STOCK MARKET WATCH, Wednesday 2 November

[ozymandius]

Wednesday November 2, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 81 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1777 DAYS
WHERE'S OSAMA BIN-LADEN? 1476 DAYS
DAYS SINCE ENRON COLLAPSE = 1438
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


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




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

AT THE CLOSING BELL ON November 1, 2005

Dow... 10,406.77 -33.30 (-0.32%)
Nasdaq... 2,114.05 -6.25 (-0.29%)
S&P 500... 1,202.76 -4.25 (-0.35%)
10-Yr Bond... 4.58% +0.02 (+0.39%)
Gold future... 460.60 -6.30 (-1.37%)






GOLD, EURO, YEN, Dollars and Loonie


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [email protected]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Ike Iossif - WEEKLY CHARTS

SUMMARY

For the second consecutive week the markets went "aggressively nowhere!" Moreover, Friday's rally appears to be short-covering rather than anything of substance, and here is the reason why. Supposedly the markets rallied sharply due to the GDP numbers, however, the markets are "forward looking." They never celebrate or mourn for something that happened in the past. The markets care for this quarter's and next quarter's GDP, neither of which appears to be in good shape. Most indicators are at the zero line, and the indices are near resistance. If they can overcome it and the internals turn positive, then it will be time to turn bullish. Until then, neutral-to- bearish, is the only logical place to "hang our hat on."

interesting charts...

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

[ozymandius]

2. Oil Prices Hold Steady Below $60 a Barrel

SINGAPORE - Crude-oil prices held steady just below $60 a barrel on Wednesday after predictions of warmer weather in the United States sparked a big drop two days earlier. But market experts said prospects for rising demand could keep prices at current levels.

Light, sweet crude for December delivery gained 5 cent to $59.90 a barrel in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract rose 9 cents to settle at $59.85 a barrel, where a day earlier it had fallen nearly $1.50 to a level about 15 percent below the Aug. 30 intraday peak of $70.85.

-cut-

The weather in the U.S. Northeast and Midwest is viewed as a gauge of demand for home-heating fuels such as natural gas and heating oil. If the weather is warmer than usual, that will ease pressure on producers in the Gulf of Mexico that are still recovering from hurricanes Katrina and Rita.

"The post-hurricane price effects really hit a nerve with consumers and it's affected market psychology as well," says Jim Burkhard at Cambridge Energy Research Associates. "But we're not likely to see the same degree of demand destruction in the next few months."

more

[Roland99]

3. Gas is nearly back below $2/gal here. $2.08 on the south side.

And the weather is quite warm this week for November.


That won't keep the oil/gas companies from keeping the prices high for heating oil. This month, the 64% rate hike went into effect for natural gas (glad I have electric heat).

I wonder how many will die or be burned in house fires from using alternative forms of heating?

[54anickel]

29. Oh no, I hadn't thought of that. You're right, I remember so many house

fires and carbon monoxide poisonings back when the utilities could cut you off for none payment. Even after the moratorium, people would try to keep their bills low by using kerosene heaters, camping stoves, and whatnot. Could be a very sad winter indeed.

[UpInArms]

14. Dec Crude @ $59.58 bbl - Dec NatGas @ $11.84 mln btus

7:57am 11/02/05 DEC HEATING OIL DOWN 1.05C AT $1.7945 A GALLON

7:58am 11/02/05 DEC NATGAS DOWN 2C AT $11.84 PER MILLION BTUS

7:56am 11/02/05 DEC CRUDE FUTURES DOWN 27C AT $59.58 A BARREL

7:57am 11/02/05 DEC UNLEADED GASOLINE FUTURES DOWN 1.46C AT $1.589/GALLON

[UpInArms]

42. Dec Crude @ $59.75 bbl - Dec NatGas @ $11.78 mln btus

10:06am 11/02/05 DEC CRUDE FALLS 10C TO $59.75/BRL AHEAD OF U.S. SUPPLY DATA

10:06am 11/02/05 DEC NATURAL GAS DOWN 8C, OR 0.7%, AT $11.78/MLN BTUS

[UpInArms]

81. Crude prices drop under $59 a barrel

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.5319468981-848493407&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Crude futures dropped under $59 a barrel in afternoon trading for the first time since late July, pressured by mild U.S. weather forecasts and government data showing a fourth-weekly climb in crude inventories. December crude fell to a low of $58.95 a barrel and was last at $59.20, down 65 cents. December heating oil was also down 4.5 cents at $1.7575 a gallon and December unleaded gas lost 3.61 cents to $1.5675 a gallon. December natural gas declined 17 cents to $11.69 per million British thermal units after touching a two-month low of $11.64.

[JNelson6563]

4. What the heck happened to the Furutres?

Mighty deep drop there on the charts. Somebody must've pulled their head out of their arse....

Here's hopin' for another closed session in the Senate today! :toast: I love the smell of Rethug Whine in the morning.

Julie

[JNelson6563]

23. I knew I shouldn't've drank all that cough medicine!

Geez, sorry I butchered the word "futures" on that. I just saw it now and can't edit. What a moran!

Julie

[54anickel]

27. Was gonna ask the same thing, why the long faces in the future pits

this morning?

Reid's actions yesterday were brilliant. Sure seemed to catch Frist off-guard, based on his over reaction. Gotta love Roberts line, "I fully intended to get on that next week" (paraphrasing). Another spit-take on my monitor when I read that line.

Haven't checked for how they're gonna try and spin that one this morning. Should be interesting.

[JNelson6563]

30. Well yesterday's Senate stuff scared the 1%ers

They were certain their boy was still safe after only Scooter was indicted, hence the good numbers (mostly) since that. But now it looks like more Team Bush lies will be exposed, the top 1% crowd is feeling a little less confident they will be able to blatantly continue raping the American people so successfully.

Julie

[AnneD]

32. Morning Marketeers,

:donut: Don't worry Julie, you spelled moran right.
I heard some numbers last week that I can't get out out of my head. It was 18 months before we lost our first 1000 troop and only 14 since we have lost the second 1000. I also hear a report that a child was used as a suicide bomber. I can hear the Bush spin-this shows how desperate they are. I think it shows how determined they are. This has been VN since the first IED exploded.
I am glad Reid called the closed session. The least Congress owes the American people is to get to the truth---were we lied to in order to get us into war. The President needs to come clean as to what was true: what did he know and when did he know it. This was a war of choice-what was the basis for it. I think, excluding Bush's base, most Americans are asking themselves these questions.
Happy hunting and watch out for the bears.

[UpInArms]

5. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 90.13 Change +0.05 (+0.06%)

Dollar Not Surprised By Another Rate Hike

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4587&Itemid=39

US Dollar
Today was probably the most boring reaction to a Fed rate decision that we have seen in the dollar in months. Within the first 15 minutes following the release, the dollar sold off 15 pips, but then quickly rallied back to the level that it was trading at prior to the interest rate announcement. The lack of a significant move was due to the fact that the market knew exactly what the Fed was going to do and the committee stuck to their well known script of continuous rate hikes with more to come. Interest rates were increased for the 12th consecutive time by a quarter of a point to 4.00 percent, full 300 basis points higher than the 45 year low that we hit in June of 2003. Aside from adjustments to the Katrina comments, the statement remained pretty much unchanged. The FOMC left in the words “accommodative” and “measured,” paving the way for more yield, yield, yield. Although the data released today was very encouraging for the dollar, the greenback sold off mildly against the dollar. Construction spending hit a record high in the month of September, which certainly provides additional ammo for housing market bulls. The ISM manufacturing sector index was reported at 59.1, which was higher than the market’s forecast but slightly weaker than the previous month. Improvements were seen in all sectors expect for production and new orders. Tomorrow should be quiet with nothing significant on the US calendar, leaving the limelight on Thursday and Friday when we get pounded with not only a number of key economic releases, but also Greenspan’s testimony before Congress.

...more...

[UpInArms]

75. today's loser: the dollar

gold's up, markets are up - dollar down

Last trade 89.74 Change -0.34 (-0.38%)

Settle 90.08 Settle Time 23:38

Open 89.89 Previous Close 90.08

High 90.20 Low 89.68

Last tick: 2005-11-02 11:44:25 ET
30-min delayed quote.

[UpInArms]

6. Today's Report:

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

Nov 2	10:30 AM	Crude Inventories	10/28	-	-	-	4414K	-

[UpInArms]

47. DOE Petroleum Inventories Report:

10:30am 11/02/05 U.S. CRUDE STKS UP 2.7 MLN BRLS LAST WK: ENERGY DEPT

10:30am 11/02/05 U.S. DISTILLATE STKS DOWN 200,000 BRLS: ENERGY DEPT

10:30am 11/02/05 U.S. GASOLINE STKS UP 1 MLN BRLS: ENERGY DEPT

[UpInArms]

53. Crude stocks fall; gasoline stocks rise: API

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.4502313657-848480341&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories fell 2.4 million barrels for the week ended Oct. 28, contrary to the Energy Department's reported 2.7 million-barrel climb. Motor gasoline inventories jumped 4 million barrels, the API said -- four times higher than the Energy Department's figure. Distillate stocks were up 2.1 million barrels, the API said, compared with the 200,000-barrel fall posted by the government data.

[UpInArms]

7. Delphi bankruptcy impact $10 bln: study

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-11-01T203130Z_01_SCH172902_RTRUKOC_0_US-AUTOS-DELPHI-IMPACT.xml

CHICAGO (Reuters) - Under even the most optimistic forecast, the economic impact from Delphi Corp.'s bankruptcy may be $10 billion based on lost earnings for U.S. and Canadian workers in 2007 alone, a Michigan-based consulting firm said.

A worst-case liquidation of Delphi, the largest U.S. auto parts supplier, would push that impact to $29.33 billion, the Anderson Economic Group said in a study released on Monday.

Anderson said its best-case forecast is based on Delphi cutting U.S. jobs by 12,500, trimming hourly wages to $14 from $27, reducing benefits in proportion to wages, and on the federal government assuming some pension funding. About 92 percent of the impact would be in the United States.

Troy, Michigan-based Delphi (DPHIQ.PK: Quote, Profile, Research) on October 8 filed the biggest bankruptcy in U.S. automotive history and said it would need to make significant cuts in U.S. operations, and slash high wage and benefit costs for union workers.

Delphi, which has about 50,600 U.S. employees and 185,000 worldwide, hopes to emerge from bankruptcy by mid 2007. International operations were not part of its filing.

<snip>

Under its most optimistic scenario, Delphi workers and retirees would suffer $2.1 billion in lost wages and benefits by mid 2007, with Delphi closing at least 10 plants in the United States and Canada in 2006, the report said.

...more...

[UpInArms]

8. GE says SEC hedge accounting probe now formal

http://today.reuters.com/investing/financeArticle.aspx?type=fundsNews2&storyID=URI:urn:newsml:reuters.com:20051102:MTFH58479_2005-11-02_07-01-25_N01163229:1

NEW YORK, Nov 2 (Reuters) - A Securities and Exchange Commission probe into General Electric Co. (GE.N: Quote, Profile, Research) and its use of hedge accounting for derivatives was upgraded to a formal investigation in August, but GE delayed disclosure until its third-quarter financial statements last week.

In January the SEC's Boston district office began an informal investigation into GE's accounting for derivatives used to hedge risks, requesting that GE and its GE Capital division voluntarily provide documents and information.

But in its quarterly financial filing on Oct. 24, GE said SEC staff in August advised the company that the commission had elevated the probe to a formal investigation, which means SEC staff are authorized to subpoena witnesses and documents.

GE officials could not be reached immediately for comment. GE, in the filing, said it believed the upgrade is "a common step in the process in such matters."

...more...

[UpInArms]

9. MBIA, AIG near settling reinsurance probes-WSJ

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=URI:urn:newsml:reuters.com:20051102:MTFH58924_2005-11-02_07-26-57_N02609946:1

NEW YORK, Nov 2 (Reuters) - MBIA Inc (MBI.N: Quote, Profile, Research) is close to settling civil probes into its accounting by federal and state authorities, agreeing to pay less than $100 million in fines and damages and accepting a review of past practices, the Wall Street Journal reported on Wednesday, citing unnamed sources.

Separately, state and U.S. authorities are also seeking to settle by month's end a wide-ranging accounting probe of American International Group (AIG.N: Quote, Profile, Research) that includes questionable reinsurance policies, the Journal reported, citing people familiar with that probe.

With regards to MBIA, attorneys for the insurer, the Securities and Exchange Commission and New York state's attorney general's office hope to make final the terms by the end of this week, the paper said. MBIA has said it is cooperating with investigators.

The tentative pacts center on allegations that MBIA, the largest U.S. insurer of municipal bonds, improperly accounted a 1998 reinsurance transaction, the paper said.

In March, MBIA restated six years of financial statements to correct its accounting for the reinsurance deal. Under the settlements, the authorities would install at MBIA's expense an independent consultant to review its past actions to ensure regulators they haven't missed anything in their probes.

...more...

[UpInArms]

15. Time Inc. gets subpoena in federal circulation probe

http://www.marketwatch.com/news/story.asp?guid=%7B07C7CFEB%2D6DED%2D481E%2D84BC%2DA823522D532B%7D&siteid=mktw

NEW YORK (MarketWatch) -- Time Warner on Wednesday said it received a grand-jury subpoena from the U.S. Attorney's Office in connection with an investigation of magazine circulation-related practices.

"Time Inc. is responding to the subpoena and intends to cooperate with the investigation," a filing with regulators said.

"Time Inc. has also informed its advertisers that it is reviewing and discussing with the Audit Bureau of Circulations its reporting of sponsored sales subscriptions," the filing said.

Shares of Time Warner (TWX) closed at $17.57 on Tuesday.

...more...

[UpInArms]

48. GE hedge probe turns serious

http://www.marketwatch.com/news/story.asp?guid=%7B93399115%2DAFF7%2D41CD%2D9341%2DC1AF5E562A1F%7D&siteid=mktw

NEW YORK (MarketWatch) - General Electric Co., in a regulatory filing, said a federal probe into its hedge accounting has taken a more serious turn, though it said the development was a "common" step.

The upgrade to a formal Securities and Exchange Commission probe, which GE says happened in August, gives the commission staff subpoena power.

<snip>

Fairfield, Conn.-based GE said it would restate income for 2001 through 2004 after a review by its auditors KPMG discovered that transactions "used to protect its financial services businesses from changes in interest and currency exchange rates do not technically comply" with a rule for accounting for derivatives and hedges. The change lifted GE's earnings by $381 million through the first quarter of 2005.

GE said it would amend its annual filing for the years 2002 through 2004, as well as certain financial information for the year 2001 and each quarter of 2003 and 2004.

...more...

restatements from 2001 to 2004!

:wow:

[UpInArms]

63. Cigna falls on outlook, subpoena disclosure

http://www.marketwatch.com/news/story.asp?guid=%7B0FB5A5EC%2D3E53%2D4E6D%2D9CF8%2D0303798DCE6B%7D&siteid=mktw

LOS ANGELES (MarketWatch) - A 2006 outlook that fell far below analyst views overwhelmed positive third-quarter earnings results and cast Cigna shares down by more than 10% at one point Wednesday.

<snip>

"While on the face of it, the Cigna quarter was a huge earnings beat, under the reported numbers lies a web of cross currents, some of which are not as favorable as the reported results would suggest," Morgan Stanley analyst Christine Arnold wrote in her note.

In a filing with the Securities and Exchange Commission Wednesday, Cigna said that it has received a subpoena from the agency seeking information about broker Universal Life Resources. Cigna said it is provided information to the U.S. Attorney's office for the Southern District of California.

...more...

[UpInArms]

10. Knight Ridder's top investor urges sale of company

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-01T232234Z_01_N01145408_RTRIDST_0_MEDIA-KNIGHTRIDDER.XML

NEW YORK, Nov 1 (Reuters) - Knight Ridder Inc.'s (KRI.N: Quote, Profile, Research) largest institutional investor on Tuesday urged the media company to put itself up for sale, saying the publisher of the Philadelphia Inquirer and San Jose Mercury News has failed to provide enough value for shareholders.

"In light of limited revenue growth across the newspaper industry and the difficulties the company has faced in realizing the fair value ... we believe the board should now aggressively pursue the competitive sale of the company," Private Capital Management Inc. said in a regulatory filing.

Knight Ridder could not be immediately reached for comment.

Private Capital, a Florida investment firm owned by Legg Mason Inc. (LM.N: Quote, Profile, Research), holds 18.9 percent of Knight Ridder, according to filings with the U.S. Securities and Exchange Commission. The firm said it has been an investor in the San Jose, California-based publisher since 2000.

"A significant and persistent disparity exists between the fair value of the company's assets and the trading range of its shares," Private Capital said in the filing.

...more...

[54anickel]

50. blm started an interesting discussion on KR

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=5234721

[UpInArms]

11. Senators seek $250,000 cap on US farm subsidy pay

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-01T232707Z_01_N01148402_RTRIDST_0_FOOD-CONGRESS-CUTS.XML

WASHINGTON, Nov 1 (Reuters) - The Senate should limit
farmers to $250,000 a year in crop subsidies, a 30 percent cut
that would stop big growers from gobbling up most of the money,
the Senate Finance Committee chairman said on Tuesday.

Republican Charles Grassley's proposal could be debated as
early as Wednesday, when the full Senate takes up a federal
budget bill.

Payment limits are one of the most divisive issues in
agriculture. It pits small farmers against big growers, with
Southern cotton and rice farmers likely to be hurt most by a
lower cap on subsidies because of how their businesses are
structured.

Grassley's plan to reduce the current $360,000 cap to a
$250,000 limit would eliminate loopholes allowing big operators
to collect millions of dollars a year. The White House also
backed a $250,000 limit.

Some 72 percent of U.S. farm subsidies go to 10 percent of
farmers, the Environmental Working Group said in a new report
examining 10 years of subsidy payments. The environmental group
wants more money for land stewardship work.

...more...

[UpInArms]

12. Fitch cuts Saks' debt ratings deeper into junk

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-01T205000Z_01_WNA1859_RTRIDST_0_RETAIL-SAKS-FITCH-URGENT.XML

NEW YORK, Nov 1 (Reuters) - Fitch Ratings cut Saks Inc.'s (SKS.N: Quote, Profile, Research) senior unsecured debt rating on Tuesday, citing the store's agreement to sell its Northern Department Stores Group.

The transaction is expected to close in the first quarter of 2006. As a result of the sale, Saks will likely have limited additional debt reduction and lower operating cash flow, Fitch said.

Fitch cut Saks' senior unsecured notes to "B," the fifth-highest junk level, from "B-plus." A rating downgrade can increase a company's borrowing costs.

The outlook is negative, indicating the rating could be cut again.

[UpInArms]

13. US home loan requests fall as rates hit 16-mo highs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T121918Z_01_N02638198_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Nov 2 (Reuters) - U.S. mortgage applications fell for a second consecutive week as interest rates on home loans climbed to 16-month highs, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its index of mortgage application volume for the week ended Oct. 28 declined 4.8 percent to 646.7, its lowest point since the start of April when the index was at 644.5. The index is down from the previous week's 679.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.21 percent last week, up 0.15 of a percentage point from the previous week's 6.06 percent.

It was the highest rate on the 30-year fixed-rate mortgage, the industry benchmark, since June 2004 when the rate hit 6.34 percent.

It is also higher than where it stood a year ago when the rate was 5.65 percent. The fixed 30-year mortgage rate has been climbing on and off since hitting a 2005 low of 5.47 percent in late June.

...more...

[UpInArms]

16. Delta seeks to throw out pilots' contract

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T131112Z_01_N02572530_RTRIDST_0_AIRLINES-DELTA.XML

NEW YORK, Nov 2 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) is seeking bankruptcy court approval to throw out its pilots' labor contract, the No. 3 U.S. airline said in court documents filed on Tuesday, in the latest blow to U.S. airline employees.

Delta said the move was needed to force the 6,000 pilots, its only unionized employees, to accept salary and benefit cuts that would reduce the airline's annual costs by $325 million.

Officials from Delta's local unit of the Air Line Pilots Association were not immediately available for comment.

The Atlanta-based airline is the latest beleaguered U.S. carrier to resort to bankruptcy court to get labor savings that proved impossible to win at the bargaining table.

The move would be a new blow to airline employees, many of whom have had to lower their standards of living as airlines squeezed their contracts, citing pressure from soaring fuel costs and competition from low cost carriers.

...more...

[UpInArms]

17. Refco Slams Rogers Over $362M Claim

http://www.nypost.com/business/56685.htm

(free registration or try www.bugmenot.com)

November 2, 2005 -- Bankrupt trading firm Refco Inc. struck back at hedge fund pioneer Jim Rogers yesterday, claiming two funds he partially controls approved the transfer of $362 million in assets to a unit now under Chapter 11 protection.

The Rogers funds "authorized the transfer of certain assets into their new accounts at Refco CM and did so with their eyes wide open," Refco said in bankruptcy court filing late Monday.

The crumbled commodities firm said the Rogers Funds are "acting deceitfully by making knowingly false allegations in this litigation and seek to be unjustly enriched by trying to deprive Refco CM's estate of substantial assets that properly should be available for the benefit of all Refco CM creditors."

Rogers' firm, Beeland Management Co., sued Refco last week claiming the futures broker fraudulently cut off access to $340 million in government securities and $22 million in cash by improperly moving those assets. Although he is semi-retired, Rogers owns a large stake in Beeland, which manages the funds that filed suit against Refco, the Rogers Raw Materials Fund and the Rogers International Commodities Fund.

Without the assets, the funds can't meet potential margin calls on other securities, and investors in the funds may not be able to cash out at the end of the month, the suit said.

...more...

[UpInArms]

18. Liquidators named in Refco controversy

http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20051101/BUSINESS/111010169

Officials from the Bermuda and London office of accounting firm KPMG have been named joint provisional liquidators of two unregulated Bermuda units owned by troubled commodities broker Refco Inc.

In a legal announcement on Friday, Michael W. Morrison, of KPMG Bermuda, and Richard Heis of KPMG LLP UK, were jointly appointed as the provisional liquidators for two of Refco’s five Bermuda units.
The appointments follow related applications being filed in October with the Bermuda Supreme Court. The applications, for Refco Capital Markets, Ltd. and Refco Global Finance Ltd., were made in tandem with Refco filing Chapter 11 bankruptcy protection proceedings in the US for 24 of its unregulated units.

Refco’s troubles followed the discovery on October 10 that former chief executive Phillip R. Bennett, who has now been fired by the company, hid a $430 million debt owed to Refco by a company he controlled. The monies were repaid the day of the discovery but Refco’s share price plummeted on news of the undisclosed, related-party transaction. The company has since been delisted from the New York Stock Exchange, and is trading on an over-the-counter exchange.
Bennett, who was arrested by US authorities in the days after his dismissal, is alleged to have broken securities laws by not disclosing that his company, Refco Group Holdings Inc., was the debtor, not an unrelated third party. He was due to appear in court yesterday as federal prosecutors pushed for a grand jury indictment. The court hearing has now been pushed to November 10, according to a Reuters report.

Refco’s main unregulated unit is based in Bermuda. Refco Capital Markets, Ltd., was shut down on October 13 because of a lack of liquidity. This unit provided prime-brokerage services to hedge funds.

...more...

[UpInArms]

19. E-mails draw confusing picture of Refco-Rogers deal

http://www.usatoday.com/money/industries/brokerage/2005-11-01-refco-usat_x.htm

A day after Refco said its CEO had stepped down amid financial fraud allegations, the firm's representatives exchanged a series of contradictory communications with one of their biggest customers, the Chicago-based Rogers funds, over the fate of $362 million Rogers had invested with the futures trader.

What Refco and Rogers said Oct. 11 — and what they meant, amid their conflicting interpretations — are at the center of a growing flap between the firm and the funds in bankruptcy court.

Rogers money manager Walter "Tom" Price says Refco illegally diverted investments the funds had at Refco's regulated futures-trading unit, Refco LLC, to an unregulated offshore entity, Refco Capital Markets, and that he was unable by phone or e-mail to have the investments transferred back, according the fund group's legal complaint.

<snip>

On Oct. 11 as the Rogers group asked top Refco officials for assurances by e-mail and phone that all of the funds' money would be shifted back to regulated accounts, according to e-mail records contained in the fund group's complaint, Refco personnel simultaneously arranged a $22.9 million wire transfer of Rogers funds from the regulated unit into the unregulated unit, according to Refco's own bankruptcy filing.

...more...

[UpInArms]

20. NYSE fines Lehman Bros. $500,000 over trading supervision

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.364651956-848466038&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The New York Stock Exchange fined Lehman Brothers (LEH) $500,000 for breaking trading rules, the exchange said Wednesday. On Dec. 11, 2002, Lehman brokers executed trades that were "disruptive and caused excess market volatility," the NYSE said, without naming the stock traded. Lehman realized a profit from the improper trading, the exchange said. The firm neither admitted nor denied the charges.

8:45am 11/02/05 LEHMAN VIOLATIONS STEM FROM CLOSING TRADES

8:45am 11/02/05 NYSE FINES LEHMAN $500,000 FOR TRADING VIOLATIONS

[UpInArms]

21. Printing Press Report: 30-year bonds return Feb 9

9:00am 11/02/05 TREASURY TO MOVE 5-YEAR AUCTIONS TO END-OF-MONTH IN 2006

9:00am 11/02/05 U.S. TO REINTRODUCE 30-YEAR BOND AT FEB. 9 AUCTION

9:00am 11/02/05 U.S. TO RAISE $5.3 BILLION IN NEW CASH

9:00am 11/02/05 U.S. TO AUCTION $18B IN 3-YRS, $13B IN 5-YRS, $13B IN 10YRS

9:00am 11/02/05 U.S. TO AUCTION $44 BILLION IN NOTES NEXT WEEK

[UpInArms]

22. U.S. to auction $44 billion in next week's refunding

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.3754240278-848467793&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The U.S. government will auction $44 billion in notes at next week's quarterly refunding auction to raise $5.3 billion in new cash and refund $38.7 billion in maturing notes, the Treasury Department said Wednesday. The government will auction $18 billion in 3-year notes on Tuesday, $13 billion in 5-year notes on Wednesday and $13 billion in 10-year notes on Thursday. The auction amounts were in line with estimates by Wall Street firms. The 30-year bond will be reintroduced at a Feb. 9 auction. Once the 30-year bond is brought back, the Treasury will move the monthly 5-year auction to the end of the month.

[UpInArms]

24. ??? "special emergency lending facility" ????

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T140410Z_01_TRT000070_RTRIDST_0_ECONOMY-TREASURY-REFUNDING-URGENT.XML

excerpt:

Treasury said it is continuing to study whether to introduce a special emergency lending facility for periods of market stress.

Market participants told Treasury officials the new facility would be a good idea if it limits the potential for a catastrophic occurence like a destabilizing credit event, and if it lowers the cost of borrowing.

But they also warned against inadvertently disrupting markets by adding regulatory burdens.

...more at link...

[54anickel]

37. Me thinks they're preparing for something big to fall down again.

But what could it be this time? Another LTCM-like failure in the hedge-fund industry - sh*t they're bigger than they've ever been! Maybe the GSE's - sure they talk smart saying they aren't too big to fail - but would they really let that happen after allowing them to constantly restate their restatement of the previous restatement?

Something's in the wind....

[UpInArms]

61. from a "conservative" rag

http://www.nationalreview.com/nrof_bartlett/bartlett200511020855.asp

excerpt:

I think it is inevitable that some economic event will soon put deficit reduction at the top of the to-do list. Ted Truman, a former top Federal Reserve official, was recently quoted as saying, “Over the next 18 months, it’s a reasonable bet, especially with interest rates going up, there will be some accidents in financial markets.”

I agree. We have already seen the collapse of Refco, a big stockbroker, and I fear that the end of the housing bubble or a bad bet by some giant hedge fund could trigger a massive market correction larger than the stock market crash of 1987. When that day comes, President Bush is going to need people around him who know how to handle a financial crisis and how to get the budget under control, because deficit reduction will be the prime order of the day.

[54anickel]

67. In the mean time, until that happens, the Idgit continues his spending

spree sending OUR money to his pals and cronies.

This part is rich, then again consider the source. :eyes:

I think Bush should also seriously consider upgrading the Treasury Department by appointing Alan Greenspan as Treasury secretary when his term as Fed chairman ends in January. From what I know about Greenspan, I don’t think he is ready to retire and write his memoirs, and would take this job if it were offered. After all, we remember former Treasury secretaries like Alexander Hamilton, but how many people today can even name Greenspan’s predecessor at the Fed? (Answer: Paul Volcker.)

I for one have confidence that Greenspan would know what to do in a financial crisis and I would sleep better at night if I knew that he was Treasury secretary. His unquestioned standing and respect among economists and those on Wall Street would also raise the stature of the Treasury Department, which has been badly downgraded by President Bush, to his own detriment in my opinion. I believe many missteps on things like tax policy and Social Security reform could have been avoided if Bush had properly utilized the Treasury Department.

[UpInArms]

76. ah, but that last 'graph was choice, too!

I believe we are in a calm before a storm and that things are going to get very dicey very soon. This may be the last chance President Bush has to upgrade his economic team before a financial Katrina hits.

Will it be called a financial tsunami?

[54anickel]

78. Heh-heh, yeah I was going to include that one, but it was a bit off

the subject of my post. It's probably the best part of the article, again (especially) considering the source. I'm sure in his mind it is all somehow the Clenis's fault though.

Glad you followed through on that one! :hi:

[AnneD]

85. Ok 54, UIA

the economic gossip is too juicy. Believe it or not, I knew Volker was Fed chief-is that sick or what. I don't like Greenspan as Fed chief but do think he brings something more to the job than Blow Jo...er ah I mean Snow Job. His credentials etc would go a long way.
But then I remember Colin Powell. I bet he gave Chimpie good advice too (and I know he argued against war in the cabinet meetings), and yet he disgraced his honour and integrity going before the UN (they used him for that very reason). Does Greenspan have the guts to stand up to Shrub and tell him what he doesn't want to hear. Will he finally stand up and do the right things and make the hard choices. How many more of Daddy's friends are going to come in and straighten up Junior's mess (Skowcroft has started making noise).
Frankly, I have known and observed the Bushes since the late 70's. My path has passed close to those that had close contact with them (esp W) and frankly, he has never had the spine or intestinal fortitude to make the tough decisions if means he has to stand up and stand alone. He has never grown up and is still the spoiled, privileged, mean spirited, rich boy.
The war has blown up in his face and you have observed his actions. When the economy blows up in his face-watch him. My first guess is he will wimp out. The wild card is his staff. Are they so enamoured of the power that they will try to retain and solidify power. I can honestly see them 'arranging' a terrorist incident to divert attention from the ecomomy, blaim Syria or Iran and fully inforce the Patriot Act. This is about as ugly a scenerio that I can think of, but then again-some of the things they have already done have blindsided me. I continue to be amazed at what the American public tolerates. Maybe a sorry economy will wake em up.

[UpInArms]

38. more info:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T145345Z_01_N02199922_RTRIDST_0_ECONOMY-TREASURY-REFUNDING-UPDATE-1.XML

excerpt:

In meetings with bond market executives earlier in the week, Treasury officials cautioned of the potential for volatility in government borrowing needs in the next few fiscal years, with needs likely to rise in fiscal 2006.

Increased spending for disaster relief after hurricanes Katrina and Rita may create additional volatility for bill and coupon issuance in fiscal 2006, the Treasury Department said, according to minutes released on Wednesday.

Treasury issuance of state and local government securities (SLGS) is expected to decline in 2006, contributing to greater borrowing needs. SLGS issuance was unusually high in fiscal 2005, which ended Sept. 30, because local governments had been eager to lock in low interest rates and refinance existing debt, Treasury Debt Management Director Jeff Huther said.

Treasury said it will sell $18 billion of three-year notes on Tuesday, Nov. 8; $13 billion of five-year notes on Wednesday, Nov. 9, and $13 billion of 10-year notes on Thursday, Nov. 10, for a total of $44 billion in securities.

The auction will refund $38.72 billion of publicly held securities and government account holdings maturing or called on Nov. 15, and raise about $5.28 billion in new cash.

...more...

[UpInArms]

28. Treasurys lower; no reaction to as-expected auction details

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.3909137268-848470439&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The Treasury market remained on the defensive a day after the Federal Reserve delivered on a 12th interest-rate hike and left the door open to more increases. The bond market showed little reaction to an announced auction package for next week that carried no surprises. The U.S. government will auction $18 billion in 3-year notes on Tuesday, $13 billion in 5-year notes on Wednesday and $13 billion in 10-year notes on Thursday. The 10-year note was last 8/32 lower at 97 8/32, shaving around $2.50 per each $1,000 of securities. It was yielding ($TNX) 4.6% vs. 4.56% Tuesday.

[UpInArms]

33. U.S. Treasuries fall as mortgage selling resumes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T144317Z_01_N02332616_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Nov 2 (Reuters) - U.S. Treasury debt prices fell on Wednesday on a resumption of last week's mortgage-related selling, pushing benchmark yields back up to seven-month highs.

Data showing mortgage applications falling as mortgage rates have risen dovetailed with the day's action in Treasuries and made clear that the two-month trend of rising yields is still very much alive.

Rates have been jerked higher in the last few months as the Federal Reserve has made clear it plans to head off inflationary pressures, particularly related to energy, by raising short-term interest rates.

The Fed added to that emphasis on Tuesday when it raised rates by a quarter-point for the 12th straight time since June 2004 and signaled that with energy inflation still an issue, more "measured" rate increases are probably ahead.

Mortgage players address the challenges of higher rates by selling Treasuries, because it is the easiest way to lighten their portfolios of longer-lasting fixed-income securities.

"The pressure is definitely coming from mortgages," said one trader at a primary U.S. dealer.

...more...

[UpInArms]

34. Fed adds reserves via overnight system RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T143412Z_01_N02202436_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Nov 2 (Reuters) - The Federal Reserve said on Wednesday it was adding temporary reserves to the U.S. banking system through overnight system repurchase agreements.

The benchmark federal funds rate last traded at 4.000 percent, at the Fed's target for the overnight lending rate.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

46. Treasurys slump, sending 10-year yield back above 4.6%

http://www.marketwatch.com/news/story.asp?guid=%7B4F8B8286%2D90BB%2D4682%2D9EB1%2DB0153E1FC451%7D&siteid=mktw

CHICAGO (MarketWatch) -- The Treasury market remained on the defensive a day after the Federal Reserve delivered on a 12th interest-rate hike and left the door open to more increases as it works to snuff out broad-based inflation.

The bond market showed little reaction to an announced auction package for next week that carried few surprises and matched the size of last quarter's offering. Still, notes and bonds already in circulation are likely to feel the pressure of new competing notes coming into the market, lowering prices and lifting yields.

At last check, the benchmark 10-year government note was 8/32 lower at 97 8/32, losing around $2.50 per each $1,000 of securities at face value.

Price declines pushed up its yield ($TNX) to 4.6% compared to 4.56% Tuesday.

The yield, a reference for mortgage and corporate borrowing, was nearing the six-month highs it hit last week. The year's closing high, of 4.64% set on March 28, was also within striking distance.

...more...

[UpInArms]

83. U.S. Treasuries dip as market awaits Washed-Up Has-Been Partisan Hack

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-11-02T174836Z_01_N02448702_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, Nov 2 (Reuters) - U.S. Treasury debt prices were slightly lower on Wednesday as mortgage-related selling early in the day gave way to position-squaring ahead of events such as Federal Reserve Chairman Alan Greenspan's final congressional testimony on Thursday.

The market was also beginning to focus on Friday's non-farm payrolls report and next week's three-legged quarterly funding, in which the Treasury Department will auction $44 billion in new government debt.

"We're just bouncing along with prices lower and yields higher," said Josh Stiles, senior bond strategist at IDEAglobal in New York, noting that recently, hedge funds have stopped buying in an effort to squeeze sellers out of positions.

"We'll have to see what Greenspan says, see how strong payrolls are and how the new supply goes down," Stiles added.

Earlier, data showing mortgage applications falling amid rising mortgage rates dovetailed with the downside action in Treasuries and made clear that the two-month trend of rising yields is still very much alive.

...more...

[UpInArms]

25. Fed's Moskow says higher education faces threats

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T140016Z_01_NYH000064_RTRIDST_0_ECONOMY-FED-MOSKOW.XML

CHICAGO, Nov 2 (Reuters) - An evolving economy means education, productivity and economic growth are more closely linked than ever at a time U.S. universities are under mounting financial pressures, Chicago Federal Reserve Bank President Michael Moskow said on Wednesday.

The belief that education is largely a public good that warrants government support "has eroded over time," Moskow said in remarks prepared for delivery to a Chicago Fed conference on the future of higher education.

Moskow did not discuss the current economy or monetary policy in his remarks.

"For universities to flourish, they need to revisit this 'social compact' and make a clearer case for the public good content of education," he said.

Colleges and universities could help their cause by being more transparent in their operations, Moskow said.

...more...

[AnneD]

88. I heard from Connie Mack on NBR

that the new tax code would do away with the tax deductions for R&D. If that isn't a death knell, I don't know what is.
All of my friends that have kids about ready to go to college are frantic trying to scrape up funds for their kids. The Pell grant amounts have not changed since I was in college 30 yrs ago. Kids are taking out loans but that is interferring with their field of study. What is the financial sense of borrowing to get a Master's in social work (and you need that just to get in the door) when the job doesn't pay enough to allow you to pay your loan back. Now I can attest that the world is a better place for having social workers-but they cannot foot the total education bill out of their pocket if their potential income cannot justify the expense. I have never gone back to get my bachlor's or masters in Nursing. I cannot justify the $25k+ if I only get $0.25-$0.50 per hour more (I told you they are cheap).

[UpInArms]

95. Treasury's Quarles on GSEs, Group Life and Hedge Funds

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.5968928125-848503367&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Reforming government-sponsored enterprises Fannie Mae (FNM) and Freddie Mac (FRE) is an achieveable goal, Treasury Undersecretary for Domestic Finance Randal Quarles said Wednesday. Quarles also said in a meeting with reporters he doesn't see a reason for group life insurance to be included in a terrorism risk insurance program, and that other lines would have to be removed if group life were included. The terrorism risk insurance act expires at the end of this year. Quarles also added he doesn't believe thinking about regulating hedge funds has been comprehensive enough, though he didn't indicate new rules are forthcoming.

2:09pm 11/02/05 QUARLES: HEDGE FUND REGULATION IDEAS NOT THOUGHT OUT ENOUGH

2:09pm 11/02/05 QUARLES: GROUP LIFE SHOULDN'T BE PART OF TERROR INSURANCE

2:09pm 11/02/05 TREASURY'S QUARLES SAYS GSE REFORMS ACHIEVEABLE

[ozymandius]

pre-open blather

9:00AM: S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -4.0. Futures trade has held steady and continues to suggest a slightly lower open for the equity market. Early weakness in the Treasury market is perhaps affecting stock traders' sentiment. Following the latest rate hike and policy announcement, the yield on the benchmark 10-year note has reached levels last seen in March. The 10-year (-11/32) presently yields 4.61%, while the 30-year (-17/32) offers 4.79%. Separately, the session's economic calendar features no items today, but at 10:30 ET the EIA will report last week's energy inventory data.

8:34AM: S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -5.0. The stock market is set to start lower. Traders are perhaps sifting through some disappointing guidance that accompanied several of last night's upside Q3 reports. Among some of the companies to beat estimates but issue downside outlooks are Electronic Arts (ERTS), iPass (IPAS), Papa John's (PZZA), and Tessera Technologies (TSRA).

7:59AM: S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: -3.0. Amid a mixed bag of third quarter earnings reports, the cash market is headed towards a flattish open this morning. On the upside, reports from the likes of Time Warner (TWX), Cigna (CI), EDS (EDS), Duke Energy (DUK), and Electronic Arts (ERTS) exceeded respective estimates, while Sun Microsystems (SUNW), ATP Oil & Gas (ATPG), and Dean Foods (DF) fell short of them.

[UpInArms]

26. Cost-U-Less October same-store sales off 4.1%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.382605625-848469059&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Cost-U-Less Inc. (CULS) Wednesday said same-store sales fell 4.1% in October. Total sales for the four weeks ended Oct. 23 slid 5.6% to $15.9 million from $16.9 million in the same period a year earlier. The Bellevue, Wash., off-price retailer attributed the sales declines to the timing of its annual Anniversary sale. The stock closed Tuesday at $6.02, up 3 cents.

I'm just certain it couldn't be a weakening consumer :eyes:

[UpInArms]

64. Symantec tumbles on weak outlook

http://www.marketwatch.com/news/story.asp?guid=%7B94D241E6%2DDE4E%2D49C5%2D9CB7%2DA7BC24DDA367%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Symantec Corp. tumbled as much as 20% Wednesday after it issued a weaker sales outlook for its security software products and surprised investors with another resignation in the senior management ranks.

<snip>

For the December ending quarter, Cupertino, Calif.-based Symantec estimated sales at $1.263 billion, less than the $1.345 billion average forecast of analysts surveyed by Thomson First Call. The forecast excludes special charges stemming from recent acquisitions and other expenses.

The outlook comes amid the resignation of its chief financial officer Greg Myers, who helped orchestrate Symantec's $10.5 billion purchase of Veritas Software, one of the biggest deals in software history.

<snip>

"Frankly, we question the timing of this announcement," Susquehanna Financial analyst Gregg Moskowitz wrote in a research note. "This represents something of a 'brain drain' for Symantec with two-thirds of what has been an immensely successful triumvirate no longer with the company."

...more...

[UpInArms]

65. RenaissanceRe falls as founder resigns

http://www.marketwatch.com/news/story.asp?guid=%7B722559CB%2DA143%2D4C8A%2D8180%2D545BBADE707B%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - RenaissanceRe Holdings shares fell as much as 10% on Wednesday after Chairman, Chief Executive and founder James Stanard resigned in the midst of a Securities and Exchange Commission investigation into the reinsurer.

RenaissanceRe also reported third-quarter results late Tuesday that were hit hard by hurricane losses. That sparked concern among some analysts that the company may have to sell shares or other securities to raise new capital.

RenaissanceRe shares fell as low as $34.50 in morning trading, 10% below their Tuesday close. The stock recently changed hands at $36.40, down 5%. More than five million shares traded before midday, almost five times the daily average.

<snip>

"Overhangs faced by RenaissanceRe, we believe, include raising capital after substantial third-quarter catastrophe losses, resolving regulatory issues, and working with the rating agencies," Gelb added.

...more...

[54anickel]

31. There's no money to pay girls to take their clothes off! (Mogambo)

http://www.321gold.com/editorials/daughty/daughty110205.html

- The Fed actually drained a little credit last week, taking it down $3 billion. Why? I figure they were all too busy partying too much and drinking too much and pinching each other on the butt too much. Probably giggling too much while they do it, too. Now that Ben "Bird Brain" Bernanke has been chosen to take over the Federal Reserve, they know that when the guy running the show actually WANTS inflation, as he manifestly does, then it is time to celebrate with a big, blow-out toga party, using some petty cash to get some kegs of beer and some of whatever in the hell they are smoking that makes them think their stupid little New Age theories could possibly work in the real world.

snip past the Greenspin digs>

And they are obviously NOT earning more money, and in fact the lack of money is what is prompting Wal-Mart to suggest that Congress raise the minimum wage. Wal-Mart CEO Lee Scott said that, "We can see first-hand at Wal-Mart how many of our customers are struggling to get by. Our customers simply don't have the money to buy basic necessities between pay checks."

Perhaps this is what prompted a witty British guy named Jonathan P. to write that while inflation may be "tame" to the boneheads in government, for us out here in the real world we have "Necessinflation" which he defines as "Everything that is 'necessary' to life is increasing in price. Shelter, Energy, Food, Utilities, Medical." Hahaha! Exactly!

snip>

This purported lack of money to spend is apparently borne out by the report by the Commerce Department that said spending, adjusted for inflation, fell 0.4 percent last month. And not only do we not have any money to spend, but we are not saving any money either, as the savings rate was less than zero- less than zero! -for the fourth straight month in a freaking row! And it has been falling for a decade, and hovering around this low level for years!

And it will get even worse than that, since mass layoffs hit their highest in four years....

more...

[54anickel]

41. Holy sh*t!!! Bush has surpassed Johnson in spending!

snip>

- We now know that the Bush administration is, officially, the most irresponsibly profligate of any administration in living memory, as the Cato Institute reports that "The increase in discretionary spending - that is, all non- entitlement programs - in Bush's first term was 48.5% in nominal terms. That's more than twice as large as the increase in discretionary spending during Clinton's entire two terms (21.6%), and just higher than Lyndon Johnson's entire discretionary spending spree (48.3%)."

Bush has now allowed the increase in federal spending to exceed even that of Lyndon Johnson, the previous record-holder, as the most irresponsible spending dolt. But it was not just Bush, as it was the Congress that proposed, and the White House merely duly authorized, the jillions and gazillions of dollars in spending (and deficit-spending) in the past few years. And that is just the on-budget stuff!...

[UpInArms]

43. And that is just the on-budget stuff!

that would not include any of the "war" spending - all off-budget - more than $267 Billion and growing daily.

[AnneD]

89. Spot on UIA

they must think they are in private bidness cause they have 2 sets of books.

[UpInArms]

35. Dec Gold @ $462.50 oz

9:50am 11/02/05 DEC GOLD UP $1.90 AT $462.50/OZ AFTER THREE-SESSION LOSS

[UpInArms]

68. Dec Gold @ $463.90 oz

11:52am 11/02/05 DEC GOLD CLIMBS $3.30 TO $463.90/OZ IN NY AFTER $465.10 HIGH

[UpInArms]

87. Dec Gold closes @ $464.60 oz

1:41pm 11/02/05 DEC GOLD CLOSES HIGHER FOR FIRST TIME IN FOUR SESSIONS

1:41pm 11/02/05 DEC GOLD CLOSES AT $464.60/OZ, UP $4, OR 0.9%

[UpInArms]

36. 9:55 EST numbers and blather

Dow 10,411.33 +4.56 (+0.04%)
Nasdaq 2,123.82 +9.77 (+0.46%)
S&P 500 1,205.72 +2.96 (+0.25%)
10-Yr Bond 45.91 +0.14 (+0.31%)

NYSE Volume 245,604,000
Nasdaq Volume 286,827,000

9:45AM: As anticipated, the stock market opened modestly lower, but the Nasdaq has since bounced into positive territory. A notable influence on the Composite is Electronic Arts (ERTS) - which extends an early 5.3% gain after exceeding analysts' Q3 estimates yesterday evening. Challenging ERTS's effect, however, is Symantec (SYMC); shares have plummeted nearly 18% after the company beat Q3 expectations but issued downside FY05 guidance and upon seven subsequent downgrades. Overall, though, there are no substantial market movers amid the plethora of reporters between the prior session's close and this morning's open. Time Warner (TWX) is perhaps the most notable, and beat estimates by $0.02; Cigna (CI) and EDS (EDS) also checked in ahead of consensus. A heavy weigh upon early sentiment is weakness within the Treasury market; the 10-year note's (-08/32) 4.60% yield has reached levels last seen in March.

[UpInArms]

44. 10:16 EST numbers and blather

Dow 10,412.77 +6.00 (+0.06%)
Nasdaq 2,122.05 +8.00 (+0.38%)
S&P 500 1,205.47 +2.71 (+0.23%)
10-Yr Bond 4.602 +0.25 (+0.55%)

NYSE Volume 408,809,000
Nasdaq Volume 434,455,000

10:00AM: Clearing the flat line, the Dow and S&P join the Nasdaq on positive ground. Currently, each of the ten economic sectors trend higher, with Consumer Discretionary (+0.8%) emerging as the early leader. Spearheading the sector's advance are Time Warner (TWX 28.90 +0.80) and Comcast (CMCSA 17.98 +0.41). Behind the rise is the Wall Street Journal's report that indicated a consortium of the country's largest cable operators, which includes Comcast and Time Warner, plans to announce as early as today that it will sell cell phone service that runs over Sprint Nextel's (S 24.07 +0.22) wireless network. In addition, Time Warner's upside earnings report and increased share buyback plan (to $12.5 bln over the next 21 months) have sent its shares higher. NYSE Adv/Dec 1521/1082, Nasdaq Adv/Dec 1515/857

[Tace]

39. Dupe

[UpInArms]

40. U.S. Oct layoffs up on month, down on year -survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T150016Z_01_NAT001871_RTRIDST_0_ECONOMY-LAYOFFS-CHALLENGER-URGENT.XML

NEW YORK, Nov 2 (Reuters) - Planned October layoffs in the United States were the lowest for that month in five years, a report said on Wednesday.

Although the 81,301 planned layoffs were 20 percent lower than a year ago they were up from 71,836 in September, said employment consulting firm Challenger, Gray & Christmas Inc. U.S. firms announced plans to hire 28,460 people in October.

"There are definitely some troubling signs that the economy is not on sure footing, including a noticeable slowdown in consumer spending," John A. Challenger, the company's chief executive officer, said in a release.

So far this year 864,953 job cuts have been announced, 4.7 percent more than the 826,160 announced through October 2004.

[UpInArms]

45. GM leads auto stocks lower after October sales plunge

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38658.4326848843-848477406&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- General Motors (GM) shares fell 2.4% to $26.53 on Wednesday, dragging on the automotive sector a day after the industry reported a monthly sales rate that fell to levels not seen since 1998. The Japanese automakers also came under pressure with Toyota Motor (TM) off 1.3% to $92.07 and Honda Motor (HMC) down 1% at $27.50. Nissan Motors (NSANY) , off 1.7% at $20.41, was the only Japanese manufacturer to turn in a year-over-year decline. Shares of Ford Motor (F) and DaimlerChrysler (DCX) both managed to gain almost 1%.

[54anickel]

49. Experts dismiss scare over bird flu (Follow up to yesterday)

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1894094#top

snip>

Gary Butcher begins his presentation with a slide that shows a "news flash" from the British press agency Reuters reporting that avian flu "poses the single biggest threat to the world right now."

The H5N1 avian flu virus has led to the death of 150 million birds, either through infection or culling to prevent the virus from spreading. So far, however, the number of people who have become infected remains small, with 121 confirmed illnesses and 62 reported fatalities as of Monday. No one has yet been proven to have given avian influenza to someone else.

The World Health Organization continues to warn that a human pandemic may occur and has advised national governments to make contingency plans. President Bush is expected to announce today the White House strategy for handling a potential pandemic during a visit to the National Institutes of Health.

"The emphasis of all my work has changed to dealing with this madness," Butcher said Friday, while briefly back at his office on the UF campus in Gainesville. "Realistically, avian influenza is not a threat to people, but everywhere you go, it has turned into a circus."

more...

http://www.gainesville.com/apps/pbcs.dll/article?AID=/20051101/LOCAL/51101021/1078/NEWS&template=printart

[54anickel]

55. Ewww, now this sucks!!!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1892111#1892314

BIRD FLU INTRODUCED VIA VACCINE?

Little known but much too broad, Project Bioshield is a $5.6 billion program Bush signed into law in July 2004 that would apparently strip U.S. citizens of any recourse in the event that the feds decide on certain health-care remedies. These would presumably include the mandatory application of unproven vaccines to counter real or perceived health threats worldwide.

Recent reports use the term "Bio-Fascism" to characterize initiatives such as Project Bioshield, describing it as "the merging of the military medical establishment with public health bureaucracies, to enforce the will of the ostensible federal regulator (the Food and Drug Administration (FDA)) and Big Pharma. The latter is a descriptive term for the gigantic transnational drug companies who have used their enormous clout to generate government programs that mandate the use of their products for so-called public safety purposes. Too often, as has been seen recently, what is initially perceived as a drug for the public good evolves into a danger because of unforseen side effects. Vaccines are usually rushed into production without prior testing, allowing side effects to manifest themselves only through broad application.

President Bush's recent remarks about mandating vaccinations for avian flu is further evidence of the militarization of public health care and would also seem to reflect a dangerous misunderstanding about disease and palliative methodologies. Medical science, especially in its initial stages, is replete with side effects and even ramifications that can carry over into the next generation. What is perhaps even more worrisome than Bush's plans to militarize public health care is his focus, one might say obsession, on martial law as a curative for almost every weighty issue of his second term.

According to an article recently posted on a major alternative news sight entitled Avian Flu Fright - Politically-Timed For Global 'Iatrogenocide,' Leonard G. Horowitz, DMD, MA, MPH writes that the current hysteria over Avian flu, which Bush seems to share, is actually resulting in its manufacture in military labratories in the United States and abroad. He points out that the Avian Flu, currently causing the slaughter of thousands of wild birds, has shown no propensity to "mutate" and jump to humans - and in fact such a mutation is highly unlikely. Rather, what will happen, he predicts, should the hysteria continue unabated is that the West will respond to public concerns by first creating and then making available a vaccine for which there is as yet no disease; in other words - since a vaccine is a weak form of what it is intended to combat - introduce into the real world the deadly virus that probably would not otherwise make its appearance.

more...

[UpInArms]

60. this mal-administration discards sound science and truth

as its first course of business.

Anything that drips from their slimy pieholes is subject to the pathological liar test.

Are their lips moving?

Lies are forthcoming.

[AnneD]

90. As a nurse

I am as pro vaccination as one can get because it IS essential to public health. But this last yr the Tx legislature required 2 new shoots that many of us old salt school nurses felt were unnecessary (and pay off to the pharm lobby). Not only that, we were required to identify the type (brand) of pneumococcal vaccine the child recieved. I'll be damned if I will waste my time doing market research for them.

[ozymandius]

51. 11:12 update = markets love pain

Dow 10,442.47 +35.70 (+0.34%)
Nasdaq 2,131.61 +17.56 (+0.83%)
S&P 500 1,209.57 +6.81 (+0.57%)
10-Yr Bond 45.95 +0.18 (+0.39%)
NYSE Volume 821,124,000
Nasdaq Volume 764,012,000

11:00AM: Edging slightly higher, the indices remain on positive turf. The Utilities sector is currently the only one sporting a loss, but, pressured by a pharmaceutical pair, the Heathcare sector vacillates around the unchanged mark. In the news again, Merck (MRK 28.04 -0.48) has declined 1.7%. Jury deliberation regarding the second Vioxx liability suit, out of about 7,000, commenced yesterday and continues today. Johnson & Johnson (JNJ 61.79 -0.11) confirmed that it's received FTC clearance of its proposed acquisition of Guidant (GDT 60.78 -2.32), but stated that it is not required to close the $25.4 bln deal. The drug giant said that it continues to view product recalls, and subsequent regulatory investigations and claims, as serious matters affecting both GDT's short-term results and long-term outlook; as a result, it claims it is not required to close the merger. To that end, GDT has fallen nearly 4% and poses further pressure.NYSE Adv/Dec 1890/1095, Nasdaq Adv/Dec 1804/947

[loudsue]

59. Everyone I know is moving to cash & selling Mutual Funds.

How does that make the market go up? :shrug:

The "up" market just goes right over my head.

:yourock: Thanks, Marketeers, for keeping us informed!!! :loveya:






:kick::kick::kick::kick:

[ozymandius]

52. J&J says may not close Guidant deal

PHILADELPHIA (Reuters) - Johnson & Johnson (NYSE:JNJ - news) on Wednesday said it may not complete its $25.4 billion purchase of Guidant Corp. (NYSE:GDT - news), saying the recall of products at the medical device maker had hurt the value of the company.

The Federal Trade Commission on Wednesday approved the deal on the condition that Johnson & Johnson meet several conditions, including licensing a key stent delivery technology to Abbott Laboratories Inc. (NYSE:ABT - news)

J&J said it has had negotiations with Guidant about restructuring of the terms of the transaction, but failed to reach an agreement. J&J said it cannot assure that talks will resume or whether the two companies will agree on new terms that will allow it to complete the acquisition.

more

[ozymandius]

54. The Nuts and Bolts of Tax Reform

When President Bush's hand-picked advisory panel rolled out its recommendations for fixing the federal tax code on Nov. 1, it kicked off what promises to be a corker of a battle over what's wrong with the income tax system and how to fix it (see BW Online, 10/25/05, "Toward a Saner Tax Code").

It will be years before the political system finishes chewing over the panel's proposals. Still, if Bush throws his weight behind reform, watch closely. After all, taxes are a little like the sneezing and watery eyes that come with the blossoms of spring in Washington: They aren't pleasant, but you grow used to them. And if pols embrace new ways to take our money, we are going to have to make some big changes in the way we earn, save, and spend.

-cut-

For individuals, the two plans are very similar, clearing many current deductions and credits out of the code, lowering rates, and providing generous new tax breaks for savings and investment. Both would also repeal the Alternative Minimum Tax, which threatens to hit as many as 30 million families by the end of the decade (see BW, 9/20/04, "What A 'Fairer' Tax Code Might Look Like").

-cut-

KEY ISSUES. Under the consumption tax plan, companies would be allowed to immediately write off the cost of all capital investment, but they would lose the ability to deduct interest costs on the money they borrow. Under the simplified income tax plan, they could keep their valuable interest deduction, but would have to write off the costs of plant and equipment over time, as they do today.

more

[UpInArms]

56. S&P says may cut Time Warner's debt ratings

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T161112Z_01_WNA1997_RTRIDST_0_MEDIA-TIMEWARNER-S-P-URGENT.XML

NEW YORK, Nov 2 (Reuters) - Standard & Poor's on Wednesday said it may cut Time Warner Inc.'s (TWX.N: Quote, Profile, Research) long-term debt ratings, citing a "potential shift" toward less conservative financial management.

S&P said it may cut the company's corporate credit rating, among others, currently at "BBB-plus," which is three steps above junk status.

Time Warner had about $20 billion of debt outstanding as of the end of September, S&P said.

[ozymandius]

57. Stocks gain as oil supplies rise

NEW YORK (Reuters) - U.S. stocks rose on Wednesday after a government report showed an increase in U.S. crude inventories for the fourth straight week and Time Warner Inc. (NYSE:TWX - news) posted better-than-expected profit.

Shares of Time Warner, the world's No. 1 media company, advanced 2.3 percent to $17.98 on the New York Stock Exchange after the company said its high-speed Internet and digital phone services drew more subscribers and online advertising sales increased. It also said it plans to more than double its stock buyback commitment.

-cut-

The U.S. Energy Information Administration reported crude oil inventories rose by a wider-than-expected 2.7 million barrels. U.S. crude oil prices added 15 cents to $60.25 a barrel, off Tuesday's low of $59.05, the weakest level since late July.

Shares of MBIA Inc. (NYSE:MBI - news) climbed after the Wall Street Journal reported on Wednesday that the largest U.S. insurer of municipal bonds is close to settling civil probes into its accounting by federal and state authorities, agreeing to pay less than $100 million in fines and damages and accepting a review of past practices.

more

[54anickel]

58. SEC SMACKS HACKERS (Resourceful lil' hackers!)

http://www.nypost.com/business/56696.htm

November 2, 2005 -- The Securities and Exchange Commission yesterday sued an Estonian investment bank whose traders scammed almost $8 million by hacking into market-moving press releases before they became public.

According to the SEC, two traders at the Tallinn, Estonia-based Lohmus Haavel & Viisemann used a program that accessed information from press releases at Business Wire's Web site prior to their distribution. The SEC charged the bank with securities fraud.

The traders were able to earn $7.8 million in profits with this "material non-public information" on 200 U.S. firms.

A computer "Spider," to hunt keywords in the pending press releases, tipped off the two principal architects of the scam, Oliver Peek and Kristjan Lepik.

[UpInArms]

71. Estonian bank suspends staff at centre of SEC probe

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T165430Z_01_L02597797_RTRIDST_0_FINANCIAL-ESTONIA-SEC.XML

TALLINN, Nov 2 (Reuters) - An Estonian investment bank, the subject of a U.S. Securities and Exchange Commission inquiry, said on Wednesday it had started an internal investigation and suspended staff at the centre of the probe.

The SEC on Tuesday charged Estonian company Lohmus Haavel & Viisemann (LHV) and two of its employees with fraud in relation to a scheme to steal corporate news release data from Business Wire in advance of the official release.

Estonia's financial watchdog told Reuters it also was mounting its own investigation into the allegations.

In a statement in Tallinn on Wednesday, LHV said it had suspended two employees pending the results of its inquiry.

LHV Managing Partner Rain Tamm said his bank neither participated in nor authorised the scheme.

...more...

[54anickel]

77. Sort if a strange oxy-moron isn't it? Confidential Press Releases

I mean, yeah, here's some extremely confidential information that we are releasing to the press for publication. :crazy:

All they really did was figure out a way to access the information before it made it to press and the general public. Not excusing what they did, just find the use of Confidential Press Release as humorous.

Meanwhile Business Wire has got some "splainin" to do.

[UpInArms]

62. 11:36 EST numbers (WHEE!) and blather

Dow 10,463.84 +57.07 (+0.55%)
Nasdaq 2,135.64 +21.59 (+1.02%)
S&P 500 1,211.69 +8.93 (+0.74%)
10-Yr Bond 4.589 +0.12 (+0.26%)

NYSE Volume 980,287,000
Nasdaq Volume 897,900,000

11:30AM: Heading into the lunch hour, the market's majors move further north. 21 if the Dow's 30 components currently extend gains, with Intel (INTC 23.03 +0.38), American International Group (AIG 66.10 +1.02), and American Express (AXP 49.68 +0.53) standing as the brightest blue chips. Buying interest in the latter two have helped send the Financials sector to a weighty 0.8% gain. On the other side of the average, relative weakness in Merck (MRK 27.98 -0.54), General Motors (GM 27.02 -0.17), and Boeing (BA 64.55 -0.50) presents some downward pressure. With respect to Boeing, shares have slid about 1% upon reports that about 1,500 of its machinists went on strike this morning after failing to resolve last-minute talks regarding retiree health insurance. NYSE Adv/Dec 2026/1005, Nasdaq Adv/Dec 1884/922

[Roland99]

66. We just might hit Jan. 2001 levels some time before Jan. 2006!

[AnneD]

91. I think of that every time they brag about the market going up

:spray: :rofl: We're gonna be rich!!!!:sarcasm:

[ozymandius]

69. Stocks gain on Sprint

NEW YORK (Reuters) - U.S. technology stocks rose sharply on Wednesday after video game publisher Electronic Arts Inc. (Nasdaq:ERTS - news) had better-than-expected quarterly results and four U.S. cable operators announced a joint venture with Sprint Nextel Corp. (NYSE:S - news).

Comcast Corp. (Nasdaq:CMCSA - news), Time Warner Inc.'s (NYSE:TWX - news) cable division, Cox Communications Inc. and Advance/Newhouse Communications will work with Sprint Nextel Corp., (S.N) to develop new wireless services.

Comcast gained 2.7 percent to $28.86, while Sprint Nextel added 3.8 percent to $24.75.

more

[UpInArms]

70. U.S. companies repatriate taxes, disclose little

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-11-02T164012Z_01_N27236569_RTRIDST_0_ECONOMY-COMPANIES-REPATRIATION.XML

NEW YORK, Nov 2 (Reuters) - U.S. companies may be repatriating hundreds of billions of dollars to take advantage of a one-time tax break meant to spur job creation, but few clearly say how they are going to spend the cash.

In a Reuters survey of the 30 companies that make up the Dow Jones industrial average, only seven of the 16 that have so far brought back money earned abroad have provided even a broad outline of what they are doing with it.

<snip>

The vague response has raised questions over the tax break, which was introduced by President George W. Bush as part of the American Jobs Creation Act in October last year. Critics say tracing how money is spent in a large corporation is difficult and that enforcing the law is highly unlikely.

"Those companies are all very tax savvy and they are doing what everybody else would do -- they are bringing the money at a lower cost and using it to fund all sorts of things," said Roger Kubarych, a former Federal Reserve economist and chief economist at the New York Stock Exchange, who is now an economic advisor for HVB America Inc. "Ultimately what generates jobs is macroeconomic growth and sound policies, and not a tax break."

...more...

Someone said that tax cuts do not create jobs????!!!???

Quick! Off with his head!

Rally the troops!

Get the torches and pitchforks!

[54anickel]

82. Hey, Kubarych!!! Where the hell were you when the idiot proposed the

dim idea? It was nothing more than a give away and a job destruction bill that fed the huge M&A activity that we are now witnessing. Thanks alot for steppin' up to the plate when we needed you - a$$wipe.

[UpInArms]

84. Dow 30 companies repatriate foreign earnings (names and numbers)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T175932Z_01_N02134815_RTRIDST_0_ECONOMY-COMPANIES-REPATRIATION-FACTBOX.XML

excerpt:

The following details how much, if any, each company plans to repatriate, and how those funds will be used. Pfizer Inc. (PFE.N: Quote, Profile, Research) $37 billion, to fund expansion through U.S. acquisitions Merck & Co. (MRK.N: Quote, Profile, Research) $15 billion, no additional details on how funds will be spent Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research) $14.5 billion, for acquisitions Johnson & Johnson (JNJ.N: Quote, Profile, Research) $11 billion, for use "in accordance with ... the act" DuPont Co. (DD.N: Quote, Profile, Research) $9.4 billion, for research and development, marketing and salaries International Business Machines Corp. (IBM.N: Quote, Profile, Research) $8 billion, for research and development and other investments Procter & Gamble Co. (PG.N: Quote, Profile, Research) $7.2 billion, to be spent in accordance with the law Intel Corp. (INTC.O: Quote, Profile, Research) $6.3 billion, partly on projects that include upgrading and expanding manufacturing facilities Coca-Cola Co. (KO.N: Quote, Profile, Research) $6.1 billion Altria Group (MO.N: Quote, Profile, Research) $6 billion, in accordance with the law McDonald's Corp. (MCD.N: Quote, Profile, Research) $3.2 billion, for salaries and capital expenditure, remodeling and opening new restaurants in 2005 and 2006. Honeywell International Inc. (HON.N: Quote, Profile, Research) $2.7 billion in 2005 to pay down debt, increase cash reserves and finance acquisitions. Verizon Communications Inc. (VZ.N: Quote, Profile, Research) $2.4 billion, for capital programs. 3M Co. (MMM.N: Quote, Profile, Research) $1.7 billion, to be spent pursuant to the provisions of the act JP Morgan Chase & Co. (JPM.N: Quote, Profile, Research) up to $1.9 billion, no details American Express Co. (AMX.N: Quote, Profile, Research) no plans to repatriate foreign earnings in 2005 Caterpillar Inc. (CAT.N: Quote, Profile, Research) no indication of plans to repatriate foreign earnings Exxon Mobil Corp. (XOM.N: Quote, Profile, Research) no plans to repatriate funds in 2005 United Technologies Corp. (UTX.N: Quote, Profile, Research) no plans to repatriate funds in 2005 SBC Communications Inc. (SBC.N: Quote, Profile, Research) no plans to repatriate funds in 2005 General Electric Co. (GE.N: Quote, Profile, Research) no plans to repatriate funds in 2005 Microsoft Corp. (MSFT.O: Quote, Profile, Research) $780 million, no details on how the funds will be used General Motors Corp. (GM.N: Quote, Profile, Research) no plans to repatriate funds Boeing Co. (BA.N: Quote, Profile, Research) undecided Home Depot Inc. (HD.N: Quote, Profile, Research) evaluating its options under the act Walt-Disney Co. (DIS.N: Quote, Profile, Research) no indication Alcoa Inc. (AA.N: Quote, Profile, Research) evaluating consequences of repatriating up to $1,000 Citigroup Inc. <C.N> awaiting clarification of part of the act American International Group Inc. (AIG.N: Quote, Profile, Research) no comment Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) no plans to repatriate funds (Reuters Wall Street Desk 646-223-6110)

...more at link...

[cosmicdot]

102. CBO estimate of bill's effect

H.R. 4520
American Jobs Creation Act of 2004
As cleared by the Congress on October 11, 2004, and signed by the President on October 22, 2004


SUMMARY

H.R. 4520, enacted as Public Law 108-357, repeals the exclusion for a portion of income earned by exporters (so-called extraterritorial income), allows a deduction for income attributable to production in the United States, alters numerous other tax laws for both domestic and foreign corporations, and provides individuals with an optional deduction for state and local sales taxes (in place of state and local income taxes.) In addition to making many other changes to tax law, the act also makes several changes to the federal tobacco production quota program and extends both Internal Revenue Service (IRS) and customs user fees through September 30, 2014. The provisions of the act have various effective and sunset dates.

The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) estimate that this legislation will decrease federal revenues by about $4.9 billion in 2005, $10.1 billion over the 2005-2009 period, and $6.8 billion over the 2005-2014 period. CBO estimates that H.R. 4520 will increase outlays resulting from direct spending by $764 million in 2005, but will decrease direct spending by about $1.3 billion over the 2005-2009 period and $6.5 billion over the 2005-2014 period. On balance, H.R. 4520 will increase deficits by an estimated $5.7 billion in 2005 and $8.8 billion over the 2005-2009 period, and by about $350 million over the 2005-2014 period--excluding effects on discretionary spending and debt service (i.e., interest effects).

~snip~ more

http://www.cbo.gov/showdoc.cfm?index=6007&sequence=0&from=6

48 Democrats voted yea with the House Republicans; 23 Republicans voted no with the Democrats. This bill could have been defeated.

http://clerk.house.gov/evs/2004/roll259.xml

The Senate version passed 92-5 with 3 not voting.
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=108&session=2&vote=00091

When the conference report bill was voted on by the Senate, the vote
was 60-17 with 13 not voting, and one voting 'present'
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=108&session=2&vote=00211

[ozymandius]

72. Volcker Warns Inflation May Become Problem

NEW YORK - Former U.S. Federal Reserve chairman Paul Volcker warned Tuesday that inflation may be getting out of hand "and the United States better watch out."

He also said Americans are spending more than they produce which cannot continue indefinitely.

Answering a few economic questions at a session devoted mainly to the investigation of corruption in the U.N. oil-for-food program which he led, Volcker said the U.S. economy was doing well "as a result of our proclivity to consume."

People in other countries like lending the United States money because they like to sell Americans the goods consumed here, he said.

He uses the word 'unsustainable'.

[AnneD]

92. Once again

another economist steps up to the plate........after the fact. Well no shit Sherlock. Where were you the last few months when everyone on WS was saying there was no problem. And more importantly, why are you speaking up now?

[54anickel]

98. Volcker has been pretty vocal about this mess for quite a while now.

How much longer can they just blow him off. Remember this one from April?

An Economy On Thin Ice

http://www.washingtonpost.com/wp-dyn/articles/A38725-2005Apr8.html

snip>

Most of the time, it has been private capital that has freely flowed into our markets from abroad -- where better to invest in an uncertain world, the refrain has gone, than the United States?

More recently, we've become more dependent on foreign central banks, particularly in China and Japan and elsewhere in East Asia.

It's all quite comfortable for us. We fill our shops and our garages with goods from abroad, and the competition has been a powerful restraint on our internal prices. It's surely helped keep interest rates exceptionally low despite our vanishing savings and rapid growth.

snip>

The difficulty is that this seemingly comfortable pattern can't go on indefinitely. I don't know of any country that has managed to consume and invest 6 percent more than it produces for long. The United States is absorbing about 80 percent of the net flow of international capital. And at some point, both central banks and private institutions will have their fill of dollars.

I don't know whether change will come with a bang or a whimper, whether sooner or later. But as things stand, it is more likely than not that it will be financial crises rather than policy foresight that will force the change.

more...

[AnneD]

100. Thank you for the input.

I had thought well of Volker as he did the job (how else could someone like me remember him), but have not really heard much from him until today. I think this is a case of selective reporting-much like the Refco story. Thanks for letting me know that he is still voicing sound warnings.

[ozymandius]

73. 12:13 numbers and blather

Money flows into treasuries.

Dow 10,458.88 +52.11 (+0.50%)
Nasdaq 2,133.65 +19.60 (+0.93%)
S&P 500 1,210.50 +7.74 (+0.64%)
10-Yr Bond 45.71 -0.06 (-0.13%)
NYSE Volume 1,187,115,000
Nasdaq Volume 1,061,979,000

12:00PM : Recovering after yesterday's downbeat session, the stock market has regained the bullish tone that recently sent it to one of the biggest two-day rallies of the year. While today's economic calendar is a blank one and despite the lack of substantial market movers on the earnings front, buyers have dominated trading action since just after the bell. Leadership has been broad, with nine of ten sectors extending gains. The Consumer Discretionary sector maintains the driver's seat, up 1.3% and particularly bolstered by soaring Time Warner (TWX 17.91 +0.34) and Comcast (CMCSA 28.86 +0.76) shares. Time Warner, for its part, delivered better than expected Q3 earnings alongside an announced $7.5 bln increase in its share buyback plan. Reports that a consortium of the country's largest cable operators, which includes Comcast and Time Warner, will sell cell phone service that runs over Sprint Nextel's (S 24.74 +0.89) wireless network have sent both issues higher. A bullish read on the latest energy inventory data from the EIA - stats on crude, gasoline, and distillates supply were all better than expected - further contributes to the Discretionary sector's advance. At the same time, the report has not curbed buying within the Energy sector. A particular bright spot there is Transocean (RIG 59.65 +1.55), surging on news that its been awarded $985 mln in contracts from Anadarko Petroleum (APC 90.72 +0.61). Despite weakness in the Treasury market that has pushed the 10-year note to seven-month highs, wide-spread buying and especial strength in brokers have carried the Financials sector to a weighty 0.9% gain. Following close behind, Tech offers 0.8%. Driving the sector, and contributing to the Nasdaq's outperformance, is a 7.7% earnings-induced jump in Electronic Arts' (ERTS 60.14 +4.35) shares. Strength in semiconductors and hardware teams with ERTS in offsetting an 18% plunge in Symantec (SYMC 19.36 -4.64). Although the software company surpassed Q3 expectations, its downside FY05 guidance - and seven subsequent downgrades - has roiled traders. Healthcare, serving as the morning's laggard, has received some added focus today. Continuation of a jury's deliberation, which commenced yesterday, regarding the second of about 7,000 Vioxx liability suits against Merck (MRK 27.99 -0.53) has taken a toll on the drug giant's shares. News that Johnson & Johnson's (JNJ 61.72 -0.18) may not follow through with its $25.4 bln acquisition of Guidant (GDT 60.40 -2.70) - which the FTC cleared today - has also weighed upon the sector. NYSE Adv/Dec 2149/957, Nasdaq Adv/Dec 1943/918

[UpInArms]

74. Confidential Delphi memo recommends closing Vandalia site

http://www.daytondailynews.com/business/content/business/daily/1102delphi.html

DETROIT | Delphi Corp. is studying a sweeping plan to remake its Electronics and Safety division by shedding U.S. factories — including its Vandalia operations — shutting technical centers and possibly buying rival Motorola Corp.'s automotive unit, according to an internal company document.

In a confidential document outlining a plan code-named "Northstar," Delphi cites the restructuring of its Electronics and Safety unit as a cornerstone of its long-range effort to reorganize in Chapter 11 bankruptcy.

The document — a copy of which was obtained by The Detroit News lays out a draft of Delphi's game plan to expand one of its core divisions even as it abandons several money-losing product lines and closes plants.

In its drive for "global dominance" of the auto electronics and safety markets, Delphi will pursue "aggressive cost reduction via product exits, site consolidation, and legacy labor cost reduction," the document said.

Moreover, the auto-parts giant is committed to "execute ruthless portfolio management" by focusing on "more winners, more exits."

...more...

(fixin' that headbump with Ozy :hi: )

[UpInArms]

79. Delphi memo outlines "ruthless" makeover-report

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=mergersNews&storyID=URI:urn:newsml:reuters.com:20051102:MTFH63293_2005-11-02_11-15-05_N02177543:1

NEW YORK, Nov 2 (Reuters) - Delphi Corp. is studying a plan to remake its Electronics & Safety division by shedding U.S. factories, shutting technical centers and possibly buying rival Motorola's automotive unit, the Detroit News reported Wednesday.

Citing an internal company document outlining a plan code-named "Northstar," Delphi <DPHIQ.PK> sees the restructuring of its Electronics & Safety unit as a cornerstone of its efforts to reorganize in Chapter 11 bankruptcy, the newspaper said.

The document lays out a draft of Delphi's plan to grow one of its core divisions even as it abandons several money-losing product lines and closes plants, the paper reported.

In its drive for global dominance of the auto electronics and safety markets, Delphi will pursue "aggressive cost reduction via product exits, site consolidation, and legacy labor cost reduction," the document said.

<snip>

The "Northstar" plan identifies five U.S. plants for "exit" -- Flint East, Michigan; Kokomo, Indiana, Plant 9; Milwaukee, Wisconsin; Vandalia, Ohio; and Tucson, Arizona. Also on the list are plants in Ashimori, Japan; and Liverpool in the UK.

The plan also calls for reducing the Electronics & Safety division's technical centers from 23 to 16.

...more...

[UpInArms]

80. War-Profiteers: Ammo sales help ATK's 34% profit jump

http://www.marketwatch.com/news/story.asp?guid=%7BAFF9177E%2D8710%2D44FB%2DB3BA%2D1A9B1BD1FA4C%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Alliant Techsystems said Wednesday that its fiscal second-quarter net earnings rose 34% on strong performances by its ammunition and ATK Thiokol operations and that it is confident it can weather any slowing in the Defense Department's budget growth.

<snip>

Ammunition sales totaled $252 million, a 12% increase, while its ATK Thiokol group, which makes flares and decoys being used in operations in Afghanistan and Iraq as well as the rocket engines used to launch the Space Shuttle, reported revenue of $242.8 million, up 15%.

The precision systems group, which makes missiles and advanced ammunition among other military equipment, reported a 4.3% increase in sales to $123.7 million, while the advanced propulsion and space systems group's revenue rose 35% to $116 million.

...more...

http://costofwar.com/index.html

The War in Iraq Costs
$216,661,612,843

Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.

This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children...

This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.

From the Chance for Peace address delivered before the American Society of Newspaper Editors, April 16, 1953. (Regarded as one of the finest speeches of Eisenhower's presidency.)

[wordpix]

93. war machine profiteers continue adding to their bottom line

[AnneD]

94. What that total represents Main St...

is the fiscal soundness of the Social Security for the next few generations, desperatly needed repairs to our infrastructure like roads, levees, dams, seed money to R&D like alternative energy sources, education, basic levels of health care. What a waste.

[lonestarnot]

86. Excellent information! Great Cartoon!

[ozymandius]

96. closing numbers

Yowza!

Dow 10,472.73 +65.96 (+0.63%)
Nasdaq 2,144.31 +30.26 (+1.43%)
S&P 500 1,214.76 +12.00 (+1.00%)
10-Yr Bond 46.10 +0.33 (+0.72%)
NYSE Volume 2,646,608,000
Nasdaq Volume 2,174,882,000

blather to come...

[UpInArms]

97. blather

Close: Following yesterday's detour, the equity market managed to return to gaining ground today. Buyers took control of trading action in the early going, rallying again and helping to further erase some of the indices' sharp quarter-to-date losses. Despite a blank economic docket and amid an absence of substantial market movers on the earnings front, the bullish sentiment showed no sign of wavering over the course of the day. Leadership was broad: Eight of the ten economic sectors retained gains from the morning on, and the two laggards got a late boost that sent them onto positive turf. Consumer Discretionary put in another leading performance. Rising Time Warner (TWX 17.93 +0.36) and Comcast (CMCSA 28.90 +0.80) shares, along with running retailers and outperforming homebuilders, sent the sector upwards by 1.8%. With respect to Time Warner, a better than expected Q3 earnings report and an announced $7.5 bln increase to its share buyback plan attracted buyers. Reports that a consortium of the country's largest cable operators - which includes Comcast and Time Warner - will sell cell phone service that runs over Sprint Nextel's (S 24.07 +0.22) wireless network sent both stocks higher. Retailers, for their part, rallied ahead of tomorrow's torrent of October same store sales data; Wal-Mart's (WMT 47.49 +0.50) previously-announced upside guidance and last week's strong read on consumer spending had perhaps helped catalyze an air of optimistic anticipation. In addition, a better than expected report from the EIA knocked crude into negative territory and helped keep its price below $60.00/bbl for another session - further aiding the Discretionary sector's advance. At the same time, the report did not impede the Energy sector's rise. Transocean (RIG 60.32 +2.22), a recommended holding in Briefing.com's Active Investor portfolio, lent especial support. Upon news that it was awarded $985 mln in contracts from Anadarko Petroleum (APC 91.00 +0.89), shares closed 3.6% higher. Despite a languishing Treasury market, within which the 10-year's 4.61% yield hit a seven-month high today, wide-spread strength and particular rises in property and casualty insurers, banks, and brokers pushed Financials to a 0.9% gain. Largely on account of semiconductors' performance, Tech contributed a weighty 1.2%. In addition, the surging subgroup sent the SOXX index and Nasdaq to outperforming gains. Offering further upside was Electronic Arts (ERTS 60.22 +4.43), which extended an 8.0% earnings-spurred gain that marked home entertainment software the S&P's best performing group today. Along with those particular pockets of strength, broad-based buying countered an 18% plunge in Symantec (SYMC 19.42 -4.58) that followed the company's disappointing earnings guidance. Along with Utilities, Healthcare had stood as the session's laggard. As mentioned earlier, though, both sectors cleared the flat line just ahead of the bell. With respect to the former, positive analyst comment on TXU Corp. (TXU 92.57 +2.13) and a better than expected earnings report delivered by Duke Energy (DUK 26.71 +0.52) helped foster a 0.5% rise. Healthcare, meanwhile, occupied much of the session's spotlight. Continuation of a jury's deliberation regarding the second of about 7,000 Vioxx liability suits against Merck (MRK 28.35 -0.17), which commenced yesterday, agitated investors. Further, reports that Johnson & Johnson (JNJ 61.32 -0.58) may nix its $25.4 bln acquisition of Guidant (GDT 60.46 -2.64) - which the FTC cleared today - helped stunt the sector. However, strength in healthcare suppliers pulled Healthcare to a +0.1% finish. NYSE Adv/Dec 2430/849, Nasdaq Adv/Dec 2135/895

[54anickel]

99. Yee-haw!!! They can almost taste 10,500 again. Surely we'll make

it, after all November is ALWAYS a good month. :eyes:

[AnneD]

101. Got to get as many people in to the tent....

before the pole gives way.