STOCK MARKET WATCH, Friday, January 7, 2011

[Pale Blue Dot]

Source: du

STOCK MARKET WATCH, Friday, January 7, 2011

AT THE CLOSING BELL ON Thursday, January 6, 2011

Dow 11,697.31 -25.58 (-0.22%)
Nasdaq 2,709.89 +7.69 (+0.28%)
S&P 500 1,273.85 -2.71 (-0.21%)
10-Yr Bond... 3.33 -0.01 (-0.30%)
30-Year Bond 4.43 -0.01 (-0.16%)

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Market Conditions During Trading Hours

Euro, Yen, Loonie, Silver and Gold

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Handy Links - Market Data and News:Economic Calendar    Marketwatch Data    Bloomberg Economic News    Yahoo! Finance    Google Finance    Bank Tracker    
Credit Union Tracker    Daily Job Cuts

Handy Links - Economic Blogs:
The Big Picture    Financial Sense    Calculated Risk    Naked Capitalism    Credit Writedowns
Brad DeLong      Bonddad    Atrios    goldmansachs666    The Stand-Up Economist

Handy Links - Government Issues:
LegitGov    Open Government    Earmark Database    USA spending.gov

Handy Links - Videos:
The Coming Collapse of the Middle Class    Charlie Rose talks with Roubini    Charlie Rose talks with Krugman
    William Black: This Economic Disaster    Bill Moyers with Kevin Drum and David Corn

Bush Administration Officials Convicted = 2
Names: David Safavian, James Fondren
Dishonorable Mention: former House majority leader, Tom DeLay

Bush Administration Officials Charged = 1
Name(s): Richard Lopez Razo

Financial Sector Officials Convicted since 1/20/09 = 11

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This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.

Read more: du

[Pale Blue Dot]

1. Today's Reports

Jan 07 08:30 Nonfarm Payrolls Dec 200K 150K 39K
Jan 07 08:30 Nonfarm Private Payrolls Dec 225K 162K 50K
Jan 07 08:30 Unemployment Rate Dec 9.8% 9.7% 9.8
Jan 07 08:30 Hourly Earnings Dec 0.1% 0.1% 0.0%
Jan 07 08:30 Average Workweek Dec 34.3 34.3 34.3
Jan 07 15:00 Consumer Credit Nov $2.0B -$2.5B $3.4B

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

[rfranklin]

5. Optimism over government's job report

Optimism over government’s job report grows
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Expectations are mounting that the December job report will be strong given a flurry of positive signals this week, economists said on the eve of the report.

“We’re optimistic we could see a decent number on Friday,” said Chris Low, chief economist at FTN Financial in New York.


Economists polled by MarketWatch are now expecting 175,000 nonfarm jobs created in December, up from 143,000 just a few days ago.

The unemployment rate is expected to remain steady at 9.8%. The Labor Department will release the data at 8:30 a.m. Eastern on Friday, and President Barack Obama will comment on the report from a Maryland manufacturing facility later in the day.

Many analysts lifted their estimates for job gains in the month after a record-breaking 297,000 increase in private sector jobs in December reported Wednesday from payroll firm Automatic Data Processing Inc and Macroeconomic Advisers. See ADP report.

For example, FTN’s Low said he doubled his December nonfarm payroll forecast to 200,000 from 100,000 after the ADP report was released.

Another factor leading analysts to expect a good job number has been a decline in initial claims for state unemployment insurance. See story on claims.

http://www.marketwatch.com/story/story/print?guid=48DA9100-19B9-11E0-80E4-00212804637C

[rfranklin]

25. Only 103,000 jobs added...

U.S. unemployment rate falls to 9.4% in December
WASHINGTON (MarketWatch) - The U.S. unemployment rate fell to 9.4% in December, the lowest level since May 2009, as the economy added 103,000 jobs in the final month of 2010, the Labor Department reported Friday. Payrolls for November and October were also revised higher by 70,000 jobs compared with prior government estimates. Economists surveyed by MarketWatch had forecast a 175,000 increase in jobs and were expecting the jobless rate to hold steady at 9.8%. Average hourly earnings in December rose 0.1% at $22.78. Economists polled by MarketWatch expected a 0.2% increase. Earnings have risen 1.8% over the past 12 months. The average workweek held steady at 34.3 hours.
http://www.marketwatch.com/

[Demeter]

33. Compare this to ADP's fiction

"Private employers added 297,000 jobs in December, triple the median estimate by economists and up from the gain of 92,000 in November, an ADP Employer Services report showed on Wednesday."

http://finance.yahoo.com/news/Surprise-jobs-surge-boosts-rb-2138114180.html?x=0

[DemReadingDU]

Karl Denninger analyzes the employment situation

1/7/11 Employment Situation Report: December
Karl Denninger

Hmmmm...... let's see. First, all those people talking about +500,000 are now cleaning the egg off their own faces, and I suspect their clients are going to be quite angry at the "error." If you recall on Wednesday I said that due to the ISM Services report, which showed much weaker employment demand that the ADP report, I was not going to believe the ADP number. That turned out to be a very good call, despite the catcalls it generated.

lots more, charts too
http://market-ticker.org/akcs-www?post=176723

[Roland99]

38. yeah, the ISM was up, what, 0.2% or something and the WSJ was saying factory orders were SURGING?

oy vey

[Name removed]

40. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Demeter]

54. That's a damning report

we are freaking doomed.

[Festivito]

2. Debt: 01/05/2011 14,011,526,727,895.85 (DOWN 2,522,315,398.56) (Wed, DOWN a little.)

(Good day.)
Wakey, wakey.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,384,965,101,319.63 + 4,626,561,626,576.22
DOWN 29,576,179.10 + DOWN 2,492,739,219.46

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 311-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,214.64 makes 1T$.
A family of three: Mom, Dad, Child: $9.64, ABOUT TEN BUCKS for a 1B$ 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 another American, so at the end of the workday of the report, there should be 311,076,992 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,041.99.
A family of three owes $135,125.97. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 33 days.
The average for the last 24 reports is 7,417,291,204.32.
The average for the last 30 days would be 5,933,832,963.45.
The average for the last 33 days would be 5,394,393,603.14.
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$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 67 reports in 97 days of FY2011 averaging 6.71B$ per report, 4.64B$/day.
Above line should be okay

PROJECTION:
There are 746 days remaining in this Obama 1st term.
By that time the debt could be between 15.0 and 18.0T$.
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)
01/20/2009 10,626,877,048,913.08 GWB (UP 4,898,681,252,731.43)
01/05/2011 14,011,526,727,895.85 BHO (UP 3,384,649,678,982.77 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,449,903,697,004.10 ------------* * * * * * * * * * * BHO
Endof11 +1,692,936,591,819.56 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
12/16/2010 -002,942,603,716.29 --
12/17/2010 +002,071,215,295.43 ------------*********
12/20/2010 -000,083,147,973.47 ---- Mon
12/21/2010 +000,210,432,562.88 ------------********
12/22/2010 +000,569,620,034.56 ------------********
12/23/2010 +001,962,709,844.10 ------------*********
12/24/2010 -000,001,321,466.66 -----
12/27/2010 -000,059,144,170.26 ---- Mon
12/28/2010 +001,124,227,282.97 ------------*********
12/29/2010 +000,165,778,043.38 ------------********
12/30/2010 +000,091,969,590.77 ------------*******
12/31/2010 +062,732,309,679.32 ------------**********
01/03/2011 -005,396,108,430.64 -- Mon
01/04/2011 -000,085,302,113.98 ----
01/05/2011 -000,029,576,179.10 ----

60,331,058,283.01 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(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=4684974&mesg_id=4684981

[Festivito]

60. Debt: 01/06/2011 14,011,793,170,981.72 (UP 266,443,085.87) (Thu, DOWN some.)

(Good day.)
In regulated hell, attempting to ease regulated hell.
(Debt under Obama seems to jump up big then drop slowly maybe up a little and down a little for days--repeat.)
= Held by the Public + Intragovernmental(FICA)
= 9,383,215,327,180.01 + 4,628,577,843,801.71
DOWN 1,749,774,139.62 + UP 2,016,217,225.49

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 311-Million person America.
If every American, man, woman and child puts in $3.21 THAT'S 1B$, and $3,214.56 makes 1T$.
A family of three: Mom, Dad, Child: $9.64, ABOUT TEN BUCKS for a 1B$ 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 another American, so at the end of the workday of the report, there should be 311,084,192 people in America.
http://www.census.gov/population/www/popclockus.html ON 10/04/2010 04:37 -> 310,403,677
Currently, each of these Americans owe $45,041.8.
A family of three owes $135,125.41. (And that is IN ADDITION to their mortgage.)

ANALYSIS:
There were 24 reports in the last 30 to 31 days.
The average for the last 24 reports is 7,373,684,746.71.
The average for the last 30 days would be 5,898,947,797.37.
The average for the last 31 days would be 5,708,659,158.75.
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$/day.
There were 174 reports in 253 days of Obama's part of FY2009 averaging 7.33B$ per report, 5.07B$/day so far.
There were 249 reports in 365 days of FY2009 averaging 7.57B$ per report, 5.16B$/day.
There were 251 reports in 365 days of FY2010 averaging 6.58B$ per report, 4.53B$/day.
There were 68 reports in 98 days of FY2011 averaging 6.62B$ per report, 4.59B$/day.
Above line should be okay

PROJECTION:
There are 745 days remaining in this Obama 1st term.
By that time the debt could be between 15.0 and 18.3T$.
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)
01/06/2011 14,011,793,170,981.72 BHO (UP 3,384,916,122,068.64 so far since Obama took office.)

FISCAL YEAR DEBT CHANGE, Sep 30 prior year to Sep 30 named year:
(One "* " for each 40B$ reached)
FY1994 +0,281,261,026,873.94 ------------* * * * * * * WJC
FY1995 +0,281,232,990,696.07 ------------* * * * * * * WJC
FY1996 +0,250,828,038,426.34 ------------* * * * * * WJC
FY1997 +0,188,335,072,261.61 ------------* * * * WJC
FY1998 +0,113,046,997,500.28 ------------* * WJC
FY1999 +0,130,077,892,735.81 ------------* * * WJC
FY2000 +0,017,907,308,253.43 ------------WJC
FY2001 +0,133,285,202,313.20 ------------* * * C&B
01-WJC +0,053,598,528,417.78 ------------* WJC 31% of FY, 40% of FY-Debt
01-GWB +0,079,686,673,895.42 ------------* GWB 69% of FY, 60% of FY-Debt
FY2002 +0,420,772,553,397.10 ------------* * * * * * * * * * GWB
FY2003 +0,554,995,097,146.46 ------------* * * * * * * * * * * * * GWB
FY2004 +0,595,821,633,586.70 ------------* * * * * * * * * * * * * * GWB
FY2005 +0,553,656,965,393.18 ------------* * * * * * * * * * * * * GWB
FY2006 +0,574,264,237,491.73 ------------* * * * * * * * * * * * * * GWB
FY2007 +0,500,679,473,047.25 ------------* * * * * * * * * * * * GWB
FY2008 +1,017,071,524,649.92 ------------* * * * * * * * * * * * * * * * * * * * * * * * * GWB
FY2009 +1,885,104,106,599.30 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * B&O
09GWB +0,602,152,152,000.60 ------------* * * * * * * * * * * * * * * GWB 31% of FY, 32% of FY-Debt
09-BHO +1,282,951,954,598.70 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO 69% of FY, 68% of FY-Debt
FY2010 +1,651,794,027,380.00 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO
FY2011 +0,450,170,140,090.00 ------------* * * * * * * * * * * BHO
Endof11 +1,676,654,093,192.35 ------------* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * BHO

LAST FIFTEEN REPORTS OF ADDITIONS TO PUBLIC DEBT(NOT FICA):
12/17/2010 +002,071,215,295.43 ------------*********
12/20/2010 -000,083,147,973.47 ---- Mon
12/21/2010 +000,210,432,562.88 ------------********
12/22/2010 +000,569,620,034.56 ------------********
12/23/2010 +001,962,709,844.10 ------------*********
12/24/2010 -000,001,321,466.66 -----
12/27/2010 -000,059,144,170.26 ---- Mon
12/28/2010 +001,124,227,282.97 ------------*********
12/29/2010 +000,165,778,043.38 ------------********
12/30/2010 +000,091,969,590.77 ------------*******
12/31/2010 +062,732,309,679.32 ------------**********
01/03/2011 -005,396,108,430.64 -- Mon
01/04/2011 -000,085,302,113.98 ----
01/05/2011 -000,029,576,179.10 ----
01/06/2011 -001,749,774,139.62 --

61,523,887,859.68 Total of 15 above reports.

Heavy borrowing seems to start after 09/18/2008 while Bush was in power JUST BEFORE fiscal year end.
Bush admin borrowed $962,245,245,654.01 in those last 124 days in office crossing two fiscal years.
$360,093,093,653.42 in last 12 days of FY2008, and $602,152,152,000.59 in subsequent 112 days before leaving office.

For a prettier and more explanatory view of our nation's debt:
http://www.brillig.com/debt_clock
http://www.usdebtclock.org/
DUer primer on National debt

(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=4686476&mesg_id=4686480

[Festivito]

61. Ex-Senate aide is sentenced in Abramoff case

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4685982

[xchrom]

3. recommend

[DemReadingDU]

4. Columbus Ohio National Century Financial - Rebecca Parrett's Husband Arrested

The saga continues...

1/7/11 Parrett's husband accused of lying

The husband of former fugitive Rebecca S. Parrett has been arrested in California and charged with lying to government investigators about his contacts with Parrett while she was hiding in Mexico.

Gary Green, 50, was to have his initial appearance at 5 p.m. yesterday in a Los Angeles federal courtroom, according to the U.S. prosecutor's office in Columbus. A judge there will determine whether he will be held without bond or returned to Columbus for a hearing.

If convicted, he could be sentenced to five years in prison.

An affidavit with the complaint says that Green supplied Parrett with large amounts of cash and clothing and then denied to law enforcement that he'd had any contact with his wife.

Green provided a source with clothing and $10,000 for Parrett in December 2008, according to the affidavit, and a similar cash drop for Parrett in 2008 or 2009.

Parrett, 62, was a fugitive for 31 months after being convicted of fraud, conspiracy and money laundering in U.S. District Court in Columbus. She and four other former executives were convicted in March 2008 in connection with the collapse of National Century Financial Enterprises.

She was arrested by Mexican immigration officials Oct. 26 and returned to the U.S., where she had been sentenced to 25 years in prison during her absence.

Green, Parrett's sixth husband, was the last person known to have seen her before she disappeared. They had lived together in Arizona.

http://www.dispatch.com/live/content/local_news/stories/2011/01/07/parretts-husband-accused-of-lying.html?sid=101


edit, I missed this article...

12/23/10 Parrett sentenced to 25 years for role in National Century fraud
Still declaring her innocence, former fugitive Rebecca Parrett finally was sent to federal prison today after more than 2 1/2 years on the lam.

"Good morning, Ms. Parrett, and welcome back," said Judge Algenon L. Marbley as Parrett stood before him in U.S. District Court for a face-to-face reading of her 25-year prison sentence.

"I'm sorry for what I did, but I'm innocent," said Parrett, 62, dressed in tan prison clothes and shackled at the ankles and wrists. She also wished the court, and her son - the only relative who attended her hearing today - a Merry Christmas.

more...
http://www.dispatch.com/live/content/local_news/stories/2010/12/23/national-century-parrett-sent-to-jail.html?sid=101



Link backwards to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4591371&mesg_id=4591414

[Demeter]

6. 6th Husband! What a Pig

or optimist.

[DemReadingDU]

7. perhaps the other 5 helped her too

:eyes:

[Tansy_Gold]

12. Perhaps an insanity defense?

Doing the same thing over and over, expecting different results? :shrug:



TG, married once, never again

[Demeter]

15. She had the money, I'm Sure

Those are trophy husbands...or body servants, or paid escorts.

I'd like to think I could heal enough to find a non-psychopath for a second chance at happiness...but if she's sucking up the talent like that...

[Po_d Mainiac]

26. A boy toy for sure!

[DemReadingDU]

32. looks like a bouncer at a bar, n/t

[Tansy_Gold]

34. And not a bar *I* would ever set foot in! eeeeiuw. . .. . . . n/t

[AnneD]

28. My mom is a sharp cookie and someone I listen too....

in many areas, except marriage and men.

She once said in a moment of frustration with her then current husband, "If you were to line up 9 good men and one SOB against the wall, I'd pick the SOB every time. I pick used cars better than I do men."

Needless to say I had one common law marriage (a real learning experience) and after over 13 years of reflection, one church marriage. I think the second one will stick much better.

[DemReadingDU]

19. Parrett was once married to one of the execs at National Century

1991: Lance Poulsen, Donald Ayers and Ayers' wife at the time, Rebecca Parrett, launch National Century Financial Enterprises, which offers financing to health-care providers in return for the providers' accounts receivable. The accounts receivable are packaged and sold as bonds on Wall Street.


Background and timeline of National Century
http://www.dispatch.com/live/content/special_reports/stories/2008/national_century/index.html

[Po_d Mainiac]

14. JP Morgue ....again doing the public a gr8 service

Unpaid Bills

National Century, based in Dublin, Ohio, helped hospitals and medical groups raise money by buying their unpaid insurance bills. The company then sold bonds that were supposed to be backed by those receivables. The receivables were often worthless, prosecutors said. The company filed for bankruptcy in November 2002.

National Century’s collapse hastened the bankruptcies of 275 hospitals, clinics and other health-care providers, authorities said. Victims included Pacific Investment Management Co., the world’s largest bond fund. Pimco lost $283 million and Credit Suisse Group AG lost $257 million, prosecutors said.

Former National Century Chief Executive Officer Lance Poulsen, who founded the company, received a 30-year sentence. He has appealed the sentence and conviction.

Parrett, who left her sixth husband in Carefree, was the subject of a multistate search by U.S. marshals. She was featured on the website of “America’s Most Wanted,” News Corp.’s Fox television show about fugitives.

JPMorgan Chase & Co. agreed to pay $425 million in 2006 to settle claims by National Century noteholders in Arizona. The noteholders said JPMorgan and other banks underwrote or were trustees of the notes used to defraud investors.

http://www.bloomberg.com/news/2010-10-27/ex-national-century-executive-parrett-arrested-in-mexico-prosecutors-say.html

[DemReadingDU]

24. This has been quite a story for the Ohio

Ongoing for years and years. I started following it because being in Ohio. But one wonders if other states are prosecuting their companies for similar scams.

Background and timeline of National Century
http://www.dispatch.com/live/content/special_reports/stories/2008/national_century/index.html

[Pale Blue Dot]

8. Oil rises toward $89 ahead of key US jobs report

LONDON – Oil prices rose toward $89 a barrel on Friday as traders looked to an important monthly employment report for signs the U.S. economy is strengthening.

Benchmark oil for February delivery rose 11 cents to $88.49 a barrel by late morning in Europe in electronic trading on the New York Mercantile Exchange. The contract lost $1.92 to settle at $88.38 on Thursday.

Investors will be closely watching the December nonfarm payroll figures scheduled to be released later Friday after mixed signals about the jobs market so far this week.

The Labor Department said Thursday that 409,000 people made claims for benefits for the first time, up 18,000 from the previous week. However, the ADP said Wednesday that companies likely added nearly 300,000 jobs last month, far more than the 100,000 economists predicted.

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

[Demeter]

9. Good Morning PBD and World

It snowed all day and night, but mostly melted. We are all white, though.

Wednesday was the great lawsuit mediation. Our staff and lawyers met with NCB's lawyers in Detroit.

NCB wants everything, but it's all ours and we have the bills to prove it. The mediation managed to move them from this starting point, according to staff report. But no offer has resulted yet. They are going to go back and finally, after several years, start to deal with the facts, of which we have the franchise. My expectation is that after as long a period as they can drag it out, they will come back with a totally inadequate proposal, and we will demand to go to court. If they haven't produced anything by March 1, I'm going to insist on proceeding with the lawsuit anyway.

The amounts involved...about $300,000 in fees to us, about $1.1M in real estate, are trivial. It is the principle: co-ops that manage to escape debt slavery to NCB are eating their lunch, and the lawyer we hired to produce the conversion is the only one in the country doing this work, so NCB are mad at him and taking it out on us for having the temerity to hire him and break away from their thrall. A previous board knuckled under the previous time the community wanted to convert (and were thrown out on their ears shortly thereafter).

Next week is the annual meeting of the condo association. We had hoped to have more to report, but at least we are making progress. If NCB holds out long enough, the legal fees will consume the proceeds. But the titles to the properties will be clear--at least, that is our bottom line. Can't run a property that can't be sold with clear title...

[Demeter]

10. Foreclosures May Be Undone by State Ruling on Mortgage Transfer

http://www.bloomberg.com/news/2011-01-06/foreclosures-may-be-undone-by-massachusetts-ruling-on-mortgage-transfers.html

Massachusetts’s highest court is poised to rule on whether foreclosures in the state should be undone because securitization-industry practices violate real- estate law governing how mortgages may be transferred.

The fight between homeowners and banks before the Supreme Judicial Court in Boston turns on whether a mortgage can be transferred without naming the recipient, a common securitization practice. Also at issue is whether the right to a mortgage follows the promissory note it secures when the note is sold, as the industry argues.

A victory for the homeowners may invalidate some foreclosures and force loan originators to buy back mortgages wrongly transferred into loan pools. Such a ruling may also be cited in other state courts handling litigation related to the foreclosure crisis.

“This is the first time the securitization paradigm is squarely before a high court,” said Marie McDonnell, a mortgage-fraud analyst in Orleans, Massachusetts, who wrote a friend-of-the-court brief in favor of borrowers. The state court, under its practices, is likely to rule by next month...

[Demeter]

11. The bank regulators might actually... regulate? (EMAIL)

On Monday, I submitted your names and comments to all major bank regulators. On a quiet Christmas holiday, over 17,000 of us signed the petition at StopServicerScams.com and said that we want regulators to start setting rules on the mortgage servicers who put their profits over their obligations to investors, homeowners, and communities.

The petition generated real momentum, including coverage by Dylan Ratigan on MSNBC, deep participation with a great partner Credo Mobile, and lots of the major financial blogs. And the Federal Reserve heard us.

You can watch the segment here: http://www.nakedcapitalism.com/2011/01/stopservicerscams-petition-featured-on-dylan-ratigan.html

Zach Carter of the Huffington Post just reported that the Fed has reversed its position opposing the regulation of the big bank servicers. A major FDIC official told Carter that other regulatory agencies are "moving in our direction on the issue."

Read the article here: http://www.huffingtonpost.com/2011/01/05/fed-caves-on-foreclosure-_n_805008.html

When people pay attention, regulators act. And while we haven't won yet, we're getting closer.

Onward,

Yves Smith
NakedCapitalism.com

[Demeter]

13. William Daley: Obama names Daley his new chief of staff

A DEFINITE STEP DOWN FOR DALEY, ELITE'S GUARD FOR THE WHITEHOUSE PRISON--THE CHICAGO BANKSTER/MAFIA IS FIRMLY IN CONTROL. I EXPECT JAMIE DIMON WILL BE GETTING A PLUM APPOINTMENT NEXT...WE ARE SO FREAKING DOOMED!

http://www.latimes.com/news/nationworld/nation/sc-dc-daley-chief-of-staff-20110107,0,2709916.story

[Po_d Mainiac]

18. Satan's warrier has his proxies in place

Why would he want to leave the Morgue?

[Demeter]

21. A Desire for Public Fame?

Or a state pension? Or to prevent any freedom of movement in the White House? It's called micro-managing.

[Po_d Mainiac]

42. JD has that already in the Morgue

And he doesn't have to worry about FOIA's....

His focus may be more on managing 950 Pennsylvania Ave than the 1600 block

[Demeter]

16. Health-Care Reform in Cross Hairs: Could It Survive Without Individual Mandate?

http://www.truth-out.org/health-care-reform-cross-hairs-could-it-survive-without-individual-mandate66604

...individuals to cover the insurance industry’s rising costs, because the law requires that insurers take all comers, regardless of preexisting conditions.

But Howard Dean, for one, isn’t so concerned. At a Monitor breakfast Wednesday, the former national Democratic chairman and former governor of Vermont called the mandate “unnecessary.” Mr. Dean, who is also a physician, cites his state’s experience nearly 20 years ago in getting most children under 18 insured, without a mandate.

At the federal level, Dean says, “I don’t think the mandate is unconstitutional, but i don’t care if it is or not.” Already, the law allows young adults up to age 26 to be covered on their parents’ policy, which takes care of a demographic group that was least likely to have insurance. There are other ways to incentivize people to buy insurance, he says...

HOWARD, HOWARD, HOWARD...THE NATION IS NOT VERMONT. YOU'VE LOST THE NATIONAL VISION THING. WE ALREADY PAY FOR INSURANCE (OR FOR THE LACK OF SAME) WE JUST WANT THE HEALTHCARE THAT SUPPOSEDLY COMES WITH IT...MEDICARE FOR ALL!

[Demeter]

17. A "Pledge of Resistance" to Defend Social Security (and Defund the Empire)

http://www.truth-out.org/a-pledge-resistance-defend-social-security-and-defund-empire66591

For the third time in the last 20 years, establishment voices with high-profile slots in traditional media are trying to convince the public to accept cuts to Social Security by endlessly claiming such cuts are necessary, without giving coherent evidence to justify the claim. Twice, under former presidents Clinton and George W. Bush, these voices were defeated - but they didn't give up. And now they are in striking distance of their goal: the fact that Republicans have taken over the House, combined with the fact that the president appointed a deficit reduction commission which nearly recommended a cut in Social Security benefits - and might well have done so if Representative Schakowsky hadn't worked to undermine the co-chairs' plan - means that one can't be complacent; some reports have suggested that the president may indicate support for cuts to Social Security in his State of the Union speech. Of the two principal Washington political actors who will shape the outcome - the Republican leadership and the president's team - one is a determined adversary of the public interest, the other a very uncertain ally. The most successful anti-poverty program in US history is again in grave danger.

Twenty years ago, Social Security was called the "third rail" of US politics. Touch it, you die. But it turned out that was not true. The establishment greedheads were not, in fact, afraid to try to mess with this wildly popular program. Maybe Wall Street political power is the third rail.

In these two decades, Social Security hasn't been the third rail. Instead, it's been the grey goose of folk song legend. The knife couldn't cut him and the fork couldn't stick him. Try as they might, they couldn't kill him. Can the grey goose survive the next assault?

You might think that now would be the worst time to try to cut Social Security, with 10 percent measured unemployment, with many people's private savings having been wiped out, first in the stock market collapse and then with the collapse in house prices. You might think this is a great time to remember why we have Social Security: because it's secure. Housing bubbles and stock market bubbles may inflate and burst, industries that paid living wages may be shipped to Mexico and China, but since the program was established during the Great Depression, Social Security has never failed to pay scheduled benefits.

But this reality is being turned upside down. The presence of unnecessary suffering is being used not as an argument to alleviate suffering, but as an argument for creating more unnecessary suffering...

[Demeter]

20. Figuring Out What a Dollar Is Worth by: Paul Krugman

http://www.truth-out.org/figuring-out-what-a-dollar-worth66609

There’s a lot to be said about the recent attack by conservatives on the Federal Reserve, though none of it is good.

Representative Ron Paul of Texas will head the committee that oversees the Fed when Republicans take over the House this month. That can’t be good; this is the same Mr. Paul who has in the past supported dismantling the entire Federal Reserve system.

What has really been striking, though, is conservatives’ constant focus on the evils of increasing the money supply. You hear it all the time from Republicans: the Fed is printing money! Danger! In the many comments sent to me by readers I have come across similar assertions that the true measure of inflation isn’t prices, but what happens to the money supply.

My reply: first, for those who care about, you know, being able to buy things (you can’t eat money, after all), it’s the prices of goods that actually matter. For the past three decades there has been remarkably little correspondence between the standard monetary aggregates, which measure the cumulative value of the money supply, and the inflation rate...

WHILE MR. KRUGMAN ARGUES THE DETAILS, THE BASIC FACT GOES UNASSAILED...THE FED IS NOT DOING US ANY GOOD. IT IS A WHOLLY OWNED SUBSIDIARY AND POLITICAL ARM OF THE GLOBAL BANKSTERS, AND WE CAN LIVE MUCH BETTER WITHOUT IT.

[Demeter]

22. 47.8 Million People Live in Poverty -- Far More Than Previously Thought

http://www.alternet.org/newsandviews/article/424987/47.8_million_people_live_in_poverty_--_far_more_than_previously_thought/#paragraph3

The Census Bureau has released new estimates that show the US poverty rate is far higher than previously thought, with 1 in 6 Americans living below the poverty line, reports the AP. Unlike the official poverty rate, the new numbers take into account medical bills as well as transportation costs and work expenses. The number of seniors living in poverty almost doubles under the new formula, according to the AP.

The report also found that in 2009 many families were saved from poverty by government aid programs like work stamps and tax credits. The piece quotes a Census Bureau research economist who says:

Under the new measure, we can clearly see the effects of our government policies ... When you're accounting for in-kind benefits and tax credits, you're bringing many people in extreme poverty off the very bottom...

THERE ARE WORSE FORMS OF POVERTY THAN LACK OF MONEY--LACK OF CHARACTER, LACK OF EDUCATION, LACK OF ABILITY...MONETARY POVERTY IS THE EASIEST TO FIX.

[AnneD]

57. Excellent list Demeter....

I would also add lack of compassion-one of the traits that makes us human and life tolerable. Children are not socialized like they once were. I see this in manners and the lack there of. Kids spend to much time on computers and not enough time learning to playing with each other. We are pack animals and learning to socialize and develop empathy is just as important as any other learned skill.

[Demeter]

23. White House Targets 'Insider Threats' Among Federal Workers

http://www.alternet.org/newsandviews/article/427026/white_house_targets_%27insider_threats%27_among_federal_workers/#paragraph4

The Obama administration is asking federal agencies to monitor employees with an eye toward identifying "insider threats" who might reveal "classified" information that the government is trying to keep from the American people.

The White House Office of Management and Budget this week circulated a memorandum to senior federal officials that urges them to use psychiatrists and sociologists to assess—among other "signals"— the “grumpiness” of federal employees who have access to classified documents. (After years of battering by conservatives who claim that government workers can do nothing right, and with Obama talking up a pay freeze for federal employees, what government worker isn't grumpy these days?)...


WORDS ESCAPE ME

[xchrom]

27. +1

[AnneD]

31. Beating of the slaves will continue....

until moral improves.

Freeze wages and threaten pension of CEO's and see what happens. This stuff is happening where I work and frankly, it is almost impossible to do your job on top of dealing with this type of BS. It destroys the team and sets a bad example. Fascism at it's worst.

[Demeter]

29. JP Morgan gets nod for China securities venture

JP Morgan is set to beef up its China presence, having received the long-awaited approval for its securities joint venture with a Chinese partner that will allow it to help local clients raise money in China’s equity and debt markets.

The securities joint venture with First Capital is just one of several initiatives JP Morgan is expected to soon announce in China and comes as the US bank attempts to catch up with key rivals such as UBS, Goldman Sachs and Morgan Stanley who have long operated extensively in the market.

Morgan Stanley, which last year sold its stake in CICC, also
received approval to set up a new venture with Shanghai-based brokerage China Fortune Securities.

Read more >>
http://link.ft.com/r/H60H77/ZBSCNU/XBAN6/RNWDBK/IYGKPJ/4O/t?a1=2011&a2=1&a3=6

[Demeter]

30. Morgan Stanley reshuffles top executives

James Gorman, chief executive of Morgan Stanley, continued to reshape the bank’s upper echelons with a shuffling of top executives.

The moves, discussed in a memo sent to employees on Thursday, include an expansion of duties for Colm Kelleher, the co-president of institutional securities. Mr. Kelleher will relocate from New York to London, where he will assume responsibility for Europe, the Middle East and Asia, excluding Japan.

Read more >>
http://link.ft.com/r/S4XZQQ/72144E/A5Q0X/LQA7YW/4096ZQ/AZ/t?a1=2011&a2=1&a3=6

[Demeter]

35. Citigroup seeks buyers for CitiFinancial

Citigroup is seeking buyers for CitiFinancial, the largest consumer finance company in the US, in a deal that could raise hundreds of millions of dollars and mark a milestone in the bank’s efforts to break with its troubled past

Read more >>
http://link.ft.com/r/CTBPCC/BMBY6N/OFBYP/ZB9RA1/TPMNIY/4O/t?a1=2011&a2=1&a3=7

[Roland99]

39. Well, they already have in the works selling off good-sized chunks of their retail card business

I believe companies like Home Depot and Ashley Furniture who go thru Citifinancial have been sold to GEMB? I can't remember exactly but they've been trying to divest themselves from consumer retail for a bit now.

[Demeter]

36. Blackstone set to buy office park for £480m

The US private equity group is in talks to buy one of Britain’s largest office parks for almost £500m in its biggest real estate investment for more than 18 months in the UK

Read more >>
http://link.ft.com/r/CTBPCC/BMBY6N/OFBYP/ZB9RA1/8AFVH8/4O/t?a1=2011&a2=1&a3=7

[Demeter]

37. AIG moves closer to recapitalisation

AIG, the insurance group bailed out by the US government during the financial crisis, is on track to complete a recapitalisation as soon as next week

Read more >>
http://link.ft.com/r/CTBPCC/BMBY6N/OFBYP/ZB9RA1/8AFVT3/4O/t?a1=2011&a2=1&a3=7

[xchrom]

41. kick

[Po_d Mainiac]

43. C-SPAN2

The Bernank is currently selling snake oil

OMFG "That is the beauty of having an independent central bank" the bernank :puke:

[DemReadingDU]

44. Market going down - Massachusetts Supreme Court Decision

Somebody doesn't believe in the snake oil

or


1/7/11 Some Very Bad News For The "Sweep Fraudclosure Under The Rug" Brigade
*BANKS LOSE PIVOTAL FORECLOSURE CASE IN MASSACHUSETTS HIGH COURT
*MASSACHUSETTS TOP COURT DECIDES CLOSELY WATCHED IBANEZ CASE
*MASSACHUSETTS DECISION MAY AFFECT FORECLOSURE-CRISIS CASES

Here is why this is relevant:

This was an Amicus Curiae brief (friend of the court) filed by the Massachusetts Attorney General Martha Coakley. (see attached)
http://www.zerohedge.com/article/some-very-bad-news-sweep-fraudclosure-under-rub-brigade

attachment
http://www.zerohedge.com/sites/default/files/SJC-10694_06_Amicus_Attorney_General_Brief.pdf 35 pages


edit...

1/7/11 Banks Are Tanking After Suffering A Big Loss At The Massachusetts Supreme Court

The Massachusetts Supreme Court just dealt a negative ruling to the banks in the closely-followed Ibanez case, which challenged securitization standards. It's pretty straightforward: The banks didn't have the proper parwork to foreclose, says the court. Hence, no legitimate foreclosure.

http://www.businessinsider.com/bank-of-america-ibanez-case-2011-1?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+businessinsider+(Business+Insider)&utm_content=Google+Feedfetcher


1/7/11 via Karl Denninger:
Oh oh. That's exactly what I argued at the time. If the details look like what this appears to be, the banks are totally fucked on their securitized paper. This decision is from the State Supreme Court and thus is final within the State, and makes it likely that MBS holders will sue en-masse for the sale of fraudulently-constituted securities (that is, there are no mortgages in the MBS they were sold!)

More updates as I get them.
http://market-ticker.org/akcs-www?post=176735

[mbperrin]

45. So laws actually apply to banks!!??

Good news!

Tired of lazy and greedy companies winning just because they're companies.

[Demeter]

48. Only until it gets to the Supremes

We all know how well that worked last time...

[Po_d Mainiac]

53. On what grounds would SCOTUS hear the case?

[Demeter]

55. Anything they want to

After Florida, grounds are optional. All they need is one of their corporate sponsors whining at the bar, and it's a done deal.

We are only a nation of law when the elite decide it's okay.

[Po_d Mainiac]

58. This is not the Davy v. Goliath case that the media is currently selling

This will morph into Goliath v.Goliath as the focus turns to the legality of the MDS's issued.

Their (SCOTUS) corporate sponsors are going to be lined up on both sides. This is when/where it becomes a spectator sport.

The fuck'ers (banksters) are obviously well financed. But when the fuck'ees are the likes of big insurance and PIMpCO, and also well connected, SCOTUS may decide not to take sides.

[Demeter]

59. We should live so long

[Po_d Mainiac]

46. My interpretation of his bullshit remarks

The bernank--We only bailout banks that have fucked over States and municipalities. Just because we (the banking sector) screwed the pooch, it's up to the local governments to suck it up and pay the long interest rates, cut services, and raise taxes in order to stay solvent.
YMMV

[Po_d Mainiac]

47. Probably not factored into the "Stress *choke* Tests" n/t

[Demeter]

49. I'll volunteer to supply the Stress!

:evilgrin:

[Po_d Mainiac]

50. Take a number....this lady is at the front of the line...and she's going in without a glove!

[Demeter]

51. Goldman tees up sale of Japan golf course

Visitors at golf courses throughout the country have dropped substantially, a trend slowed only by enticing players with lower prices and by visitors from other Asian countries

Read more >>
http://link.ft.com/r/CTBPCC/BMBY6N/OFBYP/ZB9RA1/KE6YZA/4O/t?a1=2011&a2=1&a3=7


ANOTHER LEMON SQUEEZED DRY, AND THE RIND CAST AWAY

[Demeter]

52. Obama asks Congress to lift debt limit

The Obama administration has requested approval from Congress for an increase in the national debt limit of the US, setting up a showdown with Republican lawmakers

Read more >>
http://link.ft.com/r/CTBPCC/4034AF/IEP5S/XTESA1/IYGKZG/82/t?a1=2011&a2=1&a3=7

:popcorn:

[Demeter]

56. Anybody Have a Secret Wish for the Weekend? Some Kind of Theme?

Anything worthy of discussion, pursuit, honor or dishonor? Preferably something I can use, have some passing knowledge of?

It's been a busy time, and inspiration (other than copious weeping) eludes me.
The floor is open for suggestions.

I sure could use an epiphany here...