nuclear testing. This catapulted Usd/Jpy back above 97.00 with the pair trading some 1.70% higher on the day. In other price action, currencies continue to be very well supported with any dips used as opportunities to build on existing long positions. The commodity bloc currencies have been the outperforming currencies on the day with the higher yielding Kiwi benefiting the most. Yesterday’s heavy selling in the US equity market along with a reaffirmation by Moody’s of the US Aaa credit rating, had weighed on currencies into the afternoon, but with equity futures now tracking higher on the day, carry traders have been quite comfortable building on their positions. As a result of the mentioned Yen weakness and recovered risk appetite, the yen crosses have also been surging with many short-term specs getting stopped after playing the short side overnight. On the whole, the slew of Eurozone data was mixed with consumer confidence, business climate and industrial confidence coming in weaker, while economic confidence and German unemployment were better than forecast. Meanwhile Eurozone services confidence was as expected. ECB Constancio was also on the wires echoing recent Bini-Smaghi remarks that the central bank has not decided on a floor for rates. After shining in previous sessions, the Pound has been showing relative weakness today, following Blanchflower warnings on the economy and a weaker CBI Index. Oil has been trading flat on the day despite higher equity futures and a weaker USD, after OPEC decided to leave quotas unchanged. There had been speculation earlier in the week of potential production cuts. Looking ahead, US durable goods (0.5% expected), initial jobless claims (628k expected) and continuing claims (6745k expected) are due at 12:30GMT. New home sales (360k) follow shortly after at 14:00GMT.

...more...

[Ghost Dog]

36. Treasuries Rise on Speculation High Yields Not Sustainable

May 28 (Bloomberg) -- Treasuries rose after yesterday’s biggest drop since January on speculation the U.S. economy won’t recover soon enough from the deepest recession in 50 years to keep yields at the highest level in six months.

Ten-year notes snapped four days of declines that pushed the difference in yield between 2- and 10-year securities to a record high on concern the flood of supply will overwhelm buying by investors and the Federal Reserve. A government report showed the number of people collecting unemployment insurance rose to a record in the week ended May 16 for the 17th straight time, reflecting restrained hiring.

“We’re on a bit of a roller-coaster ride at the moment,” said Sean Maloney, a fixed-income strategist at Nomura International Plc in London. “The sell-off has been excessive given the so-called improvements in the economy have been rather anemic.”

The 10-year note yield fell six basis points, or 0.06 percentage point, to 3.68 percent at 8:37 a.m. in New York, according to BGCantor Market Data. The price of the 3.125 percent security due in May 2019 rose 1/2, or $5.00 per $1,000 face amount, to 95 17/32.

Yields increased 19 basis points yesterday, the most since Jan. 29. The bond’s 14-day relative strength index fell to 26.5 yesterday before trading at 29.7 today. A value below 30 signals the drop was excessive and a reverse may be due.

Mortgage Bond Yields

“Government bonds now look very ‘cheap,’” Goldman Sachs Group Inc. strategists led by Francesco Garzarelli in London wrote in a report today. “We are entering a ‘buy zone,’” according to Goldman, one of the 16 primary dealers that are required to bid at government debt auctions.

...

Auctions so far this week have eased concern that international investors will shy away from Treasuries as U.S. borrowing surges. Indirect bidders purchased the most five-year notes in three months at an auction yesterday.

The difference between 2- and 10-year yields was 2.71 percentage points, after widening to 2.76 percentage points earlier, the most ever.

Yield Spread

A steepening yield curve suggests investors are demanding more to lend to the government for longer terms because of the risk an economic recovery will lead to faster inflation.

The difference between rates on 10-year notes and Treasury Inflation Protected Securities, which reflects the outlook among traders for consumer prices, widened to 1.94 percentage points, the most since September.

“The Fed cannot stay silent for long about the talk of quantitative easing endangering the long-term inflation outlook,” Ciaran O’Hagan, a fixed-income strategist in Paris at Societe Generale SA, wrote in a note today.

The U.S. will sell $3.25 trillion of Treasuries in the fiscal year ending Sept. 30 to fund bank bailouts, stimulus spending and a record budget deficit, according to Goldman.

The central bank bought $130.534 billion in U.S. debt since March 25 as part of a $300 billion effort to lower consumer borrowing costs. Officials also embarked on a plan to buy as much as $1.25 trillion in so-called agency mortgage-backed securities.

“The market is starting to think about how the Fed’s buying program can be reversed once the economy starts to pick up,” said Rasmus Rousing, a fixed-income strategist in Zurich at Credit Suisse Group AG. “The upward pressure on yields has been enormous.”

/... http://www.bloomberg.com/apps/news?pid=20601009&sid=aaF8ORQ7XUuI

[UpInArms]

17. Citi, SEC in talks to settle asset disclosure probe: report

http://www.reuters.com/article/businessNews/idUSTRE54R10220090528?feedType=RSS&feedName=businessNews

(Reuters) - Citigroup Inc is in early negotiations with the U.S. Securities and Exchange Commission (SEC) to settle a probe into whether it misled investors by not properly disclosing the amount of troubled mortgage assets it held as the markets started to fall in 2007, the Wall Street Journal said, citing people familiar with the matter.

An issue being debated inside the SEC is whether Citigroup, as a recipient of government-rescue funds, should pay a large penalty in the case, according to the paper.

A Citigroup spokesman told the paper that it is against the firm's policy to comment on such regulatory issues.

The SEC is also considering bringing cases against individuals related to disclosure of mortgage assets, the paper said, citing people close to the situation.

...more...

[Demeter]

82. Hmmm...Too Stupid, or Too Crooked, to Live

[UpInArms]

18. Costco net falls on weak discretionary spending

http://www.reuters.com/article/businessNews/idUSTRE54R1GJ20090528?feedType=RSS&feedName=businessNews

(Reuters) - Costco Wholesale Corp on Thursday said its third-quarter net profit fell 29 percent, as shoppers stuck to buying basics like food and medicine, and pared back discretionary purchases of clothes or jewelry.

Costco, the No.1 U.S. warehouse club, said its profit was $209.6 million, or 48 cents a share, for its fiscal third quarter ended May 10, 2009, compared with $295.1 million, or 67 cents per share, a year earlier.

Quarterly sales fell 5 percent to $15.48 billion, excluding membership fees, which decreased 6 percent to $328.4 million, the company said in a statement.

Analysts had on average expected earnings of 53 cents per share, excluding special items, according to Reuters Estimates.

As the recession curtails household budgets, warehouse clubs like Costco, Wal-Mart Stores Inc's Sam's Club and BJ's Wholesale Club Inc have attracted shoppers looking for low prices on necessities like groceries and toiletries.

...more...

[Dr.Phool]

22. I was there last month.

I noticed that a lot of items that they usually carry are missing. Their DVD, book, and CD section were almost non-existent now. I mainly spent my trip in the food section, but if that's any indication, they're missing items all over the store.

I did manage to snare a Dr. Strangelove DVD for $7 though.

[burf]

31. This could be a positive

or at least spun that way. Less people are stocking up at the discount centers because the green shoots are sprouting! It just serves as proof the recession is over. Happy days are here again.

I think I'll go throw up now.

[AnneD]

61. I'll take a 209.6 million dollar profit

ANY quarter. Just think, it could have been bigger if they had only laid off more people. What a sorry spin on this story. Just because they pay folks well and didn't lay anyone off they had a poor showing and olny made 209 million. It's all labours fault. x(

[Dr.Phool]

19. Denninger: Mortgage rates jump nearly 30% in ONE DAY.

I know I keep pointing out this chart, and what it means, but you can't ignore it. It is, in fact, everything.

This chart is not signaling economic recovery when on the same day the TNX jumps by 5% the market declines by 100 DOW points.

Guys, this is the start of the bond market dislocation that I have written about for the last two years. It may stop or it may accelerate, but this much is certain - even if it stops here the dream of a 4% mortgage that Bernanke has hawked as the "key" to housing stabilization is not going to happen.

When we got down into the mid 4s I told people close to me to either lock or refinance and do it now. Some did, some were holding out for that 4% number.

How's that look now?

Let me show you what happened on eRATE's real-time mortgage rate quoter this afternoon:

http://market-ticker.denninger.net/authors/2-Karl-Denninger

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

I know this guy goes off the deep end occasionally. But, sometimes he points out things nobody else is looking at.

[Demeter]

25. All the "Financial Advice" and "Forecasts" Have Been Deadly

The only ones worth following say: get out of debt, stockpile necessities, buy a little gold, do-it-yourself, and renewable energy including especially conservation and insulation. And friends--the real kind.

I'm hoping that adversity will make a better nation and people (if only by killing off the nasty ones), but I'm not betting on it.

[Hugin]

27. I was looking into the "Mortgage Relief Program"...

Thank goodness I didn't apply.

One of the not-widely-known aspects of the program is that it *MAY* start off at 2% the first year... But, every year after, it rises 1% a year until it reaches the Mortgage Rate on the day of closing.

For instance, if I'd closed yesterday. It would rise over 4 years to be 6(something)%. A real steal that one is... An ARM by any other name. :eyes: Two whole %s -higher- than my rate now.

Oh, and did I mention there's a 40 to 60 day backlog on closing. So, if you'd filed today who knows what the rates would be on the actual closing date.

Of course, being a Banker relief program for the Bankers by the Bankers (Sponsored by the Republicans) I was expecting there to be a few supply-side flies in the ointment.

Basically, the whole thing is a ruse to get papers on the house so they can foreclose and spread out the failures... Delay. Delay. Delay. That's the name of the game for the next few years. IMHO.

[Festivito]

28. Debt: 05/26/2009 11,305,594,490,199.65 (UP 3,918,563,370.71) (Small moves.)

(Small moves. Public Debt within half a billion of 7T$ even, expect 7T$ to be hit in next couple of days. 7 and 4 1/3. It's not a big deal, just easy to remember.)

= Held by the Public + Intragovernmental(FICA)
= 6,999,554,378,645.33 + 4,306,040,111,554.32
UP 178,213,075.69 + UP 3,740,350,295.02

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.79, ABOUT TEN BUCKS for a 1B$ 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 the 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)

PERSONALIZED DEBT:
Every 12 seconds we net gain a another American, so at the end of the workday of this report, there should be 306,515,942 people in America.
http://www.census.gov/population/www/popclockus.html ON 05/25/2009 01:14 -> 306,504,012
Currently, each of these Americans owe $36,884.2.
A family of three owes $110,652.59. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 to 32 days.
The average for the last 21 reports is 5,728,299,867.54.
The average for the last 30 days would be 4,009,809,907.28.
The average for the last 32 days would be 3,759,196,788.08.
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$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 86 reports in 126 days of Obama's part of FY2009 averaging -0.07B$ per report, 0.00B$/day so far.
There were 161 reports in 238 days of FY2009 averaging 7.96B$ per report, 5.38B$/day.

PROJECTION:
There are 1,335 days remaining in this Obama 1st term.
By that time the debt could be between 13.1 and 18.5T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
05/26/2009 11,305,594,490,199.65 BHO (UP 678,717,441,286.57 so far since Obama 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: 1,280,869,593,287.20 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
05/04/2009 +000,068,750,275.89 ------------******* Mon
05/05/2009 +000,122,936,524.80 ------------********
05/06/2009 -000,058,764,073.21 ----
05/07/2009 +027,679,213,817.18 ------------**********
05/08/2009 -000,216,334,016.92 ---
05/11/2009 -000,029,759,155.68 ---- Mon
05/13/2009 -000,207,515,478.68 ---
05/14/2009 +013,927,016,419.76 ------------**********
05/15/2009 +013,064,365,189.63 ------------**********
05/18/2009 -000,012,816,531.74 ---- Mon
05/19/2009 +000,244,659,127.63 ------------********
05/20/2009 +000,422,183,214.17 ------------********
05/21/2009 +016,742,591,292.36 ------------**********
05/22/2009 +000,007,301,981.46 ------------******
05/26/2009 +000,178,213,075.69 ------------******** Tue

71,932,041,662.34 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,640,962,686,940.58 in last 250 days.
That's 1,641B$ in 250 days.
More than any year ever, including last year, and it's 161% of that highest year ever only in 250 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 250 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=3894400&mesg_id=3894430

[Tansy_Gold]

38. I don't read your update every day, Festivito, but when i do i

am always amazed.

:yourock:


Thanks!


TG

[Festivito]

39. That's fine. I like acclimating us to the numbers.

That way we're all less likely to be ambushed by ditto heads and paid-off pundits.

Thanks for the comment. I need to update the the last part of the report and keep putting it off, and I'd better get back to my real work. :-O

[AnneD]

51. I want to thank you for doing this.......

I can't bear to look at it every day-it's the fiscally conservative in me. But I do check it several times a week and it just breaks my heart. Thanks for the vital reality check. It is one of the few reality checks we can get. If I depended totally on the M$M for facts, I'd be fiscally up a creek now.

[Festivito]

73. Debt: 05/27/2009 11,301,114,877,848.38 (DOWN 4,479,612,351.27) (Small moves, mostly FICA.)

(Small moves. Slight public debt rise. FICA side fluxates near month end. My computer power jack failed, limping, yikes.)

= Held by the Public + Intragovernmental(FICA)
= 6,999,887,200,564.75 + 4,301,227,677,283.63
UP 332,821,919.42 + DOWN 4,812,434,270.69

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

THINKING IN BILLIONS: Think 3 or 4 dollars per billion in a 307-Million person America.
If every American, man, woman and child puts in $3.26 each THAT'S 1B$.
A family of three: Mom, Dad, Child: $9.79, ABOUT TEN BUCKS for a 1B$ 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 the 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)

PERSONALIZED DEBT:
Every 12 seconds we net gain a another American, so at the end of the workday of this report, there should be 306,523,142 people in America.
http://www.census.gov/population/www/popclockus.html ON 05/25/2009 01:14 -> 306,504,012
Currently, each of these Americans owe $36,868.72.
A family of three owes $110,606.15. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 21 reports in the last 30 days.
The average for the last 21 reports is 5,317,059,100.58.
The average for the last 30 days would be 3,721,941,370.40.

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$/day.
There were 75 reports in 112 days of GWB's part of FY2009 averaging 8.03B$ per report, 5.38B$/day.
There were 87 reports in 127 days of Obama's part of FY2009 averaging -0.15B$ per report, -0.04B$/day so far.
There were 162 reports in 239 days of FY2009 averaging 7.88B$ per report, 5.34B$/day.

PROJECTION:
There are 1,334 days remaining in this Obama 1st term.
By that time the debt could be between 13.1 and 18.4T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
05/27/2009 11,301,114,877,848.38 BHO (UP 674,237,828,935.30 so far since Obama 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: 1,276,389,980,935.90 so far this fiscal year.

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
05/05/2009 +000,122,936,524.80 ------------********
05/06/2009 -000,058,764,073.21 ----
05/07/2009 +027,679,213,817.18 ------------**********
05/08/2009 -000,216,334,016.92 ---
05/11/2009 -000,029,759,155.68 ---- Mon
05/13/2009 -000,207,515,478.68 ---
05/14/2009 +013,927,016,419.76 ------------**********
05/15/2009 +013,064,365,189.63 ------------**********
05/18/2009 -000,012,816,531.74 ---- Mon
05/19/2009 +000,244,659,127.63 ------------********
05/20/2009 +000,422,183,214.17 ------------********
05/21/2009 +016,742,591,292.36 ------------**********
05/22/2009 +000,007,301,981.46 ------------******
05/26/2009 +000,178,213,075.69 ------------******** Tue
05/27/2009 +000,332,821,919.42 ------------********

72,196,113,305.87 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008.
US borrowed $1,636,483,074,589.31 in last 251 days.
That's 1,636B$ in 251 days.
More than any year ever, including last year, and it's 161% of that highest year ever only in 251 days.
And it is over 100% of ANY dismal Bush, for any dismal Bush-year, ONLY IN 251 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=3895865&mesg_id=3896061

[spotbird]

47. Where do other people who frequent this

thread invest their money? I'm curious, not looking for advice, but I do wonder what people with this perspective consider prudent investment strategy.

[ret5hd]

48. A big investor in inner-spring matress futures myself.

[TheMachineWins]

49. I bought a fountain and people just throw money in it!

Then there's all the ponzi schemes and real estate frauds, not to mention the credit default swaps, the cross currency arbitrage and everything the OxyClean guy ever sells!

[AnneD]

52. I have a mattress......

I'm looking for a good street corner to open up shop. If I'm going to be homeless and screwed, I'd rather cut out the middleman and hide my earnings in the springs of my home office. :evilgrin:

[Dr.Phool]

53. I tried that mattress gig on a corner once.

Comedy Central called.

[AnneD]

58. You need to brinf Fudd with you...

Women love guys with dogs. Give him a sandwich board and he can help you advertise:evilgrin:

[Dr.Phool]

67. Sandwich board?

He's so fat, he'd need a billboard.

And, he's hog the mattress. He pushed my wife out of the bed a few times, when he was younger. She put the bed on risers, and he can't get up there anymore.

[spotbird]

56. Surly it isn't stuffed with dollars...nt

[AnneD]

57. Do you think I'd devulge....

all my hiding places ;)

[tclambert]

69. I put a little bet down on Fannie Mae recently.

I'm hoping it will make a decent recovery in a few years. So far, I'm down about 14 cents a share. Ouch.

I keep looking at the auto companies. They are struggling now, but in a few years the pent-up demand for new cars should make somebody big profits. But who? I'm leaning toward Ford at this point, but I haven't pulled the trigger yet on buying any. I know GM is working on some pretty good future cars. But they are trading shareholder equity for debt, so any shares of stock you buy now will only be a tiny fraction of a share later.

I've also been considering utilities. People are still paying their electric bills (mostly), and some of the utilities pay a decent dividend rate. Well, decent compared to other things in the current market. Our local electric utility, DTE, is paying about 7% dividends. 7% doubles your money in 10 years, if you compound it. It was trading in the 40s to low 50s in past years, and is about $30/sh now. Unfortunately, auto factories are among their customers.

Mostly I'm sitting on my cash, saving it as an "unemployment warchest" in case we see a decrease in our incomes. I think my wife and I have pretty safe jobs, but they could try to cut our hours or benefits or something.

In a recession, there should be good investment opportunities, *IF* you can predict which currently bargain-priced companies will survive and benefit from the subsequent recovery.

Well, there's my free advice, worth every penny you paid for it.

[Tansy_Gold]

85. Invest? Money?? ha ha ha ha ha ha haha ha hahahah

:rofl: :rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:





:sarcasm:




TG

[TheMachineWins]

54. I was picking my nose, found some "green shoots"

I firmly believe they'll be taking off by late 2010.

[AnneD]

59. I prefer ...

going for the gold myself.

[tclambert]

70. If you get lumps of grayish stuff,

you're putting your finger in too far.

[AnneD]

71. hehehehehehe....

snarky. I think you have identified the source of the problem.

[TheWatcher]

68. OK Class, TODAY'S Propaganda Buzz Word for the Silliness is "Relief"

Stocks rise on relief over gov't debt auction

Stocks turn higher on relief over decent demand for government debt; oil extends gains

NEW YORK (AP) -- The stock market is again taking its cues from the bond market.

Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.

Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers' appetite for debt with an unprecedented level of bond sales.

The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.

http://finance.yahoo.com/news/Stocks-rise-on-relief-over-apf-15373244.html?sec=topStories&pos=main&asset=&ccode=

Yes, it's pretty easy for The Fed to be pleased about the Treasury Auction when the main buyer was PROBABLY THE FED ITSELF. Helo Ben is no doubt continuing Monetization of The Debt, and this is just another Propaganda Puff Piece as the manipulators DESPERATELY try to maintain their precious 200 Point Trading Range they are calling a "Recovery".

Meanwhile, more BS Smoke and Mirrors as they brainwash the public two and fro about GM Bankruptcy: Will They, or Won't They?" like some cheap junk Reality TV Show, and we continue to be brainwashed that 623,000 New Job Losses is a sign of "Recovery".

Things have gotten so bad that you almost have to be numb to it all.

There is ONE MORE THING I would like to touch on, and I apologize to all the regular posters for posting it here, but since only Blind Worship of the Administration is allowed outside of this thread and only America can do right on the world stage is the accepted mentality, I would like to get everyone's opinion on the situation in North Korea.

I DO NOT WISH to turn this into too much tin foil, but I find it VERY interesting that all of a sudden this developing crisis is conveniently taking shape now.

After all, wasn't it Joe Biden HIMSELF that warned the faithful drooling flock RIGHT IN THE CITY WHERE I LIVE about an "International Crisis" that he "Promised" us would happen in the first six months of the Administration to "Test The Mettle Of This Guy?"

http://blogs.abcnews.com/politicalradar/2008/10/biden-to-suppor.html

I have several friends that just went on deployment, and I am VERY worried about this.

Isn't it just convenient that little North Korea wants to start World War III now?

[TheMachineWins]

75. Same old situation, the U.S. wants N.Korea's nuke business just as badly as

we say/propagandize that we don't want N.Korea to have nukes. Halliburton's been selling Iran nuclear technology for years, it's easily googled. The money is the issue as usual, the idea that Korea is full of a bunch of killers is just tension being sold to TV consumer-bots. China is full of killers, communist dictatorship slave drivers but the U.S. doesn't care about that either. It's all about who gets the nuke business, not who actually becomes a nuclear power. You can bet Russia is in on it too as well as a few "stans". If people are being deployed, it's probably like a business trip where scouts are being sent to survey where to put up the next big new facility/embassy.

I'm sure the Americans will be hated wherever they go, I feel really sorry for anyone being deployed anywhere. I know a guy who was in the army before the Iraq lie and got sent there to ride a .50 caliber machine gun on top of a hummer in convoys. It's dangerous wherever they go, people do not like Americans in a military role.

[Dr.Phool]

79. And Donald Rumsfeld was on the board of the company.

That built N. Korea's reactors in the first place.

This government is fucked up beyond all belief. I'm not taking a shot at Obama. It's everybody from the last 50 years, and probably the next 50 too.

[DemReadingDU]

83. Maybe the Korea development is a diversion

Something else overhyped to divert our attention from the financial mess. Or maybe not, I have no idea what to believe.

[Demeter]

84. North Korea Is Trying. Very Trying

Someday that idiot will die and they will address Korea's real problems.

I'm not particularly worried that Kim will bomb anybody or anything (except Seoul, and he'd have to be more than crazy to do that).

I am worried that hotheads here at home will do stupid things.

[TheMachineWins]

76. Here ya go, 1/2 think "it'll come back, it always does"

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5736061&mesg_id=5736061

It's a small survey for sure but it hits on a key issue, the issue of why propaganda works so well. It works so well because a lot of people want to believe it, they want to be lied to.