STOCK MARKET WATCH, Friday July 11

Source: du

STOCK MARKET WATCH, Friday July 11, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 194
DAYS SINCE DEMOCRACY DIED (12/12/00) 2728 DAYS
WHERE'S OSAMA BIN-LADEN? 2453 DAYS
DAYS SINCE ENRON COLLAPSE = 2744
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

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AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

AT THE CLOSING BELL ON July 10, 2008

Dow... 11,229.02 +81.58 (+0.73%)
Nasdaq... 2,257.85 +22.96 (+1.03%)
S&P 500... 1,253.39 +8.70 (+0.70%)
Gold future... 942.00 +13.40 (+1.42%)
30-Year Bond 4.42% -0.01 (-0.16%)
10-Yr Bond... 3.81% -0.02 (-0.60%)






GOLD,EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

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Read more: du

BY MIKE SHEDLOCK

It's been a wild ride for Fannie and Freddie recently. Yesterday, James Lockhart, director of the Office of Federal Housing Enterprise, said the GSEs are "well capitalized." William Poole, former Fed governor disagrees. See Poole Says "Fannie, Freddie Insolvent."

The market agrees with Poole as share prices have continued to plunge and Fannie Mae Pays Record Yield Spreads on Sale of Two-Year Notes vs. two-year treasuries.

-chart-

Institutions Must Be Allowed To Fail

Today Paulson Says Financial Institutions Must Be Allowed To Fail. I would like clarification from Paulson as to what "fail" means. What it should mean is Fannie and Freddie go bankrupt, the government gets out of the GSE sponsorship business, and home prices fall to their natural level.

What I suspect Paulson means is We're All Homeowners Now, Nationalization of Fannie, Freddie Unavoidable. In this scenario, the share price of Fannie and Freddie will drop to zero, yet taxpayers will foot the bill to keep Fannie and Freddie in business.

....

Paulson's statement "Institutions Must Be Allowed To Fail" is in reality an implicit admission the Fed is powerless to stop a credit implosion whether the Fed wants to do something about it or not. We have finally reached the point at which the mess is too big to bail. All that remains at this point is the final numbers on how much taxpayers have to cough up when Congress foolishly tries to make water run uphill.

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

NEW YORK (CNNMoney.com) -- The pounding of Fannie Mae and Freddie Mac continued Thursday, reflecting concerns about their solvency - and raising fresh anxieties about the impact their collapse would have on the U.S. housing market and broad economy.

The Wall Street Journal early Thursday said that Bush administration officials have held talks about what to do in the event the two government-sponsored firms falter. Late Thursday, the New York Times reported on its web site that officials are mulling the possibility of taking over one or both of the companies and placing them into conservatorship.

The government doesn't expect the firms to fail and no rescue plan is imminent, according to the papers. But both papers reported that talks, which it said had previously been part of normal contingency planning, have become more serious recently.

....

What Fannie and Freddie do - why they matter

Fannie and Freddie are crucial components to the nation's home lending industry, as they buy pools of mortgage loans and sell securities backed by the payments from those loans.

The two companies own or guarantee about $5 trillion of mortgages - or nearly half of all U.S. home-mortgage debt outstanding.

http://money.cnn.com/2008/07/10/news/companies/fannie_f...

---

So the government does not expect them to fail? Then let's suppose this bailout proposal is just a bunch of mental circle jerking.

The New York Time reports that the Federal government is leaning towards conservatorship as the approach for handling Freddie and Fannie's shaky finances. Under this scenario, shareholders are wiped out and taxpayers fund any losses.

What I find disturbing about the mainstream media coverage is the refusal to connect the dots between the increasing demands placed on the GSEs by Congress and the negative reaction in the market. This is pushback, pure and simple, against efforts to finesse a Federal bailout of housing by pushing as much as possible on to Fannie and Freddie, rather than set up new programs so the costs would be explicit.

There are no free lunches, particularly in times like these.

From the New York Times:



Yves here. So the Feds believe that the markets can be fooled by off balance sheet financing. Back to the Times:



So Paulson couldn't even muster a convincing lie, and ducked the question clumsily. That give you the answer right there.

http://www.nakedcapitalism.com/2008/07/fannie-and-fredd...

Marketwatch reports that the government discussed a contingency plan in case the unthinkable happens, and Fannie Mae (FNM) and Freddie Mac (FRE) were to fail.

But don't worry -- the Bush administration DOES NOT expect the entities to fail. And, they note no rescue plan is imminent.

Rex Nutting says Uh-Oh! This is a major contrary indicator, and it suggests Freddie and Fannie are toast!

Why?

"Is there any surer sign of an impending disaster than a reassurance from the White House that it doesn't expect it to happen?"

Rex adds this short list of other things that the Bush administration didn't expect:



http://bigpicture.typepad.com/comments/2008/07/uh-oh-ba...

Meanwhile everywhere else is drowning with pneumonia.

makes me wonder if that is one of the ACME brand Wiley Coyote umbrellas he is giving to Uncle Sam.

to be a Haliburton brand, not Acme.

08:30 Export Prices ex-ag. Jun
Briefing NA
Consensus NA
Prior 0.4%

08:30 Import Prices ex-oil Jun
Briefing NA
Consensus NA
Prior 0.5%

08:30 Trade Balance May
Briefing -$61.0B
Consensus -$62.2B
Prior -$60.9B

10:00 Mich Sentiment-Prel. Jul
Briefing 55.0
Consensus 55.5
Prior 56.4

14:00 Treasury Budget Jun
Briefing NA
Consensus $33.0B
Prior $27.5B

http://www.briefing.com/Investor/Public/Calendars/Econo...

14. U.S. May real trade gap lowest since Oct. 2002
8:30 AM ET, Jul 11, 2008

15. U.S. May real imports down 1.8%; real exports up 0.7%
8:30 AM ET, Jul 11, 2008

16. U.S. May exports rise 0.9% to record $157.5 billion
8:30 AM ET, Jul 11, 2008

17. U.S. May imports rise 0.3% to record $217.3 billion
8:30 AM ET, Jul 11, 2008

18. U.S. May trade deficit narrows 1.2% to $59.8 billion
8:30 AM ET, Jul 11, 2008

19. U.S. May import prices rise revised 2.6%
8:30 AM ET, Jul 11, 2008

20. U.S. June imported petroleum prices rise 7.4%
8:30 AM ET, Jul 11, 2008

21. U.S. June imported natural gas prices rise 9.9%
8:30 AM ET, Jul 11, 2008

22. U.S. June import prices rise 0.8% excluding all fuels
8:30 AM ET, Jul 11, 2008

23. U.S. June import prices rise 20.5% year over year
8:30 AM ET, Jul 11, 2008

24. U.S. June import prices rise 2.6%
8:30 AM ET, Jul 11, 2008

01. U.S. July UMich consumer sentiment 56.6: reports
9:57 AM ET, Jul 11, 2008

02. U.S. July UMich consumer sentiment above 56 expected
9:57 AM ET, Jul 11, 2008

look at the timestamp on that report -

It is due at 10:00 not a minute earlier - not a minute later

TBTB released it early because TBTB thought it would be perceived as "good" news

:shakeshead:

http://www.reuters.com/article/ousiv/idUSN1125525020080...



OMG! The proles are "complaining"!!!!

Who writes this shit!!!

People are dreadfully affected - they are making hard choices - do I put gas in the tank or feed my kids!

17. U.S. June federal budget surplus $50.7 billion as expected
2:00 PM ET, Jul 11, 2008

KUALA LUMPUR, Malaysia - Oil climbed above $143 a barrel Friday in Asia, boosted by concerns over possible disruption to tight global supplies amid tensions over Iran's launch of test missiles and the possible renewal of oil-related violence in Nigeria.

....

Late afternoon in Singapore, light, sweet crude for August delivery was up $1.99 at $143.64 a barrel in Asian electronic trading on the New York Mercantile Exchange.

The contract rose $5.60 in the overnight floor session to $141.65 a barrel — after losing nearly $10 on Monday and Tuesday and then gaining a penny on Wednesday.

....

The Organization of Petroleum Exporting Countries has warned that it cannot replace the shortfall if Iran is attacked and takes its crude supplies off the market. The fear is that Iran, OPEC's second-largest producer, could block the Strait of Hormuz, a passageway that handles about 40 percent of the world's tanker traffic.

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

NEW YORK (Reuters) - Chevron Corp (CVX.N) said on Thursday it expects second-quarter earnings from its exploration and production operations to rise on higher oil and gas prices, but will be offset somewhat by a loss at its refining and marketing business.

The second-largest U.S. oil company, which posted a profit of about $252 million from its refining and marketing business in the first quarter, said it expects that number to fall "well in excess" of $500 million in the second quarter.

http://news.yahoo.com/s/nm/20080710/bs_nm/chevron_dc_1

06. August crude hits record high at $146.90 a barrel on Globex
8:37 AM ET, Jul 11, 2008

04. August crude hits record high of $147.27 a barrel on Globex
9:35 AM ET, Jul 11, 2008

HARTFORD, Conn. - Industrial conglomerate General Electric says its profit fell 6 percent in the second quarter, as discontinued operations and loss provisions weighed on results.

...

On the basis of continuing operations, GE says it earned $5.39 billion, or 54 cents per share. Thomson Financial says analysts expected the company to report earnings of 54 cents per share on revenue of $45.31 billion.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/earns_g...

NEW YORK - Wall Street headed for a moderately lower open Friday after General Electric Co.'s quarterly report failed to motivate investors still anxious about the health of the financial industry.

GE, the conglomerate that owns everything from television network NBC to jet engine plants, reported second-quarter profits that met analysts' expectations. However, the outlook across its business lines was mixed — and overall results were not convincing enough to send futures higher.

The Dow Jones industrial average futures fell 57, or 0.42 percent, to 11,160. Standard & Poor's 500 index futures fell 5.50, or 0.44 percent, to 1,249.00, while Nasdaq 100 index futures fell 11.75, or 0.63 percent, to 1,832.50.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_st_ma_re/w...

FRANKFURT, Germany - Citigroup will sell its German retail banking operation to France's Credit Mutuel for $7.7 billion in cash.

In a statement released Friday, Citigroup said the deal includes its Duesseldorf-based Citibank Privatkunden AG & Co. KGaA, along with some affiliates. The sale is expected to close in the fourth quarter if approved by regulators.

...

Cooperatively owned, Credit Mutuel is France's second largest retail bank with nearly 15 million customers and more than 5,000 branches, according to the bank's Web site.

http://news.yahoo.com/s/ap/20080711/ap_on_bi_ge/germany...

HONG KONG (MarketWatch) -- General Electric Co. has agreed to sell its Japanese consumer financial-services unit to Shinsei Bank for 580 billion yen ($5.4 billion), the U.S. conglomerate said Friday.

The agreement calls for Shinsei to acquire GE Consumer Finance Co. Ltd.'s wholly owned credit-card and mortgage operations as well as its Lake personal-loan business, and to retain these units' employees, GE said in a statement.

http://www.marketwatch.com/news/story/ge-agrees-sell-ja...

Spurred by economic worries, American shoppers have quickly decided that cheaper is better. They are trading down to store brands from fancy labels, to small cars from SUVs, and to deep-discounters from full-service stores.

Wal-Mart Stores Inc., which last year returned to its discount roots to try to reverse weakening sales, Thursday reported its best monthly sales gain in four years; it benefited from bargain-hunters seeking deals on the most basic stuff.

Discount stores overall saw sales jump nearly 6% last month, while those of full-price department stores declined. Consumers' use of discount coupons is starting to rebound after a 15-year slide. In June, the lowly Toyota Corolla became the best-selling vehicle in America, a spot held for more than two decades by the beefier (and pricier) Ford F-150 pickup.

....

Visits to department stores are down 6% this year, down 7% at office-supply stores and down 10% at home-improvement retailers, says market watcher Nielsen North America, which tracks store traffic and spending. But the downturn has proved a boon for retailers at the bottom of the price scale. Family Dollar Stores Inc., a small, discount department-store chain, forecasts same-store gains of 4% to 6% for its fiscal fourth-quarter ending Aug. 30. Dollar General Corp., another discounter, recently reported same-store sales jumped 5.6% for the fiscal quarter ended May 2.

http://online.wsj.com/article/SB121573829143444631.html...

Help us help you, airlines pleaded with customers, asking them to urge Congress to keep down fuel prices by curbing speculation.

The same airlines that have slapped price tags on everything short of flotation devices are now asking customers to channel their anger toward lawmakers who are responsible for "poorly regulated market speculation." Chief executives from 12 major operators, including AMR, US Airways Group, Delta Air Lines and Northwest Airlines, blame rampant speculation for oil prices that have nearly doubled in price in the last year.

"Over 70 years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed," they wrote, adding that restoration and stricter enforcement of the limits in combination with reforms to improve transparency, "will help cool the over-heated oil market and permit the economy to prosper."

....

Northwest Airlines blamed high fuel prices for its decision to cut 2,500 jobs, charge $15 to check luggage, and enact fees ranging from $25 to $100 for travelers redeeming frequent-flier award tickets. American Airlines was the first to announce checked bag fees, which have since been employed by US Airways and UAL's United Air Lines. Both American and Delta Air Lines charge for frequent flier award redemption. US Airways is the first to eliminate in-flight entertainment systems.

http://www.forbes.com/equities/2008/07/11/us-airways-cl...

Europe is falling fast at the moment.

http://finance.yahoo.com/#market_summary_europe

DAX INDEX 6,171.84
change -133.16
% change -2.11%

July 11 (Bloomberg) -- European stocks declined after oil climbed above $145 a barrel, weighing on the earnings outlook for automakers and airlines. The U.K.'s FTSE 100 Index slipped into a bear market, and U.S. futures fell.

Volkswagen AG, Europe's largest carmaker, and Air France- KLM Group declined as crude advanced for a third day. Credit Agricole SA led a retreat by banks after Le Monde reported its Chief Executive Officer Georges Pauget may resign. General Electric Co. gained after reporting earnings.

Europe's Dow Jones Stoxx 600 Index lost 1.8 percent to 272.88 at 12:18 p.m. in London. The index has fallen 2.3 percent this week, heading for its sixth straight weekly drop and the longest losing streak since January.

Banks have led the rout that erased more than $11 trillion from global equities this year as record oil prices, accelerating inflation and more than $400 billion in credit-related losses threatened to push the U.S. into recession and stifle profit growth.

http://www.bloomberg.com/apps/news?pid=20602004&sid=aS2...

---

It boggles my mind to see language saying the the United States is not already in a recession - but merely in danger of falling into one.

There would be free oil, airline tickets, and ponies for everyone.

And Bask in the Superior Indifference of Gadget Therapy.

I can guarantee that the heroin like high of technological wizardry will make us all forget about FNM and FRE by 11 AM.

And like Slim Pickens in Dr. Strangelove, we will ride the Information Highway of Comfort to a peaceful Euthanasia.

July 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers' votes of confidence failed to halt speculation that the stock may drop further.

Lehman, once the biggest U.S. underwriter of mortgage bonds, fell $2.44, or 12 percent, to $17.30 in New York Stock Exchange composite trading yesterday. Shares of the New York- based investment bank lost 22 percent in the last two days.

.....

Pimco and SAC's endorsements were overwhelmed as Lehman, led by Chief Executive Officer Richard Fuld, dropped alongside home-loan financing companies Fannie Mae and Freddie Mac. Both face pressure to raise more capital amid a credit contraction that has saddled banks with $408 billion of writedowns. Lehman has taken a ``pounding'' from traders betting the shares will drop since rival Bear Stearns Cos. collapsed in March, according to Richard Bove, an analyst at Ladenburg Thalmann & Co.

http://www.bloomberg.com/apps/news?pid=20601084&sid=aru...

http://www.reuters.com/article/ousiv/idUSN1135840620080...

NEW YORK (Reuters) - Shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) tumbled 14.7 percent to $14.74 before the market open on Friday. The stock had already lost over 12 percent on Thursday.

Just looking at the ECONOMIC News this morning is BREATHTAKING.

The Fed casually stroking themselves and calmly lamenting that they are considering Bailing Out FNM and FRE. Just 5.2 TRILLION, no big deal.

Oil at $143.00

Consumer Confidence....WHAT Consumer Confidence?

GE Imploding into the Abyss.

Citi sells German retail banking for $7.7 billion.

Airlines on the brink of Nationalization.

Basically the Economy itself is imploding right before our eyes.

Our fearless "leaders" continue to steamroll toward WW III like it's some sort of drunken Frat Boy Party game of Strip Risk.

The 4th Amendment is basically gone.

The criminals running this country continue to loot, kill, and pillage at their leisure, while one of the biggest ones goes on Vacation, clearly in Contempt of Court, thumbing his nose at a SUBPOENA, while Congress just scratches themselves and threatens to wag their fingers in disapproval if he doesn't stop fooling around and come sit down for a chat.

And what is the BIGGEST concern, the most PRESSING MATTER facing our country this morning, at least if we are to believe what the Talking Thought Guidance Counselors on the Cathode Slave Box are telling us?

Standing in line at the Apple Store to get ones hands on the latest geewizmobob gadget from Mr. Jobs.

So this is how a Country Dies.

Terminal Idiocracy.

God Bless America.

The Market closed up 200 Points today.

I miss reality.

I really do.

---

Funny - this picture appeared when I googled "stupid white men":

But seriously ozy, have you EVER seen anything like this?

The cognitive dissonance to what is going on is INCREDIBLE.

Seriously.

the first time I saw it.

From the narrative: "... Scientific Research had focused on Hair Restoration and Erectile Dysfunction..."

Ahahahaha! Too funny... But, uh... Y'know, like sad and stuff too, man.

With one presidential candidate within 8 points of starting another war abroad.

...
The disaster scenarios

The Federal Reserve and the Treasury have taken great pains to point out that the government is not obligated to bail out either Fannie or Freddie if they face insolvency.

It's debatable where the legal obligations lie, but as a practical matter, the government can't let these institutions fail because they are being counted up on to help fix the mortgage mess. If Fannie and Freddie were unable to buy and back loans, banks would stop originating them and the pool of homebuyers would shrink, causing home prices to fall even further.

....

So what would force the Treasury and Fed to step in?

Fannie and Freddie are among the most highly-leveraged companies around, meaning the amount of capital they have on hand is nowhere close to the level of assets they control.

Fannie and Freddie must constantly borrow money in order to operate; if for any reason borrowing costs rose sharply they would not be able to make good on their guarantees or even fund their day to day operations. This is when the government would feel intense pressure to step in and, at the very least, pay contracts in a timely manner.

In an April report, Standard & Poor's said an Armageddon scenario whereby Fannie and Freddie are insolvent is unlikely, but that the mere possibility of failure at either is a greater threat to the economy than the actual collapse of any investment bank.

http://money.cnn.com/2008/07/09/news/companies/benner_f...

Unless Fannie and Freddie miraculously find a way to become solvent, this may be the one event we look back on years from now and say: "That was the catalyst."

Congress will be out for their summer recess soon, out campaigning for their re-elections or on "fact-finding" trips to Aruba and the Marianas. The Chimp, oblivious to everything will be drunk down in Crawford for at least a month.

Maybe I'll head down to Costco this morning and increase my hurricane season supplies.

http://www.marketwatch.com/news/story/fannie-freddie-sh...

BOSTON (MarketWatch) -- Shares of mortgage giant Fannie Mae fell more than 50% in pre-open trade Friday, and cousin Freddie Mac dropped nearly as much, as investors increasingly believe the firms which made the American dream of home ownership possible for millions will need to be bailed out by the U.S taxpayer.

Fannie shares (FNM: 13.20, -2.11, -13.8%) fell 52%, to $6.35, and Freddie (FRE: 8.11, -2.15, -20.9%) shed slipped 44%, to $4.47.

Senior Bush administration officials are weighing a plan that would see the government take over one or both of the companies if a recent deluge of problems worsen, the New York Times reported Friday.

The report followed several similar reports this week in other publications.

"Our own very superficial and glib take (on a possible bailout) is that if the government bails out Bear they most assuredly would back Freddie/Fannie which already has the implicit guarantee -- the next step seems relatively easy," David Ader, a U.S. government bond strategist at RBS Greenwich Capital said in a note to clients early Friday.

The debt of Fannie and Freddie rose sharply Friday morning as buyers swooped into the market amid growing speculation that the U.S. government will backstop the struggling companies.

Agency debt with five-year maturities saw the biggest gains in early New York trade, with the premiums demanded by investors falling as much as 14.7 basis points over Treasurys on the Freddie Mac 3.75% note due on June 2013, according to TradeWeb.

...more...

http://money.cnn.com/2008/07/11/news/companies/fannie_f...

NEW YORK (CNNMoney.com) -- The growing anxiety over Fannie Mae and Freddie Mac escalated on Friday as shares of the mortgage finance giants plunged in pre-market trading.

About 45 minutes before the market open shares of Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) were both off nearly 50% from their already battered close on Thursday.

In the first four trading days of the week, the shares of Fannie have lost 30% of their value, while Freddie shares have tumbled 45%. For the year, Fannie is down 67% and Freddie 77% through Thursday's close.

The two firms own or back more than $5 trillion of home mortgages and are a crucial source of funding for banks and other home lenders looking to make additional loans. If they were unable to do so, it would significantly raise the cost and availability of mortgage loans, causing significantly more problems for already battered housing prices and sales.

The New York Times reported Friday that senior Bush administration officials are considering a plan to have the government take over one or both of the companies if their problems worsen.

The Wall Street Journal reported a number of scenarios it said are being discussed by bankers and analysts to deal with investors' current crisis of confidence in the firms, including possibly having the Federal Reserve purchasing some of their debt or mortgage-backed securities, having the Fed make large, 10-year loans to the companies or even having the Treasury buying stock in the companies.

...more...

Where is the leadership to make the hard and unpopular decisions so that millions of citizens are spared?

They are all looking for decisions that will spare the big money shareholders--not the customers, not the bystanders, just themselves. And they can't find one. Not a single one.

So do they panic? No, just write it off against profits.

One of these hits uncomfortably close to home for me.

Sun Microsystems - national - 1000 jobs


Hartford Public Schools - Hartford, CT - 85 jobs


The Columbian Newspaper - Washington state - 20 jobs


Intermec and Terex Corp. - Seattle, WA - 380 jobs lost total


Pinellas County law enforcement - FL - 25 jobs lost


Motor Coach Industries - Pembina, ND - 40 jobs lost


City of Atlanta - 165 jobs potentially lost


Mannatech - Coppell, TX - 60 jobs lost


By the way, for those who are interested, I found a great resource that summarizes weekly layoffs:
http://www.costar.com/News/Article.aspx?id=FB8706672317...
It's comprehensive and very informative.

As a fellow teacher, those job cuts do hit me in the gut too. That symbolizes a totally nutso sense of priorities.

Plus city services in Atlanta, my fair city are cut. Atlanta's taxes are so high as to make one dizzy. Yet the city functions so poorly. Where does the money go?

is that I've assumed that the teaching profession would be relatively immune to a downturn. It looks like I may have been mistaken.

* should always be associated with red - all of his failed businesses, his failed Residency, and the blood of more than a million people in Iraq

that is mind-blowing

MUNICH (Thomson Financial) - Siemens AG. is planning to compile the lists of all employees affected by the company's wide-ranging job cuts by the end of August, a Siemens spokesperson said, confirming statements made in a company presentation.

Siemens (nyse: SI - news - people ) announced last week it plans to cut 16,750 jobs worldwide, with 5,250 jobs to be slashed in Germany.

Worldwide, the company employs about 420,000 people, 130,000 of whom work in Germany.

Siemens said it is planning to cut some of the jobs via transfer companies, part-time pre-retirement schemes as well as via internal and external job placements, training programmes for further job qualification and severance packages.

http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/...

As I said in an earlier post, taking over Fannie and Freddie has been the plan all along for the Bush Administration. They have been planning this since at least March. Coincidentally, I have confirming evidence now. The New York Times reports that they are unveiling this plan for a bailout now.

They are only doing so because market events dictate it. In the wake of the Lehman Brothers analysis suggesting $75 billion in additional capital is needed at the two GSEs there is no choice but to deploy the secret plan.

I find it an ironic coincidence that the report comes from Lehman Brothers. Lehman was saved in part by the GSEs' having provided liquidity to the mortgage markets since March. In another ironic twist, the resulting market turmoil might send Lehman to the wall as well.



This is a very palatable way out from a political perspective, because it helps do an end run around on some of the mortgage bailout chatter. In addition, the Bush administration can get credit for tackling the problem. They also get to offer a backdoor bailout to mortgage companies and homeowners at taxpayer expense without having to explicitly do so.

http://www.creditwritedowns.com/2008/07/federal-takeove...

You already have a market pool going for when the Dow reaches parity (parody?) with its 2001 numbers when * was installed, but have you thought about a second pool to see when he takes wing and heads for Paraguay when pool number one sadly becomes a reality?

I imagine Bush would take flight before the discovery process proceeding the trials. But I'm not holding my breath - too much calculus.

there won't be any trials - congress doesn't have the balls to do it this year

if (heaven forbid) mccain wins - he'll award the bushies the medal of freedom

if it's Obama - the talking point will be that it's more important to focus on the future and unite the country rather than focusing on the past and further dividing the country

Considering we ignore the fact the Dow went down to somewhere in the 7 - 9,000's in late 2002 - early 2003.

08:30 am : S&P futures vs fair value: -16.6. Nasdaq futures vs fair value: -25.8.
Stocks remain in position for a negative start. The May trade balance totaled a $59.8 billion deficit. Economists expected a trading deficit of $62.5 billion. The June import price index climbed 2.6% month-over-month, which is even with the increase registered in May and more than the 2.0% increase economists were expecting. Year-over-year, the June import price index showed 20.5% increase, though economists were expecting an 18.6% increase and the May index showed an 18.8% increase.

08:00 am : S&P futures vs fair value: -14.0. Nasdaq futures vs fair value: -21.2.
Stock futures indicate a downward open to Friday's trading session. General Electric (GE) announced quarterly earnings results that matched the consensus estimate, generating $0.54 per share. The company also provided an in-line outlook. Shares of Fannie Mae (FNM) and Freddie Mac (FRE) are down in premarket action after reports suggested the government is considering taking over the lenders if their problems worsen. Oil prices are climbing, adding to early pessimism.

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

Last trade 72.203 Change -0.290 (-0.40%)

Another Big Surprise for the Dollar

http://www.dailyfx.com/story/bio1/Another_Big_Surprise_...

The currency market was fairly quiet today with the US dollar rallying against some currencies and falling against others. Jobless claims were the only piece of data released and filings for unemployment dropped by 58k to the lowest level in 3 months. The goods news however was shrugged off by the markets because the data is distorted by seasonal shutdowns in auto plants. This happens every summer in the month of July and lasts for about two weeks. According to the Labor department, their seasonal adjustment formula prices in auto layoffs in the first 2 weeks of July and fewer occurred last week than expected. Excluding the seasonal adjustment, claims actually increased by 30k while continuing claims rose by 91k. With companies such as Starbucks, Citigroup and Air Tran announcing layoffs in the past month, the labor market will worsen before it improves. Despite the bad news, the US dollar may be in for a big surprise. A difficult labor market, the decline in the stock market and the rise in food and energy prices are expected to force US consumers to reduce spending. However judging from the monthly reports from retailers, consumer spending may not be that bad. Discounters like Wal-Mart, Costco and Target all reported stronger sales in the month of June as consumers continue to spend their tax rebates. If retail sales remain positive, the US economy may avoid double dipping, which would be a nice surprise for the US dollar. Fannie Mae and Freddie Mac’s potential solvency problems were the biggest news in the financial markets today. They are too big to fail and we believe that the US government will exhaust their options before allowing this to happen because preventing or mitigating future crisis is Bernanke and Paulson’s top priority. Fed President Yellen even said today that the Fed has the potential to further ramp up facilities if needed. Meanwhile the US trade balance and consumer confidence reports are due for release tomorrow. The rise in the export component of the manufacturing ISM report suggests that the trade balance will improve, but any dollar rally could be offset by the consumer confidence report which will be released shortly thereafter. More strain on the US economy should lead to weaker consumer confidence.

...more...

Carry Nears A Breakout As Earnings Gear Up And Credit Fears Rise

http://www.dailyfx.com/story/special_report/special_rep...

While the DailyFX Carry Trade Index was modestly higher over the past week, the strategy (and overall risk sentiment) is on the verge of a breakout with earnings season kicking off and signs of a deepening financial crisis popping up all over the market. Today, the carry index stood at 28,935 – 101 points above last Friday’s level. However, looking at the chart below, it is easy to grasp the pressure building behind an inevitable break in the market’s cautious stance. Since May, the basket has cut an ascending wedge with a horizontal resistance around 29,050. Perhaps offering a bias for the eventual trend development, market condition indicators are actually working their way lower despite improvements seen this past week. USDJPY risk reversals corrected considerably from its highest levels since last October and the volatility index is holding above the critical 10 percent figure.

The rebound in risk appetite seen from the March swing low has been slowly curbed by various signs that credit conditions and a lack of liquidity are still burdening the financial markets. Recently, a Bank of England credit report forecasted that the credit market – the life blood of investment – would worsen through the third quarter. Such a forecast is troubling considering European banks are paying the highest prices in a decade to raise capital just to meet reserve requirements, while the governmentally sponsored Fannie Mae and Freddie Mac in the US are paying record yields in their own efforts to fortify reserves. In the weeks ahead, speculation that these two lenders may require a government bailout or face bankruptcy will help to define the overall direction of risk trends; and the debate is lively. St. Louis Fed President William Poole has suggested the government step in now as the companies are essentially insolvent. Another driver for risk trends and the carry trade will be banks’ second quarter earnings numbers, which start to hit the wires next week.



...more...

We've heard from oh-so-many people how whisper campaigns have brought down so many firms like Bear Stearns (BSC) and Indy Mac (IMB) and Fannie (FNM) and Freddie (FRE) and now Lehman Brothers (LEH).

Why is it that all these rumor-mongerers and shorts are only bringing some firms to their knees? How come they always seem to be the over-leveraged, under-capitalized, unhedged, most poorly-managed companies? Isn't it funny that all of the firms that are the subject of such rumors have so many similar characteristics? Bear and Lehman and Fannie Mae and Freddie Mac and AIG and . . . the list goes on and on.

Why is it never the firms with strong balance sheets, good business models, making lots of profits? Why aren't we terrified that these powerful shorts go after Intel (INTC) or Google (GOOG) or Apple (AAPL) or Berkshire (BRK) or GE or Exxon Mobil (XOM)?

Or is that merely a funny and unexplainable coincidence?

According to Jamie Dimon, a whispering campaign can bring down a firm. Vanity Fair blames shorts and CNBC. If that's true, why not go short Bear AFTER it fell 100? Why not go after a really big firm, with lots of room on the downside to make even more money? Perhaps an alternative explanation is in order.

http://bigpicture.typepad.com/comments/2008/07/about-th...

I mean today.

meltdown in banking

meltdown in mortgage securities

meltdown in bonds

meltdown in real estate

GE profits are down

only discount merchants show growth - and then they're only selling essentials

hard to find good news today

Dow 11,066.02 163.00 (1.46%)
Nasdaq 2,223.81 34.04 (1.51%)
S&P 500 1,240.41 12.98 (1.04%)
10-Yr Bond 3.817% 0.006

NYSE Volume 160,701,687.5
Nasdaq Volume 54,280,496.094

edited to add the following:

if the market was down 163 at 9:33 and down 74 at 9:36

9:36

Dow 11,074.49 72.95 (0.65%)
Nasdaq 2,222.90 34.95 (1.55%)
S&P 500 1,235.59 17.80 (1.42%)
10-Yr Bond 3.821% 0.01

NYSE Volume 215,900,953.125
Nasdaq Volume 77,787,515.625

why is the Dow on 8 points different?????

Something is terribly wrong with this picture.

editing again - show the 9:41 numbers

Dow 11,060.57 168.45 (1.50%)
Nasdaq 2,225.31 32.54 (1.44%)
S&P 500 1,234.96 18.43 (1.47%)
10-Yr Bond 3.823% 0.012

NYSE Volume 289,885,031.25
Nasdaq Volume 115,750,554.688

and to say:

this is too weird for me

Dow 11,074.49 72.95 (0.65%)
Nasdaq 2,222.90 34.95 (1.55%)
S&P 500 1,235.59 17.80 (1.42%)
10-Yr Bond 3.821% 0.01

NYSE Volume 215,900,953.125
Nasdaq Volume 77,787,515.625

If you've been watching the charts all week, you've got whiplash.

http://finance.yahoo.com/q?s=FRE

4.42 a share

hot potato!

http://finance.yahoo.com/q?s=FNM

7.71

http://finance.yahoo.com/q?s=LEH

15$

http://finance.yahoo.com/q?s=MER

9:53
Dow 11,096.64 Down 132.38 (1.18%)
Nasdaq 2,231.83 Down 26.02 (1.15%)
S&P 500 1,240.68 Down 12.71 (1.01%)
10-Yr Bond 3.809% Down 0.002
NYSE Volume 462,334,593.75
Nasdaq Volume 181,640,718.75

09:15 am : S&P futures vs fair value: -14.0. Nasdaq futures vs fair value: -20.8. The opening bell will sound shortly and stocks remain in position for a start in negative territory. Premarket sentiment has been consistently pessimistic.

09:00 am : S&P futures vs fair value: -16.5. Nasdaq futures vs fair value: -22.0. Stock futures continue to indicate a downside open for the week's final trading session. The Wall Street Journal has reported InBev is now offering to acquire Anheuser-Busch (BUD) for $70 per share, topping its initial bid of $65 per share. Oil has climbed above $146 per barrel in early electronic trading.

Spain Implodes, UK Home Slide Most Since Great Depression

Data from everywhere is pouring in at a fast pace. Almost all of it is horrid. Let's start with a look at Europe where Spain pulls bond sale amid economic crisis.


The treasury pulled an expected sale of 15-year bonds after probing the market informally, saying it would wait until credit conditions began to calm down. "We are not facing financing problems. We placed a successful three-year note on Wednesday," said a spokesman.

Government officials have been shocked by the intensity of the downturn now engulfing the country. Car sales fell 31pc in June, industrial production has fallen 5.5pc over the past year and the collapsing property sector is shedding almost 100,000 jobs a month.

Miguel Sebastian, the industry minister, said the economy had ground to a halt in the second quarter and was now in "virtual recession".
Worst Slide Since Great Depression

In the UK the Slide in house prices is the worst since the Great Depression.

Britain is now in the midst of the worst housing slide since the Great Depression, economists declared after house price inflation dropped to the lowest level since comparable records began.

Figures from Halifax, the UK's biggest mortgage lender, showed house prices have fallen by 8.7pc in the year to June, confirming that the property crunch is more severe than the last housing crash in the early 1990s.

House prices have never fallen by more than 10pc over a year in recorded history, except in 1931, when Britain left the gold standard.

The Bank of England reported recently that the number of mortgages being approved for housing purchases dropped to 42,000 in May - the lowest level since comparable records began in 1993 and down 64pc on the previous year.

Prof Goodhart, now at the London School of Economics, said: "Output is going to fall, unemployment is going to rise, possibly quite sharply. It's a horrible situation. "The British economy is getting into quite a recession. I remember when the Queen had an 'annus horribilis,' and this is the annus horribilis for the MPC.
Bankers Want More Help

In a repeat of what is happening in the US, UK Bankers want more help from Bank of England.

Senior figures from the UK's biggest banks will today lobby the Bank of England to widen the terms of the special funding scheme launched in April to bring liquidity back to the financial sector. The bankers will argue that the Special Liquidity Scheme (SLS) has not done enough to restore confidence among banks, leading to them to remain cautious about lending money to each other and to customers.

The Bank may also be resistant to widening the terms of the SLS. The Bank's Governor, Mervyn King, has repeatedly warned of the "moral hazard" of financial institutions generating business without having proper concern about the risk of writing it at any price.
Britain Condemned For Flagrant Breach Of EU Spending Rules

The Telegraph is reporting Britain faces EU action over budget deficit.

European Union finance ministers have voted to condemn Britain for flagrant breach of the Maastricht spending rules, irked that the UK government has not even tried to keep its budget deficit below the treaty limit of 3pc of national income.

By its own admission, Labour will need to borrow at least 3.2pc of GDP this year, even if the economy holds up well. Brussels described this as "prima facie evidence of a planned excessive deficit". It warned that UK public finances were no longer on a sustainable course after the spending blitz of recent years.

Yesterday's vote is the first time the EU has launched disciplinary action against a big Western state under the revamped Growth and Stability Pact. While France and Germany both violated the old pact, they did so at the bottom of the dotcom mini-slump.

Britain's sins are more serious. The breach has occurred at the top of the cycle when tax revenues should be at their peak. Brussels said there had been a "deterioration of the structural balance of 4.5pc of GDP" since 1999. Brussels said Britain did not qualify under the "exceptional" circumstances clause.

The UK now has the worst fiscal profile of any developed country in the North Atlantic sphere.
UK Homebuilders Axe 40% Of Staff

The housing gloom is spreading as Bovis Homes and Redrow axe 40% of staff.

Bovis Homes and fellow housebuilder Redrow both said this morning that they plan to make 40pc of their staff redundant as the British public continues to put off buying new homes.

Bovis is cutting 400 jobs and this morning described the current market as "the worst backdrop the group has seen for many years", while 500 jobs will go at Redrow, which said that the pace of the downturn in the UK market was "unprecedented".

Bovis revealed the number of homes it sold in the first six months of the year fell by 32pc, and conceded that it was impossible to predict by how much house prices would fall.

Yesterday Persimmon, the UK's largest housebuilder, said that it was laying off 1,100 people - 22pc of its workforce. Last week, Taylor Wimpey said that it was wiping £660m off the value of its land holdings, in recognition of the fact that it is worth a lot less now compared with this time last year.
US Foreclosures Rise 53%

On this side of the ocean, Foreclosures Rose 53% in June, Bank Seizures Tripled.

U.S. foreclosure filings increased 53 percent in June from a year earlier and bank seizures rose the most on record as deteriorating property values and higher rates on adjustable mortgages forced more people to give up their homes.

More than 252,000 properties, or one in 501 U.S. households, entered a stage of the foreclosure process, RealtyTrac Inc., a seller of default data, said today in a statement. Bank seizures rose 171 percent, the most since the Irvine, California-based company began tracking statistics on default notices, warnings of a scheduled auction and repossessions in January 2005.

"The foreclosure problem is getting worse and will stay with us well into the next decade," Mark Zandi, chief economist for Moody's Economy.com in West Chester, Pennsylvania, said in an interview. "The job market is eroding and homeowners have less equity. Lenders are much less willing to work with you if you've got negative equity, and you're more likely to give up your house if you're deeply underwater."

Foreclosure activity is the highest since the Great Depression of the 1930s, said Rick Sharga, RealtyTrac's vice president of marketing. Home prices, which fell the most on record in April, according to the S&P/Case-Shiller index of 20 U.S. metropolitan areas, have created a cycle where shrinking equity drives homeowners into foreclosure, which in turn further pushes down home prices, Sharga said.

"We'll have 1 million bank-owned properties by the end of the year," Sharga said in an interview. "That will represent between one-fourth and one-third of all home sales."
There are only two words that can describe what is happening and both begin with a "D".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Though it is pretending to be a capitalist system. It is soviet-style through: central economic planning; merger of state and corporate power; fiat currency based on faith; bald-faced lying on national economic statistics...

What can you think of that makes our system so similar to the Soviet model?

state capitalism with massive amounts of govt expenditures on military costs

01. Paulson to discuss Fannie, Freddie
9:56 AM ET, Jul 11, 2008

02. Treasury Secretary Paulson to speak 'shortly'
9:55 AM ET, Jul 11, 2008

this guy has turned himself into a 'toon

sheesh!

Because that's exactly what he's going to say.

01. Paulson: Maintaining dialogue with Fannie, Freddie
10:26 AM ET, Jul 11, 2008

02. Paulson: Supporting Fannie, Freddie in 'current form'
10:26 AM ET, Jul 11, 2008

03. Paulson: No bailout of Fannie, Freddie on horizon
10:26 AM ET, Jul 11, 2008

They sank by 60 pts. after the news.

http://globaleconomicanalysis.blogspot.com/2008/07/stev...


Steve Forbes On The Economy


Here is Steve Forbes at Freedom Fest.

VIDEO

Forbes' Thoughts


The US economy will show real growth in the second half because of low inventories.
There is plenty of liquidity out there even though a lot of it is frozen.
The rest of the world is starting to get it right.
In terms of investments we are on the cusp of a real era of innovation.
Right now I would take a bundle or package of financial institutions and buy them.

This is a classic: "There is plenty of liquidity out there even though a lot of it is frozen."

My Thoughts

The US recession picks up steam in the second half.

The world economy is going to slow.
Inventories are going to skyrocket along with unemployment.
Financials are not going anywhere except for a possible dead cat bounce.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

We're All Homeowners Now, Nationalization of Fannie, Freddie Unavoidable


Yesterday Freddie Mac, Fannie Mae Plunged on Capital Concerns.


Freddie Mac fell 18 percent and Fannie Mae dropped 16 percent after Lehman Brothers Holdings Inc. analysts said in a report today that an accounting change may force them to raise a combined $75 billion. Speculation that the companies may take further writedowns also weighed on the stock, said John Tierney, a credit strategist at Deutsche Bank AG in New York.

The new FAS 140 rule that seeks to stop companies keeping assets in off-balance sheet entities may force Fannie Mae and Freddie Mac to bring mortgages back onto their books, requiring them to put up capital, Lehman analysts led by Bruce Harting wrote in a note to clients today.

Fannie Mae would need to add $46 billion of capital and Freddie Mac would need about $29 billion, the Lehman analysts wrote.
Lie of the Day

Unsurprisingly, the lie of the day today is Fannie, and Freddie are Adequately Capitalized.

Mortgage financiers Fannie Mae and Freddie Mac are adequately capitalized and continue to be active in the mortgage market, said James Lockhart, director of the Office of Federal Housing Enterprise, which regulates the two enterprises.

"Both of these companies are adequately capitalized, which is our highest criteria," Lockhart said in an interview with CNBC. "They have been very active in the mortgage market, and they are continuing to be. And, in fact, Congress has put on them the requirement to do jumbo mortgages and they have been doing those as well."
Fannie Mae holds or guarantees over $5 trillion in mortgages. A mere 1% decline would wipe them out. Is that adequately capitalized? I do not think so and neither does Minyanville's Kevin Depew.

We're All Homeowners Now

Here are two video links on the impending nationalization of Fannie Mae.

We're All Homeowners: Nationalization of Fannie, Freddie Unavoidable

DepewTube: Nationalizing Fannie and Freddie

"Fannie Mae and Freddie Mac are not adequately capitalized even if the housing market turned around today. And it's not going to turn around today".

Separately Bloomberg is reporting Freddie, Fannie Don't Need More Capital, Ofheo Says.

"It concerns me that people sort of extrapolate well beyond what the facts are," Lockhart said. "Fannie and Freddie are continuing to do their job in the marketplace. They were created for just this type of marketplace and they are continuing to fulfill their function."

Fannie Mae and Freddie Mac, created by Congress to increase homeownership, have become one of the few avenues for new mortgage financing as competitors scaled back last year amid record increases in delinquencies and defaults. Their share of the conforming mortgage market, or new loans of $417,000 or less, almost doubled to 81 percent in the first quarter.
Fannie Mae Has Failed Its Mission

The second lie of the day is that "Fannie and Freddie are continuing to do their job in the marketplace." Nothing could possibly be further from the truth.

There is a rock solid Case for Abolishing the FHA and GSEs for many reasons. Here are some of them:

Fannie Mae has failed to help make housing affordable (its primary mission)
Fannie Mae's CEO was forced out in disgrace
Fannie Mae and Freddie Mac were both involved in multi-year derivative scandals where they had no idea what their derivative books ever were.
Government sponsorship of housing is absolutely guaranteed to drive up prices (until things implode as they did in the US).
And most importantly the government has no business promoting housing over renting for any reason. Such promotion causes bubbles and the biggest bubble in history is now imploding. If ever there was a complete model of precisely what not to do, the US government sponsorship of Fannie Mae and Freddie Mac would surely be on the list.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

http://globaleconomicanalysis.blogspot.com/2008/07/were...

And all that comes to mind is New Orleans, post-Katrina.

for me, it was that Cooper Anderson stood in the middle of the street and started yelling.

10:04
Dow 11,144.75 Down 84.27 (0.75%)
Nasdaq 2,236.92 Down 20.93 (0.93%)
S&P 500 1,245.93 Down 7.46 (0.60%)
10-Yr Bond 3.821% Up 0.01
NYSE Volume 621,476,437.5
Nasdaq Volume 265,451,937.5

09:45 am : Stocks opened deep into negative territory. All three of the major indices are trading with losses in excess of 1.0%.

Selling pressure is broad-based, but primarily concentrated in the financial sector. Eight of the ten sectors are down more than 1.0%. Financials are down a hefty 2.8%, more than any other sector.

Oil is currently trading 3.3% higher, near $146.30 per barrel. Oil's rise has given support to the energy sector (+0.4%), which is the only economic sector posting an advance.DJ30 -137 NASDAQ -29 SP500 -14 NASDAQ Adv/Vol/Dec 458/123 mln/1759 NYSE Adv/Vol/Dec 409/111 mln/2260

The Dow's back down 175 pts.

Due to record oil prices, can't afford to import any more Chinese fairy dust.

Only thing left for them to do, is cash out and get a plane ticket, leaving their successors to face the angry pitchfork and torches mob.

AP
Dollar down against the euro at US$1.5940
Friday July 11, 10:06 am ET
Dollar falls against the euro as US trade gap narrows, mortgage crisis worries grow


FRANKFURT, Germany (AP) -- The U.S. dollar fell sharply against the euro, as fears continued that the entities that underpin the U.S. mortgage market may fail.
The 15-nation euro bought $1.5940 in afternoon European trading, up from the $1.5783 it bought in New York late Thursday.

The British pound climbed higher, too, buying $1.9930, above the $1.9775 it bought late Thursday

http://biz.yahoo.com/ap/080711/dollar.html?.v=4

http://money.cnn.com/news/newsfeeds/articles/djf500/200...

sell off part of its financial services?

Didn't I read about it up-thread?

Tell me I'm losing it. tell me I'm crazy. tell me I've lost my fucking mind, because that would be better than acknowledging it's the whole U.S. economy that's gone totally bonkers.

http://www.reuters.com/article/ousiv/idUSTKG00318520080...

TOKYO (Reuters) - General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) will sell its Japanese consumer finance operation to Shinsei Bank Ltd (8303.T: Quote, Profile, Research, Stock Buzz) for $5.4 billion, concluding a year-long effort to pull out of consumer lending in Japan.

GE has been looking to shed assets globally amid calls from analysts and investors to simplify its vast operations which range from jet engines to media. Also, changing regulations have eroded profits in Japan's consumer lending sector.

The U.S. company said on Thursday it will look to spin off to shareholders its entire consumer and industrial unit, signaling it wants to part with a large part of its portfolio, not just the $7 billion appliance arm it has been looking to sell.

<snip>

Ratings agency Standard & Poor's put the bank on credit watch with negative implications, meaning that the deal was likely to have a negative impact on the bank's credit quality.

<snip>

"Profitability will never be as good as it used to be, therefore volume is critical."

Consumer lenders have seen their profits slide after Japan's parliament approved a law to lower the maximum interest rate they can charge. The regulations will go into effect by 2009, and moneylenders have already lowered their rates in anticipation.

They have also been forced to repay previous interest that is now deemed illegally high.

...more...

looks like they dumped it 'cause they couldn't be usurious anymore

"looks like they dumped it 'cause they couldn't be usurious anymore."

How could I have made such a stupid mistake? I shoulda known that in the new booooooosh world of fundamentalist xtian economy, it's the wives that are s'posed to be subservient and submissive to the husbands, not the other way around! What was GE thinking? I'm glad they got rid of that awful business. Maybe now they'll get their wives in line and stop being so fond of them.



















Oh, you mean usurious? As in charging criminally and immorally outrageous rates of interest? I thought you meant UXORIOUS!!!!!!!!!!!!















Tansy Gold, aka Emily Litella (for those who are old enough to remember.....and need a chuckle today)

Last Trade Change Volume Related Info
FRE FREDDIE MAC 4.50 9:59AM ET 3.50 (43.75%) 50,188,864 Chart, Profile, More
FNM FANNIE MAE 8.55 9:59AM ET 4.65 (35.23%) 52,650,936 Chart, Profile, More
FNA FEDERAL NTL MTG PFD 19.71 9:56AM ET 8.34 (29.73%) 571,796 Chart, , More
FRE-PS FED HOMELN PFD 24.80 9:58AM ET 0.70 (2.75%) 622 Chart, , More
FRE-PW FEDERAL HOME LN MTG 12.79 Jul 10 0.00 (0.00%) 0 Chart, , More
NWFL NORWOOD FIN CORP 20.03 Jul 2 8.56 (29.92%) 3,200 Chart, Profile, More
FRE-PV FEDERAL HOME LN MTG 7.92 9:46AM ET 4.98 (38.60%) 900 Chart, , More
FRE-PZ FREDDIE MAC PFD Z 14.00 9:59AM ET 3.60 (20.45%) 2,145,950 Chart, , More
CVLL COMMUNITY VALLEY BNC 6.7201 9:37AM ET 2.6599 (28.36%) 2,346 Chart, Profile, More
FNM-PQ FED NTL MTG SER Q 12.25 9:54AM ET 3.72 (23.29%) 6,100 Chart, , More
FNM-PI FANNIE MAE 5.375 I 19.76 9:54AM ET 6.99 (26.13%) 2,000 Chart, , More
QSND QSOUND LABS INC 1.56 9:30AM ET 0.09 (5.45%) 100 Chart, Profile, More
FRE-PY FEDERAL HME 6.55 PF 11.69 9:55AM ET 2.81 (19.38%) 2,500 Chart, , More
FRE-PL FREDDIE MAC VAR RTS 17.85 9:52AM ET 3.90 (17.93%) 2,000 Chart, , More
FRE-PF FED HOME LN MTG 5.0 17.00 9:55AM ET 6.00 (26.09%) 4,100 Chart, , More
FNM-PN FEDERAL NATL PFD N 29.00 Jul 10 0.00 (0.00%) 0 Chart, , More
FNM-PH FANNIE MAE 5.81% H 28.25 Jul 10 0.00 (0.00%) 0 Chart, , More
FNM-PT FEDERAL NATL PFD T 14.20 9:59AM ET 4.83 (25.38%) 499,950 Chart, , More
FNM-PL FED NATL MTG PFD L 18.00 9:54AM ET 6.14 (25.43%) 500 Chart, , More
FNM-PR FANNIE MAE PFD R 14.70 9:56AM ET 4.57 (23.72%) 18,700 Chart, , More
XFH LEHMAN ABS 8.20 MOTO 14.24 9:54AM ET 3.34 (18.99%) 12,400 Chart, , More
FRE-PH FREDDIE MAC 5.10 PFD 22.40 9:48AM ET 3.50 (13.51%) 200 Chart, , More
EUBK EUROBANCSHARES, INC. 2.96 Jul 10 0.00 (0.00%) 0 Chart, Profile, More
FNM-PF FANNIE MAE PFD F 13.00 9:36AM ET 4.85 (27.17%) 1,400 Chart, , More
FNM-PS FANNIE MAE PFD S 14.28 9:59AM ET 3.74 (20.75%) 4,452,317 Chart, , More
http://finance.yahoo.com/losers?e=us

July 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers' votes of confidence failed to halt speculation that the stock may drop further.

Lehman, once the biggest U.S. underwriter of mortgage bonds, fell 40 cents, or 5.2 percent, to $16.40 before the official open on the New York Stock Exchange. Shares of the New York-based investment bank have lost 24 percent this week.

Yesterday's speculation centered on two clients backing away from the firm. Pacific Investment Management Co., manager of the world's biggest bond fund, and hedge fund SAC Capital Advisors LLC both said publicly that they continued to do business with the company. Pimco fund manager Bill Gross said in an interview with CNBC that there's ``no question'' about the firm's solvency.

....

About 70.3 million shares, or 10 percent of Lehman's outstanding stock, were sold short by investors as of June 30, compared with 37 million at the start of the year, the New York Stock Exchange said yesterday.

....

Lehman said in a filing last night that its Tier 1 ratio, a measure of capital adequacy, was 10.7 percent, while its total risk-based capital ratio was 16.1 percent at the end of second quarter. That compares with 10.8 percent Tier 1 ratio and 14.2 overall ratio at Goldman Sachs Group Inc., the largest securities firm. U.S. securities firms are revealing their capital ratios for the first time under new Securities and Exchange Commission regulations.

http://www.bloomberg.com/apps/news?pid=20601084&sid=a2h...

"We've already worked overtime one week-end this year, and it will just have to wait until next week".

Dow 11,037.77 191.25 (1.70%)
Nasdaq 2,227.71 30.14 (1.33%)
S&P 500 1,233.29 20.10 (1.60%)
10-Yr Bond 3.867% 0.056

NYSE Volume 966,985,750
Nasdaq Volume 452,736,562.5

By Mark Shenk

July 11 (Bloomberg) -- Crude oil rose more than $5 a barrel to a record on concern that Israel may be preparing to attack Iran as a strike in Brazil and renewed militant activity in Nigeria threaten to cut supplies.

Oil jumped as high as $147.27 a barrel in New York after the Jerusalem Post said Israeli war planes practiced over Iraq. A Brazilian union said it plans a five-day strike and Nigerian militants pledged to renew attacks on oil facilities. Prices have jumped more than $10 a barrel in the past two days.

``The Iran premium has come into the market over the last two days,'' said Adam Sieminski, Deutsche Bank's chief energy economist, in Washington. ``Nothing has changed except the perception about whether there will be a deal between the U.S. and Iran. The possibility of a conflict is of tremendous concern to the market.''

Crude oil for August delivery rose $5.37, or 3.8 percent, to $147.02 a barrel at 9:33 a.m. on the New York Mercantile Exchange. The previous record of $145.85 a barrel was reached on July 3. Futures have more than doubled over the past year.

The gain in prices has triggered computer-generated buying programs. Futures tumbled 6.4 percent on July 7 and 8, the biggest two-session decline since March.

``We had a nice correction earlier this week, found support in the $133-to-$135 level, held there for a short while and then took off,'' said Tom Bentz, a broker at BNP Paribas in New York. ``With all the programmed buying, the market can take off in a heartbeat. The market has become more technical than ever because of the electronic trading programs.''

Israeli Maneuvers

Israeli war planes are conducting maneuvers in Iraqi airspace and using U.S. airbases in the country, possibly preparing for a strike against Iran, the newspaper reported, citing comments by Iraqi officials in local media. Israeli government spokesman Mark Regev denied the report.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aoG...

http://www.ny.frb.org/markets/omo/dmm/temp.cfm

and we (the people) are on the hook for every Fed note printed.

...in exchange for short term IOUs.

Trying to avert meltdown?

http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE...

Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Friday, July 11, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 1 Day 
Operation Close Time: 09:50 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	9.950	0.200		  	2.04	  
		  	2.040	  
		  	2.04	  
		  	1.95	  

Agency	12.350	2.550		  	2.05	  
		  	2.050	  
		  	2.05	  
		  	1.96	  

Mortgage-Backed	4.100	0.000		  	N/A	  
		  	N/A	  
		  	2.03	  
		  	2.00	  

Total	 26.400	  2.750	 
 
  Top 






Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Thursday, July 17, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 7 Days 
Operation Close Time: 09:40 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	23.800	11.847		  	2.01	  
		  	2.018	  
		  	2.03	  
		  	1.90	  

Agency	22.350	2.100		  	2.07	  
		  	2.070	  
		  	2.07	  
		  	1.95	  

Mortgage-Backed	13.100	0.053		  	2.10	  
		  	2.100	  
		  	2.10	  
		  	2.00	  

Total	 59.250	 14.000	 
 
  Top 






Deal Date: Thursday, July 10, 2008
Delivery Date: Thursday, July 10, 2008
Maturity Date: Thursday, July 24, 2008
Type of Operation1: Repo 
Settlement: Same Day
Term of Operation2: 14 Days 
Operation Close Time: 08:30 AM

Results	Amount ($B)	Rate (%)
Collateral Type	  Submitted	Accepted	Stop-Out3	Weighted
Average4	High	Low
Treasury	22.750	0.130		  	2.04	  
		  	2.040	  
		  	2.04	  
		  	1.80	  

Agency	17.200	4.870		  	2.09	  
		  	2.100	  
		  	2.11	  
		  	1.93	  

Mortgage-Backed	14.250	0.000		  	N/A	  
		  	N/A	  
		  	2.13	  
		  	2.03	  

Total	 54.200	  5.000	 

that's how much the 83 point gain yesterday cost the US

:shakesheadatmadness:

(edited typo on subject line)

Let's all go for a drive -- whadda-ya-say?

--p!

Expect massive debt monetization from the FRB on Monday, in an attempt to stop the inevitable. M3 growth ought to go through the roof very soon.

Two words.


BUY GOLD.

When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road
When Black Friday falls you know it's got to be
Don't let it fall on me
When Black Friday comes
I'll fly down to Muswellbrook
Gonna strike all the big red words
From my little black book
Gonna do just what I please
Gonna wear no socks and shoes
With nothing to do but feed
All the kangaroos
When Black Friday comes I'll be on that hill
You know I will

When Black Friday comes
I'm gonna dig myself a hole
Gonna lay down in it 'til
I satisfy my soul
Gonna let the world pass by me
The Archbishop's gonna sanctify me
And if he don't come across
I'm gonna let it roll
When Black Friday comes
I'm gonna stake my claim
I guess I'll change my name

Dow 11,013.42 215.60 (1.92%)
Nasdaq 2,220.04 37.81 (1.67%)
S&P 500 1,230.64 22.75 (1.82%)
10-Yr Bond 3.844% 0.033

NYSE Volume 1,708,106,750
Nasdaq Volume 718,581,812.5