STOCK MARKET WATCH, Wednesday September 3

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday September 3, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 140
DAYS SINCE DEMOCRACY DIED (12/12/00) 2782 DAYS
WHERE'S OSAMA BIN-LADEN? 2507 DAYS
DAYS SINCE ENRON COLLAPSE = 2798
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

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

AT THE CLOSING BELL ON September 2, 2008

Dow... 11,516.92 -27.04 (-0.23%)
Nasdaq... 2,349.24 -18.28 (-0.77%)
S&P 500... 1,277.58 -5.25 (-0.41%)
Gold future... 810.50 -24.70 (-3.05%)
30-Year Bond 4.36% -0.05 (-1.13%)
10-Yr Bond... 3.75% -0.07 (-1.76%)






GOLD,EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp

Scoping Out the Climate for the Next BIG Stock Market Top
BY FRANK BARBERA, CMT

Since mid-July, stocks have experienced a lot of short term volatility with the DJIA posting 13 sessions of the last 30 days with daily closes in excess of 150 points up or down. Today, was more evidence of this wild volatility with the market soaring higher at the opening and then giving back all of the gains. Since roughly mid-July 18th to present, the net gain thru last Friday's close was only a gain of 47.39 DJIA index points -- how ironic. Essentially, stocks have been riding the roller coaster up and down, but overall have really been going nowhere fast. Unfortunately, this is not a good sign in the larger outlook for stocks as very substantial oversold conditions, which had previously built up going into the lows in March and in mid-July, are beginning to unwind without the market averages having made enough progress to reverse the larger bearish tide. This type of failing price action is indicative of bear market rallies, rallies ultimately pre-disposed to roll over into even larger declines.

So let’s go through some key gauges and see where things stand. One place we usually start is with the various ARMS Indices. Also known as the TRIN, the ARMS Index measures the degree of buying pressure taking place in the market versus the amount of selling pressure. In our work, we keep several versions of the ARMS Index which can help alert us to more important Intermediate Highs and Lows. In the chart below, we show our Medium Term ARMS for 1500 stocks, compared to the S&P 500 Index. In the recent past, and as is typical in bear markets, values down near .90 or lower can indicate bear market rally peaks. By this measure, the stock market could soon be skating on thin ice as the last week or two have produced a series of readings between .85 and .90.

-chart-

Yet it is possible for this gauge to move even lower with readings in the .75 to .85 range marking historical extremes in overbought conditions. With a closer study, we noted recently that looking back over the last two decades, the recent period of time has been one of the longer periods in which the stock market was able to remain depressed and NOT produce an extreme overbought value below .75 on the Medium Term ARMS. In the chart below, we show data going all the way back to 1986, for the Medium Term ARMS in the middle clip. At the bottom, we show a Time Span Counter that counts the number of days in which the market has gone without generating such a fully overbought value below .75. At present, it is has now been 385 trading sessions without such a reading. This means that the current rally may have more time involved before stock prices are ready to roll over into the next big decline. In our view, a few more weeks is possible leading into a very important medium term peak.

....

The second indicator which I still see as fairly high is the medium term Put to Call Ratio. Thus far, this gauge has not come down very far from the upper band, an area which usually marks important bottoms. While it is possible we could see a rather dramatic swing to the downside in coming weeks, so far, the message from this gauge still suggests excessive bearishness and is decoupling rather sharply from the VIX Index, which has already come down by a very substantial degree. Current VIX Index readings are quite low, and would be a gauge in the corner of the bears. As a result, I believe the S&P will continue to maintain a largely sideways trading pattern, similar to the last few weeks with lots of volatility on both sides of the zero line. In addition, I would also expect a slightly upward bias to the price structure of the S&P which could end up peaking in the 1320 to 1340 range sometime in late September/early October. For now, it appears that stock prices will be relatively buoyant heading into the Presidential Election, but in my view could be setting up another major top a few weeks ahead of the November ballot. If my hunch is right, the downside fireworks could begin in earnest post the November outcome and trend strongly to the downside for months on end thereafter. As a final thought, I continue to focus on the Financials as perhaps the key indicator for the beginning of the next big stock market decline and so far, the ARMS Index for Financials has not yet moved to overbought values, even though it has come down tremendously from its July oversold extremes.

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

[ozymandius]

2. Today's Reports

00:00 Auto Sales Aug
Briefing.com 4.8M
Consensus NA
Prior 4.4M

00:00 Truck Sales Aug
Briefing.com 4.8M
Consensus NA
Prior 4.6M

10:00 Factory Orders Jul
Briefing.com 1.0%
Consensus 0.4%
Prior 1.7%

14:00 Fed's Beige Book

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

[UpInArms]

18. August auto sales seen down 10th straight month

http://news.yahoo.com/s/nm/20080903/bs_nm/usa_autosales_preview_dc

DETROIT (Reuters) - Automakers are expected to post a 10th consecutive month of U.S. sales declines on Wednesday as incentives on slow-selling trucks and SUVs and General Motors Corp's (GM.N) employee pricing promotion failed to ignite demand from struggling consumers in August.

Analysts see automakers posting double-digit declines in U.S. auto sales for August -- adding to the longest monthly losing streak for the industry since the domestic recession of 2001.

U.S. auto sales may have been down anywhere from 14 to 19 percent industrywide in August from a year earlier, according to analysts, but should have been up slightly from the 16-year low reported in July.

August sales are expected to reflect the continued shift toward smaller, more economical passenger cars and away from large pickup trucks and SUVs, as well as some difficulty supplying fuel efficient vehicles customers want.

U.S.-based GM, Ford Motor Co (F.N) and Chrysler LLC (CBS.UL) -- which have a much higher percentage of sales linked to the larger vehicles than transplant carmakers -- are expected to have felt the most impact from the continued shift.

Toyota Motor Corp (7203.T), the No. 2 auto seller in the United States, is also expected to report sales declines. Analysts see Honda Motor Co Ltd's (7267.T) sales ranging from a slight gain to a big decline and Nissan Motor Co Ltd (7201.T) posting sales growth of about 2 percent.

"Light vehicle sales in the U.S. appear to have continued at depressed levels through August, despite the very generous incentive programs that several major manufacturers have launched in recent weeks," Lehman Brothers analyst Brian Johnson said in a note to clients.

...more...

[UpInArms]

27. Ford U.S. sales down 26.6% to 155,690 vehicles in August

http://www.marketwatch.com/news/story/ford-us-sales-down-266/story.aspx?guid=%7B3D08DA01%2D2D16%2D4B16%2DA1F8%2DDA314894530D%7D&dist=msr_8

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. (F: 4.54, +0.03, +0.7%) on Wednesday reported a 26.6% drop in August U.S. sales to 155,690 vehicles from 212,120 a year ago. Ford, Lincoln and Mercury combined car sales fell 8.9% to 52,677 units due to a continued preference for more fuel-efficient models among consumers. Truck sales slumped 32.3% to 98,344 units with sales of the flagship F-Series pickup sliding 41.6% to 40,429 units. Volvo brand sales fell 48.8% to 4,669 vehicles. "We expect the second half of 2008 will be more challenging than the first half, as weak economic conditions and the consumer credit crunch continues," Jim Farley, vice president of marketing and communications, said in a statement.

[Ghost Dog]

48. Fed: Next President To Face Woes Plaguing Economy

WASHINGTON (AP) ― ... The Federal Reserve's new snapshot of business conditions, released Wednesday, underscored the toll the housing, credit and financial debacles are having on the economy and the challenges likely to be faced by the next president. Problems are expected to persist into next year.

...

Heading into the fall, economic activity continued to be slow, the Fed said. Businesses described the climate as "weak" or "soft" or "subdued."

Consumers, the lifeblood of the economy, showed caution. Shoppers "concentrated on necessary items and retrenchment in discretionary spending," the Fed observed.

The Fed regions of Chicago, Dallas and San Francisco, for instance, reported noticeable declines in spending on clothing, electronics and jewelry. Sales of furniture and household appliances, meanwhile, were weak in most parts of the country -- victims of the housing slump.

"Over the course of this summer it became clear that the economic headwinds have not subsided as hoped," Eric Rosengren, president of the Federal Reserve Bank of Boston, said in a speech Wednesday in New Hampshire.

"Most private forecasters are expecting significantly slowed growth in the second half of this year -- as residential investment continues to be a drag on the economy, as consumers tighten up on their spending as the impact of the federal tax rebate subsides, and as weakness among some of our major trading partners makes the outlook for many exports more restrained," he explained.

On the inflation front, many businesses and consumers felt the sting of high prices for food, energy and other things. The recent drop in oil prices from a record-high of $147.27 in mid-July does give the Fed more leeway to keep its key rate steady. Oil prices are now hovering above $108 a barrel.

And, while businesses welcomed this drop, they told the Fed that prices still remain elevated. "Business contacts in a number of (Fed) districts indicated that they had increased selling prices in response to the high costs" for certain commodities.

Workers' wage gains -- characterized as "modest" -- aren't raising inflation worries. Wary employers have cut jobs every month so far this year and aren't inclined to be overly generous in their compensation to workers amid "a general pullback in hiring," the Fed said.

The nation's unemployment rate jumped in July to a four-year high of 5.7 percent. Many economists predict the jobless rate will climb a notch higher -- to 5.8 percent -- when the government releases the August employment figures on Friday. More job losses also are expected.

The Fed's report also said that manufacturing activity was "weak or declining" in most Fed regions. Demand for housing-related goods and construction materials continued to wane. Although some manufacturers said exports were helping bolster their activity, they also noted "some recent slowing in growth from this source," the Fed said.

/... http://cbs4denver.com/business/feds.economic.forecast.2.809413.html

[Demeter]

51. They Should Quit Bragging About the Great Job They Did

somebody might pin a Medal of Freedom on them (in a very tender spot).

Heck of a job, Paulson!

[ozymandius]

3. Oil falls on global demand fears, stronger dollar

Oil prices dipped to near $108 a barrel Wednesday as the dollar continued to strengthen and attention shifted to concerns over slowing global demand for crude after Hurricane Gustav left oil installations in the Gulf of Mexico region largely undamaged.

By midday in Europe, light, sweet crude for October delivery was down $1.46 to $108.25 a barrel in electronic trading on the New York Mercantile Exchange.

On Tuesday, the contract settled at $109.71 a barrel, down $5.75 from the close of trading Friday, before the Labor Day weekend. U.S. floor trading was closed Monday. At one point Tuesday, it fell as low as $105.46, its lowest level since April.

In London, October Brent crude fell $1.30 to $107.04 a barrel on the ICE Futures exchange.

....

In other Nymex trading, heating oil futures fell 2.84 cents to $3.0452 a gallon, while gasoline prices lost 4.87 cents to $2.6850 a gallon. Natural gas for October delivery shed 9.6 cents to $7.165 per 1,000 cubic feet.

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

[Demeter]

4. Good Morning Ozy and All, and Good Luck!

I'm sure going to need it today, and no doubt it would be useful to others, too.

[ozymandius]

6. Good *cough**cough* morning.

I came down with a nasty sinus infection over the weekend. Antibiotics seem to be doing the trick. Today is the most "normal" I've felt in about a week.

I hope all's dandy in your world.

[Demeter]

8. I Think It's Looking Up

At least, I hope I'm not deluding myself...get well! As a sinus sufferer, I know exactly how you feel, poor baby. Sending you some chicken soup by email...

[Hugin]

21. Oh, maybe the cold medicine influence explains that 'toon you posted yesterday...

DemReadingDU and I still haven't figured it out... But, I imagine it's hilarious should one be on a large dose
of some cold concoction.

You've got some 'splaining to do!

I hope you get over it soon. I'm very sympathetic as I sit here amid acres of one of my all time favorite allergy
producing weeds... Super-sized by all of the moisture lately. :sniff: :achoo: :wipesnoseonsleeve:

Get well soon. :)

[ozymandius]

5. Report: KDB seeking 25 percent of Lehman Brothers

SEOUL, South Korea - State-owned Korea Development Bank has made a proposal to acquire 25 percent of U.S. investment bank Lehman Brothers for as much as 6 trillion won ($5.3 billion), a newspaper reported Wednesday.

The Chosun Ilbo, South Korea's largest mass-circulation daily, reported that KDB said in the proposal that it would buy the stake by forming a consortium with other South Korean banks and is awaiting a response from Lehman.

The paper quoted a financial source it did not identify. KDB, which was South Korea's sixth-largest bank by assets as of the end of last year, said it had no comment on the report.

The report came a day after KDB said that it was in talks with Lehman for a possible acquisition, confirming weeks of speculation over its intentions amid expectations the venerable Wall Street institution is in dire need of a capital injection.

http://news.yahoo.com/s/ap/20080903/ap_on_bi_ge/skorea_kdb_lehman

[Robbien]

9. There is a problem in the sale, Lehman hedge assets are going bad fast

Ospraie Fund, a big commodities fund partly owned by Lehman Brothers Holdings, is closing down and will return money to investors after incurring big losses this year.

People close to the fund, which had nearly $4 billion in assets, said the losses resulted from bad bets in copper and natural gas, causing the flagship fund to lose 38% since the beginning of the year.

The closing of the fund is a big blow to Lehman, whose 20% stake in Ospraie is part of the investment-management business that Lehman is shopping to help raise capital.

http://www.cnbc.com/id/26515055

So Lehman wants to sell some of its hedge asset business to offset the bad real estate investment instruments, only now the hedge asset business doesn't look so hot.

Bloomburg TV's ticker this morning is saying Lehman's assets should be analyzed and all bad assets transferred to a new entity called "Bad Bank". Ha!

[UpInArms]

14. Closure of Ospraie Fund a major blow to Lehman Brothers

http://www.smartbrief.com/news/cfa/storyDetails.jsp?issueid=6C953C3B-C128-4A56-AE32-A0172875FC66©id=474AB4FF-278E-4054-8D57-DAEDBBB62DDD

Lehman Brothers Holdings owns a 20% stake in Ospraie Fund, a large commodity fund that is closing after incurring significant losses on bad bets in natural gas and copper in the past year. The fund had almost $4 billion in assets but has dropped 38% since the beginning of 2008. Lehman was looking to sell its Ospraie holding as part of a capital-raising effort. CNBC (09/02)

[UpInArms]

15. Ospraie fund to close after 27% August hit

http://www.guardian.co.uk/business/feedarticle/7770342

NEW YORK, Sept 2 (Reuters) - Hedge fund manager Ospraie Management LLC will close its flagship fund after it plunged 27 percent in August on losses in energy, mining and natural resources equity holdings, in one of the biggest ever closures of a commodities-focused hedge fund.

The closure of the fund, announced by the firm's founder Dwight Anderson in a letter to investors on Tuesday, could be more bad news for Lehman Brothers Holdings Inc, which took a 20 percent stake in the hedge fund manager in 2005.

One expert said the closure of the fund, which at the time of the letter's writing had lost 38.59 percent this year, may also have played a role in bringing down U.S. stocks on Tuesday, which fell after initially climbing more than 1 percent. Lehman shares were down more than 3 percent in after-hours trading.

"This is just adding to the fire for commodity-related names," said Peter Holst, managing director at Delta Global Advisors in Southern California. "Even this morning when the market opened, some of the names that Ospraie has positions in were getting hammered."

Ospraie and Lehman declined to comment.

As of the beginning of August, the flagship fund, Ospraie Fund Ltd., had $2.8 billion invested, a person familiar with the situation said.

Ospraie Management still manages $4 billion in other investment funds, including a special opportunities fund, the source said. That fund bought the commodity trading and merchandising operations of ConAgra Foods Inc earlier this year.

...more...

[UpInArms]

17. What killed the Ospraie?

http://ftalphaville.ft.com/blog/2008/09/03/15572/what-killed-the-ospraie/

There’s not too much detail in the fund’s letter to shareholders, in which we’re told the commodities specialist’s 27 per cent slide in August was down to…

… a substantial sell-off in a number of our energy, mining and resource equity holdings during a six-week period characterized by some of the sharpest declines in these sectors in the past ten to twenty years.

Nate Hagens at the Oil Drum has an interesting take on the closure, comparing it to Amaranth’s blow-up in 2006, when trader Brian Hunter built up positions in natural gas futures that went spectacularly awry:



...more...

[ozymandius]

7. Manufacturing shrinks in August, construction down

NEW YORK - For the nation's lumber companies, automakers, home builders and other manufacturers, the final half of 2008 may be as sluggish as the first.

Slow consumer spending and high gas prices have stalled manufacturing, and even some bright spots are expected to dim. Exports, which have propped up the sector, may slide as economies overseas slow. Meanwhile, construction spending is at a seven-year low that has spread from housing to nonresidential projects.

The Institute for Supply Management said Tuesday its reading for the nation's manufacturers fell to 49.9 in August from 50 in July, matching economists' expectations, according to Thomson/IFR. A reading below 50 signals contraction, while a reading above 50 signals growth.

The index has hovered near the 50 "boom-bust" line all year and industry groups say they expect similarly weak growth for the remainder of the year.

http://news.yahoo.com/s/ap/20080902/ap_on_bi_ge/economy

[ozymandius]

10. Commodity hedge fund collapses

The hedge fund manager Ospraie Management has said that it will close its flagship fund after it plunged 27 percent in August on losses in energy, mining and natural resources equity holdings, in one of the biggest ever closures of a commodities-focused hedge fund.

The closure of the fund, announced by the firm's founder Dwight Anderson in a letter to investors on Tuesday, could be more bad news for Lehman Brothers, which took a 20 percent stake in the hedge fund manager in 2005.

One expert said the closure of the fund, which at the time of the letter's writing had lost 38.59 percent this year, may also have played a role in bringing down U.S. stocks on Tuesday, which fell after initially climbing more than 1 percent. Lehman shares were down more than 3 percent in after-hours trading.

"This is just adding to the fire for commodity-related names," said Peter Holst, managing director at Delta Global Advisors in Southern California. "Even this morning when the market opened, some of the names that Ospraie has positions in were getting hammered."

Ospraie and Lehman declined to comment.

http://www.iht.com/articles/2008/09/03/business/03fund.php

[Tandalayo_Scheisskopf]

23. Awww Geez...

Anyone know what the buy-in number was for these guys? I am sure it was quite substantial. Which means none of us were in there. Hedge Funds are not for "the rabble".

Way I see it, one less hedge fund in commodities is a qualified win for us one-fodder-units. The markets seem to reflect that as well.

I expect that some of the dollar hedgers will go the way of all flesh as well, as the euro continues on its downward path.

[ozymandius]

11. cartoon

[TalkingDog]

19. oops, it brok-ded n/t

[UpInArms]

12. dollar watch

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

Last trade 78.461 Change +0.443 (+0.57%)

Candlesticks See Dollar Challenge Multi-Year Resistance

http://www.dailyfx.com/story/special_report/special_reports/Candlesticks_See_Dollar_Challenge_Multi_Year_1220416600771.html

Last week, our long-term short Euro position moved further in our favor, bringing floating profit to nearly 1,000 pips. Looking ahead, we see striking symmetry in US Dollar positioning. Indeed, the greenback now stands at the threshold of key multi-year support/resistance levels against the spectrum of major currencies.



...more...

Forex Market Update: US Dollar Rallies on Lower Oil Prices

http://www.dailyfx.com/story/special_report/special_reports/Forex_Market_Update__US_Dollar_1220424905934.html

New trend highs for the USD were seen in many currencies today in Asia with a late USD rally sending EUR, GBP, AUD and NZD sharply lower. USD-JPY gains were mitigated however by broad-based JPY cross selling with reports that Japanese forex margin traders were selling off their positions.

Economic Events 09/03/2008

05:03 GMT - The U.K. labor market is deteriorating quickly, according to overnight data from Recruitment & Employment Confederation and KPMG. The REC/KPMG permanent staff index fell at its sharpest pace in August since November 2001, down to 41.5 from 44.1. Salaries grew by its weakest rate in five years, suggesting a slacker labor market is keeping a lid on wage demands, which should bring some relief to the BoE. Meanwhile, temporary staff placement, which so far has been holding up well, as employers faced with increasing uncertainty have permanent staff for temporary staff, fell to 46.4 from 50.7 and is hence indicating contraction. Data hence suggests that the U.K. labor market is now seriously starting to slacken.

05:10 GMT - U.K. August Nationwide consumer confidence index held steady at 52, the lowest reading since the series began in 2004 and after the July reading was revised up to 52 from 51. This is largely in line with the more carefully watched GfK indicator and highlights the current dire state of the consumer sector. However, lower petrol prices going forward could help to boost household confidence somewhat in Q3, should oil prices fail to rebound.

05:38 GMT - U.K. institutions may have tapped the BoE liquidity scheme of GBP 200B, according to an estimate by UBS. The size of the liquidity scheme, which lets banks swap mortgage securities for Treasury bills, was originally set to GBP 50B but should demand be greater, more funds would be made available. The previous estimates for the 6 month window, ending in October has been GBP 90-100, so the UBS estimate is significantly higher than previous projections and would suggests that U.K. financial institutions are relying heavily on the BoE to raise funds.

...more...

[UpInArms]

13. U.S. layoffs fall 14 pct in August vs July-survey (but were 12% higher y-o-y)

http://www.reuters.com/article/bondsNews/idUSNAT00433220080903?sp=true

NEW YORK, Sept 3 (Reuters) - U.S. companies' announced layoffs in August fell from July, but were running above the level set a year ago, suggesting persistent weakness in the labor market, a report released on Wednesday showed.

Downsizing at U.S. companies last month totaled 88,736, 14 percent lower than a year earlier but 12 percent higher than August 2007, employment consulting firm Challenger, Gray & Christmas Inc. said.

"We have not seen this level of summer job cutting since 2002, when the country was still struggling to recover in the wake of the 2001 recession and September 11 (attacks)," said John Challenger, chief executive officer of Challenger, Gray & Christmas, in a statement.

Year-to-date, planned layoffs total 667,996, up 29 percent from 515,855 during the same eight-month period in 2007.

The auto, government/non-profit and retail sectors announced the most job cuts.

A silver lining in this bleak job climate was the financial industry, which has been pummeled by losses stemming from the housing slump and credit crunch, Challenger said.

Planned job cuts in the financial arena totaled 2,182 jobs in August, the lowest in more than a year, down from 15,517 in July.

But in terms of the first eight months of this year, the financial industry remained by far the bigger job cutter. It has announced 102,957 in layoffs, compared with the next largest job-cutter, the auto sector, which has announced 80,323 cuts.

...more...

[TalkingDog]

20. Keeping up the layoff watch....

Iredell's jobless claims hit 5 year high:

http://www2.statesville.com/content/2008/sep/01/iredells-jobless-claims-hit-five-year-high/


This was in the local paper yesterday. It literally causes me pain to read passages like this:


"It's really hard," said Crystal Pearson, who is certified to work with adults and children with disabilities. "I went from looking for jobs I'm qualified for to applying at places like restaurants. If I could just find something, it would be a weight lifted off." Kiser started working in a textile mill when he was 16. In the 13 years that followed, he started a family, bought a house and some cars.

When the plant closed, he decided to take advantage of the Federal Trade Act programs and attend Mitchell Community College to become a paramedic. Then, his grades slipped mid-semester and the government pulled the funding. Kiser is trying to find a new job to take some of the burden off his wife, who has worked two jobs while he is in school.

snip:

Sometimes, 50 to 60 workers will apply for one job.

*sigh*

Well, at least if Hanna brings us some rain, the drought will be mediated somewhat.....

[UpInArms]

35. GMAC move to cut ResCap staff by 5,000, 60% of workforce

http://www.marketwatch.com/news/story/rescap-reduce-staff-about-5000/story.aspx?guid=%7B51656448%2D68DE%2D4AE0%2D8DC0%2DFF54929E6657%7D&dist=TQP_Mod_mktwN

SAN FRANCISCO (MarketWatch) -- Residential Capital LLC, a subsidiary of GMAC Financial Services, is taking drastic steps to reduce costs, including cutting its workforce by nearly 60%, the financial services company said Wednesday. As a part of the effort, all 200 GMAC Mortgage retail offices will be closed which will result in the trimming of 5,000 employees. ResCap is likely to incur a charge of about $90 million to $120 million related to its initial staff reduction of 3,000 and related restructuring with most of the charge to be reflected in the third quarter. The company has yet to determine the potential charges related to the remaining layoff of 2,000 employees. GMAC is the financing arm of General Motors.

[DemReadingDU]

16. NPR David Wessel: Bailout coming for Fannie & Freddie

9/3/08 David Wessel, economics editor of The Wall Street Journal, talks with Renee Montagne about the beleaguered housing finance companies Fannie Mae and Freddie Mac. "If they get bailed out, then mortgages are easier to get than if they go under, and that's what this is all about," Wessel says.

audio...
http://www.npr.org/templates/story/story.php?storyId=94223417

[AnneD]

22. Morning Marketeeers......

:donut: and lurkers. As a public service to those that cannot stand watching the RNC, I sacrificed my sanity and dinner (that was how desperate I was to avoid house cleaning)to watch the goings on. I channel surfed from CBS to PBS. I loved Katie Couric's questions. I actually saw her vestigial spine being used. They even mentioned the Alaskan delegation being coached to handle the press and they asked a delegate and sure enough one delegate blurted out talking points on cue almost word for word that the reporter had spoken. If I didn't know better, I'd say Katie was a bit upset and disgusted, not with the GOP but with McCain's selection of Caribou Barbie as his running mate. The real victim of this mess is any reporter that tries to ask a legitimate question of Palin's record. Any and all questions will be viewed as personal attacks by the left wing media. McCain and the GOP are trying to hide behind Palin's skirt. God help us if McCain is elected and God have mercy on America if Palin does end up a heart beat away from the presidency. In this case-the GOP ticket is TOO much the outsider as to guarantee 4 more years of doing nothing...and I do mean nothing because even our treasury has already been picked clean.

So hear it is in a nutshell...

Couric had nose turned up-asked permission to ask a question about Caribou Barbie's experience.
GOP talking points-BLAH, BLAH, BLAH.
Bush addresses the convention (I had to go to PBS for this-CBS wouldn't show it). Bush SR. (applause), It's hard work being the President, McCain, POW, heck of an American POW, defend America like POW, he deserves to be President because he was a POW.

GOP talking points-BLAH, BLAH, BLAH.

Fred Thomas-'he that shall remain nameless' doesn't have experience. I'd rather have Caribou Barbie controlling the red phone rather than President 'he that shall remain nameless' but prefers basket ball over hockey. Red meat, red meat.

GOP talking points-BLAH, BLAH, BLAH.

Joe Lieberman addressed the convention. I know McCain,POW, loyal American POW, experience as POW, Clinton (here the GOP was told not to boo)reached across the aisle, DEM's that bend over while we stick it to them are our friends and have a place in our party. Did I mention that McCain was a POW.

The crowd. A fairly monotoned rainbow. The signs the waved said serve....I figure they want another serving of the American pie because 7/8ths of the pie is not enough. Less enthusiastic-no one standing on their seats, no whooping or hollering, just polite sign waving on cue.

So there you have it...

Happy hunting and watch out for the bears-and Caribou Barbie.

[Demeter]

33. I Wouldn't "Ask" Caribou Barbie Anything--I'd Talk About Her to the People

There are enough plain and damning facts to take her out at least 3 times--at least once with her Fundamentalist follwers, even.

Make Sister Sarah do the "explaining" to the public. Just report investigative results. Then there's no skirt to hide behind.

[AnneD]

38. True....

But this is what the GOP does.

[Ghost Dog]

42. Thanks AnneD. Another version of that here:

Liveblogging George Bush and friends at the Republican convention.

Don't forget that (fair) elections are won in the middle of the road. And you watch out for the moose-dresser too.

[AnneD]

44. Yeah....

that's how I remember it too.....I just pray that folks can see through this BS, but when I've been listening to the call ins on CNN-the right has been buying it hook line and sinker. I heard Obama give a talk about health care. It was one of the most intelligent, well thought out plans, yet those for McCain wanted specifics. He was as specific as he could be-pay Nurse Educators more than floor Nurses, fund Nursing programs to get more Nurses into the prevention end, more scholarships for Nurses here in this country rather than HB1 visas, graduate more family practice docs....and that was just health care.

The biggie that got my attention-stop companies from going into bankruptcy to dissolve pension. Pension funds should go to the head of the line of creditors, not the back. No more gold parachutes for CEO's. Damn, how long have we been saying that. They folks were clapping real hard at that-but who else heard that. I don't think the McCain backers have the attention span of a pigeon. What worker WOULDN'T want that.

I think if folks are stupid enough to not vote for Barack because he's black...and I think that is truly the reason, they deserve what they get. My Mom finally admits that that I was right about Bush, and yet she doesn't think I might be right about Obama. I have a far better track record when it comes to picking presidential leaders than she does. She goes into all the GOP rationiliz...er...talking points, but I think it is all about race and she is just being polite. That makes me sad and truly hurts my heart. I thought she was bigger than that.

[Ghost Dog]

49. Obama says economic issues will decide election

NEW PHILADELPHIA, Ohio (AP) _ Democratic presidential nominee Barack Obama, pouncing on a top Republican aide's claim that the campaign is not about issues, said Wednesday that John McCain is trying to run away from his party's bad economic record.

Campaigning in eastern Ohio, Obama noted that McCain campaign manager Rick Davis said the election would be decided largely on voters' perceptions of the candidates' personalities.

"This election is not about issues," Davis told The Washington Post this week. "This election is about a composite view of what people take away from these candidates."

Obama mentioned Davis' comment three times during a one-hour appearance at an outdoor forum on economic issues facing women. He used it to accuse speakers at the Republican convention in St. Paul, Minn., of avoiding talk about job losses, home foreclosures and other issues.

...

Gabrielle Neavin, 24, a single mother working for minimum wage, introduced Obama in a college courtyard. Obama later said of McCain and his backers: "I don't think they are connecting with what ordinary folks, like Gabrielle, are going through every day."

He cited his proposals to increase the minimum wage and the earned income tax credit; to pump money into wind and solar power, clean-coal technology and biodiesel fuels; and to help subsidize health and tuition costs for many families.

/... http://www.rockymountainnews.com/news/2008/sep/03/obama-says-economic-issues-will-decide-election/

- Pretty brief summary there from AP (figures). Yours above is already far more informative. I say forget the unthinkingly committed to the McInsane, let the 'left' look after itself, and concentrate on swinging the middle of the road. As for the racists (of all races), deep down something there must really hurt, is all I can say.

And please remember: This is not just about the USA. This time we could very well be talking about the end (or not) of the world, I think, from what I can see from out here.

:radio:

[AnneD]

53. I totally agree....

it's not just about the USA. Eventually, political allegiances will mean less and less when the Earth is in turmoil. It will be water, food and shelter on the way to a profound paradigm shift.

[antigop]

24. Worst summer for layoffs since 2002 (the economy is doing GREAT!)

http://www.msnbc.msn.com/id/26526521/

Job cuts announced by U.S. employers last month jumped 12 percent over a year ago to cap the busiest summer of downsizing in six years, according to a report released Wednesday.

The monthly job reductions slowed somewhat from July but still exceeded the year-ago figure for a seventh time in 2008, according to the report by job placement consultancy Challenger, Gray & Christmas.

Employers announced plans to reduce their work forces by 88,736 jobs in August — 14 percent fewer than

Dontcha know... we're just a bunch of whiners....

[AnneD]

31. I wouldn't whine nearly as much...

if I was in McCain's 5 million dollar middle class tax bracket, she said as she began to hum "It's a hard knock life".

[DemReadingDU]

25. Valley Credit Union Placed In Conservatorship

9/3/08 Valley Credit Union Placed In Conservatorship

September 3, 2008, Alexandria, Va. -- The National Credit Union Administration (NCUA) yesterday assumed control of the operations of Valley Credit Union, a state-chartered, federally insured credit union headquartered in San Jose, California.

The California Division of Financial Institutions appointed NCUA as conservator after placing Valley Credit Union into state conservatorship. NCUA will operate the credit union with a goal of continuing credit union service to the members and to ensure safe and sound credit union operations.

Service continues uninterrupted at Valley Credit Union and members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

more...
http://www.ncua.gov/news/press_releases/2008/MR08-0903.htm

[Tandalayo_Scheisskopf]

26. The Bleeding Continues

Last night, some intrepid souls tried goosing the markets in afterhours trading. That worked about as well as windshield wipers on a duck's ass. Also, some of the more realistic types of analysts have started to predict below-$100 oil. We shall see.

CLV08.NYM Crude Oil Oct 08 107.91 10:45am ET Down 1.80 (1.64%)
HOV08.NYM Heating Oil Oct 08 3.0376 10:45am ET Down 0.036 (1.17%)
NGV08.NYM Natural Gas Oct 08 7.10 10:45am ET Down 0.161 (2.22%)
PNV08.NYM Propane Gas Oct 08 1.72 10:38am ET 0.00 (0.00%)
RBV08.NYM RBOB Gasoline Oct 08 2.692 10:44am ET Down 0.0417 (1.53%)

ALU08.CMX Aluminum Sep 08 1.23 9:22am ET 0.00 (0.00%)
HGU08.CMX Copper Sep 08 3.3525 11:18am ET Up 0.03 (0.90%)
ZGU08.CBT Gold 100 oz. Sep 08 804.50 Sep 1 0.00 (0.00%)
GCU08.CMX Gold Sep 08 799.70 10:38am ET Down 5.30 (0.66%)
PAU08.NYM Palladium Sep 08 285.95 10:14am ET Down 4.30 (1.48%)
PLU08.NYM Platinum Sep 08 2,040.10 10:38am ET 0.00 (0.00%)
ZIU08.CBT Silver 5000 oz. Sep 08 12.856 3:07am ET Down 0.198 (1.52%)
SIU08.CMX Silver Sep 08 12.785 11:17am ET Down 0.265 (2.03%)

CU08.CBT Corn Sep 08 536.75 11:35am ET Down 16.25 (2.94%)
OU08.CBT Oats Sep 08 344.00 Aug 28 0.00 (0.00%)
RRU08.CBT Rough Rice Sep 08 18.15 Sep 2 0.00 (0.00%)
SMU08.CBT Soybean Meal Sep 08 351.00 11:38am ET Down 13.90 (3.81%)
BOU08.CBT Soybean Oil Sep 08 50.65 10:48am ET Down 1.38 (2.65%)
SU08.CBT Soybeans Sep 08 1,301.50 Sep 2 0.00 (0.00%)

FCU08.CME Feeder Cattle Sep 08 111.62 11:38am ET Down 0.15 (0.13%)
PBG09.CME Frozen Pork Bellies Feb 09 90.50 11:36am ET Down 2.25 (2.43%)
LHV08.CME Lean Hogs Oct 08 68.75 11:40am ET Down 0.80 (1.15%)
LCV08.CME Live Cattle Oct 08 103.50 11:39am ET Down 0.25 (0.24%)

CCU08.NYB Cocoa Sep 08 2,648.00 6:10am ET Down 19.00 (0.71%)
KCU08.NYB Coffee Sep 08 141.30 10:16am ET Up 0.75 (0.53%)
CTV08.NYB Cotton Oct 08 67.39 11:09am ET Down 0.52 (0.77%)
LBU08.CME Lumber Sep 08 250.00 11:38am ET Down 3.00 (1.19%)
OJU08.NYB Orange Juice Sep 08 101.65 10:16am ET Down 0.55 (0.54%)
SBV08.NYB Sugar #11 Oct 08 12.59 11:21am ET Down 0.12 (0.94%)
SEX08.NYB Sugar #14 Nov 08 23.60 10:10am ET Up 0.20 (0.85%)

A while back, DU'er "aspergris", who is an active commodity trader, tried to explain to the assembled that commodities in general, and petroleum in particular, was a classic "bubble" market, that things had not changed forever, and that the bubble not only would burst, but had burst. Interestingly, an awful lot of people who were emotionally invested in the concept that Peak Oil was the culprit, got very stroppy with his analysis. I chimed in with the observation that the I found the confluence between all this talk of Peak Oil and the price runup, sans shortages, to be beyond coincidence. Some were saying, out on the intertubes, that the sources of all this Peak Oil talk were hedge funds, who stood to make serious geets from psyops.

And here we are, with hedge funds going down.

Not to minimize the reality that Peak Oil should be the immediate driver in all our actions, regarding energy, going forward. The thing is that I have been around long enough to know that when you see a lot of hysteria, and T. Boone Pickens is agreeing, then it's time to set your bullshit filter on high.

[AnneD]

32. Windsheild wipers...

on a duck's ass...:spray: Next time give a screen warning:rofl:

[UpInArms]

28. This credit crunch worse than '90s version: Fed official

http://www.marketwatch.com/news/story/credit-crunch-worse-90s-version/story.aspx?guid=%7B6D24E27F%2DCCB0%2D4990%2D88AF%2DAEA3115341BC%7D&dist=msr_1

WASHINGTON (MarketWatch) -- The "headwinds" facing the economy are much stronger than those experienced during the last credit crunch in the early 1990s, said Eric Rosengren, the president of the Boston Federal Reserve Bank on Wednesday. This credit crunch is likely to hit consumers as well as businesses. The last crunch primarily impacted small businesses, he said. It may push the unemployment rate up to 6%, with more than 2 million people losing their jobs since the financial turmoil began last summer, Rosengren said in a speech in New Hampshire. The Fed's benchmark interest rate, currently at 2%, is not too low or inflationary, he said. Countering suggestions by some Fed officials that the central bank must push rates up sooner rather than later, Rosengren said the low rates help offset some of the negative effects of the lack of credit.

[DemReadingDU]

29. closing all 200 GMAC Mortgage retail offices

9/3/08 GMAC Financial Services and ResCap Announce Further Streamlining of Mortgage Operation
Strategic origination channels remain open; commitment to servicing customers unchanged

GMAC Financial Services and its subsidiary Residential Capital, LLC (ResCap) today announced additional initiatives to further optimize the mortgage business as the downturn in the credit and mortgage markets persists. In response to these conditions, ResCap has enacted a plan to significantly streamline its operation, reduce cost, adjust its lending footprint and refocus its resources on strategic lending and servicing.

On Sept. 2, 2008, a plan was approved that included closing all 200 GMAC Mortgage retail offices, ceasing originations through the Homecomings wholesale broker channel, further curtailing business lending and international business activities, and right-sizing functional staff support. In addition, the company is evaluating strategic alternatives for the GMAC Home Services business and the non-core servicing business. These collective actions will reduce the ResCap workforce by approximately 5,000 employees, or 60 percent. Approximately 3,000 employees will receive notification this month with the majority of the remaining 2,000 reductions expected to occur by year-end.

"While these actions are extremely difficult, they are necessary to position ResCap to withstand this challenging environment," said ResCap Chairman and Chief Executive Officer Tom Marano. "Conditions in the mortgage and credit markets have not abated and, therefore, we need to respond aggressively by further reducing both operating costs and business risk."
ResCap will incur a charge expected to range from $90 to $120 million that reflects the 3,000 workforce reductions and related operational streamlining initiatives. The charge will include costs related to severance and other employee-related costs of approximately $50 to $60 million and facility closure costs of approximately $40 to $60 million. The majority of the charge is expected to be reflected in the third quarter and result in future cash expenditures of approximately $55 million. Potential charges related to the remaining 2,000 workforce reductions have not yet been determined.
The workforce reductions will include a range of administrative and managerial positions. All eligible employees affected by the workforce reduction will be provided severance packages and outplacement assistance.

more...
http://www.marketwatch.com/news/story/gmac-financial-services-rescap-announce/story.aspx?guid=%7B40717517-6D8B-47AB-B564-0DCE4F4594EC%7D&dist=hppr

[Zenlitened]

37. "... further optimize the mortgage business..."

... by burying it six feet under.

:wow:

Orwell was a dewy-eyed, daydreamin' optimist.

[TrogL]

30. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2008-07-23 Wednesday, July 23 0.991277 USD
2008-07-24 Thursday, July 24 0.988728 USD
2008-07-25 Friday, July 25 0.983574 USD
2008-07-28 Monday, July 28 0.978474 USD
2008-07-29 Tuesday, July 29 0.974659 USD
2008-07-30 Wednesday, July 30 0.976562 USD
2008-07-31 Thursday, July 31 0.974564 USD
2008-08-01 Friday, August 1 0.975515 USD
2008-08-04 Monday, August 4 0.965717 USD
2008-08-05 Tuesday, August 5 0.959233 USD
2008-08-06 Wednesday, August 6 0.95511 USD
2008-08-07 Thursday, August 7 0.951475 USD
2008-08-08 Friday, August 8 0.936593 USD
2008-08-11 Monday, August 11 0.936944 USD
2008-08-12 Tuesday, August 12 0.939761 USD
2008-08-13 Wednesday, August 13 0.938262 USD
2008-08-14 Thursday, August 14 0.941531 USD
2008-08-15 Friday, August 15 0.942596 USD
2008-08-18 Monday, August 18 0.943129 USD
2008-08-19 Tuesday, August 19 0.942863 USD
2008-08-20 Wednesday, August 20 0.940999 USD
2008-08-21 Thursday, August 21 0.956572 USD
2008-08-22 Friday, August 22 0.956389 USD
2008-08-25 Monday, August 25 0.955749 USD
2008-08-26 Tuesday, August 26 0.953652 USD
2008-08-27 Wednesday, August 27 0.953925 USD
2008-08-28 Thursday, August 28 0.949938 USD
2008-08-29 Friday, August 29 0.949938 USD
2008-09-01 Monday, September 1 0.940645 USD
2008-09-02 Tuesday, September 2 0.934754 USD

Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9293 0.9430 0.9293 0.9430 +0.0069 +0.74% 
CD.U08 Sep 2008 0.9330 0.9450 0.9328 0.9415 +0.0057 +0.61% 
CD.Z08 Dec 2008 0.9545 0.9545 0.9545 0.9351 -0.0038 -0.41% 
CD.H09 Mar 2009 0.9519 0.9519 0.9519 0.9353 -0.0038 -0.41% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9357 -0.0039 -0.42% 
CD.U09 Sep 2009 0.9350        0.9340 0.9356 -0.0040 -0.43% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9355 -0.0041 -0.44%  

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.U08 Sep 2008 0.8935 0.8935 0.8935 0.8935 -0.0168 -1.88%   
EURO/BRITISH POUND (NYBOT:GB)
GB.U08.E Sep 2008 (E) 0.81475 0.81475 0.81340 0.81340 -0.00130 -0.16%   
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.U08.E Sep 2008 (E) 156.86 157.03 156.45 156.45 -1.01 -0.64%    
EURO/US$ (SMALL) (NYBOT:EO)
EO.U08.E Sep 2008 (E) 1.45055 1.45120 1.44635 1.45030 -0.00825 -0.57%   

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The September Canadian Dollar was lower overnight as it extends this week's decline and is testing support marked by the 75% retracement level of the 2007 rally crossing at 92.79. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near- term. If September extends this week's decline, the 87% retracement level of the 2007 rally crossing at 90.06 is the next downside target. Closes above the 10-day moving average crossing at 94.64 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 94.42. Second resistance is the 10-day moving average crossing at 94.64. First support is the overnight low crossing at 92.76. Second support is the 87% retracement level of the 2007 rally crossing at 90.06.


Analysis

Yeah, well something sure happened between last night and now because the loonie just took a cent and a half jump.

[Demeter]

34. Has the 11,600 support level been broken and abandoned?

Tune in tomorrow, same time, same channel...

When the PPT stops, the game is over and the Depression is on.

[UpInArms]

36. Ex-Credit Suisse brokers accused in ARS scheme (Phil Gramm's Bank)

http://www.reuters.com/article/bondsNews/idUSN0312975220080903?sp=true

NEW YORK, Sept 3 (Reuters) - Two former Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) brokers were charged on Wednesday with fraud and conspiracy over deceptive sales of subprime-related auction-rate debt, officials said, part of an industrywide probe of the securities.

The U.S. Attorney's office in Brooklyn and the Securities and Exchange Commission accused the former brokers, Eric Butler and Julian Tzolov, of misleading customers into believing that auction-rate securities in their accounts were backed by federally guaranteed student loans and were a safe and liquid alternative to bank deposits or money market funds.

Credit Suisse said in a statement that it was cooperating with authorities over the former employees.

"In September 2007, these former employees resigned after we detected their prohibited activity and promptly suspended them," the statement said. "Credit Suisse immediately informed our regulators and we have continued to assist the authorities."

A spokesman for U.S. Attorney Benton Campbell in Brooklyn said Butler, 36, would be arraigned in U.S. District Court later on Wednesday.

Tzolov, 35, was believed to be out of the country.

Lawyers for the two men could not immediately be reached for comment.

When the mortgage-backed auction rate securities market failed earlier this year, the Credit Suisse clients lost their money. Prosecutors in several states and the SEC have reached settlements with several major big investment banks in the past month over their handling of the risky debt.

The federal indictment of Butler and Tzolov charges them with conspiracy, securities fraud and wire fraud as part of a scheme to obtain higher commissions.

...more...

[DemReadingDU]

39. Look what happened to stocks on 8/28/08

Friday, August 29, 2008
If a picture is worth a thousand words then...

Thursday's regular market trading session and after-market action was unprecedented in it's scope and range. What happened is that most large cap stocks that had a higher closing price at the end of the day closed down by exactly the same dollar amount in after-hours trading.
.
.
.
Never before have I seen such broad based market activity that glaringly highlights "management" of the stock market. The scale of such an endeavor, if proven to be "managed," would point to an organization(s) with unlimited resources at its disposal. My only conclusion is that something is brewing and it is beyond the scope of most "average" market participants.

click to see pictures...
http://dividendinc.blogspot.com/2008/08/if-picture-is-worth-thousand-words-then.html


Plunge Protection Team?

[DemReadingDU]

40. This video goes with the above posting about stocks on 8/28/08

8/28/08 A four quarter strategy for orchestrating an economic collapse. A review of plays from the PPT and investment bank playbook, specifically, how they plan to to turn your money into their money.

The Playbook
http://www.youtube.com/watch?v=BNlZ3W-PejA


Here's another video

1929 Stock Market Crash
http://www.youtube.com/watch?v=TQUcoSy1yMA

[Dr.Phool]

41. I saw those in your post yesterday. Good find.

Makes a lot of sense to me.

Their actions have been pretty transparent for a while now. And I had a hunch that hedge fund and investment bank "speculators" were allowed to run up the price, like an invisible "tax", to cover some major losses.

[DemReadingDU]

43. There's some odd things going on with the stock market

It was late yesterday when I posted the videos, probably not many people saw them. I reposted today in conjunction with posting of the weird maneuverings of the stocks on 8/28/08.

Putting the 2 posts together...I think somebody (PPT?) setup the market on Thursday 8/28/08. Hardly anyone noticed because Thursday night Obama had his great speech, then Friday McCain announced his VP Sarah Palin. Then it was the 3-day holiday weekend where everyone discussed Palin and didn't pay attention to what was going on with their money.

I would bet the crash is coming sooner rather than later.

[Dr.Phool]

45. Sure looks like it.

I recall reading somewhere a while back, I don't remember just where, that an economist at the Atlanta Fed was forecasting a collapse in September.

I just filed it away in the back of my head for future reference.

[Pale Blue Dot]

46. Another Credit Union is down: Valley Credit Union in San Jose, CA

September 3, 2008, Alexandria, Va. -- The National Credit Union Administration (NCUA) yesterday assumed control of the operations of Valley Credit Union, a state-chartered, federally insured credit union headquartered in San Jose, California.

The California Division of Financial Institutions appointed NCUA as conservator after placing Valley Credit Union into state conservatorship. NCUA will operate the credit union with a goal of continuing credit union service to the members and to ensure safe and sound credit union operations.

Service continues uninterrupted at Valley Credit Union and members are free to make deposits, access funds, make loan payments and use share drafts. While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.

Member accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government. Excess insurance protection is currently provided by private insurer American Share Insurance of Dublin, Ohio. Members with questions about their insurance coverage can contact NCUA’s Region V Division of Insurance at 602-302-6000 Monday through Friday during business hours.

Valley Credit Union was originally chartered in 1953 and today serves Alameda, Contra Costa, and Santa Clara Counties. The credit union has $257 million in assets and nearly 26,900 members.

http://www.ncua.gov/news/press_releases/2008/MR08-0903.htm

It's eerie to me that CU failures are keeping almost exact pace with bank failures.

[Dr.Phool]

47. I heard last Thursday there's one in Florida ready to go under.

I talked to a woman who just quit her management job there, and she said they're right on the brink of failure. I didn't catch the name, but I'll probably see her again on Sunday.

[Ghost Dog]

50. The economy and politicians who tell the truth

From The Times (London)
September 4, 2008
Letters: The economy and politicians who tell the truth
What do we want our leaders to tell us?

Sir, We know and expect politicians to dissemble, lie or be economical with the truth. How ironic then that Alistair Darling is pilloried for bucking the trend (report, Sept 1).

An attribute that sterling shares with all other fiat currencies is that it is backed by nothing more substantial than political promises. These promises are being sustained by massive, and increasingly frantic, manipulation of the international fiat monetary system. It is therefore not surprising that there is a desire to “shoot the messenger”.

We must make up our minds. Do we want politicians to tell us the unvarnished truth or, alternatively, what we would like to be true (even when we don’t believe it ourselves)?

Rob Harris
Frodsham, Cheshire

Sir, At last we appear to have a leading politician who is prepared to speak the truth — without spin or interference from No 10.

What a pity if such forthright honesty costs him his job. Perhaps our embattled Prime Minister could take heed and a little humility from a colleague who appears to be prepared to stand up and be counted.

Michael Jefferys
Maidstone, Kent

Sir, Anatole Kaletsky may well be correct in arguing that the Chancellor has displayed “a basic ignorance of economic facts and figures”; but it is not this shortcoming which puts his job on the line. Mr Darling’s real culpability lies in the damage he has done to the Prime Minister’s survival plan.

Stephen Jones
Carnforth, Lancs

Sir, I see that two politicians have been caught telling us the truth. The Chancellor says that the economy is in a mess; the Home Secretary says that when times are hard people steal things. We cannot have this. Where have all our normal lying, deceitful politicians gone? It’s enough to make me want to go out and vote.

Nicholas Russell
Haslingfield, Cambs

/... http://www.timesonline.co.uk/tol/comment/letters/article4669136.ece

[ozymandius]

52. end of the day

Dow 11,532.88 Up 15.96 (0.14%)
Nasdaq 2,333.73 Down 15.51 (0.66%)
S&P 500 1,274.98 Down 2.59 (0.20%)
10-Yr Bond 3.697% Down 0.049
NYSE Volume 5,119,528,000
Nasdaq Volume 2,160,249,000

4:25 pm : Wednesday marked a choppy session for Wall Street, with the major indices settling in mixed fashion following a late-session recovery effort. The trading action came as traders digested volatile crude prices, a better-than-expected manufacturing reading and the Fed's Beige Book.

In the end, the Dow rose 0.1%, while the S&P 500 and Nasdaq fell 0.2% and 0.7%, respectively. The Nasdaq's underperformance was largely due to some warnings out of the tech sector.

The tech sector fell 1.7%. Shares of Corning (GLW 17.04, -2.46) were pummeled after the company issued a third quarter earnings warning due to lower-than-expected LCD glass shipments. The company cited an industry inventory glut. Semiconductor stocks fell 4.2%, after Corning's outlook raised demand concerns about LCD TVs, monitors and notebook computers. In addition, several semiconductor companies presented at the Citigroup Global Tech Conference.

Financials ( +1.4%) were an area of strength. Bond insurer Ambac Financial (ABK 8.61, +1.54) confirmed that it received regulatory approval from the Commissioner of Insurance of the State of Wisconsin to capitalize and restart Connie Lee Insurance, which will provide insurance for the municipal bond market. Lehman Brothers (LEH 16.85, +0.72) was once again in focus, with continued speculation that the struggling bank will be taken over or receive a capital infusion.

The consumer discretionary (+0.5%) sector outperformed, benefiting from a 1.6% rise in retail stocks. Staples (SPLS 25.17, +0.40) reported a 16% year-over-year drop in its second quarter earnings per share, which matched Wall Street's forecast. Meanwhile, shares of General Motors (GM 11.36, +0.71) rose 6.7% after the automaker posted a smaller-than-expected decline in August sales.

In other corporate news, Coca-Cola (KO 51.67, -0.29) is buying a Chinese juice company in a deal valued at roughly $2.4 billion.

Shares of ConAgra (CAG 19.62, -1.84) fell 8.6% after the food company gave an earnings warning due to underperformance in its consumer business.

In economic news, factory orders remain surprisingly strong, with the fifth straight month of positive growth. July factory orders rose 1.3% (consensus +1.0%). Excluding transportation, orders rose 1.0%. In addition, unfilled orders were up 0.7%, marking the 29th increase in the last 30 months, and indicating that manufacturing sector will remain busy. Orders in June were revised higher to 2.1% from 1.7%.

The Fed's Beige Book -- a collection of anecdotal economic reports from the 12 Federal Reserve districts -- showed an economic slowdown in most districts. At the same time, most districts continued to report price pressures due to the elevated costs of energy, food and other commodities. Wage pricing pressures were moderate, as the sluggish economic environment has allowed businesses to limit their salary increases.

Crude oil prices traded in a volatile manner, falling as much as 2.3% before recovering to settle the day with a 0.3% loss at $109.42 per barrel. Commodities as a whole fell 0.5%.DJ30 +15.96 NASDAQ -15.51 NQ100 -0.9% R2K +0.5% SP400 -0.2% SP500 -2.60 NASDAQ Adv/Vol/Dec 1477/2.13 bln/1302 NYSE Adv/Vol/Dec 1614/1.21 bln/1491